Slide 1: Interim Report January – September 2007 Press conference
Interim Report January – September 2007 Press conference 25 October 2007 Christian Clausen President and Group CEO
Slide 2: Strong results
Strong results Income EUR 5,744m, up 9% (EUR 5,268m in the first nine months 2006*) Strong volume growth in all key areas Expenses EUR 2,993m, up 7% (EUR 2,806m) Gap between income and cost growth of 2.4%-points* Limited impact from market turmoil Profit before loan losses EUR 2,751m, up
Slide 3: Operating income up 9%
Operating income up 9% YoY EURm Strong growth in Net interest income – up 10% 6 000 5 744 Double digit lending growth compensating for margin 5 500 5 268 pressure 5 000 Increased deposit volumes and improved margins 4 500 Increased contribution from New European Markets 4 000 Net commissio
Slide 4: Limited impact on Nordea from international market turmoil
Limited impact on Nordea from international market turmoil Insignificant consequences on Nordea’s funding operations Well diversified funding base Prudent liquidity management Good reception of the Nordea name in the market Limited group P/L effects from market turbulence Limited exposur
Slide 5: Cost increase in line with expectations
Cost increase in line with expectations Cost increase YoY (Jan-Sep) 7% 6,7% Moderate cost growth reflecting 5,8% implemented growth strategy and related 6% 4,9% 5% 4% investments 3% 2% Number of employees in New European 1% 0% Markets up 1,450 to 3,180 Reported Excl. banking Excl. banking operat
Slide 6: Profit before loan losses up 12% Jan – Sep 2007
Profit before loan losses up 12% Jan – Sep 2007 EURm 3 000 2 751 Strong top line growth drives the profit 2 500 2 462 increase Strong contribution from all Customer 2 000 Areas - consistent delivery of Nordea’s 1 500 organic growth strategy 1 000 500 0 Jan - Sep 06 * Jan - Sep 07 * Excl. capital
Slide 7: Gap between income and cost growth on track
Gap between income and cost growth on track %-points 4 Gap of 2.4%-points for the first 9 months 3,4 Income 9.0% 3,2 Costs 6.6% 3 Gap of 3.1%-points excl. Russia 2,4 Continued quarterly improvement – in 2 line with full year expectations Unchanged outlook for full year, gap in 1 the area
Slide 8: Strong and well diversified credit portfolio
Strong and well diversified credit portfolio Net loan losses, EURm Continued flow of recoveries and limited new 0 -10 provisions in the first nine months -13 -13 -20 -30 Credit quality remains stable cross sectors – improved -28 -40 corporate ratings -50 -60 -55 14 quarters with net recoveries
Slide 9: On the route to Great Nordea
On the route to Great Nordea Profit orientation Ambitious vision & targets Clear growth strategy Strong customer oriented values & culture 9
Slide 10: Ambitious financial targets
Ambitious financial targets Long-term financial targets Target In the top quartile of Total Shareholder Return (%) European peer group Risk-adjusted profit (EURm) Double in 7 years Return on Equity (%) In line with top Nordic peers Capital structure policy Policy Dividend payout-ratio > 40% of net p
Slide 11: Total shareholder return (TSR) Ytd 2007
11 B an k % A o lli -25 -15 -5 5 15 25 35 45 55 e d f Ir Iri lan sh d B an k H bo B ar s cl ay s R B O D S an Sw s k ed e Er ba st nk e So U Ban ci nic k et e re (2/1 2007 – 28/9 2007) G dito en er al e B D N nB P Sa N O nt R an de r SE B Ll oy ds C om SH m Total shareholder return (TSR) Ytd 2007 er
Slide 12: Risk-adjusted profit well above long term target
Risk-adjusted profit well above long term target EURm 2000 Up 17% Jan - Sep 07 1 798 Strong revenue generation and 1 539 1500 positive gap Doubling of risk adjusted profit in 7 years implies 10% annual growth rate 1000 500 0 Jan - Sep 06 Jan - Sep 07 Risk adjusted profit 12
Slide 13: Return on Equity (RoE) – in line with target
Return on Equity (RoE) – in line with target % 25 Nordea’s RoE above Nordic average 22,6 19,6 19,5 19,5 Combined focus on 20 18,8 Organic growth Operational efficiency 15 Capital management 19.5% Jan - Sep 2007 10 5 0 FY 2006 Jan - Jun 07 Jan - Sep 07 Nordea Average Nordic Peers (Danske,
