First-Quarter Financial Report 2024

Summary of the quarter:

• Continued high-quality income growth. Total income was up 6%, driven by an 11% increase in net interest income. Net fee and commission income was stable year on year and net insurance result increased by 33%. Net fair value result was solid following a strong first quarter last year. Costs decreased by 9%, driven by lower resolution fees. Costs excluding regulatory fees increased by 5%, driven by inflation and continued investments in risk management and technology in line with Nordea's plan. Operating profit was up 19%.
• Retuon equity 18.1% - earnings per share up 23%.
  Nordea's retuon equity was 18.1% in the first quarter, compared with 17.1% a year ago. The cost-to-income ratio excluding regulatory fees was stable at 40%. Earnings per share increased to EUR 0.38 from EUR 0.31.
• Volumes stable in slow markets.Nordea's corporate lending increased by 2% year on year. Mortgage lending volumes were unchanged as mortgage markets remained slow. Retail deposit volumes were up 1%. Corporate deposits decreased by 6% year on year. Assets under management increased by 8% and Nordic net flows amounted to EUR 1.1bn in the quarter.

• Strong credit quality, continued low net loan losses.Net loan losses and similar net result amounted to EUR 33m or 4bp. Overall provisioning levels and coverage were maintained, and the total management judgement buffer remained unchanged in local currencies (translating to EUR 505m).
• Continued strong capital position.Nordea's CET1 ratio increased to 17.2%, 5.1 percentage points above the current regulatory requirement, which demonstrates the bank's continued strong underlying capital generation and capacity to support its customers. Nordea's Annual
  General Meeting of 21 March approved the dividend of EUR 0.92 per share for 2023. Nordea continues to target an efficient capital structure and completed its fourth share buy-back programme in March.
• Outlook for 2024 unchanged: retuon equity above 15%.Nordea has a strong and resilient business model with a verywell-diversifiedloan portfolio across the Nordic region. This enables the bank to support its customers and deliverhigh-qualityearnings, with high profitability and low volatility, through the economic cycle.

(For further viewpoints, see the CEO comment on page 2. For definitions, see page 54.)

CEO comment

We had a strong start to the year. Despite the subdued economic environment, we maintained solid business momentum. Our competitive range of services and proactive approach continue to be valued by our customers. Profitability was again at a very good level, with retuon equity reaching 18.1% for the quarter, up from 17.1% a year ago.

Price inflation continued to ease across the Nordics, providing some relief to households and businesses. However, macroeconomic and geopolitical uncertainty remains high. Russia's war in Ukraine and the conflict in the Middle East are constant reminders of the fragile state of the world today.

At Nordea, we are well equipped to navigate uncertainty and support our customers. Our business franchise is strong, supported by a resilient and well-diversified business model. We have leading positions in all our markets and business areas. And, as our first-quarter results demonstrate, we continue to be one of the best-performing banks in Europe.

Total income for the quarter increased by 6% year on year to EUR 3.1bn, driven by 11% higher net interest income. Total costs decreased by 9% due to substantially lower regulatory fees. Our cost-to-income ratio excluding regulatory fees remained stable at 40%. Operating profit increased by 19% year on year to EUR 1.8bn.

Alongside the constant development of our digital offering, we continued to be highly proactive towards our customers, holding more customer meetings than a year ago. Our approach is working. Although Nordic housing market activity remained slow, our first-quarter mortgage lending volumes were stable and we maintained our overall market share. We strengthened our position in corporate lending, increasing volumes by 2% year on year.

Many of our household customers increased their savings and investment activity, with deposit volumes up 1% year on year. We have been strengthening our offering, and during the quarter we introduced new savings deposit products. In Sweden, for example, Nordea's new high-interest savings account comes with a built-in fraud prevention feature to help customers safeguard their savings. Corporate deposit volumes decreased by 6% year on year, although more stable quarter on quarter.

Nordea's credit quality remains strong. Our loan portfolio is diversified across sectors and markets and supported by a prudent risk profile. Net loan losses and similar net result amounted to EUR 33m, or 4bp - a low level given the challenging economic environment. Nevertheless, we have retained our management judgement buffer in local currencies (translating to EUR 505m) to cover additional potential losses.

