Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2019)
22 slides from Nordea Bank Abp's debt investor presentation, 2019
Slide 1: Nordea Eiendomskreditt Covered Bonds
Nordea Eiendomskreditt Covered Bonds Q4 2018 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 Nordea Eiendomskreditt Nordea Hypotek Nordea Kredit Nordea Mortgage Bank Four aligned covered bond issuers with complementary roles Legislation Norwegian Swedish Danish/SDRO Finnish Cover pool assets Norwegian residential mortgages Swedish residential mortgages primari
Slide 5: Nordea Eiendomskreditt – overview
Nordea Eiendomskreditt – overview Q4 2018 • A 100% owned subsidiary of Nordea Bank Abp (as of 1 October 2018) • The purpose of the Issuer is to acquire and provide residential mortgage loans and finance its activities mainly through issuance of covered bonds • Loans in Nordea Eiendomskreditt (NE) ar
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q4 2018 Cover pool summary Pool notional NOK 100.6bn Outstanding Covered Bonds NOK 83.1bn Cover pool content Mortgage loans secured by Norwegian residential collateral Geographic distribution Throughout Norway with concentration to urban areas Asset distribution 100% r
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q4 2018 Cover pool balance by loan category Weighted Average LTV – Indexed 100% 90% Summer houses 80% Regulatory limit 75% 3% 70% Tenant owner units Regulatory limit 60% 28% 60% 48,8% 50% 47,0% 44,0% 40% Single family houses 69% 30% 20% 10% 0% Single-family houses
Slide 9: Cover pool – geographic distribution
Cover pool – geographic distribution Q4 2018 Fylke Loan balance Region Akershus 17,22 % East Aust-Agder 1,52 % South Buskerud 4,16 % Mid Finnmark 0,44 % North Hedmark 1,88 % East Hordland 10,70 % West Møre og Romsdal 7,42 % West Nordland 1,97 % North Oppland 3,72 % Mid Oslo 22,94 % East Østfold 7,27
Slide 10: 3. Asset quality
3. Asset quality 10
Slide 11: Loan to Value (LTV)
Loan to Value (LTV) Each loan is reported in the highest bucket Q4 2018 Weighted Average LTV – Unindexed 48.0% LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 32 109 31,91% >40 - <=50 % 18 052 17,94% >50 - <=60 % 21 613 21,48% >60 - <=70 % 18 311 18,20% >70 - <=80 % 10 531 10,47% Total 10
Slide 12: Loan structure
Loan structure Q4 2018 Rate type Repayment 100% 90% 100% 80% 90% 70% 80% 70% 64,8% 60,0% 60% 67,7% 67,2% 67,0% 67,0% 60% 50% 98,3% 98,5% 98,4% 98,3% 97,9% 97,7% 50% * 40% 40% 30% 30% 20% 20% 35,2% 32,3% 32,8% 33,0% 33,0% 40,0% 10% 10% 2,1% 2,3% 0% 0% 1,7% 1,5% 1,6% 1,7% 17Q3 17Q4 18Q1 18Q2 18Q3 18Q4
Slide 13: Underwriting criteria
Underwriting criteria Q4 2018 Affordability • Customers ability to service its commitment out of its cash flow/income is critical • Repayment ability of borrowers is calculated using stressed scenarios. Customers must manage 5 percentage points increase on interest rate on all debt • Scoring of reta
Slide 14: 5. Covered Bond framework
5. Covered Bond framework alee fee: tly Nordea
Slide 15: Norwegian covered bond framework
Norwegian covered bond framework Q4 2018 • Legal framework • Norwegian Financial Institutions Act (2007) • Registration and independent inspector • A mortgage credit institution shall for each cover pool establish a register of loans, interest rate contracts and foreign exchange contracts, substitut
Slide 16: 6. Macro
6. Macro 16
Slide 17: Robust Nordic economies
Robust Nordic economies GDP development Unemployment rate Comments GDP forecast, % • The Nordics have enjoyed a solid economic development in recent Country 2016 2017 2018E 2019E 2020E years. The global economy slowed down during the autumn and especially in the Euro-Area. Monetary policy has shifte
Slide 18: Household debt remains high, but so is private and public savings
Household debt remains high, but so is private and public savings Household debt Household savings Public balance/debt, % of GDP, 2019E Comments • In all countries, apart from Denmark, household debt continues to rise somewhat faster than income. Meanwhile, households’ savings rates remain at high l
Slide 19: House price development in the Nordics
House price development in the Nordics House prices Comments • Recent quarters have shown stabilisation in the Swedish and Norwegian housing markets, while prices continue to rise in Denmark and to some extent also in Finland. • In Sweden house prices declined during H2 2017 but the trend has levell
Slide 20: 7. Further information
7. Further information Habe foe tly Nordea
Slide 21: Covered bonds – outstanding volumes
Covered bonds – outstanding volumes Q4 2018 Breakdown by ISIN ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010647241 NOK 7 282 2019-06-19 FRN NO0010692767 NOK 1 662 2019-06-19 3,05 NO0010703531 NOK 13 115 2020-06-17 FRN NO0010741903 NOK 14 2020-06-17 1,75 NO0010729817 NOK 11 000 2021-06-16 FRN
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Maria Caneman Head of Debt IR Debt IR Officer Nordea Bank AB Nordea Bank AB Mobile: +46 709 70 75 55 Mobile: +46 768 24 92 18 Tel: +46 10 156 29 61 Tel: +46 10 156 50 19 [email protected] [email protected] Group Treasury & ALM Ola Bladholm
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