Contents Summary presentation Q3/02 Page 3 Nordea Page 43 - - PowerPoint PPT Presentation

2

Contents

Summary presentation Q3/02

Page 3

Nordea

Page 43

Integration

Page 54

Business areas

Page 62

Balance sheet

Page 103

Credit quality

Page 110

Economic capital

Page 127

Appendix

Page 147

3

4

Stable overall development

Operating profit EUR 399m, up 18% compared to second quarter Total income EUR 1,406m, down 1% on second quarter, showing growth in

net interest income and reduced commission income

Total expenses unchanged compared to second quarter Loan losses EUR 66m (EUR 56m) corresponding to 0.18% of loans,

annualised

Operating profit from insurance hit by weak equity markets Net profit of EUR 193m (EUR 107m) influenced by a further pension fund

allocation of EUR 120m

5

Increased focus and speed

Lars G Nordström appointed new Group CEO Changed composition of Group Executive Management New Unit, Group Processing and Technology, established to coordinate and

speed-up the integration and unification to improve efficiency

6

Continous improvements of performance will be given top priority going forward

Credit portfolio – stable quality Capital markets exposure – reduced volatility Cost efficiency – improvement needed Capital efficiency – strengthening the balance sheet

7 2 4 6 8 10 12 Q2/02 Q3/02 0,00 0,02 0,04 0,06 0,08 0,10 Q2/02 Q3/02

Key figures

Return on equity (excl. goodwill) % Earnings per share EUR

8

0,1 0,2 0,3 0,4 0,5 0,6 0,7 1999 Q1/2000 Q2/2000 Q3/2000 Q4/2000 Q1/2001 Q2/2001 Q3/2001 Q4/2001 Q1/2002 Q2/2002 Q3/2002

EUR

Earnings per share – 12 months rolling

9

• 30
• 25
• 20
• 15
• 10
• 5

5 10 Q1/02 Q2/02 Q3/02 Copenhagen Helsinki Oslo Stockholm Nasdaq Dow Jones

Market development – stock market indexes

%

10

5.18 4.38 6.70 6.86 4.96 3.67 4.67 3.39 30-06-02 4.38 Short, SE

• 0.66

4.52 Long, SE 0.29 7.15 Short, NO

• 0.68

6.02 Long, NO

• 1.01

3.95 Long, DK

• 0.14

3.53 Short, DK

• 1.08

3.59 Long, EUR (5 years)

• 0.06

3.33 Short, EUR (one week) Change 30-09-02 %

Market development – interest rates

11

Income statement summary

• 26
• 13

Operating profit, Life Insurance 31 39 Investment earnings, banking 338

• 44
• 87

464 17

• 56
• 922

1,425 Q2/02 18

• 5
• 10

18

• 1

Change, % 399 Operating profit

• 42

Goodwill

• 4

Operating profit, General Insurance 419 Profit before inv. earnings and insurance 4 Equity method

• 66

Loan losses

• 925

Expenses 1,406 Income Q3/02 EURm

12

Income statement summary

146 81 Investment earnings, banking

• 21
• 42

Operating profit, Life Insurance

• 25
• 10
• 42

11 Change, %

• 26
• 13

1

• 6

Change %,adj Postgirot Bank

• 108
• 128

Goodwill 60 36 Equity method 1,460 1,101 Operating profit

• 19
• 122

Operating profit, General Insurance 1,462 1,312 Profit before inv. earnings and insurance

• 317
• 185

Loan losses

• 2,488
• 2,752

Expenses 4,207 4,213 Income Jan-Sept 2001 Jan-Sept 2002 EURm

13

Net interest income

856 852 837 855 874

200 400 600 800 1000 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

Higher lending and deposit

volumes

Short-term interest rates slightly

reduced

Overall stable margins EURm

14

104 115 126 115 101 130 139 157 183 189 56 76 55 46 38 84 84 87 91 86 25 45 32 44 42

• 77
• 79
• 77
• 83
• 85
• 100

100 200 300 400 500 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

Asset management Payments & deposits Brokerage Lending Other Expenses

EURm

Commission income

Fall in equity markets

– Reduced fees from asset

mgmt and brokerage

AuM decreased by 7% Payment commissions

continued to increase

371

15

467 482 506 514 521 354 419 399 408 404 200 400 600 800 1000 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Personnel Other

EURm

Expenses

In line with previous quarter Somewhat lower activity during

the quarter

One-off costs of EUR 13m -

redundancies in Nordea Securities

925

16

Loan losses

113 56 63 56 66 100 25 50 75 100 125 150 175 200 225 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 General provision

EURm 0.18% of total loans annualised General provision reduced by EUR

16m

Largest provision within fish farming Unchanged country risk reserve

17

Income statement summary

Minority interests 31 39 Investment earnings, banking

• 26
• 13

Operating profit, life insurance

• 87
• 4

Operating profit, general insurance

• 44
• 42

Goodwill depreciation 18 338 399 Operating profit 107

• 79
• 152

464 Q2/02 81

• 10

Change, % 193 Net profit

• 86

Taxes

• 120

Allocation to pension foundation 419 Profit before inv earnings and insurance Q3/02 EURm

18

Capital markets’ exposure

Life Insurance Group Treasury Pension commitments

19

Life Insurance

Reduced equity exposure One line consolidation following sale of General Insurance Change of principles at Group level

20

Life - risk management

Equity holdings reduced to 17% of total investments as per end of September As per mid-October, equity holdings decreased to 15% Equity exposure reduced through derivatives

– Major part of the Danish equity expsoure is hedged up to year-end by means of

collar

1

Life - investments

5 10 15 20 25 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 15 Oct Equities Bonds Real estate Unit linked

Equity holdings reduced during latter

part of Q3

Further reduced in Q4 Equities

– Predominantly listed equities – 50/50 Nordic/international

Bonds

– ¾ Nordic issuers – Primarily govmn’t & mortgage inst.

• EURbn. End of period

21.2

21

22

Life - asset allocation

15/10 20.8 2.3 3.4 5.2 10.0 15 5 15 23 15/10 17 6 15 15 23 Q3/02 Equities, % 23 16 20 18 28 Q2/02 21.2 2.6 3.2 5.2 10.2 Q2/02 Q3/02 2.4 Sweden 20.8 Total 3.2 Norway 5.2 Finland 10.0 Denmark Total, EURbn End of period

23

2.2 32 Sweden 2.9 508 Total 0.2 5 Norway 3.4 136 Finland 3.7 335 Denmark % of guaranteed liabilities EURm

Life - financial buffers*

End of September 2002

* Financial buffers are defined in accordance with local regulations and practices.

24

Life - solvency situation

End of September 2002

134 20 81 61 Sweden* 234 249 434 186 Finland 124 20 103 85 Denmark 157 73 202 129 Norway* Solvency in % of requirement Solvency buffer Actual solvency Required solvency EURm

*Excluding unit linked companies

25

Life- risk management - solvency sensitivity

15 October 02

Equity exposure has been significantly reduced. Reduced solvency in Sweden due to interest rate increase

n.a. 102 Sweden 12.2 226 Finland 20.1 117 Denmark 46.6 157 Norway Equity prices sensitivity* Solvency ratio %

*Drop in equity prices resulting in no buffers

26

Life – operating profit

Investment earnings Total expenses Other expenses Personnel expenses Total income Income from insurance Commission income

• 29
• 30
• 16
• 13
• 13
• 17

33

• 7
• 12

37

• 2
• 4
• 5

4

• 49

Operating profit

• 13
• 13

Q3/02

• 26

23

• 26

Q2/02

• 3
• 7
• 3

Q1/02 Change of principles Operating profit, reported Q3 Previous Operating profit, reported Q3 EURm End of period

27

Life - changes in Group accounting principles

Group Accounting Policies for assets

– All Life assets are valued at market value in the Group Balance Sheet – Difference between portfolio market value and acquisition cost is allocated into

financial buffers. P&L effect will occur if portfolio market value is below cost

– Previously equities were written down on an individualy security basis, now the

portfolio principle is implemented for all units in the consolidated accounts

Group Accounting Policies for liabilities Life Insurance Provisions

– are set by local regulators demands – no changes are made in the Group consolidated figures

28

Life - breakdown of operating profit

• 94
• 277

Chg in discount rate for life provisions

• 26
• 13

Total operating profit 2 1 Operating profit Unit Linked business 570 579 Allocation from financial buffers

• 545
• 435

Fluctutations compared to normalised investment return 51 126 Normalised operating margin

• 11
• 6

Allocation to policy-holders Q2/02 Q3/02 EURm

29

Group Treasury

Group Treasury is managing the Group’s own direct investments in the

financial markets and the market and liquidity risk in the banking book

The activities divided in three areas:

–Active risk taking –Benchmark –Other equities

30

Group Treasury – active risk taking

Activities

– Tactical asset allocation – Security selection relative to benchmark – Relative value positions – Danish and Swedish mortgage bonds

Market views based on combination of own view on macro, investor

positioning and geopolitical developments

Many small positions relative to a few large positions Relative short time horizon on positions with firm stop loss rules reflecting a

focus on use of economic capital

31

Group Treasury – benchmark

Fixed income and equities Approved in GEM/ALCO based on strategic asset allocation input from

Group Treasury

Calendar year view with (minimum) quarterly updates Exposure has been / are low reflecting the risk / reward in the financial

market and maintaining a low volatility in earnings

32

Group Treasury - investments

5 10 15 20 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Fixed income Equities Equities

– Listed, unlisted & private equity

funds

Bonds

– ¾ Nordic issuers – Primarily govmn´t & mortgage inst.

