Net commission income YoY Up 12% � EURm Savings commissions up 19% � 600 � Asset Mgmt commissions up 22% 529 500 � Brokerage up 38% 507 484 469 � Custody services up 11% 453 400 Payment related commissions up 6% � � Cards up 16% 300 Lending commissions up 13% � 200 QoQ 100 Down 4% from seasonally high Q4 � 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 23
Breakdown of commission income - gross EURm 400 360 320 338 335 319 306 280 281 240 200 160 177 177 175 171 162 120 80 98 90 88 87 82 40 59 51 48 41 32 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Savings related Payments related Lending related Other Of which Asset Mgmt Of which Cards 24
Customer business drives increase in net/gains losses YoY EURm Net gains/losses in BA’s increased by 60% � 200 to EUR 210m 210 180 190 Strong success in selling Markets products � 160 159 in Retail and CIB 140 134 120 131 Strong growth in customer driven business � 100 � structured products 80 80 � strong and stable core business in F/X and 60 fixed income trading 40 32 20 Significant result contribution from � 0 Treasury -16 -20 -20 -43 -40 QoQ -60 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Increase in Treasury and Markets � Business areas Treasury and eliminations Stable contribution from Life � 25
Strong development in Nordea Markets EURm � Leveraging Nordea’s customer base 700 Customer driven growth � 600 Focus on customer solutions rather � 500 than product push 400 � strong concepts in risk management and asset-liability management 300 � increased capabilities in derivatives 200 F/X and fixed income still the � 100 strongest profit contributors 0 � structured products increasing 1 2 3 4 5 6 0 0 0 0 0 0 Risk committed to customer activities 0 0 0 0 0 / � 1 2 2 2 2 2 Q Cost base largely unchanged since � Total income Total costs 2001 Operating profit � reduced no. of FTEs and IT consolidation 26
Group Treasury � Strong profit both in Group Investment and Group Funding � mainly driven by successful position taking � reduced net interest income Group Investment Group Funding EURm Q1/06 Q1/05 Q1/06 Q1/05 Q1/06 Q1/05 Net interest income 20 39 -18 -11 38 50 Net gains/losses 40 -15 36 9 4 -24 Other income 0 9 1 9 -1 0 Income 60 33 19 7 41 26 Expenses -11 -11 -4 -4 -7 -7 Operating profit 49 22 15 3 34 19 27
Continuous improvement in net/gains losses within business areas – Treasury more volatile Net/gains losses, EURm Q1/06 Q4/05 Q3/Q5 Q2/05 Q1/05 Retail 83 64 47 57 48 CIB 87 83 74 51 76 Asset Mgmt 8 10 6 3 4 Life 32 33 32 23 3 Subtotal business areas 210 190 159 134 131 Group Treasury 40 -31 -21 68 -15 Eliminations -8 -12 1 12 -1 Total 242 147 139 214 115 28
Total operating income YoY Up 11% � Increased focus on top line growth � EURm � business model is paying off 1,800 Increased income from advisory services � 1759 1696 1694 1,600 � long term savings 1601 1582 1,400 � Markets related products Strong volume growth – compensating for � 1,200 pressure on lending margins 1,000 Strong increase in commission income and � 800 net/gains losses 600 QoQ 400 Up 4% � 200 Strong sales for Markets products � 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Volume growth compensating pressure on � lending margins 29
