[PPT] - Investor Presentation 19 July 2006 CEO Presentation Strong results PowerPoint Presentation

SLIDE 1

Investor Presentation 19 July 2006

SLIDE 2

CEO Presentation

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Strong results reflecting robust and diversified business mix – RoE up to 21.2%

Net profit up 17% to EUR 1,405m (EUR 1,200m in H1 2005) Operating profit up 14% to EUR 1,790m (EUR 1,572m)

Operating profit in Q2 up 5% to EUR 932m (EUR 884m Q2/05)

Income up 8% to EUR 3,544m (EUR 3,276m) – Net interest income up 4% Costs up 3%, excluding Life up 2% Cost/income ratio continued down to 53% from 55% Positive net loan losses of EUR 120m (EUR 107m) – 9th consecutive

quarter with net recoveries

Earnings per share EUR 0.54 (EUR 0.45), up 20% Return on equity 21.2% (19.4%)

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Profitable growth in all Business Areas – continued strong performance in key growth areas

No. of core customers increased by 6%

Consumer lending up 10%; No. of credit cards up 30% Strong growth in business volumes with small and medium sized

enterprises (SMEs)

Assets under Management up 11%; Nordic Private Banking

customer base increased by 10%

Net written premiums in Life up 35% Continued customer driven growth in capital market activities Execution of growth plans in Sweden and in Poland & Baltics is

progressing

SLIDE 5

5

%

ECB as well as Central banks in

Sweden and Norway increased interest rates in H1 2006

Trend with increasing long term

interest rates continued

Interest rates still at historical low level

Effects on Nordea

Improved deposit margins
Increased demand for hedging

products

Slightly lower financial buffers in Life
Insignificant effects on loan demand

and credit quality

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 ECB Central Bank Sweden Central Bank Norway 5 year EUR 5 year Sweden 5 year Norway

Changing market environment – interest rates

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6 90 95 100 105 110 115 120 2 / 1 / 6 1 6 / 1 / 6 3 / 1 / 6 1 3 / 2 / 6 2 7 / 2 / 6 1 3 / 3 / 6 2 7 / 3 / 6 1 / 4 / 6 2 4 / 4 / 6 8 / 5 / 6 2 2 / 5 / 6 5 / 6 / 6 1 9 / 6 / 6

MSCI European index MSCI Nordic index %

International equity market turmoil

in Q2/06

Equity indexes down approx. 10%

since mid May

Increased uncertainty and risk

premium

Effects on Nordea

Impact on savings related

commissions – limited in Q2

Switch from equity to interest funds

(59% fixed income funds end Q2)

Increased demand for structured

products

Lower investment return for Life

Changing market environment – equity markets

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7

Operating profit

EURm YoY

Up 14%
Profitable growth in all BAs – in total
perating profit up 20%
Business model and growth strategy

continues to pay off

Robust and diversified business mix

limited impact from volatile markets

Decision to increase costs in

profitable growth areas, eg long term savings, Growth Plan Sweden and Poland & Baltics

Q2oQ1

Up 9% - despite challenging market

conditions for Markets and Treasury

Large loan loss recoveries

688 728 748 858 932 884

100 200 300 400 500 600 700 800 900 1,000 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

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Continued growth in operating income

EURm YoY

Up 8%
Increased focus on top line growth
Steady increase in net interest income
Volume growth more than

compensates for margin pressure

Commission income up 10%

Savings related commissions up 12% Card commissions up 10%

Net/gains losses up 28%

strong increase in customer driven financial

transactions

1,785 1,582 1,601 1,696 1,759 1,694

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

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Continuous increase in earnings per share

rolling 12 months

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

EUR

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Revenue growth in Nordea

3,276 Income H1/06 Lending growth in Retail/CIB Lending margin pressure Savings: AM, Life, brokerage and savings accounts Markets + 132

121

+ 97 + 79 Income H1/05

EURm

3,544 + 81 Other*

* Including current accounts

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Unchanged cost focus

Reported costs up 3%
Costs excl. Life up 2%
In line with increased growth focus
EUR 30m of cost increase related

to investments in growth areas

1,816 1,878 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 H1/05 H1/06 EURm

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Cost management culture firmly established

Since 2002 total costs in nominal

terms have decreased by 6% and in real terms around 15%

Nordea accepts a moderate

increase in costs in the present strong market environment

to capture profitable growth opportunities Nordea has flexibility and ability to adjust

accordingly if macro environment changes

3,655 3,668 3,903 3,835 1,878 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2002* 2003* 2004 2005 H1/06 EURm *Adjusted for Life, leasing, group investments and net of acquisitions/divestments. 2002 includes Postgirot

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Cost/income ratio continues downwards

Down to 53% in H1

income up 8% costs up 3%

Continuous efficiency

improvements

Delivery in line with financial targets

60 53 56 10 20 30 40 50 60 70 80 2004 2005 H1/06 %

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Gap between income and cost development

Percentage points

Gap of 5%
Capture profitable revenue
pportunities
Top line increasingly contributing
Maintaining a gap secures delivery
f net profit and RoE

high value creation

Business model in Life focusing on

long term value creation and profitability

1 7 5 6 7 1 2 3 4 5 6 7 8 9 10 2003 2004 2005 H1/06

Gap excl. Life

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Key growth areas – progress already visible

Accelerate market position within consumer credits incl. cards
Continue to leverage on strong position within long-term savings, eg

Private Banking and Life

Strengthen the position in Sweden – focus on advisory services
Harness Nordea’s leading position in capital markets – leveraging

Nordea’s customer base. Untapped potential among SMEs

Use the mortgage product as a potential customer acquisition vehicle –

case Norway

Further position Nordea successfully in the Baltics, Poland and Russia

Increasing the number of core clients

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134 103 154 111

No. of customers

(m) Volume per customer (EUR'000) Business volumes (EURbn)

1.3 1.4

Increased number of core customers and volumes

Key elements in the programmes offered to

the customers:

more favourable prices the more business

customers do - for core customers a named personal banking adviser at their service

transparent pricing three levels: Basic, Intermediate and Core

Key focus on increasing:

customer satisfaction and loyalty business volume per customer

Strong success to date
no. of customers and business volume per

customer increased in core segment drive the improved earnings Strong growth in core segment H1/05 to H1/06 6.4% 7.4% 14.3%

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Accelerate market position within consumer credits and cards

EURbn YoY

Consumer lending up 10%
645,000 new cards issued
In total 5.3 million cards issued
f which approx. 25% credit cards
no. of credit cards up 30%

Q2oQ1

Consumer lending up 5%

annualised 20%

Growth strategy and penetration of

customer base is paying off

Margins basically unchanged

adjusting for business mix

Card commissions up 9%

12.9 13.2 13.5 13.8 13.9 14.2 14.9

2 4 6 8 10 12 14 16 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Consumer finance lending

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Continue to leverage on strong position within long- term savings – Private Banking

EURbn

Strong asset growth in Nordic Private

Banking

driven by 10% increase in customer base strong performance despite turbulent market

conditions in Q2

net inflow in Q2 18% annualised result of roll out of new common advisory

concepts, particularly in Norway and Sweden

AuM up 15% YoY

29 31 33 34 36 37 8 8 8 9 9 9 5 10 15 20 25 30 35 40 45 50 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

European private banking Nordic private banking

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Continue to leverage on strong position within long term savings – stepwise increase in premiums in Life

