Nordea Bank Abp · OMXHEX:NDA_FI
Nordea Bank Abp — Q3 2005 Earnings Presentation
138 slides from Nordea Bank Abp's earnings presentation, Oct 26, 2005
Slide 1: Investor Presentation 26 October 2005
Investor Presentation 26 October 2005
Slide 2: CEO presentation
x Q O Q 0 Z CEO presentation
Slide 3: Operating profit up 30% in the first nine months of 2005
Operating profit up 30% in the first nine months of 2005 z Operating profit EUR 2,300m (EUR 2,068m in the first nine months of 2004), up 30% when excluding real estate gain of EUR 300m last year z Total income increased by 9% to EUR 4,877m (EUR 4,481m) – Net interest income up 6% z Total expenses la
Slide 4: Net interest income up by 6% year on year
Net interest income up by 6% year on year EURm YoY: 3,000 z Up 6% 2,730 2,500 2,575 z Volume growth more than offset margin pressure 2,000 z Strong growth in lending, up 18% 1,500 z Growth in focus areas – mortgage 1,000 – SME – consumer finance 500 – Poland and Baltics – Long term savings 0 z Margi
Slide 5: Expenses
Expenses EURm 979 YoY: 1,000 43 914 896 865 413 902 35 z Expenses largely unchanged 34 31 39 800 353 364 345 z Efficiency gains compensating 334 – increased business volumes – inflation 600 z Costs in 2005 more evenly 523 515 515 520 distributed 492 400 z Staff costs up 3% – reduction of FTEs – gene
Slide 6: Cost/income ratio continues down
Cost/income ratio continues down % 70 z Target: Continuous improvement 60 64 62 60 z Flat costs while business volumes 50 56 continue to grow 40 – productivity gains 30 z Income up 9% 20 10 0 2002 2003 2004 Jan-Sep 2005 6
Slide 7: Net loan losses continues to be positive
Net loan losses continues to be positive EURm YoY: 60 40 z Positive result from loan losses 42 at EUR 130m 20 0 z Sale of shares in Pan-Fish, -3 -2 -10 -6 -23 recovery of EUR 98m -20 QoQ: -40 z Overall strong credit portfolio -60 -80 z Reversals exceeded new -101 provisions by EUR 23m -100 -120 Q1/0
Slide 8: Strong development in the third quarter
Strong development in the third quarter z Volume growth continued in the quarter z Operating profit at EUR 728m (EUR 884m in Q2 2005) – continued growth but lower loan loss reversals and lower investment result compared to strong second quarter z Total income EUR 1,601m (EUR 1,694m) z Total expenses
Slide 9: Stable growth of net interest income
Stable growth of net interest income EURm QoQ: 1,000 z Up 1% 920 913 920 z Total lending up 4% 875 897 800 – mortgage lending 4% – SME 4% – successful launch of home equity 600 products z Continued pressure on 400 corporate margins 200 z Margin pressure on new mortgage sales seems to be 0 Q3/04 Q4/0
Slide 10: Continued strong growth in business volumes
Continued strong growth in business volumes z Consumer lending up 15% year-on-year z Lending to small and medium-sized corporates increased by 15% z Mortgage lending to personal customers up 13% z Assets under management increased by 17% to EUR 147bn z Net written premiums in Life increased by 15% z
Slide 11: Double digit growth in most areas
Double digit growth in most areas YoY QoQ z Lending, total – Mortgage lending 13% 4% – Consumer lending 15% 3% – SME lending 15% 4% – CIB lending 33% -1% z Deposits, total – Household deposits 8% 3% – SME deposits 5% 3% – CIB deposits 10% -6% 11
Slide 12: Successful launch of home equity concept
Successful launch of home equity concept 12
Slide 13: Customer programmes - Increasing business rewards both customers & Nordea
Customer programmes - Increasing business rewards both customers & Nordea Strong growth in core segment Sep 04 to Sep 05 z Key elements in the progamme offered to the customers: 15.8% – More favourable conditions the more business 6.6% you do with Nordea - and for the core 8.7% 139 customers a named
Slide 14: Total lending on the rise
Total lending on the rise EURbn 200 175.1 182.1 180 170.1 154.5 161.3 160 140 120 100 80 60 40 20 0 04 04 05 05 05 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Corporate Housing loans Consumer loans Public sector 14
Slide 15: Stable growth in deposits
Stable growth in deposits EURbn 120 110 108.0 104.7 105.2 105.7 100 97.1 90 80 70 60 50 40 43.8 44.1 45.5 46.7 42.9 30 20 10 0 04 04 05 05 05 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Of which household deposits 15
Slide 16: Assets under Management at all time high
Assets under Management at all time high EURbn 160 146.7 z Up 17% year on year to EUR 135.8 141.7 140 130.6 147bn 125.7 120 100 80 60 40 20 0 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Nordic retail funds Nordic private banking International wealth mgmt European fund distribution Institutional clients Life & pen
Slide 17: Return on equity ahead of target
Return on equity ahead of target % 20 z Above target of 18 18.6 > 15% in 2005 16 17.5 16.9 14 14.5 14.5 12 10 8 6 4 2 0 2004 Jan-Sep 2004 Jan-Sep 2005 Reported Excl. real estate gains 2004 17
Slide 18: Capital position
Capital position Tier 1 ratio % 8 z Tier 1 ratio stable at 7.0% despite 7 7.6 7.3 strong volume growth 6.8 7.0 6.8 7.0 7.0 6 5 z Total capital ratio at 9.9% from 4 9.4% in Q2 3 – issuance of subordinated debt to meet coming redemptions 2 1 z Buy-back of 50m shares will 0 reduce Tier 1 ratio by appro
