Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2023)
22 slides from Nordea Bank Abp's debt investor presentation, 2023
Slide 1: i aint
aa, i aint BM
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 15 6. Further information 20 Nordea
Slide 3: 1. In brief
1. In brief Nordea
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q2 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: Nordea Eiendomskreditt — overview
Nordea Eiendomskreditt — overview * A100% 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 * — Issues also green covered bonds * Loans are originated by Nordea Eien
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics Nordea
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q2 2023 | Cover pool summary Pool notional NOK 247.6bn Outstanding Covered Bonds NOK 166.5bn 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 2023 Cover pool balance by loan category Cover pool balance by region = Summer houses 3% = Tenant owner units 30% South 5.1%. North 4.5%. ® Single family houses 67% Mid 8.6%. 8 Nordea Open
Slide 9: 3. Asset quality
3. Asset quality Nordea
Slide 10: LTV buckets Total Nominal (NOKbn)
LTV buckets Nominal (NOKbn) % Residential Loans >0 - <=40 % 67.7 45% >40 - <=50 % 46.1 16% >50 - <=60 % 58.3 18% >60 - <=70 % 51.3 15% >70 - <=80 % 24.2 6% Total 247.6 100% 10 Open
Slide 11: Floating rate, Amortising, Fixed rate
100% 100% 90% 90% 80% 80% 70% 70% 62% 63% 63% 61% 61% 63% 60% 60% 50% 98% 98% 97% 98% 98% 98% Floating rate 50% Amortising 40% Fixed rate 40% Bullet / interest only 30% 30% 20% 20% 38% 37% 37% 37% 39% 39% 10% 10% 2% 2% 3% 2% 2% 2% 0% 0% 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 22Q1 22Q2 22Q3 22Q4 23Q1 23Q2 11
Slide 12: Underwriting criteria
Underwriting criteria Regulation * Mortgages are regulated in “Utlansforskriften” which sets requirements on borrowers’ debt to income, rent sensitivity, instalments and loan to value Repayment abitlity + Nordea’s credit decision is based on the customer.s repayment ability and collateral is always
Slide 13: 4. Covered bond framework
4. Covered bond framework Nordea
Slide 14: Norwegian covered bond framework
Norwegian covered bond framework Legal framework + Financial Undertakings Act (Act. No. 17 of 10 April 2015, Norwegian: Finansforetaksloven), which was recently amended on 8 July 2022 to implement the European Covered Bond Directive. Registration and independent inspector + Amortgage credit institut
Slide 15: 5. Macroeconomy
5. Macroeconomy Nordea
Slide 16: Nordic economic development
Nordic economic development Resilient economies are facing headwinds GDP development Unemployment rate n n 140 Tindex 2007Q1=100 GDP, level Index 2007Q1=100 140 % Unemployment % 135 135 10 10 130 | —Sweden [| 130 2 yo~ ° Norway WA 125 | —penmark —— 125 8 e 120 | —Fintand \e i 120 7 7 110 —\ 10 5 / —
Slide 17: Nordic economies
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° 13 14° 15 «16 OW 8 1D «20 oD == Sweden == Norway == Denmark == Euro Area 23 24 20 15 10 0s 0.0 -05 “1.0 Public balance/debt, % of GDP, 2023E (IMF) 30 2023E Norway 25 ~ a, 20 & S S15
Slide 18: Households
Households Feeling the squeeze Household debt Household savings 300 49% of disposable Household debt % of disposable| 30° 20.0 4% of disposable Household saving rate 20.0 275 income income|. 275 175 {income 175 250 250 15.0 — Sweden 15.0 Norway 225 225 2s —benmark 25 200 200 10.0 Finland 10.0 175 7s
Slide 19: 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 20: 6. Further information
6. Further information Nordea
Slide 21: Covered bonds — outstanding volumes
Covered bonds — outstanding volumes Domestic benchmark in NOK Amount, Interest rate ‘Maturity ‘Extended ISIN Amount,M — Currency MNOK = Issue date Coupon type type = Maturity = maturity (NO0010843626 +35 864 NOK 35864 26/02/2019 0.34 Float Soft bullet 19/06/2024 19/06/2025 'NO0010852650 6 000 NOK 60
Slide 22: Investor Relations Group Treasury
Investor Relations Maria Caneman Debt IR and ratings Mobile: +46 738 66 17 24 Desk: +46 10 156 50 19 maria.caneman@nordea.com Group Treasury Cecilia Tannerfeldt Morten Keil Lead Dealer Head of Covered Bonds Desk: +46 8 407 91 05 Desk: +45 3333 1875 Mobile: +46 733 21 44 33 Mobile: +45 6177 3100 ceci
Nordea Eiendomskreditt — Debt Investor Presentation (2023) on 6ix