Interim Report January – September 2007 Press conference 25 October 2007 Christian Clausen President and Group CEO
Strong results Income EUR 5,744m, up 9% (EUR 5,268m in the first nine months 2006*) � Strong volume growth in all key areas � Expenses EUR 2,993m, up 7% (EUR 2,806m) � Gap between income and cost growth of 2.4%-points* � Limited impact from market turmoil � Profit before loan losses EUR 2,751m, up 12% (EUR 2,462m *) � Risk adjusted profit EUR 1,798m, up 17% (EUR 1,539m*) � Net profit EUR 2,278m, up 10% (EUR 2,078m*) � Return on equity 19.5% (20.7%*) � Cost/income ratio down to 52% (53%*) � Positive net loan losses of EUR 54m (EUR 175m) � Earnings per share EUR 0.87, UP 9% (EUR 0.80*) � * Excluding the capital gain of EUR 199m form the divestment of International Moscow Bank (IMB) in third quarter 2006 2
Operating income up 9% YoY Strong growth in Net interest income – up � EURm 10% 6 000 5 744 Double digit lending growth compensating for margin � pressure 5 500 5 268 Increased deposit volumes and improved margins � 5 000 Increased contribution from New European Markets � 4 500 Net commission income up 6% 4 000 � 3 500 Mainly savings and lending commission � 3 000 Net gains/losses up 20% � 2 500 Strong performance considering difficult market conditions � 2 000 Up 13% in customer areas driven by an increased product � 1 500 penetration of corporate segment 1 000 Contribution from OMX holding � 500 Q3oQ3 0 Revenues up 10% � * Jan-Sep 06 Jan-Sep 07 Net interest income up 12% � Net gains/losses up 18% � * Excl. capital gain from sale of IMB shares 3
Limited impact on Nordea from international market turmoil Insignificant consequences on Nordea’s funding operations � � Well diversified funding base � Prudent liquidity management � Good reception of the Nordea name in the market � Limited group P/L effects from market turbulence � Limited exposure to sub-prime counterparts and corporate bonds � Lower net gains/losses on items at fair value following seasonal slowdown in customer activity and certain valuation losses in market making portfolios � Performance in the quarter demonstrates the low risk profile of Nordea’s operations � A somewhat slower growth in business volumes is expected in the medium term – compensating effect from stabilising or widening lending margins 4
Cost increase in line with expectations Cost increase YoY (Jan-Sep) Moderate cost growth reflecting � 7% 6,7% 5,8% 6% implemented growth strategy and related 4,9% 5% investments 4% 3% Number of employees in New European � 2% 1% Markets up 1,450 to 3,180 0% Reported Excl. banking Excl. banking Orgresbank explaining close to 1%-point operations in Russia operations in Russia � and variable salaries Cost growth according to plan Underlying wage inflation gradually � increasing 6,9% 7% 6,7% 6,3% 6% Lower cost growth expected in Q4 � 5% compared to growth rate Ytd 4% 3% 2% 1% 0% Q107/Q106 Q207/Q206 Q307/Q306 5
Profit before loan losses up 12% Jan – Sep 2007 EURm 3 000 Strong top line growth drives the profit 2 751 � increase 2 462 2 500 Strong contribution from all Customer � 2 000 Areas - consistent delivery of Nordea’s organic growth strategy 1 500 1 000 500 0 * Jan - Sep 06 Jan - Sep 07 * Excl. capital gain from sale of IMB shares 6
Gap between income and cost growth on track %-points Gap of 2.4%-points for the first 9 months � 4 � Income 9.0% 3,4 3,2 � Costs 6.6% 3 � Gap of 3.1%-points excl. Russia 2,4 Continued quarterly improvement – in � line with full year expectations 2 Unchanged outlook for full year, gap in � the area of 2-3%-points, incl. Russia 1 0,5 0 Q1/07 Q2/07 Q3/07 Jan-Sep 07 7
Strong and well diversified credit portfolio Net loan losses, EURm � Continued flow of recoveries and limited new 0 provisions in the first nine months -10 -13 -13 -20 � Credit quality remains stable cross sectors – improved -30 -28 corporate ratings -40 -50 � 14 quarters with net recoveries -55 -60 -70 � EUR 54m the first nine months -80 -82 � Total allowances amount to approx. EUR 925m -90 -100 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 � Well diversified lending portfolio Total allowances EURm � 56% corporate and 44% household customers 1 400 1 188 � 90% of lending in Nordic countries 1 200 1 118 1 032 1 000 941 925 800 600 400 200 0 8 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07
On the route to Great Nordea Profit orientation Ambitious vision & targets Clear growth strategy Strong customer oriented values & culture 9
