Slide 1: Presentation for Investors August 2002
Presentation for Investors 22 August 2002
Slide 2: Contents
Contents l Nordea Page 3 l Integration Page 16 l Highlights and market development Page 24 l Key figures and trends Page 32 l Business areas Page 51 l Balance sheet Page 95 l Credit quality Page 103 l Economic capital Page 120 l Appendix Page 124 2
Slide 3: Nordea
Nordea
Slide 4: 'Making it possible' is our mission
’Making it possible’ is our mission By providing a broad set of seamless and easily accessible financial solutions and competitive advisory services, Nordea helps customers where we operate to reach their objectives. 4
Slide 5: Our vision
Our vision We will be valued as the leading financial services group in the Nordic and Baltic financial markets with a substantial growth potential. We will be number one or number two or show superior profitable growth in every market and product area in which we choose to compete. We will have the
Slide 6: Strategic choices
Strategic choices l Universal banking with bancassurance l Customer orientation l Multichannel distribution l Nordic and local l Electronic and personal 6
Slide 7: Strategic direction
Strategic direction Deliver total shareholder value in line with the top five of our peer group Establish a stable and Ensure Work actively to optimise broadly based growth of operational excellence the use of capital and risk revenue by proactive in all processes taking thereby lowering cost offeri
Slide 8: Growth of revenue
Growth of revenue l Increase sales in all business areas – Growth by share of wallet of existing customers in our home markets and significantly enhance position in Sweden – Growth by market share in our emerging markets l Increase cross-selling l Implement Nordic business model for personal and cor
Slide 9: Excellence in operations
Excellence in operations l Increase focus on cost efficiency throughout the Group l Second wave of integration process to further increase benefits from scale and size l Continue development of innovative e-service facilities for personal as well as corporate and institutional customers l Integratio
Slide 10: Optimal use of capital and balanced risk taking
Optimal use of capital and balanced risk taking l Roll out of economic capital framework throughout the Group l Implement Group legal structure l Further develop credit scoring models l General Insurance sold 10
Slide 11: Financial targets
Financial targets Key performance indicator H1/02 2001 Target Total shareholder return,% -6.5 -19.8 In the top five of our peer group Dividend pay-out ratio,% 44 1) > 40 % of net profit Return on equity,% 9.5 2) 13.8 > Euro risk free interest rate +8% Assets under management growth,% -4.8 0 20 % p.a
Slide 12: Top European banks by market cap
Top European banks by market cap HSBC RBOS UBS LLOYDS TSB BARCLAYS BNP PARIBAS HBOS DEUTSCHE BANK BBVA SANTANDER CREDIT SUISSE SOCIETE GENERALE ABN AMRO UNICREDITO DEXIA INTESA BCI NORDEA DANSKE BANK BANK OF IRELAND ALLIED IRISH BANKS SAN PAOLO IMI HYPO VEREINSBANK KBC SHB 0 10 20 30 40 50 60 70 80
Slide 13: Strong distribution network throughout the Nordic and Baltic Sea region
Strong distribution network throughout the Nordic and Baltic Sea region Finland Branch offices 444 Personnel 10,800 Sweden Branch offices 270 Helsinki Personnel 8,800 Bergen Stockholm St Petersburg Norway Oslo Tallinn Tartu Branch offices 148 Copenhagen Gdynia Riga Personnel 5,700 Vilnius Moscow Ham
Slide 14: Large customer base with high penetration in net banking
Large customer base with high penetration in net banking Baltic Sea Total DK FI NO SE Region Banking customers (1,000) Personal customers 1,700 3,000 500 4,200 60 9,500 Corporate customers 80 330 65 460 10 950 Insurance customers (1,000) General insurance 800 - 420 - 250 1,470 Life 650 260 230 430 7
Slide 15: Strong positions in most Nordic markets
Strong positions in most Nordic markets Corporate and Asset Management & General Retail Banking Institutional Banking Life Insurance Customer lending, Corporate Equity dealing Investment Life and Premiums customer deposit and Banking funds pensions mortgage volumes premiums Denmark 2 1 2 2 2 1 Finla
Slide 16: Integration
Integration 16
Slide 17: Initial merger synergies
Initial merger synergies l Total synergies of EUR 360m annually l Split between costs and revenues: 60/40 l Time period: 2001 - 2003 l Restructuring reserve of EUR 290m l Full effect from 2004 onwards l Required investments* of EUR 0 * Beyond restructuring reserve 17
Slide 18: Second Wave
Second Wave l Total synergies of EUR 300 - 350m l Split between costs and revenues: 100/0 l Time period: 2002 - 2004 l Restructuring reserve of EUR 0 l Full effect from 2005 onwards l Required investments(E) of EUR 350-400m 18
Slide 19: Postgirot Bank synergies
Postgirot Bank synergies l Total synergies of EUR 65m l Split between costs and revenues: 80/20 l Time period: 2002 - 2004 l Restructuring reserve of EUR 43m l Full effect from 2005 onwards l Required investments* of EUR 0 * Beyond restructuring reserve 19
Slide 20: First and second wave of integration
First and second wave of integration Degree of Annual synergies integration Second wave of integration • Common group infrastructure in middle office, back office and Estimated synergies of other support functions the same magnitude as • Common planning and performance the merger synergies managemen
Slide 21: Second wave of integration
Second wave of integration l Consolidated into 15 main projects of which 7 are under execution l Creating total investments of EUR 350-400m, 25% in 2002, 50% in 2003 and 25% in 2004 l Approximately half will be on top of ordinary investments in an average operating year l Investments in Q2 was EUR 2
Slide 22: Realised Synergies
Realised Synergies Realised Realised Realised Target EURm 2000 2001 2002* Cost Revenue Total Initial merger synergies CIB 20 98 117 92 32 124 Retail banking - 20 26 35 47 82 Other business areas 3 - 29 20 51 71 IT - 29 37 55 - 55 Treasury - 21 18 - 15 15 Other group functions - - - 13 - 13 Total ini