EURm

Net written premiums up 35% H1oH1

up 49% Q2oQ2

Unit linked share of premiums 41% H1
Increased penetration in the customer

base – successful cooperation between Life and Retail

Nordea’s share of signed agreements in

Mandatory Company Pension (MCP) Norway well above 25%

Market share of new written premiums
n private market 7.5% in Sweden end

March

590 458 404 607 582 560 198 187 174 474 390 404

100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Traditional insurance Unit linked

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Capturing untapped potential in Sweden proceeding according plan More than 150 additional Personal banking advisors and specialists

within private Banking and corporate pension recruited

equals around 60% of the intended inflow of additional specialists to further grow

business in Sweden

Four new sales and advisory venues opened during H1

in total it is expected to establish around 10 new venues in 2006

Strengthen the position in Sweden – focus on advisory services

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Harness Nordea’s leading position in capital markets – untapped potential among SMEs

Nordea Markets

Leveraging Nordea’s customer base
Customer driven growth
Focus on customer solutions rather

than product push

strong concepts in risk management and

asset-liability management

increased capabilities in derivatives

F/X and fixed income still the

strongest profit contributors

structured products increasing

Risk committed to customer activities
Costs in Markets largely unchanged

since 2001

reduced no. of FTEs and IT consolidation

100 200 300 400 500 600 700 2001 2002 2003 2004 2005 H1/06

Total income Total costs Operating profit

EURm

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Customer business drives increase in net/gains losses

EURm YoY

Net gains/losses in BAs increased by 41%

to EUR 374m

Strong success in selling Markets products

in Retail and CIB

Strong growth in customer driven business

structured products strong and stable core business in F/X and

fixed income trading

Q2oQ1

Treasury result down EUR 9m due to OMX

shares (compared with Q1 decrease of EUR 34m) - good inv. result excl. OMX

Life down following volatile markets

131 159 190 164

16

80

20
43

32 15 210 134

60
40
20

20 40 60 80 100 120 140 160 180 200 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Business Areas Treasury and eliminations

22

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Use the mortgage product as a potential customer acquisition vehicle – case Norway

Gradual increase in market share in Norwegian household market

for a number of years

Mortgages close to 12% Consumer lending close to 11%

Decision to offer more competitive client proposition in Norway

Nordea left customers’ interest rates unchanged 1 June despite rate hike 25bp by

Central Bank

mortgage margins in Norway are significantly higher than Nordic average Nordic convergence is certain to happen Nordea has the ambition to increase the competitive offer and market share mortgages a potential customer acquisition vehicle for additional business increased cross-selling potential

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Russia

Nordea’s strategy is to build its own presence in the Russian banking market to capture the

growth opportunities seen in the large market in the Baltic Sea region

Establish a fully controlled operation, either by obtaining a bank licence or through an

acquisition of a small to medium sized bank

As a result Nordea has signed and agreement to sell the holding of 23.4% in IMB to

Unicredit

Tax-free capital gain of approx. EUR 200m

Poland and the Baltic countries

Business activity in Poland and the Baltic countries continued to be strong during Q2

total lending increased by approx. 50% YoY mortgage lending grew by approx. 100% YoY Nordea continued to gain market shares in the fast growing housing loan markets

Further position Nordea successfully in the Baltics, Poland and Russia

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Fundamentals in the Nordic economies remain strong

GDP growth in Den, Fin, Nor, Swe expected to be in the 2.9-3.9%

range for 2006 and 2.1-2.9% in 2007

Rising inflation, however well in line with central bank’s targets

(approx. 2% in 2006-2007)

Robust increase in private consumption Moderate, and gradually falling unemployment rates Increasing disposable income Customers ability to service debt remain strong – less than 5% of

disposable income needed to service debts

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Outlook

Nordea’s growth strategy is paying off and progress increasingly

visible in key growth areas

No. of core clients continued to increase

Nordea will continue the successful execution of its organic growth

strategy

Despite rising interest rates and a somewhat uncertain outlook for

equity markets, Nordea is confident in reaching the ambition of at least 5 percentage points gap between revenue and cost growth for 2006

A moderate cost increase, in line with H1 expected for full year 2006

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CFO Presentation

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Income statement summary

14 1,572 1,790 Operating profit 17 1,200 1,405 Net profit 57 35 55 Equity method

5

165 156 Other income 107 120 Loan losses 3

36

3 6 8 28 10 4 Chg %

1,816
69
717
1,030

3,276 329 937 1,810 H1/05

44

Depreciation

739

Other expenses

1,878

Total operating expenses

1,095

Staff costs 3,544 Total operating income 421 Net gains/losses on items at fair value 1,028 Net fee and commission income 1,884 Net interest income H1/06 EURm

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Income statement summary

11 9 1

9

1 2 1 69 20

26

3 3 Chg % 884 858 932 Operating profit 705 665 740 Net profit 22 25 30 Equity method 61 58 98 Other income 101 31 89 Loan losses

914
35
364
515

1,694 214 484 913 Q2/05

933
23
367
543

1,759 242 507 927 Q1/06

21

Depreciation

372

Other expenses

945

Total operating expenses

552

Staff costs 1,785 Total operating income 179 Net gains/losses on items at fair value 521 Net fee and commission income 957 Net interest income Q2/06 EURm

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Net interest income

EURm YoY

Up 4%
Up 6% in Business Areas
Increased contribution from deposits on back
f higher interest rate level and volume growth
Total lending up 14%

mortgage lending up 14% SME lending up 13%

Continued pressure on lending margins in

certain areas

particularly in mortgages

Q2oQ1

Up 3%
Solid volume growth of 17% annualised -

higher than in Q1

Improved deposit margins
Healthy contribution from consumer credits

897 920 933 927 957 913

100 200 300 400 500 600 700 800 900 1,000 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

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7

10

Treasury 10 11 Other, net (incl. day count effect) 30 74 Total

11
87

Margin driven

34

121

28 132

160

YoY 8

Deposit margins
19

3 21

24

Q2oQ1

Lending margins
Deposit volumes
Lending volumes

Volume driven

Change in net interest income

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32

Net commission income

EURm YoY

Up 10%
Savings commissions up 12%

Asset Mgmt commissions up 13% Brokerage up 15% Custody services up 8%

Payment related commissions up 5%

Cards up 10%

Q2oQ1

Up 3%
Driven by a strong growth in payment

commissions incl. cards

453 469 529 507 521 484

100 200 300 400 500 600 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

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Breakdown of commission income - gross

281 306 319 338 335 325 162 175 177 177 171 183 82 90 87 98 88 86 51 48 32 59 41 45 40 80 120 160 200 240 280 320 360 400 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Savings related Payments related Lending related Other

EURm

Of which Asset Mgmt Of which Cards

SLIDE 34

Customer business drives increase in net/gains losses

EURm YoY

Net gains/losses in BAs increased by 41%

to EUR 374m

Strong success in selling Markets products

in Retail and CIB

Strong growth in customer driven business

structured products strong and stable core business in F/X and

fixed income trading

Q2oQ1

Treasury result down EUR 9m due to OMX

shares (compared with Q1 decrease of EUR 34m) - good inv. result excl. OMX

Life down following volatile markets

131 159 190 164

16

80

20
43

32 15 210 134

60
40
20

20 40 60 80 100 120 140 160 180 200 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Business Areas Treasury and eliminations

34

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214 12 68 134 23 3 51 57 Q2/05 179 8 7 164 17 4 68 75 Q2/06 4 6 10 8 Asset Mgmt 76 74 83 87 CIB

