Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Kredit — Debt Investor Presentation (2023)
27 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: Nordea Kredit Covered Bonds Q3 2023 Debt Investor Presentation
Slide 2: Table of contents
Table of contents 1. Nordea covered bond operations Nordea Kredit in brief Cover pool key characteristics Asset quality Underwriting criteria Danish covered bond framework ol fol fa 55 fo LV ETeige) . Links and contact ea ly Nordea
Slide 3: 1. Nordea covered bond operations
1. Nordea covered bond operations | tp ele: tly g 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 q A q di of NUD a . Legislation Norwegian Swedish Danish Finnish Cover pool assets Norwegian residential mortgages ‘
Slide 5: 2. Nordea Kredit - in brief
2. Nordea Kredit - in brief alee pele tly Nordea
Slide 6: Nordea Kredit — in brief
Nordea Kredit — in brief * 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 FSA (DFSA,
Slide 7: 3. Cover pool key characteristics
3. Cover pool key characteristics Habe fee: tly Nordea
Slide 8: Cover pool key characteristics
Cover pool key characteristics Q3 2023 Outstanding covered bonds EUR 60.0bn Cover ool content See ee Geographic distribution Throughout Denmark with concentration in urban areas Weighted average LTV 473% Average residential loan size EUR 206,629 Over collateralisation, OC 71% Rate type (bonds) Fixed
Slide 9: Loan portfolio
Loan portfolio Q3 2023 Market share! by property category Market share! — overall HM 03 2022 MM 93 2023 17.0% seco, 20% - 19% + 141% 13.3% 18% 4 113% 114% 11.0% ao.79% 17% 4 16% + % 4 15% 143% 13.9% 14% 4 - 13.8% 13.7% 13.6% 13% 4 3.7% 3.6% 12% + 1% 4 . 10% Other Private rental Commercial Agricultur
Slide 10: Loan portfolio
Loan portfolio Q3 2023 Loan portfolio by loan type re of interest-only mortgages 53.1% 53.3% 53.4% 43.2% % 2% 42.2% 50.8% 47.2% 27.6% 27.9% 28.5% 31.6% 313% 3.9% 29% 21% 17% 15% Q42019 Q42020 = 42021 ~=— 42022 ~=—Q3.2023 Q42020, Q42021 4.2022 Q2 2023 Q3 2023 Hl Fixed Rate Floating Rate ARM 3-10Y ARM
Slide 11: Loan portfolio
Loan portfolio Q3 2023 an balance by region oan balance by property catego 3% 13% I The Capital Region of Denmark Central Denmark Region HM Owner occupied dwellings Commercial properties Other properties Il Region Zealand The North Denmark Region Hl Rental Agriculture Region of Southern Denmark ' No
Slide 12: Green building and sustainable asset breakdown
Sustainable management and living natural Pollution prevention and resources (organic farms), DKKm 524 control, DKKm 412 3.4% 2.7% Renewable energy, DKKm 395 2.6% Energy efficiency, DKKm 5812 37.7% Green building (EPC A-B), DKKm 8258 53.6%
Slide 13: Financed emissions — and portfolio by EPCs
Financed emissions — and portfolio by EPCs Q3 2023 Financed emissions ») Total Total Financed Financed Total volume Coverage emission emission emission emission DKKbn (volume) tCO2 tCO2 CO2/DKKbn CO2/sqm Owner. Occ. Dwellings 250 99.3% 505,018 232,794 0.93 20 Commercial residential 40 91.5% 102,300
Slide 14: 4. Asset quality
Slide 15: Loan to value (LTV) — loans for residential and commercial properties
Loan to value (LTV) — loans for residential and commercial properties Q3 2023 Loan type Weighted average LTV — indexed LTV buckets >0-<40% >40-<50% >50-<60% >60-<70% >70-<80% >80% Total Residential loans 54.9% Nominal (DKKm) 245,113 43,159 30,304 17,174 7,805 2,262 345,817 % Loans 70.9% 125% 8.8% 5.
Slide 16: Asset quality
Asset quality Q3 2023 Arrears (owner occupied dwellings and holiday homes) * Loan to value (LTV) weighted average (all loans) 0.32% 48.6% 48.6% 030% 0.28% 473% 0.26% 16.3% 46.3% 0.24% 0.22% 0.20% 44.1% 0.18% 0.16% 0.14% 0.12% 0.10% 0.08% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q22022
Slide 17: 5. Underwriting criteria
5. Underwriting criteria Jia ls tly Nordea
Slide 18: Underwriting criteria
Underwriting criteria Private households + Behavioural score and individual credit assessment are conducted based on income information, e.g. payslips and tax information * "Before-after loan” household budgets are made and used in the assessment (based on a 30-year fixed interest rate annuity loan)
Slide 19: 6. Danish covered bond framework
6. Danish covered bond framework Jia ls tly Nordea
Slide 20: Danish covered bond framework
Danish covered bond framework Legal framework * The Financial Business Act * The Mortgage-Credit Loans and Mortgage-Credit Bonds, etc. Act with several implementing executive orders . Registration Interest Interest * Anissuing institution is required to maintain a static cover pool — Payment payment
Slide 21: 7. Macroeconomy
7. Macroeconomy Ua. eal a tly a Nordea
Slide 22: 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 23: Nordic economies: higher for longer interest rates
Nordic economies Higher for longer interest rates Policy rates 45 40 35 30 25 20 15 10 05 00 -05 1.0 % Policy rates n° 2°13 14°15" «16 «17 1B 19 20 «21 2D ==sweden 23 Norway == Denmark == Euro Area 24 25 10 0s 0.0 -05 “1.0 Public balance/debt, % of GDP, 2023E (IMF) 30 2023E Norway 25 ~ a, 20 & S S15
Slide 24: 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 1
Slide 25: 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 26: 8. Links and Contacts
8. Links and Contacts alge pele: tly Nordea
Slide 27: Links for more information
Links for more information Nordea Kredit Legislation * Nordea Kredit ECBC harmonised transparency templates, * Danish mortgage credit institutions are supervised by the DFSA Link: https://www.nordea.com/en/investor-relations/reports-and- (Finanstilsynet). presentations/bonds/nordea-kredit-covered-bo