Slide 1: Presentation for Investors
Nordea ” Presentation for Investors 22 October 2002
Slide 2: Contents
Contents l Summary presentation Q3/02 Page 3 l Nordea Page 43 l Integration Page 54 l Business areas Page 62 l Balance sheet Page 103 l Credit quality Page 110 l Economic capital Page 127 l Appendix Page 147 2
Slide 3: Summary presentation Q3/02
Summary presentation Q3/02
Slide 4: Stable overall development
Stable overall development l Operating profit EUR 399m, up 18% compared to second quarter l Total income EUR 1,406m, down 1% on second quarter, showing growth in net interest income and reduced commission income l Total expenses unchanged compared to second quarter l Loan losses EUR 66m (EUR 56m) co
Slide 5: Increased focus and speed
Increased focus and speed l Lars G Nordström appointed new Group CEO l Changed composition of Group Executive Management l New Unit, Group Processing and Technology, established to coordinate and speed-up the integration and unification to improve efficiency 5
Slide 6: Continuous improvements of performance will be given top priority going forward
Continous improvements of performance will be given top priority going forward l Credit portfolio – stable quality l Capital markets exposure – reduced volatility l Cost efficiency – improvement needed l Capital efficiency – strengthening the balance sheet 6
Slide 7: Key figures
Key figures EUR Earnings per share % Return on equity (excl. goodwill) 0,10 12 10 0,08 8 0,06 6 0,04 4 0,02 2 0,00 0 Q2/02 Q3/02 Q2/02 Q3/02 7
Slide 8: Earnings per share – 12 months rolling
EUR 8 0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 19 99 Q 1/ 20 00 Q 2/ 20 00 Q 3/ 20 00 Q 4/ 20 00 Q 1/ 20 01 Q 2/ 20 01 Q 3/ 20 01 Q 4/ 20 01 Earnings per share – 12 months rolling Q 1/ 20 02 Q 2/ 20 02 Q 3/ 20 02
Slide 9: Market development – stock market indexes
Market development – stock market indexes % 10 5 0 -5 -10 -15 -20 -25 -30 Q1/02 Q2/02 Q3/02 Copenhagen Helsinki Oslo Stockholm Nasdaq Dow Jones 9
Slide 10: Market development – interest rates
Market development – interest rates % 30-06-02 30-09-02 Change Short, EUR (one week) 3.39 3.33 -0.06 Long, EUR (5 years) 4.67 3.59 -1.08 Short, DK 3.67 3.53 -0.14 Long, DK 4.96 3.95 -1.01 Short, NO 6.86 7.15 0.29 Long, NO 6.70 6.02 -0.68 Short, SE 4.38 4.38 0 Long, SE 5.18 4.52 -0.66 10
Slide 11: Income statement summary
Income statement summary EURm Q3/02 Q2/02 Change, % Income 1,406 1,425 -1 Expenses -925 -922 0 Loan losses -66 -56 18 Equity method 4 17 Profit before inv. earnings and insurance 419 464 -10 Investment earnings, banking 39 31 Operating profit, Life Insurance -13 -26 Operating profit, General Insuran
Slide 12: Income statement summary
Income statement summary Jan-Sept Jan-Sept Change, Change %,adj EURm 2002 2001 % Postgirot Bank Income 4,213 4,207 0 -6 Expenses -2,752 -2,488 11 1 Loan losses -185 -317 -42 Equity method 36 60 Profit before inv. earnings and insurance 1,312 1,462 -10 -13 Investment earnings, banking 81 146 Operatin
Slide 13: Net interest income
Net interest income EURm 1000 l Higher lending and deposit volumes 800 856 852 855 874 837 l Short-term interest rates slightly reduced 600 l Overall stable margins 400 200 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 13
Slide 14: Commission income
Commission income EURm 500 371 l Fall in equity markets 44 45 32 42 400 – Reduced fees from asset 25 87 91 84 86 mgmt and brokerage 84 46 55 38 300 76 183 l AuM decreased by 7% 56 157 189 139 200 130 l Payment commissions continued to increase 100 115 126 115 104 101 0 -77 -79 -77 -83 -85 -100 Q3/01
Slide 15: Expenses
Expenses EURm 1000 925 l In line with previous quarter 399 408 404 419 l Somewhat lower activity during 800 354 the quarter l One-off costs of EUR 13m - 600 redundancies in Nordea 506 514 521 Securities 467 482 400 200 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Personnel Other 15
Slide 16: Loan losses
Loan losses EURm 225 l 0.18% of total loans annualised 200 100 l General provision reduced by EUR 175 16m 150 l Largest provision within fish farming 125 l Unchanged country risk reserve 100 113 75 50 63 66 56 56 25 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 General provision 16
Slide 17: Income statement summary
Income statement summary EURm Q3/02 Q2/02 Change, % Profit before inv earnings and insurance 419 464 -10 Investment earnings, banking 39 31 Operating profit, life insurance -13 -26 Operating profit, general insurance -4 -87 Goodwill depreciation -42 -44 Operating profit 399 338 18 Allocation to pens
Slide 18: Capital markets’ exposure
Capital markets’ exposure l Life Insurance l Group Treasury l Pension commitments 18
Slide 19: Life Insurance
Life Insurance l Reduced equity exposure l One line consolidation following sale of General Insurance l Change of principles at Group level 19
Slide 20: Life - risk management
Life - risk management l Equity holdings reduced to 17% of total investments as per end of September l As per mid-October, equity holdings decreased to 15% l Equity exposure reduced through derivatives – Major part of the Danish equity expsoure is hedged up to year-end by means of collar 20
Slide 21: Life - investments
Life - investments EURbn. End of period 25 21.2 l Equity holdings reduced during latter 20 part of Q3 15 l Further reduced in Q4 10 l Equities 5 – Predominantly listed equities 0 – 50/50 Nordic/international l Bonds ct 01 01 02 02 02 ¾ Nordic issuers O – 3/ 4/ 1/ 2/ 3/ 15 Q Q Q Q Q – Primarily govmn
Slide 22: Life - asset allocation
Life - asset allocation Total, EURbn Equities, % End of period 15/10 Q3/02 Q2/02 15/10 Q3/02 Q2/02 Denmark 10.0 10.0 10.2 23 23 28 Finland 5.2 5.2 5.2 15 15 18 Norway 3.4 3.2 3.2 5 15 20 Sweden 2.3 2.4 2.6 0 6 16 Total 20.8 20.8 21.2 15 17 23 22
Slide 23: Life - financial buffers
Life - financial buffers* End of September 2002 % of guaranteed EURm liabilities Denmark 335 3.7 Finland 136 3.4 Norway 5 0.2 Sweden 32 2.2 Total 508 2.9 * Financial buffers are defined in accordance with local regulations and practices. 23