Slide 23: Restructuring reserve
Restructuring reserve EURm Originally, Unidanmark 200 Utilised 2000 -71 Originally, CBK 90 Remaining reserve Jan 2001 219 Utilised Q1/01 -18 Q2/01 -24 Q3/01 -7 Q4/01 -110 Originally, Postgirot 43 Remaining reserve Jan 2002 103 Utilised Q1/02 -15 Utilised Q2/02 -15 Remaining reserve end of June 2002
Slide 24: Highlights and market development
Highlights and market development 24
Slide 25: Stable profit excluding investment earnings
Stable profit excluding investment earnings l Operating profit before investment earnings EUR 409m, unchanged compared to first quarter l Total income EUR 1,513, up 1% on first quarter, supported by growth in loans and deposits, net interest income up 2%, and strong commission income , up 4% l Total
Slide 26: Weak equity market
Weak equity market l Investment earnings EUR –50m l Financial buffers in Life operations satisfactory l Pension fund allocation of EUR 152m, which reduced pre-tax profit correspondingly 26
Slide 27: Integration and focus on core areas
Integration and focus on core areas l Sale of General Insurance expected to be completed in the third quarter l LG Petro Bank bid: all approvals in place, tender offer to be launched l Second wave programme consolidated into 15 main projects 27
Slide 28: Market development – stock market indexes
Market development – stock market indexes % 10 5 0 -5 -10 -15 -20 -25 -30 -35 2001 Q1/02 Q2/02 Copenhagen Helsinki Oslo Stockholm Nasdaq Dow Jones 28
Slide 29: Market development – stock market volumes
Market development – stock market volumes Eur bn 120 100 80 60 40 20 0 Average 2001 Q1/02 Q2/02 29 Copenhagen Helsinki Oslo Stockholm
Slide 30: Market development – interest rates
Market development – interest rates % 31-03-02 30-06-02 Change Short, EUR (3 months) 3.45 3.47 0.02 Long, EUR (5 years) 5.01 4.67 -0.34 Short, DK 3.67 3.79 0.12 Long, DK 5.19 4.96 -0.23 Short, NO 6.59 7.11 0.52 Long, NO 6.57 6.70 0.13 Short, SE 4.30 4.45 0.15 Long, SE 5.47 5.18 -0.29 30
Slide 31: Market development - GDP
Market development - GDP % 2000 2001 2002e 2003e Denmark 3.0 0.9 1.6 2.3 Finland 5.6 0.7 2.8 4.2 Norway 2.3 1.0 1.7 2.2 Sweden 3.6 1.2 1.6 3.1 Source: Nordea Economic Research, May 2002 31
Slide 32: Key figures and trends
Key figures and trends Q2 2002 32
Slide 33: Core earnings
Core earnings EURm 700 l Stable profit excluding investment 600 earnings 604 500 l Strong commission income 400 393 409 409 l Growth in loans and deposits 356 300 l Reduced loan losses 200 100 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Profit excluding investment earnings 33
Slide 34: Income statement summary
Income statement summary EURm Q2/02 Q1/02 Change, % Income 1,513 1,494 1 Expenses -1,065 -1,037 3 Loan losses -56 -63 -11 Equity method 17 15 13 Profit excl. Investment earnings 409 409 0 Investment earnings -50 4 Goodwill -44 -42 5 Operating profit 315 371 -15 34
Slide 35: Income statement summary
Income statement summary Jan-Jun Jan-Jun Change %, adj Change, % EURm 2002 2001 Postgirot Income 3,007 3,159 -5 -10 Expenses -2,102 -1,912 10 1 Loan losses -119 -104 14 Equity method 32 31 3 Profit excl. investment earnings 818 1,174 -30 -32 Investment earnings -46 131 Goodwill -86 -73 18 Operating
Slide 36: Income
Income EURm 1800 1,609 1600 1,452 1,494 1,513 1,479 1400 724 1200 623 600 657 658 1000 800 600 885 856 852 837 855 400 200 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 36 Net interest income Non-interest income
Slide 37: Net interest income
Net interest income EURm 1000 l Growth in net interest income 885 l Higher lending and deposit 800 856 852 837 855 volumes 600 l Largely unchanged margins 400 200 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 37
Slide 38: Commission income
Commission income EURm 500 391 363 376 359 45 l Good growth in payment 314 34 34 400 44 commissions 22 87 91 84 91 - acquisition of Postgirot 84 46 55 300 76 - growth in electronic payment 60 56 183 services 157 127 139 200 130 l Weak equity markets l AuM decreased by 7% 100 116 115 126 115 104 l So
Slide 39: Trading
Trading EURm 160 l Income from trading stable at 140 136 137 high level 120 128 131 128 100 l High quality earnings 80 – Customer driven revenue 60 stream 40 20 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 39
Slide 40: Income from insurance
Income from insurance EURm 200 180 l High claims in General 185 160 Insurance 140 142 120 l Weak equity markets affected 100 116 income from Life 80 93 60 72 40 20 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 40
Slide 41: Expenses
Expenses EURm 1200 l Higher level of activity in Q2 1000 476 451 467 l Investments relating to the 410 410 second wave EUR 25m (EUR 800 10m in Q1) l Adjusted for Postgirot costs 600 586 598 were 1% higher year on year 556 562 529 400 200 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 41 Personnel Other
Slide 42: Expenses - breakdown
Expenses - breakdown EURm Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Personnel 1) 603 589 567 535 560 Information technology 2) 128 114 119 104 104 Marketing 40 27 39 25 25 Postage, telephone and office expenses 63 74 68 56 63 Rents, premises and real estate expenses 82 82 90 82 91 Other 156 161 166 149 132 Expe
Slide 43: Key figures
Key figures C/I ratio, banking C/I ratio, banking excl. inv.earnings % % 70 70 64 66 65 60 63 60 50 50 40 40 30 30 20 20 10 10 0 0 Q1/02 Q2/02 Q1/02 Q2/02 43
Slide 44: Total IT-related expenses
Total IT-related expenses* EURm As % of total expenses 250 Q2/02 20.7% 220 Q1/02 19.8% 200 210 205 202 200 Q4/01 20.2% 150 Q3/01 21.3% Q2/01 20.9% 100 50 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 *Computer operations, service expenses, consultants and personnel 44
Slide 45: Loan losses
