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Nordea Group 2007 1

Summary 2007

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Nordea is the largest financial servicesgroup in the Nordic and Baltic Searegion with a market capitalisation ofapprox. EUR 30bn, total assets of EUR389bn and a tier 1 capital of EUR14.2bn, as of end December 2007.Nordea is the region’s largest assetmanager with EUR 157bn in assetsunder management.

Nordea is a universal bank withleading positions within corporatemerchant banking as well as retailbanking and private banking.

With approx 1,300 branches, callcentres in all Nordic countries and ahighly competitive e-bank, Nordeaalso has the largest distributionnetwork for customers in the Nordicand Baltic Sea region, including morethan 180 branches in five newEuropean markets, including Russia,Poland, Lithuania, Latvia and Estonia.

Nordea has approx. 10 millioncustomers in the Nordic region and

new European markets, of which 6.8million are personal customers incustomer programme and 0.7 millionare active corporate customers. Goldcustomers, the most importantpersonal customer segment, accountfor approx. one third of the customersin customer programme and areoffered a complete range of productsand services including a personalbanker. Nordea has a clear emphasison relationship banking with corporatecustomers and aims at becoming thehouse bank by combining Nordicresources and competencies with localpresence and – for large customers - byapplying a customer team concept.

Nordea pursues an organic growthstrategy, with prudent riskmanagement, and is well diversified.No geographical market accounts formore than one third of Nordea’s totalincome.

Nordea’s total shareholder return

(TSR) was 6.4% in 2007, onlysurpassed by two other banks in theEuropean peer group. Since end of2002, Nordea’s accumulated TSRamounts to 244%, also exceeded bytwo peer banks only.

Return on equity was 19.7% in 2007,excluding non-recurring items 19.1%.

Nordea’s long-term target is todouble the risk-adjusted profit in sevenyears, with 2006 as the baseline. Onaverage, this requires a 10% annualgrowth. In 2007 the risk-adjusted profitincreased by 15%.

Following a successfultransformation from four majornational banks into one integratedcross-border financial services group,Nordea in 2007 embarked on thejourney towards Great Nordea. For thejourney, Nordea in 2007 introducedthree new corporate values: GreatCustomer Experiences, It’s all aboutPeople and One Nordea team.

Nordea in brief

,Annual report practiceThe annual report is available inEnglish and Swedish. A summary ofthe annual report is available inEnglish as well as in the four Nordiclanguages. The full annual report andthe summary will be distributed onrequest. The reports can bedownloaded and ordered by accessingwww.nordea.com.

Financial calendar 2008Annual General Meeting 3–AprEx-dividend date 4–AprRecord date 8–AprDividend payments 15–Apr1st quarter report 29–Apr2nd quarter report 22–Jul3rd quarter report 23–Oct

Layout: MarketingProduction: MarketingPhoto: Egon Gade, Claus BoesenPrinting: Herrmann & Fischer

Nordea - with an outstandingstarting point

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Highlights 2007

JanuaryNordea’s groupwide trainee programmeis ranked among the best in Sweden,and the best in the financial servicessector.

FebruaryNordea Life & Pensions was chosen asone of eight providers to the collectivelyagreed pensions system ITP in Sweden.The agreement is the mostcomprehensive ever in the Swedishmarket and one of the largest atEuropean level. Nordea won thecontract in competition with 15 otherinsurance providers.

Nordea presents its full-year reportfor 2006, and it was another record year,well ahead of the financial targets.Nordea consolidated the position as theleading bank in the region. Nordea, asthe first Nordic bank, starts toimplement the Equator Principles, abenchmark for the financial industry tomanage social and environmental issuesin project financing.

MarchNordea’s acquisition of a 75% stake inJSB Orgresbank in Russia was finalisedaccording to plan. Through thisinvestment, Nordea will capture thegrowth opportunities in the Russianmarket.

AprilThe Annual General Meeting resolvesto introduce a Long Term IncentiveProgramme to retain and attract the keyleadership talents comprising up to 400managers and key employees in theNordea Group.

Lars G Nordström retires withpension from the position as Presidentand Group CEO of Nordea and issucceeded by Christian Clausen.

Nordea streamlines its organisationwith a stronger customer orientationand efficient product and servicedelivery chain. A new member ofGroup Executive Management isappointed, Gunn Wærsted. Nordea´svision and values foundation is revised.The new Nordea vision reads: “The

leading Nordic bank, acknowledged forits people, creating superior value forcustomers and shareholders” and thenew values are “Great CustomerExperiences”, “It’s all about people” and“One Nordea team”, supported by thefoundation in terms of “Profitorientation – cost, risk and capital”.

Risk Magazine awards Nordea theprize Best Nordic Derivative House.

MayThe interim report for the first quartershows that the organic growth strategygives Nordea continued strongmomentum in the businessdevelopment in all business areas.

JuneNordea receives approval to use itsinternal credit risk models according toBasel II. The approval applies for theportfolios Corporate and Institutions,which cover more than 50 per cent ofNordea´s credit portfolios. GlobalFinance Magazine ranks Nordea as the’Best Treasury and Cash ManagementBanks and Providers 2007’ in the Nordicregion.

JulyThe Magazine Euromoney awardsNordea the prize for Best Regional Bankin the Nordics and Baltics. In addition,Nordea received five local awards in theannual competition for the world´s bestbanks.

In the first half year of 2007, Nordeamaintains strong growth in totalincome, the number of gold customersas well as in business volumes as aconsequence of the execution of theorganic growth strategy.

SeptemberNordea sets new standards for onlineemployer branding and recruitmentwith an innovative interactive speeddating tool on the Internet. Nordeaincreases its credit card base by over600,000 new cardholders through anagreement with Stockmann, the Finnishretail trader.

OctoberNordea increases its distributioncapacity through an agreement with the company Svensk Kassaservice, asubsidiary to Posten, the Swedish postalservice. 76 new branches will from 1July 2008 be established at locationswhere Svensk Kassaservice hasoperations and Nordea has many of itscustomers. Statoil MasterCard, acooperation project with Nordea, won aprestigious prize at MasterCardInternational’s annual Co-Brandingconference: ’Best long-termachievement and usage 2007’.

Nordea´s organic growth strategydelivered strong results also for thethird quarter. Total income and thenumber of customers in prioritisedsegments as well as business volumescontinued to increase. Nordeaexperienced very limited impact fromthe market turmoil in the third quarter.

NovemberNordea introduces guidelines forsocially responsible investments, SRI,within Asset Management. Nordeareceives the award Best Provider ofSyndicated Loans for the ShippingIndustry at the 20th Annual Lloyd’sShipping Conference. Nordeastrengthened its presence in theNorwegian real estate agency businessby its purchase of the real estate agencychain, PRIVATmegleren.

DecemberNordea and Standard & Poor’srenegotiated the agreement from 2004regarding equity research. Standard &Poor’s will concentrate on fulfilling therequirements of Nordea’s Privatebanking and retail customers. Nordeawill in-source the institutional equityresearch.

Nordea opens a new branch inMalmö with both Danish and Swedishstaff, which offers special advice toDanes moving to Sweden butcontinuing to work in Denmark. All inall, Nordea has opened 65 newbranches in New European Marketsduring the year.

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With a return of equity of 19.7 percent, income growth of 8 per centand a gap between income and costgrowth of 2.0 %-points, we achievedour financial targets set in 2006.Moreover, with a growth in risk-adjusted profit of 15 per cent, we arewell in line with the target to doubleour risk-adjusted profit in seven years.

I am particularly pleased by thefact that all our growth initiativesshow strong performance and that wesee broadly based and strongmomentum in the growth of businessvolumes stemming from prioritisedsegments.

Market turmoil dominated thefinancial environment in the secondhalf of 2007 and many banks wereforced to make significant writedownsdue to losses in the sub-primemarket, making it more difficult toraise funding. I am very pleased thatNordea’s prudent risk and capitalmanagement implied only limitedexposure to the market turmoil andbecause of our strong funding base,our liquidity position remained strongthroughout the year. Nordea has nowexperienced 15 consecutive quarters ofpositive net loan losses, whichunderscores the strong quality of thecredit portfolio. The sound state of ourbusiness was acknowledged by themarket and Nordea was recognised asone of the most low risk bank stocksin the Nordic region during the courseof the year.

Nordea has achieved goodperformance Nordea has undergone significantdevelopment over the last five years.

