Investor Presentation 19 July 2007 CEO Presentation Growth - - PowerPoint PPT Presentation

Investor Presentation 19 July 2007

CEO Presentation

3

Income EUR 3,830m, up 8% (EUR 3,534m in the first half year of 2006) Costs EUR 2,000m, up 6% (EUR 1.878m) Profit before loan losses EUR 1,830m up 11% (EUR 1,656m) Risk-adjusted profit EUR 1,197m, up 17% (EUR 1,024m) Operating profit EUR 1,873m, up 5% (EUR 1.780m) Net profit EUR 1,517m, up 8% (EUR 1,405m) Return on equity 19.5% (21.2%) Cost/income down to 52% (53%) Positive net loan losses of EUR 41m (EUR 120m) Earnings per share EUR 0.58, up 8% (EUR 0.54)

Growth strategy consistently delivers strong results

4

On the route to Great Nordea

Values High ambitions Growth strategy Strong customer-orientated culture Profit orientation Operating model

5

1,780 1,898 1,873 1,957 1,734

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Operating income up 8% H1 2007

EURm YoY

• Continued growth in Net interest income

– up 9%

• Double-digit lending growth compensating for margin

pressure

• Increased deposit volumes and improved margins
• Net commissions income up 5%
• Revenues from savings increasingly appearing on all key

lines in the income statement

• Strong increase in Net gains/losses – up

21%

• Continued successful penetration of the SME segment

Q2oQ1

• Up 4%
• Net interest income up 4%, increased business volumes and

stable margins

• Net gains/losses up 9%

* Excl. gain from sale of IMB shares

*

High ambitions Growth strategy Strong customer-oriented culture Profit orientation Operating model

6

Moderate cost increase while investing in future growth

6.5% 5.9% 5.1% 0% 1% 2% 3% 4% 5% 6% 7%

Reported

• Excl. banking operations

in Russia

• Excl. banking operations

in Russia and variable salaries

YoY

• Expense growth on track to meet full

year target

• Unchanged cost focus in parallel

with growth ambitions

• Moderate cost growth despite

increasing wage inflation and growth investments

6.3% 5.4%

0% 1% 2% 3% 4% 5% 6% 7% Q107/Q106 Q207/Q206

Cost growth according to plan Cost increase H107/H106

High ambitions Growth strategy Strong customer-oriented culture Profit orientation Operating model

7 835 882 881 949 806

100 200 300 400 500 600 700 800 900 1,000 1,100 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Profit before loan losses up 11% H1 2007

EURm

• Strong contribution from all Business

Areas – driven by revenue generation

• Consistent delivery of growth initiatives

combined with maintained cost focus

• Nordea’s best quarter ever
• Excl. one-off gain from sale of IMB Q3/06

*

* Excl. full impact from sale of IMB

High ambitions Growth strategy Strong customer-oriented culture Profit orientation Operating model

8

5.4 2.6 4.2 1.2 1 2 3 4 5 6 7 8 2006 Q1/07 H1/07 Q2/07

Gap between income and cost growth

• n track

%-points

• Gap of 2.6%-points in H107 – excl.

banking operations in Russia

• Income up 8.5%
• Expenses up 5.9%
• Improved gap in Q2 vs Q1– in line with

full year expectations

• 4.2%-points in Q2 following strong revenue growth
• Unchanged outlook for full year excl.

banking operations in Russia gap of 3-4%-points

• Incl. banking operations in Russia this corresponds to a

forecasted gap in the area of 2-3%-points

* Adjusted for banking operations in Russia

* * * *

High ambitions Growth strategy Strong customer-oriented culture Profit orientation Operating model

9

Cost/income ratio continued down

• Strong revenue generation
• Moderate cost growth despite high

activity level

• Continued productivity gains

64 60 56 53 52 63 10 20 30 40 50 60 70 2002 2003 2004 2005 2006 H1/07 %

*

* Excl. gain from sale of IMB shares

High ambitions Growth strategy Strong customer-oriented culture Profit orientation Operating model

10

Continued recoveries and limited new provisions in H1

Credit quality remains stable cross sectors– improved corporate rating

13 quarters with net recoveries

EUR 41m in H107 Total allowances amount to approx. EUR 940m

Well diversified lending portfolio

54% corporate and 46% household customers 90% of lending in Nordic countries

• 89
• 82
• 13
• 28
• 55
• 100
• 90
• 80
• 70
• 60
• 50
• 40
• 30
• 20
• 10

Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 1,266 1,118 1,032 941 1,188

200 400 600 800 1,000 1,200 1,400 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Net loan losses, EURm Total allowances EURm

Strong and well diversified credit portfolio

High ambitions Growth strategy Strong customer-oriented culture Profit orientation Operating model

11

Basel II approval in place for “Corporate and Institutions”

Nordea’s IRB model approved

Corporate and Institutions Covering approx. 50% of Nordea’s total credit portfolio

Standardised model for Retail portfolio RWA reduced by approx. 12% following the approval; limited to approx.

6% due to floor rules

Next steps in Basel II implementation

Retail portfolio under IRB foundation Corporate and institutions under IRB advanced

Excess capital will over time be returned to shareholders

High ambitions Growth strategy Strong customer-oriented culture Profit orientation Operating model

12

Ambitious financial targets

Long term financial targets Target Total Shareholder Return (%) In the top quartile of European peer group Risk adjusted profit (EUR m) In line with top Nordic peers Return on Equity (%) Double in 7 years Capital structure policy Policy Dividend payout-ratio > 40% of net profit Tier 1 capital ratio > 6.5%

High ambitions Growth strategy Profit orientation Operating model Strong customer-oriented culture

13

3.7

• 25
• 15
• 5

5 15 25 35 45

Bank of Irland Hbos Allied Irish Bank Danske DnB NOR SHB Barclays Santander Erste Bank Swedbank Lloyds Unicredito SEB Nordea RBOS BNP Societe Generale KBC Commerzbank ABN Amro

%

Top quartile

Total shareholder return (TSR)

Jan – June 2007

High ambitions Growth strategy Profit orientation Operating model Strong customer-oriented culture

14

Risk Adjusted Profit up 17% H1 2007

• Doubling of risk adjusted profit in 7

years implies a 10% growth in profit every year

• Strong revenue generation – organic

growth strategy pays off

100 200 300 400 500 600 Q206 Q306 Q406 Q107 Q207 EURm 10 20 30 % Risk adjusted profit Quarterly growth

High ambitions Growth strategy Profit orientation Operating model Strong customer-oriented culture

15

22.6 23.6 18 21.5 22.4 17.8 21.1 20.2 19.7

5 10 15 20 25 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Nordea Average Nordic Peers (Danske, SEB, SHB, Sw edbank, DnBNor)

Return on equity (ROE) – Nordic Peers

%

• Nordea’s RoE consistently above

Nordic average

• Combined focus on
• Organic growth
• Operational efficiency
• Capital management
• H1 2007 19.5%

High ambitions Growth strategy Profit orientation Operating model Strong customer-oriented culture

16

Growth strategy continues to pay off

Increase business with existing customers - product areas in focus Next level of operational efficiency

Future branch Nordea Transformation Program Long term savings Consumer credits and Cards Life insurance Capital markets products Growth Plan Sweden Russia, Poland & Baltic's

Each focus area has clearly identified initiatives

Geographical markets in focus

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

Private Banking Gold customers Small & Medium Enterprises

Migrate customers up the segments - segments in focus Harmonise sales processes, product deliveries and IT platforms

