Net commission income YoY: EURm 388 388 500 379 � Down 3% 366 47 353 61 47 40 reflecting mainly lower – 44 88 400 brokerage income 95 88 87 88 35 partly compensated by Asset – 28 35 20 200 Mgmt and payments 300 24 194 191 195 179 QoQ: 200 � Up 2% � AuM up 6% to EUR 113bn 129 100 120 114 108 104 high net inflows – strengthening of equity – 0 markets -76 -80 -88 -84 -94 � Payment commissions -100 improved Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 card payments up 8% – Asset management Payments & deposits Brokerage Lending Other Expenses 24
Trading YoY: EURm 180 � Increased by 7% 160 � Leading Nordic provider of 157 155 140 derivatives and debt capital 120 130 130 125 market services 100 � High quality earnings 80 – customer driven revenue 60 stream 40 QoQ: 20 � Largely unchanged reflecting 0 maintained activity level Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 25
Total income YoY: � Maintained income level despite difficult markets EURm – negative currency effect of 1% 6000 � Net interest income down 2% 5,670 5,639 5000 – pressure on deposit margins following lower interest rates 4000 – compensated by increase in mortgage lending 3000 � Commission income down 3% – brokerage reduced 2000 – strong net inflows within Asset Mgmt – continued growth in payment 1000 commissions � Increased trading income 0 2002 2003 � Other income includes non-recurring items in 2003 26
Expenses – underlying development EURm YoY: 4000 3,745 � Reported expenses down 2% 3,673 3500 3,666 – personnel expenses increased 3,464 3000 by 1% 2500 – other expenses decreased 8% 2000 � Underlying expenses down 6% – profit sharing 1500 – new business, Poland 1000 – higher restructuring costs 500 – higher variable salaries – f/x effects 0 2002 2003 27
Expenses QoQ: EURm 973 993 1000 � Expenses increased by EUR 46 448 917 902 881 92m in Q4 of which: 416 397 363 350 800 profit sharing EUR 46m – Start-up IBM JV EUR 30m – 600 � Variable salaries and restructuring costs increased 545 539 531 520 511 EUR 12m 400 � Shift of EUR 12m between personnel and other due to 200 IBM JV 0 � Underlying costs unchanged Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Personnel Other Profit sharing 28
Development of FTEs FTEs 2003 2002 40000 Retail 18,407 20,300 35000 CIB 2,102 2,444 34,271 33,879 32,949 30000 32,227 30,761 AM & Life 1,796 1,866 25000 GPT 6,772 7,710 20000 Other 1,684 1,951 15000 Total 30,761 34,271 10000 Change -10% 5000 Outsourced/ +1,321 0 insourced Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Underlying -6% change End of period 29
Loan losses EURm YoY: 300 246 � Loan loss ratio 0.25% in 2003 236 229 221 219 � Loan losses concentrated to 200 Norwegian retail portfolio 98 92 89 84 � Large part relates to fish 76 100 farming 0 � Pan Fish shares valued at zero -100 QoQ: -132 -138 -143 -145 -154 -200 � Loan loss ratio 0.23% in Q4 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Gross Reversals Net 30
Investment earnings, banking EURm YoY: 100 � Increased EUR 48m 90 � Gains on fixed income 80 portfolio in H1 81 70 � Gains on equity portfolio in H2 60 50 QoQ: 40 41 30 � Equity portfolios performed 33 29 well 27 20 10 � Positive contribution also from fixed income portfolios 0 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 31
Operating profit, Life insurance YoY: EURm 200 � Substantially Increased profit in 2003 175 150 � Gradual implementation of 149 changed business model 125 � Higher investment return 100 75 – 5.8% in 2003 (0.2% in 2002) – financial buffers increased 50 QoQ: 25 2 0 � Maintained profit level 2002 2003 32
