Handelsbanken Large Cap Seminar 10 September 2012

Fredrik Rystedt Chief Financial Officer

Disclaimer

2 •

This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors.

Important factors that may cause such a difference for Nordea include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels.

This presentation does not imply that Nordea has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

• Nordea’s focused business model

• New Normal – the way to build the future bank model

• Key messages

4 •

Nordea in brief (Aa3 / AA- / AA-)

11 million customers - 9 home markets

- Approx. 10.5 million personal customers - 500,000 corporate customers, incl. Nordic Top 500

Distribution power - More than 1,000 locations in total - 6.6 million Netbank customers

Financial strength - EUR 9,3bn in income (2011)

- EUR 709bn of assets - EUR 27bn in equity capital - AA credit rating

- Core Tier 1 capital ratio of 11.8%

EUR ~28bn in market cap - One of the largest Nordic corporations

- A top-10 European retail bank

Nordea’s home markets Nordea is the largest financial service group in the Nordic and Baltic Sea region.

Nordea’s focused and prudent business model

5 •

Well diversified and balanced model

Relationship banking is key

Very risk focused

Resources efficiently used on core business

Fully integrated model across countries and business units

The Nordics and its structure as the home market

Retail Retail Retail Retail

Wholesale Wholesale Wholesale Wholesale

2009 2010 2011 H1/12

Customer driven

6 •

Total income per area, %

Capital Markets risk management result of risk in

customer transaction

Customer driven business model 96% customer-related, only 4% from Risk Management

Wealth Management Wealth Management Wealth Management Treasury

Treasury Treasury

Wealth Management

Treasury

7 •

• Household relationship customers up 42% since 2007

• Generates more income

• More satisfied customers

• And better risk control

Strengthened household customer relationships

1 900

2 100

2 300

2 500

2 700

2 900

3 100

3 300

Number of Gold and Private Banking customer, millions

Total relationship customers

- Leading Nordic Wholesale Banking platform

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-20 0 20 40 60 80 100 120

Important relationships*

Greenwich Quality Index**

Nordea

Peer 1 Peer 2

Peer 3

Peer 4

Important relationships are banks that are considered important to all domestic and international services. The Greenwich Quality Index reflects a [normalised composition] of all quantitative scores shown on a scale from 0 to1,000. Deviations from the mean value.

* **

8 •

Successful customer relationship strategy

Successful customer relationship strategy - Swedish corporate customers as an example

9 •

4743

3333

2011 2010 2009 2008

686264

56

2010 2011 2009 2008

59

474438

2011 2010 2009 2008

Lead Relationships (%)

Product Cross-sell Effectiveness (%)

Share Strategic Thinking (%)

Source: Greenwich Associates Large Corporate Banking surveys

The 1 or 2 most important bank or house bank used for

domestic and/or international services

The average number of products bought from the bank divided by the average number

of products used by its customers

With which bank customers share their strategic thinking

10

Risk focus and diversification An integrated and centralised risk and capital management function as well as credit portfolio composition

Geography

Products

Industry

Integrated and centralised risk management framework

• Risk awareness is incorporated in the business strategies • Clear risk, liquidity and capital management frameworks, including policies and instructions for different risk types, capital adequacy, capital structure and renumeration

• Nordeas credit portfolio is well diversified both in terms of industry sector and geography

Household 44%

Real estate 13%

Other, public and org 9%

Other financial institutions

4%

Industrial commercial services

4%

Consumer staples 4%

Shipping 4%

Retail trade 4%

Other 13%

Public Sector 1%

11

56% corporate lending and 44% household 85% of the portfolio in the Nordic countries

Credit portfolio by sector, EUR 350bn

Nordic countries and Poland, Baltics

and Russia 91% EU countries

4%

USA 1%

Latin America 1%

Asien 1%

Other OECD 0%

Other non OECD 2%

Other 9%

Credit portfolio by country, EUR 350bn

Nordic countries and Poland, Baltics and Russia. EUR 320bn Denmark 96.9 Sweden 88.3 Finland 55.6 Norway 57.6 Poland 6.8 Baltics 8.6 Russia 5.9