17

Increasing number of customers in premium segments drives income growth

69 72 73 75 81 83 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

• Strong growth in business with

Gold customers generated by

Increased number of Gold

customers

Increase in volume per customer

Number of Private Banking customers up 15% Q2/Q2

Increase in Private Banking customers

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

Gold segment YoY

15.2%

146 67 169 71

• No. of customers

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

2.2 2.4

8.4% 6.3% 15.2%

18

Continued revenue growth in all Retail corporate segments

11% 5% 8%

Small Medium Large

Income growth YoY

• Strong revenue growth in all Retail

corporate segments

• Accelerating revenue growth Q2/Q1
• Increase in both lending and deposits as well as

cross-selling of Markets products

• Potential to increase revenues in all

segments – in particular small and medium segments

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

19

Successful penetration of SME segment

50 57 56 65 43 10 20 30 40 50 60 70 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Total revenues in Markets related to Retail corporate clients Total revenues from Acquisition Finance and Corporate Finance

• Increased penetration of Retail

corporates of products from Nordea Markets

Strong growth in sale of structured products

and equity products

• Revenues from Acquisition Finance

and Corporate Finance up 62% YoY in Retail

• Successful penetration of Nordea’s

large corporate customer base

23 25 46 40 23

10 20 30 40 50 Q206 Q306 Q406 Q107 Q207

EURm EURm

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

20

Further strengthened position within long term savings

Accumulated net inflow (EURbn)

5 10 15 20 25 30 35 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 Q3/06 Q4/06 Q1/07 Nordea Average net inflow Nordic peers

• Net inflow in H1 2007 EUR 1.3bn
• Outflow in Q2 mainly on institutional clients
• Strongest inflow within Private Banking
• Approx. 10% of assets are in new and

re-engineered products

• Strong investment performance
• Improved income and result margin
• Income margin in Q2 72bps (67bps)
• Changed product mix from bonds to equities
• In total EUR 165bn in AuM

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

21

Improved market position within consumer lending and cards

YoY

• Consumer lending up 14%

Non-collateralised up 17% Strong growth in home equity products

• 540,000 new cards issued

Of which approx. 300,000 credit cards, up

43% Q2/Q2

• In total 5.9 million cards outstanding

Q2oQ1

• Consumer lending up 3%
• Card commission gross up 21%

Margin EURbn

%

Lending

Retail consumer lending

14.9 15.4 15.6 16.4 16.9

10 11 12 13 14 15 16 17

Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

1.0 1.6 2.2 2.8 3.4 4.0 4.6

Volume Margin

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

22

Profitability in Life continues to improve

10 20 30 40 50 60 70 80 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 EURm 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 EURm-GWP Product result GWP

• Product result up by 29% Q2/Q2 and

16% YoY

• Swedish Life market still effected by

the regulatory changes*

• Stable growth in Gross written

premiums

Strong sales in Denmark and Poland

Life product result and 12-month rolling Gross Written Premiums (GWP)

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

* Termination of the sale of the ”Kapitalpension” product and a temporary stop for transfer of customer’s insurance capital from one provider to another

23

Strong revenue growth in Nordea Markets

153 194 180 229 242 242

25 50 75 100 125 150 175 200 225 250 Q1/05 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Total revenues Nordea Markets

• Customer activity continues at high

level

All segments showing high business

activity

Equity products – driven by securities

finance and derivatives activities

Structured products at all time high

• Increased cross-selling of Markets

products to SMEs – still room for increased penetration

EURm

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

24

Growth plan in Sweden well on track

• Number of Gold customers up 6% in Q2

annualised – accelerating growth rate since launch of growth plan

• Growth Plan Sweden focuses on

advisory services and product segments with growth potential

• 300 advisors recruited and trained since 2005, mainly

advisors and specialists serving high end segments

• Initiative during 2006 to extend the opening hours in the

branches

• 12 new branches and venues has opened up since 2005
• Improved RaRoCar and C/I ratio Q2/Q2
• Underlying revenue growth in Sweden
• approx. 16% QoQ excl. ALM-

programme (Retail deposit hedge)

Gold customers Regional banks in Sweden

High ambitions Growth strategy Operating model Profit orientation Customer orientation

706 714 719 725 735 746 706

Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

25

Growth in revenues from New European Markets

YoY

• Orgresbank consolidated in income statement as per

Q2 with revenues of EUR 19m

• New European Markets accounts for 3% of Group

revenues in Q2

• Total lending up 68%, excl. Orgresbank
• Mortgage lending up 88%
• Number of gold customers doubled
• Growth ambition in Poland and Baltics
• Approx. 40 new branches to be opened in Poland this year and 10-15 in Baltics
• Focus in Russia on corporate customers, Nordic

corporate customers and personal customers in high- end segment

• Long term targets to be decided during autumn
• Growth with strict cost and risk management

* Poland, Baltics and Russia. IMB included until Q2 2006. Q3/06 excl. gain from sale of IMB shares EUR 199m. Orgresbank included from Q2 2007.

43 39 36 31 63

10 20 30 40 50 60 70 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Total income New European Markets*

EURm

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

26

Updated vision and values to support growth strategy

Profit orientation - Focus, Speed, Performance

Vision Values Foundation Mission

The leading Nordic bank, acknowledged for its people creating superior value for customers and shareholders

High ambitions Growth strategy Strong customer-oriented culture Operating model Profit orientation

G r e a t c u s t

• m

e r e x p e r i e n c e s It’s all about people One Nordea team

27

New operating model to support growth strategy – implementation on track

Institutional & International Banking Private Banking

Account Products Cash Management & Payments Capital Market Products Savings Products & Asset Management

Banking & Capital Market Products Savings & Life Products Group Services & Technology People & Identity Group Corporate Centre Group Credit & Risk Control Group Legal & Compliance Nordic Banking

Segment Household & Corporate

High ambitions Growth strategy Operating model Profit orientation Strong customer-oriented culture

28

Outlook 2007

The strong revenue growth is expected to continue in the second half of

2007

As previously stated cost increase for the full-year 2007 is expected to

be of the same magnitude as in 2006, ie 4-5%

• Incl. Orgresbank and planned investments in Russia the cost increase is expected to

be approx. 6%.

Gap between revenue and cost growth for the full year 2007 is expected

to be 3-4%-points excl. banking operations in Russia

• Incl. Nordea’s Russian banking operations the corresponding gap is in the area of 2-

3%-points

The quality of the credit portfolio remains strong. Lower recoveries

during the latter part of the year are likely to result in actual net charges in the coming quarters

29

Summary – Second Quarter 2007

• Consistent delivery on organic growth strategy – on track with financial targets

Revenues up 8% Profit before loan losses 11% Risk adjusted profit up 17% Gap between revenue and cost increase of 2.6%-points in H107 RoE 19.5%

• Double digit increase in business volumes

Lending up 15% Deposits 11% Consumer lending up 17%

• Investments in future growth

Net 550 employees recruited excl. Orgresbank in 12 months Investments in New European Markets

• Well controlled expense growth

Cost increase 5.9% - 5.1% excl. banking operations in Russia and the increase in variable salaries

CFO Presentation

31

Income statement summary

11 1,656 1,830 Profit before loan losses 5 1,780 1,873 Operating profit 8 1,405 1,517 Net profit

• 58

45 19 Equity method

• 4

75 72 Other income 120 41 Loan losses 6 11 5 7 8 21 5 9 Chg %

• 1,878
• 44
• 739
• 1,095

3,534 502 1,028 1,884 H1/06

• 49

Depreciation

• 774

Other expenses

• 2,000

Total operating expenses

• 1,177

Staff costs 3,830 Total operating income 609 Net gains/losses on items at fair value 1,083 Net fee and commission income 2,047 Net interest income H1/07 EURm