15
21
31

40 Group Treasury 131 159 190 210 BAs 242

8

32 83 Q1/06 139 1 32 47 Q3/Q5 115

1

3 48 Q1/05 147

12

33 64 Q4/05 Life Eliminations Total Retail Net/gains losses, EURm

Strong trend in net/gains losses within Business Areas

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36

103

21

124 14 53 57 H1/05 80

21

101 7 47 47 H1/06 Group Funding Group Investment

14

69

2
5

76 H1/06 77 47 32 Income

1

15 9 Other income

14
7
7

Expenses 52

29

H1/06 61

29

H1/05

8

86 H1/05 Operating profit Net gains/losses Net interest income EURm

Group Treasury

Good result in volatile market conditions

annualised investment return in Q2 3.97% compared with funding cost of 3.25% positioned for increased interest rates lower result 2006 mainly explained by exceptionally strong Q2/05

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Total operating income

EURm YoY

Up 8%
Increased focus on top line growth
Steady increase in net interest income –

volume growth more than compensating for margin pressure

Commission income up 10%

Savings related commissions up 12% Payment commissions up 5%

Net/gains losses up 28%

strong increase in customer driven financial

transactions

Q2oQ1

Up 1%
Solid increase in NII and commissions
Treasury, Markets and Asset Management

partly affected by volatile capital markets

1,582 1,601 1,696 1,759 1,785 1,694

200 400 600 800 1,000 1,200 1,400 1,600 1,800 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

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Expenses

EURm YoY

Up 3% - ambition to capture opportunities

in growth markets

excl. Life total expenses up 2%
Approx. EUR 30m related to investments

within growth areas

Growth Plan Sweden, Life, Poland & Baltics

Staff costs up 6%

increase of FTEs by approx. 380 general wage increase above 3% increased variable salaries correspond to

2% of increase

Other costs up 3%

higher business volumes

Q2oQ1

Up 1% - higher activity level
Continued investments in growth areas

515 520 532 543 552 353 364 345 393 367 372 34 35 31 31 23 21 515

100 200 300 400 500 600 700 800 900 1,000 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Staff costs Other expenses Depreciation

933 896 914 902 956 945

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Expense distribution

1,816 Expenses H1/06 Cost increases

adj. for changed

variable salaries and investments in growth areas Increase in variable salaries +16 +16 Expenses H1/05 EURm 1,878 *Such as investments in Growth Plan Sweden, Cards, Life, Private Banking Investments in growth areas* +30

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Staff costs

1,030 Staff costs H1/06 Wage increases Increased variable salaries Subtotal Staff costs Increase in FTEs, net + 31 +16 1,077 +18 Staff costs H1/05

EURm

1,095

No. of recruited

FTEs: approx. 1300

No. of FTEs that

has left: approx. 900

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41

Number of FTEs

Shift towards increasing advisors and

sales related FTEs in BAs and falling no.

f FTEs in processing and staff units

28,824 28,730 28,925 29,052 29,201

4,000 8,000 12,000 16,000 20,000 24,000 28,000 32,000 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 6,193

303

6,439 6,136 Group Functions 22,732 +680 22,385 23,065 BAs 28,925 +377 28,824 29,201 Total

92
211

+215 +180 +285 Chg YoY 1,242 5,197 1,875 3,232 17,278 Q2/05 1,150 4,986 2,090 3,412 17,563 Q2/06 1,147 5,046 2,033 3,326 17,373 2005 Group Staffs CIB GPT AM & Life Retail FTEs

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Cost/income ratio continues downwards

Continued down to 53% in H1/06

income up 8% costs up 3%

Continuous efficiency

improvements

Delivery in line with financial targets

60 53 56 10 20 30 40 50 60 70 2004 2005 H1/06 %

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43

Loan losses

EURm YoY

Positive loan losses reflecting record

low new provisions coupled with recoveries maintained at a high level

A handful of larger recoveries

Q2oQ1

Continued flow of recoveries and low

new provisions

Country risk provisions decreased by

EUR 11m (increased EUR 23m Q1)

lower exposure in certain emerging markets

Overall credit quality strong in all

markets

23
31
89
6
7
101
120
100
80
60
40
20

20 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

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44

0.20 76% 405

1,272

1,677 Q2/06 0.18 80 341

1,371

1,712 Q1/06 0.25 78 449

1,545

1,994 Q3/05 0.24 79 425

1,581

2,006 Q2/05 0.18 81 339

1,481

1,820 Q4/05 Reserves Provisions/impaired loans, gross,% Impaired loans, net/lending,% Impaired loans, net Impaired loans, gross

EURm. End of period

Impaired loans

Net impaired loans as per cent of total lending: 20bp

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45

Net profit

EURm YoY

Up 17%
Operating profit up 14%
Tax rate 22% (24% H1/05) following

revaluation of tax asset in Finland

Q2oQ1

Up 11%
Operating profit up 9%
Lower tax rate in Q2 - 21% compared

with 23%

705 506 665 740 563 100 200 300 400 500 600 700 800 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

SLIDE 46

46 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

EUR

Continuous increase in earnings per share

rolling 12 months

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47

Return on equity

%

RoE well above 2007 target of >17%
At top level among Nordic peers
Active capital management

18.0 21.2 19.4 5 10 15 20 25 2005 H1/05 H1/06

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48

Capital position

%

Tier 1 ratio 6.8%
Profitable volume growth
Total capital ratio at 9.3%

6.8 7.0 6.8 6.8 6.8 7.0

1 2 3 4 5 6 7 8 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

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49

Risk-weighted assets (RWA)

EURbn YoY

RWA up 13%
Total lending up 14%
Off-balance commitments up 26%

Q2oQ1

RWA up 3%
Lending up 4%

153 159 162 169 174 180

20 40 60 80 100 120 140 160 180 200 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

RWA credit risk

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50

Return on risk weighted assets, annualised

153 159 162 169 174 180 1.29 1.77 1.39 1.20 1.53 1.64 20 40 60 80 100 120 140 160 180 200 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0

RWA Return on RWA (net profit, annualised)

EURbn %

SLIDE 51

Business trends

SLIDE 52

52

+3% +13%

– SME lending

+4% +12%

– CIB lending excl. Markets

+5% +13% Deposits, total

+11% +16% +8% +10% +14%

+14%

YoY +5%

– CIB deposits excl. Markets

+7%

– SME deposits

+5% +5% +4%

+4%

Q2oQ1

– Household deposits – Consumer lending* – Mortgage lending

Lending, total

Volume growth compensates margin pressure

* Retail consumer lending (collateralised + non-collateralised consumer lending)

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Total lending

20 40 60 80 100 120 140 160 180 200 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Corporate Housing loans Other loans Public sector

EURbn

148 146 182 149 147 147 156 155 170 161 175 189 199 191

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54

Household mortgages, volumes and margins

44.3 45.7 48.2 48.9 50.0 52.6 54.5 56.3 57.7 60.4 62.6 64.5 65.8 68.5 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6

EURbn %

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Nordic mortgage market

A highly competitive market
Nordic mortgage market still heterogonous – convergence expected
Margin trends diverge

margins stable in Denmark at approx. 50bp signs of stabilising margins on new lending in Finland and Sweden - slightly lower compared

to back book of 70bp

Nordea decided to offer lower margins in Norway in order to gain competitiveness

new lending 10-15bp lower than back book of approx. 90bp

Lag effect between Central Bank Norway changes and client rates corresponds to
approx. half of decrease in group mortgage margin in Q2
Acceptable profitability measured by RoEC

profitability will improve with Basel II – cost efficiency a key competitive strength