Loan losses EURm 225 l Loan losses down to EUR 56m 200 100 (EUR 63m) 175 l 0.16% of total loans in Q2, 150 annualised 125 l No single major provision 100 113 l Unchanged general provision 75 l Satisfactory credit quality 50 59 63 56 56 maintained 25 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 General provision
Slide 46: Investment earnings
Investment earnings EURm Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Treasury -4 11 30 1 25 Life insurance -12 0 45 -54 19 General insurance -29 -7 43 -35 11 Other -5 0 -4 -5 55 Investment earnings -50 4 114 -93 110 46
Slide 47: Investment earnings - non-recurring items
Investment earnings - non-recurring items EURm Q2/02 Q2/01 Sale of General Insurance -40 Divestment of Danish mortgage institution DLR 30 Aleksia/Ilmarinen (Other) 40 Atle (Treasury) 57 Total -10 97 47
Slide 48: Pension commitments
Pension commitments l Contribution to Swedish pension fund in Q2 of EUR 152m l Pre-tax profit in Q2 consequently reduced by EUR 152m l Aggregate assets in the Group’s pension foundations exceeded pension commitments by EUR 91m at the end of June l As per 20 August the aggregate assets in the Group’s
Slide 49: Net profit
Net profit EURm Q2/02 Q1/02 Operating profit 315 371 Allocation to pension foundation -152 - Taxes -72 -102 Net profit 91 269 49
Slide 50: Key figures
Key figures EUR Earnings per share % Return on equity (excl. goodwill) 0,10 14 12 0,08 10 0,06 8 0,04 6 4 0,02 2 0,00 0 Q1/02 Q2/02 Q1/02 Q2/02 50
Slide 51: Business areas
Business areas
Slide 52: Results by business area
Results by business area EURm 500 400 440 420 300 200 100 132 127 35 56 49 4 21 0 -50 -31 -47 -100 -200 Retail CIB Asset Life* General Treasury Mgmt* *Product result Q1/02 Q2/02 52
Slide 53: Retail Banking
Retail Banking
Slide 54: Retail Banking operating profit
Retail Banking operating profit EURm 500 l Stable operating profit 450 463 440 l Return on equity 25% 400 425 420 l Firm development in sales 350 366 300 l Bid for LG Petro Bank 250 l Profit of EUR 30m relating to 200 divestment of Danish mortgage 150 institution DLR 100 50 0 Q2/01 Q3/01 Q4/01 Q1/02
Slide 55: Retail Banking operating profit by markets
Retail Banking operating profit by markets Retail EURm Banking DK FI NO SE Operating profit 440 113 142 43 116 C/I ratio % 59 58 51 67 67 RoE % 25 23 35 14 22 55
Slide 56: Retail Banking operating profit by markets
Retail Banking operating profit by markets Retail DK FI NO SE P&B EURm Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Net interest income 774 758 211 207 222 217 107 105 228 223 6 6 Non-interest income 362 321 88 76 76 81 41 36 125 125 5 4 Total income 1,136 1,079 299 283 298 298 148 141 353 348 11 10 Total ex
Slide 57: Retail Banking lending
Retail Banking lending EURbn. End of period 40 35 34.0 33.9 30 25 27.6 28.1 20 22.4 22.5 15 17.7 18.2 10 5 0 Denmark Finland Norway Sweden Q1/02 Q2/02 57
Slide 58: Retail Banking deposits
Retail Banking deposits EURbn. End of period 25 20 19.9 20.5 18.3 18.3 15 13.9 14.1 10 9.4 9.5 5 0 Denmark Finland Norway Sweden Q1/02 Q2/02 58
Slide 59: Retail Banking deposits
Retail Banking deposits EURbn End of June 25 20 8.4 4.1 15 2.5 5.7 10 6.2 5.9 1.2 3.2 5 8.5 5.4 6.2 5.2 0 Denmark Finland Norway Sweden Corporate Personal customer - saving accounts Personal customer - current accounts 59
Slide 60: Retail Banking, volumes and margins
Retail Banking, volumes and margins Volumes Margins EURbn Q2/02 Q1/02 Q2/02 Q1/02 Lending to corporates 51.1 50.5 1.2% 1.2% Lending to personal customers 49.7 48.8 1.7% 1.7% Total lending 100.8 99.0 1.5% 1.5% Deposits from corporates 22.0 22.0 1.3% 1.3% Deposits from personal customers 36.3 35.7 2.1
Slide 61: E-banking
E-banking
Slide 62: E-banking customers
62 Ja n 1 1,5 2 2,5 3 3,5 Mill. M -00 a M r-0 a 0 Ju y-00 l Se y-0 p 0 N t-0 ov 0 Ja -00 n M -01 a M r-0 a 1 Ju y-01 l Se y-0 pt 1 N -0 ov 1 E-banking customers Ja -01 n E-banking customers M -02 a M r-0 ay 2 -0 2 Ja 0 50 100 150 200 250 300 n- Ap 00 Thousands ril -0 Ju 0 ly- 0 O 0 ct -0 Ja 0 n- Ap
Slide 63: Payments and log-ons
Payments and log-ons E-banking payments E-banking log-ons Mill. Mill. 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q 0 Q 0 Q 0 Q 0 Q 1 Q 1 Q 1 Q 1 Q 2 02 Q 0 Q 0 Q 0 Q 0 Q 1 Q 1 Q 1 Q 1 Q 2 02 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 1/ 2/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ Q Q 63 Denmark
Slide 64: Penetration on the net
64 Ja 0 5 10 15 20 25 n % Fe -0 b 1 M -01 a A r-0 pr 1 M il-01 a Ju y-0 ne 1 Ju -01 l A y- 0 ug 1 S -0 ep 1 O t-01 c N t-01 ov D -0 ec 1 Ja - 0 1 Fe n-0 b 2 M - 02 a A r-02 p M r-0 Penetration on the net Mutual funds penetration rate a 2 Ju y-0 ne 2 -0 2 Ja % 0 10 20 30 40 50 60 70 n- M 00 ar - M 00
Slide 65: Corporate and Institutional Banking (CIB)
Corporate and Institutional Banking (CIB)
Slide 66: CIB operating profit
CIB operating profit EURm 160 l Operating profit stable 140 142 120 132 127 l Reduced balanced sheet lending 100 l Income down by 5% 80 94 l Positive loan losses 60 40 20 0 -5 -20 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 66
Slide 67: Stock market development
Stock market development Market Volume Market index Q2 2002, Change Q2 Q2 2002, % EURbn vs Q1, % Denmark 16.9 15.8 -11.7 Finland 47.4 -10.6 -25.7 Norway 13.2 -15.9 -17.1 Sweden 72.1 -23.0 -21.2 Nordic average -15.0 -18.9 Source: Nordea securities 67
Slide 68: CIB operating profit by main area
CIB operating profit by main area Corporate Shipping & Inter- Inv. EURm CIB Division Offshore national Banking Other Markets* Profit before loan losses 114 85 28 16 -9 -7 61 Loan losses 8 -12 9 2 - 9 - Transfer risk 7 - - 7 - 0 - Equity method -2 - - -3 - 1 - Operating profit 127 73 37 22 -9 3 61 C/
Slide 69: CIB operating profit by main area
CIB operating profit by main area Corporate Shipping & Inter- Inv. Banking Other CIB Division Offshore national Markets* EURm Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Q1 Total income 284 299 162 166 37 40 38 44 26 16 20 33 112 120 Total expenses -170 -158 -77 -63 -9 -7 -22 -24 -35 -23 -27 -41 -51 -52