• EURbn. End of period

14.7

33

Pension commitments

Part of pension commitments in Finland and Sweden not recognised in

balance sheet - fully covered in pension funds

Volatility in results related to Swedish pension fund Finnish fund surplus at high level Swedish fund made regular refunds of surplus in previous years

34

Sweden Finland 50% 25% 22% 33% 30% 32% Equity exposure

146 96

• of which contributions

during the period

11 91 33 45 Surplus EURm Q2/02 Q3/02 18 Oct Q2/02 Q3/02 18 Oct End of period 533 624 686 686 537 569 671 687 539 Pension commitments 671 698 584 Assets

Pension commitments – financial structure in Finland and Sweden

35

Pension commitments

In Q3, Swedish fund

– Declining equity values caused further deficit of EUR 78m – Increased liabilities and wage tax EUR 42m – Total allocation EUR 120m

Equity exposure significantly reduced – mid October 22 percent in Sweden New benchmarks and investment policies established Tactical asset allocation mandate managed by Group Treasury as part of

total Group investments

Security selection mandate managed by Nordea Investment Management

36

Balance sheet - key items

137 252 12 91 147 Sept 02 136 242 12 83 138 Dec 01 1 Risk-weighted assets 4 Total assets Shareholders’ equity 10 Deposits 7 Lending Change,% EURbn, end of period

37

Total capital ratio 1 2 3 4 5 6 7 8 9 10 Q2/02 Q3/02 Tier 1 ratio 1 2 3 4 5 6 7 8 9 10 Q2/02 Q3/02

Capital adequacy

% %

38

Repurchase of own shares

During the third quarter 40 million shares repurchased under the repurchase

program announced on 19 June 2002

Average price SEK 43.50 In April 2001 17 million shares acquired for the purpose of achieving a hedge

regarding incentive programme

Total holding of own shares 57 million

39

Capital efficiency – strenghtening the balance sheet

Focus on strengthening balance sheet

Aim to reduce economic capital – risk weighted assets Prioritisation of performance and profitability before growth Sale of General Insurance and other non-core assets Reduce aggregate capital markets exposure Tier 1 target of 6.5%, total capital ratio target of 9.0% Dividend will be given priority over repurchasing of own shares

40

Cost efficiency – improvement needed

Special attention to overall cost development – strict cost control Further integration of business activities and processes Reprioritisation of integration and development projects to adapt to current

market conditions

Level of IT costs under consideration Continuous reduction of the number of employees Cost/income ratio level of 50% not achievable with current market conditions

and business mix

41

Outlook - weak development in capital markets, key macro indicators revised downwards

Q4/02 outlook

Stable business volume Revenues in line with average quarterly level this year Expenses somewhat higher than average level Loan losses of the same magnitude as in Q3

42

Outlook - weak development in capital markets, key macro indicators revised downwards

2003 outlook

Potential for increased revenues considered limited Increase in short-term interest rates not expected until late 2003 Sharp attention on cost control Uncertainty in the global economy may lead to credit deterioration medium

term – target of maximum 0.40% remains unchanged

43

44

Our vision

We will be valued as the leading financial services group in the Nordic and Baltic financial markets with a substantial growth potential. We will be number one or number two 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 services and solutions.

Our mission: ‘Making it possible’

By providing a broad set of easily accessible and competitive financial services and solutions Nordea helps customers where we operate to reach their objectives.

Strategic direction

Attract, develop and retain highly motivated, competent and empowered employees Establish a stable and broadly based growth of income Ensure

• perational excellence and

cost efficiency in all processes Optimise risk taking and use of capital Sustainable growth of economic profit 45

46

Stable and broadly based growth of income

Attract, develop and retain highly motivated, competent and empowered employees Establish a stable and broadly based growth of income Ensure

• perational

excellence and cost efficiency in all processes Optimise risk taking and use of capital Sustainable growth of economic profit

Focus going forward

Grow share of wallet of existing customers in home market and significantly enhance position in Sweden Growth by market share in our emerging markets Implement Nordic business model for personal and corporate customers Maintain and reinforce the retail savings and investment proposition Increase share of commission income in corporate banking Expand the use of e-banking services among existing and new customers

47

Focus on cost efficiency

Focus going forward

Strict cost control throughout the organisation Increased focus and speed in integration and unification of

business activities

Development activities will be strictly prioritised in order to curtail

short-term cost level

Continuous reduction in number of employees Continue development of innovative e-service facilities for

personal as well as corporate and institutional customers

Attract, develop and retain highly motivated, competent and empowered employees Establish a stable and broadly based growth of income Ensure

• perational

excellence and cost efficiency in all processes Optimise risk taking and use of capital Sustainable growth of economic profit

48

Capital efficiency

Attract, develop and retain highly motivated, competent and empowered employees Establish a stable and broadly based growth of income Ensure

• perational

excellence and cost efficiency in all processes Optimise risk taking and use of capital Sustainable growth of economic profit

Focus going forward

Speed-up implementation of economic capital and economic profit framework Development of existing credit scoring models Use of capital market approach in corporate banking Implementation of new business model for Life & Pensions

49

Financial targets

1) Dividend for 2001 EUR 0.23 per share 2) Return on equity(excluding goodwill) 360 EURm (2003) 168 242 Merger synergies, EURm < 0.40% of loans and guarantees 0.29 0.18 Average loan losses,% In the top five of our peer group

• 19.8
• 31.1

Total shareholder return,% < 50 % (2004) 58 64 Cost/income ratio, banking,% 20 % p.a.

• 11.4

Assets under management growth,% > Euro risk free interest rate +8% 13.8 10.0 2) Return on equity,% > 40 % of net profit 44 1) Dividend pay-out ratio,%

Target 2001 Jan-Sept 2002 Key performance indicator

50

10 20 30 40 50 60 70 80 90 100

INTESA BCI DEXIA CREDIT LYONNAIS SAN PAOLO IMI ALLIED IRISH BANKS NORDEA DANSKE BANK STD CHARTERED ABBEY NATIONAL CREDIT AGRICOLE CREDIT SUISSE SOCIETE ABN AMRO FORTIS UNICREDITO BBVA SANTANDER BNP PARIBAS DEUTSCHE BANK HBOS BARCLAYS LLOYDS TSB UBS RBOS HSBC

European banks by market cap

Source: Bloomberg, October 2002

EUR bn

51

Strong distribution network throughout the Nordic and Baltic Sea region

Riga Vilnius Tallinn

Helsinki

Luxembourg

Stockholm

St Petersburg Tartu Gdansk Gdynia Frankfurt Hamburg Radom

Oslo

Countrywide network

Branch office or subsidiary Office of an associated bank

Moscow Bergen

Copenhagen

8,500 Personnel 10,600 Personnel 33,900 Total personnel* 1,241 Total locations 1,000 Personnel 35 Branch offices Baltic and Poland 9,400 Personnel 348 Branch offices Denmark 4,400 Personnel 147 Branch offices Norway 267 Branch offices Sweden 444 Branch offices Finland

Warzawa

*Full time equivalents

52

Large customer base with high penetration in net banking

1,300 430

460 4,260

SE 15 70

10 60

Baltic Sea Region 240 230

65 500

NO 3,170 1,640

950 9,500

Total 260 650 Life insurance customers (1,000) 1,200 410 Net banking customers (1,000)

330 80 Corporate customers 3,000 1,700 Personal customers

Banking customers (1,000) FI DK

53

8 2 8 2-3 2-3 Sweden 5 4 6 1-2 2 Norway 1 2 1 1 1 Finland 2 2 2 1 2 Denmark

Life and pensions premiums Investment funds Equity dealing Corporate Banking Customer lending, customer deposit and mortgage volumes

Asset Management & Life Corporate and Institutional Banking Retail Banking

Strong positions in most Nordic markets

54

Integration

55

Initial merger synergies

Total synergies of EUR 360m annually Split between costs and revenues: 60/40 Time period: 2001 - 2003 Restructuring reserve of EUR 290m Full effect from 2004 onwards Required investments* of EUR 0

