• 16/03/2015 1 •

Nordea Banking Denmark

David Hellemann March 8th 2016

Nordea Bank Denmark comes strong through a challenging year and deliver a significant enhanced result

2

• Low interest rates put a pressure on the net interest income

• Net fee and commission income driven by extensive mortgage refinancing and high investment activity

• High activity in the beginning of 2015, increase the net result of financial items at fair value

• Decrease in costs as a result of digitization and optimization of internal processes

• Decline in loan impairment as a result of improved macroeconomic conditions

Delta pct.

Mio.kr. 2015 2014 2015/ 2014

Net interest income 9.547 10.479 -9%

Net fee & commission income 5.186 4.975 4%

Net fair value result 1.590 1.553 2%

Other operating income 77 21 -

Total income inkl. Allocations 16.398 17.028 -4%

Staff costs -2.546 -2.603 -2%

Total expenses inkl. Allocations -7.784 -8.401 -7%

Profit before loan losses 8.615 8.627 0%

Net loan losses -1.141 -1.946 -41%

Operating profit 7.474 6.681 12%

*Inkl. Private Banking and New CIB

Danish mortgage and lending market is characterized by low lending growth which intensifies competition

3

Delta pct.

Mia.kr.

2015

2014

2015/ 2014

Lending to corporates

244

242

1%

Lending to households

265

259

2%

Consumer lending

85

91

-7%

Total lending

593

593

0%

48% 50% 50%

21% 16% 12%

26% 28% 28%

5% 6% 10%

0%

20%

40%

60%

80%

100%

Q4-14 Q2-15 Q4-15

Fastrente F1-2 F3-10 Kort Rente

• The unusual level of interest rates changes customers choice of loan and our advices

• Nordea closely monitoring market development

• Reprising of Corporate mortgage Q4 2015

• Better match between risk, capital and pricing

4

Private Banking is a growing business area with an intensified competition for the best customers

AuM development (EURbn) #1 Nordic Bank in Luxembourg Market leader in Finland and Denmark

11.1

Net flow Q4 2015

14.9

Q4 2014

262.2

Investment return

288.2

AuM development (EURbn)

4

5

Stabilisation in most segments – though still problem areas

Corporate customers in general Real Estate

Agriculture Household customers

3,6

2,6

1,9

1,1

2012 2013 2014 2015

Significant decrease in allowances in 2015

Mia. kr.

Considerable influence and uncertainty from external factors causes changes

6

Noticeable changes in customer behavior

Changes in the competitive environment

Challenging macroeconomic conditions

Increased regulation

Our customer vision are shaping the future relationship bank

7 •

Customer vision

…where the personal and digital relationship makes Nordea my safe

and trusted partner

Easy to deal with..

…anywhere and anytime…

…relevant and competent…

Our strategy is to build on our strengths …

Relationship Banking

Advisory expertise and competence

Largest Nordic footprint and broadest customer base

Strong set of solutions and services

Extensive risk and credit knowledge

Financial strength and funding access

8

… and adding winning capabilities for the future

Relationship Banking

ANYWHERE AND ANYTIME

TAILORED TO CUSTOMER NEEDS & PREFERENCES

ONE NORDIC MODEL

TOGETHER WE ASPIRE TO BE BEST

9

ADVICE

DIGITAL

EFFICIENCY

CULTURE

Large focus on digital and online solutions to meet the future customer demand and market requirements

10

Remote meetings increased from 1,600 in 2014 to 60,000 in 2015

In Q4 2015 50,000 customers used our chat function

New App for MobileBank with more features

Additional 200 recruitments in Q4-2015 and 750 MDKK investments budgeted in 2016 to support digital solutions

Strong growth in eBranches – Expect 100.000 customers in 2016

In a cooperation with agile digital players to create new business opportunities

11

At the same time we are developing our advisory format

12

Increase accessibility with extended opening hours

Advisory sessions either online or physical

Increased use of specialist competences

Digital processes to free up time for customers

Branches are being specialised to complex advise

Focus on increased profitability and satisfaction for corporate customers

13

Specialist concept for Small Entrepreneurs has resulted in large intake of new customers

New Business Banking Direct value proposition to be launched

New organisation with special units focussing on agriculture and commercial real estate

Improved profitability • Lower capital consumption • Risk based pricing

Op

Privat- og erhvervskunder 2. kvartal 2014 Peter Lybecker Adm. direktør Nordea Bank Danmark A/S, leder af Banking Danmark

Jørgen Høholt Medl. af direktionen Nordea Bank Danmark A/S, leder af Corporate & Institutional Banking Danmark

Privat- og erhvervskunder 3. kvartal 2014 Peter Lybecker Adm. direktør Nordea Bank Danmark A/S, leder af Banking Danmark

Jørgen Høholt Medl. af direktionen Nordea Bank Danmark A/S, leder af Corporate & Institutional Banking Danmark

Nordea i Danmark 1. kvartal 2015 Peter Lybecker Adm. direktør Nordea Bank Danmark A/S

Jørgen Høholt Medl. af direktionen Nordea Bank Danmark A/S

Nordea i Danmark 2. kvartal 2015 Peter Lybecker Adm. direktør Nordea Bank Danmark A/S

Jørgen Høholt Medl. af direktionen Nordea Bank Danmark A/S

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