Successful penetration of SME segment Profit orientation High ambitions Growth strategy Strong customer-oriented culture Total revenues in Markets related to Retail Operating model corporate clients Increased penetration of Retail � corporates of products from Nordea EURm 70 65 Markets 57 60 56 50 50 � Strong growth in sale of structured products 43 and equity products 40 30 20 10 0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Total revenues from Acquisition Finance and Corporate Finance Revenues from Acquisition Finance � EURm and Corporate Finance up 62% YoY 46 50 in Retail 40 40 Successful penetration of Nordea’s � 30 25 23 23 large corporate customer base 20 10 0 19 Q206 Q306 Q406 Q107 Q207
Further strengthened position within long Profit orientation High ambitions Growth strategy term savings Strong customer-oriented culture Operating model Accumulated net inflow (EURbn) Net inflow in H1 2007 EUR 1.3bn � 35 Outflow in Q2 mainly on institutional clients � 30 Strongest inflow within Private Banking � Approx. 10% of assets are in new and � 25 re-engineered products 20 Strong investment performance � 15 Improved income and result margin � Income margin in Q2 72bps (67bps) 10 � Changed product mix from bonds to equities � 5 In total EUR 165bn in AuM � 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Nordea Average net inflow Nordic peers 20
Improved market position within consumer Profit orientation High ambitions Growth strategy lending and cards Strong customer-oriented culture Operating model YoY Retail consumer lending Consumer lending up 14% � Lending Margin EURbn % � Non-collateralised up 17% 17 � Strong growth in home equity products 4.6 16.9 16 16.4 540,000 new cards issued � 4.0 15.6 15.4 15 � Of which approx. 300,000 credit cards, up 14.9 3.4 43% Q2/Q2 14 2.8 In total 5.9 million cards outstanding � 13 Q2oQ1 2.2 12 Consumer lending up 3% � 1.6 11 Card commission gross up 21% � 10 1.0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Volume Margin 21
Profitability in Life continues to improve Profit orientation High ambitions Growth strategy Strong customer-oriented culture Life product result and 12-month rolling Gross Operating model Written Premiums (GWP) Product result up by 29% Q2/Q2 and � EURm EURm-GWP 16% YoY 80 4,000 Swedish Life market still effected by 70 3,500 � the regulatory changes* 60 3,000 50 2,500 Stable growth in Gross written � premiums 40 2,000 30 1,500 � Strong sales in Denmark and Poland 20 1,000 10 500 0 0 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Product result GWP * Termination of the sale of the ”Kapitalpension” product and a temporary stop for transfer of customer’s insurance capital from one provider to another 22
Profit orientation Strong revenue growth in Nordea Markets High ambitions Growth strategy Strong customer-oriented culture Operating model Total revenues Nordea Markets Customer activity continues at high � EURm level 250 � All segments showing high business 242 242 225 229 activity 200 194 175 � Equity products – driven by securities 180 finance and derivatives activities 150 153 125 � Structured products at all time high 100 Increased cross-selling of Markets � 75 products to SMEs – still room for 50 25 increased penetration 0 Q1/05 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 23
Growth plan in Sweden well on track Profit orientation High ambitions Growth strategy Customer orientation Operating model Number of Gold customers up 6% in Q2 � Gold customers Regional banks in Sweden annualised – accelerating growth rate since launch of growth plan 746 735 725 Growth Plan Sweden focuses on � 719 714 advisory services and product 706 706 segments with growth potential 300 advisors recruited and trained since 2005, mainly � advisors and specialists serving high end segments Initiative during 2006 to extend the opening hours in the � branches 12 new branches and venues has opened up since 2005 � Improved RaRoCar and C/I ratio Q2/Q2 � Underlying revenue growth in Sweden � Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 approx. 16% QoQ excl. ALM- programme (Retail deposit hedge) 24
Growth in revenues from New European Profit orientation High ambitions Growth strategy Markets Strong customer-oriented culture YoY Operating model Total income New European Orgresbank consolidated in income statement as per � Markets* Q2 with revenues of EUR 19m EURm 70 New European Markets accounts for 3% of Group � 60 63 revenues in Q2 50 40 43 Total lending up 68%, excl. Orgresbank 39 � 36 30 31 20 Mortgage lending up 88% � 10 Number of gold customers doubled � 0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Growth ambition in Poland and Baltics � Approx. 40 new branches to be opened in Poland this year and 10-15 in Baltics � Focus in Russia on corporate customers, Nordic � corporate customers and personal customers in high- end segment Long term targets to be decided during autumn � Growth with strict cost and risk management � 25 * Poland, Baltics and Russia. IMB included until Q2 2006. Q3/06 excl. gain from sale of IMB shares EUR 199m. Orgresbank included from Q2 2007.