Slide 24: Life - solvency situation
Life - solvency situation End of September 2002 Required Actual Solvency Solvency in % of EURm solvency solvency buffer requirement Denmark 85 103 20 124 Finland 186 434 249 234 Norway* 129 202 73 157 Sweden* 61 81 20 134 *Excluding unit linked companies 24
Slide 25: Life - risk management - solvency sensitivity
Life- risk management - solvency sensitivity 15 October 02 % Solvency ratio Equity prices sensitivity* Denmark 117 20.1 Finland 226 12.2 Norway 157 46.6 Sweden 102 n.a. l Equity exposure has been significantly reduced. l Reduced solvency in Sweden due to interest rate increase *Drop in equity prices
Slide 26: Life – operating profit
Life – operating profit EURm End of period Q3/02 Q2/02 Q1/02 Operating profit, reported Q3 -13 -26 -3 Previous Commission income -5 -4 Income from insurance -2 37 Total income -7 33 Personnel expenses -13 -16 Other expenses -17 -13 Total expenses -30 -29 Investment earnings -12 0 Operating profit -4
Slide 27: Life - changes in Group accounting principles
Life - changes in Group accounting principles l Group Accounting Policies for assets – All Life assets are valued at market value in the Group Balance Sheet – Difference between portfolio market value and acquisition cost is allocated into financial buffers. P&L effect will occur if portfolio market
Slide 28: Life - breakdown of operating profit
Life - breakdown of operating profit EURm Q3/02 Q2/02 Normalised operating margin 126 51 Fluctutations compared to normalised -435 -545 investment return Chg in discount rate for life provisions -277 -94 Allocation to policy-holders -6 -11 Allocation from financial buffers 579 570 Operating profit U
Slide 29: Group Treasury
Group Treasury l Group Treasury is managing the Group’s own direct investments in the financial markets and the market and liquidity risk in the banking book l The activities divided in three areas: – Active risk taking – Benchmark – Other equities 29
Slide 30: Group Treasury – active risk taking
Group Treasury – active risk taking l Activities – Tactical asset allocation – Security selection relative to benchmark – Relative value positions – Danish and Swedish mortgage bonds l Market views based on combination of own view on macro, investor positioning and geopolitical developments l Many s
Slide 31: Group Treasury – benchmark
Group Treasury – benchmark l Fixed income and equities l Approved in GEM/ALCO based on strategic asset allocation input from Group Treasury l Calendar year view with (minimum) quarterly updates l Exposure has been / are low reflecting the risk / reward in the financial market and maintaining a low v
Slide 32: Group Treasury - investments
Group Treasury - investments EURbn. End of period 20 l Equities 14.7 15 – Listed, unlisted & private equity funds 10 l Bonds – ¾ Nordic issuers 5 – Primarily govmn´t & mortgage inst. 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Fixed income Equities 32
Slide 33: Pension commitments
Pension commitments l Part of pension commitments in Finland and Sweden not recognised in balance sheet - fully covered in pension funds l Volatility in results related to Swedish pension fund l Finnish fund surplus at high level l Swedish fund made regular refunds of surplus in previous years 33
Slide 34: Pension commitments – financial structure in Finland and Sweden
Pension commitments – financial structure in Finland and Sweden EURm Finland Sweden End of period 18 Oct Q3/02 Q2/02 18 Oct Q3/02 Q2/02 Assets 584 569 624 698 686 671 -of which contributions during the period - - - - 96 146 Pension commitments 539 537 533 687 686 671 Surplus 45 33 91 11 0 0 Equity e
Slide 35: Pension commitments
Pension commitments l In Q3, Swedish fund – Declining equity values caused further deficit of EUR 78m – Increased liabilities and wage tax EUR 42m – Total allocation EUR 120m l Equity exposure significantly reduced – mid October 22 percent in Sweden l New benchmarks and investment policies establish
Slide 36: Balance sheet - key items
Balance sheet - key items EURbn, end of period Sept 02 Dec 01 Change,% Lending 147 138 7 Deposits 91 83 10 Shareholders’ equity 12 12 0 Total assets 252 242 4 Risk-weighted assets 137 136 1 36
Slide 37: Capital adequacy
Capital adequacy Tier 1 ratio Total capital ratio % % 10 10 9 9 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 Q2/02 Q3/02 Q2/02 Q3/02 37
Slide 38: Repurchase of own shares
Repurchase of own shares l During the third quarter 40 million shares repurchased under the repurchase program announced on 19 June 2002 l Average price SEK 43.50 l In April 2001 17 million shares acquired for the purpose of achieving a hedge regarding incentive programme l Total holding of own shar
Slide 39: Capital efficiency – strengthening the balance sheet
Capital efficiency – strenghtening the balance sheet Focus on strengthening balance sheet l Aim to reduce economic capital – risk weighted assets l Prioritisation of performance and profitability before growth l Sale of General Insurance and other non-core assets l Reduce aggregate capital markets e
Slide 40: Cost efficiency – improvement needed
Cost efficiency – improvement needed l Special attention to overall cost development – strict cost control l Further integration of business activities and processes l Reprioritisation of integration and development projects to adapt to current market conditions l Level of IT costs under considerati
Slide 41: Outlook - Q4/02
Outlook - weak development in capital markets, key macro indicators revised downwards Q4/02 outlook l Stable business volume l Revenues in line with average quarterly level this year l Expenses somewhat higher than average level l Loan losses of the same magnitude as in Q3 41
Slide 42: Outlook - 2003
Outlook - weak development in capital markets, key macro indicators revised downwards 2003 outlook l Potential for increased revenues considered limited l Increase in short-term interest rates not expected until late 2003 l Sharp attention on cost control l Uncertainty in the global economy may lead