32

Income statement summary

16 9 8 2 4 2 1 4 18

• 10

9 2 4 Chg % 835 881 949 Profit before loan losses 740 927 89

• 945
• 21
• 372
• 552

1,780 54 25 223 521 957 Q2/06 895 978 Operating profit 701 816 Net profit 10 9 Equity method 33 39 Other income 13 28 Loan losses

• 992
• 24
• 383
• 585

1,873 291 535 1,004 Q1/07

• 25

Depreciation

• 391

Other expenses

• 1,008

Total operating expenses

• 592

Staff costs 1,957 Total operating income 318 Net gains/losses on items at fair value 548 Net fee and commission income 1,043 Net interest income Q2/07 EURm

33 957 1,006 1,004 1,043 979

100 200 300 400 500 600 700 800 900 1,000 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Net interest income

EURm YoY

• Up 9%
• Significant contribution from deposit
• Volumes and margins
• Savings accounts up 15%
• Total lending up 16% -

compensating for margin pressure

• Negative impact from ALM strategy

– retail deposit hedge

• Negative effect will gradually disappear

Q2oQ1

• Up 4%
• Positive contribution from deposits
• Continued lending volume growth
• Double digit growth annualised
• Lending margins largely stable
• Day count EUR 10m and

Orgresbank EUR 13m

34

1% 17%

– of which non collateralised lending

5% 16%

– SME lending

15% 27%

– CIB lending*

7% 16% Deposits, total*

32% 14% 9% 14% 14%

16%

YoY 8%

– CIB deposits*

7%

– SME deposits

5% 3% 4%

5%

Q2oQ1

– Household deposits – Consumer lending** – Mortgage lending

Lending, total*

Robust volume growth continues in business areas

* Excl. Repos ** Retail consumer lending (collateralised + non-collateralised consumer lending)

35

5 64 Other, net 39 163 Total 5

• 77

Margin driven

53

• 130

43 133

176

YoY 9

• Deposit margins
• 4

11 18

29

Q2oQ1

• Lending margins
• Deposit volumes
• Lending volumes

Volume driven

Change in net interest income

EURm

36

Net commission income

EURm YoY

• Up 5%
• Lending-related commissions

increased 18% reflecting strong business activity

• Savings-related commissions gross

up 9%

• AM commissions up 6% following growth in AuM
• Life commissions gross up 23%
• Brokerage 7%
• Card commissions gross up 15%
• Commission expenses up due to the launch of

credit cards to gold customers

• Payment commissions up 6%
• Price pressure on giro payments

Q2oQ1

• Up 2%
• Card commission gross up 21%

521 549 535 548 497

100 200 300 400 500 600 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

37

Net commission income – business trends

Retail funds

Outflow in Nordic Retail Funds partly into savings accounts with attractive rates

Savings accounts

The strong growth in savings accounts, EUR 4.2bn in 12 months drives a substitution effect from

commissions related savings products to net interest income (Net interest income up 8%) Structured products

The successful penetration of Markets related products drives a substitution effect from

commissions related savings products to Net gains/losses at fair value (Net gains/fair value up 21%)

The development in net commission income should be seen in light of business trends and Nordea’s strategy within the savings area

38

Breakdown of commission income - gross

319 338 335 325 301 359 356 360 177 177 171 183 187 197 181 195 87 98 88 86 87 91 100 106 32 59 41 45 36 49 37 39

40 80 120 160 200 240 280 320 360 400 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Savings related Payments related Lending related Other

EURm

Of which Asset Mgmt Of which Cards

39

220 277 273 3 19 33 18 28 205 290

50 100 150 200 250 300 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Business Areas Treasury and eliminations

Customer business drives increase in net/gains losses

EURm YoY

• Up 21%
• Up 14% in Business Areas
• Increased penetration of Nordea’s SME customer

base

• High activity in household segment, mainly equity

products and structured products Q2oQ1

• Up 9%
• High revenues maintained in Nordea Markets – in

particular with Retail customers

• High investment return in Life
• Strong performance in Group Treasury – supported

by OMX gain

40

43 290 69 6 108 107 Q2/07 40 273 57 3 124 89 Q1/07 44 277 80 6 102 90 Q4/06 8 205 51 7 81 75 Q3/06 7 220 61 4 77 88 Q2/06 Asset Mgmt CIB Group Treasury BAs Life Retail Net/gains losses, EURm

Increased revenues from net/gains losses in Business areas

41

1,780 1,898 1,873 1,957 1,734

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Operating income

EURm YoY

• Up 8%
• Continued growth in Net interest

income – up 9%

• Double-digit lending growth compensating for

margin pressure

• Increased deposit volumes and improved margins
• Net commissions income up 5%
• Revenues from savings increasingly appearing on

all key lines in the income statement

• Strong increase in Net gains/losses –

up 21%

• Continued successful penetration of the SME

segment Q2oQ1

• Up 4%
• Net interest income up 4%, increased business

volumes and stable margins

• Net gains/losses up 9%

* Excl. gain from sale of IMB shares

*

42

Revenue growth in Nordea

3,534 Lending, volumes and margins Savings: AM, Life and savings accounts Markets +3 +79 +83 Income H1 06

EURm

3,830 +27 Other +25 Poland & Baltics +296 +79 Transaction accounts Income H1 07

43

Expenses

EURm YoY

• Costs up 6.5%
• 5.9% excl. Orgresbank
• Prioritised investments in growth areas
• Excl. Orgresbank and variable salaries up 5.1%
• Staff costs up 7.5%
• Increase in FTE’s
• Wage inflation
• Variable salaries up

Q2oQ1

• Expenses largely unchanged excl.

Orgresbank

• Orgresbank adding expenses in Nordea group of

EUR 12m

552 606 585 592 372 355 391 383 391 21 23 19 24 25 550

100 200 300 400 500 600 700 800 900 1,000 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Staff costs Other expenses Depreciation

1,016 928 945 992 1,008

44

Staff costs

Staff costs H1 07 Wage increases Higher variable salaries and profit sharing Increase in FTEs, net Staff costs H1 06

EURm

• No. of recruited

FTEs: approx. 2,700*

• No. of FTEs that

has left: approx. 2,200*

Training and

• ther costs

related to the

• rganic growth

strategy +20 +82 +35 1,095 +16 +11 1,177 3.2% 1.8% 1,5% 1% 7.5%

* Excl. Orgresbank

45

Number of FTEs

• Excl. New European Markets number employees up less than 1 %
• Increased number of sales related employees and falling number of employees in processing and

staff units

27,601 27,717 27,473 27,584 27,894 1,600 1,679 1,773 2,798 2,969

20,000 22,500 25,000 27,500 30,000 32,500 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Nordea excl. New European Markets New European Markets

1,662

• 195

8

• 203

1,857 14 1,113 280 1,566 277 Chg YoY 47 3,306 4,872 CIB 18 1,577 1,857

• f which P&B

6 29,201 30,863 Total

• 3

6,170 5,975 Group Functions 8 23,031 24,888 BAs 1

• 4

1 2 % 1,137 5,033 2,054 17,671 Q2/06 1,145 4,830 2,068 1,113 17,948 Q2/07 Group Staffs