Slide 70: CIB net loan losses
CIB net loan losses EURm Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Corporate division 13 16 33 33 2 Shipping division -9 6 9 9 12 International division -2 -4 4 6 11 Acquisition finance 0 -2 21 41 25 Total 2 16 67 89 50 General provision -10 - -39 75 0 Transfer risk -7 2 -17 -11 10 Total -15 18 11 153 60 70
Slide 71: CIB lending volume
CIB lending volume EURbn. End of period 30 25 27.2 26.3 20 15 16.2 16.6 10 5 6.4 5.8 4.1 3.6 0 Corporate Division Shipping and International Total offshore Q1/02 Q2/02 71
Slide 72: Asset Management & Life
Asset Management & Life
Slide 73: Asset Management, product result
Asset Management, product result EURm 70 l Weak equity markets 65 60 55 56 l AuM down 7% to EUR 100bn 50 50 49 l Net inflow to investment funds ytd 40 17% 30 l Nordea funds “Best Equity Group of the Year” in Germany 20 l Stable margins despite shift in 10 asset allocation 0 Q2/01 Q3/01 Q4/01 Q1/02 Q
Slide 74: Assets under management, volumes
Assets under management, volumes EURbn End of period 120 1.7 1.8 1.9 100 35.7 37.8 80 36.0 34.2 30.6 60 28.6 22.3 28.7 26.6 19.5 40 20 42.2 37.1 39.1 39.5 36.9 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Investment management Private banking Investment funds Real estate within Life 74
Slide 75: Asset structure – Investment Management
Asset structure – Investment Management* March 2002 June 2002 EUR 74bn EUR 68bn Int'l. fixed Int'l. fixed income income 9% 14% Nordic Nordic Nordic fixed Nordic equities fixed income equities 21% income 40% 16% 43% Int'l. Int'l. equities equities 30% 27% 75 *Including mgmt of own investment funds
Slide 76: Asset structure – Investment Funds
Asset structure – Investment Funds March 2002 June 2002 EUR 37.8bn EUR 34.2bn Balanced Balanced funds funds 14% 15% Equity funds 47% Equity funds Fixed 52% Fixed income income funds funds 33% 39% 76
Slide 77: Investment Funds volumes and margins
Investment Funds volumes and margins Volumes, end of period % Margins 20 1,6 18 1,4 18.0 1.46 16 1.45 1,2 14 15.3 1.18 1,0 1.14 12 1.031.00 10 11.0 0,8 10.6 8 0,6 0.65 0.62 6 0,4 4 4.2 2 3.8 0,2 1.5 1.4 0 0,0 DK FI NO SE DK* FI NO SE Q1/02 Q2/02 Q1/02 Q2/02 * Net margin 77
Slide 78: European Fund distribution
European Fund distribution EURm 1800 l Nordea ranked as the 4th-largest 1600 European cross-border fund manager by the Financial Times 1400 1200 l 1000 active distribution agreements 1000 l Assets by country of source: 800 – 32% from Germany 600 – 21% from Switzerland 400 – 16% from Austria 200 0 –
Slide 79: Breakdown of Life operating profit
Breakdown of Life operating profit EURm 100 51 l Weak equity markets 0 +2 = -50 influenced result negatively +453 -100 l Financial buffers reduced -200 l Solvency at adequate level -300 -400 l 20% cushion for further fall in equity markets as of 1 August -500 -11 -540 -600 Normalised Fluctutations A
Slide 80: Life
Life EURm Q2/02 Q1/02 Q4/01 Q3/01 Q2/02 TRADITIONAL LIFE Premiums written net 486 559 589 367 589 Normalised investment. return 239 239 288 279 285 Benefits paid and change in provision -643 -704 -859 -586 -789 Insurance operating expenses -31 -31 -29 -26 -29 Normalised operating margin 51 63 -11 34
Slide 81: Life
Life EURm Denmark Finland Norway Sweden Other Total TRADITIONAL LIFE Premiums written net 150 235 68 30 3 486 Normalised investment. return 119 53 39 26 1 239 Benefits paid and change in provision -248 -262 -91 -38 -2 -643 Insurance operating expenses -13 -3 -9 -2 -4 -31 Normalised operating margin
Slide 82: Life - investments
Life - investments EURbn. End of period 25 l Equities 20 3.4 3.5 3.1 3.4 – Predominantly listed equities 3.0 1.8 1.9 1.5 1.7 1.7 15 – 50/50 Nordic/international 10.6 11.2 11.5 11.7 l Bonds 10 10.8 – ¾ Nordic issuers 5 – Primarily govmn’t & mortgage inst. 5.5 4.4 5.0 5.3 4.9 0 l Total portfolio Q2/01
Slide 83: Life - financial buffers
Life - financial buffers* End of June 2002 % of guaranteed EURm liabilities Denmark 972 11.5 Finland 131 3.4 Norway 35 1.3 Sweden 100 6.9 Total 1,238 7.5 * Financial buffers are defined in accordance with local regulations and practices. 83
Slide 84: Life - solvency situation
Life - solvency situation End of June 2002 Required Solvency Solvency in % of Actual solvency EURm solvency buffer requirement Denmark 79 95 16 121% Finland 185 367 182 198% Norway 133 275 141 206% Sweden 62 132 70 214% 84
Slide 85: General Insurance
General Insurance
Slide 86: General Insurance, operating profit
General Insurance, operating profit EURm 50 l All General Insurance activities sold 40 43 – All activities transferred to Tryg I Danmark as 30 of 1 July 2002 20 25 – expected closing of deal in Q3 10 11 11 0 l Weak result following high claims -7 -10 -18 -20 -24 -29 -30 -35 -42 -40 -50 Q2/01 Q3/01 Q
Slide 87: Combined ratio by main markets
Combined ratio by main markets % 140 120 122 118 110 112 100 105 106 101 100 102 96 80 60 40 20 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 87 Denmark Norway
Slide 88: General insurance
General insurance EURm Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Premiums gross 548 505 494 470 453 Premiums net 430 409 409 378 375 Technical interest 34 31 25 28 32 Claims -356 -341 -367 -302 -286 Expenses -126 -123 -109 -93 -96 Technical result -18 -24 -42 11 25 Investment earnings -29 -7 43 -35 11 Operating
Slide 89: General Insurance
General Insurance EURm Denmark Norway TBi Poland Other Total Premiums gross 230 228 72 17 1 548 Premiums, net 199 168 52 11 1 431 Technical interest 12 19 3 0 0 34 Claims -160 -143 -44 -8 -1 -356 Expenses -49 -51 -18 -4 -4 -126 Technical result 1 -7 -7 -1 -4 -18 Investment earnings -13 -19 1 2 -1 -2
Slide 90: General Insurance - investments