In 2002 we had just completed thebiggest merger in the Nordic regionand made great effort to control costs,integrate systems, create efficiency and- not least - results. In 2007, we haveachieved a good performance and thechallenges of the past have beenovercome.

The time has now come to takethe next step forward and form aGreat Nordea.

I believe, that a great company ischaracterised by four elements: astrong profit orientation, an ambitiousvision and ambitious targets, a cleargrowth strategy, and strong customer-oriented culture and values.

Nordea already has a strong profitorientation with focus on cost, riskand capital management. We haveambitious financial targets, not leastexpressed through our goal ofdoubling the risk-adjusted profit from2006 to 2013 implying an annualaverage growth of around 10 per cent.We also have a clear growth strategyfocused on increasing business withcurrent customers and attracting newcustomers in the Nordic region,Russia, Poland and the Balticcountries.

We have a sound base on which totransform Nordea into a greatcompany.

But to succeed, we need tostrengthen our culture, values andvision.

Customer and people orientationUp to 2007, Nordea’s values werefocus, speed and performance. Thesevalues emphasised the need to makeNordea a profitable, efficient and

- From a good to a Great Nordea

Dear Shareholder,

2007 was an exciting and

successful year for Nordea where

we delivered another convincing

performance. The results

emphasise that Nordea is a

compelling integrated cross-border

and prudently-run company, which

can be trusted to deliver results.

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well-run company and provided animportant guideline as to the necessarybehaviour and attitudes.

Now that the foundation of profitorientation and prudent risk, capitaland cost management is in place, weneed to build on top of that a visionand a set of values which are trulycustomer and people-oriented andsupport the goal of getting our well-run company to grow at an evenhigher and sustainable level.

In spring 2007, we thereforeintroduced a new vision and three newvalues. They reflect and support theorganic growth strategy.

New vision and values Nordea’s new vision is to be “theleading Nordic bank, acknowledgedfor its people, creating superior valuefor customers and shareholders”.

The vision emphasises that peopleare our most important asset and theone thing which makes the differencefor Nordea. Products and systems canbe copied, but people are unique. Thevision also heightens the focus oncustomers and shareholders.

Our three new values support therealisation of the vision. They are:Great customer experiences, It’s allabout people and One Nordea team.

Great customer experiences meansthat we think and act with thecustomer in mind, we understandindividual customer needs and exceedexpectations, we deliver professionallyand we create long-term relationships.

It’s all about people means that weacknowledge that people make thedifference, we enable people toperform and grow, we foster initiative-

taking and timely execution and weassess performance in an honest andfair way.

One Nordea Team should beunderstood as teaming up to createvalue; we work together across theorganisation, we show trust andassume accountability and we makerules and instructions clear andapplicable.

Put together, the new vision andvalues will create a culture whereemployees work together to create thebest experience and most value forour customers – and thereby supportNordea’s continued growth andpositive development.

New operating model and adjustedorganisationAs a consequence of our new valuesand vision, we have adjusted ourorganisation and introduced a newand more customer-oriented operatingmodel that covers the entire valuechain.

In the new organisation, we haveclearly defined customer responsibleunits, responsible for all sales andcustomer relations within our variousmarket segments. Products andprocessing have been organised inunits covering the whole value chain,from product development, sales,support, and production and processdevelopment. All other units areorganised in accordance with the valuechain thinking.

A coordination forum has beenestablished, in which the customerand product units monitor and planwhat products should be developedto meet customer needs and where

efforts should be prioritised. Thiscoordination will also ensure that ITresources are used in the best andmost efficient way.

The new organisation integratesand optimises cross-organisationalprocesses and will ensure that allparts in the value chain work towardscreating value for our customers. Wewill be able to increase the time wespend with customers and we willreduce the time-to-market of ourproducts as our efforts are morestreamlined and prioritised.

A Great NordeaIn 2002 Nordea was struggling todeliver on integration and results. In2007, Nordea has been integratedcross-border and has built a solidfoundation, which is confirmed byour strong performance, by analystsand in the media and, I hope, also byyou, our shareholder.

The Group’s more than 35,000motivated and competent colleagueshave already brought Nordea a longway.

With our new vision, values andorganisation, we have embarked onthe journey towards a Great Nordea.I have no doubt that we will besuccessful in reaching our destination.

Best regards

Christian Clausen

,We have embarked on thejourney towards a Great Nordea

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Nordea’s market capitalisation was

EUR 29.6bn at the end of 2007.

Total shareholder return in 2007,

equal to dividend plus the

appreciation of the share price, was

6.4%. The proposed dividend is

EUR 0.50 per share.

Nordea’s overall financial target is tocreate value for shareholders in the topquartile of its European peer group.

Share price development 2007 The market capitalisation of Nordea atthe end of 2007 was EUR 29.6bn.

Ranked by market capitalisationNordea was the fifth largest companyin the Nordic area and the largestamong Nordic financial groups.During the year the share price ofNordea appreciated by 2.4% on theStockholm Stock Exchange from SEK105.5 on 30 December 2006 to SEK 108on 28 December 2007. The daily priceslisted for the Nordea share during 2007(closing prices at Stockholm StockExchange) ranged between SEK 119.3and SEK 99.6. The SX40 FinancialsIndex of the Stockholm StockExchange depreciated by 7.9%, theDow Jones STOXX European banksindex depreciated by 16.9%. Since 6March 2000, the date of the mergerbetween MeritaNordbanken andUnidanmark, the Nordea share hasappreciated 140% and outperformedthe Dow Jones STOXX European banksindex (+26%).

The Nordea share is listed on theOMX Nordic Exchange in Stockholm(in SEK), Helsinki (EUR) andCopenhagen (DKK). A trading lot isequivalent to 200 shares in Stockholm

and Copenhagen and 1 share inHelsinki.

Nordea’s share price can bemonitored at www.nordea.com, whereit is also possible to compare theperformance of the Nordea share withcompetitors and general indexes aswell as to find historical prices of theNordea share.

Total shareholder return Total shareholder return (TSR) isrealised through market value growthper share and reinvested dividends.

Total shareholder return in 2007 was6.4% (32.2% in 2006). Nordea rankednumber three among the Europeanpeer group banks in terms of TSR in2007 (number three in 2006.) Theaverage TSR in the peer group was -10.6%.

Dividend policy and proposeddividend Nordea pursues a policy of highdividends.

The policy is that the total dividendpayment will exceed 40% of the netprofit for the year. Nordea will ensurecompetitive and predictable dividends.The proposed dividend corresponds toa payout ratio for 2007 of 42%.

The Board of Directors of NordeaBank AB (publ) proposes a dividend ofEUR 0.50 per share. The total dividendpayment for 2007 would then be EUR1.297m corresponding to 42% of thenet profit after tax. The dividend yieldcalculated on the share price 28December 2007 is 4.4%. The dividendis denominated in EUR, thoughpayments are made in the localcurrency of the country where theshares are registered. Dividendpayments can be made in EUR if theshareholder has a EUR accountregistered with the relevant securitiesregister.

Repurchase of own shares The Annual General Meeting (AGM)on 13 April 2007 resolved to authorisethe Board of Directors, for the perioduntil the next Annual General Meeting,to decide on acquisition of shares inthe bank, with the purpose toredistribute funds to the company’sshareholders.

Mainly due to the market turmoil,this mandate has not been utilisedduring 2007. Repurchased shares carryno voting rights.

The Board of Directors will proposeto the AGM 2008 to authorise theBoard of Directors to repurchase ownshares with the purpose to adjust theNordea's capital structure to the needexisting at any time and to use ownshares as payment in connection withacquisitons or in order to finance suchacquisitions. Information onrepurchase of Nordea’s own shares isavailable at www.nordea.com/ir.

Earnings and shareholders’ equityper share Net profit for the year amounted toEUR 3.130m corresponding to EUR1.20 per share. Shareholders’ equityper share amounted to EUR 6.58 at theend of 2007.

Shareholders With approx. 465,000 registeredshareholders at the end of 2007,Nordea has one of the largestshareholder bases of all Nordiccompanies. The number of Nordeashareholders registered in Sweden isapprox. 94,000, in Denmark 184,000,and in Finland 187,000.

The largest among the variousshareholder categories is non-Nordicshareholders, holding 23.8% of theshares in Nordea compared to 28.8% atthe end of 2006. The largest individualshareholder is the Swedish state with aholding of 19.9% at year-end.