• f which Orgresbank

GPT AM & Life Retail FTEs

46

Gap excluding operations in Russia

7.5 9.6 8.5

1 2 3 4 5 6 7 8 9 10 Q1 H1/07 Q2 1.2 4.2 2.6 1 2 3 4 5 Q1 H1/07 Q2

6.3 5.4 5.9

1 2 3 4 5 6 7 Q1 H1/07 Q2

Income growth Expense growth

• Q2/07: Orgresbank revenues EUR 19m,

expenses EUR 12m

• H1/06: IMB revenues EUR 22m

% %

GAP, %-points

%

Banking operations in Russia

47

• 31
• 55
• 82
• 13
• 28
• 23
• 89
• 7
• 120
• 100
• 80
• 60
• 40
• 20

20

Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Loan losses, net

EURm H1

• Positive at EUR 41m reflecting

continued recoveries and limited new provisions

• Stable credit quality in all markets

48

740 876 701 816 673 100 200 300 400 500 600 700 800 900 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Net profit

EURm YoY

• Up 8%
• Effective tax rate in the first-half

year was 19%

• Revaluation of the deferred tax asset in

Finland

• Reduction of corporate tax rate in Denmark

down from 28% to 25% effective from 1 Jan 2007 Q2oQ1

• Up 16%
• Tax expenses lowered by appox. EUR 30m

due to the tax change in Denmark

*

*Excl. gain from sale of IMB shares

49

Growth in risk adjusted profit in line with long-term target

* Gain from sale of shares in Asiakastieto (EUR 29m) and IMB equity method (EUR 22m) *

• 51
• Non recurring items

3,534 3,830 Total income

• 185
• 190

Expected losses

• 1,878
• 2,000

Total operating expenses

17 1,024 1,197 Risk adjusted profit

• 396
• 443

Standard tax

13 9.2 10.3 Economic capital, EURbn 16 683 793 Economic profit

• 340
• 404

Cost of Equity 8.0% (7.5%)

Chg % H1/06 H1/07 EURm

50

18.0 21.5 19.5 20.6 22.7 24.1

5 10 15 20 25 2005 2006 H1 07 RoE RaRoCar

Profitability maintained at high level

% H1

• Widened gap between RoE and

RaRoCar demonstrates capital efficient growth

• Higher liability margins

*

* Excl. gain from sale of IMB shares ** Risk-adjusted return on capital at risk

**

51

Return on risk weighted assets, rolling 4 quarters benefits from Basel II

153 159 162 169 174 180 185 185 193 189 1.26 1.42 1.45 1.41 1.47 1.44 1.46 1.62 1.61 1.61 1.63 20 40 60 80 100 120 140 160 180 200 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 2.2

RWA Return on RWA Basel I Return on RWA Basel II

EURbn %

*

* Excl. gain from sale of IMB shares

Basel II

52

Strong increase in risk-adjusted EPS

0.54 0.40 0.58 0.46

0.1 0.2 0.3 0.4 0.5 0.6 0.7 Reported EPS, EUR EPS, risk adjusted, EUR H1 06 H1 07

53

200 193 185 185 180 176 189

20 40 60 80 100 120 140 160 180 200 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

RWA Basel I RWA Basel II without floors RWA Basel II

Approval of Basel II impacting RWA

EURbn

• RWA according to Basel I up 4%

Q2/Q1 to EUR 200bn

• Basel II reduces RWA with 12% to

EUR 176bn

• Floor rules gives reported RWA of

EUR 189bn – a reduction of 6%

54

6.8 6.9 6.8 7.1 6.8 7.7 7.1

1 2 3 4 5 6 7 8 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Tier I Basel I Tier I Basel II excl. floor rules Tier I Basel II incl. floor rules

Improved capital position

%

• Tier I 7.1% according to Basel II
• Step one in Basel II implementation
• Core capital base EUR 13.5bn
• Tier I excl. floor rules 7.7%
• Tier I according to Basel I 6.8%

55

Capital management

• Economic Capital up 13% to EUR 10.3bn

Increased credit risk exposure following increased lending of 16%

• Risk adjusted return (RaRoCar) continues to improve to 24.1% (22.6%)
• High level of RoE (19.5%)
• Capital to finance organic growth and add on acquisitions. Additional excess

capital will over time be distributed to shareholders

Business trends

57

Total lending

20 40 60 80 100 120 140 160 180 200 220 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 Q3/06 Q4/06 Q1/07 Q2/07

Corporate Housing loans Other loans Public sector

EURbn

148 146 182 149 147 147 156 155 170 161 175 189 199 191 201 214 222 230

58

Household mortgages, volumes and margins

42.7 44.2 46.8 48.2 49.6 52.9 54.7 56.6 57.8 60.1 63.0 65.2 66.9 69.4 71.8 74.9 76.3 79.0

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 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 Q3/06 Q4/06 Q1/07 Q2/07 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 %

59

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 15.4 15.6 16.4 16.9

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 Q3/06 Q4/06 Q1/07 Q2/07

• 0.2

0.3 0.8 1.3 1.8 2.3 2.8 3.3 3.8 4.3 4.8

EURbn %

60

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 73.4 78.4 81.1 84.9

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 Q3/06 Q4/06 Q1/07 Q2/07 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4

EURbn %

61

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 22.3 23.6 24.5 27.5

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 Q3/06 Q4/06 Q1/07 Q2/07 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, New European Markets

62

Total deposits

10 20 30 40 50 60 70 80 90 100 110 120 130 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 Q3/06 Q4/06 Q1/07 Q2/07

Of which household deposits

EURbn

97 98 92 96 93 91 95 105 105 108 106 116 119 113 119 126 126 133

63

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 50.1 50.7 51.4 54.1

5 10 15 20 25 30 35 40 45 50 55 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 Q3/06 Q4/06 Q1/07 Q2/07 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 %

64

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 34.7 37.5 37.3 39.9

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 Q3/06 Q4/06 Q1/07 Q2/07 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6

EURbn %

65

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 21.8 25.0 27.1 28.9

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 Q3/06 Q4/06 Q1/07 Q2/07 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, New European Markets

66

Structural Interest Income Risk (SIIR)

• 279

249 Q2/07

• 189

175 Q2/06

• 249

220 Q1/07 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 reprising structure, and the effect going forward will be subject to management decisions and the competitive situation in the market.

• Increasing SIIR following higher deposit volumes

67

20 40 60 80 100 120 140 160 180 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Nordic Retail funds European Fund Distribution Nordic Private Banking International Wealth Management Institutional clients Life & Pension

Assets under management

EURbn YoY

• Up 15% or EUR 21bn
• Value appreciation accounting 50% of the

increase

• Net inflow the remaining 50%
• Assets in Nordic Private Banking

up 28% or EUR 10bn

Q2oQ1

• AuM up 1.4%
• Value appreciation and net outflow

149 144 158 163 165

68

• 4
• 3
• 2
• 1

1 2 3 4 5 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Nordic Retail funds European Fund Distribution Nordic Private Banking International Wealth Management Institutional clients Life & Pension

Net inflows

EURbn H1

• Net inflow EUR 1.3bn
• Strong inflow in Nordic Private

Banking, EUR 2.9bn

Q2

• Net outflow EUR 1.3bn
• Loss of a few large mandates within

Institutional clients and European Fund Distribution

• Minor outflow from Nordic Retail funds to

savings accounts

• Another strong quarter in Nordic Private

Banking 1.8 3.3 2.0 2.6

• 1.3

69

Retail Banking profit before loan losses

EURm Q2/Q2

• Up 15%

Increased penetration of SME customers

• Revenues up 9%
• NII up 10%

Significant contribution from deposits Increased revenues from mortgage book Q2/Q1

• Commissions up 9%

Lending and savings commissions

• Expenses up 5%
• C/I ratio down to 51%

595 595 601 679 588 50 100 150 200 250 300 350 400 450 500 550 600 650 700 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