With its inherent diversification strength Q2 2012

-60

-50

-40

-30

-20

-10

0

10

20

H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12

Bps

… generates low credit losses over the business cycle

12 •

Credit risk appetite 25bps

Loan loss ratios, Q1/02 – Q2/12

13 •

Nordea’s business model has proven highly effective…

Total operating income, EURm

• Low volatility in earnings due to diversification in terms of geography, industry sectors and products

• Main focus on traditional banking • Universal and diversified banking

model • Customer-driven capital markets

operations

• The model has proven resilient on income and profitability

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Total operating income 2001 - 2011 (EURm)

Net interest income Net commission income Trading income Other income

… with one of the most stable profit development among banks

Profit before tax development through the financial crisis (Indexed) Index = 100

in Europe

Nordea

European peers**

Nordic peers*

* Nordic peers: Danske Bank, DNB, SEB, SHB, Swedbank

** Aggregate of a selected number of banks in the European peer group: BBVA, BNP Paribas, Commerzbank, Erste, Intesa, KBC, Santander, SocGen, UniCredit

-80

-60

-40

-20

0

20

40

60

80

100

120

Q1

2007

Q2

2007

Q3

2007

Q4

2007

Q1

2008

Q2

2008

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

Q3

2010

Q4

2010

Q1

2011

Q2

2011

Q3

2011

Q4

2011

Q1

2012

Q2

2012

15 •

…which gives strong capital generation…

Core tier 1 capital, EURm

• Continued strong profit generation

• Generated capital of EUR 6.9bn since 2006* • In addition distributed EUR 6.3bn

to shareholders

• Strong capital generation gives good flexibility

*Adjusted for rights issue

16 •

…which together with strict RWA control…

182 180

183

185

182 181

Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

Risk-weighted assets (RWA), EURbn*

• RWA decreases due to: • Improved credit quality • Decrease in market risk

• FX increases RWA

* Basel II excluding transition rules

17 •

… generates a clear increase in Core tier 1 ratio

Core tier 1 capital ratio, % (excl. hybrids)*

* Basel II excluding transition rules

• Increase despite continued business growth • Lending growth of 16% • RWA reduction of 2%

• Focus on capital efficiency gives result

• Improved ratio by 180 bps since Q2/10

18 •

CRD IV and IAS 19 impact offset by RWA efficiency and roll-outs

• CRD IV impact on RWA by EUR 14bn • CVA • Asset value correlation

• IAS19 calculated at end 2011

• Roll-outs and efficiency effects RWA by EUR 19bn

Core tier 1 ratio impact

11.8%

1.0%

0.2%

1.1%

11.7%

19 •

Nordea Group is LCR-compliant

49

56 61

56 58 62 64

60

68

Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

Liquidity buffer, EURbn

• Nordea is LCR compliant on a Group level • LCR of 144% • LCR compliant in all

currencies

• Nordea has increased cash and balances with central banks by EUR 13bn to be well prepared for turbulent markets

20 •

Overall stable credit quality

245

207

166

242

118 112

263

218 217

Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

Total net loan losses, EURm

• Continued low loan losses in Norway, Sweden and Finland

• Elevated levels in Denmark and Shipping

Individual 1,782

Individual 2,043

Individual 2,240

Collective 674

Collective 562

Collective 453

Q2/11 Q1/12 Q2/12

Performing 2,633

Performing 3,473

Performing 3,743

Non-performing 2,049

Non-performing 2,195

Non-performing 2,632

Q2/11 Q1 /12 Q2/12

21 •

Impaired loans

Impaired loans, EURm Total allowances, EURm

* Performing: Allowance established, payments made * Non-performing: Allowance established, full payments not made on due date

• Impaired loans increased to 164bps (147bps) of loans

• Increase to a large extent due to clarified and stricter rules in Denmark introduced by Danish FSA

• Stable development in other countries • 59% of impaired loans performing

• Total allowances in relation to impaired loans decreased to 42% (46%)

• Individual allowances has been stable at a level of 35%

• Nordea’s focused business model

• New Normal – the way to build the future bank model

• Key messages

New Normal – the way to build the future bank business model

• Ensure continued great customer experiences • Product innovation and enhancements • Further focus on advisory bank concept • Mitigate impact on customers from regulations