Profit orientation Updated vision and values to support High ambitions Growth strategy growth strategy Strong customer-oriented culture Operating model Mission The leading Nordic bank, acknowledged for its people Vision creating superior value for customers and shareholders G r e a t c u s t o m e r It’s all about One Nordea Values e x p e r i e n c e s people team Profit orientation - Focus, Speed, Performance Foundation 26
New operating model to support growth Profit orientation High ambitions Growth strategy strategy – implementation on track Strong customer-oriented culture Operating model Banking & Capital Group Services People & Identity Household & Corporate Nordic Banking Market Products & Technology Segment Account Products Group Corporate Cash Management & Payments Centre Capital Market Products Group Credit & Risk Private Banking Control Savings Products & Asset Management Institutional & Group Legal & Savings & Life International Banking Compliance Products 27
Outlook 2007 � The strong revenue growth is expected to continue in the second half of 2007 � As previously stated cost increase for the full-year 2007 is expected to be of the same magnitude as in 2006, ie 4-5% � Incl. Orgresbank and planned investments in Russia the cost increase is expected to be approx. 6%. � Gap between revenue and cost growth for the full year 2007 is expected to be 3-4%-points excl. banking operations in Russia � Incl. Nordea’s Russian banking operations the corresponding gap is in the area of 2- 3%-points � The quality of the credit portfolio remains strong. Lower recoveries during the latter part of the year are likely to result in actual net charges in the coming quarters 28
Summary – Second Quarter 2007 Consistent delivery on organic growth strategy – on track with financial targets � � Revenues up 8% � Profit before loan losses 11% � Risk adjusted profit up 17% � Gap between revenue and cost increase of 2.6%-points in H107 � RoE 19.5% Double digit increase in business volumes � � Lending up 15% � Deposits 11% � Consumer lending up 17% Investments in future growth � � Net 550 employees recruited excl. Orgresbank in 12 months � Investments in New European Markets Well controlled expense growth � � Cost increase 5.9% - 5.1% excl. banking operations in Russia and the increase in variable salaries 29
CFO Presentation
Income statement summary EURm H1/07 H1/06 Chg % Net interest income 2,047 1,884 9 Net fee and commission income 1,083 1,028 5 Net gains/losses on items at fair value 609 502 21 Equity method 19 45 -58 Other income 72 75 -4 Total operating income 3,830 3,534 8 Staff costs -1,177 -1,095 7 Other expenses -774 -739 5 Depreciation -49 -44 11 Total operating expenses -2,000 -1,878 6 Profit before loan losses 1,830 1,656 11 Loan losses 41 120 Operating profit 1,873 1,780 5 Net profit 1,517 1,405 8 31
Income statement summary EURm Q2/07 Q1/07 Chg % Q2/06 Net interest income 1,043 1,004 4 957 Net fee and commission income 548 535 2 521 Net gains/losses on items at fair value 318 291 9 223 Equity method 9 10 -10 25 Other income 39 33 18 54 Total operating income 1,957 1,873 4 1,780 Staff costs -592 -585 1 -552 Other expenses -391 -383 2 -372 Depreciation -25 -24 4 -21 Total operating expenses -1,008 -992 2 -945 Profit before loan losses 949 881 8 835 Loan losses 28 13 89 Operating profit 978 895 9 927 Net profit 816 701 16 740 32
Net interest income YoY Up 9% � Significant contribution from deposit � EURm 1,043 1,006 1,004 Volumes and margins � 979 1,000 957 Savings accounts up 15% � 900 Total lending up 16% - � compensating for margin pressure 800 Negative impact from ALM strategy 700 � – retail deposit hedge 600 Negative effect will gradually disappear � 500 Q2oQ1 400 Up 4% � 300 Positive contribution from deposits � 200 Continued lending volume growth � 100 Double digit growth annualised � 0 Lending margins largely stable � Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Day count EUR 10m and � Orgresbank EUR 13m 33