Our four business areas each delivered good first-quarter results. In Personal Banking we continued to see increased customer savings activity, supported by the introduction of our new deposit products, with deposit volumes up 2% in local currencies. While customer demand for new loan promises was lower than in the same quarter last year, our mortgage lending volumes were stable. Customers continued to take advantage of our digital services, with the number of private app users and logins both up 7% year on year.

In Business Banking we worked closely with our customers to help them tackle the current economic challenges. Although the overall market demand for lending continued to be slow, our lending volumes grew by 1% year on year in local

currencies, driven by Norway and Sweden. Deposit volumes grew by 1% year on year, and customers continue to choose our attractive fixed-term deposit products in the higher rate environment. We improved service quality in digital channels and began the Norwegian rollout of our Nordea Business app, which enables businesses to manage and purchase products easily through their smartphones. Nordea Business is now available in all of our home markets.

In Large Corporates & Institutions we continued to actively support our Nordic customers with their investment plans. Lending grew by 3% and deposit volumes decreased by 13% year on year. In debt capital markets, activity was high and we arranged more than 200 transactions. Our sustainability leadership was also recognised through several awards by Global Finance magazine, including best in the world for sustainability-linked bonds. We take great pride in the role we play in supporting the transition to a low-carbon economy.

In Asset & Wealth Management we maintained strong momentum in our private banking business, a key focus in our savings strategy. Customer activity was high and we welcomed new clients. Assets under management increased by 8% year on year to EUR 391bn, supported by net flows of EUR 1.1bn in our Nordic channels, despite seasonal outflows. We continued to see strong traction in our life insurance and pension business, with gross written premiums reaching a record high for the first quarter.

We maintain a robust capital position. Our CET1 ratio stood at 17.2%, or 5.1 percentage points above the capital requirement. In March our AGM approved the dividend for 2023, resulting in a total dividend payment of EUR 3.2bn, supporting economic growth broadly in the Nordic societies. We also completed our latest share buy-back programme of EUR 1bn. Our capital policy and our ambition to deliver market-leading shareholder returns remain unchanged. We continue to generate capital and expect to be in a position to provide an update on our capital plans, including buy-backs, later this year after the ECB approves our new capital models for retail exposures.

Looking ahead, we remain committed to delivering market- leading performance, supported by focused and profitable growth and improved capital efficiency through our well- diversified business model. We expect to achieve a retuon equity above 15% for the full year 2024 and target similarly strong profitability in 2025.

We continue to build for the future. A strong bank is a resilient bank, and we are always working to strengthen Nordea - building on our robust financial position and developing every aspect of our operations. We are strengthening our technology foundation. We are investing in our digital offering to ensure we can offer our customers the very best services and experiences. And we are working to protect our customers and societies from financial crime.

A strong bank is also a responsible bank, which is why you can expect us to maintain our strong focus on reducing financed emissions and supporting our customers in meeting their climate transition requirements.

This is the way we will fulfil our ambition, which remains unchanged - to be the preferred partner for customers in need of a broad range of financial services.

Frank Vang-Jensen

President and Group CEO

2

Outlook (unchanged)

Financial target for 2025

Nordea's financial target for 2025 is a retuon equity of above 15%.

The target will be supported by a cost-to-income ratio of 44- 46%, an annual net loan loss ratio of around 10bp and the continuation of Nordea's well-established capital and dividend policies.

Financial outlook for 2024

Nordea expects a retuon equity of above 15%.

Capital policy

A management buffer of 150bp above the regulatory CET1 requirement.

Dividend policy

Nordea's dividend policy stipulates a dividend payout ratio of 60-70%, applicable to profit for the financial year. Nordea will continuously assess the opportunity to use share buy-backs as a tool to distribute excess capital.

Global

The US economy remained strong. China's recovery continued, while the European economy stagnated during the fourth quarter of 2023. Activity indicators point to moderate growth in the first quarter of 2024. Activity is increasing in the service sector, while the outlook for the manufacturing sector remains bleak on the back of a low order intake and generally weak development in world trade. Labour markets remained strong. The outlook continues to be uncertain amid geopolitical risks and tighter monetary conditions.