Slide 43: Nordea
Nordea
Slide 44: Our vision
Our mission: ‘Making it possible’ By providing a broad set of easily accessible and competitive financial services and solutions Nordea helps customers where we operate to reach their objectives. Our vision We will be valued as the leading financial services group in the Nordic and Baltic financial
Slide 45: Strategic direction
Strategic direction Sustainable growth of economic profit Ensure Establish a stable and operational excellence and Optimise risk taking and broadly based growth of cost efficiency in all use of capital income processes Attract, develop and retain highly motivated, competent and empowered employees 4
Slide 46: Stable and broadly based growth of income
Sustainable growth of economic profit Stable and broadly based growth of Establish a stable and broadly Ensure operational excellence and Optimise risk taking and use of income based growth of cost efficiency in capital income all processes Attract, develop and retain highly motivated, competent and
Slide 47: Focus on cost efficiency
Sustainable growth of economic profit Focus on cost efficiency Ensure Establish a stable operational Optimise risk and broadly excellence and taking and use of based growth of cost efficiency in capital income all processes Attract, develop and retain highly motivated, competent and empowered employ
Slide 48: Capital efficiency
Sustainable growth of economic profit Capital efficiency Establish a stable and broadly based growth of Ensure operational excellence and cost efficiency in Optimise risk taking and use of capital income all processes Attract, develop and retain highly motivated, competent and empowered employees Fo
Slide 49: Financial targets
Financial targets Key performance indicator Jan-Sept 2001 Target 2002 Total shareholder return,% -31.1 -19.8 In the top five of our peer group Dividend pay-out ratio,% 44 1) > 40 % of net profit Return on equity,% 10.0 2) 13.8 > Euro risk free interest rate +8% Assets under management growth,% -11.4
Slide 50: European banks by market cap
European banks by market cap HSBC RBOS UBS LLOYDS TSB BARCLAYS HBOS DEUTSCHE BANK BNP PARIBAS SANTANDER BBVA UNICREDITO FORTIS ABN AMRO SOCIETE CREDIT SUISSE CREDIT AGRICOLE ABBEY NATIONAL STD CHARTERED DANSKE BANK NORDEA ALLIED IRISH BANKS SAN PAOLO IMI CREDIT LYONNAIS DEXIA INTESA BCI 0 10 20 30 4
Slide 51: 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 10,600 Sweden Branch offices 267 Helsinki Personnel 8,500 Bergen Stockholm St Petersburg Norway Oslo Tallinn Tartu Branch offices 147 Copenhagen Gdynia Riga Personnel 4,400 Vilnius Moscow Ham
Slide 52: 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 4,260 60 9,500 Corporate customers 80 330 65 460 10 950 Life insurance customers (1,000) 650 260 230 430 70 1,640 Net banking customers (1,000) 41
Slide 53: Strong positions in most Nordic markets
Strong positions in most Nordic markets Corporate and Institutional Retail Banking Asset Management & Life Banking Customer lending, customer Corporate Equity dealing Investment funds Life and deposit and mortgage Banking pensions volumes premiums Denmark 2 1 2 2 2 Finland 1 1 1 2 1 Norway 2 1-2 6 4
Slide 54: Integration
Integration 54
Slide 55: 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 55
Slide 56: 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 56
Slide 57: 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 58: Second wave of integration
Second wave of integration l Consolidated into 15 main projects of which 7 are under execution l Requiring 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 Q3 was EUR
Slide 59: 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 59
Slide 60: Realised Synergies
Realised Synergies Realised Realised Realised Target EURm 2000 2001 2002* Cost Revenue Total Initial merger synergies CIB 20 98 123 92 32 124 Retail banking - 20 27 35 47 82 Other business areas** 3 9 33 20 51 71 IT - 29 42 55 - 55 Treasury - 21 17 - 15 15 Other group functions - - - 13 - 13 Total i
Slide 61: 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 Utilised Q3/02 -15 Remaining reserv
Slide 62: Business areas
Business areas 62
Slide 63: Results by business area
Results by business area EURm 500 400 440 430 300 200 100 127 126 23 15 21 31 0 -26 -13 -100 -200 Retail CIB Asset Mgmt Life Treasury Q2/02 Q3/02 63
Slide 64: Retail Banking
Retail Banking 64
Slide 65: Retail Banking operating profit
Retail Banking operating profit EURm 500 l Profitability at a high level, 450 return on equity 24% 440 430 400 425 420 l Reductions in personnel and 350 366 cost/income ratio 300 l Increased volumes 250 200 l Tender offer for remaining 150 shares in LG Petro Bank 100 50 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/
Slide 66: Retail Banking operating profit by markets
Retail Banking operating profit by markets Retail DK FI NO SE P&B EURm Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Net interest income 785 774 202 211 224 222 113 107 239 228 7 6 Non-interest income 327 362 74 88 88 76 48 41 113 125 4 5 Total income 1,112 1,136 276 299 312 298 161 148 352 353 11 11 Total ex
Slide 67: Retail Banking lending
Retail Banking lending EURbn. End of period 40 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Q2/02 Q3/02 67
Slide 68: Retail Banking deposits
Retail Banking deposits EURbn. End of period 25 20 15 10 5 0 Denmark Finland Norway Sweden Q2/02 Q3/02 68
Slide 69: Retail Banking deposits
Retail Banking deposits EURbn End of September 25 20 9.0 4.3 15 2.3 5.9 10 6.4 6.1 1.1 3.2 5 8.3 6.1 6.2 5.3 0 Denmark Finland Norway Sweden Corporate Personal customer - saving accounts 69 Personal customer - current accounts
Slide 70: Retail Banking, volumes and margins
Retail Banking, volumes and margins Volumes Margins EURbn Q3/02 Q2/02 Q3/02 Q2/02 Lending to corporates 51.0 51.1 1.2% 1.2% Lending to personal customers 51.2 49.7 1.6% 1.7% Total lending 102.1 100.8 1.4% 1.5% Deposits from corporates 22.7 22.0 1.3% 1.3% Deposits from personal customers 37.2 36.3 2.
