Year-end Report 2008

Solid performance despite rapid economic slowdown

• Income EUR 8,200m (EUR 7,886m 2007), up 4%
• Net interest income EUR 5,093m (EUR 4,282m), up 19%
• Expenses increased 7%
• Profit before loan losses EUR 3,862m (EUR 3,820m), up 1%
• Net loan losses EUR 466m (positive EUR 60m), loan loss ratio of
  19 basis points
• Operating profit EUR 3,396m (EUR 3,883m), down 13%
• Risk-adjusted profit EUR 2,459m (EUR 2,417m), up 2%, 3.5%
  excluding Danish State guarantee fee
• Earnings per share EUR 1.03 (EUR 1.20)
• Proposed dividend per share EUR 0.20, (EUR 0.50), corresponding
  to a dividend payout ratio of 19%
• Continued support of customers - lending up 17%, in local
  currencies
• Total deposits up 12%, in local currencies
• Tier 1 ratio 9.3% (8.3%), before transition rules
• Rights offering and reduced 2008 dividend to strengthen core
  capital position by EUR 3bn
• Nordea expects risk-adjusted profit for 2009 at approx. the same
  level as in 2008 (for full outlook for 2009, see page 10)

Strong income momentum also in fourth quarter

• Income EUR 2,251m, up 5% compared to the fourth quarter last
  year, 13% higher than in the third quarter
• Expenses increased 7%
• Profit before loan losses EUR 1,101m, up 3%
• Net loan losses EUR 320m (positive EUR 6m), loan loss ratio of
  52 basis points
• Operating profit EUR 781m, down 28%

"I am proud that Nordea can report strong results for 2008 based on solid performance in all customer areas, despite the financial market turmoil and global economic recession. Even in the very difficult fourth quarter, our profit before loan losses reached the highest quarterly result so far. Loan losses increased as expected following the economic slowdown and they will remain at a high level in 2009. Our ambition on a Great Nordea remains and we continue the organic growth strategy. However, we are preparing for another challenging year by bringing down the speed of the execution of the strategy and by giving cost, risk and capital management top priority. With the proposal announced today to strengthen our capital position, we will maintain our position as one of the strongest banks in Europe", says Christian Clausen, President and Group CEO of Nordea.

Year-end report 2008