Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (January 2020)
22 slides from Nordea Bank Abp's debt investor presentation, January 2020
Slide 1: Nordea Mortgage Bank Covered Bonds
Nordea Mortgage Bank Covered Bonds Q4 2019 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 16 6. Further information 20 2
Slide 3: 1. In brief
UR Cal Ca cal Ca
Slide 4: Nordea covered bond operations
Nordea covered bond operations Q4 2019 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 Mortgage Bank Plc – overview
Nordea Mortgage Bank Plc – overview Q4 2019 • 100% owned subsidiary of Nordea Bank Abp (as of October 1st) - the largest Nordic financial institution • Operates as a mortgage credit institution with the main purpose of issuing covered bonds • Licensed by the European Central Bank to issue covered bo
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q4 2019 Cover pool summary Pool notional EUR 21.9bn Outstanding Covered Bonds EUR 16.1bn Cover pool content Mortgage loans secured by residential property. Loans guaranteed by public sector Geographic distribution Throughout Finland with concentration in urban areas As
Slide 8: Cover pool key characteristics (2)
Cover pool key characteristics (2) Q4 2019 Cover pool balance by loan category Cover pool balance by region Summer Houses 2,6% Public North/ East /Mid 1% Finland Multi-family houses 17% 5% Greater Helsinki Single -family South Finland Area houses 14% 47% 42% Tenant owner units 50% West Finland 23% 8
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value (LTV) Continuous distribution where each loan can exist in multiple buckets Q4 2019 Weighted Average LTV – Unindexed 51.1% LTV buckets Nominal (EURm) % Residential Loans >0 - <=40 % 16 568 76,00% >40 - <=50 % 2 346 10,76% >50 - <=60 % 1 746 8,01% >60 - <=70 % 1 141 5,24% Total 21 801 1
Slide 11: Loan structure
Loan structure Q4 2019 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% Floating rate Amortising 50% 98,1% 98,1% 98,0% 98,2% 98,2% 98,3% 50% 95,7% 96,1% 96,2% 96,4% 97,0% 97,1% Bullet / interest only Fixed rate 40% 40% 30% 30% 20% 20% 10% 10% 0% 1,9% 1,9% 2,0% 1,8% 1,8% 1,7% 0% 4,3% 3,9
Slide 12: Underwriting criteria
Underwriting criteria Q4 2019 • Residential mortgage loans • Nordea’s credit decision is based on the borrower’s repayment capacity and collateral is always taken • Collateral must be in the form of mortgages in real estate or in shares in housing companies • Repayment ability of borrowers is calcul
Slide 13: 4. Covered Bond framework
4. Covered Bond framework alge fee: tly Nordea
Slide 14: Finnish covered bond framework
Finnish covered bond framework Q4 2019 • Legal framework • Finnish Covered Bond Act (statute 688/2010) • Registration • Collateral assets remain on the balance sheet of the issuer • Covered bonds, collateral and relevant derivative contracts are entered in a separate register • Limit on LTV ratio –
Slide 15: Finnish covered bond framework (2)
Finnish covered bond framework (2) Q4 2019 • Bankruptcy remoteness and preferential claim • Isolation of registered collateral assets, registered derivatives from all other assets and liabilities of the insolvent issuer • Holders of covered bonds together with counterparties of registered derivative
Slide 16: 5. Macro
5. Macro 16
Slide 17: Nordic economies – solid
Nordic economies – solid GDP development Unemployment rate Comments GDP forecast, % • The Nordic economies are well equipped to handle the global slowdown. Country 2017 2018 2019E 2020E 2021E Sweden is set to recover in the end of 2020, and Denmark is headed for a soft landing after a six-year upswi
Slide 18: Household debt remains high, but so do private and public savings
Household debt remains high, but so do private and public savings Household debt Household savings Public balance/debt, % of GDP, 2020E Comments • Household debt continues to rise somewhat faster than income in Norway, Finland and Sweden. Denmark continues to move in the opposite trend • Meanwhile,
Slide 19: House price development in the Nordics
House price development in the Nordics House prices Households’ credit growth Comments • Low interest rates continue to keep Nordic housing markets afloat and modest price increases are expected in the coming years. Prices continue to rise in Sweden and Norway. Danish home prices are still at a low
Slide 20: 6. Further information
6. Further information alee fee tly Nordea
Slide 21: Nordea Mortgage Bank – outstanding benchmark covered bonds
Nordea Mortgage Bank – outstanding benchmark covered bonds Q4 2019 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS0874351728 EUR 1 250 2020-01-15 1,375 XS1204134909 EUR 1 000 2020-06-17 0,125 XS0591428445 EUR 1 000 2021-02-10 4 XS1554271590 EUR 1 500 2022-01-24 0,025 XS1308350237 EU
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 Juho-Pekka Jä
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