Nordea Bank AB

Investor Presentation • Jan 30, 2025

Fourth-quarter and full-year results 2024

Disclaimer

This presentation contains forward-looking statements that reflect management's current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forwardlooking statements as a result of various factors.

Important factors that may cause such a difference for Nordea include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels.

This presentation does not imply that Nordea has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

Fourth-quarter highlights 2024 Executive summary

Continued income growth

• Total income up 1%. Net interest income down 5%, net fee and commission income up 8% and net fair value result up 31%
• Operating profit up 4%, to EUR 1.5bn

RoE* 14.3% (14.1% Q423) and EPS EUR 0.32 (0.31 Q423). FY24 RoE 16.7% (16.9% FY23) and EPS EUR 1.44 (1.37 FY23)

Good growth in lending and deposit volumes and assets under management

• Mortgage lending up 6% y/y and corporate lending up 1%. Retail deposits up 5% y/y and corporate deposits up 8%. AuM up 11% y/y

Cost-to-income ratio with amortised resolution fees 48.9% (50.6% Q423)

Solid credit quality – net loan losses again below long-term expectation

• Net loan losses and similar net result EUR 54m or 6bp
• Management judgement buffer revised, reflecting reduced need and improved outlook

Continued strong capital generation; dialogue on new share buy-back programme initiated

• CET1 ratio 15.8% 2.2pp above current regulatory requirement
• Impact of Norwegian acquisition and share buy-backs offset by strong capital generation
• Dividend of EUR 0.94 per share proposed for 2024 increase of 2%

2025 outlook: return on equity to stay above 15%

Key financials Fourth-quarter results 2024

Income statement and key ratios EURm	Q424	Q423	Q4/Q4	Q324	Q4/Q3
Net interest income	1,854	1,946	-5%	1,882	-1%
Net fee and commission income	825	763	8%	774	7%
Net insurance result	69	40	73%	60	15%
Net fair value result	201	154	31%	284	-29%
Other income	6	12	-50%	14	-57%
Total operating income	2,955	2,915	1%	3,014	-2%
Total operating expenses excl. regulatory fees	-1,416	-1,397	1%	-1,311	8%
Total operating expenses	-1,434	-1,417	1%	-1,329	8%
Profit before loan losses	1,521	1,498	2%	1,685	-10%
Net loan losses and similar net result	-54	-83		-51
Operating profit	1,467	1,415	4%	1,634	-10%
Cost-to-income ratio excl. regulatory fees, %	47.9	47.9		43.5
Cost-to-income ratio*, %	48.9	50.6		44.5
Return on equity*, %	14.3	14.1		16.7
Diluted earnings per share, EUR	0.32	0.31	3%	0.36	-11%

Key financials Full -year results 2024

Income statement and key ratios EURm	FY24	FY23	FY/FY
Net interest income	7,594	7,451	2%
Net fee and commission income	3,157	3,021	5%
Net insurance result	253	217	17%
Net fair value result	1,023	1014	1%
Other income	57	40	43%
Total operating income	12,084	11,743	3%
Total operating expenses excl. regulatory fees	-5,213	-4,922	6%
Total operating expenses	-5,330	-5,238	2%
Profit before loan losses	6,754	6,505	4%
Net loan losses and similar net result	-206	-167
Operating profit	6,548	6,338	3%
Cost -to -income ratio excl. regulatory fees, %	43.1	41.9
Cost -to -income ratio, %	44.1	44.6
Return on equity, %	16.7	16.9
Diluted earnings per share, EUR	1.44	1.37	5%

Net interest income Higher volumes and lower deposit margins, as expected

Year-over-year bridge, EURm

Quarter-over-quarter bridge, EURm

• Net interest income down 5%

• Lending and deposits up

• Mortgages up 6% (1% excluding Norwegian acquisition)
• Corporate lending up 1%
• Retail deposits up 5% (2% excluding Norwegian acquisition)
• Corporate deposits up 8%

• Net interest margin 1.73% (1.83% Q423)

• Lower deposit margins, improved lending margins, and support from deposit hedge

Net fee and commission income

Continued growth; higher savings and payment & card income

Year-over-year bridge, EURm

Quarter-over-quarter bridge, EURm

7

• Net fee and commission income up 8%

• Savings fee income up with higher assets under management

• AuM up 11%, to EUR 422bn
• Net flows in Nordic channels (86% of AuM) EUR 6.1bn
• Net flows in international channels (14% of AuM) back positive at EUR 2.4bn, driven by several large new mandates
• Brokerage & advisory fee income stable
• Payment & card fee income up due to higher activity

Net fair value result Higher customer activity and valuations

Net fair value result, EURm

8 * Excluding fair value adjustments to loans held at fair value in Nordea Kredit ** Including valuation adjustments and FX

