Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (January 2020)
22 slides from Nordea Bank Abp's debt investor presentation, January 2020
Slide 1: Nordea Eiendomskreditt Covered Bonds
Nordea Eiendomskreditt 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 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 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 Eiendomskreditt – overview
Nordea Eiendomskreditt – overview Q4 2019 • A 100% owned subsidiary of Nordea Bank Abp • 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) are originated by Nordea
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 NOK 166.2bn Outstanding Covered Bonds NOK 97.2bn 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 2019 Cover pool balance by loan category Weighted Average LTV – Indexed 100% 90% Summer houses 80% Regulatory limit 75% 2% Tenant owner 70% units 26% Regulatory limit 60% 60% 51% 49% 50% 45% 40% Single family houses 30% 72% 20% 10% 0% Single-family houses Tenant
Slide 9: Cover pool – geographic distribution
Cover pool – geographic distribution Q4 2019 Fylke Loan balance Region Akerhus 18,5% East Aust-Agder 1,4% South Buskerud 4,2% Mid Finnmark 0,3% North Hedmark 1,9% East Hordland 10,0% West Møre og Romsdal 6,6% West Nordland 2,0% North Oppland 3,5% Mid Oslo 24,1% East Østfold 7,6% East Rogaland 3,6% S
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 2019 Weighted Average LTV – Unindexed 50.6% LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 44 126 26,55% >40 - <=50 % 27 982 16,83% >50 - <=60 % 36 613 22,03% >60 - <=70 % 34 723 20,89% >70 - <=80 % 22 776 13,70% Total 16
Slide 12: Loan structure
Loan structure Q4 2019 Rate type Repayment 100% 100% 90% 90% 80% 80% 70% 70% 60,0% 61,0% 60,5% 60,5% 61,3% 67,0% 60% 60% 50% 97,9% 97,7% 98,0% 98,8% 98,5% 98,3% Fixed rate Amortising 50% 40% Floating rate 40% Bullet / interest only 30% 30% 20% 20% 40,0% 39,0% 39,5% 39,5% 38,7% 33,0% 10% 10% 0% 2,1%
Slide 13: Underwriting criteria
Underwriting criteria Q4 2019 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 2019 • 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: 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: 7. Further information
7. Further information Habe foe tly Nordea
Slide 21: Covered bonds – outstanding volumes
Covered bonds – outstanding volumes Q4 2019 Breakdown by ISIN ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010703531 NOK 7 690 2020-06-17 FRN NO0010741903 NOK 14 2020-06-17 1,75 NO0010729817 NOK 11 000 2021-06-16 FRN NO0010584345 NOK 9 383 2021-06-16 4,25 NO0010758931 NOK 4 615 2022-06-15 1,08
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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