Expenses YoY Up 3% - ambition to capture opportunities � EURm in growth markets 956 1,000 933 � Life costs up 39% 914 902 896 31 23 900 35 34 31 � Asset Mgmt costs up 19% 800 � Poland & Baltics up 11% 393 367 700 364 353 345 Staff costs up 5% � 600 � increase of FTEs by approx. 325 500 543 532 520 515 515 � general wage increases and higher variable 400 salaries 300 Other costs up 4% � 200 � higher business volumes 100 0 QoQ Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Down 2% � Staff costs Other expenses � staff costs increased 2% Depreciation � other costs down 7% reflecting lower IT and marketing costs 30
Number of FTEs Shift towards increasing advisors and � 32,000 sales related FTEs in BA’s and falling no. 28,925 29,052 28,824 28,725 28,730 of FTEs in processing and staff units 28,000 24,000 FTEs Q1/06 Q1/05 Chg YoY Q4/05 20,000 Retail 17,399 17,230 169 17,373 16,000 CIB 3,349 3,218 131 3,326 AM & Life 2,079 1,829 250 2,033 12,000 BA’s 22,827 22,277 550 22,732 8,000 GPT 5,076 5,254 -178 5,046 4,000 Group Staffs 1,149 1,194 -45 1,147 0 Total 29,052 28,725 327 28,925 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 31
Cost/income ratio continues downwards % Continued down to 53% in Q1 � 70 60 � income up 11% 60 56 � costs up 3% 53 Continuous efficiency � 50 improvements 40 Delivery in line with financial targets � 30 20 10 0 2004 2005 Q1/06 32
Loan losses YoY Positive loan losses following a � EURm continued flow of several recoveries 60 Low new provisions � 40 20 Positive loan losses for 8 th � consecutive quarter 0 -6 -7 -23 -20 -31 QoQ -40 Loan losses positive as reversals � -60 exceeded new provisions -80 � writeback of groupwise provisions -101 -100 � Overall credit quality strong in all -120 markets Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 33
Impaired loans Net impaired loans as per cent of total lending 18bp � EURm. End of period Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Impaired loans, gross 1,712 1,820 1,994 2,006 2,097 Reserves -1,371 -1,481 -1,545 -1,581 -1,657 Impaired loans, net 341 339 449 425 440 Provisions/impaired loans, gross,% 80 81 78 79 79 Impaired loans, net/lending,% 0.18 0.18 0.25 0.24 0.26 34
Net profit YoY EURm Up 34% � 800 Operating profit up 25% � 700 705 � Lower effective tax rate 665 600 563 500 QoQ 506 495 400 Up 31% � 300 � Operating profit up 15% 200 One-off tax expenses in Q4 � 100 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 35
Continuous increase in earnings per share EUR 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 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 36
Return on equity % RoE well above 2007 target of >17% � 20 20.0 18 Profitable growth strategy delivers � 18.0 results 16 15.8 � Active capital management 14 12 10 8 6 4 2 0 2005 Q1/05 Q1/06 37
Capital position % Tier 1 ratio 6.8% � 8 Profitable volume growth � 7 7.0 7.0 � Total capital ratio at 9.4% 6.8 6.8 6.8 6 Authorisation from AGM to purchase � 5 up to 5% of no. of shares 4 3 2 1 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 38
Capital position in Basel II environment – according to QIS 5 study Quantitative Impact Study (QIS 5) � % measured effect on RWA in new Basel II 10 framework – pillar one only 9.7 9 � conducted by the Basel Committee based 8 on Q3 2005 7 Pillar one comprises credit, market and � 7.0 6 operational risks 5 New rules reduces RWA in Nordea with � approx. 30% after full implementation 4 � Retail mortgages 3 � Corporates 2 Based on lower RWA Tier 1 ratio � 1 increases to 9.7% (7.0%) – increased 0 flexibility Q3/05 Pillar two (decided in negotiations with � Reported Tier 1 ratio QIS 5 study FSA) will increase the capital requirement 39