* Beyond restructuring reserve

56

Second Wave

Total synergies of EUR 300 - 350m Split between costs and revenues: 100/0 Time period: 2002 - 2004 Restructuring reserve of EUR 0 Full effect from 2005 onwards Required investments(E) of EUR 350-400m

First and second wave of integration

2000 2001 2002 2004 2005

First wave of integration

• The customer and the customer relation
• Nordic products and services
• Business structure
• Legal structure alignment
• Group policies and control

2003 Annual synergies Merger synergies EUR 360m Estimated synergies of the same magnitude as the merger synergies Degree of integration

Second wave of integration

• Common group infrastructure in

middle office, back office and

• ther support functions
• Common planning and performance

management model

• Common values and culture

57

58

Second wave of integration

Consolidated into 15 main projects of which 7 are under execution Requiring total investments of EUR 350-400m, 25% in 2002, 50% in 2003

and 25% in 2004

Approximately half will be on top of ordinary investments in an average

• perating year

Investments in Q3 was EUR 15m (Q2: EUR 25, Q1: EUR 10m)

59

Postgirot Bank synergies

Total synergies of EUR 65m Split between costs and revenues: 80/20 Time period: 2002 - 2004 Restructuring reserve of EUR 43m Full effect from 2005 onwards Required investments* of EUR 0

* Beyond restructuring reserve

60

Realised Synergies

360 145 215 242 177 23 Total initial merger synergies Initial merger synergies

• 21

29 9 20 98 2001 Realised 65

• 20
• Postgirot Bank

13

• 13
• Other group functions

15 15

• 17
• Treasury

55

• 55

42

• IT

71 51 20 33 3 Other business areas** 82 47 35 27

• Retail banking

124 32 92 123 20 CIB Total Revenue Cost 2002* 2000 EURm Target Realised Realised *Annualised and accumulated ** Asset Management and Investment Banking

61

Restructuring reserve

• 15

Utilised Q2/02

• 15

Utilised Q1/02 58 Remaining reserve end of June 2002

• 15

Utilised Q3/02 103 Remaining reserve Jan 2002 43 Originally, Postgirot

• 110

Q4/01

• 7

Q3/01

• 24

Q2/01

• 18

Utilised Q1/01 219 Remaining reserve Jan 2001 90 Originally, CBK

• 71

Utilised 2000 200 Originally, Unidanmark EURm

62

63

440 127 21 430 126 15

• 13

31

• 26

23

• 200
• 100

100 200 300 400 500 Retail CIB Asset Mgmt Life Treasury

Q2/02 Q3/02

Results by business area

EURm

64

65

Retail Banking operating profit

425 366 420 440 430

50 100 150 200 250 300 350 400 450 500 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 EURm Profitability at a high level,

return on equity 24%

Reductions in personnel and

cost/income ratio

Increased volumes Tender offer for remaining

shares in LG Petro Bank

66

Retail Banking operating profit by markets

86 96 67 63 67 62 51 48 58 56 59 57 C/I ratio % 7 2 22 22 14 8 35 41 23 24 25 24 RoE % 6 7 228 239 107 113 222 224 211 202 774 785 Net interest income 5 4 125 113 41 48 76 88 88 74 362 327 Non-interest income Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 EURm 1 1

• 10

11 124

• 7

131

• 221

352 28

• 33

61

• 100

161 164 1 163

• 149

312 113

• 10

123

• 153

276 430

• 49

479

• 633

1,112 11 353 148 298 299 1,136 Total income

• 9
• 237
• 100
• 153
• 174
• 675

Total expenses 1 116 43 142 113 440 Operating profit

• 1
• 5
• 3
• 12
• 21

Loan losses 116 SE 2 48 145 125 461 Profit bef. loan loss P&B NO FI DK Retail

67

5 10 15 20 25 30 35 40 Denmark Finland Norway Sweden Q2/02 Q3/02

Retail Banking lending

• EURbn. End of period

68

5 10 15 20 25 Denmark Finland Norway Sweden Q2/02 Q3/02

Retail Banking deposits

• EURbn. End of period

69

Retail Banking deposits

6.1 6.2 5.3 8.3 6.4 6.1 3.2 5.9 2.3 9.0 1.1 4.3

5 10 15 20 25 Denmark Finland Norway Sweden

Corporate Personal customer - saving accounts Personal customer - current accounts

EURbn End of September

70

Retail Banking, volumes and margins

1.8% 2.1% 1.3% 1.4% 1.6% 1.2% Q3/02 1.8% 2.1% 1.3% 1.5% 1.7% 1.2% Q2/02 Margins 36.3 37.2 Deposits from personal customers 100.8 102.1 Total lending 58.3 59.9 Total deposits 22.0 22.7 Deposits from corporates 49.7 51.2 Lending to personal customers 51.1 51.0 Lending to corporates Q2/02 Q3/02 EURbn Volumes

71

72

E-banking customers

Equity trading customers

50 100 150 200 250 300 350 Jan-00 May-00 Sept-00 Jan-01 May-01 Sept-01 Jan-02 May-02 Sept-02

E-banking customers

1 1,5 2 2,5 3 3,5 Jan-00 May-00 Sept-00 Jan-01 May-01 Sept-01 Jan-02 May-02 Sept-02 Thousands Mill.

73

Payments and log-ons

E-banking payments 5 10 15 20 25 30 35 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Denmark Finland Norway Sweden

Mill.

E-banking log-ons 5 10 15 20 25 30 Q 1 / Q 3 / Q 1 / 1 Q 3 / 1 Q 1 / 2 Q 3 / 2 Denmark Finland Norway Sweden

Mill.

74

Penetration on the net

Equity trading penetration rate

Executed trades

10 20 30 40 50 60 70 Jan-00 April-00 July-00 Oct-00 Jan-01 April-01 July-01 Oct-01 Jan-02 Apr-02 July-02

Mutual funds penetration rate

5 10 15 20 25 Jan-01 Mar-01 May-01 July-01 Sept-01 Nov-01 Jan-02 Mar-02 May-02 July-02 Sep-02

% %

75

Cards

Debit and credit cards

0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 Jan-01 May-01 Sept-01 Jan-02 May-02 Sept-02

Debit cards

Card payments

5 10 15 20 25 30 35 Jan-01 May-01 Sept-01 Jan-02 May-02 Sept-02

Mill. Mill.

76

77

• 5

142 132 127 126

• 20

20 40 60 80 100 120 140 160 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

CIB operating profit

EURm

Operating profit stable Reasonable deal flow in weak

market

Credit portfolio continued to

perform satisfactorily

78

Stock market development

Source: Nordea securities

• 26.4
• 24.3

52.6 Sweden

• 22.0
• 21.2

Nordic average

• 25.5
• 14.4

10.6 Norway

• 14.2
• 17.7

39.0 Finland

• 21.9
• 23.3

12.8 Denmark Q3 2002, % Change Q3 vs Q2, % Q3 2002, EURbn Market index Market Volume

79

CIB operating profit by main area

• 8

1 5

• 14
• 42

28 Q3 Other 3 1 9

• 7
• 27

20 Q2 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 EURm 61

• 61
• 52

113

• 7
• 7
• 35

28 13 1 1

• 6

17

• 27

44 34

• 1

35

• 6

41 94

• 9

103

• 64

167 57 126 2 1

• 11

134

• 174

308 112 26 38 37 162 284 Total income

• 51
• 35
• 22
• 9
• 77
• 170

Total expenses 60 C/I ratio %

• 7
• 7

Transfer risk

• 3
• 2

Equity method 61

• 9

22 37 73 127 Operating profit

• 2

9

• 12

8 Loan losses

• 9
• Inv. Banking

61 16 28 85 114 Profit bef. loan loss Markets* Inter- national Shipping & Offshore Corporate Division CIB * 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 allocated to the customer responsible unit within CIB.