Slide 19: Repurchase of own shares
Repurchase of own shares z AGM authorisation to repurchase 10% of outstanding shares z Board decision to buy-back up to a maximum of 50 million (2%) of outstanding shares until next AGM z Cancellation of approx. 140m shares in Q3 z 62m shares still to be cancelled 19
Slide 20: Delivering ahead of targets
Delivering ahead of targets Key performance indicator Jan-Sep 2004 Target 2005 Total shareholder return (TSR), % #6 #3 In the top quartile of European peer group RoE, % 18.6 14.5* > 15% in 2005 and > 17% or in line with level of top Nordic peers from 2007 Costs**, EURm 2,591 3,502 Same cost level th
Slide 21: In summary
In summary z Strong performance continues z Continued growth in business volumes – Double digit growth in most areas z Costs kept largely unchanged despite significantly increased activity level z Sixth consecutive quarter with positive net loan losses z Delivering ahead of targets z Going forward –
Slide 22: CFO presentation
CFO presentation Financials 22
Slide 23: Income statement summary
Income statement summary EURm Jan-Sep Jan-Sep Chg % 2005 2004 Net interest income 2,730 2,575 6 Net fee and commission income 1,406 1,327 6 Net gains/losses on items at fair value 468 356 31 Equity method 46 40 15 Other income 227 183 24 Total operating income 4,877 4,481 9 Staff costs -1,550 -1,498
Slide 24: Income statement summary
Income statement summary EURm Q3/05 Q2/05 Chg % Net interest income 920 913 1 Net fee and commission income 469 484 -3 Net gains/losses on items at fair value 139 214 -35 Equity method 11 22 -50 Other income 62 61 2 Total operating income 1,601 1,694 -5 Staff costs -520 -515 1 Other expenses -345 -3
Slide 25: Net interest income
Net interest income EURm YoY: 3,000 z Up 6% 2,730 2,500 2,575 z Volume growth more than offset margin pressure 2,000 z Strong growth in lending, up 18% 1,500 z Growth in focus areas – mortgage 1,000 – SME – consumer finance 500 – Poland and Baltics z Margins to personal customers 0 declined as mortg
Slide 26: Net interest income
Net interest income EURm QoQ: 1,000 z Up 1% 920 913 920 z Total lending up 4% 875 897 800 854 846 – mortgage lending 4% – SME 4% 600 – successful launch of home equity products 400 z Continued pressure on corporate margins 200 z Margin pressure on new 0 mortgage sales seems to be 04 04 04 04 05 05 0
Slide 27: Change in net interest income
Change in net interest income YoY QoQ Volume driven - Lending volumes +133 +7 - Deposit volumes +39 +6 Margin driven - Lending margins -94 -19 - Deposit margins +38 +5 Other - Treasury +16 +1 - Day effect 0 +10 - Other, net +23 -3 27 Total +155 +7
Slide 28: Net commission income
Net commission income EURm 1600 YoY: 1400 z Up 6% 1,406 1,327 z Growth in business volumes 1200 – lending commissions up 22% 1000 – Asset Management related commissions up 11% 800 – brokerage up 22% 600 z Increased revenues in Acquisition Finance 400 z Payment commissions stable 200 – strong growth
Slide 29: Net commission income
Net commission income EURm 500 QoQ: 467 484 469 z Slightly down 450 443 453 434 400 z Strong commission income in Retail banking 300 – loans – cards – savings 200 z Lower commissions in CIB – corporate finance commissions seasonally 100 down from strong Q2 – lending commissions down 0 – continued gr
Slide 30: Breakdown of commission income
Breakdown of commission income EURm 160 140 140 141 138 137 136 137 138 135 134 130 132 120 121 120 116 100 105 101 94 94 91 91 88 80 69 60 64 55 57 51 50 49 40 34 29 28 28 20 27 23 27 24 21 20 19 10 0 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Deposit, payment and e-services - net Asset Mgmt - net L
Slide 31: Income from card products
Income from card products EURm 180 z YoY growth of 13% 160 158 z Increased card penetration in 140 existing client base 140 120 z Credit cards vehicle to increase 100 consumer lending 80 z Accelerating income growth in Q3 60 40 20 0 Jan-Sep 04 Jan-Sep 05 31
Slide 32: Net gains/losses on items at fair value
Net gains/losses on items at fair value EURm YoY: 240 220 z Up 31% 200 216 214 z Strong investment return in 180 Group Treasury 179 160 140 z Good result in Markets and Life 139 120 QoQ: 100 115 80 z Investment return in Group 77 Treasury down from high Q2 60 63 40 z Stable income on a high level 20
Slide 33: Net gains/losses on items at fair value
Net gains/losses on items at fair value EURm Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Markets 121 135 118 127 74 Life 32 23 3 15 2 Group Investment, Treasury 0 52 9 52 -18 Group Funding, Treasury -21 16 -24 -14 8 Other 7 -12 9 -1 -3 Total 139 214 115 179 63 33
Slide 34: Total operating income
Total operating income EURm YoY: 1,800 z Up 9% 1,600 1,646 1,694 1,569 1,582 1,601 z Strong growth in all business 1,400 1,462 1,450 areas 1,200 z Higher investment return in 1,000 Group Treasury 800 QoQ: 600 z Down 5% 400 z Continued strong performance 200 in business areas 0 z Lower income in Grou
Slide 35: Expenses
