Key figures C/I Ratio, banking* Combined ratio, general % % insurance** 70 120 60 100 105 60 100 55 50 80 40 60 30 40 20 20 10 0 0 Q2/01 Q3/01 Q2/01 Q3/01 * Operating expenses excluding goodwill as a ** Claims and expenses as a percentage of net percentage of operating income and share of P/L from premium income. Change in equalisation provision companies accounted for under the equity method is not included in claims 23
Key figures Earnings per share Return on Equity EUR % 0,4 20 0,35 0.35 17.3 0,3 15 0,25 13.8 0,2 10 9.0 0,15 0,1 5 5.8 0,05 0.06 0 0 Jan-Sep Q3/01 Jan-Sep Q3/01 Return on equity Excl. goodwill 24
25
Income statement summary EURm Q3/01 Q2/01 Change, % Income 1,487 1,620 -8 Expenses -947 -977 -3 Loan losses -213 -59 Equity method 29 20 45 Profit excl. investment earnings 356 604 -41 Investment earnings -93 110 Goodwill -35 -37 Operating profit 228 677 -66 26
Income statement summary Jan-Sep Jan-Sep Change, Adj. for EURm 2001 2000 % CBK, % Income 4,666 3,908 19 8 Expenses -2,879 -2,413 19 3 Loan losses -317 -57 Equity method 60 63 -5 -15 Profit excl. investment earnings 1,530 1,501 2 -3 Investment earnings 38 531 -93 -93 Goodwill -108 -70 Operating profit 1,460 1,962 -26 -28 27
Income EURm 1800 1600 1400 735 687 1200 631 627 565 1000 800 600 885 872 856 400 757 733 200 0 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Net interest income Non-interest income 28
Net interest income EURm 1000 � Slightly reduced average 900 lending volumes during 885 872 800 856 the quarter 700 757 733 � Deposit margins 600 somewhat lower than in 500 Q2 400 � Margins on new loans to 300 the corporate sector 200 gradually increasing 100 0 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 29
Commission income EURm 400 � Falling stock exchange 380 indexes worldwide 360 370 368 361 � Turnover volumes 340 showed a marked 320 322 320 decrease in Q3 300 280 � Commissions from 260 payments continued to 240 increase 220 200 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 30
Commission income EURm 500 55 48 42 400 30 44 81 75 91 84 73 300 79 68 60 56 55 200 117 127 129 103 130 100 130 122 116 113 104 0 -64 -74 -73 -73 -77 -100 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Asset management Payments & deposits Brokerage Lending Other Expenses 31
Trading EURm 180 � Income from trading stable 160 at high level 156 140 � High quality earnings 120 131 128 – Customer driven 100 108 94 revenue stream 80 60 40 20 0 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 32
Income from insurance EURm 200 � Lower premiums - Life 180 185 – Acquired portfolio 160 boosted premiums in Q2 140 142 134 120 129 � Higher claims - General 100 102 80 60 40 20 0 Q3/00* Q4/00 Q1/01 Q2/01 Q3/01 *Negative hurricane impact Q3/00 EUR 10 m 33
Expenses EURm 1000 � Lower costs than in Q2 421 414 418 429 � Continued realisation of 800 synergies 331 � Somewhat lower 600 activity level during the 556 541 529 summer 478 454 400 200 0 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Personnel Other 34
Total IT-related expenses EURm 250 As % of total expenses 2000 22.7% 225 Q1/01 20.2 % 200 202 200 Q2/01 20.7 % 193 175 Q3/01 21.1 % 150 125 100 Q1/01 Q2/01 Q3/01 *Computer operations, service expenses, consultants and personnel 35
Restructuring reserve EURm Originally, Unidanmark 200 Utilised Q2/00 -16 Utilised Q3/00 -16 Utilised Q4/00 - 39 Remaining reserve 129 Originally, CBK 90 Remaining reserve Jan 2001 219 Utilised Q1/01 -18 Utilised Q2/01 -24 Utilised Q3/01 - 7 Remaining reserve Oct 2001 170 36
Loan losses EURm � Specific loan losses EUR 113m: 225 200 100 – Within acquisition finance in 175 Denmark 150 – Limited no. of corporate clients 125 100 113 � General provision EUR 100m 75 – Worsened economic outlook 50 59 45 � 0.33% ytd of total loans 25 22 20 0 Q3/00 Q1/01 Q3/01 General provision 37
