Fourth Quarter and Full Year Results 2016

“2016 has probably been the most eventful year in the history of Nordea. On top of macro and regulatory challenges for the sector, Nordea has addressed significant media attention and started to implement a profound transformational change agenda. Two major achievements have been the creation of a new legal structure and launching a term deposit product on the new core banking platform. Despite a challenging revenue situation in 2016, we have throughout the year improved our net interest margin; for 2016, the inflow to our Assets under Management reached an all-time high, and we have confirmed our leading Nordic position in corporate advisory operations. Cost performance and credit quality are in line with our guidance. Our CET1 ratio improved 190 bps in 2016 to 18.4%, and RoE was 11.5%1,2. Nordea’s Board of Directors proposes a dividend per share of EUR 0.65.

We also expect 2017 to be eventful, and we are well-prepared to deal with the challenges. Our strategic direction is clear. Our strong balance sheet and robust business model will enable us to further invest in our platform and thereby transform the bank. We continue to focus on the creation of a fully digital platform, improving customer satisfaction and transforming the organisation to be best in class in compliance, with a strong ethics and a values culture that can fulfil our obligations to society and deliver value to our customers and shareholders.”

Full year 2016 vs. Full year 20151,2 (Fourth quarter 2016 vs. Fourth quarter 20151,2)

• Total operating income1 -2%, in local currencies -1% (+5%, in local currencies +5%)
• Total expenses2 +4%, in local currencies +5% (+9%, in local currencies +10%)
• Operating profit1,2 -9%, in local currencies -8% (+2%, in local currencies +2%)
• Common equity tier 1 capital ratio 18.4%, up from 16.5%
• Cost/income ratio1,2 up to 50% from 47.1% (up 2% -point from 49%)
• Loan loss ratio of 15 bps, up from 14 bps (down 1 bps from 17 bps)
• Return on equity1,2 11.5%, down from 12.3% (up 1.4%-points from 11.5%)
• Diluted EPS EUR 0.93 vs. EUR 0.91 (EUR 0.27 vs. EUR 0.21)
• Proposed dividend per share of EUR 0.65 vs. actual dividend per share of EUR 0.64 for 2015