Income statement summary EURm 2003 2002 Change % Total income 5,639 5,670 -1 Total expenses -3,673 -3,745 -2 Loan losses, net -363 -261 Equity method 57 52 Profit before inv. earnings and insurance 1,660 1,716 -3 Investment earnings, banking 170 122 Operating profit, life insurance 149 2 Operating profit, general insurance - -122 Goodwill depreciation -167 -171 Operating profit 1,812 1,547 17 33
Real estate holdings reduced 2003 � Write-down of EUR 115m in Q4 � Divestment of residential property and owner-occupied � Expected gain of approx. EUR 300m in properties in Denmark 2004 – net financial effect of real estate disposals � Sale of shares in Nordisk expected to be a gain of approx. EUR 200m Renting and Citycon � Divestment of 97 offices in Book value. EURbn 2003 2002 Finland, Norway and Sweden Owner occupied properties 0.4 1.2 2004 Non owner occupied properties 0.1 0.2 � Further properties in Finland sold Shares in real estate companies 0.2 0.4 � Letter of intent signed regarding remaining Total 0.7 1.8 properties 34
Net profit EURm 1500 � Increased by 68% 1,490 � Operating profit up 17% 1200 � Deferred tax income of EUR 300m included in Q3/03 900 887 � Write-down of real estate 600 included at year-end, EUR 115m 300 � Allocation to pension fund in 2002 (EUR 255m) 0 2002 2003 35
Key figures Earnings per share Return on equity (excl. goodwill) EUR % 30 0.25 25 0.20 20 0.15 15 0.10 10 0.05 5 0.00 0 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 EPS 2003 EUR 0.51 RoE 2003 16.7% RoE adjusted to standard tax and 14.5% EPS 2003 adjusted to standard tax EUR 0.43 for real estate write-down and for real estate write-down 36
37 Q 0.1 0.2 0.3 0.4 0.5 0.6 0.7 EUR 1 / 0 2 0 0 Earnings per share – 12 months rolling 0 Q 2 / 2 0 0 0 Q 3 / 2 0 0 0 Q 4 / 2 0 0 0 Q 1 / 2 0 0 1 Q 2 / 2 0 0 1 Q 3 / 2 0 0 1 Q 4 / 2 0 0 1 Q 1 / 2 0 0 2 Q 2 / 2 0 0 2 Q 3 / 2 0 0 2 Q 4 / 2 0 0 2 Q 1 / 2 0 0 3 Q 2 / 2 0 0 3 Q 3 / 2 0 0 3 Q 4 / 2 0 0 3
Increased dividend proposed � Per share, EUR 0.25 � Total, EURm 712 � Pay-out ratio (of the net profit, target >40%) 48% � Dividend yield (calculated on share price Dec 30, 2003) 4.2% � Ex dividend date 1 April � Record date 5 April � Payment date 14 April 38
Balance sheet - key items Change, 12 2003 2002 EURbn months % Lending 145.6 145.7 0 Deposits 95.6 94.2 1 Shareholders’ equity 12.2 11.9 2 Total assets 262.2 249.6 5 Risk-weighted assets 134.4 134.7 0 End of period 39
Lending and deposits Lending Deposits EURbn EURbn 160 100 96 140 95 94 149 93 147 147 146 146 91 80 120 100 60 80 40 60 40 20 20 0 0 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 End of period 40
Capital position Tier 1 ratio � Approx 2.8% of outstanding shares % 10 repurchased by end 2003 9 8 � Implementation of IAS19/RR29 7 (pensions) from 2004 7.3 7.1 6 – reduction of equity of EUR 183m 5 – reduction of Tier 1 by approx. 15bp 4 3 � New authorisation to purchase up 2 to 10% of the total no. of shares 1 suggested 0 2002 2003 End of period 41
Result by business area EURm 500 400 428 395 300 200 100 100 92 48 60 43 44 35 62 0 -111 -100 -200 -268 -300 Retail CIB Asset Mgmt* Life* Group Group Treasury Functions *Product result for Asset Management and Life and Eliminations Q3/03 Q4/03 Figures are disclosed and consolidated using end of period and average currency rates in conformity with the ordinary statutory reporting. Previously, fixed planning rates were used. Historical 42 information has been restated accordingly.
