Fourth-quarter Financial Highlights 2023
Supplementary information
Real estate management industry (REMI) for largest customers*
Solid LTVs, resilient interest coverage, high occupancy
Solid LTV levels for all countries
29
•
Majority of portfolio with low LTV
72
65
64
65
65
37%
57
52
51
52
53
27%
24%
10%
31% 28%
18%
12%
10%
•
1% 1%
2%
FI
NO
SE
Total
Current
20% value decline
Current
20% value decline
0-40% LTV
41-50% LTV
51-60% LTV
61-70% LTV
71-80% LTV
>80% LTV
DK
ICR high for all countries
3.8
3.7
3.4
3.3
2.3
1.9
1.9
1.5
1.7
1.5
Present ICR
Sensitivity test
DK
FI
NO
SE
Total
ICR above 1.0 for 98% of portfolio in
stress scenario
46%
36%
40%
25%
15%
14%
15%
5%
2%
0% 0%
Current
<1.0
1.0-1.5
1.5-2.0
2.0-3.0
>4.0
Stress scenario
3.0-4.0
71% of exposures with LTV
below 60%
In event of 20% decline in market
value, 61% of portfolio still with LTV
below 70%
Average Interest Coverage Ratio
(ICR) at 3.3x
Average ICR at 1.7x in stress scenario
- Stress scenario: all debt refinanced
day one at 5Y swap rates plus
margins (5.5-6.5%); no hedging
Strict interest rate hedging
requirements
- 61% of customer debt hedged with
average maturity of 4.1 years
Low vacancy rates, with average
letting ratio 95%
*Based on analysis of largest customers in portfolio corresponding to 50% of EAD (excl. TOAS). For smaller customers in portfolio corresponding
to 50% of EAD (excl. TOAS), credit quality is monitored through various credit risk indicators, such as PD and IFRS 9 stages
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