Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2021)
22 slides from Nordea Bank Abp's debt investor presentation, 2021
Slide 1: Nordea Eiendomskreditt Covered Bonds Q1 2021 Debt investor presentation
Nordea Eiendomskreditt Covered Bonds Q1 2021 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 Q1 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: Nordea Eiendomskreditt – overview
Nordea Eiendomskreditt – overview Q1 2021 • 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 Q1 2021 Cover pool summary Pool notional NOK 188.5bn Outstanding Covered Bonds NOK 137.2bn 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) Q1 2021 Cover pool balance by loan category Cover pool balance by region Summer houses 3% Tenant owner units West 27% 19,9% South 5,1% North East 4,5% 62,2% Single family Mid 8,3% houses 70% 8
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan to Value (LTV)
Loan to Value (LTV) Each loan is reported in the highest bucket Q1 2021 Weighted Average LTV – Unindexed 50.3% LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 49 943,0 26,5% >40 - <=50 % 33 435,6 17,7% >50 - <=60 % 42 833,7 22,7% >60 - <=70 % 39 002,2 20,7% >70 - <=80 % 23 337,0 12,4% Tot
Slide 11: Loan structure
Loan structure Q1 2021 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 70% 56% 54% 61% 60% 61% 61% 60% 60% 50% 98% 98% 98% 99% 98% 98% 50% 40% 40% 30% 30% 20% 44% 46% 20% 39% 40% 39% 39% 10% 10% 0% 2% 2% 2% 1% 2% 2% 0% 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 19Q4 20Q1 20Q2 20Q3 20Q4 21Q1 Fixed rate Floating
Slide 12: Underwriting criteria
Underwriting criteria Q1 2021 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 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Norwegian covered bond framework
Norwegian covered bond framework Q1 2021 • 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 15: 5. Macro
5. Macro 15
Slide 16: Nordic economies – strong rebound in sight
Nordic economies – strong rebound in sight GDP development, % Unemployment rate, % Comments GDP forecasts from Economic Outlook January 2021, % • After the dramatic setback in 2020 due to the coronavirus, there appears to be light at the end of the tunnel for 2021 Country (%, y/y) 2020 2021E 2022E •
Slide 17: Nordic rates – Nordics well equipped to handle long-term consequences of COVID-19
Nordic rates – Nordics well equipped to handle long-term consequences of COVID-19 Policy rates, % Public balance/debt (2021E), % Comments • Norges Bank now expects to start increasing rates in December 2021. However, due to its conservative assumptions regarding the roll-out of vaccines, we expect t
Slide 18: Households remain resilient
Households remain resilient Household debt, % Household savings, % Comments • Household savings have increased dramatically during the crisis, largely due to a decline in spending. Despite high debt levels, Nordic households’ strong finances are expected to support economic growth as soon as restric
Slide 19: Nordic housing markets heating up
Nordic housing markets heating up House prices Households’ credit growth Comments • Contrary to expectations, house prices have increased to record-high levels in all the Nordic countries during the crisis. This is not least due to the unprecedented expansionary fiscal and monetary policy in support
Slide 20: 6. Further information
6. Further information Habe foe tly Nordea
Slide 21: Covered bonds – outstanding volumes
Covered bonds – outstanding volumes Q1 2021 Breakdown by ISIN ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010729817 NOK 4 054 2021-06-16 FRN NO0010584345 NOK 6 355 2021-06-16 4,25 NO0010878374 NOK 36 000 2021-12-15 FRN NO0010758931 NOK 4 615 2022-06-15 1,08 NO0010759632 NOK 18 552 2022-06-15
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman Head of Debt IR Senior Debt IR Officer Mobile: +46 709 70 75 55 Mobile: +46 738 66 17 24 Tel: +46 10 156 29 61 Tel: +46 10 156 50 19 andreas.larsson@nordea.com maria.caneman@nordea.com Group Treasury Ola Bladholm Chief Treasury Manager Tel: +
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