Retail Banking operating profit EURm � Strong sales 500 450 � Increase in payment transactions 428 400 � Loan losses in Retail Banking 395 350 376 Norway 354 345 300 � Improved RoE 250 200 150 100 Key ratios 50 Q4/03 Q3/03 C/I ratio, % 55 56 0 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 RoE, % 26 24 43
Retail Banking, lending and deposit margins Quarterly averages % 2.5 � Stable lending margins 2.3 2.1 � Stable deposit margins 1.9 – supported by ”hedges” 1.7 1.5 1.3 1.1 0.9 0.7 0.5 2 2 2 2 3 3 3 3 0 0 0 0 0 0 0 0 / / / / / / / / 1 2 3 4 1 2 3 4 Q Q Q Q Q Q Q Q Lending to corporates Lending to personal customers Deposits from corporates Deposits from personal customers 44
CIB operating profit EURm 150 � Income picked up in Q4 141 � Maintained high activity in 131 120 Markets 107 100 90 � Continued low loan losses 92 60 30 Key ratios Q4/03 Q3/03 0 C/I ratio, % 54 56 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 RoE, % 15 13 45
Asset Management product result EURm 60 � Strong sales and result 60 � Net inflow of EUR 5.8bn Q4 50 48 – net inflow in 2003 EUR 12.5bn 40 � AuM up 6% to EUR 113bn Q4 41 38 – up 18% from end 2002 30 31 20 Key ratios Q4/03 Q3/03 10 C/I ratio, % 56 60 0 AuM, EURbn 113 107 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 46
Life Insurance, product result EURm 60 � Stable result development � Changed business model key 50 52 to reduced volatility 48 44 40 � Improved investment return 43 financial buffers stable on Q3 – 30 20 22 Key ratios Q4/03 Q3/03 10 Inv return, % 0.7 0.4 0 Financial 4.7 4.6 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 buffers*, % 47 * Financial buffers in % of provisions
Group Treasury operating profit EURm 100 � High funding activity 90 91 80 � Gain on equities 70 60 62 58 50 40 30 35 27 20 10 0 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 48
Group Functions and Eliminations QoQ: Q4/03 Q3/03 � OM/HEX shares EUR 27m Q3 Income -69 17 � SWAP reservation to CIB Q3 Expenses -173 -102 � IBM JV start-up costs EUR 30m Q4 � Profit sharing EUR 46m Q4 Loan losses -14 -7 � General: Equity method 6 5 � Results from real estate holdings (non-owner occupied) Operating profit, Life 14 7 � Expenses in Group functions not defined as service offered to Goodwill -32 -31 business areas Operating profit -268 -111 � Depreciation of goodwill related to the creation of Nordea 49
Outlook 2004 � Economic growth expected to increase in the Nordic region in 2004 � Increased short-term interest rates not expected until late 2004, at the earliest � Outlook for increased revenues is positive, although at a moderate level � Sharp attention on cost control will be maintained also going forward � Total costs in 2004 expected to be unchanged compared to 2003 � Loan losses not expected to exceed the level in 2003 50
Credit quality 51
Loan portfolio by customer group End of 2003 EUR 145.6bn Public sector 2% Personal customers 44% Companies 54% 52
Lending to personal customers End of 2003 EUR 64.7bn � Continued strong growth in Other loans mortgage lending 24% � Other loans comprise consumer credits – investment credits – car financing – overdraft facilities – credit cards – Housing loans 76% 53
Lending to companies by industry End of 2003 EUR 77.9 bn Shipping & Offshore Construction Agriculture & 5% 3% Fishing 6% Real estate 27% Transport, communication 6% Renting, consulting and other services 7% Other companies 8% Manufacturing 16% Commerce and services Finance 11% 11% 54
Loan portfolio EURbn Q4/03 Q3/03 Q2/03 Q1/03 Q4/02 Personal customers 64.7 63.5 60.2 58.6 57.9 Real estate 21.2 22.0 22.0 22.6 22.4 Construction 2.6 2.5 2.8 2.9 3.1 Transport, communication 4.4 4.6 3.8 3.5 3.5 Trade and services 8.7 9.1 9.1 8.9 8.3 Manufacturing 12.5 13.2 12.5 13.5 13.9 Finance 8.3 11.2 12.2 10.7 9.1 Renting, Consulting and other services 5.7 6.1 7.0 8.7 8.2 Other companies/public sector 9.5 8.3 8.6 8.5 10.3 Agriculture & Fishing 4.3 4.3 4.3 4.3 4.3 Shipping & Offshore 3.7 3.9 4.5 4.7 4.6 Total 145.6 148.7 147.0 147.0 145.7 End of period 55
