Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Hypotek — Debt Investor Presentation (2019)
21 slides from Nordea Bank Abp's debt investor presentation, 2019
Slide 1: Nordea Hypotek Covered Bonds
Nordea Hypotek 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 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 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 Hypotek – overview
Nordea Hypotek – overview Q4 2018 • 100% owned subsidiary of Nordea Bank Abp (as of October 1st) - 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
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 Loans in cover pool SEK 530.9bn Outstanding covered bonds SEK 316.6bn 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) Q4 2018 Cover pool balance by loan category Cover pool balance by region* Commercial Public East Outside 3% sector Sweden Sweden 2% 14% 0% Multi-family houses North 14% Sweden Greater 9% Stockholm Single 39% family West houses Tenant Sweden 53% owner units 16% Grea
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Loan To Value (LTV)
Loan To Value* (LTV) Q4 2018 Weighted Average LTV – Unindexed 57.6% LTV buckets Nominal (SEKm) % Residential Loans >0 - <=40 % 354 920 70,55% >40 - <=50 % 58 559 11,64% >50 - <=60 % 45 838 9,11% >60 - <=70 % 33 268 6,61% >70 - <=80 % 10 482 2,08% Total 503 066 100% Weighted Average LTV - Indexed 51.
Slide 11: Loan structure
Loan structure Q4 2018 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 70% 78,4% 71,3% 72,6% 73,8% 60% 78,6% 78,9% 79,9% 80,6% 80,4% 60% 75,1% 76,0% 77,3% Floating rate Amortising 50% 50% Fixed rate Bullet / interest only 40% 40% 30% 30% 20% 20% 21,6% 28,7% 27,4% 26,2% 24,9% 24,0% 10% 21,4% 21,1%
Slide 12: Underwriting criteria
Underwriting criteria Q4 2018 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 Q4 2018 • Legal framework • Swedish Covered Issuance Act (SFS 2003:1223), came into force 1 July 2004 • Registration • An issuing institution is required to maintain a register on covered bonds, the cover pool and, if applicable, derivative agreements • Limit on LTV ra
Slide 15: 5. Macro
5. Macro 15
Slide 16: 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 17: 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 18: 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 19: 6. Further information
6. Further information alge fee: tly Nordea
Slide 20: Nordea Hypotek – outstanding benchmark covered bonds
Nordea Hypotek – outstanding benchmark covered bonds Q4 2018 Breakdown by ISIN ISIN Currency Amount (SEKm) Maturity Coupon (%) 5530 SEK 36 971 2019-06-19 2,25 5521 SEK 67 242 2020-06-17 3,25 5532 SEK 69 300 2021-05-19 1,25 5531 SEK 76 565 2022-04-08 1 5533 SEK 43 550 2023-09-20 1,25 Total 293 628 20
Slide 21: 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 Cecilia Tanne