Expenses EURm 979 YoY: 1,000 908 43 914 896 z Expenses largely unchanged 903 902 45 41 865 413 34 35 31 339 380 39 353 364 345 z Efficiency gains compensating 800 334 – increased business volumes – inflation 600 z Costs in 2005 more evenly distributed 519 523 515 515 520 487 492 z Staff costs up 3%
Slide 36: Expenses in flat cost target
Expenses in flat cost target EURm 1,000 z Flat cost target for the banking 979 business through 2007 900 908 932 914 903 902 867 873 865 865 870 896 856 z Flat cost target excludes: 800 830 700 – costs in Life 600 – depreciation of operational leasing 500 z YoY marginally up 400 300 200 100 0 04 04
Slide 37: Number of FTEs
Number of FTEs z YoY down by approx. 1% 32,000 29,880 28,000 29,289 29,140 28,929 28,725 28,824 28,730 FTEs Q3/05 Q2/05 Q3/04 Retail 17,266 17,278 17,332 24,000 CIB 3,287 3,232 3,248 20,000 AM & Life 1,888 1,875 1,816 16,000 GPT 5,097 5,197 5,539 12,000 Other 1,192 1,242 1,205 8,000 Total 28,730 28,
Slide 38: Four point structural cost initiatives
Four point structural cost initiatives Initiatives 1. End-to-end lean z Straight-through processing, eg mortgages production processes z Streamlining of processes, eg credit improvement 2. External spend and z Procurement initiatives premises z More efficient office space utilisation z Increasing au
Slide 39: Nordea Transformation Programme
Nordea Transformation Programme z IT integration close to completion within: – Corporate and Institutional Banking – Markets – Asset Management – Group Functions z Integration work ongoing in Retail Banking z Harmonisation of processes and main banking systems – gradual harmonisation instead of a ‘B
Slide 40: Cost/income ratio
Cost/income ratio % 70 z Target: Continuous improvement 60 64 62 60 z Flat costs while business volumes 50 56 continue to grow 40 – productivity gains 30 z Income up 9% 20 10 0 2002 2003 2004 Jan-Sep 2005 40
Slide 41: Loan losses - net reversals exceeding new provisions
Loan losses - net reversals exceeding new provisions EURm YoY: 60 40 z Positive result from loan losses 42 at EUR 130m 20 0 z Sale of shares in Pan-Fish, -3 -2 -10 -6 -23 recovery of EUR 98m -20 QoQ: -40 z Overall strong credit portfolio -60 -80 z Reversals exceeded new -101 provisions by EUR 23m -1
Slide 42: Impaired loans
Impaired loans EURm. End of period Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Impaired loans, gross 1,994 2,006 2,097 2,213 2,248 Reserves -1,545 -1,581 -1,657 -1,670 -1,706 Impaired loans, net 449 425 440 543 596 Provisions/impaired loans, gross,% 77 79 79 75 76 Impaired loans, net/lending,% 0.25 0.24 0.26 0.34
Slide 43: Taxes
Taxes z Revaluation of deferred tax asset in Finland z Revaluation of tax asset based on – Nordea’s expected ability to utilise loss carry-forward in foreseeable future z Tax cost reduced by (approx.) – EUR 300m in Q3 2003 – EUR 60m in Q2 2005 – EUR 40m in Q3 2005 z Net unrecognised tax assets amoun
Slide 44: Net profit
Net profit EURm YoY: 800 z Up 35% when adjusted for real- 700 estate gain 2004 705 705 600 z Up 10% reported 563 500 476 495 400 459 QoQ: 438 300 z Net profit down 25% 200 z Lower loan loss reversals 100 z Lower investment result 0 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Q Q 44
Slide 45: Earnings per share – 12 months rolling
45 Q 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1/ 0 EUR Q 0 2/ 0 Q 0 3/ 0 Q 0 4/ 0 Q 0 1/ 0 Q 1 2/ 0 Q 1 3/ 0 Q 1 4/ 0 Q 1 1/ 0 Q 2 2/ 0 Q 2 3/ 0 Q 2 4/ 0 Q 2 1/ 0 Q 3 2/ 0 Q 3 3/ 0 Q 3 4/ 0 Excl. Real estate gains/losses and deferred tax asset Q 3 1/ 0 Q 4 2/ 0 Earnings per share – 12 months rolling Q
Slide 46: Return on equity
Return on equity % 20 z Above target of 18 18.6 > 15% in 2005 16 17.5 16.9 14 14.5 14.5 12 10 8 6 4 2 0 2004 Jan-Sep 2004 Jan-Sep 2005 Reported Excl. real estate gains 2004 46
Slide 47: Risk-weighted assets (RWA)
Risk-weighted assets (RWA) % 180 z RWA up 1.9% in Q3 160 162 153 159 z Total lending up 4% in Q3 140 145 140 140 135 120 z Growth in RWA reflects strong 100 increase in business volumes 80 – SME lending 60 – mortgage lending 40 – structured products in Markets 20 0 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1
Slide 48: Capital position
Capital position Tier 1 ratio % 8 z Tier 1 ratio stable at 7.0% despite 7 7.6 7.3 strong volume growth 6.8 7.0 6.8 7.0 7.0 6 5 z Total capital ratio at 9.9% from 4 9.4% in Q2 3 – issuance of subordinated debt to meet coming redemptions 2 1 z Buy-back of 50m shares will 0 reduce Tier 1 ratio by appro
Slide 49: Repurchase of own shares
Repurchase of own shares z AGM authorisation to repurchase 10% of outstanding shares z Board decision to buy-back up to a maximum of 50 million (2%) of outstanding shares until next AGM z Cancellation of approx. 140m shares in Q3 z 62m shares still to be cancelled 49
Slide 50: Business trends
x Q O Q 0 Z Business trends 50
Slide 51: Volume growth in most areas
Volume growth in most areas YoY QoQ z Lending, total – Mortgage lending 13% 4% – Consumer lending 15% 3% – SME lending 15% 4% – CIB lending 33% -1% z Deposits, total – Household deposits 8% 3% – SME deposits 5% 3% – CIB deposits 10% -6% 51
