Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q4 2024 Earnings Presentation
22 slides from Nordea Bank Abp's earnings presentation, Jan 30, 2025
Slide 1: Q4 2024 Debt investor presentation: Nordea Hypotek Covered Bonds
Q4 2024 Debt investor presentation Nordea Hypotek 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. Macroeconomy 16 6. Further information 20 2
Slide 3: 1. In brief
1. In brief 3
Slide 4: Nordea covered bond operations
Covered bonds Nordea covered bond operations 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 Swedish residential Danish residential
Slide 5: Nordea Hypotek – overview
Nordea Hypotek– overview Q4 2024 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution Grants long-term loans to Swedish households, municipalities, municipal housing companies and corporates Licensed by the Swedish Financial Supervisory Authority to issue covered bonds
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q4 2024 Cover pool summary Loans in cover pool SEK 711.9bn Outstanding covered bonds SEK 359.4bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urba
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q4 2024 Cover pool balance by loan category Cover pool balance by region** 4% 2% Single family houses Greater Stockholm 13% 4% Tenant owner units Greater Gothenburg 11% Tenant owner associations Greater Malmoe 9% 39% Multi-family houses South Sweden 50% Commercial
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Continuous distribution where each loan can exist in multiple buckets Loan To Value (LTV)* Q4 2024 Weighted Average LTV – Indexed – 53.7% 666.0 100% 497.5 75% Nominal % Residential Loans 69.5 49.4 32.4 10% 7% 5% 17.2 3% 0-40% 40-50% 50-60% 60-70% 70-80% Total 0-40% 40-50% 50-60% 60-70% 70-80% Total
Slide 11: Loan structure
Loan structure Q4 2024 Rate type* Repayment* 100% 100% 80% 80% 57% 60% 63% 63% 63% 63% 64% 68% 63% 63% 70% 70% 60% 60% Amortising Floating rate Bullet / interest only 40% Fixed rate 40% 20% 43% 40% 20% 36% 32% 37% 37% 37% 37% 37% 37% 30% 30% 0% 0% 23Q3 23Q4 24Q1 24Q2 24Q3 24Q4 23Q3 23Q4 24Q1 24Q2 24
Slide 12: Underwriting criteria
Underwriting criteria Private households • Track record and income checked via UC and Tink • Always household budget ”before-after” with buffer requirement and stress test including behavioral analysis • Individual valuation of the pledged property Corporates/ Municipalities • Financial analysis wit
Slide 13: 4. Covered bond framework
4. Covered bond framework 13
Slide 14: Swedish covered bond framework
Swedish covered bond framework Legal framework • Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 and amended on 8 July 2022 in order to implement the European covered bond directive Registration • An issuing institution is required to maintain a register on covered bonds, t
Slide 15: 5. Macroeconomy
5. Macroeconomy 15
Slide 16: Better outlook ahead
Nordic economic development Better outlook ahead GDP Unemployment rate GDP, % y/y, Economic Outlook January 2025 • The Nordic economies have shown mixed trends on the back of surging inflation and higher interest rates Country 2023 2024E 2025E 2026E • Lower interest rates are expected to support eco
Slide 17: Less restrictive monetary policy
Nordic economies Less restrictive monetary policy Policy rates Public balance/debt, % of GDP, 2025E (IMF) • The ECB and Danmarks Nationalbank lowered their policy rates by 0.25 percentage points in December • The Riksbank is expected to cut the policy rate one more time before the summer, bringing d
Slide 18: Increasing purchasing power
Households Increasing purchasing power Household debt Household savings Private consumption • Households’ purchasing power and consumption are expected to improve as real disposable income continues to increase • Consumer confidence have risen from very low levels but remains subdued, indicating cau
Slide 19: Increased activity
Housing markets Increased activity Home prices Households’ credit growth • Home prices have stabilised and modestly started to increase in most of the Nordic countries. Norwegian home prices have developed better than their Nordic counterparts and rose by 6.4% in 2024 • Monetary policy has become le
Slide 20: 6. Further information
6. Further information 20
Slide 21: Nordea Hypotek – outstanding benchmark covered bonds
Nordea Hypotek – outstanding benchmark covered bonds Q4 2024 Breakdown by ISIN Serial no. Currency Amount (m) Maturity Coupon 5535 SEK 82 800 17/09/2025 1% 5536 SEK 78 550 16/09/2026 0.5% 5537 SEK 70 350 16/06/2027 1% 5731 SEK 6 000* 25/11/2027 3.375% 5538 SEK 59 976 20/09/2028 3.5% 5733 SEK 6 000*
Slide 22: Contacts
Contacts Investor Relations Maria Caneman Head of Debt IR and Ratings Tel: +46 10 156 50 19 Mobile: +46 768 24 92 18 maria.caneman@nordea.com Group Treasury Cecilia Tannerfeldt Morten Kiel Lead Dealer Head of Covered bonds Tel: +46 8 407 91 05 Tel: +45 3333 1875 Mobile: +46 733 21 44 33 Mobile: +45