Slide 71: E-banking & Cards
E-banking & Cards 71
Slide 72: E-banking customers
Ja 1 1,5 2 2,5 3 3,5 n- 72 Mill. 00 M ay -0 Se 0 pt -0 0 Ja n- 01 M ay -0 Se 1 pt -0 1 Ja E-banking customers n- 02 M E-banking customers ay -0 Se 2 pt -0 2 Ja 0 50 100 150 200 250 300 350 n- 00 M Thousands ay -0 Se 0 pt -0 0 Ja n- 01 M ay -0 Se 1 pt -0 1 Ja n- Equity trading customers 02 M ay -0 Se
Slide 73: 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 00 00 01 01 02 02 00 00 01 01 02 02 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ 1/ 3/ Q Q Q Q Q Q Q Q Q Q Q Q Denmark Finland Norway Sweden Denmark Finland Norway Sweden 73
Slide 74: Penetration on the net
Ja 0 5 10 15 20 25 n- % 74 01 M ar -0 M 1 ay -0 Ju 1 ly - S 01 ep t- 0 1 N ov -0 1 Ja n- 0 M 2 ar -0 M 2 ay -0 Ju 2 ly Penetration on the net Mutual funds penetration rate -0 S 2 ep -0 2 Ja % 0 10 20 30 40 50 60 70 n- 0 Ap 0 ril -0 0 Ju ly -0 0 O ct -0 0 Ja n- 0 Ap 1 ril -0 1 Ju ly -0 1 O Executed t
Slide 75: Cards
Cards Card payments Debit and credit cards Mill. Mill. 35 4,0 30 3,5 3,0 25 2,5 20 2,0 15 1,5 10 1,0 5 0,5 0 0,0 2 01 02 2 01 1 -0 -0 -0 1 01 02 2 - 01 02 n- n- ay ay pt pt -0 -0 Ja Ja Se Se M M - n- n- - pt ay pt ay Ja Ja Se Se M M 75 Debit cards
Slide 76: Corporate and Institutional Banking (CIB)
Corporate and Institutional Banking (CIB) 76
Slide 77: CIB operating profit
CIB operating profit EURm 160 l Operating profit stable 140 142 120 132 127 l Reasonable deal flow in weak 126 100 market 80 l Credit portfolio continued to 60 perform satisfactorily 40 20 0 -5 -20 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 77
Slide 78: Stock market development
Stock market development Market Volume Market index Q3 2002, Change Q3 vs Q2, % Q3 2002, % EURbn Denmark 12.8 -23.3 -21.9 Finland 39.0 -17.7 -14.2 Norway 10.6 -14.4 -25.5 Sweden 52.6 -24.3 -26.4 Nordic average -21.2 -22.0 Source: Nordea securities 78
Slide 79: CIB operating profit by main area
CIB operating profit by main area Corporate Shipping & Inter- Inv. Banking Other CIB Division Offshore national Markets* EURm Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Q3 Q2 Total income 308 284 167 162 41 37 44 38 28 26 28 20 113 112 Total expenses -174 -170 -64 -77 -6 -9 -27 -22 -35 -35 -42 -27 -52 -51
Slide 80: CIB net loan losses
CIB net loan losses EURm Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 Corporate division 9 13 16 33 33 Shipping division 1 -9 6 9 9 International division 6 -2 -4 4 6 Acquisition finance 21 0 -2 21 41 Total 37 2 16 67 89 General provision -26 -10 - -39 75 Transfer risk -1 -7 2 -17 -11 Total 10 -15 18 11 153 80
Slide 81: CIB lending volume
CIB lending volume EURbn. End of period 30 25 20 15 10 5 0 Corporate Division Shipping and International Total offshore Q2/02 Q3/02 81
Slide 82: Asset Management & Life
Asset Management & Life
Slide 83: Asset Management, product result
Asset Management, product result EURm 60 l AuM down by 7% in negative 55 56 50 50 49 market environment 40 l Increased focus and cost 35 reduction in Investment Mgmt 30 20 10 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 83
Slide 84: Assets under management, volumes
Assets under management, volumes EURbn End of September 120 100 80 60 40 20 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Investment management Private banking Investment funds Real estate within Life 84
Slide 85: Asset structure – Investment Management
Asset structure – Investment Management* June 2002 September 2002 EUR 68bn EUR 63bn Int'l. fixed Int'l. fixed income income 14% 12% Nordic Nordic Nordic fixed equities equities income 14% 16% 43% Nordic fixed income 53% Int'l. Int'l. equities equities 21% 27% 85 *Including mgmt of own investment fun
Slide 86: Asset structure – Investment Funds
Asset structure – Investment Funds June 2002 September 2002 EUR 34.2bn EUR 30.4bn Balanced Balanced funds funds 14% 13% Fixed Equity income funds funds 47% 47% Fixed Equity income funds funds 40% 39% 86
Slide 87: Investment Funds volumes and margins
Investment Funds volumes and margins EURbn Volumes, end of period % Margins 18 1,6 16 1,4 14 1,2 12 1,0 10 0,8 8 0,6 6 4 0,4 2 0,2 0 0,0 DK FI NO SE DK* FI NO SE Q2/02 Q3/02 Q2/02 Q3/02 * Net margin 87
Slide 88: European Fund distribution
European Fund distribution EURm 1800 l Nordea ranked among top 5 European 1600 cross-border fund managers 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 – 14% fr
Slide 89: Operating profit, Life Insurance
Operating profit, Life Insurance EURm 50 l Reduction of risk exposure 40 l Equity holdings reduced to less 30 than 10% 20 l Equity holdings in Swedish 10 operations reduced to zero 0 4 -3 -13 l Solvency robust in case of -10 -26 further equity market declines -20 -49 -30 -40 -50 Q3/01 Q4/01 Q1/02 Q2
Slide 90: Life – operating profit
Life – operating profit EURm Q3/02 Q2/02 Q1/02 Operating profit, reported Q3 -13 -26 -3 Previous Commission income -5 -4 Income from insurance -2 37 Total income -7 33 Personnel expenses -13 -16 Other expenses -17 -13 Total expenses -30 -29 Investment earnings -12 0 Operating profit -49 4 Change of
Slide 91: Life - breakdown of operating profit
Life - breakdown of operating profit EURm Q3/02 Q2/02 Normalised operating margin 126 51 Fluctutations compared to normalised -435 -545 investment return Chg in discount rate for life provisions -277 -94 Allocation to policy-holders -6 -11 Allocation from financial buffers 579 570 Operating profit U