• Ensure sufficient RoE to secure access to capital and attractive funding

• Customer and product and advice related activities • Cost efficiency • Capital efficiency

• Approx. 100 projects ongoing

23 •

34 169 33 844 33 068 32 557

31 988

Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

1 275 1 242 1 266 1 276 1 290 171

Q2/11 Q3/11 Q4/11 Q1/12 Q2/12One-off restructuring charge

The New Normal plan continues to deliver in terms of efficiency

24 •

Capital efficiency Funding / liquidity efficiency Cost efficiency

Group FTE development

Total expenses, EUR million

RWA development, EUR billion Liquidity premia – status update

Purpose • Align internal pricing with true cost/value of funding and liquidity • Enhance understanding of product and customer profitability

Principles • Calculated at contract level • Reflect the characteristics of the contract, e.g. maturity • Based on Nordea’s cost of funding curve Status • “Granular liquidity premia” allocated to business areas, but not below • Pilots are carried out in a number of areas to assess impact • Roll-out across most business units planned for Q1 2013

185,1

9,5 6,9

3,7

3,9

8,7

181,3

Q4/

10

Cre

dit q

ualit

y

Gro

wth

FX e

ffect

s an

d ot

her

Base

l 2.5

RW

A in

iativ

es

Q2/

12

63

11

95

56

16

96

Retail Banking: Execution of New Normal

25 •

Retail Banking – Key activities Retail Banking – Key results

• Execution of the New Normal plan with increasing focus on the most profitable customer relationships and segments

• Sharper business selection and pricing

• Capital discipline through RWA efficiency initiative

• Continued development of the efficient distribution strategy

• Firm cost containment, by strong focus on centralisation, digitalisation and process automation

• Constant attention on maintaining a high customer satisfaction

C/I %

RaRoCaR %

RWA EUR bn *

EURm H1/12 H1/11 Growth

Total operating income 2,746 2,565 7%

Total operating expenses -1,526 -1,617 -6%

Operating profit 949 678 40%

H1/2011 H1/2012

* Increase related to changes in risk weights on mortgage in Poland

31 21

74

32 22

72

Wholesale Banking: Execution of New Normal

26 •

Wholesale Banking – Key activities Wholesale Banking – Key results

• Increased intensity and relevance in all interactions with customers

• Focus on core customer relationships, wallet share and fee-based income

• Alignment of the Wholesale Banking value chain to improve customer service experience and drive efficiency

• Adapting to the new regulatory framework – what and how we do business with our customers

• Strict internal resource management

EURm H1/12 H1/11 Growth

Total operating income 1,455 1,379 6%

Total operating expenses -468 -431 9%

Operating profit 820 866 -5%

H1/2011 H1/2012

C/I %

RaRoCaR %

RWA EUR bn

191,1 199,8

Wealth Management: Execution of New Normal

27 •

Wealth Management – Key activities Wealth Management – Key results

EURm H1/12 H1/11 Growth

Total operating income 697 661 5%

Total operating expenses -385 -369 4%

Operating profit 311 292 7%

• On-going business model efficiency initiatives in Private Banking • Migration of lower net value customers to Retail

• Continued front-line lean program

• Launch of new support organisation, aiming to increase # customers/FTE

• Implementation of new, comprehensive capital model to further improve RWA efficiency

• Continued focus on cost reduction and efficiency in Asset Management • 3 funds closed and several funds

reengineered H1

• Migration of Life & Pensions customers to more capital light products • 75% of GWP in capital light products in Q2,

69% in Q1 and 59% 2011

C/I %

RWA EUR bn

AuM EUR bn

H1/2011 H1/2012

3,5 3,8

56 56

• Nordea’s focused business model

• New Normal – the way to build the future bank model

• Key messages

Key messages

29 •

• Nordea’s customer driven business model delivers • Significant improved customer relationships and stregthened market positions • Stable revenue growth • Solid credit quality • Strong capital generation

• New Normal plan continue to delivers efficiency • On costs • Capital • And funding and liquidity

Handelsbanken Large Cap Seminar 10 September 2012

Fredrik Rystedt Chief Financial Officer