• Strong customer risk management activity, mainly in FX and rates products
• Market-making down, driven by wider spreads and higher bond market volatility
• Treasury & other up, driven by revaluation gains from holdings and reduced hedge volatility

Costs Costs in line with plan

Year-over-year bridge, EURm

Quarter-over-quarter bridge, EURm

• Total costs up 1%, driven by investments and inflation

• Underlying costs up 5%, driven by salary reviews, technology running costs, and marketing activities
• Investments in technology infrastructure, data and AI, digital offering, and non-financial risk management increasing costs by 8%
• Level of investment spend to stabilise in 2025
• Total full-year costs expected to increase by 2.0–2.5% in 2025*

Net loan losses and similar net result Continued strong credit quality

Net loan losses and similar net result, EURm

Impaired (stage 3) loans, %

• Total net loan losses and similar net result EUR 54m (6bp)

• Continued moderate level of loan losses
• Individual provisions and write-offs driven by small number of corporates, with no specific industry concentration
• Decrease in collective provisions, reflecting improved macroeconomic forecasts

• Overall level of provisions unchanged at EUR 1.8bn

• Management judgement buffer reduced to EUR 414m from EUR 435m due to improved credit risk outlook
• Solid coverage against uncertainties in economic outlook

• Continued low level of nonperforming loans

• Stage 3 loans stable at 1.04%

Capital Strong capital position; share buy-backs in progress

CET1 capital ratio development, %

REA development, EURbn

Confidential

• CET1 capital ratio 15.8%

• 2.2 percentage points above regulatory requirement
• EUR 0.3bn increase in CET1 capital, mainly driven by profit net of dividend, partly offset by share buy-back programme launched in October
• EUR ~2.2bn increase in risk exposure amount, mainly due to Norwegian acquisition

• CET1 requirement expected to increase by ~10bp

• ~10bp increase in CET1 requirement in Q424 due to increased CCyB and SyRB following Norwegian acquisition
• ~10bp increase in CET1 requirement from 1 Jan 2025 due to Finnish FSA's reciprocation of sector-specific Danish SyRB
• Ongoing share buy-back programme to end no later than 28 Feb; close dialogue on new programme already initiated

Personal Banking

Income supported by increased mortgage and deposit volumes, and savings growth

• Total income down 1%

• Net interest income down 6%; mortgage volumes up 5% and deposit volumes up 5%
• Net fee and commission income up 14%, driven by savings and payment & card income
• Improved cost-to-income ratio: 54% (57% Q423)– lower total expenses partly offset by integration costs related to Norwegian acquisition

Lending*, EURbn Cost-to-income ratio**, %

12 * Excluding FX effects ** With amortised resolution fees

Business Banking Solid volume and ancillary income growth, offset by lower deposit margins

• Total income down 3%

• Net interest income down 7%; lending volumes up 1% and deposit volumes up 4%
• Net fee and commission income up 3%, driven by higher savings and payment & card income and higher income from debt capital market transactions
• Net fair value up 7%; strong activity in FX products
• Improved cost-to-income ratio: 43% (45% Q423)

Lending*, EURbn Cost-to-income ratio**, %

13 * Excluding FX effects ** With amortised resolution fees

Large Corporates & Institutions Solid customer activity, with lending and deposit growth

Total income, EURm

• Total income down 7%
• Net interest income down 7%; lending volumes up 1% and deposit volumes up 12%
• Net fee and commission income down 6%, mainly driven by lower corporate finance income compared with Q423
• Net fair value income down 10%: continued high customer activity offset by negative impact from fixed income marketmaking, driven by wider spreads and high volatility
• Return on allocated equity 15%

Lending*, EURbn Return on allocated equity**, %

Confidential

* Excluding repos ** With amortised resolution fees 14

Asset & Wealth Management Strong inflow of new customers in Private Banking and strong net flows in all channels

0,0 0,2 0,4 0,6 0,8 1,0

Total income, EURm

Assets under management, EURbn Cost-to-income ratio*, %

• Total income up 14%
• Net interest income stable; lending volumes up 5% and deposit volumes up 3%
• Net fee and commission income up 7% assets under management up 11%, to EUR 422bn
  • Nordic channels net inflows EUR 6.1bn during quarter
  • International channels net inflows EUR 2.4bn during quarter
• Net fair value stable
• Improved cost-to-income ratio: 45% (56% Q423)

2025: The preferred financial partner in the Nordics

Unique Nordic diversification and scale

Profitable growth and high capital efficiency

Continued high profitability and capital generation

Outlook for 2025: return on equity to stay above 15%

2025 financial target

Return on equity >15%

Assumes CET1 requirement of 15%, including management buffer Rates assumed to normalise at ~2%

Supported in 2025 by

Cost-to-income ratio 44–46%

Loan losses Normalised ~10bp annually

Capital and dividend policies

60–70% dividend payout ratio; excess capital distributed through buy-backs Management buffer of 150bp above regulatory CET1 requirement