Robust volume growth continues in business areas YoY Q2oQ1 Lending, total* 16% 5% – Mortgage lending 14% 4% – Consumer lending** 14% 3% – of which non collateralised lending 17% 1% – SME lending 16% 5% – CIB lending* 27% 15% Deposits, total* 16% 7% – Household deposits 9% 5% – SME deposits 14% 7% – CIB deposits* 32% 8% * Excl. Repos 34 ** Retail consumer lending (collateralised + non-collateralised consumer lending)
Change in net interest income EURm YoY Q2oQ1 Volume driven 176 29 -Lending volumes 133 18 -Deposit volumes 43 11 Margin driven -77 5 -Lending margins -130 -4 -Deposit margins 53 9 Other, net 64 5 Total 163 39 35
Net commission income YoY EURm Up 5% � 600 Lending-related commissions � 549 548 increased 18% reflecting strong 535 500 521 497 business activity 400 Savings-related commissions gross � up 9% 300 AM commissions up 6% following growth in AuM � Life commissions gross up 23% � Brokerage 7% 200 � Card commissions gross up 15% � 100 Commission expenses up due to the launch of � credit cards to gold customers Payment commissions up 6% � 0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Price pressure on giro payments � Q2oQ1 Up 2% � Card commission gross up 21% � 36
Net commission income – business trends The development in net commission income should be seen in light of business trends and Nordea’s strategy within the savings area � Retail funds � Outflow in Nordic Retail Funds partly into savings accounts with attractive rates � Savings accounts � The strong growth in savings accounts, EUR 4.2bn in 12 months drives a substitution effect from commissions related savings products to net interest income (Net interest income up 8%) � Structured products � The successful penetration of Markets related products drives a substitution effect from commissions related savings products to Net gains/losses at fair value (Net gains/fair value up 21%) 37
Breakdown of commission income - gross EURm 400 360 359 360 356 320 338 335 325 319 301 280 240 200 197 195 187 183 181 160 177 177 171 120 106 80 100 98 91 88 87 87 86 40 59 49 45 41 39 37 32 36 0 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Savings related Payments related Lending related Other Of which Asset Mgmt Of which Cards 38
Customer business drives increase in net/gains losses YoY EURm Up 21% � 300 Up 14% in Business Areas 290 � 277 273 250 Increased penetration of Nordea’s SME customer � base 220 High activity in household segment, mainly equity � 200 205 products and structured products Q2oQ1 150 Up 9% � 100 High revenues maintained in Nordea Markets – in � particular with Retail customers 50 High investment return in Life � Strong performance in Group Treasury – supported 33 � 28 3 19 18 0 by OMX gain Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Business Areas Treasury and eliminations 39
Increased revenues from net/gains losses in Business areas Net/gains losses, EURm Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 Retail 107 89 90 75 88 CIB 108 124 102 81 77 Asset Mgmt 6 3 6 7 4 Life 69 57 80 51 61 BAs 290 273 277 205 220 Group Treasury 43 40 44 8 7 40
Operating income YoY Up 8% � EURm 1,957 2,000 1,898 Continued growth in Net interest 1,873 � 1,780 1,734 income – up 9% 1,800 1,600 Double-digit lending growth compensating for � margin pressure 1,400 Increased deposit volumes and improved margins � 1,200 Net commissions income up 5% � 1,000 Revenues from savings increasingly appearing on � 800 all key lines in the income statement Strong increase in Net gains/losses – 600 � up 21% 400 Continued successful penetration of the SME 200 � segment 0 Q2oQ1 * Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Up 4% � Net interest income up 4%, increased business � volumes and stable margins Net gains/losses up 9% � * Excl. gain from sale of IMB shares 41
Revenue growth in Nordea 3,830 EURm +27 +79 +25 +83 +296 +79 3,534 +3 Lending, Savings: Markets Transaction Other Income Poland & Income volumes AM, Life accounts H1 06 Baltics H1 07 and margins and savings accounts 42