Slide 92: Life
Life EURm Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 TRADITIONAL LIFE Premiums written net 381 486 559 589 367 Normalised investment. return 285 239 239 288 279 Benefits paid and change in provision -511 -642 -704 -889 -555 Insurance operating expenses -29 -31 -31 -29 -26 Normalised operating margin 126 52 63 -4
Slide 93: Life
Life EURm Denmark Finland Norway Sweden Other Total TRADITIONAL LIFE Premiums written net 156 141 53 29 3 381 Normalised investment. return 128 49 76 24 8 285 Benefits paid and change in provision -248 -168 -57 -35 -2 -511 Insurance operating expenses -10 -3 -8 -3 -5 -29 Normalised operating margin
Slide 94: Life - investments
Life - investments EURbn. End of period 25 21.2 l Equity holdings reduced during latter 20 part of Q3 15 l Further reduced in Q4 10 l Equities 5 – Predominantly listed equities – 50/50 Nordic/international 0 l Bonds – ¾ Nordic issuers ct 01 01 02 02 02 Primarily govmn’t & mortgage inst. O – 3/ 4/ 1/
Slide 95: Life - financial buffers
Life - financial buffers* End of September 2002 % of guaranteed EURm liabilities Denmark 335 3.7 Finland 136 3.4 Norway 5 0.2 Sweden 32 2.2 Total 508 2.9 * Financial buffers are defined in accordance with local regulations and practices. 95
Slide 96: Life - solvency situation
Life - solvency situation End of September 2002 Required Solvency Solvency in % of Actual solvency EURm solvency buffer requirement Denmark 85 103 20 124 Finland 186 434 249 234 Norway* 129 202 73 157 Sweden* 61 81 20 134 *Excluding unit linked companies 96
Slide 97: General Insurance – operating profit
General Insurance – operating profit EURm End of period Q3/02 Q2/02 Q1/02 Operating profit, General Insurance -4 -87 -31 Previous Income from insurance 97 77 Total income 97 77 Personnel expenses -74 -63 Other expenses -41 -38 Total expenses -115 -101 Investment earnings -29 -7 Loss sale of General
Slide 98: Group Treasury
Group Treasury 98
Slide 99: Group Treasury operating profit
Group Treasury operating profit EURm 40 38 l Volatile financial markets 35 35 30 l Positive active risk taking 31 25 20 21 21 15 10 5 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 99
Slide 100: Group Treasury
Group Treasury l Group Treasury is managing the Group’s own direct investments in the financial markets and the market and liquidity risk in the banking book l The activities divided in three areas: – Active risk taking – Benchmark – Other equities 100
Slide 101: Group Treasury operating profit by main areas
Group Tresury operating profit by main areas Investment & Risk Trading Group Funding Total Fixed income Equity portfolios portfolios EURm Q3/02 Q2/02 Q3/02 Q2/02 Q3/02 Q2/02 Q3/02 Q2/02 Income - - 64 31 -46 -31 26 32 Expenses - - -3 -3 -1 -1 -9 -7 Profit excl. Investment earnings 17 25 - - - - 25 25
Slide 102: Group Treasury investment portfolio
Group Treasury investment portfolio EURbn. End of period 20 l Equities 14.6 15 – Listed, unlisted & private equity funds 10 l Bonds – ¾ Nordic issuers 5 – Primarily govmn´t & mortgage inst. 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Fixed income Equities 102
Slide 103: Balance Sheet
Balance Sheet 103
Slide 104: Balance sheet - key items
Balance sheet - key items EURbn, end of period Sept 02 Dec 01 Change,% Lending 147 138 7 Deposits 91 83 10 Shareholders’ equity 12 12 0 Total assets 252 242 4 Risk-weighted assets 137 136 1 104
Slide 105: Balance sheet structure - assets
Balance sheet structure - assets EURbn. End of period 150 147 138 120 90 60 30 33 30 24 24 22 26 21 16 7 6 0 Lending Interest Loans and Assets, Other assets, Other bearing advances to insurance banking securities credit inst. 31-12-2001 30-09-2002 105
Slide 106: Real estate holdings
Real estate holdings Book value, end of period, EURbn Q3/02 2001 2000 1999 Owner occupied properties 1.3 1.5 1.4 1.4 Non owner occupied properties 0.2 0.3 0.6 2.1 Shares in real estate holding 0.3 0.3 0.4 0.4 companies Investments of the insurance 1.8 2.0 1.6 1.6 companies Total 3.6 4.1 4.0 5.5 106
Slide 107: Balance sheet structure – liabilities and equity
Balance sheet structure – liabilities and equity EURbn. End of period 100 90 91 80 83 70 60 65 61 50 40 30 30 31 20 26 22 22 19 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 30-09-200
Slide 108: Lending and deposits
Lending and deposits Lending Deposits EURbn. End of period EURbn. End of period 160 100 140 147 91 138 142 143 80 86 90 120 134 81 83 100 60 80 60 40 40 20 20 0 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 108
Slide 109: Capital base
Capital base EURm End of Sept 2002 Shareholder´s equity 11,545 Profit Q3 -205 Deductions insurance companies and other -111 Shareholder´s equity in the capital base 11,229 Hybrid capital 390 Minority interests 18 Group goodwill -2,055 Other deductions -56 TIER 1 CAPITAL 9,526 TIER 2 CAPITAL (subordi
Slide 110: Credit quality
Credit quality 110
Slide 111: Loan portfolio by customer group
Loan portfolio by customer group End of September 2002 EUR 147bn Public sector 2% Personal customers 38% Companies 60% 111
Slide 112: Lending to personal customers
Lending to personal customers End of September 2002 EUR 56bn Other loans comprise: Other loans l Consumer credits 25% l Investment credits l Car financing l Overdraft facilities l Credit cards Housing loans 75% 112
Slide 113: Lending to companies by industry