Revenues from mortgages account for less than 10% of Nordea revenues

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56

EURbn %

Retail consumer lending, volumes and margins

12.1 12.2 12.4 12.4 12.2 12.5 12.7 12.9 13.2 13.5 13.8 13.9 14.2 14.9 2 4 6 8 10 12 14 16 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8

Retail consumer lending Retail consumer margin

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57

Lending to corporates (SME), volumes and margins

57.3 57.3 57.4 56.7 56.3 58.1 58.5 61.0 64.0 65.3 67.9 70.0 70.9 73.2 10 20 30 40 50 60 70 80 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4

EURbn %

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58

CIB lending, volumes and margins*

21.7 22.6 21.4 18.4 18.1 20.3 19.0 18.0 21.4 21.7 20.8 21.2 22.6 23.3 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5

EURbn % * Excl. Markets, Poland and Baltics

SLIDE 59

59

Total deposits

10 20 30 40 50 60 70 80 90 100 110 120 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Of which household deposits

EURbn

97 98 92 96 93 91 95 105 105 108 106 116 119 113

SLIDE 60

60

Retail deposits, households, volumes and margins

40.2 40.7 41.7 41.3 40.4 42.3 42.9 43.8 44.1 45.7 46.9 47.0 47.1 49.6 5 10 15 20 25 30 35 40 45 50 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2 2.4

EURbn %

SLIDE 61

61

Structural Interest Income Risk (SIIR)

167

162 Q1/06

175

132 Q2/05

189

175 Q2/06 Decreasing market rates, 100bp Increasing market rates, 100bp EURm, annualised effect on NII*

*Approx. end of period SIIR is defined as the effect on net interest income (NII) in the next 12 months if market rates change by one percentage point. Figures are asymmetrical as interest rates on deposits from customers cannot be reduced below 0%. Figures are based on maturity and repricing structure, and the effect going forward will be subject to management decisions and the competitive situation in the market.

Increased SIIR following increased volumes
Nordea mainly effected by changes in short term interest rates

SLIDE 62

62

Retail deposits, SME, volumes and margins

26.2 26.3 26.7 28.3 28.4 28.9 28.8 30.5 29.4 30.1 31.5 33.4 32.6 34.8 5 10 15 20 25 30 35 40 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

EURbn %

SLIDE 63

63

CIB, deposits, volumes and margins*

14.4 15.4 13.3 15.2 14.9 17.9 18.0 21.0 23.2 20.4 18.5 22.1 21.2 22.3 2 4 6 8 10 12 14 16 18 20 22 24 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60

EURbn % * Excl. Markets, Poland and Baltics

SLIDE 64

64

Assets under management

38 41 42 45 44 31 33 34 36 37 8 8 9 9 9 8 7 7 7 6 21 21 22 23 23 32 33 34 35 35

20 40 60 80 100 120 140 160 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Nordic retail funds Nordic private banking International wealth mgmt European fund distribution Institutional clients Life & pensions

EURbn YoY

Up 11%
Continued growth in Retail

funds, up 15%

Strong asset growth in Private

Banking, up 20%

10% increase in customer base new common advisory concepts

Q2oQ1

Down 1%
Inflow of EUR 3.3bn
Asset shift from equity to fixed

income funds

137 144 148 153 154

SLIDE 65

65

Net inflows

2
1

1 2 3 4 5 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Nordic Retail funds Nordic Private Banking International Wealth Mgmt European Fund Distribution Institutional clients Life & pensions

EURbn

Net inflow EUR 8.2bn last 12

months

Net inflow EUR 3.3bn in Q2

second quarter in a row with net

inflow above EUR 3bn

Strong inflow in Nordic Private

Banking and Institutional clients

Inflow of EUR 0.7bn in Retail

funds

marked asset shift from equity into

fixed income following the turbulent equity markets

Net outflow from European

Fund Distribution

1.0 0.6 0.9 3.4 3.3

SLIDE 66

66

Retail operating profit before loan losses

EURm YoY

Double digit volume growth
Increased no. of core customers
Lending margins still under pressure –

particularly on mortgages in Norway

Capturing untapped potential in Sweden

proceeding well

150 additional advisors/specialists in Private

Banking and corporate pension recruited

4 new sales and advisory venues opened H1

505 556 577 600 544 50 100 150 200 250 300 350 400 450 500 550 600 650 700 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

28 57 H1/05 33 53 H1/06 RoEC, % C/I ratio, % Key ratios

SLIDE 67

67

CIB operating profit before loan losses

EURm YoY

Strong result in all divisions
High level of activity in M&A market
Very good result in Markets

increased market uncertainty have led to

good demand for hedging products

Strong volume growth in Poland and

Baltics

High loan loss recoveries

122 144 169 160 125 20 40 60 80 100 120 140 160 180 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

25 53 H1/05 27 48 H1/06 RoEC, % C/I ratio, % Key ratios

SLIDE 68

68

Asset Management product result

EURm YoY

Up 35%
Higher AuM
Double digit income growth

limited impact from volatile markets in Q2

Improved income and result margin

somewhat reduced in Q2

65 96 93 85 77 10 20 30 40 50 60 70 80 90 100 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

137.3 56 H1/05 152.6 52 H1/06 AuM, EURbn C/I ratio, % Key ratios

SLIDE 69

69

Life insurance, product result

EURm YoY

Net written premiums up 35%
Unit link premiums up 106%

now accounting for 41% of total premiums

Negative investment return following

increased interest rates and falling equity indexes

Buffers decreased in Q2 but

substantially higher than Q2/05

also higher than year end

Business model continues to deliver

52 56 56 52 65 10 20 30 40 50 60 70 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

6.6 5.9 H1/05 8.9

0.4

H1/06 Financial buffers, % Inv return, % Key ratios

SLIDE 70

70

Life – financial buffers

8.9 12.0 4.1 4.2 12.4 Q2/06 1,909 189 146 222 1,352 Q2/06 8.1 132 Sweden

% of total provisions EURm

9.4 1,999 Total 5.5 296 Finland 12.4 1,354 Denmark 6.4 217 Norway Q1/06 Q1/06

SLIDE 71

71

Life – buffers in different scenarios

End of Q2/06

EURm

189 146 222 1,352 Financial buffers, actual 177 77 95 1,172 Equities drop 12% 130 151 302 1,319 Interest rates down 50bp 141 Norway 239 Sweden 1,404 Denmark Finland 148 Interest rates up 50bp

SLIDE 72

72

Summary

Strong result reflecting robust and diversified business mix – RoE 21.2% Nordea’s growth strategy is paying off

increasing no. of core clients strong performance in long term savings – AuM up 11% supported by strong net inflow increased penetration among SME clients with Markets related products increased lending volumes in all segments larger part of revenues event driven and advisory related growth strategies in Sweden and Poland & Baltics developing well

Improved cost efficiency

Cost/income ratio down to 53% cost increase excl. Life 2% increased alertness to change in market conditions actions will be taken if needed