Risk-weighted assets (RWA) YoY EURbn RWA up 14% � 200 Total lending up 12% � 180 174 160 169 162 159 153 140 QoQ 120 100 RWA up 3% � 80 � Lending up 1% 60 Increase in off balance sheet � 40 business 20 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 40
Return on risk weighted assets, annualised EURm % 200 2.0 180 1.8 1.77 174 160 169 1.6 162 1.53 159 153 140 1.39 1.4 1.29 120 1.20 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 RWA Return on RWA (net profit, annualised) 41
Business trends Business trends
Total lending EURbn 200 191 189 182 180 175 170 161 160 156 155 149 147 148 147 146 140 120 100 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 Corporate Housing loans Other loans Public sector 43
Household mortgages, volumes and margins* EURbn % 70 1.6 65 1.5 65.8 64.5 60 1.4 62.6 60.4 55 1.3 57.7 56.3 54.5 50 1.2 52.6 50.0 48.9 48.2 45 1.1 45.7 44.3 40 1.0 35 0.9 30 0.8 25 0.7 20 0.6 15 0.5 10 0.4 5 0.3 0 0.2 Q3/03 Q4/03 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q1/03 Q2/03 Q1/04 * Volumes and margins restated as volumes in Boligkredit moved from consumer lending to mortgage lending 44
Retail consumer lending, volumes and margins* EURbn % 16 4.8 14 4.2 14.2 13.9 13.8 13.5 13.2 12.9 12 12.7 3.6 12.5 12.4 12.4 12.2 12.2 12.1 10 3.0 8 2.4 6 1.8 4 1.2 2 0.6 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 Retail consumer lending Retail consumer margin * Both collateralised (incl. home equity products) and non collateralised lending, volumes and margins restated as volumes in Boligkredit moved from consumer lending to mortgage lending 45
Lending to corporates (SME), volumes and margins EURbn % 70 1.8 70.9 70.0 65 1.7 67.9 65.3 64.0 60 1.6 61.0 58.5 55 58.1 1.5 57.4 57.3 57.3 56.7 56.3 50 1.4 45 1.3 40 1.2 35 1.1 30 1.0 25 0.9 20 0.8 15 0.7 10 0.6 5 0.5 0 0.4 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 46
CIB lending, volumes and margins* EURbn % 30 1.5 28 1.4 26 1.3 24 1.2 22 1.1 22.6 22.5 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 * Excl. Markets, Poland and Baltics 47
Total deposits EURbn 120 116 113 110 108 105 106 105 100 98 97 96 95 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 Of which household deposits 48
Retail deposits, households, volumes and margins EURbn % 50 2.4 45 47.0 47.1 46.9 2.2 45.7 44.1 43.8 42.9 42.3 40 2.0 41.7 41.3 40.7 40.4 40.2 1.8 35 1.6 30 1.4 25 1.2 20 1.0 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 49
Structural Interest Income Risk (SIIR) EURm, annualised effect on NII* Q1/06 Q4/05 Increasing market rates, 100bp 162 154 Decreasing market rates, 100bp -167 -175 Reduced sensitivity following completion of new ALM strategy in 2005 � Numbers influenced by volume increases in Q1 2006 � Downside sensitivity reduced in Q1 2006 � *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 repricing structure, and the effect going forward will be subject to management decisions and the competitive situation in the market. 50
Retail deposits, SME, volumes and margins EURbn % 40 1.6 35 1.4 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 51
CIB, deposits, volumes and margins* EURbn % 24 1.2 23.2 22 1.1 22.1 21.2 20 1.0 21.0 20.4 18 0.9 18.5 18.0 17.9 16 0.8 15.4 15.2 14 0.7 14.9 14.4 13.3 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 * Excl. Markets, Poland and Baltics 52
