Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2024)
23 slides from Nordea Bank Abp's debt investor presentation, 2024
Slide 1: Cover pools 1 & 2
Cover pools 1 & 2
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: Covered bonds: Nordea covered bond operations
Covered bonds Nordea covered bond operations Four aligned covered bond issuers with complementary roles Legislation Cover pool assets Cover pool size Covered bonds outstanding oc Issuance currencies Rating (Moody's / S&P) Outstanding green covered bonds Nordea Eiendomskreditt riLN Up Norwegian Norwe
Slide 5: Nordea Mortgage Bank Plc — overview
Nordea Mortgage Bank Plc — overview Q4 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 1 (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) Q4 2023 Cover pool balance by loan category f _ Summer , Mult “Louses Public family 3% 0% houses. 4% | Cover Pool 1 Tenant owner units 52% - Summer Houses — Public Cover Pool2 ~ Cover pool balance by region ™ North/ East /Mid Finland 14%. South Finlan mand = Greate
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 Q4 2023 Cover Pool 1 - Weighted Average LTV — Indexed — 50.9% Nominal 166 % Residential Loans 100% 12,7 76% 17 09 10% 8% 6% a — — Yd — — 0-40% 40-50% 50-60% 60-70% Total 0-40% 40-50% 50-60% 60-70% Total Cover P
Slide 11: Loan structure
Loan structure Q4 2023 Rate type Repayment 100% 100% 20% | 29% 29% 29% 29% 29% 29% Capped rate 80% Cover 60% m Floating rate 60% mAmortising Pool 1 40% m Fixed rate 40% = Bullet / interest only 20% 20% 0% 0% EUs 2203 2304 2203 2303 2304 100% 100% 0% | 29% 29% 29% += 29% = 29% += 29% Capped rate 80%
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 Soft landing GDP Unemployment rate 140 Tindex 2007Q1=100 GDP, level Index 2007Q1=100] ‘4° "1% ‘Unemployment wl 135 10 430 | —Sweden ° Norway 125 7 = Denmark s 120 | —Finland 7 us 6 110 5 5 105 , a a 100 | AY a 3 a oo ; Sweden — Norway — Denmark — Finland ; 2008 2010 2012
Slide 18: Nordic economies
Nordic economies Past the peak Policy rates 5.0 4s 40 35 3.0 25 20 15 10 os 0.0 -05 “10 % Policy rates 0.0 “05 1.0 12° 13° 14°15" «16 17 1B 19 «20 «2 22 23 2a” 25 == Sweden == Norway == Denmark == Euro Area Public balance/debt, % of GDP, 2024E (IMF) 150 ; 20246 125 Norway 10.0 7S Wreland 251 venmark
Slide 19: Households
Households Adapting to higher interest rates Household debt % of disposable] 30° incomel|. 275 300 49% of disposable 275 fincome Household debt 250 250 225 225 200 200 175 175 150 150 125 125 100 ee 100 75 75 so —Sweden — Norway — Denmark — Finland 50 2002 2004 2006 2008 2010 2012 2014 2016 2018 202
Slide 20: Housing markets
Housing markets Still under pressure from high interest rates Home prices Households’ credit growth 0 0 o 25 Index, 2007=100 Home prices index, 2007100) * 01 iy Households’ credit growth vy) 3m moving average 25 125 225 225 10.0 10.0 200 7s 7S 1s 50 5.0 25 25 150 0.0 + 0.0 425 -25 25 -5.0 5.0 100 75
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 Q4 2023 2 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS1132790442 EUR 1000 05/11/2024 1.000% XS1825134742 EUR 1000 23/05/2025 0.625% XS2157194643 EUR 6000 16/11/2025 FRN XS2561746855 EUR 1000 01/12/2025 2.625% XS1963717704
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 (2024) on 6ix