Gap between revenue and cost growth 5 percentage points

SLIDE 73

Facts & figures

SLIDE 74

74

Facts & Figures, content

Credit quality

Page 75

Economic capital

Page 84

Business areas

Page 87

Balance sheet

Page 114

Market shares

Page 117

Appendix

Page 125

SLIDE 75

Credit quality

SLIDE 76

76

Loan portfolio by customer category*

85 84 82 78 79 83 80 84 91 93 97 100 101 105 44 46 48 49 50 53 55 56 58 60 63 65 66 68 14 15 15 16 16 17 17 17 18 19 19 20 20 21

10 20 30 40 50 60 70 80 90 100 110 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Corporate lending Housing loans Other loans

EURbn * Excluding public sector

SLIDE 77

77

Companies 52.9% Public sector 2.1% Household customers 45.0%

End Q2/05, EUR 175.1bn

Public sector 2.1% Companies 52.8% Household customers 45.1%

End Q2/06, EUR 198.8bn

Loan portfolio by customer group

SLIDE 78

78

Housing loans 76.6% Other loans 23.4%

Lending to household customers

End of Q2/06 EUR 89.4bn

Other loans comprise
consumer credits
investment credits
car financing
verdraft facilities
credit cards
home equity credits

SLIDE 79

79

Construction 3% Real estate 27% Manufactoring 14% Renting, consulting and other services 11% Other companies 10% Agriculture & Fishing 5% Shipping & Offshore 5% Transport and communication 6% Finance 9% Commerce and services 10%

Lending to companies by industry

End of Q2/06 EUR 105.2bn

SLIDE 80

80

198.8 5.2 5.8 14.5 12.0 9.6 14.5 10.4 5.8 3.6 28.0 89.4 Q2/06 190.7 5.4 5.7 15.1 10.4 8.7 14.0 9.9 5.8 2.9 26.8 86.0 Q1/06 182.1 4.8 5.8 12.8 6.1 14.6 12.6 9.9 5.1 3.1 25.6 81.7 Q3/05 175.1 4.4 5.6 12.0 5.7 12.5 12.9 9.8 5.6 2.6 25.1 78.9 Q2/05 188.4 5.3 5.8 14.6 9.6 10.5 13.4 9.9 5.6 2.9 26.2 84.6 Q4/05 Total Shipping & Offshore Agriculture & Fishing Other companies/public sector Renting, Consulting and other services Finance Manufacturing Trade and services Transport, communication Construction Real estate Household customers EURbn

Loan portfolio in figures

SLIDE 81

81

Asia 1.1% Other OECD 0.3% Other 6.8% Other EU countries 3.2% Latin America 0.6% USA 1.1% Other non OECD 0.5% Nordic countries and P&B 93.2%

Lending by geographical area

End of Q2/06 EUR 198.8bn

Nordic countries and P&B, EURbn

Sweden

55.4

Denmark

53.6

Finland

40.8

Norway

31.8

P&B

3.7

SLIDE 82

82

5 1 6 Public sector 5 9 14 Shipping & Offshore 13 34 47 Construction 7 41 48 Transport, communication 15 131 146 Agriculture & Fishing 18 118 136 Renting, Consulting and other services 36 153 189 Other companies 43 147 190 Trade and services 58 304 362 Manufacturing 1,272 22 95 217 Provisions 1,677 25 117 397 Gross 405 3 22 180 Net Total Finance Real estate Household customers

EURm. End of Q2/06

Impaired loans

SLIDE 83

83

Loan losses

EURm 157 192 156 92 58

258
215
163
123
147
101
23
7
31
89
300
250
200
150
100
50

50 100 150 200 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

Gross Reversals Net

YoY

Positive loan losses reflecting record

low new provisions coupled with recoveries maintained at a high level

A handful of larger recoveries

Q2oQ1

Continued flow of recoveries and low

new provisions

Country risk provisions decreased by

EUR 11m (increased EUR 23m Q1)

lower exposure in certain emerging markets

Overall credit quality strong in all

markets

SLIDE 84

Economic capital

SLIDE 85

85

Economic capital (EC)

EURbn 8.8 9.0 9.0 9.2 8.9 1 2 3 4 5 6 7 8 9 10 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06

986 Life 1,899 CIB 165 Asset Mgmt 365 132 Treasury GPT 7 Other 5,609 Retail Banking 9,163 Q2/06 Total EC per business area (EURm)

SLIDE 86

86

Economic capital – distribution

End of Q2/06

Life risk 1% Market risk 15% Operational risk 9% Business risk 12% Credit risk 63% Other 2% CIB 21% Treasury 4% Asset Mgmt & Life 12% Retail 61%

SLIDE 87

Retail Banking

SLIDE 88

88

Retail Banking lending and deposit volumes

23.9 14.2 25.0 21.4 Q2/06 10.5 10.6 11.2 11.9 12.5 12.9 13.4 Norway 21.8 24.1 20.5 Q1/06 22.4 24.8 20.3 Q4/05 21.3 23.9 20.6 Q3/05 20.8 23.4 18.1 Q1/05 20.6 24.0 19.3 Q2/05 17.8 18.3 Denmark 21.8 23.7 Q4/04 20.8 Sweden 22.7 Finland Q3/04 Deposits, EURbn 49.1 26.8 37.7 47.5 Q2/06 19.9 20.4 21.8 23.3 24.3 25.2 26.0 Norway 46.5 36.4 45.5 Q1/06 46.1 35.6 45.1 Q4/05 45.2 34.8 43.2 Q3/05 43.3 33.8 41.3 Q2/05 44.0 33.0 38.5 Q1/05 36.0 37.4 Denmark 42.6 31.6 Q4/04 40.9 Sweden 30.4 Finland Q3/04 Lending, EURbn

SLIDE 89

89

Retail Banking breakdown of lending

4.2 16.0 17.5 Q2/06 4.0 15.5 16.9 Q1/06 3.9 15.2 16.4 Q4/05 3.8 14.8 16.2 Q3/05 3.7 13.6 15.7 Q1/05 3.8 14.2 15.9 Q2/05 14.0 14.7 Corporate 3.6 13.3 Q4/04 3.6 Consumer lending 12.8 Households mortgages Q3/04 Finland, EURbn 6.0 20.8 18.2 Q2/06 5.8 20.3 18.2 Q1/06 5.8 19.6 18.1 Q4/05 5.8 18.8 17.0 Q3/05 5.5 17.2 14.7 Q1/05 5.7 17.9 16.1 Q2/05 13.7 14.3 Corporate 5.3 16.8 Q4/04 5.2 Consumer lending 16.4 Household mortgages Q3/04 Denmark, EURbn

SLIDE 90

90

Retail Banking breakdown of lending

3.6 19.2 24.8 Q2/06 3.4 18.3 23.5 Q1/06 3.4 18.0 23.5 Q4/05 3.3 17.4 23.2 Q3/05 3.3 16.6 22.9 Q1/05 3.3 16.6 22.2 Q2/05 20.5 21.6 Corporate 3.4 16.4 Q4/04 3.3 Consumer lending 15.9 Household mortgages Q3/04 Sweden, EURbn 1.0 13.3 12.7 Q2/06 0.9 12.8 12.3 Q1/06 0.9 12.4 12.0 Q4/05 0.8 11.9 11.5 Q3/05 0.7 10.5 10.6 Q1/05 0.8 11.4 11.1 Q2/05 10.3 10.4 Corporate 0.6 10.1 Q4/04 0.6 Consumer lending 9.6 Household mortgages Q3/04 Norway*, EURbn

* Norway restated, volumes in Boligkredit moved from consumer lending to mortgage lending