Assets under management YoY EURbn Up 18% � 154 160 148 144 137 � High inflow - new product 140 131 35 34 33 launches 32 120 31 23 22 100 21 Strong equity markets 21 � 7 21 7 7 9 80 8 9 8 7 8 8 Asset shift towards equities � 36 60 34 33 31 29 40 45 20 42 41 36 38 QoQ 0 � Up EUR 6.8bn to EUR 154.4bn Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Investment performance � Nordic retail funds Nordic private banking International wealth mgmt European fund distribution continued to improve Institutional clients Life & pensions � highest Morningstar rating among peers in Sweden 53
Net inflows QoQ EURbn Net inflow EUR 3.4bn, 9% � 5 annualised 3.4 4 � launch of the new more flexible 3.0 retail funds 3 1.0 High activity level in Private � 0.9 2 0.6 Banking and in Retail network 1 0 Solid net inflow of EUR 0.8bn � in Institutional customers -1 following improved -2 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 performance Nordic Retail funds Nordic Private Banking International Wealth Mgmt European Fund Distribution Institutional clients Life & pensions 54
Retail operating profit before loan losses YoY EURm � Double digit volume growth 600 Increased no. of core customers � 550 577 556 544 Savings related and structured products � 500 505 main engines behind profitable growth 450 468 400 � Lending margins still under pressure 350 � Improved efficiency - C/I ratio continues 300 to drop 250 200 150 100 50 Key ratios Q1/06 2005 0 C/I ratio, % 53 55 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 RoEC, % 33 29 55
CIB operating profit before loan losses YoY EURm Strong result for all divisions 180 � 160 169 � Lending increased in Shipping as well as in Poland and the Baltics 140 144 A number of large and complicated � 132 120 125 122 transactions in Q1 100 Strong result in Markets � 80 � customer driven sales of structured products 60 40 20 Key ratios Q1/06 2005 0 C/I ratio, % 46 52 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 RoEC, % 24 23 56
Asset Management product result YoY EURm Up 39% � 100 Higher AuM � 96 90 93 � New product launches with higher 80 margins 77 70 67 Economies of scale � 65 60 Q1 largely unchanged compared to � 50 seasonally strong Q4 40 30 20 10 Key ratios Q1/06 2005 0 C/I ratio, % 50 52 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 AuM, EURbn 154.4 147.6 57
Life insurance, product result YoY EURm Net written premiums up 23% � 70 Unit link premiums up 97% � 65 60 � Now accounting for 40% of total premiums 56 56 � Business model continues to deliver 50 52 48 � Increased financial buffers 40 � decreasing liabilities following increased interest rates 30 20 10 Key ratios Q1/06 2005 0 Inv return, % 0.2 9.9 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Financial 9.4 7.7 buffers, % 58
In summary Q1 2006 � Nordea ahead of financial targets Growth strategy and business model pays off – profitable growth in all � business areas Gap between income and cost growth 8 percentage points � Operating profit up 25% � Net profit up 34% � � RoE 20% - well above 2007 target >17% Nordea increasingly confident to reach the gap of at least 5 percentage � points between revenue and cost growth 59
Facts & figures
Facts & Figures, content � Credit quality Page 62 � Economic capital Page 71 � Business areas Page 74 � Balance sheet Page 103 � Market shares Page 106 � Appendix Page 114 61
Credit quality Credit quality