Lending by geographical area End of 2003 EUR 145.6bn Non-OECD Latin America 0.8% 0.9% Other OECD 0.6% Asia Nordic countries 0.5% 91.7% The Baltic states Other and Poland USA 8.3% 1.1% 1.1% Other EU countries 3.3% Nordic countries, EUR 133.6bn � Denmark 38.2 � Finland 31.0 � Norway 22.0 � Sweden 42.4 56
Transfer risk exposure EURm . End of 2003 Asia 682 Latin America 262 -of which China 352 -of which Brazil 140 South Korea 114 Mexico 47 Indonesia 22 Chile 21 Panama 31 Argentina 2 Middle East 309 -of which Iran 104 Turkey 64 57
Nordea fisheries financing End of 2003 Total exposure approx. EUR 2.1 bn Fish processing/ � Total outstanding EUR 1.8bn export 23% � Mainly Norwegian exposure Fish farming � Fish farming the troubled area 41% – represents approx. 0.6% of total loan book � Increased salmon prices but still not on satisfactory level Fishing vessels 36% 58
Nordea shipping portfolio Distribution by type of vessel End of 2003 Total exposure approx. EUR 5.6bn Reefers Combined � Outstanding, EUR 4.9bn 3% vessels Other dry cargo 1% 5% – reduced following weak Crude tankers 14% USD Pure car carries 5% � Well diversified portfolio by Feries Misc. loans 6% type of vessel 12% Gas tankers � Focus on large industrial 8% players � Exposure split approx Bulkers 55% / 45% Nordic / Int’l. Cruise 12% 8% Liners Product tankers 8% 9% Chemical tankers 9% 59
Nordea real estate financing portfolio End of 2003 Total exposure approx. EUR 21.2bn � Largest industry exposure Denmark � Relatively large and financially 9.0% strong companies Sweden Norway 48.5% 19.7% � High level of collateral coverage � Lending to residential real estate companies approx 50% Finland 22.8% 60
Impaired loans EURm. End of period Q4/03 Q3/03 Q2/03 Q1/03 Q4/02 Impaired loans, gross 2,649 2,916 2,851 2,892 3,260 Provisions -1,936 -2,072 -2,015 -2,087 -2,153 Of which: Specific provisions -1,468 -1,624 -1,571 -1,630 -1,698 Appraised by category -62 -64 -65 -64 -64 General provisions -406 -384 -379 -393 -391 Impaired loans, net 713 844 836 805 1,107 Transfer risk reserve 99 105 109 124 130 Provisions/impaired loans, gross (%) 73 71 71 72 66 Impaired loans,net/lending (%) 0.49 0.57 0.57 0.55 0.76 61
Impaired loans EURm. End of 2003 Gross Provisons Net Personal customers 557 351 206 Real estate 211 143 68 Construction 73 63 10 Transport, communication 255 181 74 Trade and services 222 168 54 Manufacturing 242 206 36 Finance 37 21 16 Renting, Consulting and other services 261 229 32 Other companies 458 304 154 Public sector 1 1 0 Agriculture & Fishing 259 207 52 Shipping & Offshore 73 62 11 Total 2,649 1,936 713 62
Loan losses EURm YoY: 300 246 � Loan loss ratio 0.25% in 2003 236 229 221 219 � Loan losses concentrated to 200 Norwegian retail portfolio 98 92 89 84 � Large part relates to fish 76 100 farming 0 � Pan Fish shares valued at zero -100 QoQ: -132 -138 -143 -145 -154 -200 � Loan loss ratio 0.23% in Q4 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Gross Reversals Net 63
Comments on certain industries Real estate � Vacancy rates increasing from very low levels in commercial real estate � Rent levels down from peak but still higher than original levels 3-5 years ago � Low interest rates help secure cash flow and secondary market values � New construction volumes adjusted to decreased demand � Large foreign interest in Nordic property market � Residential part of portfolio performing strongly 64
Comments on certain industries Shipping and Offshore industry � Pick up in economy leading to increased rates � Bulk market particularly strong � Tanker market strong but volatile � Crusing market recovering from global uncertainties � Offshore industry suffering from uncertainty of oil prices � Nordea´s exposure well diversified with modern ships and globally competitive companies � Restructuring and consolidation of industry continue 65
