Slide 1: Nordea results first quarter 2008
Nordea results first quarter 2008 Press conference 29 April 2008 Christian Clausen President and Group CEO
Slide 2: Growth strategy on track - income growth continued and profit before loan losses increased
Growth strategy on track - income growth continued and profit before loan losses increased Income EUR 1,961m (EUR 1,873m), up 5% Net interest income EUR 1,181m (EUR 1,004m), up 18% Risk-adjusted profit up 1% - up 5% adjusted for Eksportfinans Profit before loan losses EUR 906m (EUR 881m), up
Slide 3: Nordea has managed challenging market conditions also in the first quarter 2008
Nordea has managed challenging market conditions also in the first quarter 2008 Benefiting from a solid funding name, well diversified business profile and a strong balance sheet Conservative liquidity strategy in place since creation of Nordea Well diversified funding bases, Nordic, EU and US
Slide 4: Strong liquidity position
Strong liquidity position Net Balance of Stable Funding Excess of long-term funding compared to long-term assets with maturity longer than 6 months According to target set by ALCO net balance of stable funding should be positive Liquidity Buffer End March approx. EUR 20bn of stand-by liqui
Slide 5: Operating income up 5%
Operating income up 5% YoY Up 5% - excl. Eksportfinans up 6% Operating income, EURm Net interest income – up 18% Continued growth in both lending and deposit volumes 1 961 1 873 Higher corporate lending margins Increase supported by strong growth in New European Markets, incl. Russia Net
Slide 6: Cost increase in line with guidance
Cost increase in line with guidance Cost increase YoY Unchanged cost growth compared to 2007 Cost growth reflecting execution of growth 6,4% 6,4% strategy and related investments Staff costs up 10% following increased 4,5% business activity, investment in growth areas and wage inflation Tota
Slide 7: Profit before loan losses up 3%
Profit before loan losses up 3% Profit before loan losses, EURm 906 Growth strategy on track 881 Income growth continues to drive the profit increase – investments in growth areas delivers Strong momentum both in Nordic countries as well as in New European markets Q1/07 Q1/08 * 7
Slide 8: Strong and well diversified credit portfolio
Strong and well diversified credit portfolio Loan losses, EURm New provisions remained at an unchanged 151 126 101 141 level while the amount of recoveries has 98 decreased – all in line with guidance 21 Net loan losses EUR 21m -13 -13 -6 -28 The credit quality remains strong -129 -111 -120 -1
Slide 9: Bringing Nordea from Good to Great
Bringing Nordea from Good to Great Profit orientation - Cost, risk and capital Ambitious vision and targets Strong customer oriented values and culture Clear growth strategy 9
Slide 10: Ambitious vision and targets
Ambitious vision and targets Long term financial targets Target 2007 Q1/08 TSR (%) In the top quartile of # 3 of 20 # 8 of 20 European peer group Risk adjusted profit (EUR m)¹ Double in 7 years² 15% 16%³ RoE (%) In line with top Nordic peers 19.7% 15.8% Capital structure policy Policy Dividend payou
Slide 11: Total shareholder return (TSR)
11 -50 -45 -40 -35 -30 -25 -20 -15 -10 -5 0 % Société Générale Bank of Ireland HBOS RBS Allied Irish Banks UniCredit Barclays Swedbank 1/1 2007 – 31/3 2008 Commerzbank Erste Bank SEB Danske Bank Total shareholder return (TSR) BNP Paribas Intesa Sanpaolo SHB Lloyds TSB KBC DnBNOR Top quartile Santand
Slide 12: Sustained growth in Risk-adjusted profit
Sustained growth in Risk-adjusted profit Risk-adjusted profit growth, % Up 1% to EUR 584m compared to 16 same quarter last year and 5% when 15 excluding Eksportfinans 5 1 2007 Q1/08 Rolling four quarters compared w ith FY 2006 EUR 2,107m Grow th in risk-adjusted profit Q108/Q107 Grow th in risk-ad
Slide 13: Return on Equity (RoE)
Return on Equity (RoE) Return on Equity, % Lower RoE in Q1 Higher equity prior to dividend payout 19,7 17,6 * Slightly lower net profit following net loan 15,8 losses FY 2007 Q1/08 Nordea Average Nordic Peers (Danske Bank, SEB, SHB, Swedbank, DnBNOR) * Adjusted for one-off 13
Slide 14: A profitable organic growth strategy with clear initiatives
A profitable organic growth strategy with clear initiatives Selected global New European Existing Nordic customers and new customers and European Markets business lines Household strategy Private banking Corporate strategy Based on strong Selective growth competencies strategy • Migration to • Added
Slide 15: Proactive sales drives growth in premium segments
Proactive sales drives growth in premium segments Nordic Gold segment YoY 14% Gold segment continues to be the 7% main engine for profitable growth 7% 131 115 Successful penetration of the 54 51 customer base 2.4 2.3 7% increase in number of Gold customers 1/5 are new customers in Nordea I
Slide 16: Growth Plan Sweden on track
Growth Plan Sweden on track Income growth % Income in Nordic Banking Sweden 7% Improved market position 7 Focus on services and product segments 4 with strongest growth potential; long term savings, consumer loans, capital market products Q108/Q107 Nordea Nordic Banking Sweden Initiative con
Slide 17: Continued strong growth in Nordic Private Banking
Continued strong growth in Nordic Private Banking Growth success of Private Banking Nordic Private Banking segment YoY continued in first quarter 2008 7% 13% Number of customers up 13% YoY 14% 45 1,500 new customers in Q1, mainly in 80 42 Norway and Sweden 71 782 684 Assets under Management
Slide 18: High corporate customer activity
High corporate customer activity Total income corporate customers, Income from corporate customers up EURm 18% in Q1 Strong growth in corporate lending 897 continued in Q1 Increased lending market shares in the higher 759 segments of the corporate market Successful execution of customer team
Slide 19: Increased demand for Capital market products in corporate segment
Increased demand for Capital market products in corporate segment Total revenues in Capital Markets Customer driven demand for Capital related to Nordic Banking markets products continue to increase customers, EURm Continued success in advising corporate customers to hedge their 146 market risk
Slide 20: Strong business development in all segments within New European Markets
Strong business development in all segments within New European Markets Selective growth strategy on track New European Markets total 11 new branches opened in Poland in Q1 2008 income, EURm Continued prudent credit policies in New European 94 Markets enables Nordea to grow with stable credit
Slide 21: Outlook for 2008
Outlook for 2008 Accelerating turmoil in financial markets has increased uncertainty about growth in the real economy Despite a somewhat weaker macroeconomic outlook, Nordea experiences high customer activity in almost all areas Lending growth expected to be somewhat lower in the remaining par
Slide 22: Concluding remarks
Concluding remarks Growth strategy on track – income growth continued and profit before loan losses increased Nordea has managed challenging market conditions also in first quarter Strong funding and liquidity position High customer activity and continued strong growth in volumes Sustained