80

CIB net loan losses

10

• 1
• 26

37

21 6 1 9

Q3/02

• 15
• 7
• 10

2

• 2
• 9

13

Q2/02 153 11 18 Total

• 11
• 17

2 Transfer risk 75

• 39
• General provision

89

41 6 9 33

Q3/01

21

• 2

Acquisition finance 67 16 Total

4

• 4

International division

9 6

Shipping division

33 16

Corporate division Q4/01 Q1/02

EURm

81

CIB lending volume

5 10 15 20 25 30 Corporate Division Shipping and

• ffshore

International Total Q2/02 Q3/02

• EURbn. End of period

82

83

Asset Management, product result

50 55 56 49 35

10 20 30 40 50 60 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

EURm

AuM down by 7% in negative

market environment

Increased focus and cost

reduction in Investment Mgmt

84

Assets under management, volumes

20 40 60 80 100 120 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Investment management Private banking Investment funds Real estate within Life

EURbn End of September

85

Asset structure – Investment Management*

*Including mgmt of own investment funds

Nordic fixed income 43% Int'l. equities 27% Nordic equities 16% Int'l. fixed income 14%

June 2002 EUR 68bn

Nordic fixed income 53% Int'l. equities 21% Nordic equities 14% Int'l. fixed income 12%

September 2002 EUR 63bn

86

Asset structure – Investment Funds

Equity funds 47% Fixed income funds 39% Balanced funds 14%

June 2002 EUR 34.2bn

Fixed income funds 47% Equity funds 40% Balanced funds 13%

September 2002 EUR 30.4bn

87

Investment Funds volumes and margins

2 4 6 8 10 12 14 16 18 DK FI NO SE Q2/02 Q3/02 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 DK* FI NO SE Q2/02 Q3/02

Volumes, end of period Margins * Net margin % EURbn

88

European Fund distribution

200 400 600 800 1000 1200 1400 1600 1800 Q 3 / Q 4 / Q 1 / 1 Q 2 / 1 Q 3 / 1 Q 4 / 1 Q 1 / 2 Q 2 / 2 Q 3 / 2 Inflow AUM

Nordea ranked among top 5 European

cross-border fund managers by the Financial Times

1000 active distribution agreements Assets by country of source:

– 32% from Germany – 21% from Switzerland – 16% from Austria – 14% from Luxembourg – 6% from France – 3% from the UK

EURm

89

• 49

4

• 3
• 26
• 13
• 50
• 40
• 30
• 20
• 10

10 20 30 40 50 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

EURm

Operating profit, Life Insurance

Reduction of risk exposure Equity holdings reduced to less

than 10%

Equity holdings in Swedish

• perations reduced to zero

Solvency robust in case of

further equity market declines

90

Life – operating profit

Investment earnings Total expenses Other expenses Personnel expenses Total income Income from insurance Commission income

• 29
• 30
• 16
• 13
• 13
• 17

33

• 7
• 12

37

• 2
• 4
• 5

4

• 49

Operating profit

• 13
• 13

Q3/02

• 26

23

• 26

Q2/02

• 3
• 7
• 3

Q1/02 Change of principles Operating profit, reported Q3 Previous Operating profit, reported Q3 EURm

91

Life - breakdown of operating profit

• 94
• 277

Chg in discount rate for life provisions

• 26
• 13

Total operating profit 2 1 Operating profit Unit Linked business 570 579 Allocation from financial buffers

• 545
• 435

Fluctutations compared to normalised investment return 51 126 Normalised operating margin

• 11
• 6

Allocation to policy-holders Q2/02 Q3/02 EURm

92

Life

4

• 228

211

• 94
• 277

Change in discount rate for life provisions 14

• 13

465 1 84

• 14
• 1

579

• 6
• 586
• 435

126

• 29
• 511

285 381 Q3/02 458 778 693 611 Premiums written, net of reinsurance 11 22 12 16 Of which allocated profit to Retail

• 49

4

• 3
• 26

Total operating profit TOTAL LIFE & PENSIONS 4

• 1

2 2 Operating profit 91 189 134 125 Premiums written, net of reinsurance UNIT LINKED BUSINESS

• 53

5

• 5
• 28

Operating profit TRADITIONAL LIFE 65

• 41

63 52 Normalised operating margin

• 1
• 5
• 11
• 11

Allocated to policyholders 655 12

• 110

570 Change in financial buffers

• 26
• 29
• 31
• 31

Insurance operating expenses

• 776

267

• 158
• 540

Short term fluctuations in investment return

• 707
• 2

116

• 582

Actual operating margin

• 555

279 367 Q3/01

• 889

288 589 Q4/01

• 704

239 559 Q1/02

• 5

Net profit from Health & Pers. Accident insurance

• 642

Benefits paid and change in provision 239 Normalised investment. return 486 Premiums written net Q2/02 EURm

93

Life

• 435
• 1
• 82
• 113

21

• 259

Fluctuation compared to normalised investment return

• 19

16 3

• 5
• 2

8 3 Other 1

• 8

164 8

• 8
• 1

538

• 545
• 312

26

• 10
• 248

128 156 Denmark 465 47 75 161 Premiums written, net of reinsurance 14

• 13

Of which allocated profit to Retail

• 12

1

• 19

15 Total operating profit TOTAL LIFE & PENSIONS 1 1 2 Operating profit 84 18 22 20 Premiums written, net of reinsurance UNIT LINKED BUSINESS

• 13
• 19

13 Operating profit TRADITIONAL LIFE 126 14 65 19 Normalised operating margin

• 6
• 6

Allocated to policyholders 579 32 30

• 21

Change in financial buffers

• 29
• 3
• 8
• 3

Insurance operating expenses

• 277

35 Change in financial buffers

• 586
• 32
• 48

40 Actual operating margin

• 1
• 511

285 381 Total

• 35

24 29 Sweden

• 57

76 53 Norway Net profit from Health & Pers. Accident insurance

• 168

Benefits paid and change in provision 49 Normalised investment. return 141 Premiums written net Finland EURm

94

Life - investments

5 10 15 20 25 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 15 Oct Equities Bonds Real estate Unit linked

Equity holdings reduced during latter

part of Q3

Further reduced in Q4 Equities

– Predominantly listed equities – 50/50 Nordic/international

Bonds

– ¾ Nordic issuers – Primarily govmn’t & mortgage inst.

Total portfolio

– Some bias to Danish securities

• EURbn. End of period

21.2

95

2.2 32 Sweden 2.9 508 Total 0.2 5 Norway 3.4 136 Finland 3.7 335 Denmark % of guaranteed liabilities EURm

Life - financial buffers*

End of September 2002

* Financial buffers are defined in accordance with local regulations and practices.

96

Life - solvency situation

End of September 2002 134 20 81 61 Sweden* 234 249 434 186 Finland 124 20 103 85 Denmark 157 73 202 129 Norway* Solvency in % of requirement Solvency buffer Actual solvency Required solvency

EURm

*Excluding unit linked companies

97

General Insurance – operating profit

• 7
• 29

Investment earnings

• 101
• 115

Total expenses

• 63
• 74

Personnel expenses

• 38
• 41

Other expenses 77 97 Total income

• 40

Loss sale of General Insurance 77 97 Income from insurance

• 31
• 87
• 4

Operating profit

• 4

Q3/02

• 87

Q2/02

• 31

Q1/02 Previous Operating profit, General Insurance EURm End of period

98

99

Group Treasury operating profit

Volatile financial markets Positive active risk taking 21 38 35 21 31 5 10 15 20 25 30 35 40 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

EURm

100

Group Treasury

Group Treasury is managing the Group’s own direct investments in the

financial markets and the market and liquidity risk in the banking book

The activities divided in three areas:

–Active risk taking –Benchmark –Other equities

101

Group Tresury operating profit by main areas

Q2/02 Q3/02 Q2/02 Q3/02 Q2/02 Q3/02 Q2/02 Q3/02

EURm Group Funding Investment & Risk Trading

Equity portfolios Fixed income portfolios

Total

21 31

Operating profit

• 32
• 47

28 61

• 4

14

Investment earnings

25 25

• 25

17

Profit excl. Investment earnings

• 7
• 9
• 1
• 1
• 3
• 3
• Expenses

32 26

• 31
• 46

31 64

• Income

102

Group Treasury investment portfolio

5 10 15 20 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Fixed income Equities Equities

– Listed, unlisted & private equity

funds

Bonds

– ¾ Nordic issuers – Primarily govmn´t & mortgage inst.