Economic capital 66
Economic capital (EC) � EC is the capital required by Nordea to cover unexpected losses � 6 different risk categories are incorporated � The measurement period is one year � The confidence level is 99.97% � The economic capital may change over time due to: – composition of risk exposures – changes in parameters � Economic capital is used for – risk management – performance measurement – capital allocation 67
Economic capital EURbn 12.0 � EC reduced by EUR 1.3bn 11.0 in 2003 10.0 10.2 9.0 � No major changes in Q4 9.5 9.1 9.0 8.9 8.0 � Ongoing sale of real estate 7.0 holdings 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 68
Economic capital per business area End of 2003 Other 9% Q4/03 Treasury EC per business area, 5% EURbn Asset Mgmt Retail Banking 4.7 & Life 12% CIB 1.8 Retail Asset Mgmt 0.1 54% Life 1.0 CIB 20% Treasury 0.5 Other 0.8 Total 8.9 69
Distribution of economic capital - by risk category End of 2003 Real estate risk Life risk 4% 1% Operational risk 8% Business risk 10% Credit risk Market risk 60% 17% 70
Nordea 71
Mission: ‘Making it possible’ By providing a broad set of easily accessible and competitive financial services and solutions, Nordea helps customers to reach their objectives . Vision We will be valued as the leading financial services group in the Nordic and Baltic markets with a substantial growth potential. We will be in the top league or show superior profitable growth in every market and product area in which we choose to compete. We will have the leading multichannel distribution with a top world ranking in e-based financial solutions and a high level of usage of our e-services We will be a good corporate citizen ensuring confidence and trust 72
Strategic themes Sustainable growth of economic profit Ensure operational Ensure capital Ensure stable and excellence, strict cost profitable growth of efficiency and high management and income credit portfolio quality reduced complexity Attract, develop and retain highly motivated, competent and performance oriented employees 73
Strategic themes firmly anchored throughout the Group Corp. and Inst. Banking Asset Management & Life Group / Group functions Retail Banking • Increase share of wallet • Capture share of growth in • Increase sales to all existing • Further enhance position the long-term savings and customers among large corporate life area • Acquire new profitable Ensure stable and • Grow economic profit in Life customers customers in Sweden profitable growth of & Pensions at low volatility income • Sell more through all • Increase focus on Financial channels: Branches, Institutions Netbank and Contact Centres • Sell products in bundles • Realise full potential of the • Standardise service • Centralisation and • Implement common existing cost saving concepts consolidation of production solutions Ensure operational initiatives and harvest full • Streamline support functions processes • Encourage the customers to excellence, strict cost benefits • Ensure continuous product • Centralisation and use Netbank and Contact management and range management consolidation of Centres • Increase organisational reduced complexity • Leverage on existing administrative processes • Handle customers according efficiency products/processes • Selective use of sourcing to segment-based strategy alternatives • Enforce strict cost management • Use economic profit to • Limited use of balance • Proactively manage • Complete divestment of real sheet compliance and operational estate determine individual Ensure capital efficiency • Price according to risk risk • Roll-out of economic corporate customer strategy and high credit portfolio • Proactive handling of credit • Realise full potential of the capital/economic profit • Secure the right procedure quality risk changed business model in framework for credit-granting Life & Pensions • Monitor credit risks and take rapid action 74 • Use credit-scoring models