Slide 52: Total lending
Total lending EURbn 200 182.1 180 170.1 175.1 161.3 160 147.3 148.7 148.2 155.5 154.5 145.7 147.0 147.0 145.6 141.9 143.4 140 120 100 80 60 40 20 0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Corporate Housing loans Consumer
Slide 53: Households mortgages, volumes and margins
Households mortgages, volumes and margins EURbn % 65 1.5 60 61.7 1.4 59.2 55 56.3 57.7 1.3 54.5 50 52.6 1.2 48.9 50.0 45 48.2 1.1 45.7 43.6 44.3 40 42.0 41.3 42.4 1.0 35 0.9 30 0.8 25 0.7 20 0.6 15 0.5 10 0.4 5 0.3 0 0.2 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4
Slide 54: Consumer lending to households, volumes and margins
Consumer lending to households*, volumes and margins EURbn % 20 5.0 4.1 18 4.0 4.5 3.8 16 4.2 4.0 3.7 4.0 3.4 3.7 3.0 14 2.1 2.3 14.5 15.0 3.5 13.4 13.8 12 12.2 12.2 12.4 12.4 12.5 12.7 13.0 3.0 10 2.5 8 2.0 6 1.5 4 1.0 2 0.5 0 0.0 / 03 / 03 / 03 / 03 / 04 / 04 / 04 / 04 / 05 / 05 / 05 1 2 3 4 1 2 3
Slide 55: Lending to corporates, SME, volumes and margins
Lending to corporates, SME, volumes and margins EURbn % 70 1.8 65 67.4 1.7 65.0 60 61.0 62.2 1.6 55 57.3 57.3 57.4 58.1 58.5 1.5 56.6 57.1 56.7 56.3 55.2 55.2 50 1.4 45 1.3 40 1.2 35 1.1 30 1.0 25 0.9 20 0.8 15 0.7 10 0.6 5 0.5 0 0.4 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/
Slide 56: CIB, lending volumes and margins
CIB*, lending volumes and margins EURbn % 30 1.5 28 1.4 26 1.3 24 1.2 23.7 24.0 24.0 23.5 22 22.6 1.1 21.7 21.4 21.4 21.7 20 20.3 20.8 1.0 18 18.4 19.0 0.9 18.1 18.0 16 0.8 14 0.7 12 0.6 10 0.5 8 0.4 6 0.3 4 0.2 2 0.1 0 0.0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3
Slide 57: Total deposits
Total deposits EURbn 120 108.0 110 104.7 105.2 105.7 100 94.2 94.6 95.6 97.7 97.1 92.6 91.1 92.9 92.2 89.7 90 88.1 80 70 60 50 46.7 40 40.7 41.7 41.3 41.4 42.3 42.9 43.8 44.1 45.5 38.1 39.2 39.8 40.2 37.3 30 20 10 0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/
Slide 58: Retail deposits, households, volumes and margins
Retail deposits, households, volumes and margins EURbn % 50 2.5 45 45.5 46.7 2.3 43.8 44.1 42.9 40 40.7 41.7 41.3 41.4 42.3 2.1 39.8 40.2 39.2 38.1 35 37.3 1.9 30 1.7 25 1.5 20 1.3 15 1.1 10 0.9 5 0.7 0 0.5 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q
Slide 59: Structural Interest Income Risk (SIIR)
Structural Interest Income Risk (SIIR) EURm, annualised effect on NII* Q3/05 Q2/05 Increasing market rates, 100bp 140 132 Decreasing market rates, 100bp -182 -175 z Increased business volumes z Reduced sensitivity year-on-year following implementation of ALM strategy *Approx. end of period SIIR is d
Slide 60: Retail deposits, SME, volumes and margins
Retail deposits, SME, volumes and margins EURbn % 40 1.6 35 1.4 30 31.1 1.2 30.0 29.4 30.1 27.7 28.3 27.7 28.0 28.4 25 25.5 26.3 26.5 26.2 26.3 26.7 1.0 20 0.8 15 0.6 10 0.4 5 0.2 0 0.0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Q Q Q Q Q Q Q
Slide 61: CIB, deposit volumes and margins
CIB*, deposit volumes and margins EURbn % 24 1.2 22 23.2 1.1 20 21.0 20.4 1.0 18 18.5 0.9 17.9 18.0 16 0.8 15.4 15.2 14 14.2 14.4 14.9 0.7 13.3 12 12.6 13.0 13.1 0.6 10 0.5 8 0.4 6 0.3 4 0.2 2 0.1 0 0.0 02 02 02 02 03 03 03 03 04 04 04 04 05 05 05 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q Q Q
Slide 62: Assets under Management
Assets under Management EURbn 160 146.7 z AuM up 4% to EUR 146.7bn in 135.8 141.7 140 130.6 Q3 125.7 120 – net inflow of EUR 0.8bn 100 – asset appreciation EUR 4.2bn 80 60 z Increased sales efforts 40 – new products launched 20 – strengthening of the savings specialist organisation 0 Q3/04 Q4/04 Q1/
Slide 63: Net inflows
Net inflows EURbn 4 z Inflow contributed with EUR 3 2.7 0.8bn 1.2 2.1 1.1 z Robust inflow in Private 2 0.8 Banking 1 z Strong inflow to Retail funds 0 – fixed income funds in Sweden -1 – equity funds in Denmark -2 z Outflow in European Fund Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Distribution Nordic Retail fu
Slide 64: Retail Banking operating profit
Retail Banking operating profit EURm 600 z Up 19% YoY 550 566 500 543 z Strong increase in business volumes 510 450 483 z Profit before loan losses up 9% QoQ 465 400 444 425 350 z Strongest result improvement in 300 Sweden QoQ 250 200 z Improved C/I ratio in most markets 150 QoQ - Finland unchanged
Slide 65: CIB operating profit
CIB operating profit EURm 180 z Operating profit up 18% YoY – QoQ slightly down, seasonal effects 160 z Improvement in Financial Institutions 140 149 147 Division 120 129 133 129 118 z Lower profit in Corporate Banking 100 Division 80 – lower business volumes 79 – margin pressure 60 – seasonal effec
Slide 66: Asset Management, product result
Asset Management, product result EURm 80 z Product result up 22% YoY 77 70 67 z Income up 7% QoQ 60 63 65 59 – increased AuM 57 55 50 – improved income margin 40 z Lower costs 30 z Improved result margin from 20 24bp to 27bp QoQ 10 0 Key ratios Q3/05 Q2/05 C/I ratio, % 51 56 04 04 04 04 05 05 05 1/
Slide 67: Life Insurance, product result
Life Insurance, product result EURm z Product result up 5% YoY and 70 25% QoQ 60 65 z Net written premiums up 15% 50 57 YoY 53 52 49 47 48 z Stable fee contribution 40 z High contribution from 30 investment result in Norway 20 – profit sharing Key ratios Q3/05 Q2/05 10 Inv return, % 2.1 4.1 0 Financ