While headline inflation has come down substantially, core inflation has proven more stubborn. Most central banks around the world have tightened monetary policy significantly to dampen demand and anchor inflation expectations around 2%. The European Central Bank's deposit facility rate now stands at a record high of 4.0%, while the US federal funds rate stands at 5.5%.

Risk sentiment in the financial markets improved during the first quarter against a backdrop of lower inflation. The S&P 500 index was up 9.9%; the STOXX Europe 600 was up 7% and the NASDAQ OMX Nordic 120 was up 6.7%. The global aggregate bond index was down 0.6%.

The outlook for the Nordic economies remains uncertain amid moderate global growth and financial tightening.

Finland

Finnish GDP decreased by 0.8% quarter on quarter in the fourth quarter of 2023. The decline was driven by modest household consumption, declining exports and shrinking construction investments. Weak purchasing power and high interest rates have held back private consumption and the housing market. Housing transactions are still at a low level and housing prices were 5.5% lower in February than in the same month last year. The unemployment rate remained at 7.7% in February. Year-on-year harmonised consumer price inflation was 0.7% in March. Price pressures have eased in all main price categories. A number of political strikes impacted export sectors negatively during the first quarter.

Norway

Norwegian mainland GDP increased by 0.2% quarter on quarter during the fourth quarter of 2023. Unemployment remained stable and stood at 1.9% in March. Housing prices were up 1.2% year on year in March. Consumer price inflation has decreased but is still high. Headline consumer price inflation stood at 3.9% in March and underlying inflation, excluding energy and taxes, was 4.5%. Norges Bank has increased its policy rate 14 times since 2021, lifting it to 4.5% as of December 2023. The central bank's latest forecast is that the rate will probably be kept unchanged until the autumn of 2024. The Norwegian krone generally weakened against most currencies during the first quarter.

Denmark

Danish GDP increased by 2.6% quarter on quarter in the fourth quarter of 2023, primarily due to an output expansion in the pharmaceutical industry. Household consumption increased, partly due to sharply rising car sales. Exports also increased, while fixed investment fell. During the first quarter, consumer confidence increased to the highest level since early 2022. Business sentiment also improved in the first quarter. The unemployment rate stayed unchanged at 2.9% in February 2024. House and apartment prices were up 2.9% and 3.7%, respectively, year on year in the fourth quarter of 2023. Year-on-year consumer price inflation stood at 0.9% in March. In line with the European Central Bank, Danmarks Nationalbank has kept its monetary policy interest rate unchanged since September 2023. The central bank's deposit rate stands at 3.6%.

Sweden

Swedish GDP fell by 0.1% quarter on quarter during the fourth quarter of 2023. Domestic demand was stable while exports edged down. Demand for labour continued to weaken and the unemployment rate remained high at 8% in February. House and apartment prices remained under pressure although were close to unchanged in February 2024 compared with last year. Year-on-year consumer price inflation stood at 2.2% in March. Sveriges Riksbank kept its policy rate unchanged at 4.0% in March and continued to scale back its balance sheet. The trade-weighted Swedish krona weakened by 3.3% in the course of the first quarter.

First quarter 2024

Net interest income

Q1/Q1: Net interest income increased by 11%. The main drivers were improved deposit margins, higher corporate lending volumes, higher treasury income and a higher day count. These were partly offset by lower lending margins. Exchange rate effects had a negative impact of approximately EUR 24m.

Q1/Q4: Net interest income was stable compared to the previous quarter as improved lending margins were offset by lower deposit margins and a lower day count. Exchange rate effects had a positive impact of approximately EUR 25m.

Lending volumes

Q1/Q1: Loans to the public excluding repurchase agreements and securities borrowing were up 1% in local currencies. Lending volumes decreased in Personal Banking (-1% in local currencies) and increased in Business Banking (1% in local currencies) and Large Corporates & Institutions (3% in EUR).

