Nordea: Interim Report First Quarter 2005

Strong results in the first quarter

• Net profit up 8% to EUR 495m (EUR 459m in Q1 2004).
• Operating profit up 10% to EUR 688m (EUR 624m).
• Total income up 1% to EUR 1,582m (EUR 1,569m) despite lower investment result and including additional other income of EUR 40m.
• Total expenses flat.
• Earnings per share EUR 0.18 (EUR 0.16).
• Return on equity 15.7% (15.2%).

Stable development compared to Q4

• Net profit up 4% to EUR 495m (EUR 476m in Q4 2004).
• Operating profit up 2% to EUR 688m (EUR 677m).
• Total income down 4% from seasonally high Q4 to EUR 1,582m (EUR 1,646m).
• Total expenses down 8%.
• Positive net loan losses.

Volume growth in focus areas

• Mortgage lending to personal customers up 15% year-on-year.
• Lending to small and medium-sized corporates up 14%.
• Asset under management up 11% to EUR 136bn.
• Written premiums in Life up 23%.

Active capital management

• Successful issues of Tier 1 instruments.
• Repurchase of 139 million shares completed.
• New mandate to repurchase own shares.

"The results in the first quarter are in line with our increasing ambitions and new financial targets. We see improving performance and volume growth in an environment of intensifying competition with pressure on margins. For the fourth consecutive quarter we realise positive net loan losses. Going forward we will maintain strong focus on cost and risk management, while capturing revenue growth opportunities," says Lars G Nordström, President and Group CEO of Nordea.

The full Interim Report First Quarter 2005