25 53 Q2/06 26 53 FY 2006 28 51 Q2/07 RaRoCar, % C/I ratio, % Key ratios

70

Retail Banking

26.8 52.8 55 26 Q2/07 163 174

• 217

391 Q2/07 Sweden 23.9 49.1 61 22 Q2/06 12% 23% 0% 9% Chg 14.3 27.3 56 19 Q2/06

• 6%

4% 6% 5% Chg 16.7 33.3 56 18 Q2/07 80 82

• 106

188 Q2/07 Norway Finland Denmark 25.0 37.7 50 33 Q2/06 44% 34% 5% 20% Chg 26.6 42.1 44 40 Q2/07 234 221

• 174

395 Q2/07 47.5 55.6 Lending, bn 23.9 21.4 Deposits, bn 48 50 C/I ratio, % 27 26 RaRoCar, % Q2/07 Q2/06 4% 206 Operating profit 15% 204 Profit before loan losses 6% 10% Chg

• 189

Total expenses 393 Total income Q2/07 EURm

Adjusting for the effect of the the Retail deposit hedge revenue growth in Sweden was 16%

71

CIB profit before loan losses

EURm Q2/Q2

• Up 11%
• High business activity
• Revenues up 13%
• Poland and Baltics up 42%
• Shipping, Offshore and Oil divisions up 26%
• FID revenues up 10%
• CBD largely unchanged adjusted for IMB and a

single large transaction in 2006

• Expenses up 16%
• Flat adjusting for increase in variable salaries and

investments in New European Markets 157 158 187 174 145 20 40 60 80 100 120 140 160 180 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

22 49 Q2/06 22* 49* FY 2006 24 50 Q2/07 RaRoCar, % C/I ratio, % Key ratios *

* Excl. gain from sale of IMB shares

72

CIB

19 21 41 35 90 88 24 21

RaRoCar, %

2.7 6.2 64

Q2/07

16 16

• 28

44

Q2/07

P&B 1.9 3.7 65

Q2/06 78% 45% 40% 42% Chg

4.5 9.1 22

Q2/06 33% 33% 0% 26% Chg

5.9 10.2 17

Q2/07

52 52

• 11

63

Q2/07

SOOSD FID CBD 10.3 1.5 43

Q2/06 9% 9% 12% 10% Chg

15.6 2.8 43

Q2/07

50 50

• 38

88

Q2/07

12.7 14.5

Lending, bn

7.4 7.5

Deposits, bn

36 29

C/I ratio, % Q2/07 Q2/06

• 49%

59

Operating profit

• 20%

63

Profit before loan losses

• 3%
• 15%

Chg*

• 36

Total expenses

99

Total income Q2/07 EURm

* Adjusted for IMB

73

Orgresbank

• Income statement consolidated from

Q2

• Focus on Russian corporate

customers, Nordic corporate customers and personal customers in high-end segment

Long term targets to be decided during

autumn

• Growth with strict cost and risk

management

9 9

• 10
• 3
• 7

19 1 3 2 13 Q2 2007 Profit before loan losses Other expenses Loan losses Staff costs Operating profit Total expenses Total income Other income Net gains/losses on items at fair value Net fee and commission income Net interest income EURm

74

Asset Management product result

EURm Q2/Q2

• Product result up 26%
• Improved revenue margin and stable

expense margin

• Strict cost management

Q2oQ1

• Product result up 3%, annualised

12%

• Improved asset mix

82 113 100 103 78 10 20 30 40 50 60 70 80 90 100 110 120 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

143.9 52 Q2/06 164.9 48 Q2/07 AuM, EURbn C/I ratio, % Key ratios

75

Life insurance, product result

EURm Q2/Q2

• Up 29%
• Stable growth in Gross written

premiums

• Strong sales in Denmark and Poland
• Improved investment result
• Moderate cost development
• Swedish Life market still effected by

the regulatory changes

52 74 58 67 61 10 20 30 40 50 60 70 80 90 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

9

• 0.5

Q2/06 11 0.8 Q2/07 Financial buffers, % Inv return, % Key ratios

76

Group Treasury, operating profit

10 6 39 27 28 21 34 42 32 32

20 40 60 80 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Group Investment Group Funding

EURm YoY

• Strong investment earnings
• Supported by gain in OMX
• Successful money market positions in

Group funding

Q2/Q1

• Strong operating result despite

increasing interest rates

CRO Presentation

78

Nordea’s IRB model approved

• Corporate and Institutions included in 2007
• Approx. 50% of credit portfolio
• Retail portfolio gradually to be included under IRB foundation

Standardised Standardised Standardised Standardised Operational Risk Foundation Foundation Standardised Foundation Foundation IRB Foundation Foundation IRB Advanced Advanced IRB Credit Risk Institutions Corporate Retail 2007 2008 2009 2010

79

Basel 1 Standard IRB Retail AIRB

Gradual reduction of RWA through 2010

Basel 1 FIRB/SA IRB Retail AIRB

(77)% (13)% (22)% (35)% (41)% (31)% (36)%

Market risk

Basel 1 floor

(22)% (16)%

Basel 1 floor

Market risk Market risk Market risk Op risk Op risk Op risk

(12)% (13)% (77)%

Corporate & Inst. Portfolio* Total credit risk Total RWA Retail Portfolio**

Basel 1 FIRB IRB Retail AIRB Basel 1 FIRB/SA IRB Retail AIRB

Credit risk RWA

* Corporate portfolio includes counterparty risk in Basel II (FIRB, IRB Retail and AIRB), calculated as market risk according to Basel 1 rules ** Retail includes all household exposures and SME corporates with exposure under 100 EURt

80

13.5 10.9 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

EUR bn

200 160 50 100 150 200 250 Basel I 2007 H1 2007 H1 Pro forma (1) EUR bn

Nordea expects to have excess capital after full implementation of Basel II in 2010

20% expected reduction in RWA by 2010 incl. Pillar 2 effects Reducing required capital by approx EUR 2.6bn by 2010

1) RWA based on full introduction of Basel II (2010) with portfolios as of end June 2007 2) Required capital based on 20% lower RWA and same capital ratios as of end June 2007

6.8% 6.8%

20% reduction in RWA Implications for Tier I capital

H1 2007 2010 (2)

81

Capital Adequacy Situation- Overview

189.4 Total RWA, incl. floor 200.4 Basel I RWA 4.3 RWA Market risk

3.2 Basel I reporting entities 66.9 Standardised 90.3 IRB Foundation

160.4 RWA Credit risk

0.1 FX risk, other 3.3 Trading book non-VaR 0.8 Trading book VaR

175.6 Total RWA Basel II 11.0 RWA Operational risk H1 2007

82

Implications of Basel II for Nordea

• Reduction of required capital over time
• Enhanced business processes
• Efficient processes for credit granting
• Focus on capital efficiency
• Improved risk management processes based on
• Improved data quality
• Unified processes
• Risk based pricing
• Efficient credit risk mitigation (collateral)
• Alignment of Regulatory and Economic Capital

Creates value

83

Income

• Lending margin
• Fees and commission

Cost of Capital

• Company ratings – point in time
• Economic Capital
• Defined cost of Equity

Expected losses - historical data on default statistics

• Current assessment of expected losses is on average 17bp

Operating expenses Hurdle pricing to achieve Economic Profit

Nordea’s model for pricing of credits

84

Managing pricing over the economic cycle

• Avoid long maturities with fixed pricing
• Price step-ups
• Pricing grids based on rating or covenants
• Low hold levels on unsatisfactorily priced

deals - syndications

1 2 3 4 5 6 7 00-01-03 00-05-03 00-09-03 01-01-03 01-05-03 01-09-03 02-01-03 02-05-03 02-09-03 03-01-03 03-05-03 03-09-03 04-01-03 04-05-03 04-09-03 05-01-03 05-05-03 05-09-03 06-01-03 06-05-03 06-09-03 07-01-03 07-05-03