General Insurance - investments EURbn. End of period 3 l Equities: 0.4 2,5 0.4 0.4 2.0 – Predominantly listed equities 0.4 0.4 1.9 2 1.8 1.5 1.6 – 55/45 Nordic/international 1,5 l Bonds 1 – 2/3 Nordic issuers 0,5 – Primarily govmn’t & mortgage inst. 0.4 0.4 0.4 0.5 0.3 l Total portfolio 0 Q2/01 Q3/0
Slide 91: Group Treasury
Group Treasury
Slide 92: Group Treasury operating profit
Group Treasury operating profit EURm 40 38 l Gains from bond portfolio 35 35 35 30 l Losses on equity investments 25 l Issuance of subordinated debt 20 21 21 15 10 5 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 92
Slide 93: Group Treasury operating profit by main areas
Group Treasury operating profit by main areas Investment & Risk Trading Group Funding Total Fixed income Equity portfolios portfolios Q2/02 Q1/02 Q2/02 Q1/02 Q2/02 Q1/02 Q2/02 Q1/02 Income - - 31 -5 -31 18 32 30 Expenses - - -3 -1 -1 -1 -7 -6 Profit excl. Investment earnings 25 24 - - - - 25 24 Inve
Slide 94: Group Treasury investment portfolio
Group Treasury investment portfolio EURbn. End of period 20 l Equities 0.7 15 0.6 0.6 – Listed, unlisted & private equity 15.1 0.7 0.6 13.5 funds 13.4 11.7 11.9 10 l Bonds – ¾ Nordic issuers 5 – Primarily govmn´t & mortgage inst. 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Fixed income Equities 94
Slide 95: Balance Sheet
Balance Sheet 95
Slide 96: Balance sheet - key items
Balance sheet - key items EURbn, end of period Jun 02 Dec 01 Change,% Lending 143 138 4 Deposits 90 83 8 Shareholders’ equity 12 12 0 Total assets 251 242 4 Risk-weighted assets 136 136 0 96
Slide 97: Balance sheet structure - assets
Balance sheet structure - assets EURbn. End of period 150 143 138 120 90 60 30 33 29 24 22 24 24 26 16 7 7 0 Lending Interest Loans and Assets, Other assets, Other bearing advances to insurance banking securities credit inst. 31-12-2001 30-06-2002 97
Slide 98: Real estate holdings
Real estate holdings Book value, end of period, EURbn H1/02 2001 2000 1999 Owner occupied properties 1.4 1.5 1.4 1.4 Non owner occupied properties 0.3 0.3 0.6 2.1 Shares in real estate holding 0.3 0.3 0.4 0.4 companies Investments of the insurance 2.1 2.0 1.6 1.6 companies Total 4.1 4.1 4.0 5.5 98
Slide 99: Balance sheet structure – liabilities and equity
Balance sheet structure – liabilities and equity EURbn. End of period 100 90 90 80 83 70 60 61 60 50 40 30 30 30 28 20 23 22 23 10 12 12 11 8 0 Deposits Debt Deposits by Other Liabilities, Shareholder´s Other securities in credit inst. liabilities, insurance equity issue banking 31-12-2001 30-06-200
Slide 100: Lending and deposits
Lending and deposits Lending Deposits EURbn. End of period EURbn. End of period 160 100 140 138 142 143 80 86 90 120 135 134 81 81 83 100 60 80 60 40 40 20 20 0 0 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 100
Slide 101: Capital adequacy
Capital adequacy Tier 1 ratio Total capital ratio % % 10 10 9 9 9.2 8.9 8 8 7 7 7.2 7.4 6 6 5 5 4 4 3 3 2 2 1 1 0 0 Q1/02 Q2/02 Q1/02 Q2/02 101
Slide 102: Capital base
Capital base EURm June 2002 Shareholder´s equity 11,532 Profit H1 -360 Companies not included in the financial group 312 Shareholder´s equity in the capital base 11,484 Hybrid capital 695 Minority interests 19 Group goodwill -2,063 Other deductions -60 TIER 1 CAPITAL 10,075 TIER 2 CAPITAL (subordina
Slide 103: Credit quality
Credit quality
Slide 104: Loan portfolio by customer group
Loan portfolio by customer group End of June 2002 EUR 143bn Public sector 2% Personal customers 38% Companies 60% 104
Slide 105: Lending to personal customers
Lending to personal customers End of June 2002 EUR 55bn Other loans comprise: Other loans l Consumer credits 23% l Investment credits l Car financing l Overdraft facilities l Credit cards Housing loans 77% 105
Slide 106: Lending to companies by industry
Lending to companies by industry End of June 2002 EUR 85 bn Shipping & Agriculture & offshore fishing 6% 5% Real estate Other companies 25% 9% Renting, Construction consulting and 4% other services 10% Transport, communication Finance 5% 9% Commerce and Manufacturing services 17% 10% 106
Slide 107: Loan portfolio
Loan portfolio End of period EUR bn Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Personal customers 55 52 51 50 50 Real estate 22 22 20 19 19 Construction 3 3 3 3 3 Transport, communication 4 4 4 4 4 Commerce and services 9 8 9 8 9 Manufacturing 15 16 16 16 16 Finance 8 7 7 7 9 Business service 8 9 9 8 5 Other com
Slide 108: Lending by geographical area
Lending by geographical area End of June 2002 EUR 143bn Asia 0.7% Latin America USA 0.7% 1.6% Non-OECD Nordic countries 0.9% 90.4% Other Other OECD 9.6% 0.5% The Baltic states and Poland 0.3% Other EU countries 4.9% Nordic countries, EURbn l Denmark 34 l Finland 29 l Norway 24 108 l Sweden 43
Slide 109: Transfer risk exposure, EURm
Transfer risk exposure, EURm End of June 2002 Asia 754 Latin America 457 -of which China 282 -of which Brazil 262 South Korea 113 Panama 59 Indonesia 45 Chile 43 Mexico 52 Argentina 4 Middle East 372 -of which Iran 116 Turkey 85 109
Slide 110: Nordea telecom financing portfolio
Nordea telecom financing portfolio Divided by operators and manufacturers End of June 2002 Total exposure approx EUR 6.2 bn Manu- l Total outstanding EUR 4.1bn facturers 39% l Majority of exposure related to – major Nordic equipment manufacturers – major Nordic telecom operators Operators 61% 110
Slide 111: Nordea shipping portfolio
Nordea shipping portfolio Distribution by type of vessel End of June 2002 Total exposure approx EUR 6.0bn Other dry cargo Combined 4% Crude tankers vessels 1% 15% l Outstanding, EUR 5.1bn Pure car carries 3% Reefers l Well diversified portfolio by 5% Chemical tankers Misc.loans type of vessel 18% 5%
Slide 112: Impaired loans
Impaired loans EURm End of period June 02 March 02 Dec 01 Sep 01 June 01 Impaired loans, gross 3,180 3,132 3,114 3,120 3,040 Provisions -2,305 -2,291 -2,259 -2,267 -2,122 Of which: Specific provisions 1,836 -1,839 -1,803 .. .. Appraised by category -79 -82 -92 General provisions -390 -370 -364 .. ..
