Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2022)
24 slides from Nordea Bank Abp's debt investor presentation, 2022
Slide 1: Nordea Kredit Covered Bonds Q4 2021 Debt Investor Presentation
Nordea Kredit Covered Bonds Q4 2021 Debt Investor Presentation
Slide 2: Table of contents
Table of contents 1. Nordea covered bond operations 3 2. Nordea Kredit in brief 5 3. Cover pool key characteristics 7 4. Asset quality 11 5. Underwriting criteria 14 6. Danish covered bond framework 16 7. Macro 18 8. Contacts and links 23 2
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q4 2021 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: 2. Nordea Kredit - in brief
2. Nordea Kredit - in brief alee fee: tly Nordea
Slide 6: Nordea Kredit – in brief
Nordea Kredit – in brief Q4 2021 • 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution • Operates as a mortgage credit institution with the main purpose of granting mortgage credit loans funded by issuing covered bonds • Founded in 1993 and supervised by the Danish FS
Slide 7: 3. Cover pool key characteristics
3. Cover pool key characteristics 7
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q4 2021 Outstanding covered bonds EUR 60.2bn Mortgage credit loans secured by mainly residential property Cover pool content (total: EUR 65.2bn including substitute assets) Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LT
Slide 9: Loan portfolio
Loan portfolio Loan portfolio by property category Loan portfolio by loan type Total DKK 436.6 bn Share of interest-only mortgages Market share1 – 14.3% overall 1) Market share of the Danish mortgage credit market 9
Slide 10: Loan portfolio by regions – and green bonds
Loan portfolio by regions – and green bonds Loan portfolio by regions Green bonds Since November 2019 Nordea Kredit has offered corporate customers green mortgage loans funded by designated green covered mortgage bonds. Green loans can be granted against a mortgage on qualified properties according
Slide 11: 4. Asset quality
4. Asset quality 11
Slide 12: Loan to value (LTV) – loans for residential and commercial properties
Loan to value (LTV) – loans for residential and commercial properties Q4 2021 Loan type Residential loans Commercial loans Weighted average LTV - indexed 54.1% 46.3% LTV buckets Nominal (DKKm) % Loans Nominal (DKKm) % Loans >0 - <=40 % 249,988 71.7% 60,896 74.5% >40 - <=50 % 43,706 12.5% 10,529 12.9
Slide 13: Asset quality
Asset quality Arrears (owner occupied dwellings and holiday homes) * Loan to value (LTV) weighted average (all loans) 62% 0,5% 60% 0,4% 58.6% 58.4% 58% 0,3% 56.8% All mortgage banks (including Nordea Kredit) 0.14% (last 0.14%) 56% 0,2% 54% 53.2% 53.0% 0,1% 52% 51.5% Nordea Kredit 0.10% (last 0.09%)
Slide 14: 5. Underwriting criteria
5. Underwriting criteria alee fee: tly Nordea
Slide 15: Underwriting criteria
Underwriting criteria Q4 2021 Privat households Corporates, agriculture etc. • Behavioural score and individual credit assessment are conducted • A financial analysis of the customer is made, including adjustments for based on income information, e.g. payslips and tax information current market cond
Slide 16: 6. Danish covered bond framework
6. Danish covered bond framework 16
Slide 17: Danish covered bond framework
Danish covered bond framework Q4 2021 • Legal framework • The Financial Business Act • The Mortgage-Credit Loans and Mortgage-Credit Bonds, etc. Act with several detailed executive orders • Registration • An issuing institution is required to maintain a static cover pool • Mortgage deeds are registe
Slide 18: 7. Macro
7. Macro 18
Slide 19: Nordic economies – resilient economies back on track
Nordic economies – resilient economies back on track GDP development Unemployment rate Comments GDP, forecasts from Economic Outlook January 2022 • After the dramatic setback in 2020 due to the coronavirus, the Nordic Country 2021E 2022E 2023E economies have all recovered. However, data points to a
Slide 20: Solid public finances make Nordic economies well-equipped for the future
Solid public finances make Nordic economies well-equipped for the future Policy rates Public balance/debt, % of GDP, 2021E Comments • Norges Bank hiked their rate in September and December last year, and are expected to continue with hikes this year and 2023. The policy rate in Sweden is expected to
Slide 21: Households remain resilient
Households remain resilient Household debt Household savings Comments Private consumption • Household savings increased dramatically during the pandemic, largely because of a decline in spending, but have since returned to more normal levels as consumption has increased. Despite high debt levels, No
Slide 22: Nordic housing markets hot during pandemic
Nordic housing markets hot during pandemic Housing prices Households’ credit growth Comments • Contrary to expectations, house prices increased to record-high levels in all the Nordic countries during the crisis. This is not least because of unprecedented expansionary fiscal and monetary policy in s
Slide 23: 8. Contacts and Links
8. Contacts and Links alee fee: tly Nordea
Slide 24: Links for more information and Contacts
Links for more information Nordea Kredit Legislation ▪ Nordea Kredit ECBC harmonised transparency templates. ▪ Danish mortgage financing is supervised by the DFSA (Finanstilsynet). Link: https://www.nordea.com/en/investor-relations/reports-and- Link: https://finanstilsynet.dk/en presentations/bonds/