Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2020)
22 slides from Nordea Bank Abp's debt investor presentation, Sep 22, 2020
Slide 1: Nordea Mortgage Bank Covered Bonds
Nordea Mortgage Bank Covered Bonds Q1 2020 Debt investor presentation
Slide 2: Table of contents
Table of contents 1. In brief 3 2. Cover pool key characteristics 6 3. Asset quality 9 4. Covered bond framework 13 5. Macro 16 6. Further information 20 2
Slide 3: 1. In brief
UR Cal Ca cal Ca
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q1 2020 Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered bond issuers with complementary roles Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages Swedish residential mortgages prim
Slide 5: Nordea Mortgage Bank Plc – overview
Nordea Mortgage Bank Plc – overview Q1 2020 • 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution • Operates as a mortgage credit institution with the main purpose of issuing covered bonds • Licensed by the European Central Bank to issue covered bonds according to the
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q1 2020 Cover pool summary Pool notional EUR 22.2bn Outstanding Covered Bonds EUR 14.8bn Cover pool content Mortgage loans secured by residential property. Loans guaranteed by public sector Geographic distribution Throughout Finland with concentration in urban areas As
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q1 2020 Cover pool balance by loan category Cover pool balance by region Summer Houses 2,6% Public North/ East /Mid 1% Finland Multi-family houses 17% 5% Greater Helsinki Single -family South Finland Area houses 14% 47% 42% Tenant owner units 50% West Finland 23% 8
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value (LTV) Continuous distribution where each loan can exist in multiple buckets Q1 2020 Weighted Average LTV – Unindexed 51.3% LTV buckets Nominal (EURm) % Residential Loans >0 - <=40 % 16 726 75,89% >40 - <=50 % 2 374 10,77% >50 - <=60 % 1 771 8,04% >60 - <=70 % 1 168 5,30% Total 22 039 1
Slide 11: Loan structure
Loan structure Q1 2020 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% Amortising Floating rate 95,0% 94,6% 94,6% 94,6% 94,8% 93,7% 50% 98,2% 98,3% 98,5% 98,5% 98,5% 98,6% 50% Bullet / interest only Fixed rate 40% 40% 30% 30% 20% 20% 10% 10% 0% 1,8% 1,7% 1,5% 1,5% 1,5% 1,4% 5,0% 5,4% 5
Slide 12: Underwriting criteria
Underwriting criteria Q1 2020 • Residential mortgage loans • Nordea’s credit decision is based on the borrower’s repayment capacity and collateral is always taken • Collateral must be in the form of mortgages in real estate or in shares in housing companies • Repayment ability of borrowers is calcul
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Finnish covered bond framework
Finnish covered bond framework Q1 2020 • Legal framework • Finnish Covered Bond Act (statute 688/2010) • Registration • Collateral assets remain on the balance sheet of the issuer • Covered bonds, collateral and relevant derivative contracts are entered in a separate register • Limit on LTV ratio –
Slide 15: Finnish covered bond framework (2)
Finnish covered bond framework (2) Q1 2020 • Bankruptcy remoteness and preferential claim • Isolation of registered collateral assets, registered derivatives from all other assets and liabilities of the insolvent issuer • Holders of covered bonds together with counterparties of registered derivative
Slide 16: 5. Macro
5. Macro 16
Slide 17: Nordic economies – years before back to normal
Nordic economies – years before back to normal GDP development Unemployment rate Comments GDP, %, U-shaped scenario • The global economy is in recession and the next few months will be Country 2018 2019 2020E 2021E extremely challenging. Lockdowns will trigger lower consumer spending and investments
Slide 18: Nordic interest rates – low for very long
Nordic interest rates – low for very long Household debt Household savings Policy rates Comments • Household debt is likely to level off in the coming year, in line with decelerating activity on the housing market. However, the debt ratio remains at very high levels in all countries. Uncertainty and
Slide 19: House price development in the Nordics
House price development in the Nordics House prices Household’s credit growth Comments • Rising unemployment and high uncertainty will take its toll on the Nordic housing markets. Before the crisis, low interest rates kept the Nordic housing markets afloat and stable price increases were expected in
Slide 20: 6. Further information
6. Further information alee fee tly Nordea
Slide 21: Nordea Mortgage Bank – outstanding benchmark covered bonds
Nordea Mortgage Bank – outstanding benchmark covered bonds Q1 2020 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS1204134909 EUR 1 000 2020-06-17 0,125 XS0591428445 EUR 1 000 2021-02-10 4 XS1554271590 EUR 1 500 2022-01-24 0,025 XS1308350237 EUR 1 250 2022-10-19 0,625 XS1784067529 EU
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman Head of Debt IR Senior Debt IR Officer Mobile: +46 709 70 75 55 Mobile: +46 768 24 92 18 Tel: +46 10 156 29 61 Tel: +46 10 156 50 19 andreas.larsson@nordea.com maria.caneman@nordea.com Group Treasury & ALM Juho-Pekka Jääskeläinen Senior Treas
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