Lending to companies by industry End of September 2002 EUR 88 bn Shipping & Agriculture & offshore fishing 4% 5% Real estate Other companies 26% 10% Renting, consulting and other services 10% Construction 4% Transport, Finance communication 10% 4% Commerce and Manufacturing services 17% 10% 113
Slide 114: Loan portfolio
Loan portfolio End of period EUR bn Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 Personal customers 56 55 52 51 50 Real estate 23 22 22 20 19 Construction 3 3 3 3 3 Transport, communication 3 4 4 4 4 Commerce and services 9 9 8 9 8 Manufacturing 15 15 16 16 16 Finance 9 8 7 7 7 Business service 9 8 9 9 8 Other com
Slide 115: 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 * Only updated every
Slide 116: Transfer risk exposure, EURm
Transfer risk exposure, EURm End of September 2002 Asia 848 Latin America 374 -of which China 342 -of which Brazil 215 South Korea 106 Mexico 56 Indonesia 43 Chile 40 Panama 26 Argentina 3 Middle East 373 -of which Iran 104 Turkey 72 116
Slide 117: Nordea telecom financing portfolio
Nordea telecom financing portfolio Divided by operators and manufacturers End of September 2002 Total exposure approx EUR 6.5 bn Manu- facturers l Total outstanding EUR 3.9bn 35% l Majority of exposure related to – major Nordic equipment manufacturers – major Nordic telecom operators Operators 65% 1
Slide 118: 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 119: Impaired loans
Impaired loans EURm End of period Sept 02 June 02 March 02 Dec 01 Sept 01 Impaired loans, gross 3,136 3,180 3,132 3,114 3,120 Provisions -2,290 -2,305 -2,291 -2,259 -2,267 Of which: Specific provisions -1,834 -1,836 -1,839 -1,803 .. Appraised by category -79 -79 -82 -92 General provisions -377 -390
Slide 120: Impaired loans, net
Impaired loans, net End of September 2002 EUR 846m Other companies Households 22% customers 25% Agriculture and fishing 3% Construction 2% Real estate management Manufacturing 13% 11% Shipping Transport 4% 2% Renting, consulting and other company Trade & services servicies 5% Financial operations 10
Slide 121: Loan losses Q3
Loan losses Q3 EURm 400 361 l 0.18% of total loans annualised 321 300 l General provision reduced by 213 184 181 EUR 16m 200 168 l Largest provision within fish 100 56 63 56 66 farming 0 l Unchanged country risk reserve -100 -105 -115 -128 -148 -200 -300 -264 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Gross Reve
Slide 122: Comments on certain industries
Comments on certain industries Real estate l Vacancy increasing from very low levels 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 1
Slide 123: Comments on certain industries
Comments on certain industries Telecom l Operators’ profitability declining due to increased competition and burden of non-productive assets l Handsets keeping up fairly well as new applications introduced l Delayed investments in 3G affect equipment suppliers and subcontractors l Consolidation in t
Slide 124: Comments on certain industries
Comments on certain industries Aircraft Finance l Stabilising after last years shock effect l Capacity heavily reduced, improved utilisation rates l US and cross-atlantic operators still suffering l Nordic operators show ability to adjust to new market conditions l The industry would be badly hit by
Slide 125: Comments on certain industries
Comments on certain industries Shipping l Slower economic growth generally affects the industry negatively l Container ships worst hit, but also tanker rates considerable down l Industrial shipping doing reasonably well l Cruising picking up after last autumn l Nordea´s exposure well diversified wit
Slide 126: 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 127: Economic capital
Economic capital 127
Slide 128: Economic capital
Economic capital l 6 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 129: Economic capital per business area
Economic capital per business area End of September 2002 EUR 9.9bn l Reduced overall risk Other Treasury 7% l Economic capital reduced by EUR 5% 1.1bn in 2002 Asset Mgmt & Life l General Insurance sold 11% Retail 53% CIB 24% 129
Slide 130: Distribution of economic capital - by risk category
Distribution of economic capital - by risk category End of September 2002 Business risk Insurance 9% 1% Operational 9% Real Estate 8% Credit Market 61% 12% 130
Slide 131: Appendix
Appendix l Market shares Page 132 l Financials Page 147 l Nordea share Page 157 l Other Page 164 l Macro statistics Page 169 131
Slide 132: Appendix - Market shares
Appendix l Market shares *Statistics from Sweden delayed due to technical problems in the Swedish central bank (updated as of June) 132
Slide 133: 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 June-Aug 02 133
Slide 134: Personal customer deposits - market volume & share
Personal customer deposits - market volume & share DKKbn Denmark EURbn Finland 40% 28% 50 400 38% 26% 40 300 36% 24% 30 200 22% 20 34% 100 20% 10 32% 0 18% 0 30% 00 01 n 00 n ay 01 e 1 01 02 01 r ar 01 02 01 c 00 p 02 c ep a n -ju u e -0 e e -m -m -ju -J v- v- -m -d -D g- g- -s -S b- b- aj 02 00 no
Slide 135: 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 June-Aug 02 135
Slide 136: Corporate deposits - market volume & share
136 no ju n- 0 100 200 300 v- 0 0 100 200 300 fe 99 se 0 DKKbn NOKbn b- p- m 00 0 aj de 0 - c- au 00 00 g- m no 00 ar v- -0 1 fe 00 ju b- n- m 01 0 aj se 1 - p- au 01 0 Norway Denmark g- de 1 no 01 c- v- 01 fe 01 m b- ar -0 02 02 2 -m ju au ay n- 02 g- Market volume 02 10% 12% 14% 16% 18% 20% 14% 16