Loan portfolio by customer category* EURbn 100 101 100 97 90 93 91 85 80 84 84 83 82 80 79 78 70 66 65 60 63 60 58 56 55 50 53 50 49 48 46 40 44 30 20 20 20 19 19 18 17 17 17 16 16 15 15 10 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 Corporate lending Housing loans Other loans * Excluding public sector 63
Loan portfolio by customer group End Q1/05, EUR 170.1bn End Q1/06, EUR 190.7bn Public Public sector sector 2.1% 2.0% Household customers Household 45.1% Companies customers Companies 52.9% 44.9% 53.0% 64
Lending to household customers End of Q1/06 EUR 86.0bn � Strong growth Other loans Other loans comprise 23.5% � consumer credits � investment credits � car financing � � overdraft facilities � credit cards � home equity credits Housing loans 76.5% 65
Lending to companies by industry End of Q1/06 EUR 100.8bn Shipping & Offshore Construction 5% 3% Agriculture & Fishing Real estate 6% 27% Transport and communication 6% Finance 9% Manufactoring Renting, consulting 14% and other services 10% Trade and services Other companies 10% 11% 66
Loan portfolio in figures EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Household customers 86.0 84.6 81.7 78.9 75.3 Real estate 26.8 26.2 25.6 25.1 24.7 Construction 2.9 2.9 3.1 2.6 2.9 Transport, communication 5.8 5.6 5.1 5.6 4.9 Trade and services 9.9 9.9 9.9 9.8 9.4 Manufacturing 14.0 13.4 12.6 12.9 12.7 Finance 8.7 10.5 14.6 12.5 12.4 Renting, Consulting and other services 10.4 9.6 6.1 5.7 5.7 Other companies/public sector 15.1 14.6 12.8 12.0 12.3 Agriculture & Fishing 5.7 5.8 5.8 5.6 5.8 Shipping & Offshore 5.4 5.3 4.8 4.4 4.0 Total 190.7 188.4 182.1 175.1 170.1 67
Lending by geographical area End of Q1/06 EUR 190.7bn Asia 0.9% USA Latin Am erica 1.0% 0.6% Nordic countries and P&B Other non OECD 93.0% 0.5% Other Other OECD 7.0% 0.4% Other EU countries Nordic countries and P&B, EURbn 3.6% � Denmark 51.4 � Finland 39.8 � Norway 30.2 � Sweden 52.8 � P&B 3.4 68
Impaired loans EURm. End of Q1/06 Gross Provisions Net Household customers 431 -260 171 Real estate 134 -108 26 Construction 48 -36 12 Transport, communication 57 -52 5 Trade and services 193 -153 40 Manufacturing 357 -330 27 Finance 24 -19 5 Renting, Consulting and other services 132 -116 16 Other companies 162 -140 22 Public sector 7 -2 5 Agriculture & Fishing 153 -142 11 Shipping & Offshore 14 -13 1 Total 1,712 -1,371 341 69
Loan losses YoY EURm Positive loan losses following a � 192 200 157 156 continued flow of several recoveries 150 92 91 Low new provisions � 100 50 Positive loan losses for 8 th � 0 consecutive quarter -6 -7 -23 -50 -31 -100 -97 -101 QoQ -123 -150 -163 Loan losses positive as reversals � -200 -215 exceeded new provisions -250 -258 -300 � writeback of groupwise provisions Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 � Overall credit quality strong in all Gross Reversals Net markets 70
Economic capital Economic capital
Economic capital (EC) EURbn 10 9 EC per business area Q1/06 9.0 9.0 8.9 8.8 8 8.3 Retail Banking 5.4 7 CIB 1.9 6 Asset Mgmt 0.2 5 Life 1.0 4 Treasury 0.4 3 2 Other 0.1 1 Total 9.0 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 72
Economic capital – distribution End of Q1/06 Treasury Asset Mgmt Other Life risk Operational 4% & Life 1% 1% risk Business 13% 9% risk 11% CIB Market risk Retail 21% Credit risk 16% 61% 63% 73
Retail Banking Retail Banking