Taking Nordea to the next level

Best-in-class customer experiences Market-leading growth, cost efficiency and long-term value creation Leveraging the unique power of our Nordic scale Outgrowing the market Delivering superior financial performance Targeting focused organic growth opportunities Nordic bolt-on acquisitions to further drive growth Continued market-leading return on equity Superior earnings per share growth

Capital excellence – generate, deploy, distribute

Nordea Capital Markets Day Q4 2025

Confidential

** EUR 3.2bn paid in dividends in 2024

Capital excellence Strong capital generation supporting returns

Shareholder returns supported by continued strong capital generation

reaffirmed

• Strong capital generation
• Unchanged dividend policy
• Share buy-backs to distribute excess capital
• EUR 250m share buy-back programme launched in October 2024, to end no later than 28 February 2025
• Continued use of share buybacks to trim generated excess capital

Net interest income sensitivity

Net interest income sensitivity to policy rate changes

Deposit hedge – nominal volume, EURbn Sensitivity to +50bp parallel shift in policy rates*, EURm

3 Q423

3 Q124

~

Deposit hedge to partially offset NII impact from lower policy rates, EURm**

EUR DKK SEK NOK

10 9 9 9 8 9 9 9 9 9

2 Q224

2 Q324

3 Q424

^{14 13 13 11 11}

^{36 34 33 31 31}

• NII impact largely driven by policy rates and pass-through

• Actual pass-through varying between account types and countries, and throughout rate cycles
• Sensitivity reflecting modelled risk over cycle – actual NII impact expected to be lower following initial rate cuts and higher thereafter

• Group NII also impacted by other drivers

• Volumes and loan/deposit pricing
• Wholesale funding costs
• Deposit hedging reducing sensitivity to interest rate changes
  • Average hedge maturity ~3 years
  • Additional NII impact in Y2–Y3 as assets repriced and hedges rolled over

* Symmetrical for -50bp parallel shift

20

~ **Assumes following rate path: YE 2025 FI 2.25%, DK 1.85%, SE 2.00% and NO 4.00%; YE 2026 FI 2.25%, DK 1.85%, SE 2.00% and NO 3.75%

Supplementary information

Credit portfolio – real estate management industry (REMI)* Well-diversified portfolio, high-quality lending

90% of portfolio with low probability of default (PD)

21

Diversified across countries

Diversified across types**

• Lending volumes stable Well-diversified portfolio across Nordic markets
  • 90% of exposure towards lowrisk customers, 7% towards increased risk, only 2% towards high risk and less than 1% impaired
  • Portfolio mainly comprising central, modern office and residential properties
  • Strict underwriting standards: conservative credit policy with focus on cash flow

Supplementary information

Credit portfolio – real estate management industry (REMI)* Solid LTVs, resilient interest coverage, high occupancy

^{54 51 51 50 51 67 64 63 63 64} DK FI NO SE Total Current 20% value decline

Solid LTV levels for all countries

Majority of portfolio with low LTV

High ICR in all countries ICR above 1.0 in stress scenario for 98% of portfolio

• 86% of exposures with LTV below 60%

• In event of 20% decline in market value, 67% of portfolio still with LTV below 70%
• Average interest coverage ratio (ICR) 2.7x
  • Average ICR 2.1x in stress scenario
  • Stress scenario: all debt refinanced day one at 5Y swap rates plus margins (4.0–5.0%); no hedging
• Strict interest rate hedging requirements
  • 64% of customer debt hedged, with average maturity 4.3 years
• Low vacancy rates, with average letting ratio 95%

22 *Based on analysis of largest customers in portfolio in Q3 2024, corresponding to 50% of EAD (excl. TOAs). For smaller customers in portfolio, corresponding to other 50% of EAD (excl. TOAs), credit quality is monitored through various credit risk indicators, such as PD and IFRS 9 stages Supplementary information

Credit portfolio – real estate management industry (REMI)* Low levels of risk exposure

Strong credit quality, with 93% of IFRS 9 portfolio in stage 1

No REA impact even from 3-notch downgrade due to risk weight floors

Low impairment rate and strong coverage for impaired portfolio

• Continued strong credit quality, with slight improvement
• Only 5% of portfolio in stage 2
• 0.7% of portfolio impaired: slight decrease, driven by small number of individual customers
• Provision coverage 31%, reflecting high collateralisation
• REA protected by risk weight floors

Impairments and provisioning coverage Positive evolution in strong credit portfolio

Stage 2 and 3 loans at amortised cost, EURm

• Stage 2 loans down EUR 2.2bn, to 6%

• Driven by favourable macro development
• Stage 3 loans slightly up (+EUR 88m), but share in total lending stable at 1.04%
• Coverage ratio for stage 3 portfolio down to 36% due to model change
  • More retail loans with lower provisioning requirements categorised as stage 3 due to model change