• EURbn. End of period

14.6

103

104

Balance sheet - key items

137 252 12 91 147 Sept 02 136 242 12 83 138 Dec 01 1 Risk-weighted assets 4 Total assets Shareholders’ equity 10 Deposits 7 Lending Change,% EURbn, end of period

105

138 33 24 24 16 7 147 30 21 22 26 6 30 60 90 120 150 Lending Interest bearing securities Loans and advances to credit inst. Assets, insurance Other assets, banking Other 31-12-2001 30-09-2002

Balance sheet structure - assets

• EURbn. End of period

106

Real estate holdings

2.1 0.6 0.3 0.2 Non owner occupied properties 3.6 1.8 0.3 1.3 Q3/02 4.1 2.0 0.3 1.5 2001 4.0 1.6 0.4 1.4 2000 5.5 Total 1.6 Investments of the insurance companies 0.4 Shares in real estate holding companies 1.4 Owner occupied properties 1999 Book value, end of period, EURbn

107 83 61 30 22 22 12 11 91 65 31 26 19 12 8

10 20 30 40 50 60 70 80 90 100

Deposits Debt securities in issue Deposits by credit inst. Other liabilities, banking Liabilities, insurance Shareholder´s equity Other

31-12-2001 30-09-2002

Balance sheet structure – liabilities and equity

• EURbn. End of period

108 Lending

134 138 142 143 147 20 40 60 80 100 120 140 160 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

Lending and deposits

Deposits

81 83 86 90 91 20 40 60 80 100 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

• EURbn. End of period
• EURbn. End of period

109

Capital base

12,367

• 291
• 1,821

4,953 9,526

• 56
• 2,055

18 390 11,229

• 111
• 205

11,545 End of Sept 2002 Deductions for other investments Group goodwill Other deductions TIER 1 CAPITAL TIER 2 CAPITAL (subordinated debt) Deductions for investments in insurance companies Deductions insurance companies and other Hybrid capital Minority interests Shareholder´s equity in the capital base CAPITAL BASE Profit Q3 Shareholder´s equity EURm

110

111 Personal customers 38% Public sector 2% Companies 60%

Loan portfolio by customer group

End of September 2002

EUR 147bn

112

Housing loans 75% Other loans 25%

Lending to personal customers

End of September 2002

EUR 56bn

Other loans comprise:

Consumer credits Investment credits Car financing Overdraft facilities Credit cards

113

Real estate 26% Transport, communication 4% Commerce and services 10% Manufacturing 17% Finance 10% Renting, consulting and

• ther services

10% Other companies 10% Shipping &

• ffshore

4% Agriculture & fishing 5% Construction 4%

Lending to companies by industry

End of September 2002

EUR 88 bn

114 147 5 4 11 9 9 15 9 3 3 23 56 Q3/02 142 5 4 12 9 7 16 8 4 3 22 52 Q1/02 138 6 3 10 9 7 16 9 4 3 20 51 Q4/01 134 143 Total 6 5 Shipping 3 4 Agriculture & Fishing 9 10 Other companies/public sector 8 8 Business service 7 8 Finance 16 15 Manufacturing 8 9 Commerce and services 4 4 Transport, communication 3 3 Construction 19 22 Real estate 50 55 Personal customers Q3/01 Q2/02 EUR bn

Loan portfolio

End of period

115

Asia 0.7% Other OECD 0.5% Other 9.6% The Baltic states and Poland 0.3% Other EU countries 4.9% Latin America 0.7% USA 1.6% Non-OECD 0.9% Nordic countries 90.4%

Lending by geographical area

End of June 2002*

EUR 143bn

Nordic countries, EURbn Denmark 34 Finland 29 Norway 24 Sweden 43

* Only updated every half year

116

Transfer risk exposure, EURm

End of September 2002 72 Turkey 104 Iran

• of which

3 Argentina

373 Middle East

43 106 342

848

• of which

Latin America

Panama Chile Mexico Brazil 26 Indonesia South Korea China 40 56 215

• of which

374 Asia

117

Nordea telecom financing portfolio

Divided by operators and manufacturers

End of September 2002

Operators 65% Manu- facturers 35%

Total outstanding EUR 3.9bn Majority of exposure related to

– major Nordic equipment manufacturers – major Nordic telecom operators

Total exposure approx EUR 6.5 bn

118

Nordea shipping portfolio

Distribution by type of vessel

End of June 2002*

Crude tankers 15% Misc.loans 18% Product tankers 11% Ferries 11% Bulkers 11% Liners 7% Cruise 6% Gas tankers 7% Chemical tankers 5% Reefers 5% Combined vessels 1% Other dry cargo 4% Pure car carries 3%

Outstanding, EUR 5.1bn Well diversified portfolio by

type of vessel

Focus on large industrial

players

Exposure split approx 55% /

45% Nordic / Int’l. Total exposure approx EUR 6.0bn

* Only updated every half year

119

0.6 73 138 846

• 377
• 79
• 1,834
• 2,290

3,136

Sept 02

0.6 72 138 875

• 390
• 79
• 1,836
• 2,305

3,180

June 02

.. 155 159 Transfer risk reserve Of which: ..

• 364
• 370

General provisions

• 92
• 82

Appraised by category ..

• 1,803
• 1,839

Specific provisions

• 2,267
• 2,259
• 2,291

Provisions 0.6 73 855* 3,114

Dec 01

0.6 73 853 3,120

Sept 01

73 Provisions/impaired loans, gross (%) 0.6 Impaired loans,net/lending (%) 841 Impaired loans, net 3,132 Impaired loans, gross

March 02

EURm End of period

Impaired loans

*According to FSA rules loans with interest deferments are classified as impaired. The figures for Dec 2001 are restated compared to the year-end report 2001 inlcuding EUR 28m of such loans (previously reported as problem loans).

120

Other companies 22% Construction 2% Agriculture and fishing 3% Manufacturing 11% Transport 2% Trade & services 10% Financial operations 3% Shipping 4% Households customers 25% Real estate management 13% Renting, consulting and other company servicies 5%

Impaired loans, net

End of September 2002

EUR 846m

121

Loan losses Q3

361 321 168 184 181

• 148
• 264
• 105
• 128
• 115

213 56 63 56 66

• 300
• 200
• 100

100 200 300 400 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Gross Reversals Net

EURm 0.18% of total loans annualised General provision reduced by

EUR 16m

Largest provision within fish

farming

Unchanged country risk reserve

122

Comments on certain industries

Real estate

Vacancy increasing from very low levels Rent levels down from peak but still much higher than original levels 3-5

years ago

Low interest rates help secure cash flow and secondary market values New construction volumes adjusting to decreased demand

123

Comments on certain industries

Telecom

Operators’ profitability declining due to increased competition and burden

• f non-productive assets

Handsets keeping up fairly well as new applications introduced Delayed investments in 3G affect equipment suppliers and subcontractors Consolidation in the industry continues

124

Comments on certain industries

Aircraft Finance

Stabilising after last years shock effect Capacity heavily reduced, improved utilisation rates US and cross-atlantic operators still suffering Nordic operators show ability to adjust to new market conditions The industry would be badly hit by a prolonged war in Iraq

125

Comments on certain industries

Shipping

Slower economic growth generally affects the industry negatively Container ships worst hit, but also tanker rates considerable down Industrial shipping doing reasonably well Cruising picking up after last autumn Nordea´s exposure well diversified with modern ships and globally

competitive companies

Restructuring needed for many operators to adjust repayments to

decreased cash flows

126

Comments on certain industries

Other industries

Automobile industry and particularly subcontractors under pressure All media companies suffer from reduced advertising income Capital goods sector under intense competitive pressure as volumes drop Nordic traditional industries (forestry, pulp & paper, agro, metal, oil and

pharmaceuticals) performing satisfactorily

Fish farming recovering with increasing salmon prices

127

128

Economic capital

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:

– the composition of risk exposures – changes in parameters

Economic capital is used for

– risk management – performance measurement – capital allocation

129

Economic capital per business area

End of September 2002

CIB 24% Other 7% Treasury 5% Asset Mgmt & Life 11% Retail 53%

EUR 9.9bn

Reduced overall risk Economic capital reduced by EUR

1.1bn in 2002

General Insurance sold

130

Distribution of economic capital - by risk category

End of September 2002

Credit 61% Real Estate 8% Market 12% Insurance 1% Operational 9% Business risk 9%

131

Appendix

Market shares

Page 132

Financials

Page 147

Nordea share

Page 157

Other

Page 164

Macro statistics

Page 169

132

Appendix

Market shares

*Statistics from Sweden delayed due to technical problems

in the Swedish central bank (updated as of June)

133

Market shares, personal customer deposits

5 10 15 20 25 30 35 40 Denmark Finland Norway Sweden

Feb 02 June-Aug 02

%

134

Personal customer deposits - market volume & share

10 20 30 40 50 n

• v
• f

e b

• 1

m a j

• 1

a u g

• 1

n

• v
• 1

f e b

• 2

2

• m

a y a u g

• 2

30% 32% 34% 36% 38% 40%

100 200 300 400

• J

u n

• S

e p

• D

e c 1

• m

a r 1

• j

u n e 1

• s

e p 1

• d

e c 2

• m

a r 2

• j

u n 18% 20% 22% 24% 26% 28%

100 200 300 400 500 nov-00 feb-01 maj-01 aug-01 nov-01 feb-02 may-02 15% 17% 19% 21% 23% 25% EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share 100 200 300 400 n

