Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2020)
23 slides from Nordea Bank Abp's debt investor presentation, 2020
Slide 1: Slide 1
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 Q2 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 Q2 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 Q2 2020 Cover pool summary Pool notional EUR 22.3bn Outstanding Covered Bonds EUR 19.8bn 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) Q2 2020 Cover pool balance by loan category Cover pool balance by region Summer Houses 2,6% Public North/ East /Mid Multi-family 0,6% Finland houses 16,5% 4,7% Greater Helsinki Single -family South Finland Area houses 14,1% 46,6% 42,0% Tenant owner units 50,3% West
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 Q2 2020 Weighted Average LTV – Unindexed 51.5% LTV buckets Nominal (EURm) % Residential Loans >0 - <=40 % 16 791 76% >40 - <=50 % 2 407 11% >50 - <=60 % 1 806 8% >60 - <=70 % 1 200 5% Total 22 204 100% Weighted
Slide 11: Loan structure
Loan structure Q2 2020 Rate type Repayment 100% 100% 90% 90% 29,7% 80% 80% 70% Floating rate (Capped) 70% 60% Floating rate 60% Amortising 93,7% 90,5% Bullet / interest only 98,3% 98,5% 98,5% 98,5% 98,6% 94,6% 94,6% 94,6% 94,8% 50% Fixed rate 50% 40% 40% 68,9% 30% 30% 20% 20% 10% 10% 1,7% 1,5% 1,5%
Slide 12: Underwriting criteria
Underwriting criteria Q2 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 Q2 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) Q2 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 – years before back to normal
Nordic economies – years before back to normal GDP development Unemployment rate Comments GDP, %, baseline scenarios Country 2018 2019E 2020E 2021E • Lockdowns to halt the spread of Covid-19 have had enormous financial costs worldwide, and the Nordic economies are no exception. Denmark 2.4 2.4 -5.0
Slide 18: Nordic rates – low for very long
Nordic rates – low for very long Policy rates Public balance/debt, %, of GDP, 2021E Comments • Norway has seen three rate cuts totalling 150 bp in two months. Policy rates have been left unchanged in Sweden and the Euro Area while Denmark hiked the interest rate marginally due to technical reasons.
Slide 19: Household debt remains high, but so are private and public savings
Household debt remains high, but so are private and public savings Household debt Household savings Comments • Household debt is likely to level off in the coming year, in line with decelerating activity on the housing market. However, the debt ratio remains at elevated levels in all countries, supp
Slide 20: House price development in the Nordics
House price development in the Nordics House prices Household credit growth Comments • Rising unemployment and high uncertainty will take its toll on the Nordic housing markets. Before the crisis, low interest rates kept the Nordic housing markets afloat and stable price increases were expected in t
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 Q2 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 Maria Caneman Head of Debt IR Senior Debt IR Officer 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 Jääskeläinen Senior Treas
Nordea Mortgage Bank — Debt Investor Presentation (2020) on 6ix