Investment earnings EURm Q3/01 Q2/01 Q1/01 Q4/00 Q3/00 Treasury 1 25 68 34 30 Life insurance -54 19 -17 -2 15 General insurance -35 11 -32 -10 38 Other -5 55 2 20 17 Investment earnings -93 110 21 42 100 38
39
Results by business area EURm 471 500 429 400 300 200 93 100 65 50 42 36 35 21 1 0 -4 -1 -24 -49 -100 -200 Retail CIB Asset IB Life* General Treasury Mgmt* Q2/01 Q3/01 *Product result for Asset Management and Life 40
41
Retail Banking operating profit EURm 500 � Stable performance 450 471 460 � Slight decrease in net 429 400 423 interest income due to 350 lower short-term interest 345 rates 300 250 � Net commissions affected by the negative 200 development in the 150 financial markets 100 � Electronic services 50 continue to expand 0 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 42
Retail Banking operating profit by market Retail EURm Banking DK FI NO SE P&B Operating profit 429 101 148 52 127 1 C/I ratio % 56 58 49 61 58 89 RoE % 22 18 35 15 21 5 43
Retail operating profit by market Retail DK FI NO SE P&B EURm Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q Q2 3 Net interest income 784 799 215 235 245 250 98 96 221 212 6 6 Non-interest income 271 301 69 84 68 74 39 37 93 102 2 4 Total income 1,055 1,100 284 319 313 324 137 133 314 314 8 10 Total expenses -592 -606 -166 -178 -154 -157 -87 -84 -183 -180 -7 -7 Profit bef. loan loss 463 494 118 141 159 167 54 49 131 134 1 3 Loan losses -34 -23 -17 -5 -11 -9 -2 -4 -4 -2 0 -2 Operating profit 429 471 101 136 148 158 52 45 127 132 1 1 C/I ratio % 56 55 58 56 49 48 61 63 58 57 88 69 RoE % 22 25 18 24 35 39 15 14 21 23 5 6 44
Retail Banking lending EURbn. End of period 40 35 34.9 34.4 30 25 26.3 26.2 20 21.2 20.9 15 15.9 15.4 10 5 0 Denmark Finland Norway Sweden Q2/01 Q3/01 45
Retail Banking deposits EURbn. End of period 25 20 20.0 20.0 15 16.1 15.7 13.5 13.5 10 8.7 8.6 5 0 Denmark Finland Norway Sweden Q2/01 Q3/01 46
Retail Banking deposits EURbn. End of September 25 20 8.1 15 3.9 2.3 10 5.7 6.2 5.9 1.1 2.8 5 6.1 5.9 5.3 4.8 0 Denmark Finland Norway Sweden Corporate Household - saving accounts Household - current accounts 47
48
CIB operating profit EURm 160 � Stable overall income and cost 140 140 development 120 119 100 � Custody income affected by 93 80 weak equity markets 74 60 � Increase in loan loss 40 provisions 20 0 � EUR 75m of general provision -4 -20 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 49
CIB operating profit by main area Q3 Corporate Shipping & Inter- EURm CIB Division Offshore national Other Markets Profit before 148 80 37 22 9 62 loan losses Loan losses -164 -33 -9 -6 -116 - Country risk 11 - - 10 1 - Equity method 1 - - - 1 - Operating profit -4 47 28 26 -105 62 C/I ratio % 46 50
CIB operating profit by main area Corporate Shipping & Inter- CIB Division Offshore national Other Markets EURm Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Total income 273 275 139 146 44 47 43 52 47 30 110 96 Total expenses -125 -126 -59 -55 -7 -7 -21 -22 -38 -42 -48 -47 Profit bef. loan loss 148 149 80 91 37 40 22 30 9 -12 62 49 Loan losses -164 -50 -33 -2 -9 -12 -6 -11 -116 -25 - - Country risk 11 -10 - - - - 10 -10 1 - - - Equity method 1 4 - - - - - 4 1 - - - Operating profit -4 93 47 89 28 28 26 13 -105 -37 62 49 C/I ratio % 46 46 51
CIB net loan losses EURm Q3/01 Q2/01 Q1/01 Corporate division 33 2 -8 Shipping division 9 12 -16 International division 6 11 0 Aquisition finance 41 25 48 Total 89 50 24 General provision 75 0 0 Country risk -11 10 6 Total 153 60 30 52
CIB lending volume EURbn. End of period 35 30 31.6 30.6 25 20 18.8 18.2 15 10 5 7.3 7.2 4.5 4.2 0 Corporate Division Shipping and International Total offshore Q2/01 Q3/01 53
54
Asset Management, product result EURm 80 � Continued deterioration in 75 75 70 equity markets 68 65 60 � Assets under management 50 down 13% to EUR 87bn 50 40 � Inflows and customer trading down, asset mix 30 28 shifting to fixed income 27 25 20 20 17 � European fund sales 10 surpass Nordic for first time 0 in August Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 -of which operating profit 55