Retail Banking lending and deposit volumes Lending, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Denmark 45.5 45.1 43.2 41.3 38.5 37.4 36.0 35.5 Finland 36.4 35.6 34.8 33.8 33.0 31.6 30.4 29.5 Norway 26.0 25.2 24.3 23.3 21.8 20.4 19.9 19.9 Sweden 46.5 46.1 45.2 43.3 44.0 42.6 40.9 40.0 Deposits, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Denmark 20.5 20.3 20.6 19.3 18.1 18.3 17.8 17.8 Finland 24.1 24.8 23.9 24.0 23.4 23.7 22.7 22.7 Norway 13.4 12.9 12.5 11.9 11.2 10.6 10.5 10.5 Sweden 21.8 22.4 21.3 20.6 20.8 21.8 20.8 20.1 75
Retail Banking breakdown of lending Denmark, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate 18.2 18.1 17.0 16.1 14.7 14.3 13.7 13.8 Household mortgages 20.3 19.6 18.8 17.9 17.2 16.8 16.4 15.9 Consumer lending 5.8 5.8 5.8 5.7 5.5 5.3 5.2 5.1 Finland, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate 16.9 16.4 16.2 15.9 15.7 14.7 14.0 13.6 Households mortgages 15.5 15.2 14.8 14.2 13.6 13.3 12.8 12.4 Consumer lending 4.0 3.9 3.8 3.8 3.7 3.6 3.6 3.5 76
Retail Banking breakdown of lending Norway*, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate 12.3 12.0 11.5 11.1 10.6 10.4 10.3 10.4 Household mortgages 12.8 12.4 11.9 11.4 10.5 10.1 9.6 9.3 Consumer lending 0.9 0.9 0.8 0.8 0.7 0.6 0.6 0.6 Sweden, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate 23.5 23.5 23.2 22.2 22.9 21.6 20.5 20.4 Household mortgages 18.3 18.0 17.4 16.6 16.6 16.4 15.9 15.2 Consumer lending 3.4 3.4 3.3 3.3 3.3 3.4 3.3 3.3 * Norway restated, volumes in Boligkredit moved from consumer lending to mortgage lending 77
Retail Banking breakdown of deposits Denmark, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate 7.8 7.8 8.0 7.2 6.8 7.2 7.1 7.2 Households, current 3.1 3.2 3.1 3.1 2.9 2.9 2.9 2.9 accounts Households, savings 9.5 9.4 9.5 9.0 8.4 8.1 7.8 7.7 accounts Finland, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate 7.0 7.2 7.0 7.2 6.9 7.0 6.8 6.8 Households, current 9.9 10.4 10.4 10.3 9.9 9.6 9.5 9.5 accounts Households, savings 7.2 7.1 6.6 6.6 6.5 7.1 6.4 6.4 accounts 78
Retail Banking breakdown of deposits Norway, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate 7.7 7.4 6.9 6.3 6.2 5.7 5.6 5.7 Households, current 2.0 1.8 1.7 1.7 1.4 1.4 1.4 1.4 accounts Households, savings 3.7 3.7 3.9 3.8 3.6 3.5 3.5 3.4 accounts Sweden, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate 10.1 11.0 9.6 9.4 9.5 10.6 9.3 9.2 Households, current 5.0 5.0 5.0 4.8 4.9 4.9 4.9 4.7 accounts Households, savings 6.7 6.3 6.8 6.5 6.4 6.3 6.5 6.3 accounts 79
Retail Banking margins % Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Lending to SME’s 1.00 1.04 1.06 1.09 1.13 1.13 1.13 1.19 Mortgages, households* 0.75 0.76 0.81 0.85 0.92 0.93 0.85 0.92 Consumer loans, 3.66 3.74 3.81 4.04 4.07 4.18 4.05 4.08 households* Deposits, SME’s 0.88 0.85 0.83 0.89 0.86 0.92 0.94 0.90 Deposits, households 1.72 1.63 1.67 1.62 1.55 1.58 1.50 1.38 * Margins restated as volumes in Boligkredit moved from consumer lending to mortgage lending 80
Payments & transactions Payments & transactions
82 Mill. E-banking customers, all customers 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Feb-00 June- Oct-00 Feb-01 June- E-banking customers Oct-01 Feb-02 June-02 Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-06 Feb-06 Mill. 10 15 20 25 30 35 40 45 50 55 0 5 Q1/00 Q3/00 Q1/01 Q3/01 E-banking payments Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06