The Nordea share

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Having fulfilled financial targets,

strengthened competitiveness and

gained unique experience from

cross-border banking, Nordea in

2007 raised the bar further by

defining a new vision, new values

and increased focus on the target

to double the risk-adjusted profit in

seven years. The strategic direction

is to create value through organic

growth in the Nordic region as well

as in New European Markets.

Nordea’s development from four majornational banks to a leading Nordicbank has successfully been achieved.The next step is to create a GreatNordea.

Nordea’s strategic framework for thenext step in the transformation journeyis based on four cornerstones: • Strong profit orientation • Ambitious vision and targets • Strong customer-oriented values and

culture • Clear growth strategy

Nordea’s mission continues to be Making it possible which captures the key prerequisite fortaking Nordea from good to greatperformance, ie making it possible forits customers to reach their objectives.

Strong profit orientation Nordea has developed a strong profitorientation. From 2002 to 2007, thecost-income ratio improved from 64%to 52%, and return on equity wentfrom 12% to 19%. Nordea hasconsistently improved the totalshareholder return into a top threeposition in the two most recent years.

A strong profit orientation is thefoundation for generating results andresources needed for investments infuture growth. Customer satisfactionpaves the way for income growth,which is translated into net profitthrough: • Resource optimisation,• Prudent risk management,• Efficient capital management.

Nordea establishes resourceoptimisation through a consistentprioritisation between and within thevarious value chains in the operatingmodel.

In addition, general costmanagement is a well established partof the culture.

Prudent risk management is aboutstrong focus on risks and appropriatetools and processes to manage andcontrol risks. Prudent risk managementin Nordea contributes to long-termprofitability.

Efficient capital management, usingthe most capital efficient solutions,investing capital in areas with highreturn divesting non-core assets,securing a stable funding base andreturning excess capital toshareholders, is the third component ofprofit orientation in Nordea.

Ambitious vision and targets Vision Nordea’s vision has been refined tobetter reflect the ambition of becominga great company and to emphasise thepeople dimension:

The leading Nordic bank, acknowledgedfor its people, creating superior value forcustomers and shareholders.

• Leading Nordic bank means theleading among Nordic banks –without geographical limits.

• People make the difference. Products,systems and even strategies caneasily be copied.

• Superior indicates a position amongtop players measured by customersatisfaction and total shareholderreturn.

• By creating shareholder value,Nordea secures its strategic flexibilityand freedom to decide investments.Shareholder value is created throughprofit orientation and customer valuecreation.

Targets Nordea has three overall financialtargets; total shareholder return, returnon equity and risk-adjusted profit.

The targets reflect the ambitiousvision on value creation to be reachedthrough continued high profitabilityand strong growth of business andincome.

Value creation is measured by totalshareholder return, ie share priceappreciation and dividend, and thetarget is to:

Create value for shareholders in the topquartile of a peer group of Nordic andEuropean financial services companies.

Vision, Values and Strategy

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High return on equity is an importantindicator of value creation,emphasising the profitabilitydimension of value creation. The aim isto reach:

Return on equity in line with topNordic peers

Nordea has introduced a target forrisk-adjusted profit in order tounderline the ambition to grow thebusiness and at the same time retain ahigh level of profitability. The target isto: Double risk-adjusted profit in seven years

The target implies an average annualgrowth in risk-adjusted profit of 10%,with 2006 as baseline. Risk-adjustedprofit is defined as net profit excludingone-offs, using expected loan lossesand an average standard tax rateinstead of actual loan losses and actualtax rate.

Nordea achieved these targets in thefinancial result 2007.

Strong customer-oriented valuesand culture In 2007, Nordea has prioritised thework to define and implement uniformvalues throughout the organisation.Nordea’s ambition is that the valuesare reflected in everything we do to thebenefit of all stakeholders.

Great customer experiencesIn Nordea, we want the employees inall parts of the value chain to see thelink between what they do and thecustomer experience. To guide ouractions and behaviour, there is one keyquestion only: How will this benefitthe customer? • We think and act with the customer

in mind.• We understand individual customer

needs and exceed expectations.• We deliver professionally.• We create long-term relationships.

It’s all about peopleIn Nordea, we recognise theinseparability of our business growthand the competence growth of ourpeople. This second core valueemphasises that our goals can only beachieved through developing ourpeople, our competence and ourmindset. We acknowledge that peoplemake the difference; • We enable people to perform and

grow.• We foster initiative-taking and timely

execution.• We assess performance in an honest

and fair way.

One Nordea team In Nordea, our ambition is thatcustomers will experience Nordea asone team working together to find thebest solutions. We believe that it isonly through collaboration we canutilise our full potential and delivertruly great customer experiences; • We team up to create value.• We work together across the

organisation.• We show trust and assume

accountability.• We make rules and instructions clear

and applicable.

Clear growth strategyThe growth outlook for the Nordicfinancial services market is strong inthe mid to long-term perspective, withan expected growth clearly exceedingthe GDP growth. With a uniquecustomer base and distribution reachin this region and strong productcompetencies, Nordea has goodpotential to exceed the market growth.

In addition, business opportunitiesoutside the Nordic region are expectedto add increasingly to the Group’soverall growth rate.

In summary, Nordea’s strategy forprofitable organic growth has fourpillars:

• Increase business with existingNordic customers and attract newcustomers in the upper segments

• Invest in New European Markets• Exploit selected Global and

European business lines• Higher level of operational efficiencyThe growth strategy is supported bya number of Group strategicinitiatives, each with substantialimpact on income growth oroperational efficiency.

In 2007, nine such initiatives havebeen given high priority in the overallresource allocation. The four pillarsand the supporting strategic initiativesare described below.

Existing Nordic customersand new customersNordea has significant businesspotential with Nordic customers - notleast in Sweden, the largest market inthe Nordic region.

Nordea is executing a majorinitiative to generate more customeradvisory meetings and a moreproactive customer dialogue. Inaddition, investments are made insegments, product areas and marketswith attractive growth opportunities.

Through its competitive customerloyalty programme, Nordea alsotargets new customers.

Growth Plan SwedenFor a number of years, Nordea hascaptured a smaller part of the marketgrowth than competitors in theSwedish market. In the autumn of2005, Nordea launched Growth PlanSweden with the overall aim tostrengthen the sales force and supportthe income growth and increasemarket shares.

In 2007 Nordea made an agreementwith Svensk Kassaservice according towhich Nordea in 2008 will open 76new branches.

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Private bankingToday, Nordea has the largest Nordicprivate banking operation with aplatform across the Nordic countries.Nordic Private Banking will target thelarge private banking potential ascustomers are becoming wealthier andqualify for the private bankingconcept.

Capital markets products to corporatesThe objective of this initiative is tomake the solutions offered withincorporate risk management and capitalmarkets transactions a natural part ofNordea’s core offering towards largeand medium-sized corporatecustomers. Examples of productscovered are interest rate, and currencyderivatives products for hedgingpurposes, as well as loan and bondproducts for capital raising purposes.

Corporate finance and cash equityTo strengthen Nordea’s equity andcorporate finance offering, theseproduct areas have been more closelyaligned and combined into one Nordicunit with local operations.

Institutional equity research will becarried out in-house in order to meetthe service requirements of the largeinstitutional and corporate customers.

New European MarketsNordea has established an attractiveposition and strong brand in five fastgrowing European economies. Thesemarkets represent an increasinglyimportant component in Nordea’slong-term growth strategy.

The strategies to capture growthwith moderate risk include a broadlybased organic growth strategyin Russia, a fast expansion of thedistribution capacity in Poland andmore cautious growth in the Balticcountries.

Poland – 150 new branchesNordea has been present in the Polishmarket for nine years. Poland, with itsalmost 40 million inhabitants andstrong macroeconomic growth is anincreasingly important banking marketin Europe. Nordic companies are alsoto an increasing degree active inPoland. In order to capture the growthopportunities in this market Nordea in2006 outlined plans to open up to 150new branches in the 2007-2009 timeperiod. 40 of the planned newbranches were opened in 2007.

Develop Nordea’s operations in RussiaTo take advantage of the growth in theRussian market and further capitaliseon the experiences from the Balticcountries and Poland, Nordea acquireda majority stake in Orgresbank in theend of 2006. The aim is to build adiversified banking business,predominantly focused on theEuropean part of Russia.