%

5 years interest rate

85

• Increasing default rates
• Increasing cost of capital
• Improved risk adjusted prices expected

Pricing power in lending is contra cyclical

Credit spreads likely to increase when economic cycle turns

• 5.000

10.000 15.000 20.000 25.000 30.000 S 6+ 6 6- 5+ 5 5- 4+ 4 4- 3+ 3 3- 2+ 2 2- 1+ 1 1- 0+ 0- Exposure (EUR mill.) Q4 2006 Q1 2007

Rating distribution, corporate and sovereign customers

86

Loan portfolio by customer category*

85 84 82 78 79 83 80 84 91 97 100 101 105 105 113 123 44 46 48 49 50 53 55 56 58 60 63 65 66 68 71 74 80 14 15 15 16 16 17 17 17 18 19 19 20 20 21 21 22 23 119 93 76 23

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 Q3/06 Q4/06 Q1/07 Q2/07

Corporate lending Housing loans Other loans

EURbn * Excluding public sector

87

Public sector 2.1% Household customers 45.0% Companies 52.9% Household customers 44.8% Public sector 1.8% Companies 53.5%

End Q2/06, EUR 198.8bn End Q2/07, EUR 229.6bn

Loan portfolio by customer group

88

Housing loans 77.1% Other loans 22.9%

Lending to household customers

End of Q2/07 EUR 102.6bn

• Other loans comprise
• Consumer credits
• Investment credits
• Car financing
• Overdraft facilities
• Credit cards
• Home equity credits

89

Other 7% Real estate 27% Construction 3% Agriculture & Fishing 5%

• Transp. &

Communication 5% Finance 11% Renting,Consulting and other services 11% Manufacturing 16% Commerce and services 10% Shipping & Offshore 5%

Lending to companies by industry

End of Q2/07 EUR 123.1bn

90

229.6 6.1 6.7 13.1 13.9 13.2 19.4 11.8 6.3 3.9 32.5 102.6 Q2/07 222.2 5.9 6.6 13.9 12.4 12.7 17.5 12.6 6.7 3.6 31.6 98.7 Q1/07 214.0 5.7 6.4 14.2 12.5 12.7 15.0 11.1 5.9 3.4 30.7 96.4 Q4/06 201.1 5.3 6.1 13.7 12.5 8.4 14.6 10.8 5.9 3.3 28.6 91.9 Q3/06 198.8 5.2 5.8 14.5 12.0 9.6 14.5 10.4 5.8 3.6 28.0 89.4 Q2/06 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

91

USA 1.1% Latin America 0.6% Other 7.5% Nordic countries and P&B 92.5% EU countries 3.9% Other non OECD 0.6% Other OECD 0.4% Asien 0.9%

Lending by geographical area

End of Q2/07 EUR 229.6bn

Nordic countries and P&B, EURbn

• Denmark

62.5

• Sweden

59.9

• Finland

44.5

• Norway

39.6

• P&B

6.2

92

45 40 132 Provisions for off balance sheet items 1,266 1,118 941 Total allowances 79 69 70 Total allowances / Impaired loans, gross individually assessed (%) 1,158 354 47 0.40 852 764 1,616 Q4 2006 367 282 Allowances for collectively assessed loans 1,311 1,073 Total allowances and provisions 0.36 0.30 Impaired loans, net / lending (%) 56 49 Allowances, individually assessed / Impaired loans, gross, (%) 707 693 Impaired loans, net, individually assessed 899 659 Allowances for individually assessed loans 1,352 Q2 2007 1,606 Q2 2006 Impaired loans, gross, individually assessed EURm

Impaired loans and total allowances

93

8 8 Credit institutions 27 16 43 Financial operations 2 1 3 Public sector 3 3 6 Shipping 27 18 45 Construction 40 23 63 Transport, communication 18 15 33 Agriculture & Fishing 78 102 180 Renting, Consulting and other services 37 37 Other companies 102 88 190 Trade and services 131 181 312 Manufacturing 659 42 125 Provisions 1.352 103 329 Gross 693 61 204 Net Total Real estate Household customers

• EURm. End of Q2/07

Impaired loans

94

Loan losses

EURm 58 86 299 101

• 147
• 140
• 381
• 89
• 54
• 13

126

• 129
• 140
• 28
• 82
• 420
• 270
• 120

30 180 330 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Gross Reversals Net

YoY

• Continued flow of recoveries and low

new provisions

• Stable credit quality in all markets

Economic capital

96

Economic capital (EC)

EURbn

9.0 9.3 9.6 9.9 10.3 9.2

1 2 3 4 5 6 7 8 9 10 11 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

1,157 Life 456 Treasury 2,118 CIB 107 Asset Mgmt 119 GPT 3 Other 6,356 Retail Banking 10,315 Q2/07 Total EC per business area (EURm)

97

Economic capital – distribution

End of Q2/07

Credit risk 65% Market risk 15% Business risk 10% Operational risk 9% Life risk 1%

Retail 62% CIB 21% Asset Mgmt & Life 12% Treasury 4% Other 1%

Facts & figures

99

Facts & Figures, content

Business areas

Page 100

Balance sheet

Page 129

Market position

Page 132

Appendix

Page 133

Retail Banking

101

Retail Banking lending and deposit volumes

26.8 16.7 26.6 23.9 Q2/07 25.2 15.6 25.6 22.3 Q1/07 26.0 14.7 25.8 21.7 Q4/06 23.9 14.3 25.0 21.6 Q3/06 23.9 14.2 25.0 21.4 Q2/06 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 Denmark Sweden Finland Deposits, EURbn 52.8 33.3 42.1 55.6 Q2/07 51.2 30.5 40.9 54.3 Q1/07 51.1 28.8 39.5 52.5 Q4/06 48.8 27.4 38.6 48.7 Q3/06 48.3 26.8 37.7 47.5 Q2/06 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 Denmark Sweden Finland Lending, EURbn

102

Retail Banking breakdown of lending

4.7 18.2 19.2 Q2/07 4.6 17.6 18.8 Q1/07 4.0 17.2 18.3 Q4/06 4.3 16.5 17.7 Q3/06 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 Corporate Consumer lending Households mortgages Finland, EURbn 6.9 23.7 23.7 Q2/07 6.7 23.1 22.9 Q1/07 6.5 22.5 21.9 Q4/06 6.3 21.8 19.1 Q3/06 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 Corporate Consumer lending Household mortgages Denmark, EURbn

103

Retail Banking breakdown of lending

4.2 21.0 25.7 Q2/07 4.0 20.3 25.2 Q1/07 4.1 20.5 24.9 Q4/06 3.7 19.5 24.0 Q3/06 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 Corporate Consumer lending Household mortgages Sweden, EURbn 1.1 16.1 16.2 Q2/07 1.1 15.3 14.3 Q1/07 1.0 14.7 13.3 Q4/06 1.0 14.0 12.7 Q3/06 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 Corporate Consumer lending Household mortgages Norway, EURbn

