Nordea overview and

direction

May 12, 2014

Lennart Jacobsen, Head of Retail Banking &

Country Senior Executive Sweden

ABG Sundal Collier presentation

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Highlights

Nordea delivers stable income and improving cost efficiency

Continued stable but low lending demand

Pick up in corporate advisory business

Continued strong activity in the savings area

Loan losses are down 12% q-o-q

Operating profit up 6% on Q1/13

Cost/income ratio improved to 49% compared to 51% in Q1/13

Fully loaded Basel III CET 1 ratio is up by 70 bps to 14.6% (Total capital ratio of

18.4%)

RoE up 30 bps y-o-y to 11.4%

2 •

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Financial result Q1/14

EURm Q1/14 Q4/13 Chg % Q1/13 Chg %

Net interest income 1 362 1 390 -2 -1 1 358 0 5

Net fee & commission income 704 703 0 0 623 13 16

Net fair value result 411 333 23 24 444 -7 -7

Total income* 2 501 2 469 1 2 2 506 0 3

Staff costs -756 -739 2 2 -754 0 4

Total expenses -1 237 -1 283 -4 -3 -1 267 -2 1

Profit before loan losses 1 264 1 186 7 8 1 239 2 5

Net loan losses -158 -180 -12 -12 -198 -20 -19

Operating profit 1 106 1 006 10 11 1 041 6 10

Net profit from continuing operations 840 760 11 12 783 7 11

Return on equity (%) 11.4 10.5 +90 bps - 11.1 +30 bps -

CET1 capital ratio** (%) 14.6 13.9 +70 bps - 12.1 +250 bps

Cost/income ratio (%) 49 52 - - 51 - -

* Includes other income

** Q4/13 and Q1/13 are estimated Basel III numbers

3 •

EURm Q1/14 Q4/13 Chg % Q1/13 Chg %

Net interest income 942 948 -1 0 955 -1 2

Net fee & commission income 280 271 3 3 266 5 8

Net fair value result 86 79 9 9 93 -8 -4

Total income 1 320 1 316 0 1 1 350 -2 1

Staff costs -339 -335 1 1 -345 -2 1

Total expenses -719 -750 -4 -4 -746 -4 0

Profit before loan losses 601 566 6 6 604 0 3

Net loan losses -124 -145 -14 -13 -131 -5 -2

Operating profit 477 421 13 13 473 1 5

4 •

The leading Nordic Retail bank

Retail Banking result Q1/14

Retail Banking contribution*

Operating income Operating profit FTE’s Lending Deposits

54% 45% 59% 67% 60%

* FY 2013

Chg %

Q1/13

39 -5

-5 -17

-19 -5

20 -5

-29 n.m.

-9 n.m.

EURm Chg %

Q1/13

Total income 249 -4 8

Staff costs -38 -7 6

Total expenses -110 -10 1

Profit before loan

losses 139 1 14

Net loan losses -14 27 40

Operating profit 125 -1 12

Chg %

Q1/13

374 -3* 1*

-73 -4 1

-213 -5 -1

161 -13 -9

-6 -45 -45

155 -10 -7

Chg %

Q1/13

301 16

-58 2

-161 1

140 41

-7 -46

133 55

EURm Chg %

Q1/13

Total income 392 -2

Staff costs -74 -1

Total expenses -206 0

Profit before loan

losses 186 -3

Net loan losses -67 -22

Operating profit 119 12

5 •

Geographically diversified Retail Banking operations

Retail Banking result Q1/14 - Country breakdown

*Adjusted for capital gain of EUR 23m in Q1/13

Retail Banking

6 •

Household lending Q412/ Q413/ Q413/ Q114/

% Q411 Q412 Q313 Q414

Nordea 4.9% 6.6% 1.8% 1.3%

Swedbank 3.3% 2.7% 1.1% 0.7%

SEB 10.5% 6.8% 1.4% 1.2%

Handelsbanken 2.2% 5.0% 1.3% 1.5%

More relationship customers and continued transformation

Acquired Gold, Premium and Private Banking customers Household lending Sweden

Mobile log-ons are

incl. bankdroids

+592%

2013

218

19

2012

124

24

2011

32 30

-35%

Mobile log-ons

Transactions in branches

Transactions / mobile log-ons, millions

20,447

Q4 12

19,896

Q3 12

19,993

Q2 12

22,582

Q1 12

21,297

+7%

FY 13

89,648

FY 12

83,768

Q4 13

22,970

Q3 13

23,649

Q2 13

22,582

Q1 13

Comments

90,000 new relationship customers in 2013

7% higher inflow of external customers than in

2012

More than 1,000 new mobile banking customers every

day

1.3m customers are active users of Nordea’s

mobile offerings, 500,000 more than one year ago

Manual transactions continue to decline

Strong inflows during second half of 2013

Significantly above current market share level

supporting the strong inflow of new relationship

customers

7 •

Future Outlook

8 •

Retail Banking customers rapidly changing behaviour

9 •

• Online/mobile growing rapidly

o mobile logon’s up roughly 600% last two years - # of logon’s

higher in mobile than in Netbank

• Branch traffic and cash transactions decreasing

o cash transactions down by roughly -20% per year last two

years

• Advisory services expected where and when the customer

wants it

o 30-50% of customers preferring remote advisory

• Price pressure on all products/services

o customers are increasingly price sensitive

CUSTOMER BEHAVIOUR CHANGES

Other Cards Netbank Mobile ATM Direct

mail

IVR Contact

centre

Branch

teller

Branch

meetings

Rapid Changes In Retail Banking

. . . Billions Of Customer Touch Points

Countless other touch

points:

• e-mail correspondence

• Phone calls to PBA/RM

• Facebook contacts

• Twitter

• Swish transactions

• Branch greeter queries

• … and many more

10 •

2m 360 degree

meetings

16m branch

teller contacts

113m ATM

transactions

204m mobile

logons

362m netbank

logons

1,4b card

transactions

27m contact

centre calls

59m letters

to customers

• Relations Customer relations built by great employees

BUT also by great products, processes, price, image/brand

• Data Ability to understand the customers, meeting their needs

BUT without violating the personal integrity

• Scale Ability to run an efficient high quality factory @ low cost

BUT yet personalizing each customer experience

Customer

Value

Low

Cost

Segmentation

Sophistication

Automation

Simplification

11 •

Great customer experiences in the future must leverage…

Retail Banking supporting changing customer behaviours –

Great customer experiences also in the future

12 •

• Increased investments in online and mobile

solutions as well as data driven services –

personalization in all touch points

CUSTOMER BEHAVIOUR CHANGES NORDEA RESPONSE

• Less manual cash services - removed

and/or replaced by ATM/ADMs

• Reduced branch locations

• Remote advisory services expanded

• Contact center expansion

o more complex advisory services and

extended opening hours

o Chat services being tested for further

flexibility

• Automation, digitalisation, and off-shoring of

processes to increase efficiency

• Simplification in everything we do (e.g.,

reduction of products)

• Discretionary spending reduced (marketing,

consultants, travel, etc.)

• Online/mobile

• Branch traffic and cash

• Advisory services

• Price pressure

Accelerated Cost Efficiency – Retail banking

13 •

• Discretionary Travel, Consultants, Marketing . . .

• Customer Behavior Distribution, cash, online, contact ctr . . .

• Simplification Products, processes, IT platform . . .

• Automation Automating processes, CESAM . . .

• Business Model Adjustments within existing strategy

Efficiency Framework

Simplification

14 •

Simplify

BUT

secure

sophistication

• Reducing low value add products

• Reducing # of variations of existing products

• …

• Culture – clarity, simplify, accountability . . .

• Fewer and shorter meetings, less attendees

• …

• Reduced # of processes

• Drive CESAM framework . . .

CentralizeEliminateSimplifyAutomateMove

• …

• Reduce # of applications

• Modularize and re-use of core

• …

• Re-use of processes and data across channels

• Simplify customer interface e.g., simpler forms

• Continue to optimize branch network, cash, locations

…

Channels

Processes

IT

Organisation

Products How?

How?

How?

How?

How?

Re-configuration of Retail banking network underway and

generating more relationship customers

15 •

911

813 766

583

423 381

19 32

218

0

50

100

150

200

250

0

100

200

300

400

500

600

700

800

900

1000

2011 2012 2013

# of locations

# of cash locations

# of branch transactions,millions

# of mobile logons,millions

71

73

78

80

73 74

80

82

2.9

3.1

2600000

2700000

2800000

2900000

3000000

3100000

70

72

74

76

78

80

82

84

86

2011 2012 2013

ESI - Satisfaction & Motivation

ESI - Loyalty

ESI - Daily work

ESI - Great customer experiences

# of relationship customers,millions

All in all – building the next generation relationship bank

16 •

Great personalized customer

value in every touch point …

• Where, what and when driven by

customer needs & preference

• Customer needs are foreseen and

deployed across all channels

… using financial and behaviour data

… efficiently & compliant

delivered by a simplified effective

back end

• Compliant processes with minimized

customer and employee hassle

• Simplified business model and IT

solutions low cost, high quality

Twitter

Internet bank

Mobile Facebook

Online meetings

Phone & IVR

Physical meeting

Cards

Letters

Customers

Thank you!

17 •

APPENDIX

18 •

Delivering advice in new ways – Remote pilot results

Meeting

efficiency up

by 10-20%

Swedish case shows 9% efficiency gain on 360 meetings and 22%

efficiency gain on other sales meetings

Norwegian remote pilot show reduction in average meeting length

from 45 to 36 minutes equivalent of 20% efficiency gain (with

screen sharing)

Customers

satisfied

Customer satisfaction score of 3.8 out of 4 for remote meetings

93% would like to have remote meetings again

Strong sales

and volume

effect

Business value and volumes equal to physical meetings

Opportunity to improve by deployment of better tools

19 •

Nordea overview and

direction

May 12, 2014

Lennart Jacobsen, Head of Retail Banking &

Country Senior Executive Sweden

ABG Sundal Collier presentation