SLIDE 91

91

Retail Banking breakdown of deposits

7.5 10.1 7.4 Q2/06 7.2 9.9 7.0 Q1/06 7.1 10.4 7.2 Q4/05 6.6 10.4 7.0 Q3/05 6.5 9.9 6.9 Q1/05 6.6 10.3 7.2 Q2/05 6.8 7.0 Corporate 7.1 9.6 Q4/04 6.4 Households, savings accounts 9.5 Households, current accounts Q3/04 Finland, EURbn 9.9 3.4 8.0 Q2/06 9.5 3.1 7.8 Q1/06 9.4 3.2 7.8 Q4/05 9.5 3.1 8.0 Q3/05 9.0 3.1 7.2 Q2/05 8.4 2.9 6.8 Q1/05 7.1 7.2 Corporate 8.1 2.9 Q4/04 7.8 Households, savings accounts 2.9 Households, current accounts Q3/04 Denmark, EURbn

SLIDE 92

92

Retail Banking breakdown of deposits

7.4 5.4 11.1 Q2/06 6.7 5.0 10.1 Q1/06 6.3 5.0 11.0 Q4/05 6.8 5.0 9.6 Q3/05 6.4 4.9 9.5 Q1/05 6.5 4.8 9.4 Q2/05 9.3 10.6 Corporate 6.3 4.9 Q4/04 6.5 Households, savings accounts 4.9 Households, current accounts Q3/04 Sweden, EURbn 3.7 2.2 8.3 Q2/06 3.7 2.0 7.7 Q1/06 3.7 1.8 7.4 Q4/05 3.9 1.7 6.9 Q3/05 3.8 1.7 6.3 Q2/05 3.6 1.4 6.2 Q1/05 5.6 5.7 Corporate 3.5 1.4 Q4/04 3.5 Households, savings accounts 1.4 Households, current accounts Q3/04 Norway, EURbn

SLIDE 93

93

Retail Banking margins

1.74 0.91 3.61 0.70 0.98 Q2/06 0.85 0.93 0.92 0.85 0.81 0.76 0.75 Mortgages, households 4.05 4.18 4.07 4.04 3.81 3.74 3.66 Consumer loans, households 1.72 0.88 1.00 Q1/06 1.63 0.85 1.04 Q4/05 1.67 0.83 1.06 Q3/05 1.55 0.86 1.13 Q1/05 1.62 0.89 1.09 Q2/05 1.13 1.13 Lending to SME’s 1.58 0.92 Q4/04 1.50 Deposits, households 0.94 Deposits, SME’s Q3/04 %

SLIDE 94

Payments & transactions

SLIDE 95

95

E-banking customers, all customers

E-banking customers

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Feb-00 June- Oct-00 Feb-01 June- Oct-01 Feb-02 June-02 Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-06 Feb-06 Jun-06 Mill.

E-banking payments

5 10 15 20 25 30 35 40 45 50 55 Q1/00 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Denmark Finland Norway Sweden Mill.

SLIDE 96

96

Cards, all customers

Issued debit and credit cards

0.0 1.0 2.0 3.0 4.0 5.0 Jan-01 May-01 Sept-01 Jan-02 May-02 Sept-02 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06

Debit cards Credit cards

Mill.

Card payments

20 40 60 80 100 120 140 160 180 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Mill.

SLIDE 97

97

Payment transactions, households

20 40 60 80 100 120 140 160 180 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Manual transactions Payments ATM Card payments Cash withdrawal ATMs Direct debit E-banking payments

Mill.

SLIDE 98

98

Payment transactions, households

572.3 76.5 50.9 90.2 280.1 10.3 64.5 H1/05 622.7 84.9 54.0 82.5 336.3 8.6 56.5 H1/06 78.2 97.6 117.3 139.3 157.8 E-banking payments 873 936 1,000 1,084 1,164 Total 78.5 207.2 333.5 34.3 141.0 2001 81.5 204.4 395.5 31.7 125.3 2002 86.1 197.4 459.9 27.1 112.5 2003 527.8 603.6 Card payments 23.6 19.7 Payterminals 103.9 100.1 Manual transactions 190.4 181.7 Cash withdrawal ATM 101.3 2005 98.5 2004 Direct debit Mill.

SLIDE 99

Corporate and Institutional Banking

SLIDE 100

100

CIB lending and deposit volumes and margins

0.88 32.3 3.7 9.1 1.5 12.7 Q2/06 0.93 32.2 3.4 8.6 2.0 12.0 Q1/06 0.96 32.4 3.3 8.5 1.7 11.1 Q4/05 0.91 32.2 2.8 8.1 1.8 10.9 Q3/05 0.94 30.9 2.3 6.5 2.0 12.8 Q1/05 0.87 32.5 2.5 7.7 2.0 12.0 Q2/05 24.5 26.6 Total* 2.0 2.4 Poland and Baltic 11.3 10.8 Corporate Banking Division 0.98 5.9 1.4 Q4/04 6.1 International and Shipping Division 1.6 Financial Institutions Division Q3/04 Lending, EURbn 0.97 Margins**, % * Incl. Markets volumes ** Excl. Markets and Poland & Baltics 0.37 26.4 1.9 4.5 10.3 7.5 Q2/06 0.37 25.7 1.8 4.3 10.4 6.6 Q1/06 0.40 26.8 1.8 4.3 10.9 7.0 Q4/05 0.39 23.3 1.5 3.6 8.6 6.3 Q3/05 0.37 26.7 1.3 3.2 11.1 8.9 Q1/05 0.36 24.7 1.4 3.6 8.8 8.0 Q2/05 20.8 24.9 Total* 1.2 1.3 Poland and Baltic 7.4 9.1 Corporate Banking Division 0.38 3.0 9.0 Q4/04 3.0 International and Shipping Division 7.5 Financial Institutions Division Q3/04 Deposits, EURbn 0.41 Margins**,%

SLIDE 101

101

Nordea operations in Poland and the Baltic countries

18** 9

1

8 7 Operating profit (H1), EURm 1.1 % 2.5 % 4.0 % 4.5 % Market share, deposits, % 19 1.7 % 1,051 1,560 1,798 835 37 342,400 Poland 6 5 3 Country position, overall 1,600 182 289 284 Number of FTEs 72 10 15 10 Branches/salespoints 1,186,500* 31,200 35,400 48,500 Customers 4,767 742 1,082 1,145 Total assets, EURm 7.4 % 390 1,025 Latvia 10.3 % 296 1,045 Estonia 6.4 % 209 647 Lithuania Market share, lending, % 1,946 Deposits, EURm 4,277 Commitments***, EURm Total End of Q2/06

* Incl. Polish Life customers *’ Difference compared to summary of country result is explained by booking of provisions *** Includes guarantees

SLIDE 102

Asset Management & Life Insurance

SLIDE 103

103

* All funds targeted at Nordic Retail segment. ** Includes EUR 4.7bn in pension pools products

Breakdown of AuM by market and channels

Denmark Finland Norway Sweden Europe North America Retail funds*

(sold through

wn distribution)

Fund sales through third-parties Private Banking Institutional customers Total by market Q2/06 EURbn 152.6 35.0 17.1 6.7 1.8 18.0