• v
• 9

9 f e b

• m

a j

• a

u g

• n
• v
• f

e b

• 1

m a j

• 1

a u g

• 1

n

• v
• 1

f e b

• 2

2

• m

a y a u g

• 2

5% 7% 9% 11% 13% 15%

135

Market shares, corporate deposits

5 10 15 20 25 30 35 40 45 50 Denmark Finland Norway Sweden Feb 02 June-Aug 02

%

136

Corporate deposits - market volume & share

5 10 15 20 nov-99 feb-00 maj-00 aug-00 nov-00 feb-01 maj-01 aug-01 nov-01 feb-02 02-may aug-02 40% 43% 46% 49% 52% 55% 100 200 300 jun-00 sep-00 dec-00 mar-01 jun-01 sep-01 dec-01 mar-02 jun-02 14% 16% 18% 20% 22% 24% 26% 28% 100 200 300 400 nov-99 feb-00 maj-00 aug-00 nov-00 feb-01 maj-01 aug-01 nov-01 feb-02 maj-02 10% 12% 14% 16% 18% 20% 22% 24% 26% 100 200 300 nov-99 feb-00 maj-00 aug-00 nov-00 feb-01 maj-01 aug-01 nov-01 feb-02 02-may aug-02 10% 12% 14% 16% 18% 20%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share

137

Market shares, personal customer lending

5 10 15 20 25 30 35 Denmark Finland Norway Sweden

Feb-02 June-Aug 02

%

138

Personal customer lending - market volume & share

10 20 30 40 nov-99 feb-00 maj-00 aug-00 nov-00 feb-01 maj-01 aug-01 nov-01 feb-02 02-may aug-02 27% 29% 31% 33% 35% 37% 250 500 750 1000 a u g

• 9

9 n

• v
• 9

9 f e b

• m

a j

• a

u g

• n
• v
• f

e b

• 1

m a j

• 1

a u g

• 1

n

• v
• 1

f e b

• 2

10% 12% 14% 16% 18% 20% 100 200 300 400 500 600 nov-99 feb-00 maj-00 aug-00 nov-00 feb-01 maj-01 aug-01 nov-01 feb-02 02-may aug-02 6% 7% 8% 9% 10% 11%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share

50 100 150 200 250 jun-00 sep-00 dec-00 mar-01 jun-01 sep-01 dec-01 mar-02 jun-02 12% 14% 16% 18% 20% 22%

139

Market shares, corporate lending

5 10 15 20 25 30 35 40 45 50 Denmark Finland Norway Sweden

Feb 02 June-Aug 02

%

140

Corporate lending - market volume & share

10 20 30 nov-99 feb-00 maj-00 aug-00 nov-00 feb-01 maj-01 aug-01 nov-01 feb-02 02-may aug-02 40% 42% 44% 46% 48% 50% 250 500 750 1 000 1 250 1 500 1 750 n

• v
• 9

9 f e b

• m

a j

• a

u g

• n
• v
• f

e b

• 1

m a j

• 1

a u g

• 1

n

• v
• 1

f e b

• 2

m a j

• 2

10% 12% 14% 16% 18% 20% 100 200 300 400 500 nov-99 feb-00 maj-00 aug-00 nov-00 feb-01 maj-01 aug-02 nov-02 feb-02 02-may aug-02 10% 12% 14% 16% 18% 20%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share

50 100 150 200 250 300 350 jun-00 sep-00 dec-00 mar-01 jun-01 sep-01 dec-01 mar-02 jun-02 22% 24% 26% 28% 30% 32%

141

Investment funds - market volume & share

2 4 6 8 10 12 14 16 dec-98 sep-99 jun-00 mar-01 dec-01 sep-02 20% 22% 24% 26% 28% 30% 32% 34% 200 400 600 800 1000 d e c

• 9

8 s e p

• 9

9 j u n

• m

a r

• 1

d e c

• 1

14% 16% 18% 20% 22% 24% 20 40 60 80 100 120 140 160 dec-98 sep-99 jun-00 mar-01 dec-01 mar-02 aug-02 4% 6% 8% 10% 12% 14%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Nordea market share

50 100 150 200 250 300 dec-98 sep-99 jun-00 mar-01 dec-01 jul-02 20% 22% 24% 26% 28% 30% 32%

142

20 40 60 80 100 120 140 160 180 dec-98 mar-99 jun-99 sep-99 dec-99 mar-00 jun-00 sep-00 dec-00 mar-01 jun-01 sep-01 dec-01 mar-02 jun-02 15% 17% 19% 21% 23% 25%

Market volume Market share, Nordea

Investment funds, Nordic region

Market volume and Nordea's market share

143

Investment funds, net inflow, Norway

Market volume, Nordea volume, and accumulated market share ytd

• 3 000
• 2 000
• 1 000

1 000 2 000 3 000 aug-00

• kt-00

dec-00 feb-01 apr-01 jun-01 aug-01

• kt-01

dec-01 feb-02 apr-02 jun-02 aug-02

• 50
• 40
• 30
• 20
• 10

10 20 30 40 50

Market net inflow Nordea net inflow Nordea %

% NOKm

144

Investment funds, net inflow, Finland

Market volume, Nordea volume, and accumulated market share ytd

• 400
• 200

200 400 600 800 1000 sep-00

• kt-00

nov-00 dec-00 jan-01 feb-01 mar-01 apr-01 maj-01 jun-01 jul-01 aug-01 sep-01

• kt-01

nov-01 dec-01 jan-02 feb-02 mar-02 apr-02 02-may jun-02 jul-02 aug-02 sep-02

• 16
• 8

8 16 24 32 40

Market net inflow Nordea net inflow Nordea %

% EURm

145

Investment funds, net inflow, Sweden

Market volume, Nordea volume, and accumulated market share ytd

• 2 000

2 000 4 000 6 000 8 000 10 000 12 000 14 000 sep-00 nov-00 jan-01 mar-01 maj-01 jul-01 sep-01 nov-01 jan-02 mar-02 maj-02 jul-02 sep-02

• 4

4 8 12 16 20 24 28

Market net inflow Nordea net inflow Nordea %

% SEKm

18bn 29bn 18bn

146

2 4 6 8 10 12 14 16 18 Copenhagen Helsinki Oslo Stockholm 2001 Jan-Sept 2002 %

Market share, equity dealing - Nordea Securities

54.6 11.3 39.0 12.8

Q3/02

72.1 13.2 47.4 16.9

Q2/02

116 Sweden 20 Norway 51 Finland 23 Denmark

Q2/01 EURbn Equity market turnover

147

Appendix

Financials

148

Expenses - breakdown

925

• 5

930 146 79 50 21 111 523 Q3/02 922

• 7

929 139 74 52 36 113 515 Q2/02 94 107 103 Information technology 2) 133 152 152 Other 833 912 915 Expenses

• 12
• 11
• 10
• f which investment activities

905 71 60 23 506 Q1/02 901 81 54 34 484 Q4/01 821 Expenses 72 Rents, premises and real estate expenses 45 Postage, telephone and office expenses 20 Marketing 469 Personnel 1) Q3/01 EURm

1) Profit related personnel expenses including profit-sharing systems were EUR 20m in Q3/2002 (Q2 2002: EUR 18m). 2) Refers to computer operations, service expenses and consulting fees. Total IT-related costs in Q3 2002, including personnel etc were EUR 202 (Q2 2002: EUR 220m).

149

63 64

10 20 30 40 50 60 70 Q2/02 Q3/02

Key figures

C/I ratio, banking %

59 65

10 20 30 40 50 60 70 Jan-Sep 01 Jan-Sep 02 C/I ratio, banking, excl. inv. earnings %

150

Total IT-related expenses*

200 210 205 220 202

50 100 150 200 250 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02

EURm

*Computer operations, service expenses, consultants and personnel

151

• 4

28 11 31 39 Investment earnings, banking

• 49

4

• 34
• 26
• 13

Operating profit, Life Insurance 399

• 42
• 4

419 4

• 66

481

• 925
• 404
• 521

1,406 34 127 371 874 Q3/02 315

• 44
• 87

464 17

• 56

503

• 922
• 408
• 514

1,425 37 137 396 855 Q2/02 364

• 42
• 31

429 15

• 63

477

• 905
• 399
• 506

1,382 29 136 380 837 Q1/02 228

• 35
• 24

340 29

• 213

524

• 821
• 354
• 467

1,345 36 131 322 852 Q4/01 856 Q3/01 37 Other 474 Profit before inv. earnings and insurance 35 Equity method

• 56

Loan losses 495 Profit before loan losses 468 Operating profit

• 39

Goodwill depreciation 1 Operating profit, General Insurance

• 901

Expenses

• 419

Other expenses

• 482

Personnel expenses 1,396 Income 128 Trading 379 Commission income Net interest income EURm

Operational income statement

152

Statutory income statement

• 2,598
• 2,865

Total expenses

Minority interest

1,441 1,112 Total operating profit

19

• 283

Pension adjustments

• 415
• 265

Taxes

• 315
• 172

Loan losses, net

• 2
• 13

Change in value of property taken over for protection of claims 60 36 Profit from companies accounted for under the equity method 1,505 1,299