Slide 14: Profitable organic growth
Profitable organic growth Exploit growth potential in Supplement Nordic growth Increase business with global and European strategy with investments in existing customers monoline businesses based New European Markets on strong competencies Increase business with Creating value through Successf
Slide 15: Growth strategy continues to pay off
Growth strategy continues to pay off Each area has clearly identified initiatives Private Banking Segments in focus Gold customers Small & Medium Corporates Long term savings Consumer credits and Cards Product areas in focus Life insurance Capital markets products Geographical markets
Slide 16: Increased number of customers in premium segments drives income growth
Increased number of customers in premium segments drives income growth Gold segment YoY (Jan - Sep) 12.8% Continued growth in business 7.6% 4.9% 175 with Gold customers 72 155 13% increase in business volume 2.4 69 2.2 Increased number of Gold customers 15.2% Up 8% in Q3, annualised No. of c
Slide 17: Nordic Private Banking – strong position and potential
Nordic Private Banking – strong position and potential Private Banking segment YoY (Jan-Sep) 18.0% Increased number of Private 1,4% 16,3% 46 Banking customers 542 39 Up 16% Q3/Q3 85 535 73 Strong volume growth driven by strong customer inflow 15.2% Up 18% YoY No. of customers Volume per Busi
Slide 18: Continued revenue growth in all Nordic Banking corporate segments
Continued revenue growth in all Nordic Banking corporate segments Income growth (YoY) Double digit income growth 10% Strong growth in corporate lending volumes 9% – clearly compensating for margin pressure experienced in the period 6% Increased contribution from transactions within corporate a
Slide 19: Improved market position within consumer lending and cards
Improved market position within consumer lending and cards YoY Retail consumer lending Lending Margin Consumer lending up 15% EURbn % Non-collateralised up 17% 18 4,6 17 17,5 1.9 million credit cards outstanding 16,9 16 16,4 4,0 Of which 1.1 with revolving credit 15,6 350,000 issued during
Slide 20: Growth plan in Sweden well on track
Growth plan in Sweden well on track Gold customers Regional banks in Sweden (‘000) Number of Gold customers up 6% in Q3, 800 annualised – accelerating growth rate since 746 757 706 714 719 725 735 launch of Growth plan Growth Plan Sweden focuses on advisory 600 services and product segments with
Slide 21: Strong growth in New European Markets
Strong growth in New European Markets YoY Total income New European Markets* EURm Total lending up 76%, excl. Orgresbank 80 Mortgage lending up 86% 70 Number of gold customers doubled 68 60 63 Selective growth ambitions in Poland and 50 Baltics Approx. 40 new branches to be opened in Polan
Slide 22: Focused resource management a prerequisite for growth
Focused resource management a prerequisite for growth 70 C/I ratio (%) Cost culture firmly established 60 64 63 60 50 56 53 52 Future branch project and Nordea 40 Transformation Program to free up time 30 for sales 20 10 Strategic investments to support growth 0 2002 2003 2004 2005 2006 Jan-Se
Slide 23: Unchanged outlook for 2007
Unchanged outlook for 2007 Capital markets have gradually normalised, even though further market disturbances cannot be ruled out Despite remaining market uncertainty Nordea confirms its financial outlook for the full year 2007 The cost increase for the full year is expected to be approx. 6%
Slide 24: Summary – Jan - Sep 2007
Summary – Jan - Sep 2007 Organic growth strategy continues to pay off Strong result Revenues up 9% Risk-adjusted profit up 17% Strong growth in number of Gold and Private Banking customers Limited impact from market turmoil Outlook for 2007 unchanged 24
Slide 25: Disclaimer
Disclaimer Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or