Slide 68: Group Treasury, operating profit
Group Treasury, operating profit EURm 100 80 81 z Operating profit up EUR 55m YoY 55 60 60 z Lower investment return in Q3 40 6 22 20 z Group Funding down from high 0 Q2 -20 -14 – MTM effect from short term -40 -60 mismatch in lending vs funding -27 -80 – favourable position in Q2 ahead -100 of rate
Slide 69: Outlook
Outlook z The current market trend with volume growth and a challenging competitive climate is expected to continue. z Volume and income growth is higher than expected when defining Nordea’s financial targets in November 2004. This is placing an upward pressure on costs. However, costs for the whole
Slide 70: In summary - first nine months 2005
In summary - first nine months 2005 z Strong volume growth in all business areas - more than offset margin pressure z Increased income z Unchanged costs z Positive loan losses z Increased operating and net profit z Improved cost/income ratio z RoE clearly above target z Going forward – competitive p
Slide 71: Facts & Figures
x Q O Q 0 Z Facts & Figures 71
Slide 72: Facts & Figures, content
Facts & Figures, content z Credit quality Page 73 z Economic capital Page 85 z Business areas Page 88 z Balance sheet Page 121 z Market shares Page 125 z Appendix Page 133 72
Slide 73: Credit quality
x Q O Q 0 Z Credit quality 73
Slide 74: Loan portfolio by customer category
Loan portfolio by customer category* EURbn 100 97 90 93 91 80 85 84 83 84 82 80 78 79 70 60 63 58 60 50 55 56 53 48 49 50 40 44 46 30 20 17 17 17 18 19 19 10 14 15 15 16 16 0 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Corporate lending Housing loans Consumer loans End of perio
Slide 75: Loan portfolio by customer group
Loan portfolio by customer group End Q3/05, EUR 182.1bn End Q3/04, EUR 154.5bn Public Public sector sector 2% 2% Household Household customers customers Companies Companies 45% 46% 52% 53% 75
Slide 76: Lending to household customers
Lending to household customers End of Q3/05 EUR 81.7bn z Strong growth Other loans 23% z Other loans comprise – consumer credits – investment credits – car financing – overdraft facilities – credit cards – home equity credits Housing loans 77% 76
Slide 77: Lending to companies by industry
Lending to companies by industry End of Q3/05 EUR 96.7 bn Shipping & Offshore Construction Transport and 5% 3% communication 5% Real estate 26% Agriculture & Fishing 6% Renting, consulting and other services 7% Other companies 10% Finance 15% Commerce and services Manufacturing 10% 13% 77
Slide 78: Loan portfolio in figures
Loan portfolio in figures EURbn Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Household customers 81.7 78.9 75.3 73.4 71.5 Real estate 25.6 25.1 24.7 23.5 22.6 Construction 3.1 2.6 2.9 2.9 2.8 Transport, communication 5.1 5.6 4.9 4.6 4.4 Trade and services 9.9 9.8 9.4 8.6 8.5 Manufacturing 12.6 12.9 12.7 12.0 12.5
Slide 79: Lending by geographical area
Lending by geographical area End of Q3/05 EUR 182.1bn USA Asia 1.2% 0.7% Latin America Nordic countries 0.7% and P&B Other non OECD 92.1% Other 0.5% 7.9% Other OECD 0.4% Other EU Nordic countries and P&B countries z Denmark 48.2 4.4% z Finland 37.1 z Norway 28.3 z Sweden 51.1 z P&B 2.9 79
Slide 80: Impaired loans
Impaired loans EURm. End of Q3/05 Gross Provisions Net Household customers 451 -275 176 Real estate 162 -137 25 Construction 43 -36 7 Transport, communication 95 -76 19 Trade and services 208 -150 58 Manufacturing 343 -308 35 Finance 50 -31 19 Renting, Consulting and other services 151 -121 30 Other
Slide 81: Loan losses
Loan losses EURm 200 YoY: 192 150 157 z Positive result from loan losses 131 100 129 127 at EUR 130m 91 50 z Sale of shares in Pan-Fish, 0 -23 -3 -2 -10 -6 recovery of EUR 98m -50 -97 -101 QoQ: -100 -129 -132 -141 -150 z Overall strong credit portfolio -200 -215 z Reversals exceeded new -250 -258 pr
Slide 82: Increasing derivatives sales and trading in Markets
Increasing derivatives sales and trading in Markets EURbn, nominal value Q3/05 Q2/05 Q4/04 Q2/04 Q4/03 Interest rate: Swaps, Options 972 899 770 751 688 Cross Currency Swap 79 73 55 53 50 Credit Default Swap 34 29 12 7 2 Equity: Forwards, Swaps, Options 3 3 2 2 0 End of period 82
Slide 83: Market risk in Markets - Total Value at Risk
Market risk in Markets - Total Value at Risk EURm 25 20 15 10 5 0 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 83
Slide 84: Risk measurement - traded credit products
Risk measurement - traded credit products Credit Default Risk building Portfolio risk Swaps blocks Jump to Default Jump to Default exposures per exposures Structured name Correlation Credit Credit spread Credit spread products Derivatives Value at Risk BPV per name Model Credit spread BPV Corporate
Slide 85: Economic capital
Economic capital 85
Slide 86: Economic capital (EC)
Economic capital (EC) EURbn 10 z Slight increase in operational 9 and business risk 8.8 8.9 8 8.4 8.4 8.3 EC per business area, 7 EURbn Q3/05 6 Retail Banking 5.5 5 CIB 1.8 4 Asset Mgmt 0.1 3 Life 1.0 2 Treasury 0.4 1 Other 0.1 0 Total 8.9 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 86