Expenses YoY EURm Costs up 6.5% � 1,016 992 1,008 945 5.9% excl. Orgresbank 928 1,000 � 19 25 24 Prioritised investments in growth areas � 900 21 23 Excl. Orgresbank and variable salaries up 5.1% � 800 391 391 383 372 355 Staff costs up 7.5% 700 � 600 Increase in FTE’s � 606 592 585 500 552 550 Wage inflation � Variable salaries up 400 � Q2oQ1 300 200 Expenses largely unchanged excl. � 100 Orgresbank 0 Orgresbank adding expenses in Nordea group of � Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 EUR 12m Staff costs Other expenses Depreciation 43
Staff costs 7.5% 1% EURm 1,5% +11 1,177 1.8% +16 3.2% +20 +82 +35 No. of recruited FTEs: approx. 1,095 2,700* No. of FTEs that has left: approx. 2,200* Staff costs Wage Higher Increase in Training and Staff costs H1 06 FTEs, net other costs increases variable H1 07 salaries and related to the profit sharing organic growth strategy * Excl. Orgresbank 44
Number of FTEs 32,500 FTEs Q2/07 Q2/06 Chg YoY % Retail 17,948 17,671 277 2 2,969 30,000 2,798 CIB 4,872 3,306 1,566 47 1,679 1,773 1,600 of which P&B 1,857 1,577 280 18 27,500 of which Orgresbank 1,113 0 1,113 AM & Life 2,068 2,054 14 1 25,000 BAs 24,888 23,031 1,857 8 27,894 27,717 27,601 27,584 27,473 GPT 4,830 5,033 -203 -4 22,500 Group Staffs 1,145 1,137 8 1 Group Functions 5,975 6,170 -195 -3 20,000 Total 30,863 29,201 1,662 6 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Nordea excl. New European Markets New European Markets Excl. New European Markets number employees up less than 1 % � Increased number of sales related employees and falling number of employees in processing and � staff units 45
Gap excluding operations in Russia Income growth Banking operations in Russia Q2/07: Orgresbank revenues EUR 19m, % � 9.6 10 expenses EUR 12m 8.5 9 7.5 8 H1/06: IMB revenues EUR 22m � 7 6 5 4 3 2 1 0 Q1 H1/07 Q2 Expense growth GAP, %-points % % 5 6.3 7 5.9 4.2 5.4 6 4 5 3 2.6 4 3 2 1.2 2 1 1 0 0 Q1 H1/07 Q2 Q1 H1/07 Q2 46
Loan losses , net H1 EURm 20 Positive at EUR 41m reflecting � continued recoveries and limited new 0 provisions -7 -13 Stable credit quality in all markets � -23 -20 -28 -31 -40 -55 -60 -82 -80 -89 -100 -120 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 47
Net profit YoY EURm Up 8% � 876 900 Effective tax rate in the first-half � 816 year was 19% 800 740 701 Revaluation of the deferred tax asset in 673 � 700 Finland Reduction of corporate tax rate in Denmark 600 � down from 28% to 25% effective from 1 Jan 2007 500 Q2oQ1 400 Up 16% � 300 Tax expenses lowered by appox. EUR 30m � due to the tax change in Denmark 200 100 0 Q2/06 Q3/06 * Q4/06 Q1/07 Q2/07 *Excl. gain from sale of IMB shares 48
Growth in risk adjusted profit in line with long-term target EURm H1/07 H1/06 Chg % Total income 3,830 3,534 * Non recurring items - -51 Total operating expenses -2,000 -1,878 Expected losses -190 -185 Standard tax -443 -396 Risk adjusted profit 1,197 1,024 17 Cost of Equity 8.0% (7.5%) -404 -340 Economic profit 793 683 16 Economic capital, EURbn 10.3 9.2 13 * Gain from sale of shares in Asiakastieto (EUR 29m) and IMB equity method (EUR 22m) 49
Profitability maintained at high level % H1 24.1 25 22.7 Widened gap between RoE and � 21.5 20.6 RaRoCar demonstrates capital 19.5 20 efficient growth 18.0 Higher liability margins � 15 10 5 0 * 2005 2006 H1 07 ** RoE RaRoCar * Excl. gain from sale of IMB shares ** Risk-adjusted return on capital at risk 50
Return on risk weighted assets, rolling 4 quarters benefits from Basel II % EURbn 2.2 200 2.0 193 180 189 185 185 180 1.8 174 1.63 160 169 162 1.62 159 1.6 153 140 1.61 1.61 1.47 1.46 1.45 1.44 1.42 1.41 1.4 120 1.26 1.2 100 1.0 80 0.8 60 0.6 40 0.4 20 0.2 0 0.0 * Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Basel II RWA Return on RWA Basel I Return on RWA Basel II * Excl. gain from sale of IMB shares 51
Strong increase in risk-adjusted EPS 0.7 0.58 0.6 0.54 0.5 0.46 0.40 0.4 0.3 0.2 0.1 0 Reported EPS, EUR EPS, risk adjusted, EUR H1 06 H1 07 52
Approval of Basel II impacting RWA EURbn RWA according to Basel I up 4% � 200 193 200 176 189 185 185 Q2/Q1 to EUR 200bn 180 180 Basel II reduces RWA with 12% to 160 � EUR 176bn 140 120 Floor rules gives reported RWA of � 100 EUR 189bn – a reduction of 6% 80 60 40 20 0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 RWA Basel I RWA Basel II without floors RWA Basel II 53
