Financial and Mortgage Portfolio Overview
Highlights
Robust mortgage portfolio
Average LTVs stable and built-in buffers for rate increases
Mortgage portfolio
Gross carrying amount, ISKbn
LTV distribution of mortgages to individuals
Gross carrying amount, ISKbn, 30.6.2022
Conservative payment assessment
for non-indexed variable rates
mortgages in low interest
476
497
441
452
459
100
18%
17%
environment makes the Bank's
146
customers well equipped for higher
102
114
125
138
15%
80
Total: ISK 497bn
Average LTV: 65%
14%
interest rate environment
12%
60
10%
154
LTV is capped at 80% (85% for first
155
155
153
151
time buyers) and debt service-to-
40
40
7%
income <35% (40% for first-time
buyers)
4%
150
151
151
159
171
20
2%
0%
34
32
30
30/06/2021
30/09/2021
31/12/2021
28
31/03/2022
27
30/06/2022
0
■CPI linked floating
■CPI linked 5Y fixed ■NIL floating
NIL 3-5Y fixed
0-10% 10-20% 20-30% 30-40% 40-50% 50-60% 60-70% 70-80% 80-90% 90-100%
■Purchase agreement
■Official real estate value
Real estate agents assessment
Sensitivity analysis conducted at
year-end showed that if rates
would rise by 5% it would not lead
to a further capital requirement for
the Bank. The Bank's rates have
now risen by 2.85% since the
analysis and are not expected to
exceed the 5% stress test range
If official real estate value for 2023
was used instead of the official
2022 value, then property value
would increase by 26% on average
and LTVs would decrease
Mortgages portfolio: Stage 2 and 3 (NPL)
Development of gross carrying amount as ratio of mortgages
portfolio
Interest rate reset profile for NIL 3-5Y fixed rate mortgages1
Gross carrying amount, ISKbn
56
46
0.9%
0.9%
0.9%
0.8%
27
0.8%
1.9%
1.8%
1.2%
15
0.9%
0.6%
1
1
30/06/2021
30/09/2021
31/12/2021
31/03/2022
30/06/2022
■Stage 2
■Stage 3
2022
2023
2024
2025
2026
2027
1. NIL stands for non-index linked loans
20
August-September 2022View entire presentation