Slide 87: Economic capital
Economic capital End of Q3/05 Distribution by business area Distribution by risk category Asset Mgmt Treasury Other Operational Life risk & Life 5% 1% risk 1% Business 12% risk 9% 10% CIB Market risk 20% Retail 16% Credit risk 62% 64% 87
Slide 88: Retail Banking
x Q O Q 0 Z Retail Banking 88
Slide 89: Retail Banking
Retail Banking Jan-Sep Jan-Sep EURm Chg, % 2005 2004 Net interest income 2,268 2,154 5.3 Commission income 923 841 9.8 Net gains/losses 160 137 16.8 Equity method 18 11 63.6 Other income 60 71 -15.5 Operating income 3,429 3,214 6.7 Staff costs -776 -783 -0.9 Other expenses -1,072 -1,056 1.5 Deprecia
Slide 90: Retail Banking lending and deposit volumes
Retail Banking lending and deposit volumes Lending, EURbn Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Q4/03 Denmark 43.2 41.3 38.2 37.4 36.0 35.5 34.3 33.4 Finland 34.8 33.8 32.4 31.6 30.4 29.5 28.3 27.5 Norway 23.1 22.6 21.4 21.0 20.0 19.9 19.3 18.8 Sweden 45.2 43.3 43.5 42.6 40.9 40.0 38.3 38.8 Depo
Slide 91: Retail Banking breakdown of lending
Retail Banking breakdown of lending Denmark, EURbn Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Q4/03 Corporate 17.0 16.1 14.4 14.3 13.7 13.8 13.4 13.2 Household mortgages 18.8 17.9 17.2 16.8 16.4 15.9 15.2 14.6 Consumer lending 5.8 5.7 5.5 5.3 5.2 5.1 5.0 5.0 Finland, EURbn Q3/05 Q2/05 Q1/05 Q4/04 Q3/
Slide 92: Retail Banking breakdown of lending
Retail Banking breakdown of lending Norway, EURbn Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Q4/03 Corporate 11.0 10.8 10.3 10.4 10.3 10.4 10.1 10.7 Household mortgages 10.6 10.5 9.9 9.7 9.3 9.2 8.5 8.0 Consumer lending 2.1 1.8 1.3 1.1 0.9 0.8 0.8 0.8 Sweden, EURbn Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04
Slide 93: Retail Banking breakdown of deposits
Retail Banking breakdown of deposits Denmark, EURbn Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Q4/03 Corporate 8.0 7.2 7.4 7.2 7.1 7.2 6.7 5.8 Households, current 2.9 2.9 2.8 2.7 2.7 2.6 2.5 2.4 accounts Households, savings 9.7 9.3 8.1 7.9 7.7 7.7 7.1 7.6 accounts Finland, EURbn Q3/05 Q2/05 Q1/05 Q4/
Slide 94: Retail Banking breakdown of deposits
Retail Banking breakdown of deposits Norway, EURbn Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Q4/03 Corporate 6.6 6.4 6.2 5.7 5.6 5.7 5.7 5.5 Households, current 1.6 1.5 1.4 1.3 1.3 1.2 1.2 1.1 accounts Households, savings 3.8 3.8 3.6 3.6 3.6 3.6 3.5 3.4 accounts Sweden, EURbn Q3/05 Q2/05 Q1/05 Q4/04
Slide 95: Retail Banking margins
Retail Banking margins % Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Q4/03 Lending to SME’s 1.06 1.09 1.12 1.13 1.13 1.19 1.21 1.19 Mortgages, households 0.80 0.83 0.89 0.90 0.91 0.95 0.99 0.97 Consumer loans, 3.59 3.87 3.97 4.10 4.09 4.18 4.21 4.09 households Deposits, SME’s 0.83 0.89 0.86 0.92 0.94
Slide 96: E-banking & transactions
E-banking & transactions 96
Slide 97: E-banking customers, all clients
97 Ja n- 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Ju 00 Mill. ly - Ja 00 n- Ju 01 ly - Ja 01 n- Ju 02 ly - Ja 02 n- 0 Ju 3 l- Ja 03 n- 0 E-banking customers Ju 4 l- Ja 04 n- 0 Ju 5 l- 0 5 Ja n- 0 50 100 150 200 250 300 350 400 Ju 00 (1,000) ly- Ja 00 E-banking customers, all clients n- Ju 01 ly- Ja 01 n- Ju
Slide 98: Payments and log-ons, all clients
Payments and log-ons, all clients E-banking payments E-banking log-ons Mill. Mill. 50 50 45 45 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q 00 Q 00 Q 01 Q 01 Q 02 Q 02 Q 03 Q 03 Q 04 Q 04 Q 05 05 00 00 01 02 03 03 04 05 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 1/ 3/ 1/ 3/ 1/ 4/ 3/ 2/ 1/ 4/ 3/ 2/ Q Q Q Q Q Q Q
Slide 99: Cards, all clients
99 Q 0 20 40 60 80 100 120 140 160 1/ Mill. 01 Q 3/ 01 Q 1/ 02 Q 3/ 02 Q 1/ 03 Q 3/ 03 Q 1/ 04 Q 3/ Card payments Cards, all clients 04 Q 1/ 05 Q 3/ 05 Ja n 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Mill. M -01 a Se y-01 pt - Ja 01 n M -02 ay Se -02 pt Ja -02 n M -03 ay Se - 03 p- Ja 03 n M -04 ay
Slide 100: Payment transactions, households
Payment transactions, households Payments transactions, households Breakdown of transactions Mill. Mill. 300 160 140 275 120 250 100 225 80 60 200 40 175 20 150 0 01 01 02 02 03 03 04 04 05 05 01 01 02 02 03 03 04 04 05 05 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ Q Q Q Q Q Q Q Q Q
Slide 101: Payment transactions, households
Payment transactions, households Jan-Sep Million 2004 2003 2002 2001 2005 Manual transactions 74.3 103.9 112.5 125.3 141.0 Payterminals 15.1 23.6 27.1 31.7 34.3 Card payments 436.7 527.8 459.9 395.5 333.5 Cash withdrawal ATM 137.5 190.4 197.4 204.4 207.2 Direct debit 76.5 98.5 86.1 81.5 78.5 E-banki
Slide 102: Corporate and Institutional Banking (CIB)
Corporate and Institutional Banking (CIB) 102
Slide 103: Corporate and Institutional Banking
Corporate and Institutional Banking Jan-Sep Jan-Sep EURm Chg, % 2005 2004 Net interest income 316 296 7 Commission income 261 251 4 Net gains/losses 201 167 20 Equity method 15 13 15 Other income 10 13 -23 Operating income 803 740 9 Staff costs -236 -224 5 Other expenses -180 -196 -8 Depreciations -