5.5
15.5

14.3 1.7 8.5

9.7

4.0 3.8 2.8 2.5 0.5 17.5** 8.4** 4.8**

5.2

3.4** 0.9 59.8 33.4 12.1 29.4 17.4 0.5 23.3 45.2 5.5 43.6 Life & Pensions

SLIDE 104

104

Asset Management - margins

Bps Q2oQ1

Income margin up 4bp
Operating expenses margin in line

with last year

Result margin up 5bp

57 58 66 65 61

20
19
20
20
20

25 28 35 33 30

30
20
10

10 20 30 40 50 60 70 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Income margin Operating expenses margin Result margin

SLIDE 105

105

Asset structure*

Q2/06

Nordic fixed income 46% Int'l. equities 27% Nordic equities 14% Int'l. fixed income 13%

Q1/06

*Average AuM for Asset Management activities excl. Nordic Private Banking activities, in Q2 this was EUR 115.3bn

Nordic fixed income 43% Int'l. equities 29% Nordic equities 15% Int'l. fixed income 13%

SLIDE 106

106

European fund distribution

1,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Q3/00 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Inflow AuM

EURbn

SLIDE 107

107

Life - breaking out profit drivers

Fee based on size of life provisions in “with profit” companies – DK, FI
Profit-sharing from the Norwegian business (existing model, change pending)
25% of surplus/deficit from cost result in DK, 100% from FI and SE
Profit-/loss-sharing in Norway
25% of surplus/deficit from risk result in DK, 100% from FI and SE
Profit-/loss-sharing in Norway
Investment return from separated shareholders’ equity (DK, SE)
Health and accident result, holding company result etc.
Net unit-linked result including unit-linked cost/risk result
Commissions paid to Retail Banking less distribution cost in Retail Banking

Fee contribution Contribution from cost result Contribution from risk result

Inv. return on

shareholders’ equity Other profits Unit-linked Retail commission and distribution cost

SLIDE 108

108

Life - profit drivers

404 560 964 35 52

4

13 43 5 1 6

4

35 Q2/06 390 582 972 30 56

4

13 47 5 7

1

36 Q1/06 474 607 1,081 29 56

3

10 49 6 1 10

1

33 Q4/05 187 458 645 19 52

5

11 46 5 4 2 35 Q2/05 24 Of which income within Retail Key figures 577 Premiums written, net of reinsurance 404 Hereof from Traditional business 174 Hereof from Unit-linked business 65

4

9 60 7 3 7 43 Q3/05 Total Profit Unit linked Traditional insurance Other profits Estimated distribution cost in Retail

Inv. return on Shareholders Equity

Total Profit Traditional Total product result Contribution from risk result Contribution from cost result Fee contribution/profit sharing EURm

SLIDE 109

109

Life – net written premiums by market

964 124 153 221 205 262 Q2/06 645 70 49 212 104 210 Q2/05 68 254 151 Sweden 33 111 107 Other 577 1,081 972 Total 90 147 236 Norway 222 296 237 Denmark 164 273 241 Finland Q3/05 Q4/05 Q1/06 EURm

SLIDE 110

110

Life, investments

5 10 15 20 25 30 35 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Equities Bonds Real Estate Unit linked Alternative investments

EURbn

Equities

predominantly listed equities 1/3 Nordic, 2/3 international

Bonds

¾ Nordic issuers primarily govmn’t & mortgage inst.

29.0 28.4 29.9 30.3 30.5

SLIDE 111

111

Life - asset allocation

20 19 29.5 30.3 Total 6 16 19 25 Q2/06 Equities, % 4 17 21 26 Q1/06 3.3 4.4 8.2 13.6 Q1/06 Q2/06 3.2 Sweden 4.5 Norway 8.1 Finland 13.6 Denmark Total, EURbn

SLIDE 112

112

Life - solvency situation

End of Q2/06 202 70 138 69 Sweden** 287 425 653 228 Finland 122 109 597 488 Denmark 209 163 313 149 Norway* Solvency in % of requirement Solvency buffer Actual solvency Required solvency EURm

* Excluding unit linked company ** Nordea Life Sweden I

SLIDE 113

113

Life – solvency sensitivity

End of Q2/06 202 209 287 122 Solvency in % of requirement 189 209 232 118 Equities drop 12% 244 209 322 121 Interest rates down 50bp 209 Norway 157 Sweden 123 Denmark Finland 255 Interest rates up 50bp

SLIDE 114

Balance sheet

SLIDE 115

115

Balance sheet

325,549 12,960 21,428 7,822 28,602 82,609 26,830 115,550 29,790 325,549 69,355 28,876 188,460 31,578 7,280 31 Dec 2005 12,358 13,528 Total equity 311,285 325,450 Total assets 35,320 26,170 Deposits by credit institutions 105,710 119,062 Deposits and borrowings from the public 25,263 29,071 Liabilities to policyholders 69,703 83,559 Debt securities in issue 325,450 21,066 8,158 24,836 66,599 24,747 198,842 27,301 7,961 30 June 2006 311,285 23,189 7,420 34,322 66,714 35,080 175,144 21,891 12,456 30 June 2005 Other liabilities and minority interests Other assets Derivatives Subordintated liabilities Loans and receivables to credit institutions Derivatives Loans and receivables to the public Total liabilites and equity Treasury bills and other eligible bills EURm

SLIDE 116

116

Capital base

180,382 15,252 165,130 9.3% 16,784

290

1,535 812 6,410 6.8% 12,199

634
1,800
304

1,458 13,479 Q2/06 173,618 16,312 157,306 9.4% 16,284

276
1,537

827 6,376 6.8% 11,721

1,210
1,795
308

1,462 13,572 Q1/06 15,130 14,399 15,545 RWA market risk

285
282
279

Deductions for other investments 14,854 16,009 15,486 Total capital base 9.4% 9.9% 9.2% Total capital ratio 832 833 837

of which perpetual subordinated loans

169,028 153,483

1,535

5,862 6.8% 11,438

831
1,794
327

1,472 12,918 Q4/05 162,394 147,995

1,535

6,445 7.0% 11,381

696
1,804
460

1,395 12,946 Q3/05 158,530 143,400

1,441

5,528 7.0% 11,052

431
1,799
449

1,387 12,344 Q2/05 RWA credit risk Tier 1 capital Tier 1 capital ratio Tier 2 capital Deductions for investments in ins. companies Hybrid capital loans Goodwill Other items net Deferred tax assets Total RWA Core equity EURm

SLIDE 117

Market shares

SLIDE 118

118

Market position in Nordic markets

9.4% 11.0% 30.9% 14.7%

consumer lending

7.5% 10.7% 28.7% 14.4% Life & Pensions (end March) 13.8% 16.2% 34.8% 18.7%

lending

20.1% 16.8% 38.5% 21.0%

deposits

17.9% 8.3% 33.3% 21.9%

deposits

15.7% 11.9% 31.3% 17.6%

mortgage lending

2.8% 13.6% Sweden 2.7% 8.4% Norway 5.4% 31.6% Finland 14.0% 19.8% Denmark Corporate customers Brokerage (Ytd 2006 - June) Investment funds Personal customers Market shares

* Statistics mainly from April/May 2006

SLIDE 119

119

Personal customer deposits - market volume & share

10 20 30 40 50

May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

30% 32% 34% 36% 38% 40% 100 200 300 400 500 600

Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-05 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-06 Feb-06 Apr-06

18% 20% 22% 24% 26% 28% 100 200 300 400 500 600

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

15% 17% 19% 21% 23% 25%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share 100 200 300 400 500

