Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Debt Investor Presentation (2020)
15 slides from Nordea Bank Abp's debt investor presentation, 2020
Slide 1: Video debt investor presentation Q1 2020
Video debt investor presentation Q1 2020 Confidential
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance
Slide 3: Table of contents
Table of contents 1. Credit portfolio update 4 2. Q1 results and COVID-19 7 3. Capital 10 4. Funding and liquidity 12 3
Slide 4: Loan portfolio – well diversified across stable Nordic markets
Loan portfolio – well diversified across stable Nordic markets Well diversified across stable Nordic markets Corporate portfolio well diversified across sectors 7% Outside Nordics Norway 2% Finland Maritime (shipping) Mortgages Utilities and 3% Industrials 20% 22% public sector 4% Natural 11% resour
Slide 5: Loan portfolio – well diversified across segments
Loan portfolio – well diversified across segments Exposure to immediately affected segments limited Comments Unsecured consumer 2.3% • Well-positioned entering into the COVID-19 shock Materials 0.7% • total allowances EUR 2.4bn Oil, gas & offshore 0.7% • Immediately affected segments amount to 9.6%
Slide 6: Asset quality – higher provisions due to uncertain economic outlook
Asset quality – higher provisions due to uncertain economic outlook Stage 3 impaired loans at amortised cost, EURm Comments 5,212 5,126 •• Stable level Actual loanoflosses impaired of loans EUR 34m 4,748 4,677 •• Allowance ratio for impaired loans increased to 39% EUR 120m management judgement 4,610
Slide 7: Executive summary
Executive summary • COVID-19 has affected all of us • immediate priorities; our customers, staff safety and business continuity • several ongoing initiatives aimed at supporting our customers • early signs of Nordic societies opening up, but high uncertainty remains • Solid first quarter result desp
Slide 8: Nordea’s response to the COVID-19
Nordea’s response to the COVID-19 Household customers Corporate customers Our employees • Total customer activity level and • Intensity in customer interactions at • +70% of staff working remotely – fully accessibility remain high despite the record-high level – during the first operational during t
Slide 9: Revenues – improvement in net interest and commission income
Revenues – improvement in net interest and commission income Net interest income, EURm Comments year over year +5% 1,108 1,109 • Net interest income up 5% 1,056 1,071 1,083 • lending volumes up 4% • margins overall stable YoY, improving in the quarter • increased corporate loan demand in March Q119
Slide 10: Capital – strong position enabling long-term sustainable growth
Capital – strong position enabling long-term sustainable growth CET1 capital position and requirement Comments 16.3% 16.0% • Q1 CET1 ratio 16.0% compared to the current requirement of 10.2% • CET1 buffer above requirement of ~5.8%-points corresponding to ~EUR 8.8bn 13.1% 1.4% • CET1 requirements low
Slide 11: Capital – low historic volatility and significant buffer to regulatory requirements
Capital – low historic volatility and significant buffer to regulatory requirements Low CET1 volatility, 2006-19*, % Comments 1.01 0.95 • A stable capital base 0.87 • Low CET1 volatility 0.53 • Robust capital position 0.48 0.49 • Current capital buffer is double 2018 EBA stress test CET1 0.29 impact
Slide 12: Liquidity – solid liquidity position supporting our customers
Liquidity – solid liquidity position supporting our customers Liquidity buffer development, EURbn Comments 107 104 104 103 100 102 101 • Robust liquidity position 95 • stable liquidity buffer of over EUR 100bn 91 • liquidity coverage ratio (LCR) improved to 182% from 166% in Q419 • EU net stable fun
Slide 13: Solid funding operations
Solid funding operations Long-term issuance Q1 2020, gross volumes, EUR 5.7bn* Strong funding position EURm AT1 T2 Senior non-preferred Green senior unsecured Senior unsecured** Covered • EUR 5.7bn issued in Q1 2020 3 500 • NSFR 109.7% per Q1 2020 -further improved from the previous quarter 3 000 2
Slide 14: Senior non-preferred issuance plan
Senior non-preferred issuance plan Own funds and bail-in-able debt, EURbn Comments • Issuance period for planned total SNP of EUR ~10bn* may be extended from the end of 2022 to the end of 2023, as a result of prolonged Point of Non Viability Resolution implementation time for MREL subordination requ
Slide 15: Contacts
Contacts Investor Relations Rodney Alfvén Andreas Larsson Maria Caneman Carolina Brikho Head of Investor Relations Head of Debt Investor Relations Senior Debt IR Officer Roadshow Coordinator Mobile: +46 722 35 05 15 Mobile: +46 709 70 75 55 Mobile: +46 768 24 92 18 Mobile: +46 761 34 75 30 Tel: +46