Assets under management, volumes EURbn 120 100 80 42.2 33.2 37.1 60 22.3 21.7 19.5 40 36.0 41.6 30.6 20 0 Q1/01 Q2/01 Q3/01 Investment funds Private banking Investment management 56
Asset structure – Investment Management* Sep 2001 Dec 2000 EUR 75bn EUR 66bn Int'l. fixed Int'l. fixed Nordic income income equities Nordic 10% 6% 20% equities 28% Inter- national Int'l. equities equities 32% 28% Nordic Nordic fixed fixed income income 42% 34% *Gross figures 57
Asset structure – Investment Funds June 2001 Sep 2001 EUR 36.0 bn EUR 30.6 bn Fixed income Fixed funds income 28% funds 35% Equity funds 49% Equity funds 55% Balanced Balanced funds funds 17% 16% 58
Investment Funds volumes and margins Margins % Volumes, End of period, EURbn 1,6 20 18 1,4 18.2 1.44 16 1,2 1.32 14 15.1 1.15 1,0 1.09 1.14 12 1.01 10 0,8 9.8 8 0,6 8.3 0.60 6 0,4 0.5 4 4.2 3.9 0,2 2 1.7 1.4 0 0,0 DK FI NO SE DK* FI NO SE Q2/01 Q3/01 Jan-June Q3/01 * Net margin 59
60
Investment Banking operating profit EURm 14 � Income from equities and 12 equity capital market 12 10 transactions declined 8 due to adverse market 6 conditions 5 4 � Nordic M&A transactions 2 on average smaller 1 2 0 -1 -2 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 61
Investment Banking EURm Q3/01 Q2/01 Equities 17 20 Corporate Finance 10 22 Total revenues 27 42 Total expenses -28 -41 Operating profit -1 1 62
Equity market development Market volume Market index Q3 Change Q3 2001 Q3 vs Q2 2001 EURbn % % Denmark 13 -43 -19 Finland 39 -23 -27 Norway 13 -33 -24 Sweden 88 -24 -20 63
64
Life Insurance and Pensions, product result EURm 30 � Lower premiums in the third 20 23 quarter primarily due to the 10 15 19 portfolio acquisition in second 0 0 5 0 3 -2 quarter -10 -17 -20 � Negative investment earnings -30 due to fall in equity prices -40 -50 -54 -60 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Technical result Investment earnings 65
Life Insurance 2001 2000 EURm Q3 Q2 Q1 Q4 Q3 - Premiums written, net 458 746 684 710 584 - Technical result 5 23 3 0 0 - Investment earnings -54 19 -17 -2 15 - Product result -49 42 -14 -2 15 66
Life insurance and Pensions Q3 EURm Denmark Finland Norway Sweden Other Total Premiums written net 160 165 69 59 5 458 Of which traditional life insurance 145 135 49 30 0 359 unit link 15 30 20 29 5 99 Investment return -355 -96 -70 -320 -7 -847 Benefits 213 -66 11 266 4 428 Expenses -13 -4 -10 -4 -3 -34 Technical result 6 0 -1 2 -2 5 Investment earnings -25 -27 -3 0 1 -54 Product result -19 -26 -4 2 -1 -49 67
Life and Pensions - investments EURbn. End of period 25 � Equities 20 – Predominantly listed equities 3.4 3.1 3.0 2.6 3.1 1.5 1.5 1.2 1.7 – 50/50 Nordic/international 1.2 15 � Bonds 9.0 10.6 8.8 10.5 10 10.8 – ¾ Nordic issuers – Primarily govmn’t & mortgage inst. 5 6.4 5.9 5.5 5.0 � Total portfolio 4.4 0 – Some bias to Danish securities Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Equities Bonds Property Unit linked 68
69
General Insurance, operating profit EURm 50 � Increased premiums 40 38 � Reduced expense ratio 30 20 25 � Higher claims 10 11 11 7 1 � Negative investment earnings 0 -10 due to fall in equity prices -13 -10 -20 -32 -30 -35 -40 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Technical result Investment earnings 70
Combined ratio by main market % 120 115 107 107 100 106 105 101 101 100 100 96 80 60 40 20 0 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Denmark Norway 71
General insurance EURm Q3/01 Q2/01 Q1/01 Premiums gross 470 453 428 Premiums net 379 375 358 Technical interest 27 31 27 Claims -302 -285 -287 Expenses -93 -96 -97 Technical result 11 25 1 Investment earnings -35 11 -32 Operating profit -24 36 -31 72