83 Mill. Cards, all customers 0.0 1.0 2.0 3.0 4.0 5.0 Jan-01 May-01 Sept-01 Issued debit and credit cards Jan-02 May-02 Sept-02 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 100 120 140 160 180 Mill. 20 40 60 80 0 Q1/01 Q3/01 Q1/02 Q3/02 Card payments Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06
Payment transactions, households Mill. 180 160 140 120 100 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 Manual transactions Payments ATM Card payments Cash withdrawal ATMs Direct debit E-banking payments 84
Payment transactions, households Mill. Q1/06 2005 2004 2003 2002 2001 Manual transactions 27.7 100.1 103.9 112.5 125.3 141.0 Payterminals 5.8 19.7 23.6 27.1 31.7 34.3 Card payments 158.4 603.6 527.8 459.9 395.5 333.5 Cash withdrawal ATM 39.3 181.7 190.4 197.4 204.4 207.2 Direct debit 26.9 101.3 98.5 86.1 81.5 78.5 E-banking payments 46.5 157.8 139.3 117.3 97.6 78.2 Total 304.7 1,164 1,084 1,000 936 873 85
Corporate and Institutional Banking Corporate and Institutional Banking
CIB lending and deposit volumes and margins Lending, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate Banking Division 11.9 11.1 10.9 12.0 12.8 10.8 11.3 12.1 Financial Institutions Division 2.0 1.7 1.8 2.0 2.0 1.4 1.6 2.1 International and Shipping Division 8.6 8.5 8.1 7.7 6.5 5.9 6.1 6.1 Poland and Baltic 3.4 3.3 2.8 2.5 2.3 2.4 2.0 1.8 Total* 32.1 32.4 32.2 32.5 30.9 26.6 24.5 26.4 Margins**, % 0.93 0.96 0.91 0.86 0.94 0.98 0.97 0.97 Deposits, EURbn Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Corporate Banking Division 6.6 7.0 6.3 8.0 8.9 9.1 7.4 6.9 Financial Institutions Division 10.4 10.9 8.6 8.8 11.1 9.0 7.5 8.1 International and Shipping Division 4.3 4.3 3.6 3.6 3.2 3.0 3.0 3.9 Poland and Baltic 1.8 1.8 1.5 1.4 1.3 1.3 1.2 1.2 Total* 25.7 26.8 23.3 24.7 26.7 24.9 20.8 22.0 Margins**,% 0.37 0.40 0.39 0.40 0.37 0.38 0.41 0.36 * Incl. Markets volumes ** Excl. Markets and Poland and Baltic 87
Nordea operations in Poland and the Baltic countries End of Q1/06 Estonia Latvia Lithuania Poland Total Customers 46,100 33,700 25,400 334,700 1,168,900* Branches/salespoints 10 12 10 41 73 Number of FTEs 266 253 172 828 1,528 Total assets, EURm 1,101 928 653 1,599 4,281 Lending, EURm 966 943 730 1,388 4,027 Deposits, EURm 280 355 165 968 1,768 Market share, lending, % 10.6 % 7.5 % 6.2 % 1.4 % Market share, deposits, % 4.5 % 3.6 % 2.2 % 1.0 % Operating profit, EURm 3 4 0 3 8** Country position, overall 3 4 5 19 * Incl. Polish Life customers ** Difference compared to summary of country result is explained by booking of provisions 88
Asset Management & Life Insurance Asset Management & Life Insurance
Breakdown of AuM by market and channels Fund sales Retail funds* through Private Institutional Life & Total by Q1/06 (sold through third-parties Banking customers Pensions market own distribution) EURbn 59.4 Denmark 17.2 - 15.0 9.8 17.6** 33.5 Finland 6.7 - 14.5 4.1 8.5** 11.5 Norway 1.9 - 1.5 3.4 4.7** 30.1 Sweden 18.7 - 5.3 2.8 3.5** 0.9 19.3 Europe - 6.5 8.8 2.4 North 0.6 - - - 0.6 - America 6.5 45.1 154.4 23.0 35.3 44.5 * All funds targeted at Nordic Retail segment. ** Includes EUR 4.8bn in pension pools products 90
Asset Management - margins YoY Bps Income margin 12% up following a � 66 65 70 continued high activity level in all 58 58 57 60 major segments 50 35 40 33 Improved result margin following � 28 27 25 30 unchanged cost margins 20 10 0 -10 -20 -19 -20 -20 -20 -20 -30 -40 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Income margin Operating expenses margin Result margin 91