Operating profit, banking

• 64
• 187

Operating profit, insurance 564

1,448

• 240

1,082 1,534 4,304 129 177 1,170 33 2,796

• 4,985

7,781 Jan-Sept 2002 1,762

Profit before Loan losses

4,360

Total income

General administrative expenses 1,419 Personnel expenses

• 982

Other expenses

• 197

Depreciation according to plan 2,776 Net interest income 258 Net result from financial operations 213 Other income 45 Dividends received 1,068 Net commission income

1,045 Net profit

• 5,902

Interest expenses 8,678 Interest income Jan-Sept 2001 EURm

Reconciliation of operational and statutory accounts

15) 106 15) 22

• 128

Goodwill depreciation 11) 122

• 122

Operating profit, general insurance 11) 42

• 42

Operating profit, life insurance 1,112 11 1,101 Operating profit

• 265
• 265

Taxes 564

• 283
• 186

1,298 36

• 13
• 172

1,447

• 2,856
• 240
• 1,082
• 1,534

4,303 127 177 1,170 33 2,796 Statutory Jan-Sept 2002

• 11
• 95
• 13

13

• 95
• 95
• 240

134 11 Other adjustment

• 186

Insurance

• 81

81 81

• 9
• 5
• 4

90 14

• 24

33 67 Investment activities 13 201

• 400

23 163 Trading income 564

• 272

81 1,312 36

• 185

1,461

• 2,752
• 1,211
• 1,541

4,213 100 400 1,147 2,566 Operational Jan-Sept 2002 4) 3) 5) 2) 1) 10) 10) 8) 7) 9) 6) 13) 16) 16) 14).15) 14) 13) Total expenses Operating profit, insurance Allocation to Pension Foundation Minority interests Net profit Loan losses, net Change in value property taken over Profit from companies – equity method Profit excluding investment earnings Investment earnings, banking 5) Profit before Loan losses Total income Personnel expenses Other expenses Depreciation according to plan Net commission income Net result from financial operations Other income Trading Dividends received Net interest income EURm

153

154

Reconciliation of operational and statutory acounts

1. Net interest income from trading transactions in Nordea Markets (for example interest related to swaps etc.), reclassified as trading income in the operational accounts. Mainly customer trading. 2. Commission income in Nordea Markets, reclassified as Trading income in the operational accounts. 3. Net result from financial operations from trading transactions in Nordea Markets (foreign exchange and derivatives trading) reclassified to trading income in the operational accounts. Mainly customer trading. 4. Other income in Nordea Markets, reclassified to trading income in the

• perational accounts.

5. Trading income in the operational accounts, equals income in Nordea Markets (incl. income allocated to Business Areas), reclassified from the statutory accounts as described in 1) through 4) above. 6. Net interest income from Treasury’s portfolio of certificates and bonds, reclassified as investment earnings, banking in the operational accounts. 7. Securities gains/losses on Treasury’s investment portfolios (certificates, bonds and equities), reclassified from Net result form financial operations in the statutory accounts, to investment earnings, banking in the

• perational accounts.

8. Real estate gains/losses. Reclassified from Other income in the statutory accounts to Investment earnings, banking in the operational accounts. 9. Dividends received on equities (non-insurance portfolio), reclassified as Investment earnings in the operational accounts. 10. Costs related to investment activities, reclassified from relevant category

• f cost in the statutory accounts, to being reported on a net basis as part
• f investment earnings, banking in the operational accounts.

11. Operating profit for insurance, in separate lines for general and life in the

• perational accounts.
• 12. Depreciation of goodwill related to insurance included in one-line

consolidation of insurance activities (Operating profit, insurance) in the statutory accounts, reclassified to Depreciation of goodwill in the

• perational accounts.

13. Pension adjustments accounted for according to Swedish regulations in the statutory accounts. Reclassified to Personnel expenses in the Operational accounts. 14. Depreciation according to plan, including goodwill within banking is separate line in the statutory accounts. Depreciation excluding goodwill is reclassified as Other expenses in the operational accounts. 15. Depreciation of goodwill, see footnote 14) (Banking) and 12) (Insurance), shown as part of Depreciation according to plan in the statutory accounts, as opposed to separate line item in the operational accounts. 16. Change in value of property taken over in the statutory accounts, reclassified as Loan losses, net, in the operational accounts. 17. The difference between statutory accounts and operational accounts at the Total operating profit level is related to Pension adjustments (Sweden),

• nly. There is no difference between the two at the Net profit level.

155

Bank ratings

Individ. Long Short Long Short Long Short BFSR A1 P-1 Norgeskreditt Aa1 Nordea Kredit A-1 Aa3 P-1 Nordea Hypotek B AA- F1+ A+ A-1 Aa3 P-1 B- Nordea Bank N B AA- F1+ A+ A-1 Aa3 P-1 B Nordea Bank D B AA- F1+ A+ A-1 Aa3 P-1 B Nordea Bank S B AA- F1+ A+ A-1 Aa3 P-1 B Nordea Bank F Fitch S&P Moody’s

156

Insurance ratings

A- (excellent)** BBB* Tryg-Baltica Forsikring, internationalt Forsikringsselskab A/S A3 Tryg Forsikring A/S A- (excellent)** BBB* Tryg-Baltica International (UK) Ltd BBB+* Dansk Kautionsforsikrings-Aktieselskab A.M.Best S&P Moody’s

* On CreditWatch with developing implications ** On CreditWatch with negative implications

157

Appendix

Nordea share

158

60 80 100 120 140 160 180 Nordea DJ Stoxx European Banks

Nordea share price vs DJ Stoxx European banks

6 March 2000* - 10 October 2002

* Date of announcement of MNB/Unidanmark merger June-02 June-00 June-01

159

500 1000 1500 2000 2500 Jan Feb March April May June July Aug Sept Danske Bank SEB FSPA Handelsbanken Nordea

Nordic bank shares, liquidity 2002

EURm

160

Shareholder structure, September 2002

18.6% 9.1% 8.0% 6.1% 4.0% 21.8% 2.5% 29.9% International investors Swedish institutions Swedish government Danish institutions Finnish institutions Finnish public Danish public Swedish public

Number of shareholders approx 510,000

161

Largest registered shareholders

September 2002

0.36 % 10,000,001 Öms Livförsäkringsbolaget Suomi 47.3% 1,382,196,986 Total for the 20 largest shareholders 3.51 % 102,529,423 Nordea Danmark fonden 3.17 % 92,609,801 Tryg i Danmark smba 18.55 % 542,015,102 Swedish state 3.89 % 113,635,626 Alecta 3.14 % 91,890,155 Robur fonder 1.91 % 55,723,714 Nordea fonder 1.73 % 50,581,966 SHB/SPP fonder 1.72 % 50,186,590 Fjärde AP-fonden 1.46 % 42,712,867 SEB fonder 1.20 % 35,165,853 Skandia 0.36 % 10,474,666 Solidium Oy (Finnish state) 0.40 % 12,813,229 Länsförsäkringar fonder 0.47 % 13,897,343 T Rowe Price Funds 0.54 % 15,849,033 Länsförsäkringar 0.62 % 18,104,300 Nordea Bank Sverige vinstandelsstiftelse 0.89 % 26,000,000 AMF Pension 1.08 % 31,533,953 Tredje AP-fonden 1.08 % 31,570,287 Andra AP-fonden 1.19 % 34,903,077 Första AP-fonden Percent Number of shares Shareholder

162

Number of shares

2,928,063,177 40,008,000 Buyback Market Aug-Sept 2002 2,968,071,177 2,405,087 Conversions** New issue June, 2002 2,928,108,227 45,050 Conversions** New issue Sept, 2002 2,965,666,090 17,000,000 Buyback Market April, 2001 2,928,105,073 3,154 Other holdings of own shares 2,982,666,090 3,473,373 Conversions* New issue 2000-2001 2,979,192,717 18,348,501 Unidanmark New issue June, 2000 2,960,844,216 869,776,488 Unidanmark New issue April, 2000 2,091,067,728 815,800,287 Merita New issue Jan, 2000 Outstanding shares Number of shares issued Subject Type of transaction Date *Convertible bond conversions Aug 29, 2000 – Dec 31, 2001 ** Convertible bond conversions 2002 Fully diluted average number of shares Jan-Sept 2002 2,983,028,168

163

52 50 71.5 55.5 36.8 Share price, end of period, SEK

• 0.07

3.92

• Q3/02

1) Pro forma incl. Unidanmark

14.0 0.58 3.74

SEK

2.00 2000 11.0 10.6 11.3 P/E ratio 0.53 0.55 0.53 Earnings per share, EUR 2.68 3.43 4.00 Shareholders equity per share, EUR

SEK 1.64 SEK

1.75

EUR

0.23 Dividend 1998 19991) 2001

Data per share

164

Appendix

Other

165

Provisioning policy

Corporate customers classified according to internal rating Quarterly review of loan portfolio Provisions and action plans reviewed for risk classified customers New legislation in Sweden introducing general provisions Nordea´s general provisions are unchanged

166

Business structure, October 1, 2002

Corporate Long Term Savings & Life Household Planning and Control Investment Management Investment Funds Long Term Savings & Life Nordic Private Banking Group IT Electronic Banking* Global Operations Services* Group Credit and Risk Control Carl-Johan Granvik Group Treasury Group Planning and Control Group Legal Group CEO Lars G Nordström Corporate Banking Shipping and International Banking Investment Banking, Nordea Securities Markets Group Support and Procurement Group Human Resources Group Identity and Communications Group Management Secretariat Production and Productivity Market Support Product Companies Group Finance Investor Relations Group Corporate Development Group Compliance European Private Banking Life & Pensions Board of Directors Internal Audit Activity Regional Banks Denmark Regional Banks Finland Regional Banks Norway Regional Banks Sweden Regional Banks Baltic Sea region

*) Customer relations parts of these units will be transferred to business areas.