104

Retail Banking breakdown of deposits

8.3 9.9 8.3 Q2/07 8.2 9.7 7.8 Q1/07 7.9 9.9 7.9 Q4/06 7.7 9.9 7.4 Q3/06 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 Corporate Households, savings accounts Households, current accounts Finland, EURbn 11.2 3.5 9.3 Q2/07 10.7 3.2 8.4 Q1/07 10.0 3.4 8.3 Q4/06 9.9 3.3 8.3 Q3/06 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 Corporate Households, savings accounts Households, current accounts Denmark, EURbn

105

Retail Banking breakdown of deposits

9.1 5.8 11.9 Q2/07 8.4 5.3 11.5 Q1/07 7.8 5.8 12.5 Q4/06 7.8 5.5 10.6 Q3/06 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 Corporate Households, savings accounts Households, current accounts Sweden, EURbn 4.1 2.2 10.4 Q2/07 4.0 1.9 9.6 Q1/07 3.9 2.0 8.8 Q4/06 3.8 2.1 8.3 Q3/06 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 Corporate Households, savings accounts Households, current accounts Norway, EURbn

106

Retail Banking margins

1.81 1.08 3.09 0.57 0.89 Q2/07 1.76 1.06 3.25 0.56 0.90 Q1/07 1.74

• 1. 06

3.46 0.57 0.92 Q4/06 1.69 1.03 3.53 0.63 0.95 Q3/06 1.66 1.02 3.61 0.70 0.98 Q2/06 0.81 0.76 0.75 Mortgages, households 3.80 3.75 3.66 Consumer loans, households 1.62 1.01 1.00 Q1/06 1.54 1.05 1.04 Q4/05 1.55 1.06 1.06 Q3/05 Lending to SME’s Deposits, households Deposits, SME’s %

Payments & transactions

108

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- Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-06 Feb-06 Jun-06 Oct-06 Feb-07 Jun-07 Mill.

E-banking payments

5 10 15 20 25 30 35 40 45 50 55 60 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 Q3/06 Q1/07 Denmark Finland Norway Sweden Mill.

109

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 Sep-06 Jan-06 May-06

Debit cards Credit cards

Mill.

Card payments

20 40 60 80 100 120 140 160 180 200 220

Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Q3/06 Q1/07

Mill.

110

Payment transactions, households

50 100 150 200 250

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 Q3 06 Q4 06 Q1 07 Q2 07

Manual transactions Payment ATMs Card payments Cash withdrawal ATMs Direct debit Netbank payments

111

Payment transactions, households

683 91.7 57.2 80.0 395.2 7.3 51.5 H1 07 97.6 117.3 139.3 155.7 168.3 E-banking payments 961 1,026 1,109 1,204 1,300 Total 81.5 204.4 395.5 31.7 150.6 2002 86.1 197.4 459.9 27.1 137.7 2003 98.5 190.4 527.8 23.6 129.1 2004 621.0 735.1 Card payments 19.7 16.3 Pay terminals 124.6 108.7 Manual transactions 181.7 164.8 Cash withdrawal ATM 106.3 2006 101.2 2005 Direct debit Mill.

Corporate and Institutional Banking

113

CIB lending and deposit volumes and margins

0.84 42.3 6.2 10.2 2.8 14.5 Q2/07 0.85 38.2 5.2 9.9 1.7 12.9 Q1/07 0.86 36.4 4.6 9.4 1.5 12.7 Q4/06 0.83 31.1 3.8 9.1 1.3 12.0 Q3/06 0.87 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 Total* Poland and Baltic Corporate Banking Division SOOS Financial Institutions Division Lending, EURbn Margins**, % * Incl. Markets volumes ** Excl. Markets and Poland and Baltics 0.32 33.5 2.7 5.9 15.6 7.4 Q2/07 0.36 31.0 2.4 4.5 14.5 8.2 Q1/07 0.34 29.3 2.3 4.3 13.0 7.8 Q4/06 0.38 25.1 2.0 3.8 11.3 6.7 Q3/06 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 Total* Poland and Baltic Corporate Banking Division SOOS Financial Institutions Division Deposits, EURbn Margins**,%

114

Nordea operations in New European Markets

50 9 0.2 % 0.3 % 317 569 918 1,113 35 29,300 Russia 242 6 2 8 3 Operating profit (Q2), EURm 1.2 % 2.7 % 3.8 % 7.2 % Market share, deposits, % 18 1.9 % 1,468 2,234 2,387 937 48 387,300 Poland 6 5 4 Country position, overall 2,969 222 385 301 Number of FTEs 132 12 19 18 Branches/salespoints 1,319,4001 62,600 51,950 59,250 Customers 7,914 1,178 1,923 1,509 Total assets, EURm 8.9 % 468 1,854 Latvia 9.4 % 604 1,427 Estonia 6.5 % 283 1,097 Lithuania Market share, lending, % 3,139 Deposits & Funds, EURm 7,180 Commitments3, EURm Total End of Q2/07

1 Incl. Polish Life customers 2 Difference compared to summary of country result is explained by booking of provisions and allocated headoffice costs 3 Includes guarantees

Asset Management & Life Insurance

116

Breakdown of AuM by market and channels

* All funds targeted at Nordic Retail segment. ** Includes pension pools products

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 Q2/07 EURbn 164.9 38.7 8.7 7.9 1.9 19.2 0.1

• 5.4
• 19.5

16.9 2.8 9.8

• 11.7

5.5 3.7 3.1 1.8 0.6 18.8 9.2 5.4

• 7.6

4.0 1.3 58.7 39.5 13.8 33.9 18.4 0.6 26.4 56.6 5.4 37.8 Life & Pensions**

117

67 65 79 71 72

• 22
• 21
• 23
• 21
• 21

32 31 43 36 37

• 30
• 20
• 10

10 20 30 40 50 60 70 80 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Income margin Operating expenses margin Result margin

Asset Management margins

Bps

• Improved income margin Q2/Q2
• Underlying changes in income margin

mix – both management fee margins and transaction income margins improved, with management fee margin improvements accounting for the majority of the income margin increase compared to second quarter last year

Margins calculated using average AuM for Asset Management Activities excl. Nordic Private Banking

118

Asset structure*

Q2/07

*Average AuM for Asset Management activities excl. Nordic Private Banking activities.

Q2/06

Nordic fixed income 46% Int'l. equities 26% Nordic equities 14% Int'l. fixed income 14% Nordic fixed income 41% Int'l. equities 26% Nordic equities 15% Int'l. fixed income 18%

119

European fund distribution

• 1,000

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Q1/02 Q3/02 Q1/03 Q3/03 Q1/04 Q3/04 Q1/05 Q3/05 Q1/06 Q3/06 Q1/07 Inflow AuM

EURbn

5402 666

120

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

121

Life - profit drivers

356 459 816 31 67

• 4

15 56 10 2 7

• 1

38 Q2/07 416 605 1.021 32 58

• 5

17 46

• 3

8 5

• 1

37 Q1/07 511 602 1.112 37 74

• 5

12 67 4 11 9

• 4

47 Q4/06 267 454 720 37 61

• 4

14 51 5 6 6 34 Q3/06 404 560 964 35 52

• 4

13 43 5 1 6

• 4

35 Q2/06 Of which income within Retail Key figures Premiums written, net of reinsurance Here of from Traditional business Here of from Unit-linked business 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

122

Life – net written premiums by market

816 98 87 178 154 299 Q2/07 1.021 125 97 213 257 329 Q1/07 1.112 150 191 238 205 328 Q4/06 153 95 Sweden 124 97 Other 964 720 Total 205 134 Norway 262 244 Denmark 221 151 Finland Q2/06 Q3/06 EURm