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

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

SLIDE 120

120

Corporate deposits - market volume & share

5 10 15 20 25 30

M a y

4

J u l

4

S e p

4

N

v
4

J a n

5

M a r

5

M a y

5

J u l

5

S e p

5

N

v
5

J a n

6

M a r

6

M a y

6

35% 37% 39% 41% 43% 45% 100 200 300 400

Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-06 Feb-06 Apr-06

14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 100 200 300 400 500

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

10% 12% 14% 16% 18% 20%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share 100 200 300 400 500 600

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

10% 15% 20% 25% 30%

SLIDE 121

121

Personal customer lending - market volume & share

10 20 30 40 50 60 70

May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

29% 30% 31% 32% 33% 34% 35% 300 600 900 1200 1500

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

10% 12% 14% 16% 18% 20% 200 400 600 800 1000

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

8% 9% 10% 11% 12%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share

100 200 300 400 A p r

3

J u n

3

A u g

3

O c t

3

D e c

3

F e b

4

A p r

4

J u n

4

A u g

4

O c t

4

D e c

4

F e b

5

A p r

5

J u n

5

A u g

5

O c t

5

D e c

6

F e b

6

A p r

6

12% 14% 16% 18% 20% 22%

SLIDE 122

122

Mortgage lending households - market volume & share

200 400 600 800 1000 1200

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

10% 12% 14% 16% 18% 20% 200 400 600 800 1000

M a y

3

J u l

3

S e p

3

N

v
3

J a n

4

M a r

4

M a y

4

J u l

4

S e p

4

N

v
4

J a n

5

M a r

5

M a y

5

J u l

5

S e p

5

N

v
5

J a n

6

M a r

6

M a y

6

8% 9% 10% 11% 12% 13%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share

200 400 600 800 1000

Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Oct-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06

0% 4% 8% 12% 16% 20% 10 20 30 40 50

May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

30% 31% 32% 33% 34% 35%

SLIDE 123

123

Corporate lending - market volume & share

10 20 30 40 50

M a y

4

J u l

4

S e p

4

N

v
4

J a n

5

M a r

5

M a y

5

J u l

5

S e p

5

N

v
5

J a n

6

M a r

6

M a y

6

32% 34% 36% 38% 40% 42% 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250

M a y

6

J u l

3

S e p

3

N

v
3

J a n

4

M a r

4

M a y

4

J u l

4

S e p

4

N

v
4

J a n

5

M a r

5

M a y

5

J u l

5

S e p

5

N

v
6

J a n

6

M a r

6

M a y

6

10% 12% 14% 16% 18% 20% 100 200 300 400 500 600

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

10% 12% 14% 16% 18% 20%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Market share

100 200 300 400 500 600

Apr-03 Jun-03 Aug-03 Oct-03 Dec-03 Feb-04 Apr-04 Jun-04 Aug-04 Oct-04 Dec-04 Feb-05 Apr-05 Jun-05 Aug-05 Oct-05 Dec-06 Feb-06 Apr-06

18% 20% 22% 24% 26% 28% 30%

SLIDE 124

124

Investment funds - market volume & share

10 20 30 40 50 60

A p r

4

J u n

4

A u g

4

O c t

4

D e c

4

F e b

5

A p r

5

J u n

5

A u g

5

O c t

5

D e c

5

F e b

6

A p r

6

20% 22% 24% 26% 28% 30% 32% 34% 200 400 600 800 1000 1200 1400

Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06

12% 14% 16% 18% 20% 22% 40 80 120 160 200 240 280

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

4% 6% 8% 10% 12% 14%

EURbn

Finland

DKKbn

Denmark

SEKbn

Sweden

NOKbn

Norway

Market volume Nordea market share

100 200 300 400 500 600 700 800

May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-03 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06

18% 20% 22% 24% 26% 28%

SLIDE 125

Appendix

SLIDE 126

126

Ratings

AA- F1+ AA- A-1+ Aa3 P-1 Nordea Bank AB A-1+ A-1+ A-1+ A-1+ Short S&P AAA AAA AA- AA- AA- Long Long Short Long Short A1 P-1 Norgeskreditt Aaa Nordea Kredit Aaa Nordea Hypotek* AA- F1+ Aa3 P-1 Nordea Bank N AA- F1+ Aa3 P-1 Nordea Bank F AA- F1+ Aa3 P-1 Nordea Bank D Fitch Moody’s

*Covered bond rating

SLIDE 127

127

Total Shareholder Return (TSR),%

Nordea peer group* 1/1-06 – 30/6-06

10
5
3
3
1

3 4 4 6 8 9 10 11 11 12 14 15 14 7 8

10
5

5 10 15 20 SWEDBANK ERSTE BANK HBOS SHB ABN AMRO BARCLAYS RBOS DANSKE BANK ALLIED IRISH BANK SEB BANK OF IRELAND NORDEA UNICREDITO KBC COMMERZBANK HYPOVEREINSBANK DnB NOR LLOYDS TSB BNP PARIBAS SOCIETE GENERALE

% *As defined by Nordea

SLIDE 128

128

Largest registered shareholders, end of Q2/2006

0.5 12.8 Julius Baer Investment Mgmt 1.7 43.9 AMF Pension 1.7 43.6 Nordea Funds 1.3 34.0 Skandia Life Insurance 1.1 27.6 First Swedish National Pension Fund 1.0 26.9 Second Swedish National Pension Fund 0.8 20.9 Third Swedish National Pension Fund 0.4 10.6 Morgan Stanley Asset Mgmt 0.5 13.4

Govt. of Singapore Inv. Corp

45.3 1,175.9 Total for the 20 largest shareholders 2.7 70.4 Alecta 2.6 67.3 Robur Funds 19.9 515.6 Swedish state 4.0 102.5 Nordea Danmark fund 2.5 63.8 SBH/SPP Funds 1.8 47.0 SEB Funds 0.8 19.9 ABN AMRO Asset Mgmt (Netherlands) 0.7 18.0 Fourth Swedish National Pension Fund 0.5 11.8 Franklin-Templeton Funds 0.5 12.7 Nordea Profit Sharing Foundation 0.5 13.0 Länsförsäkringar Funds % Number of shares Shareholder

SLIDE 129

129

3.54 2.05 4.05 2.44 3.78 2.71 3.62 2.56 31-03-06 3.97 2.21 4.48 2.85 4.08 2.89 3.94 2.76 30-06-06 +0.43 +0.16 +0.43 +0.41 +0.30 +0.18 +0.32 +0.20 Change Q2/06 Short, SE Long, SE Short, NO Long, NO Long, DK Short, DK Long, EUR (5 years) Short, EUR (one week) %

Market development – interest rates

SLIDE 130

130

Macro data – Nordic market

% 2006e 2007e 2008e Gross domestic product DK 2.9 2.2 2.5 FI 3.9 2.8 3.2 NO 2.8 2.1 2.6 SE 3.6 2.9 2.7 Inflation DK 1.9 1.7 1.6 FI 1.3 1.5 1.5 NO 2.4 1.6 2.2 SE 1.1 1.6 2.2 Private consumption DK 2.4 1.8 2.1 FI 3.3 2.2 2.6 NO 2.2 2.2 2.3 SE 3.5 3.0 2.5 Unemployment DK 4.8 4.5 4.6 FI 7.9 7.5 7.3 NO 3.7 3.6 3.6 SE 5.2 4.9 4.6

Source: Nordea Markets Economic Outlook May 2006. In Norway, forecasts are for mainland GDP