Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2020)
23 slides from Nordea Bank Abp's debt investor presentation, Nov 27, 2020
Slide 1: Nordea Eiendomskreditt Covered Bonds Q2 2020 Debt investor presentation
Nordea Eiendomskreditt Covered Bonds Q2 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 10 4. Covered bond framework 14 5. Macro 16 6. Further information 20 2
Slide 3: 1. In brief
1. In brief 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q2 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 Eiendomskreditt – overview
Nordea Eiendomskreditt – overview Q2 2020 • A 100% owned subsidiary of Nordea Bank Abp • The purpose of the Issuer is to acquire and provide residential mortgage loans and finance its activities mainly through issuance of covered bonds • Loans are originated by Nordea Eiendomskreditt (NE) • Collater
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q2 2020 Cover pool summary Pool notional NOK 170.1bn Outstanding Covered Bonds NOK 135.3bn Cover pool content Mortgage loans secured by Norwegian residential collateral Geographic distribution Throughout Norway with concentration to urban areas Asset distribution 100%
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q2 2020 Cover pool balance by loan category Weighted Average LTV – Indexed 100% 90% Summer houses 80% Regulatory limit 75% 3% Tenant owner 70% units Regulatory limit 60% 26% 60% 51% 50% 50% 45% 40% Single family houses 30% 71% 20% 10% 0% Single-family houses Tenant
Slide 9: Cover pool – geographic distribution
Cover pool – geographic distribution Q2 2020 Fylke Loan balance Region Agder 5,4% South West 15,4% Innlandet 5,4% Mid Nordland 2,1% North South 5,4% Oslo 26,3% East North 4,9% Rogaland 3,8% West Trøndelag 3,5% Mid East 65,3% Mid 8,9% Troms og Finnmark 2,8% North Vestfold og Telemark 6,0% East Vestla
Slide 10: 3. Asset quality
3. Asset quality 10
Slide 11: Loan to Value (LTV)
Loan to Value (LTV) Each loan is reported in the highest bucket Q2 2020 Weighted Average LTV – Unindexed 50.7% LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 44 520,4 26,2% >40 - <=50 % 28 857,8 17,0% >50 - <=60 % 38 274,5 22,5% >60 - <=70 % 35 059,0 20,6% >70 - <=80 % 23 339,4 13,7% Tot
Slide 12: Loan structure
Loan structure Q2 2020 Rate type Repayment 100% 100% 90% 90% 80% 80% 55,8% 53,7% 70% 70% 61,0% 60,5% 60,5% 61,3% 60% 60% 50% 98,0% 98,8% 98,5% 98,3% 98,3% 98,3% 50% 40% 40% 30% 30% 44,2% 46,3% 20% 20% 39,0% 39,5% 39,5% 38,7% 10% 10% 2,0% 1,2% 1,5% 1,7% 1,7% 1,7% 0% 0% 19Q1 19Q2 19Q3 19Q4 20Q1 20Q2 1
Slide 13: Underwriting criteria
Underwriting criteria Q2 2020 Regulation • Mortgages is regulated in "Boliglånsforskriften" which set requirements on borrowers' debt to income, rent sensitivity, instalments and loan to value. Affordability • Customers ability to service its commitment out of its cash flow/income is critical • Repa
Slide 14: 4. Covered Bond framework
4. Covered Bond framework alee fee: tly Nordea
Slide 15: Norwegian covered bond framework
Norwegian covered bond framework Q2 2020 • Legal framework • Financial Undertakings Act (Act. No. 17 of 10 April 2015, Norwegian: Finansforetaksloven) • Registration and independent inspector • A mortgage credit institution shall for each cover pool establish a register of loans, interest rate contr
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, %, baseline scenarios Country 2018 2019E 2020E 2021E • Lockdowns to halt the spread of Covid-19 have had enormous financial costs worldwide, and the Nordic economies are no exception. Denmark 2.4 2.4 -5.0
Slide 18: Nordic rates – low for very long
Nordic rates – low for very long Policy rates Public balance/debt, %, of GDP, 2021E Comments • Norway has seen three rate cuts totalling 150 bp in two months. Policy rates have been left unchanged in Sweden and the Euro Area while Denmark hiked the interest rate marginally due to technical reasons.
Slide 19: Household debt remains high, but so are private and public savings
Household debt remains high, but so are private and public savings Household debt Household savings 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 elevated levels in all countries, supp
Slide 20: House price development in the Nordics
House price development in the Nordics House prices Household 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 t
Slide 21: 6. Further information
6. Further information alee foe: tly Nordea
Slide 22: Covered bonds – outstanding volumes
Covered bonds – outstanding volumes Q2 2020 Breakdown by ISIN ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010729817 NOK 9 275 2021-06-16 FRN NO0010584345 NOK 9 383 2021-06-16 4,25 NO0010878374 NOK 36 000 2021-12-15 FRN NO0010758931 NOK 4 615 2022-06-15 1,08 NO0010759632 NOK 19 050 2022-06-15
Slide 23: 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 Ola Bladholm Juho-Pekka Jääskeläinen
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