Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2021)
23 slides from Nordea Bank Abp's debt investor presentation, Apr 17, 2021
Slide 1: Nordea Mortgage Bank Covered Bonds
Nordea Mortgage Bank Covered Bonds Q4 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 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 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 Mortgage Bank Plc – overview
Nordea Mortgage Bank Plc – overview Q4 2020 • 100% owned subsidiary of Nordea Bank Abp - 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 bonds according to the
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q4 2020 Cover pool summary Pool notional EUR 22.9bn Outstanding Covered Bonds EUR 19.6bn 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 2020 Cover pool balance by loan category Cover pool balance by region Summer Houses 3% North/ East /Mid Public Finland Multi-family 1% houses 16% 4% Greater Helsinki Single -family South Finland Area houses 14% 47% 41% Tenant owner units 51% 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 2020 Weighted Average LTV – Unindexed 52.2% LTV buckets Nominal (EURm) % Residential Loans >0 - <=40 % 17 107 75% >40 - <=50 % 2 505 11% >50 - <=60 % 1 907 8% >60 - <=70 % 1 298 6% Total 22 818 100% Weighted
Slide 11: Loan structure
Loan structure Q4 2020 Rate type Repayment 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 19Q3 19Q4 20Q1 20Q2 20Q3 20Q4 100% 100% 90% 90% 30% 30% 31% 80% 80% 70% 70% Cappted rate 60% 60% Amortising 50% 99% 99% 99% 95% 95% 94% 90% 93% 94% Floating rate 50% 40% Bullet / 69% 68% 68% 40% interest only 30% 30% Fixed rate
Slide 12: Underwriting criteria
Underwriting criteria Q4 2020 • 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 2020 • 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 2020 • 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 – strong rebound in sight
Nordic economies – strong rebound in sight GDP development Unemployment rate Comments GDP, forecasts from Economic Outlook January 2021 • After the dramatic setback in 2020 due to the coronavirus, there appears to be light at the end of the tunnel for 2021 Country (%, y/y) 2020E 2021E 2022E • While
Slide 18: Nordic rates – Nordics well-equipped to handle COVID-19
Nordic rates – Nordics well-equipped to handle the long-term consequences of COVID-19 Policy rates Public balance/debt, % of GDP, 2021E Comments • In December, Norges Bank brought forward its first rate hike by more than six months and now expects to start hiking rates in early 2022. However, due to
Slide 19: Households remain resilient
Households remain resilient Household debt Household savings Comments • Household savings have increased dramatically during the crisis, largely because of a decline in spending. Despite high debt levels, Nordic households’ strong finances are expected to support economic growth as soon as restricti
Slide 20: Nordic housing markets heat up
Nordic housing markets heat up House prices Households’ credit growth Comments • Contrary to expectations, house prices have increased to record-high levels in all the Nordic countries during the crisis. This is not least because of unprecedented expansionary fiscal and monetary policy in support of
Slide 21: 6. Further information
6. Further information alee pele tly Nordea
Slide 22: Nordea Mortgage Bank – outstanding benchmark covered bonds
Nordea Mortgage Bank – outstanding benchmark covered bonds Q4 2020 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon XS0591428445 EUR 1 000 2021-02-10 4 XS1554271590 EUR 1 500 2022-01-24 0,025 XS2157194643 EUR 6 000 2022-05-16 FRN XS1308350237 EUR 1 250 2022-10-19 0,625 XS1784067529 EUR
Slide 23: 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 Petra Mellor Chief Treasury Manager Mobile: +46 702 77 8372 Te
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