General Insurance Q3 EURm Denmark Norway TBi Poland Other Total Premiums gross 220 176 56 17 - 470 Premiums, net 198 133 37 11 - 379 Technical interest 11 14 3 0 - 27 Claims -158 -106 -31 - -7 -302 Expenses -47 -27 -13 -4 -2 -93 -4 0 -2 11 Technical result 4 13 Investment earnings -16 -16 3 -2 -4 -35 -1 -2 -6 -24 Operating profit -12 -3 73
General Insurance - investments EURbn. End of period 3 Equities: � 2,5 0.4 0.4 – Predominantly listed equities 0.4 0.4 0.4 1.7 2 1.8 – 50/50 Nordic/international 1.6 1.5 1.4 1,5 Bonds � – 2/3 Nordic issuers 1 – Primarily govmn’t & mortgage 0,5 inst. 0.5 0.4 0.4 0.4 0.4 0 Total portfolio � Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 – Some bias to Danish securities Equities Bonds Property 74
75
Treasury operating profit EURm 90 � Volatile financial markets 80 68 � Reduced equity risk exposure 70 � Negatively affected by weak 60 equity markets 50 40 � Positively influenced by falling 30 35 34 34 interest rates 20 21 10 12 0 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Reclassification effect Q1/01 76
Operating profit by main area Investment & Risk Trading Internal Bank Total Fixed income Equity portfolios portfolios Q3/01 Q2/01 Q3/01 Q2/01 Q3/01 Q2/01 Q3/01 Q2/01 65 -62 -60 89 25 18 Income -2 -2 -2 0 -5 -8 Expenses Profit excl. Investment earnings 20 10 20 10 1 25 63 -64 -62 89 Investment earnings Operating profit 21 35 77
Treasury investment portfolio EURbn. End of period 14 � Equities 13,5 0.9 0.8 – Listed, unlisted & private equity 13 1.0 12.9 12.9 funds 12,5 12.4 0.6 0.7 12 � Bonds 11.9 11,5 11.7 – ¾ Nordic issuers 11 – Primarily govmn´t & mortgage 10,5 inst. 10 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Fixed income Equities 78
79
Balance sheet - key items EURbn, end of period Sep 01 June 01 March 01 Lending 134 135 131 Deposits 81 81 77 Shareholders’ equity 11 11 11 Total assets 231 233 233 Risk-weighted assets 134 135 136 80
Balance sheet structure - assets EURbn End of period 140 134 120 129 100 80 60 40 20 29 28 23 22 22 22 19 15 7 5 0 Lending Interest Loans Assets, Other Other bearing and insurance assets, securities advances banking to credit inst. Q4/00 Q3/01 81
Real estate holdings End of period Book value, EURbn Q3/01 Q2/01 Q1/01 Owner occupied properties* 1.4 1.4 1.4 Shares in real estate holding companies 0.3 0.4 0.4 Other property investments 0.4 0.5 0.5 Investments of the insurance companies 1.9 1.8 1.8 Total 4.1 4.1 4.1 *30.09.01: Finnish companies 0.45, CBK 0.17, Vesta 0.03, Unibank & Tryg-Baltica 0.45, Norbanken 0.31 82
Balance sheet structure – liabilities and equity EURbn. End of period 90 80 81 79 70 60 56 56 50 40 30 33 29 20 21 21 21 19 10 11 11 9 8 0 Deposits Debt Deposits by Other Liabilities, Shareholder´s Other securities in credit inst. liabilities, insurance equity issue banking Q4/00 Q3/01 83
Lending and deposits Lending Deposits EURbn. End of period EURbn 140 140 135 134 131 120 129 120 110 100 100 80 80 81 81 79 77 60 60 67 40 40 20 20 0 0 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 84
Capital adequacy Total capital ratio Tier1 ratio %. End of period % 10 10 9 9 9.4 9.3 8 8 7 7 6.9 6.8 6 6 5 5 4 4 3 3 2 2 1 1 0 0 Dec 00 Sept 01 Dec 00 Sept 01 85
Capital base End of Sep 01 EURm Shareholder´s equity 11,181 Calculated dividend (40% of net profit) -352 Profit not included July–Sep -165 Companies not included in the financial group -23 Shareholder´s equity in the capital base 10,641 Hybrid capital 755 Minority interests 29 Group goodwill -2,090 -84 Other deductions 9,257 TIER 1 CAPITAL TIER 2 CAPITAL (subordinated debt) 4,780 Deductions for investments in insurance companies -1,468 Deductions for other investments -169 CAPITAL BASE 12,394 86
Special feature presentation Q3/01 87
Macroeconomic forecast – evolution of GDP growth outlook 2001 2002 Forecast made in: 05/01 08/01 09/01 05/01 08/01 09/01 USA 1.7 1.7 1.3 3.0 2.7 2.0 Euro area 2.5 1.8 1.6 2.9 2.4 2.1 Denmark 1.3 1.1 1.0 2.0 2.1 1.8 Finland 3.4 1.3 0.5 4.0 3.5 3.0 Norway 1.3 2.3 2.3 2.3 2.0 2.0 Sweden 2.3 1.5 1.2 3.2 2.5 2.0 Nordea estimates 88