15 new branches have been openedin the recent months.

Selected Global and Europeanbusiness linesNordea has a successful track recordwith niche strategies outside the homemarkets based on strong competencies.Nordea will reinforce the worldleadingposition within shipping by leveragingthe strong customer relationships.Nordea has the largest Nordic privatebanking operation in Luxembourg andSwitzerland. International PrivateBanking will in 2008 focus onexpanding the business, includingestablishment of a Russian deskleveraging on Orgresbank in Russia.European fund distribution is Nordea’ssecond leg in the European assetmanagement strategy.

Higher level of operationalefficiencyTwo Group strategic initiatives, whichaim at a higher level of operationalefficiency and support of the growthstrategy, will unify customer processesand product and service deliveryprocesses and ultimately lead tounified IT systems. The main benefitswill be time freed up for customermeetings and a higher level ofefficiency.

Future branch and sales cultureThis initiative will support Nordea’s1,100 Nordic branches, with 14,000customer relation employees, developinto the top of European peers interms of sales performance andefficiency and deliver on growthtargets. The sales process builds on auniform contact policy ensuringprioritisation of the personal bankadviser’s time and a proactivebehaviour towards customers with thehigh potential, including salesprocesses for corporate customers inthe next phase. A new branch designwill be tested during 2008.

Nordea Transformation ProgrammeNordea Transformation Programme(NTP) is focusing on harmonising andconsolidating business processes andNTP will firstly deliver solutions forthe customer interacting parts of thebank, and secondly consolidate thecore banking systems.

People StrategyCoherent with the development of thegrowth strategy and implementation ofnew values, Nordea has revised itspeople strategy and launched anumber of activities, which aim atsecuring Nordea’s lead position in theNordic banking industry. The HRactivities include employer brandingand recruitment, leadershipcompetencies and talent management.

Financial targets

Long term financial targets

Total shareholder return TSR (%)

Return on equity (%)

Risk-adjusted profit (EURm)

Target

In the top quartile of

European peer group

In line with top Nordic peers

Double in 7 years

(baseline 2006)

2006 2007

#3 of 20 #3 of 20

22.9% 19.7%(19.1% excl.

non-recurring items)

2,107 +15%

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,Nordea has the largestcustomer base of any financialservices group in the Nordicand Baltic Sea region

Business development – customers and products

With the unique customer base,

and competitive customer

programme, Nordea’s organic

growth strategy has the target to

leverage the full potential in the

customer base, as well as

attracting new customers to the

premium segments. A special focus

is to increase product penetration

through comprehensive advisory

sessions. Nordea operates approx.

1,300 bank branch offices,

including full-service nationwide

branch networks, with contact

centres and internet services, in the

Nordic countries and a quickly

developing full-service operation,

including more than 180 branches,

in New European Markets.

Nordic customer baseNordea has the largest customer baseof any financial services group in theNordic region with close to 9 millioncustomers, of which 6.8 millionpersonal customers in customerprogramme and approx. 600,000 activeCorporate customers.

The core in Nordea’s strategy issegmentation of customers anddifferentiating both value propositionand resource allocation according tosegments.

Personal customersThe main part of Nordea’s personalcustomers is segmented throughNordea’s unique customer programme.

Private Banking customersPrivate Banking customers aresegmented according to the customer’sneeds and assets. Wealthy individualswith more than approx EUR 150,000 inassets qualify for the Private Bankingconcept and people with more thanEUR 1m in assets are offered the high-net-worth concept.

Customer programmePersonal customers in the customerprogramme segment themselves inthree segments - Gold, Silver andBronze – by the way of the businessthey do with Nordea, supporting thegeneral principle that the more thecustomer interacts with Nordea, thebetter value for money.

Gold customers:– At least EUR 30,000 in open balance

with Nordea (loans and savings) – At least 5 products

Silver customers:– At least EUR 5,000 in open balance – At least 3 products

Bronze customers:– Programme customers not in theGold or Silver segment. In 2007,Nordea has redefined the necessaryrequirements for Bronze customers,leading to a lower number of Bronzecustomers and a higher number in thecategory “Other”, customers notcurrently in scope for Nordea’scustomer programme. For youngadults between 18 and 28 years, aspecial segmentation applies, calledthe check-in offering.

Distribution strategyThe distribution strategy is based onaccessibility, convenience and multi-channel distribution.

Nordea operates a multi-accessstrategy making it possible forcustomers to access the bank whenand how it suits them. The branches,the contact centres and the e-bankingservices are the basis for thedistribution and offer differentelements of service. Products areefficiently sold through all channels.Branches are the centres fordeveloping relationships to customers.

The focus is to developing person-to-person relationships between thecustomers with the mostcomprehensive needs and a namedpersonal banker.

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Customers seeking advice are servedoutside opening hours either bybooking meetings with the personalbanker or by calling the contactcentres.

Corporate customersCorporate customers are segmentedaccording to product and serviceneeds, complexity and businessvolumes into a Corporate MerchantBanking concept for Nordea’s largestcustomers, a Large service concept anda Small and Medium concept.

Financial institutions, includingNordic and international financialinstitutions and bank groups, areserved as a separate customer segmentwith the same concept as for CorporateMerchant Banking.

Customer base in the NewEuropean MarketsThe customer base in Nordea'semerging home markets, NewEuropean Markets, covering Russia,Poland, Lithuania, Latvia and Estonia,constitutes close to 600,000 personalcustomers and 75,000 corporatecustomers. Additionally, Nordea hasapprox. 800,000 personal Life &Pensions customers in Poland, mainlywithin the area of company-paidpensions.

Nordea’s strategy within NewEuropean Markets is the same as in theNordic countries, although adapted tolocal market conditions. Thesegmentation in Poland and the Balticcountries is similar to the one in theNordic countries, even if the

thresholds for the different segmentsare adapted to the local markets. InRussia, the current main customersegments are the large and medium-sized corporates. Nordea’s aim is tobuild a well-diversified bankingbusiness, also including a householdfranchise. The ambition going forwardis to introduce a similar segmentationas in the Nordic, Baltic and Polishoperations.

Distribution strategyNordea is applying a multi-channelstrategy in the Baltic countries, Polandand Russia, where the branch networkis the key for developing the customerrelationships, supported by contactcentres and e-banking capabilities.

In 2007, Nordea established 10 newcustomer service units in the Balticcountries, making the total number 54.Also, a contact centre was establishedin Latvia and a new version of PrivateNetbank was launched in all Balticcountries.

In Poland, Nordea had 85 branchesend 2007. The execution of the currentplans, the opening of up to 150 newcustomer service units in the 2007-2009time period, will develop theoperations further and increase thepenetration in all customer segmentsover the coming years.

In Russia, the branch network ofOrgresbank is primarily concentratedto the Moscow and St. Petersburgregions and the main target goingforward is to further increase thecoverage in these areas. Also outside

the two major cities, Orgresbank hasincreased its coverage during 2007.

Global and European Business linesShipping and Oil services customersare served with a global customerstrategy with the same concept as inthe upper corporate segments.International Private Bankingcustomers are served on a Europeanbasis with similar concepts and inclose cooperation with the serving ofNordic Private Banking customers.

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The customer programme is a valueproposition embedding brand promise,pricing, service level and productsolutions into a transparent andcompetitive offer. On most productsNordea operates with non-negotiableand transparent pricing differentiatedin three levels – one for each segment.The non-negotiable pricing is essentialin making it possible to ensure thatGold customers get the best prices.Also non-negotiable pricing makes itpossible to consistently sell in alldistribution channels, including theNetbank.

Gold customers The winning formula to leverage thepotential in the Gold segment is tohave a clear emphasis on relationshipbanking, creating great customerexperiences with the aim of servicing100% of the customer’s wallet as thecustomer’s lifetime financial partner.

Value propositions For no entrance fee, Gold customersare promised the best Nordea has tooffer: individual solutions at bestprices.

Individual solutions by personalservice Gold customers get the best servicewith a personal banker trained to actproactively and supported by a largerange of specialists when designingsolutions to satisfy the customersindividually. Gold customers areoffered a regular 360 degree check oftheir economy based on advisory tools.

A 360-degree meeting is a full-rangefinancial analysis and advisory serviceto the customer

Individual solutions using the beststandardised products Gold customers are offered superiorproducts, including free GOLD creditcards with travel and purchaseinsurance.