Slide 113: Impaired loans, net
Impaired loans, net End of June 2002 EUR 875m Other companies Households 22% customers 25% Agriculture and fishing 2% Construction 2% Real estate Manufacturing management 11% 13% Transport 2% Shipping Trade & services 5% 10% Renting, consulting Financial operations 3% and other company 113 servicies
Slide 114: Loan losses
Loan losses EURm 400 361 l Loan losses down to EUR 56m 321 (EUR 63m) 300 193 213 184 l 0.16% of total loans in Q2, 200 168 annualised 100 59 56 63 56 l No single major provision 0 l Unchanged general provision -100 l Satisfactory credit quality -105 -134 -128 maintained -148 -200 -300 -264 Q2/01 Q3/
Slide 115: Comments on certain industries
Comments on certain industries Real estate l Vacancy rates still low but increasing l Rent levels down from peak but still much higher than original levels 3-5 years ago l Low interest rates help secure cash flow and secondary market values l New construction volumes adjusting to decreased demand 11
Slide 116: Comments on certain industries
Comments on certain industries Telecom l Operators’ profitability declining due to increased competition and non- productive assets l Slower than expected demand for enhanced services (WAP, GPRS, 3G, Broadband) l Delayed investments in 3G affect equipment suppliers and manufacturers l Consolidation
Slide 117: Comments on certain industries
Comments on certain industries Aircraft Finance l Stabilising after last years shock effect l US and cross-atlantic operators still suffering l Nordic operators show ability to adjust to new market conditions l No new needs for provisions identified 117
Slide 118: Comments on certain industries
Comments on certain industries Shipping l Slower economic growth generally affects the industry negatively l Container ships worst hit, tanker rates decreased significantly but from exceptionally high levels l Industrial shipping doing reasonably well l Cruising picking up after last autumn l Nordea
Slide 119: Comments on certain industries
Comments on certain industries Other industries l Automobile industry and particularly subcontractors under pressure l All media companies suffer from reduced advertising income l Capital goods sector under intense competitive pressure as volumes drop l Nordic traditional industries (forestry, pulp
Slide 120: Economic capital
Economic capital
Slide 121: Economic capital
Economic capital l 7 different risk categories are incorporated l The measurement period is one year l The confidence level is 99.97% l The economic capital may change over time due to: – the composition of risk exposures – changes in parameters l Economic capital is used for – risk management – per
Slide 122: Economic capital per business area
Economic capital per business area End of June 2002 EUR 10.4bn Other l Reduced overall risk Treasury 7% 5% l Economic capital reduced by EUR General 0.7bn in 2002 Insurance 9% Retail 48% Asset Mgmt & Life 10% CIB 122 21%
Slide 123: Distribution of economic capital - by risk category
Distribution of economic capital - by risk category End of June 2002 Business risk General Insurance 10% 3% Life Insurance 1% Operational 9% Real Estate Credit 8% 55% Market 14% 123
Slide 124: Appendix
Appendix l Market shares Page 125 l Financials Page 140 l Nordea share Page 147 l Other Page 154 l Macro statistics Page 159 124
Slide 125: Appendix: Market shares
Appendix l Market shares *Statistics from Sweden delayed due to technical problems in the Swedish central bank (March instead of May) 125
Slide 126: Market shares, personal customer deposits
Market shares, personal customer deposits % 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb 02 May 02 126
Slide 127: Personal customer deposits - market volume & share
127 00 -J 0 100 200 300 400 DKKbn no un NOKbn v- 00 0 100 200 300 400 9 -S fe 9 ep b- 0 m 0 00 -D aj -0 ec au 0 01 g- 0 -m no 0 ar v- 0 01 fe 0 -ju b- ne 0 m 1 01 aj -s - Norway Denmark au 01 ep g- 01 0 -d no 1 e c v- 0 02 fe 1 -m b- 02 02 ar -m 02 ay -ju n Market volume 5% 7% 9% 11% 13% 15% 18% 20%
Slide 128: Market shares, corporate deposits
Market shares, corporate deposits % 50 45 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb 02 May 02 128
Slide 129: Corporate deposits - market volume & share
129 no ju n- 0 100 200 300 v- 0 100 200 300 9 00 fe 9 se DKKbn NOKbn b- p- 0 m 0 00 aj de - c- au 00 00 g- m 0 ar no 0 -0 v- 0 1 fe 0 ju b- n- 0 01 m 1 se aj - Norway Denmark p- au 01 01 g- de 0 c- no 1 01 v- 0 m fe 1 ar b- -0 02 02 2 -m ju n- Market volume ay 02 10% 12% 14% 16% 18% 20% 14% 16% 18%
Slide 130: Market shares, personal customer lending
Market shares, personal customer lending % 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb-02 May 02 130
Slide 131: Personal customer lending - market volume & share
131 no ju n- 50 0 100 150 200 250 v- 0 100 200 300 400 500 600 9 00 fe 9 se DKKbn NOKbn b- p- 0 m 0 00 aj de - c- au 00 00 g- m 0 ar no 0 -0 v- 0 1 fe 0 ju b- n- 0 01 m 1 se aj - Norway Denmark p- au 01 01 g- de 0 c- no 1 01 v- 0 m fe 1 ar b- -0 02 02 2 -m ju n- Market volume ay 02 6% 7% 8% 9% 10% 1
Slide 132: Market shares, corporate lending
Market shares, corporate lending % 50 45 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb 02 May 02 132
Slide 133: Corporate lending - market volume & share
133 ju ju l- n- 50 0 100 150 200 250 300 350 0 100 200 300 400 500 00 oc 99 se t- 9 DKKbn NOKbn p- ja 9 00 n- de ap 00 c- r-0 00 0 m ju ar l-0 -0 oc 0 1 t- 0 ju ja 0 n- n- 01 ap 01 se p- Norway r-0 Denmark 1 01 ju de l- 01 01 c- 01 -o m j a ct ar n- -0 ap 02 2 r-0 2 Market volume 22% 24% 26% 28% 30%
Slide 134: Investment funds - market volume & share
Investment funds - market volume & share DKKbn Denmark EURbn Finland 32% 300 16 34% 30% 14 250 32% 28% 12 200 10 30% 150 26% 8 100 24% 6 28% 22% 4 26% 50 2 0 20% 0 24% 00 1 98 99 01 00 1 98 99 01 -0 -0 n- c- p- c- n- ar c- p- c- ar ju de de se ju m de de se m NOKbn Norway SEKbn Sweden 160 14% 1000 2
Slide 135: Investment funds, Nordic region
Investment funds, Nordic region Market volume and Nordea's market share 180 25% 160 140 23% 120 21% 100 80 19% 60 40 17% 20 0 15% 2 9 0 1 99 00 01 02 00 00 01 01 98 99 99 -0 -9 -0 -0 n- n- n- n- p- c- p- c- c- p- c- ar ar ar ar ju ju ju ju de de de de se se se m m m m Market volume Market share, Nor
Slide 136: Investment funds, net inflow, Norway
Investment funds, net inflow, Norway Market volume, Nordea volume, and accumulated market share ytd NOKm % 3 500 70 3 000 60 2 500 50 2 000 40 1 500 30 1 000 20 500 10 0 0 -500 -10 -1 000 -20 -1 500 -30 -2 000 -40 0 1 0 1 02 2 0 00 1 01 00 01 02 ay 00 01 l-0 l-0 -0 -0 -0 -0 -0 v- v- n- -m n- n- p- p
Slide 137: Investment funds, net inflow, Finland