Slide 104: CIB lending and deposit volumes and margins
CIB lending and deposit volumes and margins Lending, EURm Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 Q4/03 Corporate Banking Division 10.9 12.0 12.8 10.8 11.3 12.1 10.7 11.1 Financial Institutions Division 1.8 2.0 2.0 1.4 1.6 2.1 1.4 1.8 International and Shipping Division 8.1 7.7 6.5 5.9 6.1 6.1 6.0
Slide 105: Nordea operations in Poland and the Baltic countries
Nordea operations in Poland and the Baltic countries End of Q3/05 Estonia Latvia Lithuania Poland Total Customers 41,600 29,300 15,000 316,500 402,400 Branches/salespoints 10 12 8 36 66 Number of FTEs 237 212 136 874 1,469 Total assets, EURm 906 833 546 1,368 3,652 Lending, EURm 751 756 481 1,189 3,
Slide 106: Asset Management & Life
Asset Management & Life 106
Slide 107: Asset Management
Asset Management Jan-Sep Jan-Sep EURm Chg, % 2005 2004 Customer responsible units: Net interest income 30 27 11 Commission income 201 178 13 Net gains/losses 13 12 8 Equity method 0 0 0 Other income 9 7 29 Operating income 253 224 13 Staff costs -79 -68 16 Other expenses -64 -66 -3 Depreciations -2
Slide 108: Break down of AuM by market and channels
Break down of AuM by market and channels Retail Fund sales funds* through Private Institutional Life & AuM, Q3/05, (sold through EURbn third-parties Banking clients Pensions own distribution) Denmark 16.2 - 13.3 9.5 17.2** 56.2 Finland 7.4 - 13.7 4.1 7.7 32.9 Norway 1.6 - 0.8 3.4 4.0 9.8 Sweden 17.5
Slide 109: Asset structure
Asset structure* Q3/05 Q2/05 Int'l. fixed Int'l. fixed income income 13% 13% Nordic Nordic Nordic equities equities Nordic fixed 14% 13% fixed income income 44% 46% Int'l. Int'l. equities equities 29% 28% *Average AuM for Asset Management activities excl. Nordic Private Banking activities, in Q3 thi
Slide 110: European Fund Distribution
110 Q -2,000 -1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 EURm 3/ 0 Q 0 4/ 0 Q 0 1/ 0 Q 1 2/ 0 Q 1 3/ 0 Q 1 4/ 0 Q 1 1/ 0 Q 2 2/ 0 Q 2 3/ 0 Q 2 4/ 0 Q 2 1/ 0 European Fund Distribution Q 3 Inflow 2/ 0 Q 3 3/ 0 AUM Q 3 4/ 0 Q 3 1/ 0 Q 4 2/ 0 Q 4 3/ 0 Q 4 4/ 0 Q 4 1/ 0 Q 5 2/ 0 Q 5 3
Slide 111: Life - breaking out profit drivers
Life - breaking out profit drivers z Fee based on size of life provisions in “with profit” companies – DK, FI, SE II Fee contribution z Profit-sharing from the Norwegian business (existing model, change pending) Contribution from cost z 25% of surplus/deficit from cost result in DK, 100% from FI and
Slide 112: Life - profit drivers
Life - profit drivers EURm Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Traditional insurance Fee contribution/profit sharing 43 35 30 24 22 Contribution from cost result 0 0 1 1 1 Contribution from risk result 7 2 5 2 5 Inv. return on Shareholders Equity 3 4 3 2 4 Other profits 7 5 3 15 8 Total Profit Traditional
Slide 113: Life - investments
Life - investments EURbn 30 29.0 28.4 z Equities 26.4 27.1 25.4 25 – predominantly listed equities 20 – 1/3 Nordic, 2/3 international z Bonds 15 – ¾ Nordic issuers 10 – primarily govmn’t & mortgage inst. 5 0 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Equities Bonds Real estate Unit linked Alternative investments
Slide 114: Life - asset allocation
Life - asset allocation Total, EURbn Equities, % Q3/05 Q2/05 Q3/05 Q2/05 Denmark 13.5 13.5 22 19 Finland 7.7 7.5 20 19 Norway 4.0 3.9 15 14 Sweden 3.0 2.8 3 3 Total 28.2 27.7 18 16 114
Slide 115: Life - solvency situation
Life - solvency situation End of Q3/05 Required Actual Solvency Solvency in % EURm solvency solvency buffer of requirement Denmark 502 560 58 111 Finland 221 731 510 331 Norway* 137 256 119 187 Sweden* 69 82 13 118 *excluding unit linked companies 115
Slide 116: Life – solvency sensitivity
Life – solvency sensitivity End of Q3/05 % Denmark Finland Norway Sweden Solvency in % of requirement 111 331 187 118 Equities drop 12% 111 267 187 112 Interest rates down 50bp 107 365 187 126 Interest rates up 50bp 109 312 187 111 116
Slide 117: Life – financial buffers
Life – financial buffers* EURm % of total provisions Q3/05 Q2/05 Q3/05 Q2/05 Denmark 1,055 960 9.5 8.7 Finland 338 297 6.5 5.8 Norway 102 56 2.9 1.8 Sweden 20 75 1.1 4.5 Total 1,515 1,388 7.1 6.6 * Financial buffers are defined in accordance with local regulations and practices 117
Slide 118: Life – buffer sensitivity
Life – buffer sensitivity End of Q3/05 EURm Denmark Finland Norway Sweden Financial buffers* 1,055 338 102 20 Equities drop 12% 837 195 30 16 Interest rates down 50bp 1,210 413 109 25 Interest rates up 50bp 1,017 296 95 15 118
Slide 119: Group Treasury
Group Treasury 119
Slide 120: Group Treasury
Group Treasury Jan-Sep Jan-Sep EURm Chg, % 2005 2004 Net interest income 76 60 27% Commission income -4 -6 33% Net gains/losses 32 -7 Equity method 0 0 Other income 18 22 -18% Operating income 122 69 77% Staff costs -11 -10 10% Other expenses -22 -25 -12% Depreciations 0 0 Operating expenses -33 -35
Slide 121: Balance sheet
Balance sheet 121
Slide 122: Balance sheet - key items
