Second Quarter Results 2016

CEO Casper von Koskull’s comments on the results:

“Despite low growth and turbulent financial markets, revenues are holding up well. Ancillary income is unchanged compared to a year ago. Margin pressure in Net Interest Income is levelling off and we now believe in an inflection point with an improving trend from the second half of 2016. Costs are in line with the plans and credit quality remains solid.

An important milestone was reached in the beginning of June when the first product on our core banking platform successfully went live, less than six months after installing the model bank. Although there are many challenges remaining we can start to report progress in our simplification program and compliance procedures and we continue to deliver on our AML remediation efforts. The transformation of the bank is all about becoming the bank our customers want us to be.”

Second quarter 2016 vs. First quarter 2016 (Second quarter 2016 vs. Second quarter 2015)[1]:

• Net interest income EUR 1,172m, 0% (-8%, -5% in local currencies)
• Total operating income[1] 5% (-5%, -3% in local currencies)
• Total expenses 2% (2%, 3% in local currencies)
• Profit before loan losses[1] EUR 1,350m, 21% (1%, 3% in local currencies)
• Net loan losses EUR 127m, 14% (23%, 31% in local currencies)
• Operating profit[1] 7% (-13%, -12% in local currencies)
• Common Equity Tier 1 capital ratio 16.8%, up from 16.7% (up 80 bps from 16.0%)
• Cost/income ratio[1] 50%, down from 51% (up 3%-points from 47%)
• Loan loss ratio of 15 bps, up from 13 bps (up 3 bps from 12 bps)
• Return on equity[1] 11.4%, up from 10.3% (down 1.7%-points from 13.1%)
• Diluted EPS EUR 0.25 vs. EUR 0.19 (EUR 0.25 vs. EUR 0.24)

Exchange rates used for Q2 2016 for income statement items are for DKK 7.4500, NOK 9.4241 and SEK 9.3019.

[1] Excl. non-recurring items (Q2 2016: The gain related to VISA Inc.'s acquisition of VISA Europe amounted to EUR 151m, net of tax).

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Additional information:

Signe Lonerte, Head of Communication Baltic countries, Nordea Latvia, tel.: 6 700 5469, mob.: 29 116 146, signe.lonerte@nordea.com