Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Mortgage Bank — Debt Investor Presentation (2020)
22 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: Four aligned covered bond issuers with complementary roles
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 primarily Danish residential & commercial F
Slide 5: Slide 5
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Slide 7
Slide 8: Slide 8
Slide 9: 3. Asset quality
3. Asset quality 9
Slide 10: Slide 10
Slide 11: Slide 11
Slide 12: Underwriting criteria
Underwriting criteria Q1 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 Q1 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) Q1 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, %, U-shaped scenario • The global economy is in recession and the next few months will be Country 2018 2019 2020E 2021E extremely challenging. Lockdowns will trigger lower consumer spending and investments
Slide 18: Nordic interest rates – low for very long
Nordic interest rates – low for very long Household debt Household savings Policy rates 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 very high levels in all countries. Uncertainty and
Slide 19: House price development in the Nordics
House price development in the Nordics House prices Household’s 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
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 Q1 2020 Breakdown by ISIN ISIN Currency Amount (EURm) Maturity Coupon 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 EUR 1 250 2022-10-19 0,625 XS1784067529 EU
Slide 22: 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