Balance sheet - key items EURbn Q3/05 2004 Q3/04 Chg YoY % Assets Loans to the public 182 161 155 17% Interest-bearing securities 39 28 32 22% Other assets 99 89 76 30% Total assets 320 278 263 22% Liabilities Deposits 108 105 97 11% Debt securities 74 61 59 25% Liabilities to policyholders 26 22 22
Slide 123: Balance sheet
Balance sheet EURm End of Q3/05 End of 2004 End of Q3/04 Treasury bills and other eligible bills 13,592 12,758 11,068 Loans and receivables to credit institutions 24,512 20,628 22,540 Loans and receivables to the public 182,050 161,295 154,562 Derivatives 32,282 26,697 18,379 Other assets 67,748 56,
Slide 124: Capital base
Capital base EURm Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Core equity 12,946 12,344 12,474 12,549 12,449 Deductions -1,102 -828 -1,245 -1,004 -817 Core equity in the capital base 11,844 11,516 11,229 11,545 11,632 Hybrid capital 1,395 1,387 914 757 782 Minority interests 12 12 14 4 3 Group goodwill -1,804 -1,
Slide 125: Market shares
Market shares * Statistics as June 2005 125
Slide 126: Market position in Nordic markets
Market position in Nordic markets Market shares Denmark Finland Norway Sweden Personal customers - mortgage lending 14.9% 31.9% 11.5% 15.9% - consumer lending 15.7% 30.3% 11.0% 9.3% - deposits 21.7% 33.6% 8.4% 18.3% Corporate customers - lending 20.1% 35.5% 16.6% 14,3% - deposits 22.7% 35.7% 17.8% 2
Slide 127: Personal customer deposits - market volume & share
127 au au g- g- 0 100 200 300 400 500 0 100 200 300 400 500 600 no 02 no 02 v- v- DKKbn NOKbn fe 02 fe 02 b- b- m 03 m 05 aj aj au -03 au -05 g- g- no 03 no 05 v- v- fe 03 fe 05 b- b m 04 m -05 aj aj au -04 au -05 Norway Denmark g- g- no 04 no 05 v v- fe -04 fe 05 b- b- m 05 m 05 aj aj au -05 au -05
Slide 128: Corporate deposits - market volume & share
128 au au g- g- 0 100 200 300 400 0 100 200 300 400 no 02 no 02 v v DKKbn NOKbn fe -02 fe -02 b- b- m 03 m 03 aj aj au -03 au -03 g- g- no 03 no 03 v- v- fe 03 fe 03 b- b- m 04 m 04 aj aj au -04 au -04 Norway Denmark g- g- no 04 no 04 v- v- fe 04 fe 04 b b m -05 m -05 aj aj au -05 au -05 g- g- 05 05
Slide 129: Personal customer lending - market volume & share
129 au au g- g- 0 200 400 600 800 1000 0 100 200 300 400 o k 03 n o 02 t v DKKbn NOKbn d e - 03 fe -02 c- b- fe 03 m 03 b- aj ap 04 au -03 r-0 g- ju 4 n o 03 n v- a u - 04 fe 03 g- b- o k 04 m 04 t aj d e - 04 au -04 Norway Denmark c- g- fe 04 n o 04 b- v- ap 05 fe 04 r-0 b ju 5 m - 05 n aj a u - 05
Slide 130: Mortgage lending households - market volume & share
130 au Q g- 2/ 0 200 400 600 800 1000 0 200 400 600 800 no 02 Q 02 3/ DKKbn v- NOKbn fe 02 Q 02 b 4/ m -03 Q 02 aj 1/ au -03 Q 03 g- 2/ no 03 Q 03 v- 3/ fe 03 Q 03 b 4/ m -04 Q 03 aj 1/ au -04 Q 04 Norway Denmark g- 2/ no 04 Q 04 v- 3/ fe 04 b Q 04 4/ m -05 Q 04 aj 1/ au -05 Q 05 g- 2/ 05 05 Market
Slide 131: Corporate lending - market volume & share
131 au au g- g- 0 100 200 300 400 500 600 0 100 200 300 400 500 no 02 no 02 v v DKKbn NOKbn fe -02 fe -02 b- b- m 03 m 03 aj aj au -03 au -03 g- g- no 03 no 03 v- v- fe 03 fe 03 b- b- m 04 m 04 aj aj au -04 au -04 Norway Denmark g- g- no 04 no 04 v- v- fe 04 fe 04 b b m -05 m -05 aj aj au -05 au -05
Slide 132: Investment funds - market volume & share
132 au ju l-0 0 100 200 300 400 500 600 700 g- 0 40 80 120 160 200 240 03 3 ok DKKbn no NOKbn v- t- 0 03 3 fe ja b -0 n- 04 4 m ap aj r-0 -0 4 4 au ju g- l-0 04 4 no ok v- t- 0 Norway Denmark 04 4 fe ja b -0 n- 05 5 m ap aj r-0 -0 5 5 au ju g- l-0 05 5 Market volume 4% 6% 8% 18% 20% 22% 24% 26% 28%
Slide 133: Appendix
Appendix 133
Slide 134: Total shareholder return (TSR) 2005
Total shareholder return (TSR) 2005 Nordea peer group* COMMERZBANK HYPOVEREINSBANK SOCIETE GEN KBC BNP PARIBAS NORDEA ALLIED IRISH BANK DANSKE BANK DnB NOR SWEDBANK UNICREDITO ERSTE BANK SEB BANK OF IRELAND ABN AMRO LLOYDS TSB HBOS SHB BARCLAYS RBOS -10 -5 0 5 10 15 20 25 30 35 40 45 50 55 60 *As de
Slide 135: Largest registered shareholders, end of Q3 2005
Largest registered shareholders, end of Q3 2005 Shareholder Number of shares % Swedish state 515.6 19.5 Nordea Danmark fund 102.5 3.9 Robur Funds 75.4 2.9 Alecta 75.0 2.8 SBH/SPP Funds 65.4 2.5 SEB Funds 47.5 1.8 Nordea Funds 43.0 1.6 AMF Pension 41.0 1.6 Skandia Life Insurance 33.3 1.3 Second Swedi
Slide 136: Market development – interest rates
Market development – interest rates Change 30-06-05 30-09-05 % Q3/05 Short, EUR (one week) 2.07 2.07 0.00 Long, EUR (5 years) 2.71 2.71 0.01 Short, DK 2.15 2.16 0.01 Long, DK 2.73 2.74 0.01 Short, NO 1.87 2.02 0.16 Long, NO 3.45 3.52 0.07 Short, SE 1.83 1.54 -0.29 Long, SE 2.74 2.78 0.04 136
Slide 137: Macro data – Nordic market
Macro data – Nordic market % 2005e 2006e 2007e Gross domestic product DK 2.6 2.4 2.0 FI 1.9 3.6 3.1 NO 4.0 2.4 1.7 SE 2.3 3.2 2.6 Inflation DK 1.8 2.0 2.0 FI 1.0 1.3 1.5 NO 1.6 1.4 2.0 SE 0.5 1.2 2.2 Private consumption DK 3.8 2.6 2.2 FI 3.5 3.1 1.8 NO 4.0 2.3 1.9 SE 2.0 3.0 2.7 Unemployment DK 5.7
Slide 138: Financial calendar 2006
Financial calendar 2006 z Q4 report 2005 will be published on 22 February z AGM will be held on 5 April www.nordea.com/ir 138