Slide 137: Market shares, personal customer lending
Market shares, personal customer lending % 35 30 25 20 15 10 5 0 Denmark Finland Norway Sweden Feb-02 June-Aug 02 137
Slide 138: Personal customer lending - market volume & share
138 no ju n- 0 50 100 150 200 250 v- 0 0 100 200 300 400 500 600 fe 99 se 0 DKKbn NOKbn b- p- m 00 0 aj de 0 - c- au 00 00 g- m no 00 ar v- -0 1 fe 00 ju b- n- m 01 0 aj se 1 - p- au 01 0 Norway Denmark g- de 1 no 01 c- v- 01 fe 01 m b- ar -0 02 02 2 -m ju au ay n- 02 g- Market volume 02 6% 7% 8% 9%
Slide 139: 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 June-Aug 02 139
Slide 140: Corporate lending - market volume & share
140 ju no n- 0 50 100 150 200 250 300 350 v- 0 0 100 200 300 400 500 fe 99 se 0 DKKbn NOKbn b- p- 0 m 00 de 0 aj - c- au 00 00 g- m no 00 ar -0 v- 1 fe 00 ju b- n- 0 m 01 se 1 aj - p- au 01 0 Norway Denmark g- de 1 no 02 c- v- 01 m fe 02 ar b -0 02 -02 2 -m ju n- au ay 02 g- Market volume 02 10% 12%
Slide 141: Investment funds - market volume & share
Investment funds - market volume & share DKKbn Denmark EURbn Finland 32% 300 16 34% 30% 14 32% 250 28% 12 30% 200 10 28% 150 26% 8 24% 6 26% 100 4 24% 50 22% 2 22% 0 20% 0 20% 00 2 1 98 99 01 00 1 98 9 01 2 l-0 -0 -0 -9 -0 n- c- p- c- n- ar ju c- c- ar p p ju de de se ju m de de se se m NOKbn Norway
Slide 142: 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% 99 00 01 02 9 0 1 2 98 99 99 00 00 01 01 -9 -0 -0 -0 n- n- n- n- c- p- c- p- 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 143: Investment funds, net inflow, Norway
Investment funds, net inflow, Norway Market volume, Nordea volume, and accumulated market share ytd NOKm % 3 000 50 40 2 000 30 20 1 000 10 0 0 -10 -1 000 -20 -30 -2 000 -40 -3 000 -50 01 02 0 1 00 01 02 1 2 00 01 1 2 t-0 t-0 -0 -0 r-0 r-0 n- n- g- g- g- c- c- b b ok ok ap ap ju ju au de au de au fe
Slide 144: 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 ju 2 ju 1 au 02 d e 00 au 01 d e 01 ap 02 ap 01 no 0 fe 1 no 1 fe 2 ju 1 ju y se 02 se 01 m 01 m 02 ok 0 ja 0 m 01 ok 1 ja 1 02 0 2 02 0
Slide 145: 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 00 0 0 1 1 1 1 01 1 0 2 2 2 2 2 p- -0 n- -0 -0 l-0 p- -0 n- -0 -0 l-0 -0 o v ja ar aj ju o v ja ar a
Slide 146: Market share, equity dealing - Nordea Securities
Market share, equity dealing - Nordea Securities % Equity market turnover EURbn 18 Q3/02 Q2/02 Q2/01 16 Denmark 12.8 16.9 23 14 Finland 39.0 47.4 51 12 Norway 11.3 13.2 20 10 Sweden 54.6 72.1 116 8 6 4 2 0 en m ki o sl in ol ag O s h el ck nh H to e op S C 2001 Jan-Sept 2002 146
Slide 147: Appendix - Financials
Appendix l Financials 147
Slide 148: Expenses - breakdown
Expenses - breakdown EURm Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 Personnel 1) 523 515 506 484 469 Information technology 2) 111 113 103 107 94 Marketing 21 36 23 34 20 Postage, telephone and office expenses 50 52 60 54 45 Rents, premises and real estate expenses 79 74 71 81 72 Other 146 139 152 152 133 Expen
Slide 149: Key figures
Key figures C/I ratio, banking C/I ratio, banking, excl. inv. earnings % % 70 70 60 63 64 60 65 59 50 50 40 40 30 30 20 20 10 10 0 0 Q2/02 Q3/02 Jan-Sep 01 Jan-Sep 02 149
Slide 150: Total IT-related expenses
Total IT-related expenses* EURm 250 220 200 210 205 200 202 150 100 50 0 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 *Computer operations, service expenses, consultants and personnel 150
Slide 151: Operational income statement
Operational income statement EURm Q3/02 Q2/02 Q1/02 Q4/01 Q3/01 Net interest income 874 855 837 852 856 Commission income 371 396 380 379 322 Trading 127 137 136 128 131 Other 34 37 29 37 36 Income 1,406 1,425 1,382 1,396 1,345 Personnel expenses -521 -514 -506 -482 -467 Other expenses -404 -408 -39
Slide 152: Statutory income statement
Statutory income statement EURm Jan-Sept 2002 Jan-Sept 2001 Interest income 7,781 8,678 Interest expenses -4,985 -5,902 Net interest income 2,796 2,776 Dividends received 33 45 Net commission income 1,170 1,068 Net result from financial operations 177 258 Other income 129 213 Total income 4,304 4,36
Slide 153: Reconciliation of operational and statutory accounts
Reconciliation of operational and statutory accounts EURm Operational Trading Investment Insurance Other Statutory Jan-Sept 2002 income activities adjustment Jan-Sept 2002 Net interest income 2,566 163 1) 67 6) 2,796 Dividends received 33 9) 33 Net commission income 1,147 23 2) 1,170 Trading 400 5)
Slide 154: Reconciliation of operational and statutory accounts
Reconciliation of operational and statutory acounts 1. Net interest income from trading transactions in Nordea Markets (for 13. Pension adjustments accounted for according to Swedish regulations in example interest related to swaps etc.), reclassified as trading income in the statutory accounts. Rec
Slide 155: 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 156: 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 157: Appendix - Nordea share
Appendix l Nordea share 157
Slide 158: Nordea share price vs DJ Stoxx European banks
Nordea share price vs DJ Stoxx European banks 6 March 2000* - 10 October 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 158
Slide 159: Nordic bank shares, liquidity 2002
Nordic bank shares, liquidity 2002 EURm 2500 2000 1500 1000 500 0 Jan Feb March April May June July Aug Sept Danske Bank SEB FSPA Handelsbanken Nordea 159
