Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2020)
22 slides from Nordea Bank Abp's debt investor presentation, 2020
Slide 1: Nordea Hypotek Covered Bonds
Nordea Hypotek Covered Bonds Q3 2020 Debt investor presentation
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. Macro 15 6. Further information 19 2
Slide 3: 1. In brief
1. In brief 3
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q3 2020 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 Hypotek – overview
Nordea Hypotek – overview Q3 2020 • 100% owned subsidiary of Nordea Bank Abp - the largest Nordic financial institution • Grants long-term loans to Swedish households, municipalities, municipal housing companies and corporates • All loans secured by mortgages, tenant-owner units or municipal/state g
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q3 2020 Cover pool summary Loans in cover pool SEK 584.5bn Outstanding covered bonds SEK 360.8bn Cover pool content Mortgage loans secured by residential or commercial property. Loans to public sector Geographic distribution Throughout Sweden with concentration to urba
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q3 2020 Cover pool balance by loan category Cover pool balance by region* Multi-family Commercial houses 3% Public East 3% sector Sweden 2% 14% Tenant owner North associations Sweden Greater 11% 9% Stockholm Single 38% family houses West Tenant 52% Sweden owner uni
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value (LTV)* Q3 2020 Weighted Average LTV – Unindexed 57.2% LTV buckets Nominal (SEKm) % Residential Loans >0 - <=40 % 392 626 70,9% >40 - <=50 % 64 421 11,6% >50 - <=60 % 49 825 9,0% >60 - <=70 % 35 764 6,5% >70 - <=80 % 11 291 2,0% Total 553 927,3 100% Weighted Average LTV - Indexed 51.6%
Slide 11: Loan structure
Loan structure Q3 2020 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 64,5% 63,7% 60,7% 70,2% 68,7% 67,1% 70% 60% 71,1% 72,2% Floating rate 60% 79,1% 80,0% 80,9% 80,2% Amortising 50% Fixed rate 50% Bullet / interest only 40% 40% 30% 30% 20% 35,5% 36,3% 39,3% 29,8% 31,3% 32,9% 20% 10% 28,9% 27,8%
Slide 12: Underwriting criteria
Underwriting criteria Q3 2020 Private households • Track record and income checked via UC • Always household budget ”before-after” with buffer requirement and stress test including behavioral analysis • Individual valuation of the pledged property Corporates / Municipalities • Financial analysis wit
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Swedish covered bond framework
Swedish covered bond framework Q3 2020 • Legal framework • Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 • A Swedish investigation regarding the new EU covered bond directive will be presented 31 October 2020 • Registration • An issuing institution is required to maintain
Slide 15: 5. Macro
5. Macro 15
Slide 16: Nordic economies – a solid rebound
Nordic economies – a solid rebound GDP development Unemployment rate Comments GDP, baseline scenarios • The Nordic economies are experiencing a solid rebound after the Country 2018 2019 2020E 2021E 2022E historically large setback in the first half of 2020 due to the COVID-19. However, the pandemic
Slide 17: Nordic rates – low for very long
Nordic rates – low for very long Policy rates Public balance/debt, % of GDP, 2021E Comments • Norway saw three rate cuts totalling 150 bp in the beginning of the crisis. Policy rates have been left unchanged in Sweden and the Euro Area while Denmark hiked the interest rate marginally due to technica
Slide 18: Households remain resilient
Households remain resilient Household debt Household savings Comments • Despite the high debt levels amongst households, low interest rates for longer continue to support credit growth, which in turn helps to stabilize the housing market. There is some uncertainty related to households’ elevated ind
Slide 19: House price development in the Nordics
House price development in the Nordics House prices Households’ credit growth Comments • In Sweden, the housing market has rebounded, and prices were back at pre-crisis levels already during the summer. With low-anchored interest rates and a slightly more positive outlook for the labour market, much
Slide 20: 6. Further information
6. Further information alee fee tly Nordea
Slide 21: Nordea Hypotek – outstanding benchmark covered bonds
Nordea Hypotek – outstanding benchmark covered bonds Q3 2020 Breakdown by ISIN ISIN Currency Amount (SEKm) Maturity Coupon (%) 5532 SEK 63 197 2021-05-19 1,25 5531 SEK 86 515 2022-04-08 1 5533 SEK 59 350 2023-09-20 1,25 5534 SEK 66 750 2024-09-18 1 5535 SEK 36 050 2025-09-17 1 5729* SEK 22 700 2022-
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Randie Atto 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 [email protected] [email protected] Group Treasury & ALM Cecilia Tannerfeldt Senior Treasury Manager Tel: +46 8 407 91