Investment funds, net inflow, Finland Market volume, Nordea volume, and accumulated market share ytd EURm % 1000 40 800 32 600 24 400 16 200 8 0 0 -200 -8 -400 -16 0 1 0 1 02 2 0 00 1 01 00 01 02 ay 00 01 l-0 l-0 -0 -0 -0 -0 -0 v- v- -m n- n- n- p- p- ar ar ar aj aj ju ju no no ja ja ja se se m m m
Slide 138: Investment funds, net inflow, Sweden
Investment funds, net inflow, Sweden Market volume, Nordea volume, and accumulated market share ytd SEKm 29bn 18bn 18bn % 14 000 28 12 000 24 10 000 20 8 000 16 6 000 12 4 000 8 2 000 4 0 0 -2 000 -4 0 0 0 0 0 0 1 1 1 1 1 1 2 2 2 2 n-0 r-0 j -0 ul-0 p-0 v -0 n-0 r-0 j -0 ul-0 p-0 v -0 n-0 r-0 j -0 u
Slide 139: Market share, equity dealing - Nordea Securities
Market share, equity dealing - Nordea Securities % Equity market turnover EURbn 18 16 Q2/02 Q1/02 Q2/01 Denmark 16.9 14.6 23 14 Finland 47.4 53.0 51 12 Norway 13.2 15.7 20 10 Sweden 72.1 93.6 116 8 6 4 2 0 en lm i o nk sl o ag si O kh el nh c H to e op S C 2001 H1/02 139
Slide 140: Appendix: Financials
Appendix l Financials 140
Slide 141: Operational income statement
Operational income statement EURm Q2/02 Q1/02 Q4/01 Q3/01 Q2/01 Net interest income 855 837 852 856 885 Commission income 391 376 363 314 359 Trading 137 136 128 131 128 Net income from insurance 93 116 72 142 185 Other 37 29 37 36 52 Income 1,513 1,494 1,452 1,479 1,609 Personnel expenses -598 -586
Slide 142: Statutory income statement
Statutory income statement EURm Jan-Jun 2002 Jan-Jun 2001 Interest income 5,107 5,966 Interest expenses -3,282 -4,093 Net interest income 1,825 1,873 Dividends received 27 44 Net commission income 791 741 Net result from financial operations 142 176 Other income 69 181 Total income 2,854 3,015 Gener
Slide 143: Reconciliation of operational and statutory accounts
Reconciliation of operational and statutory accounts EURm Operational Trading Investment Insurance total to Other Statutory Jan.-Jun 2002 income activities own line adjustment Jan-Jun 2002 Net interest income 1,692 83 1) 50 6) 1,825 Dividends received 27 9) 27 Net commission income 767 15 2) 9 13) 7
Slide 144: Reconciliation of operational and statutory accounts
Reconciliation of operational and statutory acounts 1. Net interest income from trading transactions in Nordea Markets (for 13. Net income insurance (Life & General), including investment activities (and example interest related to swaps etc.), reclassified as trading income in relevant costs), i.e.
Slide 145: Bank ratings
Bank ratings Moody’s S&P Fitch BFSR Short Long Short Long Short Long Individ. Nordea Bank F B P-1 Aa3 A-1 A+ F1+ AA- B Nordea Bank S B P-1 Aa3 A-1 A+ F1+ AA- B Nordea Bank D B P-1 Aa3 A-1 A+ F1+ AA- B Nordea Bank N B- P-1 Aa3 A-1 A+ F1+ AA- B Nordea Hypotek P-1 Aa3 A-1 Nordea Kredit Aa1 Norgeskredit
Slide 146: Insurance ratings
Insurance ratings Moody’s S&P A.M.Best Dansk Kautionsforsikrings-Aktieselskab BBB+* Tryg-Baltica Forsikring, internationalt BBB* A- (excellent)** Forsikringsselskab A/S Tryg-Baltica International (UK) Ltd BBB* A- (excellent)** Tryg Forsikring A/S A3 * On CreditWatch with developing implications ** O
Slide 147: Appendix: Nordea share
Appendix l Nordea share 147
Slide 148: Nordea vs DJ Stoxx European banks
Nordea vs DJ Stoxx European banks 6 March 2000* - 5 August 2002 180 160 140 120 100 80 60 June-00 June-01 June-02 Nordea DJ Stoxx European Banks * Date of announcement of MNB/Unidanmark merger 148
Slide 149: Nordic bank shares, liquidity 2002
Nordic bank shares, liquidity 2002 EURm 2500 2000 1500 1000 500 0 Jan Feb March April May June July Danske Bank SEB FSPA Handelsbanken Nordea 149
Slide 150: Shareholder structure, End of June 2002
Shareholder structure, End of June 2002 3.9% 1.9% 6.0% 24.0% 8.4% International investors Swedish institutions Swedish government 9.1% Danish institutions Finnish institutions Finnish public Danish public Swedish public 18.3% 28.4% Number of shareholders approx 512,000 150
Slide 151: Largest registered shareholders
Largest registered shareholders End of June 2002 Shareholder Number of shares Percent Swedish Government 542,015,102 18.26 % Alecta 114,614,179 3.86 % Nordea Danmark fonden 102,529,423 3.45 % Tryg i Danmark smba 92,609,801 3.12 % Robur fonder 89,926,155 3.03 % Nordea fonder 58,832,814 1.98 % SEB fon
Slide 152: Number of shares
Number of shares Type of Number of Outstanding Date transaction Subject shares issued shares Jan, 2000 New issue Merita 815,800,287 2,091,067,728 April, 2000 New issue Unidanmark 869,776,488 2,960,844,216 June, 2000 New issue Unidanmark 18,348,501 2,979,192,717 2000-2001 New issue Conversions* 3,473
Slide 153: Data per share
Data per share H1/02 2001 2000 19991) 1998 EUR SEK SEK Dividend - SEK 1.64 0.23 2.00 1.75 Shareholders equity per share, EUR 3.90 4.00 3.74 3.43 2.68 Earnings per share, EUR 0.12 0.53 0.58 0.55 0.53 Share price, end of period, 50 55.5 71.5 50 52 SEK P/E ratio - 11.3 14.0 10.6 11.0 1531) Pro forma in
Slide 154: Appendix: Other
Appendix l Other 154
Slide 155: Provisioning policy
Provisioning policy l Corporate customers classified according to internal rating l Quarterly review of loan portfolio l Provisions and action plans reviewed for risk classified customers l New legislation in Sweden introducing general provisions l Nordea´s general provisions are unchanged 155
Slide 156: Business structure
Business structure Board of Directors Group Audit Group CEO Group Corporate Centre Group Staffs Corporate and Institutional Asset Management & Retail Banking General Insurance Banking Life Regional banks Corporate Division Investment Management Denmark Corporate Shipping, Offshore & Oil Services Inv
Slide 157: Legal structure July 1, 2002
Legal structure Juli 1, 2002 Nordea AB (Publ) Sweden Nordea Bank Finland Nordea Securities AB Nordea Asset Nordea INS Holding Plc Finland Sweden Management AB A/S Denmark Sweden Nordea Bank Nordea Bank Nordea Bank Various Various Tryg A/S* Sweden AB Norge ASA Danmark A/S subsidiaries subsidiaries De
Slide 158: Group Executive Management
Group Executive Management Thorleif Krarup Group CEO Lars G Nordström Head of Retail Banking Markku Pohjola Head of Corporate and Institutional Banking Christian Clausen Head of Asset Management and Life Tom Ruud Head of Group Staffs (Group IT, Group Human Resources, Group Identity and Communication
Slide 159: Appendix: Macro statistics and estimates
Appendix l Macro statistics and estimates Source: Nordea Economic Research Estimates from May 2002 159
Slide 160: Macro data
Macro data % 2001 2002e 2003e Gross domestic product DK 0.9 1.6 2.3 FI 0.7 2.8 4.2 NO 1.0 1.7 2.2 SE 1.2 1.6 3.1 Inflation DK 2.4 2.4 2.3 FI 2.7 2.2 1.9 NO 3.0 1.5 2.5 SE 2.6 2.3 1.9 Private consumption DK 0.6 1.8 2.1 FI 1.4 2.8 3.5 NO 2.2 3.5 2.6 SE 0.2 2.4 2.8 Unemployment DK 5.1 5.1 4.9 FI 9.1 9.