Financial targets Key performance indicator 2003 2002 Target Total shareholder return, peer group 3rd 15th In the top five of the peer group ranking Return on equity excluding goodwill, % 16.7 11.3 Sustainable RoE>15% from 2004 Costs, EURm 3,673 3,745 Same cost level as in 2003 Cost/income ratio, % 63 64 < 55 % from 2005 and with present business mix Loan losses ratio, % 0.25 0.19 < 0.40% of loans and guarantees on average over a business cycle Dividend pay-out ratio,% 48* 76 > 40 % of net profit Tier 1 capital ratio, % 7.3 7.1 > 6.5% *Proposed dividend for 2003 EUR 0.25 per share. Dividend for 2002 was EUR 0.23 per share 75
Peer group * by market cap, EURbn 6 February 2004 RBoS BARCLAYS BNP HBoS LLOYDS TSB SOCIETE GENERALE ABN AMRO NORDEA DANSKE BANK KBC ABBEY NATIONAL ALLIED IRISH BANKS BANK OF IRELAND HYPOVEREINSBANK SHB COMMERZBANK SEB SWEDBANK DnB NOR SAMPO 0 10 20 30 40 50 60 70 *As defined by Nordea 76
Strong distribution network throughout the Nordic and Baltic Sea region Finland Branch offices 416 Personnel 9,118 Sweden Helsinki Branch offices 260 Stockholm Personnel 7,659 St Petersburg Oslo Norway Tallinn Copenhagen Branch offices 130 Riga Personnel 3,836 Moscow Vilnius Denmark Warzaw Branch offices 345 Personnel 8,657 Luxembourg Frankfurt Poland and Baltic Branches/salepoints 73 Personnel 1,491 Countrywide network Total locations 1,224 Branch office or subsidiary Total personnel 30,761 Office of an associated bank 77
Large customer base with high penetration in e-banking Baltic Total Sea DK FI NO SE Region Banking customers (1,000) Personal customers 1,620 2,960 630 4,100 280 9,590 Corporate customers 80 320 65 440 30 935 Life insurance customers (1,000) 615 312 220 463 55 1,665 E-banking customers (1,000) 523 1,218 280 1,588 43 3,652 78
Business areas 79
Result by business area EURm 500 400 428 395 300 200 100 100 92 48 60 43 44 35 62 0 -111 -100 -200 -268 -300 Retail CIB Asset Mgmt* Life* Group Group Treasury Functions *Product result for Asset Management and Life and Eliminations Q3/03 Q4/03 Figures are disclosed and consolidated using end of period and average currency rates in conformity with the ordinary statutory reporting. Previously, fixed planning rates were used. Historical information 80 has been restated accordingly.
Retail Banking 81
Retail Banking operating profit EURm � Strong sales 500 450 � Increase in payment transactions 428 400 � Loan losses in Retail Banking 395 350 376 Norway 354 345 300 � Improved RoE 250 200 150 100 Key ratios 50 Q4/03 Q3/03 C/I ratio, % 55 56 0 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 RoE, % 26 24 82
Retail Banking operating profit by markets Retail DK FI NO SE P&B Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 EURm Net interest income 758 751 208 203 198 191 117 124 225 222 11 11 Non-interest income 356 340 87 91 99 78 35 46 124 116 8 6 Total income 1,114 1,091 295 294 297 269 152 170 349 338 19 17 Total expenses -619 -611 -161 -155 -151 -151 -98 -96 -188 -191 -15 -14 Profit bef. loan loss 495 480 134 139 146 118 54 74 161 147 4 3 Loan losses -65 -83 -19 -13 22 -3 -60 -68 -8 2 1 -1 Operating profit 428 395 120 131 168 115 -6 6 149 145 3 0 C/I ratio % 55 56 54 52 51 56 65 56 54 57 79 84 RoE % 26 24 25 28 44 30 -2 2 32 31 9 -1 Economic capital, 4.7 4.7 1.4 1.3 1.1 1.1 0.8 0.9 1.3 1.3 0.1 0.1 EURbn 83
Retail Banking lending EURbn 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Q3/03 Q4/03 End of period 84
Retail Banking deposits EURbn 25 20 15 10 5 0 Denmark Finland Norway Sweden Q3/03 Q4/03 End of period 85
Retail Banking deposits EURbn. End of 2003 25 9.3 20 4.2 6.8 15 2.6 6.4 6.6 10 1.2 10.2 3.4 6.9 5 6.1 5.4 0 Denmark Finland Norway Sweden Corporate Personal customer - saving accounts Personal customer - current accounts 86