At a fair best price Gold customers are being offeredNordea’s best prices without having tospend time on bargaining.

Priority in access to service Gold customers have direct access tothe personal banker within openinghours. Also outside opening hoursGold customers have access tosuperior advisory service by means ofpersonal meetings with the personalbanker or qualified advisers in contactcentres.

Business development The focus on developing the potentialin the customer base continues to besuccessful, indicated by a 7% increasein the number of Gold customers in2007. More than one fifth of thesecustomers are new customers toNordea.

In 2007, business development withpersonal customers continued to bestrong in all product areas through thecustomer programme and 360-degreemeetings.

Nordic Private BankingNordea is the largest private bankingsupplier in the Nordic Region. Theposition varies across the Nordicmarkets reflecting differences in thelegacy business. The approx. 90,000Nordic customers are served out of 73Private Banking units (co-located withregional branches) and 7 PrivateWealth Management units. The lattercater to the high-net-worth sub-segment of customers with assetsunder management above EUR 1m.

Nordic Private Banking has acommon platform in place in allNordic markets with the businessbeing based on the same serviceconcepts, customer segmentation andproduct offerings.

Value propositionNordic Private Banking customers inNordea receive individual services by aprofessional and active adviser whotakes into account the entirety of thecustomer’s financial needs. The varietyof needs is tackled with tailormadeproducts and services.

Personal customers

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Nordea has a clear emphasison relationship banking - forpersonal and for corporatecustomers

Core in Nordea’s corporate strategy isto create value by relationshipbanking, through a named relationshipmanager responsible for developingand organising the customerrelationship and having a total view onthe customer’s business and financialaffairs.

Relationship banking means thatNordea promises the customer a long-term relationship, including thewillingness to use the bank’s balancesheet to commit capital within a shorttime frame.

The purpose in all segments is tocreate great customer experiences. Thisrequires understanding of thecustomer’s business as the startingpoint for all banking activities, whetherbuilding the relationship or whencreating solutions and developingconcepts. Corporate customers aresegmented according to product andservice needs, complexity and businessvolumes.

The value proposition towardsdifferent segments differ in relation to:• how much the servicing of the

customers is based on individualcustomer analysis andunderstanding,

• the level of complexity in thecustomers’ business and the requiredservices,

• the level of expert support,• to what extent the solutions for

customers are completelyindividually designed,

• the level of managements’involvement in the customerrelationship.

Corporate Merchant BankingThe Corporate Merchant Bankingsegment serves Nordea’s 1,000 largestcustomers in one central unit in eachmarket.

Nordea holds the leading position inthis segment in the Nordic countries,with strong relationships to themajority of the large corporates in theregion. Key strengths for Nordeatowards this customer group are ahighly competent and dedicated staff,a large balance-sheet capacity andproven placing power in the capitalmarkets.

Shipping and Oil services Nordea is one of the world-leadingproviders of financial services to theshipping, offshore and oil servicesindustries, benefiting from its extensiveindustry knowledge and sizeableunder-writing capacity. In Oslo, acompetence centre is located, creatingcritical mass to service Nordic andglobal shipping customers.

Large corporate customersFor the 15,000 customers belonging tothe segment Large, Nordea’scompetitive strength is to combine thelarge Nordic resources andcompetences of the Group with localpresence. Customers in this segmentare serviced by senior relationshipmanagers (SRM) in 63 corporatecompetence centres covering theNordic region.

The SRM is the customers’ maincontact to the bank and the SRM hasthe responsibility to create long-term

relationships with the customer. Each SRM is supported by the customerteam of product specialists, focusingon designing solutions fulfilling thecustomer needs.

Medium-sized corporate customersNordea serves 55,000 medium-sizedcustomers by relationship managerssituated in selected branches. Thevalue proposition and service conceptsfor medium-sized corporate arefocused on relationship, product rangeand local presence. Nordea’scompetitive edge is to leverage thecompetence and downstreamingproduct solutions, such as egderivatives products and other capitalmarkets products, developed to servecustomers in the higher segments.

Small corporate customersNordea serves a large number, approx.525,000, of smaller customers byCustomer Advisers in the Branches. Inparticular, this relates to the customershaving both personal and corporatebusiness in Nordea. A significantgrowth opportunity arises from crossfertilising the business opportunity bya dedicated sales force capable ofhandling household products as wellas corporate products. The smallestcorporate customers having lessadvanced financial needs are servicedthrough concepts based on a mass-market approach, scale and multi-channel competencies.

Corporate customers

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People forming Great Nordea

Nordea’s 35,000 employees team

up to create great customer

experiences for the almost 10

million customers in Nordea.

They focus on building strong

relationships with customers and

on living the mission – making it

possible.

It’s all about people While products and strategiesrelatively easily can be copied, peoplein the end are the most determiningcompetitive factor in the financialservices industry.

This perspective has become evenmore visible in the revised Nordeavision:"The leading Nordic bank, acknowledgedfor its people, creating superior value forcustomers and shareholders".

Also, one of the three new values is'It's all about people'. This valueimplies a strengthened focus on peopleand leadership to enable Nordea toreach its growth targets.

Revised People strategyIn order to remain in the lead, the rightcompetencies and attitudes need to bein place to deliver on our customers’expectations, adjust to changes, and toperform – today and in the future. Thisis reflected in a new People strategy,developed in 2007. The revised People

strategy is addressing five focus areas:• employer branding,• recruitment and on-boarding,• competence management,• developing talent and• compensation management.

Nordea as an attractive employerNordea’s ambition is to be the mostattractive employer in the financialsector in the Nordic region in order toattract, develop and retain highlycompetent employees.

There is a clear inter-connectionbetween financial results and thesatisfaction and motivation ofemployees: satisfied staff performsbetter in all aspects, which in turninfluences profitability positively andvice versa. A comprehensive survey,Employer Satisfaction Index (ESI) –covering attitudes and satisfaction iscarried out every year. It shows theemployees’ perception of theleadership in Nordea, of theirworkplace and of the company ingeneral. The results are an importanttool used by managers in theirongoing individual dialogues withtheir teams in order to continuouslyimprove.

Last year’s survey proves that theattitudes and levels of satisfaction haveimproved in many areas. The Nordeaemployees are becoming even moreproud of their company and theyrecommend Nordea to others. Stillexternal surveys have shown thecurrent position to be below targetexpectations when it comes to theexternal employer brand compared toour peer group. Therefore severalactivities were initiated during 2007.

As students are a prioritised targetgroup a focus was put on employerbranding activities in most universitiesand business schools across the Nordiccountries.

Great leadershipThe employees’ perceptions of theirimmediate manager performanceremain in this year’s ESI survey at ahigh 76 (out of 100), compared to theNordic financial labour market ingeneral (72). The most importantdrivers for employees to be satisfiedand motivated are the content of theirdaily work and opportunities forcompetence development. A new setof leadership competencies based onthe new values have been rolled outhighlighting how managers should actin Nordea. The professional leadershiptraining programmes are tailormade togo hand in hand with implementingthe business strategies covering allfrom potential managers to topexecutives.

Recruiting the right peopleNordea acknowledges the strengths ofdiversity in terms of gender, age,education and different culturalbackground. We also acknowledge thatemployees have different key personaldrivers and career aspirations. In 2007,3,000 new employees have beenrecruited and welcomed into theNordea organisation.

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Corporate Social Responsibility

(CSR) is the concept whereby a

company maintains and enhances

its relations with internal and

external stakeholders that reach

beyond the purely financial

performance of its business.

Reputation, trust and good

business conduct are all important

end products of CSR.

Nordea strives for CSR to be anintegrated element of the Group’sbusiness. The CSR policies andprocedures have been developed asreflections of the Group’s businessstrategy and designed to support ourbusiness objectives. Managingbusiness ethics and the various riskcategories related to the reputation ofand trust in Nordea’s operations andbusiness, are important elements ofprotecting and enhancing shareholdervalue and performing the role as aleading provider of financial services.

Following the introduction of newNordea values in 2007, a processleading towards a new CSR strategywas initiated. The new strategy will becompleted during the first half of 2008and implemented stepwise. The overallpurpose of the new CSR strategy andits related activities is to support theNordea values and the Group’s

strategic move towards the state ofGreat Nordea.