Improved capital position % Tier I 7.1% according to Basel II � 8 7.7 7.1 7.1 6.9 Step one in Basel II implementation 6.8 6.8 6.8 � 7 Core capital base EUR 13.5bn � 6 Tier I excl. floor rules 7.7% � 5 Tier I according to Basel I 6.8% � 4 3 2 1 0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Tier I Basel I Tier I Basel II excl. floor rules Tier I Basel II incl. floor rules 54
Capital management � Economic Capital up 13% to EUR 10.3bn � Increased credit risk exposure following increased lending of 16% � Risk adjusted return (RaRoCar) continues to improve to 24.1% (22.6%) High level of RoE (19.5%) � � Capital to finance organic growth and add on acquisitions. Additional excess capital will over time be distributed to shareholders 55
Business trends
Total lending EURbn 230 222 214 220 201 199 191 200 189 182 175 180 170 161 155 156 160 148 149 147 147 146 140 120 100 80 60 40 20 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Corporate Housing loans Other loans Public sector 57
Household mortgages, volumes and margins EURbn % 85 1.6 80 1.5 79.0 75 76.3 1.4 74.9 70 71.8 1.3 69.4 65 66.9 65.2 1.2 60 63.0 60.1 55 1.1 57.8 56.6 54.7 50 52.9 1.0 49.6 45 48.2 46.8 0.9 44.2 40 42.7 0.8 35 0.7 30 25 0.6 20 0.5 15 0.4 10 0.3 5 0 0.2 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 58
Retail consumer lending, volumes and margins EURbn % 4.8 16.9 16 16.4 4.3 15.6 15.4 14.9 14 3.8 14.2 13.9 13.8 13.5 13.2 12.9 12.7 12 12.5 3.3 12.4 12.4 12.2 12.1 12.2 2.8 10 2.3 8 1.8 6 1.3 4 0.8 2 0.3 0 -0.2 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 59
Lending to corporates (SME), volumes and margins EURbn % 1.4 84.9 80 81.1 78.4 1.3 70 73.2 73.4 70.9 70.0 67.9 1.2 65.3 64.0 60 61.0 58.5 58.1 57.3 57.3 57.4 56.7 1.1 56.3 50 1.0 40 0.9 30 0.8 20 0.7 10 0 0.6 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 60
CIB lending, volumes and margins* EURbn % 30 1.5 28 1.4 27.5 26 1.3 24 1.2 24.5 23.6 23.3 22 1.1 22.6 22.6 22.3 21.7 21.7 21.4 21.4 20 21.2 1.0 20.8 20.3 18 0.9 19.0 18.4 18.1 18.0 16 0.8 14 0.7 12 0.6 10 0.5 8 0.4 6 0.3 4 0.2 2 0.1 0 0.0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 * Excl. Markets, New European Markets 61
Total deposits EURbn 133 126 126 130 119 119 116 120 113 108 105 106 105 110 98 97 96 95 100 93 92 91 90 80 70 60 50 40 30 20 10 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Of which household deposits 62
Retail deposits, households, volumes and margins EURbn % 55 2.4 54.1 50 51.4 50.7 2.2 50.1 49.6 45 47.1 46.9 47.0 2.0 45.7 44.1 43.8 42.9 42.3 40 41.7 1.8 41.3 40.7 40.4 40.2 1.6 35 1.4 30 1.2 25 1.0 20 0.8 15 0.6 10 0.4 5 0.2 0 0.0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 63
Retail deposits, SME, volumes and margins EURbn % 40 1.6 39.9 37.5 37.3 35 1.4 34.8 34.7 33.4 32.6 30 1.2 31.5 30.5 30.1 29.4 28.9 28.8 28.4 28.3 26.7 25 1.0 26.3 26.2 20 0.8 15 0.6 10 0.4 5 0.2 0 0.0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 64
CIB, deposits, volumes and margins* EURbn % 30 0.60 28 28.9 0.55 26 27.1 0.50 24 25.0 0.45 22 23.2 22.3 22.1 21.8 20 21.2 0.40 21.0 20.4 18 0.35 18.5 18.0 17.9 16 0.30 15.4 14 15.2 14.9 14.4 0.25 13.3 12 10 0.20 8 0.15 6 0.10 4 0.05 2 0 0.00 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 * Excl. Markets, New European Markets 65
Structural Interest Income Risk (SIIR) EURm, annualised effect on NII* Q2/07 Q1/07 Q2/06 Increasing market rates, 100bp 249 220 175 Decreasing market rates, 100bp -279 -249 -189 • Increasing SIIR following higher deposit volumes *Approx. end of period SIIR is defined as the effect on net interest income (NII) in the next 12 months if market rates change by one percentage point. Figures are asymmetrical as interest rates on deposits from customers cannot be reduced below 0%. Figures are based on maturity and reprising structure, and the effect going forward will be subject to management decisions and the competitive situation in the market. 66