Q1/Q4: Loans to the public excluding repurchase agreements and securities borrowing were up 1% in local currencies. Lending volumes decreased in Personal Banking (-1% in local currencies) and increased in Business Banking (1% in local currencies) and Large Corporates & Institutions (3% in EUR).

Deposit volumes

Q1/Q1: Total deposits from the public excluding repurchase agreements and securities lending were down 4% in local currencies. Deposit volumes increased in Personal Banking (2% in local currencies) and Business Banking (1% in local currencies) and decreased in Large Corporates & Institutions (-13% in EUR).

Q1/Q4: Total deposits from the public excluding repurchase agreements and securities lending were up 1% in local currencies. Deposit volumes increased in Personal Banking (1% in local currencies) and decreased in Business Banking (-3% in local currencies) and Large Corporates & Institutions (-1% in EUR).

Net fee and commission income

Q1/Q1: Net fee and commission income was stable as lower net income from lending and guarantees as well as brokerage and advisory was offset by higher net income from both savings and payments and cards. Exchange rate effects had a negative impact of approximately EUR 5m.

Q1/Q4: Net fee and commission income was stable as lower net income from lending and guarantees as well as brokerage and advisory was offset by higher net income from payments and cards. Exchange rate effects had a positive impact of approximately EUR 6m.

Savings income

Q1/Q1: Net fee and commission income from savings increased by 2%, driven by higher assets under management.

Q1/Q4: Net fee and commission income from savings was stable. The fourth quarter of 2023 included performance fees. End-of-period assets under management increased by EUR 12.7bn, to EUR 391.2bn, driven by continued positive stock market development, partly offset by negative net flows of EUR 1.0bn. In Nordic channels good momentum was maintained mainly in Private Banking and Life & Pension, with net flows totalling EUR 1.1bn. Net flows in international channels were negative at EUR 2.1bn, mainly driven by wholesale distribution (EUR -1.8bn).

Brokerage and advisory income

Q1/Q1: Net fee and commission income from brokerage and advisory decreased by 7%, mainly driven by lower fee income from debt capital markets and corporate finance.

Q1/Q4: Net fee and commission income from brokerage and advisory decreased by 9%, mainly driven by lower fee income from debt capital markets and corporate finance.

Payments and cards income

Q1/Q1: Net fee and commission income from payments and cards increased by 4%, mainly driven by lower commission expenses.

Q1/Q4: Net fee and commission income from payments and cards increased by 5%, mainly driven by lower commission expenses.

Lending and guarantees income

Q1/Q1: Net fee and commission income from lending and guarantees decreased by 9%, driven by higher fees paid in relation to significant risk transfer transactions to improve capital efficiency.

Q1/Q4: Net fee and commission income from lending and guarantees decreased by 3%, driven by higher fees paid in relation to significant risk transfer transactions to improve capital efficiency.

Net insurance result

Q1/Q1: Net insurance result increased by 33% mainly driven by a lower claims for Danish insurance products.

Net insurance result per business area

Q1/Q4: Net insurance result increased by 53% primarily due to lower claims for Danish insurance products and improved result for guaranteed life insurance products following negative interest rate impacts in the previous quarter.

Net result from items at fair value

Q1/Q1: Net result from items at fair value decreased by 16% driven by lower market-making result in Markets and lower customer activity in interest rate hedging, following elevated levels last year. Treasury result improved due to positive revaluations.

Net result from items at fair value per business area

Q1/Q4: Net result from items at fair value increased by 89%, driven by higher result in Treasury due to positive revaluations, and higher market-making result in Markets from foreign exchange, interest rate and credit products. In the fourth quarter of 2023 Treasury result was negatively affected by revaluations in the liquidity portfolio and hedge inefficiencies due to interest rate volatility.

Equity method

Q1/Q1: Income from companies accounted for under the equity method was EUR 7m, up from EUR -12m. The first quarter of 2023 included an impairment.

Q1/Q4: Income from companies accounted for under the equity method was EUR 7m, up from EUR 2m.

Other operating income

Q1/Q1: Other operating income was EUR 9m, down from EUR 12m.

Q1/Q4: Other operating income was EUR 9m, down from EUR 10m.