A good corporate citizenCitizenship in general means being aresponsible and active member ofsociety. An inherent element of theNordea Corporate Vision is to be agood corporate citizen, ensuringconfidence and trust in the marketswhere we operate. Nordea does so in anumber of ways, and strive tointegrate this approach into howNordea’s managers and employeesthink and act, in order to build andmaintain an organisation with highlevels of integrity, reliability andresponsibility. The Nordea CorporateCitizenship Principles have since 2002served as the main standard of goodcorporate citizenship.

Business conductA key focus within Nordea’s CSR workis on business conduct and ethics.There is a two-fold reason for this.One reason is that a common set ofvalues and behavioural guidelines is acore element in building a commoncorporate culture. The other mainreason is operational risk. Operationalrisks, for a bank, stem from humanbehaviour, procedures and systems.Human behaviour is at the core of thisbecause it is people who makejudgements and decisions, defineprocedures and make systems. In otherwords, appropriate human conduct isan important risk control mechanism.Nordea has developed a groupwidestandard of business ethics, theNordea Code of Conduct and alsospecified that in a Guide to SoundBusiness Relationships.

Dialogue and cooperationNordea communicates and interactswith the larger society the Group is apart of. Nordea supports the UNGlobal Compact, which is a set of tenprinciples for responsible business,and also the UN EnvironmentalProgram Finance Initiative (UNEP FI),a charter and a cooperation forumwhere financial institutions addressenvironmental aspects of theirbusiness and operations.

New CSR initiatives during 2007• Nordea adopted the Equator

Principles in February 2007• Nordea (Savings and Asset

Management units) signed theUnited Nations Principles forResponsible Investments (UNPRI) in November 2007.

• An internal Social ResponsibleInvestments (SRI) policy has beendeveloped and is being implementedstepwise starting Q3 2007 byestablishing operational procedures,organisation and partnering withthird parties helping Nordeaexecuting the strategy.

• Nordea is extending the scope of thetools for evaluating environmentalrisks in corporate lending also toassess social risk. The extended toolswill be implemented during 2008.The extended scope is also reflectedin the credit policy and strategy aswell as in the credit instructions.

• A strategy process leading towards anew Nordea CSR strategy wasinitiated during the autumn. Thiswork will continue throughout 2008.For further information on CSR inthe Nordea Group, please refer towww. nordea.com/csr.

Corporate Social Responsibility

,The leading Nordic bank,acknowledged for its people,creating superior value forcustomers and shareholders

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Nordea reports a strong result in 2007,driven by strong revenue growth. Therecord result was supported by theconsistent execution of Nordea’sorganic growth strategy. The numberof customers in the premiumsegments, private banking and Gold,increased. Volume growth continued inall areas. Deposit margins improved,while lending margins were underpressure.

Total income increased by 7%compared to 2006. On a comparablebasis, when excluding the income ofEUR 120m from the deposit guaranteerefund in Finland in 2007 and thecapital gain of EUR 199m from the saleof shares in International MoscowBank (IMB) in 2006, income increasedby 8%.

Total expenses increased by 6%,following increased business volumes,investments in growth areas and wageinflation. With an achieved gapbetween growth in income and cost of2.0 %-points, calculated on acomparable basis, the target for theyear was met. The gap target wasreached, while significant investmentshave been made in line with thecommunicated growth strategy anddespite difficult market conditionsduring the autumn.

Profit before loan losses was up 8%to EUR 3,820m and operating profitwas EUR 3,883m, up 2%. Risk-adjusted profit increased by 15%.Return on equity was 19.7% and thecost/income ratio was stable at 52%.Loan losses were positive at EUR 60m.

The financial market turmoil in thesecond half of 2007, which stronglyaffected global financial markets, hashad limited effect on Nordea’s result,with the impact mainly restricted tothe third quarter. This is due toNordea’s limited direct and indirectexposure to the sub-prime market aswell as limited exposure to credit-linked structured investment vehicles.Nordea has also benefited from itshigh-quality balance sheet, welldiversified business profile, strong

liquidity position and solid fundingname.

Nordea’s strong performancecontinued in the fourth quarter,despite the difficult market conditions.The positive trends from previousquarters continued, with double-digitlending volume growth and strongincrease in deposits. Lending growthwas in particular strong in thecorporate segment. Despite signs ofstagnating house prices across theNordic markets, mortgage loansincreased at double-digit rates also inthe fourth quarter. Deposit volumegrowth continued, driven by stronginflows into savings accounts.

Assets under Management werelargely at the same level as end-2006,with inflows in Private Banking, but atotal net outflow reflecting a shift fromfund products to savings accounts withhigh and stable return.

IncomeTotal income increased by 7% to EUR7,886m. On a comparable basis, whenexcluding non-recurring items, totalincome increased by 8%. Net interestincome grew by 11% to EUR 4,282m,mainly driven by strong lending anddeposit volume growth and increaseddeposit margins. Lending grew atdouble-digit rates in all majorsegments, which compensated for themargin pressure experienced duringthe year. Total lending to the publicincreased by 14% to EUR 245bn. Thegrowth rate was stable throughout theyear.

Deposit volumes increased by 12%to EUR 142bn, driven by increases inboth the household and corporatesegments. In particular, inflow intosavings accounts was strong, wherevolumes increased by 21% comparedwith end-December last year. Thisreflects customers’ demand for low-risk products and is supported byNordea’s strategy to offer marketcompetitive interest rates. The netinflow on savings accounts was EUR7.2bn during the year. Deposit margins

improved following higher marketinterest rates, although the stronggrowth in savings accounts led tounchanged average deposit margins inthe fourth quarter.

Strong growth in corporate lendingwas recorded in the Nordic region inall segments, even though demandrelated to M&A transactions softenedduring the autumn. Corporate lendinggrowth the last twelve months wasapprox. 25% in Norway, 15% inDenmark and Sweden and approx.10% in Finland. Corporate lendingmargins decreased during the year,reflecting fierce competition andfinancial strength among corporatecustomers leading to higher ratings.Nordea’s ambition to increase the risk-adjusted margins will continue.

In Institutional and InternationalBanking, net interest income increasedby 39% following strong lendinggrowth mainly in New EuropeanMarkets, but also supported by strongdevelopment in Financial InstitutionsDivision and Shipping, Oil Servicesand International Division. In NewEuropean Markets, lending on acomparable basis, excluding Russia,increased by 77%, with a declininggrowth rate in the fourth quarter, anddeposits increased by 35%. This led toan increase in net interest income of45%. The increase in lending in NewEuropean Markets was well balancedbetween the markets and is an effect ofthe selective growth strategy, meaningcontinued prudent risk managementand focus on customers in thepremium segments.

Assets under Management (AuM)decreased by 1% to EUR 157bncompared to last year, even thoughaverage AuM during 2007 was higherthan in 2006. In 2007, a net outflow ofEUR 2.4bn was reported, mainly dueto customers moving assets fromequity funds into low-risk savingsaccounts.

Net commission income increasedby 3% to EUR 2,140m. Lending-relatedcommissions increased by 12% to EUR

Result summary 2007

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394m, reflecting the strong lendinggrowth as well as increased guaranteefees. Savings-related commissionsgrew in total by 7% to EUR 1,408m.Asset management commissionsincreased by 2%, following modestlyhigher average AuM in the year and anegative product mix effect, withoutflows from various equity fundswith high margins to fixed incomeproducts.

Total payment commissions were upby 5% to EUR 776m, mainly driven bya strong increase in card commissionsof 16%. However, volume and pricepressure on domestic paymentsdampened the growth rate. Totalcommission expenses increased by17% to EUR 594m, reflecting increasedbusiness volumes and the launch ofcredit cards to gold customers. Thesecards include value-added servicessuch as free insurance for customers.

Net gains/losses on items at fairvalue increased by 15% to EUR1,187m, despite the difficult marketconditions in the second half of theyear. Net gains/losses in Customerareas increased by 10% to EUR 1,048m,driven by a high activity level in allsegments within the Capital Marketsproduct area and increased penetrationof Nordea’s corporate customer base.In Group Corporate Centre, mainlyGroup Treasury, net gains/losses wereEUR 156m, following successful assetand liability management and theappreciation of the OMX shares whichcontributed with approx. EUR 90m,compared to EUR 17m in 2006. In Life,net gains/losses increased by 8% toEUR 283m.

