Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2022)
23 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Q1 2022 Debt investor presentation: Nordea Mortgage Bank Covered Bonds
Q1 2022 Debt investor presentation Nordea Mortgage Bank Covered Bonds
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 2022 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 2022 • 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 2022 Cover pool summary Pool notional EUR 23.8bn Outstanding Covered Bonds EUR 20.7bn 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 2022 Cover pool balance by loan category Cover pool balance by region Summer Houses 3% Public North/ East /Mid 0% Finland Multi-family houses 15% 4% Single -family South Finland houses 13% 40% Greater Helsinki Area 51% Tenant owner units 53% West Finland 21% 8 O
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 2022 Weighted Average LTV – Unindexed 53.3% LTV buckets Nominal (EURbn) % Residential Loans >0 - <=40 % 17.5 74% >40 - <=50 % 2.7 11% >50 - <=60 % 2.1 9% >60 - <=70 % 1.4 6% Total 23.7 100% Weighted Average
Slide 11: Loan structure
Loan structure Q1 2022 Rate type Repayment 11 Open
Slide 12: Underwriting criteria
Underwriting criteria Q1 2022 • 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 2022 • 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 2022 • 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. Macroeconomy
5. Macroeconomy alge fle tly Nordea
Slide 17: Nordic economic development
Nordic economic development Resilient economies face global uncertainty GDP development 7 Index 2007Q1=100 GDP, level Index 200791=109| - 130 ==sweden Norway 128 Denmark _- ~b120 Finland ‘ pus <7 bano 90 070809 10°11 12°13 14°15 16 17 18 19 20 21 22°23 After the dramatic setback in 2020 due to the c
Slide 18: Nordic economies
Nordic economies Interest rates to rise throughout the Nordics Policy rates Public balance/debt, % of GDP, 2022E 3.0 3.0 1 1 % Policy rates % Denmark _ Norway 2022E 25 25 ° ° 20 20 aa eo Sweden A : Ss eo oermany 1s 1s x2 A Finland 2 ® "| Netherlands eo oe ortusal 10 1.0 g - i-- 5° - va Belgium 3 os
Slide 19: Households facing high inflation and rising interest rates
Households. Households facing high inflation and rising interest rates Household debt Household savings 300 16% of disposable Household debt % of disposable] 30° 20.0 1% of disposable Household saving rate 20.0 275 Jincome income|. 275 7s income 175 250 250 15.0 15.0 225 225 2s 25 200 200 10.0 10.0
Slide 20: Housing markets
Housing markets Rising interest rates might cool off hot Nordic housing markets Housing prices Households’ credit growth 250 250 15.0 15.0 Index, 2007100 Housing market l% v/y Households’ credit growth % y/y| 3m moving average 225 9 ‘9 225 125 125 Sweden 200 200 10.0 10.0 Norway 175 175 75 om J ww 7
Slide 21: 6. Further information
6. Further information alee pele tly Nordea
Slide 22: Nordea Mortgage Bank – outstanding benchmark covered bonds
Nordea Mortgage Bank – outstanding benchmark covered bonds Q2 2022 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS1308350237 EUR 1 250 19/10/2022 0.625% XS1784067529 EUR 1 250 28/02/2023 0.25% XS2157194643 EUR 8 500 16/11/2023* FRN XS1522968277 EUR 1 000 21/11/2023 0.25% XS113279044
Slide 23: Contacts
Contacts Investor Relations Maria Caneman Debt IR and ratings Mobile: +46 738 66 17 24 Tel: +46 10 156 50 19 maria.caneman@nordea.com Group Treasury Petra Mellor Morten Keil Chief Treasury Manager Head of Covered Bonds Mobile: +46 702 77 8372 Tel: +45 3333 1875 Tel: +46 8 407 9124 Mobile: +45 6177 3
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