Slide 160: Shareholder structure, September 2002
Shareholder structure, September 2002 4.0% 2.5% 6.1% 21.8% 8.0% International investors Swedish institutions Swedish government Danish institutions 9.1% Finnish institutions Finnish public Danish public Swedish public 29.9% 18.6% Number of shareholders approx 510,000 160
Slide 161: Largest registered shareholders
Largest registered shareholders September 2002 Shareholder Number of shares Percent Swedish state 542,015,102 18.55 % Alecta 113,635,626 3.89 % Nordea Danmark fonden 102,529,423 3.51 % Tryg i Danmark smba 92,609,801 3.17 % Robur fonder 91,890,155 3.14 % Nordea fonder 55,723,714 1.91 % SHB/SPP fonder
Slide 162: 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 163: Data per share
Data per share Q3/02 2001 2000 19991) 1998 EUR SEK SEK Dividend SEK 1.64 - 0.23 2.00 1.75 Shareholders equity per share, EUR 3.92 4.00 3.74 3.43 2.68 Earnings per share, EUR 0.07 0.53 0.58 0.55 0.53 Share price, end of period, 36.8 55.5 71.5 50 52 SEK P/E ratio - 11.3 14.0 10.6 11.0 163 1) Pro forma
Slide 164: Appendix - Other
Appendix l Other 164
Slide 165: 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 165
Slide 166: Business structure, October 1, 2002
Business structure, October 1, 2002 Board of Directors Internal Audit Activity Group CEO Lars G Nordström Group Management Secretariat Corporate and Asset Management & Group Processing and Group Corporate Retail Banking Group Staffs Institutional Banking Life Technology Centre Kari Jordan Peter Schü
Slide 167: Legal structure
Legal structure Nordea AB (Publ) Sweden Nordea Life Holding Nordea Bank Finland Nordea Securities AB Nordea Asset Nordea INS Holding AB 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 subsi
Slide 168: Group Executive Management, October 1, 2002
Group Executive Management, October 1, 2002 Lars G Nordström Group CEO Christian Clausen Head of Asset Management & Life Carl-Johan Granvik Head of Group Credit and Risk Control Kari Jordan Head of Retail Banking Arne Liljedahl Head of Group Corporate Centre, Group CFO Markku Pohjola Head of Group P
Slide 169: Appendix - Macro statistics and estimates
Appendix l Macro statistics and estimates Source: Nordea Economic Research Estimates from August 2002 169
Slide 170: Macro data
Macro data % 2001 2002e 2003e Gross domestic product DK 1.0 1.3 1.9 FI 0.7 1.5 3.5 NO 1.2 1.8 1.8 SE 1.2 1.9 2.6 Inflation DK 2.4 2.4 2.3 FI 2.7 2.2 1.8 NO 3.0 1.3 2.3 SE 2.6 2.3 2.1 Private consumption DK 0.8 2.3 2.3 FI 1.1 2.8 3.5 NO 2.5 3.3 2.2 SE 0.2 2.6 2.3 Unemployment DK 5.1 5.0 5.0 FI 9.1 9.
Slide 171: Market development - GDP
Market development - GDP % 2000 2001 2002e 2003e Denmark 3.0 1.0 1.3 1.9 Finland 0.6 0.7 1.5 3.5 Norway 2.3 1.2 1.8 1.8 Sweden 3.6 1.2 1.9 2.6 Source: Nordea Economic Research, August 2002 171
Slide 172: 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 172
Slide 173: Inflation
Inflation % 14 12 10 8 6 4 2 0 -2 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Denmark Finland Norway Sweden 173
Slide 174: 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 174
Slide 175: 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 175
Slide 176: Unemployment
Unemployment % of labour force 20 15 10 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 176 Denmark Finland Norway Sweden
Slide 177: 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 177
Slide 178: 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 178
Slide 179: Exchange rate, USD/Euro
179 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 -0 1- 0 4 -0 Exchange rate, USD/Euro 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 1- -02 10 -0 2
Slide 180: Exchange rate, Euro/SEK
180 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 1- 0 4 -0 1- 0 Exchange rate, Euro/SEK 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 1- -02 10 -0 2
Slide 181: Exchange rate, Euro/NOK
181 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 -0 1- 0 7 Exchange rate, Euro/NOK 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 1- -02 10 -0 2
Slide 182: Oilprice development, Brent, USD/Barrel
182 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 1- 1 -0 0 Oilprice development, Brent, USD/Barrel 1- 1 -0 1 1- 1 -0 2
Slide 183: Stock exchange indices
183 31 -1 - 0 200 400 600 800 1000 1200 1400 31 97 -5 - 30 97 -9 - 31 97 Index 100 = 1990 -1 - 31 98 HEX Index -5 - 30 98 -9 Oslo Total Index - 31 98 -1 - 31 99 -5 - 30 99 -9 - 31 99 Stock exchange indices -1 - 31 00 -5 - 30 00 -9 - 31 00 -1 - 31 01 KFX Index -5 - 30 01 -9 - 31 01 -1 - 31 02 -5 - Af
Slide 184: Money market, 3 months rates
184 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 1- Finland 1 -0 0 1- 5 -0 0 1- 9 Norway -0 0 1- 1 -0 Money market, 3 months rates 1- 1 5 Sweden -0 1 1- 9 -0 1 1- 1 -0 1- 2 5 -0 2 1- 9 -0 2
Slide 185: Government bond, 10 year
185 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 1- 9 Finland 1 -0 1- 0 4 -0 1- 0 7 1- -00 Government bond, 10 year Norway 10 -0 1- 0 1 -0 1- 1 4 -0 Sweden 1- 1 7 1- -01 10 -0 1- 1 1 -0 1- 2 4 -0 1- 2 7 1- -02 10 -0 2
Slide 186: Financial calendar 2002/2003
Financial calendar 2002/2003 l Capital Markets Day will be arranged on 18 November 2002 in London l Full year report 2002 will be published on 19 February 2003 l Q1 report 2003 will be published on 24 April 2003 l AGM will be held on 24 April 2003 l Q2 report 2003 will be published on 20 August 2003