ExpensesTotal expenses increased by 6% to EUR4,066m. Close to half of the increasewas due to investments in growthareas, ie increased advisory capacitywithin Nordic Private Banking, GrowthPlan Sweden as well as investments inNew European Markets, includingOrgresbank. Orgresbank is included inthe Income statement from the second

quarter. The other half, or approx. 3 %-points, was due to increased businessvolumes and underlying inflation,partly compensated by continuedefficiency gains.

Staff costs increased by 6% to EUR2,388m, reflecting an increasedambition level within growth areas. Intotal the number of FTEs has during2007 increased by approx. 2,500 or 8%compared to end of 2006. ExcludingOrgresbank, which has contributedwith approx. 1,400 FTEs, the number ofFTEs has increased with approx. 1,100,or 4%. The cost increase is alsoexplained by general wage inflationand higher variable salaries.

Other expenses amounted to EUR1,575m, up by 6% compared to lastyear, due to higher business volumes,investments in growth areas andstrategic initiatives.

The cost/income ratio was stable at52%.

Loan lossesNet loan losses were positive at EUR60m reflecting that recoveries weremaintained at a high level while thereat the same time was limited need fornew provisions. The quality of thecredit portfolio remains strong.

Net profitNet profit decreased by 1% to EUR3,130m. This corresponds to a returnon equity of 19.7% and earnings pershare of EUR 1.20.

Outlook 2008The turbulent development ininternational capital markets since lastsummer, with international equitymarkets being heavily affectedbeginning of 2008, has significantlyincreased the uncertainty for 2008.

Nordic GDP growth is expected toslow down in 2008, however onaverage still reach above 2%. In theestimates for 2008, Nordea assumes nosignificant changes in average interestrates during the year. Lower interestrates would negatively impact

Nordea’s income growth.Following the strong performance

from growth initiatives, Nordea willcontinue with investments in growthareas, in the Nordic countries and inNew European Markets. The increasein the cost base, resulting from growthinitiatives, is for 2008 expected to beEUR 100-120m. These initiatives andincreased wage inflation are expectedto lead to a somewhat higher costincrease in 2008, compared with 2007.

If the economic growth slows downmore than now anticipated, Nordeawill review the level of growthinvestments.

Nordea’s long-term target,formulated in 2006, is to double therisk-adjusted profit in seven years.Based on the forecast for GDP growthfor the Nordic region, as well as forinterest rates, the risk-adjusted profit isin 2008 expected to grow in the rangeof 5-10%.

The overall quality of the creditportfolio remains strong. Nordea has awell diversified portfolio both in termsof geography, with an almost equaldistribution between the four Nordiccountries, and in terms of industry andcorporate/household distribution. Alsoin the New European Markets, Nordeais confident about its credit riskexposure, even though the macro-economic situation is likely togradually affect credit quality. This hasbeen recognised by establishing groupwise provisions.

A change in macro-economicoutlook is likely to influence the creditclimate over time. For 2008 Nordeaexpects some net loan loss charges, asreversals of previously madeprovisions are likely to decrease.

The average standard tax rate forNordea’s business based on current taxregulations is approx. 26%. Theeffective tax rate for 2008 is expected tobe 3-5 %-points lower than thisaverage.

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Nordic Banking

Within Nordic Banking, Nordeaservices 6.8 million personal customerssigned-in for customer programmeand 600,000 active corporatecustomers. The business is conductedthrough 13 Regional Banks operatingin the four Nordic markets. NordicBanking is Nordea’s largest customerarea, which serves personal andcorporate customers in the Nordicregion.

Result 2007In 2007, income in Nordic Bankingincreased by 8% to EUR 5,963m. InDenmark, Norway and Sweden theincome increased by between 6 and7% while the income growth inFinland was 12%. Nordea’s strongfunding base in Finland combinedwith increased interest level was one ofthe key drivers for the double-digitincome growth.

Net interest income increased by10% to EUR 3,666m. Strong volume

growth in lending, 14%, offset thepressure on lending margins. Lendingmargins were down from last year,reflecting continued competition in allsegments. The deposits growth wasdouble digit, 11%, and marginsincreased over the year.

Net commission income increasedby 2% to EUR 1,772m impacted byincreased lending and guaranteecommissions, but also a decline inpayment commission income andlargely unchanged AuM.

Net gains/losses increased by 17% toEUR 460m reflecting the successfulselling of Capital markets products tocorporate customers.

Total expenses increased by 4% toEUR 3,002m. Loan losses were positiveat EUR 55m.

The number of employees in Nordicbanking increased by 456 during 2007.The increased number of employeessupported the growth strategy andwas mainly related to Growth Plan

Sweden, the regional banks in Norwayand increased staff in the ContactCentres.

Operating profit increased by 2% toEUR 3,016m. RAROCAR was 26%(25%). The cost/income ratiocontinued to improve and dropped to50% (52%).

Nordic Banking, operating profit by market

Nordic Banking Nordic Banking Nordic Banking Nordic Banking NordicTotal Denmark Finland Norway Sweden Functions

EURm 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006Net interest income 3,666 3,328 1,036 956 1,065 927 544 511 984 900 37 34Net fee and commission income 1,772 1,731 489 511 509 464 170 166 604 600 0 -10Net gains/losses on items at fair value 460 393 155 125 111 98 80 74 114 95 0 1Equity method 25 15 25 15 0 0 0 0 0 0 0 0Other operating income 40 79 2 9 11 28 7 4 15 5 5 33Total income incl. allocations 5,963 5,546 1,707 1,616 1,696 1,517 801 755 1,717 1,600 42 58Staff costs -1,140 -1,064 -360 -341 -292 -283 -163 -149 -300 -279 -25 -12Other expenses -1,836 -1,784 -462 -433 -455 -439 -283 -279 -632 -634 -4 1Depreciations etc. -26 -28 -2 -9 -2 0 -4 -6 -8 -8 -10 -5Expenses incl. allocations -3,002 -2,876 -824 -783 -749 -722 -450 -434 -940 -921 -39 -16Profit before loan losses 2,961 2,670 883 833 947 795 351 321 777 679 3 42Loan losses 55 276 1 153 60 28 7 103 -26 -1 13 -7Operating profit 3,016 2,946 884 986 1,007 823 358 424 751 678 16 35

Cost/income ratio, % 50 52 48 48 44 48 56 57 55 58RAROCAR, % 26 25 27 26 38 33 18 19 24 23Other information, EURbnLending 207.2 182.1 62.7 54.5 47.5 42.4 37.2 30.4 59.8 54.8Deposits 110.1 99.3 31.6 28.1 30.4 26.4 18.8 16.6 29.3 28.1Economic capital 7.3 6.7 2.2 2.0 1.9 1.6 1.3 1.1 2.0 2.0

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Institutional and International Banking

Institutional and International Bankinghas the global customer responsibilityfor financial institutions and shipping,offshore and oil services companies. Inaddition, Nordea’s banking activities inPoland, the Baltic countries and Russiaare a part of Institutional andInternational Banking. The activitiescomprise full-service bankingoperations in these markets.

Result 2007The business activity within IIB was ona high level during 2007 and solidgrowth was recorded in all divisions.The market turmoil had an impact onsome of the customer segments withinthe Financial Institutions Division, butless so for the other divisions.

Total income reached EUR 868m forthe year, down 6% following higherbusiness volumes, but negativelyaffected by other income, which waslower than 2006, due to the capitalgain of EUR 199m from IMB share

sales last year. On a comparable basis,total income was up 12%. The profitand loss statement of Orgresbank wasconsolidated as of the second quarterand the bank contributed with a totalincome of EUR 63m.

Net interest income increased by21% on a comparable basis, ieexcluding Russia, supported by highgrowth in lending as well as depositvolumes. Lending volumes increasedby 35% on a comparable basis anddeposits grew by 52%. Netcommission income reached EUR257m in 2007, up 8% on a comparablebasis. The customer activity continuedto be on a high level throughout theyear. Net gains/losses at fair valueincreased by 26%, with strongperformance in all areas.

Total expenses amounted to EUR394m in 2007, up 10%, excludingOrgresbank. Main drivers behind theincrease are a higher number of FTEsand increased variable salaries, but

also investments within NewEuropean Markets. The number of full-time equivalents (FTEs) was approx.4,200 by the end of 2007.

The growth in number of staff in2007, equals to approx. 1,800 FTEs,mainly attributable to New European Markets.