Assets under management YoY EURbn Up 15% or EUR 21bn 165 � 180 163 158 Value appreciation accounting 50% of the 149 � 160 144 increase 140 Net inflow the remaining 50% � Assets in Nordic Private Banking � 120 up 28% or EUR 10bn 100 Q2oQ1 80 AuM up 1.4% � 60 Value appreciation and net outflow � 40 20 0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Nordic Retail funds European Fund Distribution Nordic Private Banking International Wealth Management Institutional clients Life & Pension 67
Net inflows EURbn H1 5 Net inflow EUR 1.3bn 3.3 � 4 2.6 Strong inflow in Nordic Private � 1.8 Banking, EUR 2.9bn 2.0 3 -1.3 Q2 2 Net outflow EUR 1.3bn � 1 Loss of a few large mandates within � -1 Institutional clients and European Fund Distribution -2 Minor outflow from Nordic Retail funds to � savings accounts -3 Another strong quarter in Nordic Private � Banking -4 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Nordic Retail funds European Fund Distribution Nordic Private Banking International Wealth Management Institutional clients Life & Pension 68
Retail Banking profit before loan losses Q2/Q2 Up 15% � EURm � Increased penetration of SME customers 700 Revenues up 9% 650 � 679 600 NII up 10% 601 � 595 595 588 550 � Significant contribution from deposits 500 450 � Increased revenues from mortgage book Q2/Q1 400 Commissions up 9% � 350 � Lending and savings commissions 300 250 Expenses up 5% � 200 C/I ratio down to 51% 150 � 100 Key ratios Q2/07 Q2/06 FY 2006 50 0 C/I ratio, % 51 53 53 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 RaRoCar, % 28 25 26 69
Retail Banking Denmark Finland Norway Sweden EURm Q2/07 Chg Q2/07 Chg Q2/07 Chg Q2/07 Chg 393 10% 395 20% 188 5% 391 9% Total income -189 6% -174 5% -106 6% -217 0% Total expenses Profit before loan losses 204 15% 221 34% 82 4% 174 23% Operating profit 206 4% 234 44% 80 -6% 163 12% Q2/07 Q2/06 Q2/07 Q2/06 Q2/07 Q2/06 Q2/07 Q2/06 RaRoCar, % 27 26 40 33 18 19 26 22 C/I ratio, % 48 50 44 50 56 56 55 61 Lending, bn 55.6 47.5 42.1 37.7 33.3 27.3 52.8 49.1 Deposits, bn 23.9 21.4 26.6 25.0 16.7 14.3 26.8 23.9 � Adjusting for the effect of the the Retail deposit hedge revenue growth in Sweden was 16% 70
CIB profit before loan losses Q2/Q2 EURm Up 11% � High business activity � 180 187 Revenues up 13% � 174 160 Poland and Baltics up 42% 158 157 � 140 145 Shipping, Offshore and Oil divisions up 26% � FID revenues up 10% 120 � CBD largely unchanged adjusted for IMB and a � 100 single large transaction in 2006 Expenses up 16% 80 � Flat adjusting for increase in variable salaries and � 60 investments in New European Markets 40 20 Key ratios Q2/07 Q2/06 FY 2006 0 * C/I ratio, % 50 49 49* Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 RaRoCar, % 24 22 22* * Excl. gain from sale of IMB shares 71
CIB CBD FID SOOSD P&B EURm Q2/07 Chg* Q2/07 Chg Q2/07 Chg Q2/07 Chg 42% 99 88 63 44 Total income -15% 10% 26% -36 -3% -38 12% -11 0% -28 40% Total expenses Profit before loan losses 63 -20% 50 9% 52 33% 16 45% Operating profit 59 -49% 50 9% 52 33% 16 78% Q2/07 Q2/06 Q2/07 Q2/06 Q2/07 Q2/06 Q2/07 Q2/06 RaRoCar, % 21 24 88 90 35 41 21 19 36 29 43 43 17 22 64 65 C/I ratio, % Lending, bn 14.5 12.7 2.8 1.5 10.2 9.1 6.2 3.7 7.4 7.5 15.6 10.3 5.9 4.5 2.7 1.9 Deposits, bn * Adjusted for IMB 72
Orgresbank Income statement consolidated from EURm Q2 2007 � Q2 Net interest income 13 Net fee and commission income 2 Focus on Russian corporate � Net gains/losses on items at fair value 3 customers, Nordic corporate Other income 1 customers and personal customers in Total income 19 high-end segment Staff costs -7 � Long term targets to be decided during Other expenses -3 autumn Total expenses -10 Growth with strict cost and risk � Profit before loan losses 9 management Loan losses 0 Operating profit 9 73
Asset Management product result Q2/Q2 Product result up 26% � EURm Improved revenue margin and stable 120 � expense margin 110 113 100 103 Strict cost management � 100 90 Q2oQ1 80 82 Product result up 3%, annualised � 78 70 12% 60 Improved asset mix � 50 40 30 20 10 Key ratios Q2/07 Q2/06 0 C/I ratio, % 48 52 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 AuM, EURbn 164.9 143.9 74