Ambitious financial targets Long-term financial targets Target In the top quartile of Total Shareholder Return (%) European peer group Risk-adjusted profit (EURm) Double in 7 years Return on Equity (%) In line with top Nordic peers Capital structure policy Policy Dividend payout-ratio > 40% of net profit Tier 1 capital ratio > 6.5% 10
11 B (2/1 2007 – 28/9 2007) Total shareholder return (TSR) Ytd 2007 a n k % A o -25 -15 l l 15 25 35 45 55 f i -5 e I 5 r d l a I r n i s d h B a n k H b o B s a r c l a y s R B O S D a n s S k w e e d b E a r n s k t e B S a U n o n k c i c i e r e t e d G i t o e n e r a l e B N D P n B N S O a R n t a n d e r S E B L l o y d s C o m S H m B e r z b a Top quartile n k K B C N o r d A e 10,6 B a N A m r o
Risk-adjusted profit well above long term target EURm Up 17% Jan - Sep 07 � 2000 1 798 Strong revenue generation and � 1 539 positive gap 1500 Doubling of risk adjusted profit in 7 � years implies 10% annual growth rate 1000 500 0 Jan - Sep 06 Jan - Sep 07 Risk adjusted profit 12
Return on Equity (RoE) – in line with target % 25 Nordea’s RoE above Nordic average � 22,6 Combined focus on � 19,6 19,5 19,5 20 18,8 Organic growth � Operational efficiency � 15 Capital management � 19.5% Jan - Sep 2007 � 10 5 0 FY 2006 Jan - Jun 07 Jan - Sep 07 Nordea Average Nordic Peers (Danske, SEB, SHB, Sw edbank, DnBNor) 13
Profitable organic growth Exploit growth potential in Supplement Nordic growth Increase business with global and European strategy with investments in existing customers monoline businesses based New European Markets on strong competencies � Increase business with � Creating value through � Successful track record Nordic customers and profitable organic growth with niche strategy attract new customers – Growth Plan Poland � Building strong business � Potential to sell more � Selective growth strategy in the European private value added services to in the Baltic countries banking market corporate customers � Access to fast growing � Global lead position in Russian market - Shipping Orgresbank 14
Growth strategy continues to pay off Each area has clearly identified initiatives � Private Banking Segments in focus � Gold customers � Small & Medium Corporates � Long term savings � Consumer credits and Cards Product areas in focus � Life insurance � Capital markets products Geographical markets � Growth Plan Sweden in focus � Russia, Poland & Baltics � Future branch Next level of operational Harmonise sales processes, efficiency � Nordea Transformation product deliveries and IT Program platforms 15
Increased number of customers in premium segments drives income growth Gold segment YoY (Jan - Sep) � Continued growth in business 12.8 % with Gold customers 4.9 % 7.6% 175 155 13% increase in business volume � 72 69 2.4 2.2 � Increased number of Gold customers � Up 8% in Q3, annualised 15.2% No. of customers Volume per Business volumes customer (mill) (EUR bn) (EUR'000) Increase in Gold customers, (‘000) 2 363 2 306 2 261 2 222 2 196 2 128 2 098 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 16
Nordic Private Banking – strong position and potential Private Banking segment YoY (Jan-Sep) � Increased number of Private 18.0 % 1,4 % Banking customers 46 16,3% 39 542 � Up 16% Q3/Q3 535 85 73 � Strong volume growth driven by strong customer inflow � Up 18% YoY 15.2% Volume per Business volumes No. of customers � Growth in volume per customer customer (‘000) (EURbn) (EUR'000) effected by new customers Increase in Private Banking customers, (‘000) entering with lower average asset base 85 83 81 75 � Growth in volume per customer also effected 73 72 69 by single outflow Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 17
Continued revenue growth in all Nordic Banking corporate segments Income growth (YoY) Double digit income growth � � Strong growth in corporate lending volumes 10% – clearly compensating for margin pressure 9% experienced in the period 6% � Increased contribution from transactions within corporate and acquisition finance � Improved deposit margins � Increased cross-selling of Markets-related Small Medium Large incl. Corporate Merchant Banking products to corporate clients Total revenues in Markets related to Nordic Banking customers (EURm) 175 144 150 140 128 127 126 116 125 100 100 75 50 25 0 Q106 Q206 Q306 Q406 Q107 Q207 Q307 18
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