Covered Bond Framework Q1 2021

Households remain resilient Household debt, % 400+ 350 % of disposable income Household savings, % 400 Household debt % of disposable 20.0% of disposable income 20.0 Household saving rate income 17.5 17.5 350 15.0 15.0 300 300 12.5 12.5 10.0 250 250 7.5 5.0 200 200 my 10.0 7.5 5.0 2.5- 2.5 150 100 150 0.0- 0.0 -2.5 -2.5 100 - Sweden -Finland Norway -5.0 - Sweden Finland - Denmark Norway -5.0 Denmark 50 50 -7.5 -7.5 T T 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Source: Nordea Markets and Macrobond 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Source: Nordea and Macrobond Comments Household savings have increased dramatically during the crisis, largely due to a decline in spending. Despite high debt levels, Nordic households' strong finances are expected to support economic growth as soon as restrictions are lifted. Low interest rates and economic stimulus continue to support credit growth and the housing market Early labour market measures, automatic stabilisers and other measures to stimulate demand have helped to soften the blow to households and businesses. Robust public finances prior to the crisis have increased the credibility of the measures and harsh fiscal tightening is neither needed in the short term nor expected, which is important for income expectations among households 19 Source: Nordea Markets and Macrobond Nordea

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