Life insurance, product result Q2/Q2 Up 29% � EURm Stable growth in Gross written � 90 premiums 80 Strong sales in Denmark and Poland � 70 74 Improved investment result � 67 60 61 Moderate cost development � 58 50 52 Swedish Life market still effected by � 40 the regulatory changes 30 Key ratios 20 Q2/07 Q2/06 10 Inv return, % 0.8 -0.5 0 Financial 11 9 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 buffers, % 75
Group Treasury, operating profit EURm YoY Strong investment earnings � 80 Supported by gain in OMX � Successful money market positions in � 60 42 Group funding Q2/Q1 32 32 Strong operating result despite � 40 increasing interest rates 34 20 21 39 28 27 10 6 0 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Group Investment Group Funding 76
CRO Presentation
Nordea’s IRB model approved Corporate and Institutions included in 2007 � Approx. 50% of credit portfolio � Retail portfolio gradually to be included under IRB foundation � Credit Risk Foundation Foundation Foundation Advanced Corporate Foundation Foundation Foundation Advanced Institutions Standardised IRB IRB IRB Retail 2007 2008 2009 2010 Operational Risk Standardised Standardised Standardised Standardised 78
Gradual reduction of RWA through 2010 Credit risk RWA Corporate & Inst. Portfolio* Total credit risk Total RWA Basel 1 (13)% (13)% (22)% floor Basel 1 floor Market risk (12)% Market risk (16)% Op risk (31)% (36)% Market risk Market Basel 1 FIRB IRB AIRB (35)% Op risk risk Retail (41)% Op risk Retail Portfolio** (22)% (77)% (77)% Basel 1 FIRB/SA IRB AIRB Basel 1 FIRB/SA IRB AIRB Retail Retail Basel 1 Standard IRB Retail AIRB * Corporate portfolio includes counterparty risk in Basel II (FIRB, IRB Retail and AIRB), calculated as market risk according to Basel 1 rules ** Retail includes all household exposures and SME corporates with exposure under 100 EURt 79
Nordea expects to have excess capital after full implementation of Basel II in 2010 � 20% expected 20% reduction in RWA Implications for Tier I capital reduction in RWA 16.0 250 by 2010 incl. Pillar 13.5 2 effects 14.0 200 200 � Reducing required 12.0 10.9 160 capital by approx 10.0 150 EUR 2.6bn by 2010 EUR bn EUR bn 8.0 6.8% 6.8% 100 6.0 50 4.0 2.0 0 0.0 Basel I 2007 2007 H1 Pro H1 2007 2010 (2) H1 forma (1) 1) RWA based on full introduction of Basel II (2010) with portfolios as of end June 2007 2) Required capital based on 20% lower RWA and same capital ratios as of end June 2007 80
Capital Adequacy Situation- Overview H1 2007 RWA Credit risk 160.4 IRB Foundation 90.3 Standardised 66.9 Basel I reporting entities 3.2 RWA Market risk 4.3 Trading book VaR 0.8 Trading book non-VaR 3.3 FX risk, other 0.1 RWA Operational risk 11.0 Total RWA Basel II 175.6 Total RWA, incl. floor 189.4 Basel I RWA 200.4 81
Implications of Basel II for Nordea Reduction of required capital over time � Enhanced business processes � Efficient processes for credit granting � Focus on capital efficiency � Improved risk management processes based on � Creates Improved data quality � value Unified processes � Risk based pricing � Efficient credit risk mitigation (collateral) � Alignment of Regulatory and Economic Capital � 82
Nordea’s model for pricing of credits � Income � Lending margin � Fees and commission � Cost of Capital � Company ratings – point in time � Economic Capital � Defined cost of Equity � Expected losses - historical data on default statistics � Current assessment of expected losses is on average 17bp � Operating expenses � Hurdle pricing to achieve Economic Profit 83
Managing pricing over the economic cycle Avoid long maturities with fixed pricing � Price step-ups � Pricing grids based on rating or covenants � Low hold levels on unsatisfactorily priced � deals - syndications % 5 years interest rate 7 6 5 4 3 2 1 0 00-01-03 00-05-03 00-09-03 01-01-03 01-05-03 01-09-03 02-01-03 02-05-03 02-09-03 03-01-03 03-05-03 03-09-03 04-01-03 04-05-03 04-09-03 05-01-03 05-05-03 05-09-03 06-01-03 06-05-03 06-09-03 07-01-03 07-05-03 84
Credit spreads likely to increase when economic cycle turns Increasing default rates � Increasing cost of capital � Improved risk adjusted prices expected � � Pricing power in lending is contra cyclical Rating distribution, corporate and sovereign customers 30.000 25.000 Exposure (EUR mill.) 20.000 15.000 10.000 5.000 - S 6+ 6 6- 5+ 5 5- 4+ 4 4- 3+ 3 3- 2+ 2 2- 1+ 1 1- 0+ 0 0- Q1 2007 Q4 2006 85