123

Life, investments

EURbn

• Equities

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

• Bonds

3/4 Nordic issuers Primarily government and

mortgage institutions

5 10 15 20 25 30 35

Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

Equities Real Estate Alternative investments Bonds Unit linked

30.3 31.1 32.5 33.0 33.6

124

Life - asset allocation

23 23 33.0 33.3 Total 13 22 19 27 Q2/07 Equities, % 13 21 20 26 Q1/07 3.6 4.9 8.8 14.5 Q1/07 Q2/07 3.7 Sweden 5.0 Norway 8.8 Finland 14.7 Denmark Total, EURbn

125

Life - solvency situation

End of Q2/07 177 51 118 67 Sweden** 337 548 779 232 Finland 129 152 669 517 Denmark 231 235 414 179 Norway* Solvency in % of requirement Solvency buffer Actual solvency Required solvency EURm

* Excluding unit linked company ** Nordea Life Sweden I

126

Life – solvency sensitivity

End of Q2/07 177 231 337 129 Solvency in % of requirement 146 231 261 125 Equities drop 12% 212 231 372 128 Interest rates down 50bp 231 Norway 142 Sweden 129 Denmark Finland 303 Interest rates up 50bp

127

Life – financial buffers

11.4 16.9 6.7 7.5 14.0 Q2/07 2,503 267 268 394 1,574 Q2/07 13.6 220 Sweden

% of total provisions EURm

10.6 2,337 Total 7.3 386 Finland 13.3 1,503 Denmark 6.1 228 Norway Q1/07 Q1/07

128

Life – buffers in different scenarios

End of Q2/07

EURm

267 268 394 1,574 Financial buffers, actual 246 179 218 1,311 Equities drop 12% 218 269 474 1,581 Interest rates down 50bp 267 Norway 309 Sweden 1,521 Denmark Finland 314 Interest rates up 50bp

Balance sheet

130

Balance sheet

375,003 15,545 28,539 7,905 31,986 97,146 32,044 132,608 29,230 375,003 77,348 30,998 229,583 28,561 8,513 30 June 2007 325,072 13,528 20,688 8,158 24,836 83,559 29,071 119,062 26,170 325,072 66,529 24,747 198,842 27,301 7,653 30 June 2006 15,322 Total equity 346,890 Total assets 32,288 Deposits by credit institutions 126,452 Deposits and borrowings from the public 31,041 Liabilities to policyholders 83,417 Debt securities in issue 346,890 25,254 8,177 24,939 75,228 24,207 213,985 26,792 6,678 29 Dec 2006 Other liabilities 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

Market position

132

Market position in Nordic markets

9.9% 11.4% 30.7% 14.3%

• consumer lending

3.8% 12.1% 27.4% 17.4% Life & Pensions* 13.5% 16.3% 35.4% 19.4%

• lending

19.2% 18.1% 38.5% 25.1%

• deposits

17.8% 8.4% 32.6% 21.3%

• deposits

15.4% 12.0% 31.1% 15.4%

• mortgage lending

2.2% 12.8% Sweden 3.8% 6.9% Norway 3.7% 27.2% Finland 9.4% 13.3% Denmark Corporate customers Brokerage (June 2007) Investment funds Personal customers Market shares

Statistics mainly from April - May 2007 * Share Gross Written Premiums, 12 months rolling Q1 2007

Appendix

134

Ratings

AA AA AA AA Long R-1 (high) R-1 (high) R-1 (high) R-1 (high) Short DBRS AA- F1+ AA- A-1+ Aa1 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+ Aa1 P-1 Nordea Bank N AA- F1+ Aa1 P-1 Nordea Bank F AA- F1+ Aa1 P-1 Nordea Bank D Fitch Moody’s

*Covered bond rating

135

3.7

• 25
• 15
• 5

5 15 25 35 45

Bank of Irland Hbos Allied Irish Bank Danske DnB NOR SHB Barclays Santander Erste Bank Swedbank Lloyds Unicredito SEB Nordea RBOS BNP Societe Generale KBC Commerzbank ABN Amro

%

Top quartile

Total shareholder return (TSR) Ytd 2007 (2/1 2007 – 29/6 2007)

136

Largest registered shareholders, end June 2007

1.1 0.4 % 11.5 Seventh Swedish National Pension Fund

• 1.5

0.6 % 15.2 Fidelity Funds

• 2.6

0.8 % 21.4 Fourth Swedish National Pension Fund

• 1.4

1.8 % 46.8 Alecta 0.3 0.9 % 22.3 Second Swedish National Pension Fund 0.0 1.7 % 45.0 AMF Pension 9.2 3.1 % 81.1 Sampo Oyj

• 0.2

0.8 % 20.4 First Swedish National Pension Fund

• 0.5

1.4 % 36.7 SEB Funds

• 0.1

0.4 % 11.3 iShares Funds

• 2.9

1.0 % 26.0 Nordea Funds 12.7 0.2 0.7 % 18.6 Third Swedish National Pension Fund 0.0 0.6 % 15.0 AMF Pension Funds 10.7 55.2 % 1432.1 Other 100.0 % 0.4 % 0.5 % 1.2 % 2.1 % 2.5 % 4.0 % 19.9 % Percent of Nordea 0,0 Nordea Profit-sharing Foundation 2,594.1 Total number of outstanding shares 1.6 65.4 Robur Funds 0.6 53.8 SHB/SPP Funds 0.0 515.6 Swedish state 0.0 102.5 Nordea Denmark Fund 1.5 Henki-Sampo-Group 0.0 30.0 Skandia Life Insurance Change 30 days, mill shares Number of shares, mill Shareholder

137

4.18 3.28 5.11 4.05 4.27 3.95 4.12 3.77 30-03-07 4.81 3.47 5.74 4.43 4.95 4.26 4.77 4.01 30-06-07 0.63 0.19 0.63 0.38 0.68 0.31 0.65 0.24 Change Q2/07 Short, SE Long, SE Short, NO Long, NO Long, DK Short, DK Long, EUR (5 years) Short, EUR (one week) %

Market development – interest rates

138

Macro data – Nordic market

Source: Nordea Markets Economic Outlook May 2007. In Norway, forecasts are for mainland GDP

% 2006 2007e 2008e Gross domestic product DK 3.2 1.9 1.4 FI 5.5 3.5 3.3 NO 2.9 3.9 2.1 SE 4.4 3.3 2.8 Inflation DK 1.9 1.7 1.9 FI 1.6 2.0 1.9 NO 2.3 0.8 2.6 SE 1.4 1.9 1.4 Private consumption DK 3.4 1.9 1.5 FI 3.0 2.8 3.0 NO 4.3 4.0 2.0 SE 2.8 3.8 2.8 Unemployment DK 4.5 3.9 4.0 FI 7.7 7.2 6.8 NO 3.4 2.6 2.5 SE 5.4 4.8 4.5

139

Financial calendar 2007

Q3 report 2007 will be published 25 October (please note change of date)

www.nordea.com/ir

140

Disclaimer

• Certain statements made in this presentation are forward looking statements. Such statements are

based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, express or implied, by the forward looking statements. Factors that might cause forward looking statements to differ materially from actual results include, among other things, regulatory and economic factors. Nordea assumes no responsibility to update any of the forward looking statements contained herein.

• No representation or warranty, express or implied, is made or given by or on behalf of Nordea or its

directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of Nordea or any of its directors,

• fficers or employees nor any other person accepts any liability whatsoever for any loss howsoever

arising from any use of this presentation or its contents or otherwise arising in connection therewith.

• This presentation does not constitute or form part of any offer or invitation to sell or issue, or any

solicitation of any offer to purchase or subscribe for, any securities of Nordea, nor shall it or any part

• f it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or

investment decision.