Slide 161: Gross domestic product
Gross domestic product Change in % YoY 8 6 4 2 0 Q1/90 Q1/91 Q1/92 Q1/93 Q1/94 Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q1/00 Q1/01 Q1/02 -2 -4 -6 -8 Denmark Finland Norway Sweden 161
Slide 162: Inflation
Inflation % 14 12 10 8 6 4 2 0 -2 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 162 Denmark Finland Norway Sweden
Slide 163: Private consumption
Private consumption Change in % YoY 10 8 6 4 2 0 Q1/90 Q1/91 Q1/92 Q1/93 Q1/94 Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q1/00 Q1/01 Q1/02 -2 -4 -6 -8 Denmark Finland Norway Sweden 163
Slide 164: Household savings ratio
Household savings ratio % 12 10 8 6 4 2 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 Denmark Finland Norway Sweden 164
Slide 165: Unemployment
Unemployment % of labour force 20 15 10 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 165 Denmark Finland Norway Sweden
Slide 166: Credit growth total lending to non-bank sector
Credit growth total lending to non-bank sector Change in % YoY 15 10 5 0 ch ch ch ch ch ch ar p t t t t t ep ep ep ep ep e -m ar ar ar ar ar ar -s S S S S S M M M M M M -5 01 02 96 97 98 99 00 96 97 98 99 00 01 -10 Denmark Finland Norway Sweden 166
Slide 167: Bankruptcies
Bankruptcies Number of bankruptcies per month 1800 1600 1400 1200 1000 800 600 400 200 0 94 95 96 97 98 99 00 01 02 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ Q Q Q Q Q Q Q Q Q Denmark Finland Norway Sweden 167
Slide 168: Exchange rate, USD/Euro
168 1- 1 USD -9 0,8 0,85 0,9 0,95 1 1,05 1,1 1,15 1,2 1- 8 4 -9 1- 8 7 1- -98 10 -9 1- 8 1 -9 1- 9 4 -9 1- 9 7 1- -99 10 -9 1- 9 1 Exchange rate, USD/Euro -0 1- 0 4 -0 1- 0 7 1- -00 10 -0 1- 0 1 -0 1- 1 4 -0 1- 1 7 1- -01 10 -0 1- 1 1 -0 1- 2 4 -0 1- 2 7 -0 2
Slide 169: Exchange rate, Euro/SEK
169 1- 1 -9 SEK 8 8,4 8,8 9,2 9,6 10 1- 8 4 -9 1- 8 7 1- -98 10 -9 1- 8 1 -9 1- 9 4 -9 1- 9 7 1- -99 10 -9 1- 9 1 -0 Exchange rate, Euro/SEK 1- 0 4 -0 1- 0 7 1- -00 10 -0 1- 0 1 -0 1- 1 4 -0 1- 1 7 1- -01 10 -0 1- 1 1 -0 1- 2 4 -0 1- 2 7 -0 2
Slide 170: Exchange rate, Euro/NOK
170 1- 1 -9 7 7,5 8 8,5 9 9,5 10 NOK 1- 8 4 -9 1- 8 7 1- -98 10 -9 1- 8 1 -9 1- 9 4 -9 1- 9 7 1- -99 10 -9 1- 9 1 -0 1- 0 4 Exchange rate, Euro/NOK -0 1- 0 7 1- -00 10 -0 1- 0 1 -0 1- 1 4 -0 1- 1 7 1- -01 10 -0 1- 1 1 -0 1- 2 4 -0 1- 2 7 -0 2
Slide 171: Oilprice development, Brent, USD/Barrel
171 1- 1 -9 0 5 10 15 20 25 30 35 40 45 50 0 Dollar 1- 1 -9 1 1- 1 -9 2 1- 1 -9 3 1- 1 -9 4 1- 1 -9 5 1- 1 -9 6 1- 1 -9 7 1- 1 -9 8 1- 1 -9 9 Oilprice development, Brent, USD/Barrel 1- 1 -0 0 1- 1 -0 1 1- 1 -0 2
Slide 172: Stock exchange indices
172 31 -1 - 0 200 400 600 800 1000 1200 1400 31 97 -5 -9 30 7 -9 - 31 97 -1 - Index 100 = 1990 31 98 HEX Index -5 -9 30 8 Oslo Total Index -9 -9 31 8 -1 - 31 99 -5 Stock exchange indices - 30 99 -9 -9 31 9 -1 - 31 00 -5 -0 30 0 -9 -0 31 0 -1 - KFX Index 31 01 -5 -0 30 1 -9 -0 31 1 -1 - 31 02 -5 Affä
Slide 173: Money market, 3 months rates
173 1- 1 -9 2 3 4 5 6 7 8 9 % 8 1- 5 -9 8 1- 9 -9 8 1- 1 -9 9 Denmark 1- 5 -9 9 1- 9 -9 9 Finland 1- 1 -0 0 1- 5 -0 0 Norway Money market, 3 months rates 1- 9 -0 0 1- 1 -0 1 1- 5 Sweden -0 1 1- 9 -0 1 1- 1 -0 2 1- 5 -0 2
Slide 174: Government bond, 10 year
174 1- 1 -9 3 3,5 4 4,5 5 5,5 6 6,5 7 7,5 % 1- 8 4 -9 1- 8 7 1- -98 10 -9 1- 8 1 -9 1- 9 4 Denmark -9 1- 9 7 1- -99 10 -9 Finland 1- 9 1 -0 1- 0 4 -0 Government bond, 10 year 1- 0 7 Norway 1- -00 10 -0 1- 0 1 -0 1- 1 4 Sweden -0 1- 1 7 1- -01 10 -0 1- 1 1 -0 1- 2 4 -0 1- 2 7 -0 2
Slide 175: investor.relations@nordea.com
Investor Relations investor.relations@nordea.com 175
Slide 176: Financial calendar
Financial calendar l Capital Markets Day will be arranged on 23 September in London l Interim report for the third quarter 2002 will be published on 22 October 176