Retail Banking, volumes and margins Volumes Margins Q4/03 Q3/03 Q4/03 Q3/03 EURbn Lending to corporates 56.0 57.3 1.2% 1.2% Lending to personal customers 63.0 61.5 1.6% 1.7% Total lending 119.0 118.8 1.4% 1.5% Deposits from corporates 29.0 28.2 1.0% 1.0% Deposits from personal customers 41.0 41.1 1.7% 1.6% Total deposits 70.0 69.3 1.4% 1.4% Margins are quarterly averages and exclude Poland and Baltic, volumes end of period 87
Retail Banking, lending and deposit margins Quarterly averages % 2.5 � Stable lending margins 2.3 2.1 � Stable deposit margins 1.9 – supported by ”hedges” 1.7 1.5 1.3 1.1 0.9 0.7 0.5 2 2 2 2 3 3 3 3 0 0 0 0 0 0 0 0 / / / / / / / / 1 2 3 4 1 2 3 4 Q Q Q Q Q Q Q Q Lending to corporates Lending to personal customers Deposits from corporates Deposits from personal customers 88
E-banking & transactions 89
90 Jan-00 E-banking customers 1.5 2.5 3.5 June-00 Mill. 1 2 3 4 Nov-00 April-01 E-banking customers Sept-01 Feb-02 July-02 Dec-02 May-03 Oct-03 Jan-00 (1,000) 100 150 200 250 300 350 400 50 June-00 0 Nov-00 Equity trading customers April-01 Sept-01 Feb-02 July-02 Dec-02 May-03 Oct-03
Payments and log-ons E-banking payments E-banking log-ons Mill. Mill. 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Denmark Finland Norway Sweden Denmark Finland Norway Sweden 91
92 Jan-01 10 15 20 25 30 % Penetration on the net 0 5 May-01 Sept-01 Mutual funds penetration rate Jan-02 May-02 Sep-02 Jan-03 May-03 Sep-03 J a n 10 20 30 40 50 60 70 80 % - 0 0 0 M a y - 0 0 S e p t Equity trading penetration rate - 0 0 J a n - 0 1 M a y - 0 1 S Executed trades e p t - 0 1 J a n - 0 2 M a y - 0 2 0 2 - S e p J a n - 0 3 M a y - 0 3 S e p - 0 3
93 Jan-01 10 15 20 25 30 35 40 45 50 Mill. 0 5 Cards May-01 Sept-01 Jan-02 Card payments May-02 Sept-02 Jan-03 May-03 Sep-03 Jan-01 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Mill. May-01 Sept-01 Issued debit and credit cards Jan-02 May-02 Sept-02 Mar-03 Jul-03 Nov-03
Payment transactions, households Breakdown of transactions Payments transactions, households Mill. Mill. 300 500 275 400 250 300 225 200 200 100 175 150 0 1999 2000 2001 2002 2003 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Card payments ATM Transactions Solo payments Manual transactions Direct debet 94
Corporate and Institutional Banking (CIB) 95
CIB operating profit EURm 150 � Income picked up in Q4 141 � Maintained high activity in 131 120 Markets 107 100 90 � Continued low loan losses 92 60 30 Key ratios Q4/03 Q3/03 0 C/I ratio, % 54 56 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 RoE, % 15 13 96
Stock market development Market Volume Market index Chg Q4 vs Q3, % Q4 2003, Q4 2003, % EURbn Denmark 17.1 -2.8 2.6 Finland 37.6 -3.1 8.3 Norway 19.6 0.5 19.9 Sweden 77.0 2.4 12.7 Source: Nordea Securities 97
CIB operating profit by main area International Corporate Financial and Investment Banking Instititutions Other Markets CIB Shipping Banking Division Division Division EURm Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Q4 Q3 Total income 238 212 95 119 58 46 45 44 14 14 26 -11 125 105 Total expenses -129 -119 -35 -34 -31 -25 -13 -11 -7 -12 -43 -37 -60 -54 Profit bef. loan loss 109 93 60 85 27 21 32 33 7 2 -17 -48 65 51 Loan losses -6 -1 -10 0 4 0 1 -2 0 0 -1 1 Transfer risk 1 2 1 2 0 0 0 0 0 0 0 0 Equity method 3 0 0 0 0 0 0 0 0 0 3 0 Operating profit 100 92 50 86 30 20 33 31 1 2 -14 -47 65 51 Economic capital 1.8 2.0 1.1 1.2 0.2 0.2 0.3 0.3 0.0 0.0 0.2 0.2 0.2 0.2 C/I ratio % 54 56 * Markets has product responsibility for trading products such as FX, fixed income and related derivatives and is evaluated by monitoring the product result. The product result includes all income and expenses related to the respective products, which is 98 allocated to the customer responsible unit within Corporate and Institutional Banking and Retail Banking .
CIB lending volume EURbn 25 20 15 10 5 0 Corporate Banking Financial International and Total Division Institutions Division Shipping Division Q3/03 Q4/03 End of period 99
Asset Management & Life 100
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