Asset structure* Q1/05 Q1/06 Int'l. fixed Int'l. fixed income income 13% 13% Nordic Nordic Nordic equities Nordic fixed equities fixed 13% income 15% income 43% 47% Int'l. Int'l. equities equities 27% 29% *Average AuM for Asset Management activities excl. Nordic Private Banking activities, in Q1 this was EUR 114bn 92
European fund distribution EURbn 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 -1,000 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Inflow AuM 93
Life - breaking out profit drivers Fee based on size of life provisions in “with profit” companies – DK, FI, SE � Fee contribution Profit-sharing from the Norwegian business (existing model, change pending) � 25% of surplus/deficit from cost result in DK, 100% from FI and SE � Contribution from cost result Profit-/loss-sharing in Norway � 25% of surplus/deficit from risk result in DK, 100% from FI and SE � Contribution from risk result Profit-/loss-sharing in Norway � Inv. return on Investment return from separated shareholders’ equity (DK) � shareholders’ equity Other profits Health and accident result, holding company result � Unit-linked Net unit-linked result including unit-linked cost/risk result � Retail commission and distribution cost Commissions paid to Retail Banking less distribution cost in Retail Banking � (standard 55% of commissions paid) 94
Life - profit drivers EURm Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Traditional insurance Fee contribution/profit sharing 36 33 43 35 30 Contribution from cost result -1 -1 0 0 1 Contribution from risk result 7 10 7 2 5 Inv. return on Shareholders Equity 0 1 3 4 3 Other profits 5 6 7 5 3 Total Profit Traditional 47 49 60 46 42 Total Profit Unit linked 13 10 9 11 10 Estimated distribution cost in Retail -4 -3 -4 -5 -4 Total product result 56 56 65 52 48 Of which income within Retail 30 29 24 19 22 Key figures Premiums written, net of reinsurance 972 1,081 577 645 789 Hereof from Traditional business 582 607 404 458 590 Hereof from Unit-linked business 390 474 174 187 198 95
Life – net written premiums by market End of Q1/06 Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 EURm Denmark 237 296 222 210 230 Norway 236 147 90 104 195 Finland 241 273 164 212 260 Sweden 151 254 68 49 65 Other 107 111 33 70 38 Total 972 1,081 577 645 788 96
Life, investments EURbn Equities � 35 � predominantly listed equities 30.5 29.9 29.0 28.4 30 � 1/3 Nordic, 2/3 international 27.1 25 Bonds � � ¾ Nordic issuers 20 � primarily govmn’t & mortgage inst. 15 10 5 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Equities Bonds Real Estate Unit linked Alternative investments 97
Life - asset allocation Total, EURbn Equities, % Q1/06 Q4/05 Q1/06 Q4/05 Denmark 13.6 13.7 26 23 Finland 8.2 8.0 21 21 Norway 4.4 4.2 17 15 Sweden 3.3 3.1 4 2 Total 29.5 29.0 20 19 98
Life - solvency situation End of Q1/06 Required Actual Solvency Solvency in % of EURm solvency solvency buffer requirement Denmark 490 584 94 119 Finland 228 711 482 311 Norway* 146 311 166 214 Sweden** 67 141 73 209 * Excluding unit linked companies ** Nordea Life Sweden I 99
Life – solvency sensitivity End of Q1/06 Denmark Finland Norway Sweden Solvency in % of requirement 119 311 214 209 Equities drop 12% 117 238 214 201 Interest rates down 50bp 118 338 214 236 Interest rates up 50bp 120 281 214 165 100
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