Retail Banking Kari Jordan Asset Management & Life Christian Clausen Group Processing and Technology Markku Pohjola Group Corporate Centre Arne Liljedahl Group Staffs Peter Schütze Corporate and Institutional Banking Tom Ruud

167

Tryg A/S* Denmark

Legal structure

Nordea AB (Publ) Sweden Nordea Securities AB Sweden Nordea INS Holding A/S Denmark Nordea Asset Management AB Sweden Nordea Bank Finland Plc Finland

Nordea Liv AS Norway Nordea Pension Danmark, Livsfor- sikringsselskab A/S Denmark

Various subsidiaries Various subsidiaries

Various subsidiaries Various subsidiaries Tryg Forsikring A/S* Denmark Nordea Life Assurance II Sweden AB (publ) Sweden Various subsidiaries Vesta Liv Holding AS Norway Various subsidiaries Various subsidiaries

Nordea Bank Sweden AB (publ) Sweden Nordea Bank Norge ASA Norway Nordea Bank Danmark A/S Denmark

*Currently subject to sale as announced on 19 June 2002

Nordea Life Holding AB

Nordea Life Assurance Finland Nordea Life Assurance I Sweden AB (publ) Sweden Vesta Forsikring AS* Norway Various subsidiaries

168

Group Executive Management, October 1, 2002

Lars G Nordström Group CEO Christian Clausen Head of Asset Management & Life Carl-Johan Granvik Head of Group Credit and Risk Control Kari Jordan Head of Retail Banking Arne Liljedahl Head of Group Corporate Centre, Group CFO Markku Pohjola Head of Group Processing and Technology, Deputy Group CEO Tom Ruud Head of Corporate and Institutional Banking Peter Schütze Head of Group Staffs

169

Appendix

Macro statistics and estimates

Source: Nordea Economic Research Estimates from August 2002

170

Macro data

% 2001 2002e 2003e Gross domestic product DK 1.0 1.3 1.9 FI 0.7 1.5 3.5 NO 1.2 1.8 1.8 SE 1.2 1.9 2.6 Inflation DK 2.4 2.4 2.3 FI 2.7 2.2 1.8 NO 3.0 1.3 2.3 SE 2.6 2.3 2.1 Private consumption DK 0.8 2.3 2.3 FI 1.1 2.8 3.5 NO 2.5 3.3 2.2 SE 0.2 2.6 2.3 Unemployment DK 5.1 5.0 5.0 FI 9.1 9.2 9.0 NO 3.6 3.8 4.2 SE 4.0 4.0 3.7

171

Market development - GDP

2.6 1.8 3.5 1.9 2003e 1.9 1.2 Sweden 1.8 1.2 Norway 1.5 0.7 Finland 1.3 1.0 Denmark 2001 %

Source: Nordea Economic Research, August 2002

2002e 2000 3.6 2.3 0.6 3.0

172

Gross domestic product

• 8
• 6
• 4
• 2

2 4 6 8 Q1/90 Q1/91 Q1/92 Q1/93 Q1/94 Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q1/00 Q1/01 Q1/02 Denmark Finland Norway Sweden

Change in % YoY

173

Inflation

• 2

2 4 6 8 10 12 14 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Denmark Finland Norway Sweden

%

174

Private consumption

• 8
• 6
• 4
• 2

2 4 6 8 10 Q1/90 Q1/91 Q1/92 Q1/93 Q1/94 Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q1/00 Q1/01 Q1/02 Denmark Finland Norway Sweden Change in % YoY

175

Household savings ratio

2 4 6 8 10 12 1993 1994 1995 1996 1997 1998 1999 2000 2001 Denmark Finland Norway Sweden

%

176

Unemployment

5 10 15 20 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Denmark Finland Norway Sweden

% of labour force

177

Credit growth total lending to non-bank sector

• 10
• 5

5 10 15 96 March 96 Sept 97 March 97 Sept 98 March 98 Sept 99 March 99 Sept 00 March 00 Sept 01 March 01-sep 02-mar Denmark Finland Norway Sweden

Change in % YoY

178

Bankruptcies

200 400 600 800 1000 1200 1400 1600 1800 Q1/94 Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q1/00 Q1/01 Q1/02 Denmark Finland Norway Sweden

Number of bankruptcies per month

179

Exchange rate, USD/Euro

0,8 0,85 0,9 0,95 1 1,05 1,1 1,15 1,2 1-1 -98 1-4 -98 1-7 -98 1-10 -98 1-1 -99 1-4 -99 1-7 -99 1-10 -99 1-1 -00 1-4 -00 1-7 -00 1-10 -00 1-1 -01 1-4 -01 1-7 -01 1-10 -01 1-1 -02 1-4 -02 1-7 -02 1-10 -02

USD

180

Exchange rate, Euro/SEK

8 8,4 8,8 9,2 9,6 10 1-1 -98 1-4 -98 1-7 -98 1-10 -98 1-1 -99 1-4 -99 1-7 -99 1-10 -99 1-1 -00 1-4 -00 1-7 -00 1-10 -00 1-1 -01 1-4 -01 1-7 -01 1-10 -01 1-1 -02 1-4 -02 1-7 -02 1-10 -02

SEK

181

Exchange rate, Euro/NOK

7 7,5 8 8,5 9 9,5 10 1-1 -98 1-4 -98 1-7 -98 1-10 -98 1-1 -99 1-4 -99 1-7 -99 1-10 -99 1-1 -00 1-4 -00 1-7 -00 1-10 -00 1-1 -01 1-4 -01 1-7 -01 1-10 -01 1-1 -02 1-4 -02 1-7 -02 1-10 -02

NOK

182

Oilprice development, Brent, USD/Barrel

5 10 15 20 25 30 35 40 45 50 1-1 -90 1-1 -91 1-1 -92 1-1 -93 1-1 -94 1-1 -95 1-1 -96 1-1 -97 1-1 -98 1-1 -99 1-1 -00 1-1 -01 1-1 -02

Dollar

183

Stock exchange indices

200 400 600 800 1000 1200 1400 31-1 -97 31-5 -97 30-9 -97 31-1 -98 31-5 -98 30-9 -98 31-1 -99 31-5 -99 30-9 -99 31-1 -00 31-5 -00 30-9 -00 31-1 -01 31-5 -01 30-9 -01 31-1 -02 31-5 -02 30-9 -02 HEX Index Affärsvärldens General Index Oslo Total Index KFX Index

Index 100 = 1990

184

Money market, 3 months rates

2 3 4 5 6 7 8 9 1

• 1
• 9

8 1

• 5
• 9

8 1

• 9
• 9

8 1

• 1
• 9

9 1

• 5
• 9

9 1

• 9
• 9

9 1

• 1
• 1
• 5
• 1
• 9
• 1
• 1
• 1

1

• 5
• 1

1

• 9
• 1

1

• 1
• 2

1

• 5
• 2

1

• 9
• 2

Denmark Finland Norway Sweden

%

185

Government bond, 10 year

3 3,5 4 4,5 5 5,5 6 6,5 7 7,5 1-1 -98 1-4 -98 1-7 -98 1-10 -98 1-1 -99 1-4 -99 1-7 -99 1-10 -99 1-1 -00 1-4 -00 1-7 -00 1-10 -00 1-1 -01 1-4 -01 1-7 -01 1-10 -01 1-1 -02 1-4 -02 1-7 -02 1-10 -02 Denmark Finland Norway Sweden

%

186

Financial calendar 2002/2003

Capital Markets Day will be arranged on 18 November 2002 in London Full year report 2002 will be published on 19 February 2003 Q1 report 2003 will be published on 24 April 2003 AGM will be held on 24 April 2003 Q2 report 2003 will be published on 20 August 2003 Q3 report 2003 will be published on 29 October 2003

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