Loan portfolio by customer category* EURbn 123 119 120 113 110 105 105 101 100 97 100 93 91 90 85 84 84 83 82 80 79 78 80 80 70 76 74 71 68 60 66 65 63 60 58 50 56 55 53 50 49 48 40 46 44 30 20 23 23 22 21 21 20 20 19 19 18 17 17 17 16 16 10 15 15 14 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Corporate lending Housing loans Other loans * Excluding public sector 86
Loan portfolio by customer group End Q2/06, EUR 198.8bn End Q2/07, EUR 229.6bn Public Public sector sector 2.1% 1.8% Household Household customers customers 44.8% 45.0% Companies Companies 53.5% 52.9% 87
Lending to household customers End of Q2/07 EUR 102.6bn Other loans comprise � Other loans Consumer credits � 22.9% Investment credits � Car financing � Overdraft facilities � Credit cards � Home equity credits � Housing loans 77.1% 88
Lending to companies by industry End of Q2/07 EUR 123.1bn Other 7% Renting,Consulting and other services Real estate 11% 27% Finance 11% Construction 3% Agriculture & Fishing 5% Transp. & Communication 5% Manufacturing 16% Shipping & Offshore 5% Commerce and services 10% 89
Loan portfolio in figures EURbn Q2/07 Q1/07 Q4/06 Q3/06 Q2/06 Household customers 102.6 98.7 96.4 91.9 89.4 Real estate 32.5 31.6 30.7 28.6 28.0 Construction 3.9 3.6 3.4 3.3 3.6 Transport, communication 6.3 6.7 5.9 5.9 5.8 Trade and services 11.8 12.6 11.1 10.8 10.4 Manufacturing 19.4 17.5 15.0 14.6 14.5 Finance 13.2 12.7 12.7 8.4 9.6 Renting, Consulting and other services 13.9 12.4 12.5 12.5 12.0 Other companies/public sector 13.1 13.9 14.2 13.7 14.5 Agriculture & Fishing 6.7 6.6 6.4 6.1 5.8 Shipping & Offshore 6.1 5.9 5.7 5.3 5.2 Total 229.6 222.2 214.0 201.1 198.8 90
Lending by geographical area End of Q2/07 EUR 229.6bn Latin America Asien 0.6% USA 0.9% 1.1% Nordic countries and Other OECD P&B 0.4% 92.5% Other 7.5% Other non OECD 0.6% EU countries 3.9% Nordic countries and P&B, EURbn � Denmark 62.5 � Sweden 59.9 � Finland 44.5 � Norway 39.6 P&B 6.2 � 91
Impaired loans and total allowances EURm Q2 2007 Q4 2006 Q2 2006 Impaired loans, gross, individually assessed 1,352 1,616 1,606 Allowances for individually assessed loans 659 764 899 Impaired loans, net, individually assessed 693 852 707 Impaired loans, net / lending (%) 0.30 0.40 0.36 Allowances, individually assessed / Impaired loans, gross, (%) 49 47 56 Allowances for collectively assessed loans 282 354 367 Total allowances / Impaired loans, gross individually assessed 70 69 79 (%) Total allowances 941 1,118 1,266 Provisions for off balance sheet items 132 40 45 Total allowances and provisions 1,073 1,158 1,311 92
Impaired loans EURm. End of Q2/07 Gross Provisions Net Household customers 329 125 204 Manufacturing 312 181 131 Trade and services 190 88 102 Other companies 37 37 0 Real estate 103 42 61 Renting, Consulting and other services 180 102 78 Agriculture & Fishing 33 15 18 Construction 45 18 27 Transport, communication 63 23 40 Public sector 3 1 2 Shipping 6 3 3 Financial operations 43 16 27 Credit institutions 8 8 0 Total 1.352 659 693 93
Loan losses YoY EURm Continued flow of recoveries and low � 299 new provisions 330 Stable credit quality in all markets � 180 126 101 86 58 30 -13 -28 -54 -82 -120 -89 -129 -140 -140 -147 -270 -381 -420 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Gross Reversals Net 94
Economic capital
Economic capital (EC) EURbn 11 10 EC per business area 10.3 9.9 9.6 (EURm) Q2/07 9 9.3 9.2 9.0 8 Retail Banking 6,356 7 CIB 2,118 6 Asset Mgmt 107 5 Life 1,157 4 Treasury 456 3 2 GPT 119 1 Other 3 0 Total 10,315 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 96
Economic capital – distribution End of Q2/07 Operational Life risk risk 1% Other Treasury Asset Mgmt & 9% 1% 4% Life Business risk 12% 10% Market risk CIB 15% 21% Retail Credit risk 62% 65% 97
Facts & figures
Facts & Figures, content � Business areas Page 100 � Balance sheet Page 129 � Market position Page 132 � Appendix Page 133 99
Retail Banking
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