What is different Early 90´s Today � Large current account deficit � Large surplus � Poor public sector finance � Solid public sector � Poor price competitiveness � Good competitiveness � High unemployment � Stable labour market � Fragmented and week financial sector � Consolidated and strong financial sector � Leveraged and fragmented industrial sector � Strong industrial sector � Vulnerable real estate market � Consolidated real estate sector � High currency exposure � Limited currency exposure � High interest rates � Low interest rates 89
Loan portfolio by customer group (End of September 01) EUR 134 bn Public sector 2% Consumer 37% Companies 61% 90
Lending to companies by industry (End of September 01) EUR 81bn Shipping Agriculture 7% 4% Real estate 23% Other companies 9% Construction 4% Business service Transport, 10% communication 5% Finance Commerce and 9% services 10% Manufacturing 19% 91
Loan portfolio End of period EUR bn Q3/01 Q2/01 Q1/01 Q4/00 Chg YtD, % Households 50 50 49 49 2 Real estate 19 19 19 19 0 Construction 3 3 3 3 0 Transport, 4 4 4 4 0 communication Commerce and services 8 9 9 8 0 Manufacturing 16 16 15 15 7 Finance 7 9 6 5 40 Business service 8 5 5 4 100 Other companies 9 10 10 12 -25 Agriculture 3 3 3 3 0 Shipping 6 7 8 7 -14 Total 134 135 131 129 4 92
Lending by geographical area (End of September 01) EUR 134bn Asia Latin America 2% 1% USA Non-OECD Nordic countries 2% 1% 88% Other Other OECD 12% 1% The Baltic states and Poland 0.3% Other EU countries 5% 93
Lending to households (End of September 01) Other loans comprise: EUR 50bn Other loans � Consumer credits 25% � Car financing � Overdraft facilities � Credit cards Mortgages 75% 94
Nordea aircraft financing portfolio Geographical distribution based on operator nationality (End of September 01) Total exposure approx EUR 900m 2% 7% 9% Nordic countries Other Europe Far East North America 22% Other 60% 95
Nordea telecom financing portfolio Divided by operators and manufactures (End of September 01) Total exposure approx EUR 6.8 bn Manu- � Exposure reduced by approx facturers EUR 1bn in Q3/01 38% � Vast majority of exposure related to – major Nordic equipment manufacturers – major Nordic telecom operators Operators 62% 96
Nordea shipping portfolio Distribution by type of vessel (End of June 2001) Total exposure approx EUR 5.7bn Other dry cargo Combined � Well diversified portfolio 2% vessels Crude tankers 2% Pure car carries 17% by type of vessel 4% Reefers � Focus on large industrial 5% players Chemical tankers Misc.loans 6% 15% � Exposure split approx Gas tankers 55% / 45% Nordic / Int’l. 6% Cruise Product tankers 6% 11% Liners 7% Ferries Bulkers 10% 10% 97
Provisioning policy Credit monitoring � Customer rating of corporate clients � Common risk classification system � Quarterly review of loan portfolios � Credit review including action plan for troubled credits Provisioning � For loss classified commitments unsecured portion fully provided for � For doubtful rated commitentments provision to cover expected loss � General provision to cover industry and special risk areas � Country risk provision to cover transfer risk based on external rating � Some discrepancies between countries, minimum Nordea level always provided for 98
Problem loans Sep 01 June 01 March 01 Dec 00 EURm End of period Doubtful loans, gross 3,120 3,040 3,059 3,053 Provisions -2,267 -2,122 -2,218 -2,256 Doubtful loans, net 853 918 841 797 Loans with interest deferments 29 35 35 29 Problem loans, total 882 953 876 826 Provisions/doubtful loans, gross (%) 73 70 73 74 Doubtful loans,net/lending (%) 0.6 0.7 0.6 0.6 99
Problem loans by industry (End of Sep 01) EUR 882bn Finance Other companies 0% 19% Transport, Households communication 29% 1% Construction 1% Agriculture 2% Business service 6% Shipping Manufacturing 13% 8% Trade and Real estate services 12% 9% 100
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