Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2023)
23 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: Q3 2023 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. Macroeconomy 16 6. Further information 20 Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q3 2023 Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered >» . > bond issuers with 4 . 4 complementary roles A Up of UD a . Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages ‘Swedi
Slide 5: Nordea Mortgage Bank Plc — overview
Nordea Mortgage Bank Plc — overview Q3 2023 it 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution “a Operates as a mortgage credit institution with the main purpose of issuing covered bonds =] Issuing covered bonds according to the Finnish covered bond legislation Le
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool (Legacy) and Cover Pool (New)
Cover pool 1 (Legacy) Cover Pool 2 (New) Pool notional Outstanding Covered Bonds Cover pool content Geographic distribution Asset distribution Weighted average LTV* Average loan size* Over collateralisation, OC Rate type** Amortisation** Substitute assets Pool type Loans originated by * Residential
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q3 2023 Cover Pool 1 Cover Pool2 ~ owner units. 52% Cover pool balance by loan category Public 0% Cover pool balance by region /Mid Finland 14%. South Finlen = Greater Helsinki Area 52% Fired 20% ™ North/ East /Mid Finland 13%. South Finlan 1% = We: XS y Finland ——
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: Loan To Value (LTV)
Loan To Value (LTV) Continuous distribution where each loan can exist in multiple buckets Q3 2023 Cover Pool 1 - Weighted Average LTV — Indexed — 50.9% Nominal 196 % Residential Loans 100% 149 76% 24 16 WW 11% 8% 6% | — — i — — 0-40% 40-50% 50-60% 60-70% Total 0-40% 40-50% 50-60% 60-70% Total Cover
Slide 11: Loan structure: rate type and repayment
Loan structure Q3 2023 Rate type Repayment 100% 80% 29% 29% 29% 29% 29% Capped rate cover 60% m Floating rate mAmortising Pooll | gam a Fixed rate Bullet / interest only 20% 0% 2203 23Q3 100% 20% 29% 29% 29% 29% 29% capped rate Cover 60% m Floating rate . isi Amorti Pool2 ~ mortsing 40% m Fixed rate
Slide 12: Underwriting criteria
Underwriting criteria 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 calculated using stres
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Finnish covered bond framework
Finnish covered bond framework Po Cover pool 1 — old until July 2022 Cover pool 2 — new as per July 2022 Legal framework Finnish Covered Bond Act (statute 688/2010) Finnish Mortgage Banks and Covered Bonds Act (statute 151/2022) LTV ratios Limit on LTV ratio — based on the current value Limit on LTV
Slide 15: Finnish covered bond framework, continued
Finnish covered bond framework, continued pO Cverpool 182 Registration * Collateral assets remain on the balance sheet of the issuer * — Covered bonds, collateral and relevant derivative contracts are entered in a separate register Bankruptcy remoteness Isolation of registered collateral assets and
Slide 16: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 17: Nordic economic development
Nordic economic development New interest rate environment GDP development Unemployment rate n n 140 Tindex 2007Q1=100 GDP, level Index 2007Q1=100 mo % Unemployment % 135 135 10 10 430 | —Sweden [~~ 130 94 ° Norway WA 125 | —penmark —— 125 e e 120 | —Finlane! {ort 120 7 7 0 TO nos / —™ . 105, - -\ 10
Slide 18: Nordic economies
Nordic economies Higher for longer interest rates Policy rates Public balance/debt, % of GDP, 2023E (IMF) tel” Poti * 20235 8° olicy rates Norwa 40 25 “er 25 as 3.0 a 20 20 8 25 S15 15 2 20 2 #10 10 1s 5 \reland 10 10 =e? wa Netherlands ‘aust Portugal Spain United States ° os os Zo Eintang Austria °
Slide 19: Households
Households Heavy steps Household debt Household savings 300 19% of disposable Household debt % of disposable[ 30° 20.0 ty of disposable Household saving rate 20.0 275 income income|. 275 175 income 175 250 250 15.0 —Sweden Norway 225 225 2s —benmark 200 200 10.0 —Fintand 175 7s 7s 150 150 5.0 125 12
Slide 20: Housing markets
Housing markets Higher interest rates imply downside risks on the housing market Housing prices Households’ credit growth 250 1 dex, 2007=100 Housing prices index, 2007-100] *°° 19.0 464 iy Households’ credit growth vyiyp 2° 3m moving average 25 125 225 225 10.0 10.0 200 7s 7S 175 5.0 5.0 25 25 150
Slide 21: 6. Further information
6. Further information Nordea
Slide 22: Nordea Mortgage Bank — outstanding benchmark covered bonds
Nordea Mortgage Bank — outstanding benchmark covered bonds Q3 2023 2 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS1522968277 EUR 1000 21/11/2023 0.250% XS1132790442 EUR 1000 05/11/2024 1.000% XS1825134742 EUR 1000 23/05/2025 0.625% XS2157194643 EUR 6000 16/11/2025 FRN XS2561746855
Slide 23: Contacts
Contacts Investor Relations Maria Caneman Head of Debt IR and Ratings Tel: +46 10 156 50 19 Mobile: +46 768 24 9218 maria.caneman@nordea.com Group Treasury Christian Peschel Dealer Tel: +46 8 429 3251 Mobile: +46 72 142 17 51 christian.peschel@nordea.com 23 Morten Kiel Head of Covered bonds Tel: +45
Nordea Mortgage Bank — Debt Investor Presentation (2023) on 6ix