Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Nordea Eiendomskreditt — Debt Investor Presentation (2018)
22 slides from Nordea Bank Abp's debt investor presentation, 2018
Slide 1: Nordea Eiendomskreditt Covered Bonds
Nordea Eiendomskreditt Covered Bonds Q2 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 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 Q2 2018 Four aligned covered bond issuers with complementary roles Nordea Nordea Nordea Nordea Mortgage Eiendomskreditt Hypotek Kredit Bank Legislation Norwegian Swedish Danish/SDRO Finnish Cover pool assets Norwegian residential mortgages Swedish residential mortgages
Slide 5: Nordea Eiendomskreditt – overview
Nordea Eiendomskreditt – overview Q2 2018 • A 100% owned subsidiary of Nordea Bank AB • 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 B
Slide 6: 2. Cover pool characteristics
2. Cover pool characteristics 6
Slide 7: Cover pool key characteristics
Cover pool key characteristics Q2 2018 Cover pool summary Pool notional NOK 109.8bn Outstanding Covered Bonds NOK 87.1bn 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) Q2 2018 Cover pool balance by loan category Weighted Average LTV – Indexed 100% 90% Summer houses 80% Regulatory limit 75% 3% 70% Tenant owner units Regulatory limit 60% 26% 60% 49,9% 50% 48,2% 45,4% 40% Single family houses 30% 71% 20% 10% 0% Single-family houses
Slide 9: Cover pool – geographic distribution
Cover pool – geographic distribution Q2 2018 Fylke Loan balance Region Akershus 17,27 % East Aust-Agder 1,56 % South Buskerud 4,20 % East Finnmark 0,46 % North Hedmark 1,93 % East Hordland 11,00 % West Møre og Romsdal 7,53 % West Nordland 2,00 % North Oppland 3,69 % East Oslo 23,23 % East Rogaland 4
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 Q2 2018 Weighted Average LTV – Unindexed 50.3% LTV buckets Nominal (NOKm) % Residential Loans >0 - <=40 % 30 684 27,94% >40 - <=50 % 18 218 16,59% >50 - <=60 % 23 440 21,35% >60 - <=70 % 21 441 19,52% >70 - <=80 % 16 033 14,60% Total 10
Slide 12: Loan structure
Loan structure Q2 2018 Rate type Repayment Repayment 100% 100% 90% 90% 80% 80% 70% 70% 62,6% 65,0% 64,8% 60% 67,7% 67,2% 67,0% 60% 50% 97,7% 98,3% 98,3% 98,5% 98,4% 98,3% Amortising 50% 40% Floating rate 40% Bullet / interest only* 30% Fixed rate 30% 20% 20% 37,4% 35,0% 35,2% 32,3% 32,8% 33,0% 10% 1
Slide 13: Underwriting criteria
Underwriting criteria Q2 2018 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 Q2 2018 • 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: Prospering Nordic economies
Prospering Nordic economies GDP development Unemployment rate Comments GDP forecast, % • The Nordics are enjoying an economic tailwind. While the Country 2015 2016 2017 2018E 2019E synchronized global recovery raise exports, the Denmark 1.6 2.0 2.2 1.8 1.7 accommodative monetary polices support dome
Slide 18: 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, 2018E Comments 10 8 • In all countries, apart from Denmark, household debt continues to rise somewhat faster than income. Meanwhile, households’ savings rates remain at h
Slide 19: House price development in the Nordics
House price development in the Nordics House prices Household’s credit growth 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
Slide 20: 7. Further information
7. Further information Habe foe: tly Nordea
Slide 21: Covered bonds – outstanding volumes
Covered bonds – outstanding volumes Q2 2018 Breakdown by ISIN ISIN Currency Amount (NOKm) Maturity Coupon (%) NO0010647241 NOK 12 195 2019-06-19 FRN NO0010692767 NOK 2 380 2019-06-19 3,05 NO0010703531 NOK 13 015 2020-06-17 FRN NO0010741903 NOK 114 2020-06-17 1,75 NO0010729817 NOK 11 000 2021-06-16 F
Slide 22: Contacts
Contacts Investor Relations Andreas Larsson Axel Malgerud Head of Debt IR Debt IR Officer Nordea Bank AB Nordea Bank AB Mobile: +46 709 70 75 55 Mobile: +46 721 41 51 50 Tel: +46 10 156 29 61 Tel: +46 10 157 13 13 [email protected] [email protected] Group Treasury & ALM Nils Gunnar B
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