Profit before loan losses amountedto EUR 474m in 2007, down 21% andon a comparable basis, profit beforeloan losses was up 13%. Operatingprofit decreased by 17% or increased20% on a comparable basis, alsoattributable to positive net loan losses,positively affected by reversals in thetransfer risk reserve and negativelyaffected by an increased groupwiseprovision for the Baltic countries.Orgresbank contributed with an op-erating profit of EUR 25m, with astrong fourth quarter. The RAROCARwas 38% in 2007 and the C/I-ratio was 45%.

Institutional and International Banking, operating profit by main area

Financial Shipping, Oil NewInstitutions services & European of which

Total International Markets Russia Other EURm 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006Net interest income 424 304 65 50 170 155 168 77 56 - 21 22Net fee and commission income 257 232 136 119 54 45 57 32 7 - 10 36Net gains/losses on items at fair value 178 141 138 133 13 17 26 14 -1 - 1 -23Equity method 1 30 0 0 0 0 0 0 0 - 1 30Other operating income 8 212 0 9 0 3 4 2 1 - 4 198Total income incl. allocations 868 919 339 311 237 220 255 125 63 - 37 263Staff costs -143 -100 -31 -30 -37 -32 -72 -34 -26 - -3 -4Other expenses -243 -214 -143 -140 -13 -11 -67 -40 -12 - -20 -23Depreciations etc. -8 -8 0 0 0 -2 -7 -7 -1 - -1 1Expenses incl. allocations -394 -322 -174 -170 -50 -45 -146 -81 -39 - -24 -26Profit before loan losses 474 597 165 141 187 175 109 44 24 - 13 237Loan losses 5 -19 0 0 2 3 -1 -5 1 - 4 -17Disposals of tangible and intangible assets 0 0 0 0 0 0 0 0 0 - 0 0Operating profit 479 578 165 141 189 178 108 39 25 - 17 220

Cost/income ratio, % 45 35 51 55 21 20 57 65 62RAROCAR, % 38 66 64 54 38 43 23 19 19Other information, EURbnLending 24.6 17.0 1.9 1.5 11.1 9.4 9.8 4.6 1.6 0.0 1.8 1.5Deposits 30.9 20.0 20.3 13.0 6.7 4.5 3.7 2.3 0.6 0.0 0.1 0.1Economic capital 1.0 0.6 0.2 0.2 0.4 0.3 0.4 0.2 0.1 0.0 0.0 0.0

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Asset Management and Life, product dimension result

Assets under Management (AuM)were EUR 157.1bn end of 2007, downEUR 1.0bn from end of 2006. Thedecrease was due to overall netoutflow of EUR 2.4bn while financialmarket development contributedpositively to AuM growth. However,the financial market volatility in thesecond half year of 2007 lowered thepositive effect of market appreciationconsiderably.

The growth success of PrivateBanking continued in 2007 with netinflow of EUR 4.3bn. Nordic PrivateBanking grew significantly in 2007with approx. 150 new colleagues netand 13,000 new customers, an increaseby 16% from last year.

In spite of volatile equity marketsand a general increase in interest rate,the full-year investment return endedat a level of 3.6%, reflecting a balancedasset mix. The financial buffers were

only down EUR 46m compared to lastyear ending at EUR 2,231m, or 10% ofthe Life provisions. Nordea has asatisfactory level of buffers in all mar-kets.

Total income in Asset Managementwas EUR 761m in 2007, up 4%compared with last year. Incomegrowth was dampened by lower AuM. The product result was EUR380m, up 4%.

The Life & Pensions product resultfor 2007 was an all time high at EUR274m, up 13%.

The market consistent embeddedvalue (MCEV), the method by whichNordea measures value creation in itsLife business, was EUR 3,189m at theend of 2007 compared to EUR 2,873mend 2006. Value of new business wasEUR 194m reflecting a good premiumincome from new sales.

Volumes and inflows - Asset Management

2007 2006EURbn 2007 Inflow 2006 InflowNordic Retail funds 34.4 -2.7 37.2 -4.1European Fund Distribution 3.6 -1.8 5.7 -1.6Private Banking Activities

Nordic Private Banking 45.7 3.7 42.3 5.7International Private Banking 9.6 0.6 9.2 -0.1

Institutional customers 24.9 -2.5 26.1 3.2Life & Pensions 38.8 0.3 37.6 1.0Total 157.1 -2.4 158.1 4.1

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Risk, liquidity and capital managementare key success factors in the financialservices industry. Exposure to risk isinherent in providing financialservices, and Nordea assumes a varietyof risks in its ordinary businessactivities, the most significant beingcredit risk related to lending and othermain risks being market risk,operational risk and liquidity risk.

The maintenance of risk awarenessin the organisation is incorporated inNordea’s business strategies. Nordeahas clearly defined risk, liquidity andcapital management frameworks,including policies and instructions fordifferent risk types and for the capitalstructure.

Prudent risk managementThe Chief Risk Officer (CRO) isresponsible for the Group’s credit,market, operational and liquidity riskmanagement framework, includingpolicies, instructions and guidelines aswell as for the credit decision processand the credit control processes.

Each customer area, product areaand risk-taking unit is primarilyresponsible for managing the risks inits operations, including identification,control and reporting.

Credit risk is the risk of loss ifcounterparts of Nordea fail to fulfiltheir agreed obligations and that thepledged collateral does not coverNordea’s claims.

Market risk is the risk of a loss in themarket value of portfolios andfinancial instruments or an adverseeffect on earnings or equity capital as aresult of movements in financialmarket variables.

Operational risk is defined as therisk of direct or indirect loss, ordamaged reputation resulting frominadequate or failed internal processes,from people and systems, or fromexternal events.

Strong liquidity positionLiquidity risk is the risk of being ableto meet liquidity commitments only atincreased cost or, ultimately, beingunable to meet obligations as they falldue.

Nordea’s liquidity management isbased on policy statements, whichstipulate that Nordea’s liquiditymanagement reflects a conservativeattitude towards liquidity risk. Nordeastrives to diversify the Group’s sourcesof funding and seeks to establish andmaintain relationships with investors

in order to manage the market access.A broad and diversified funding

structure is reflected by the strongpresence in the Group’s four domesticmarkets in the form of a strong andstable retail customer base and thevariety of funding programmes.

Efficient use of capitalThe Chief Financial Officer (CFO) isresponsible for the capital planningprocess, including capital adequacyreporting and for liquidity and balancesheet management.

Nordea strives to attain efficient useof capital through active managementof the balance sheet with respect todifferent asset-, liability- and riskcategories. The goal is to enhancereturns to the shareholder whilemaintaining a prudent risk and returnrelationship.

The capital adequacy ratios, Tier 1ratio and Capital ratio, are calculatedas Tier 1 capital and Capital baserespectively in relation to the Group'srisk weighted amounts (RWA),calculated in accordance with the BaselII framework. RWA is a measure of therisks in assets and financialinstruments.

Nordea aims at a Tier 1 capital ratioabove 6.5% and a total capital ratio notlower than 9%. Nordea maintains itstarget capital via its dividend andshare buy-back policy as well as activemanagement of its risk profile.

Risk, Liquidity and Capital management

Capital adequacy ratios, EURbn

31 Dec 2007 31 Dec 2006RWA with transition rules 204.6 185.4RWA Basel II (pillar 1) before transition rules 171.5 -Regulatory Capital requirement with transition rules 16.4 14.8Capital base 18.7 18.2Tier 1 capital 14.2 13.1

Tier 1 ratio with transition rules (%) 7.0% 7.1%Tier 1 ratio before transition rules (%) 8.3% -Capital ratio with transition rules (%) 9.1% 9.8%

Capital requirement and RWA

31 Dec 2007 31 Dec 2007 31 Dec 2006Capital Basel II Basel I

EURm requirement RWA RWACredit risk 12,556 156,952 176,329IRB foundation 6,709 83,865 -- of which corporate 5,899 73,736 -- of which institutions 744 9,302 -- of which other 66 827 -Standardised 5,387 67,342 -- of which retail 3,953 49,414 -- of which sovereign 19 243 -- of which other 1,415 17,685 -Basel I reporting entities 460 5,745 -Market risk 284 3,554 9,069Operational risk 878 10,976 -Subtotal 13,718 171,482 185,398

Additional capital requirement according to transition rules 2,649 33,103 -Total 16,367 204,585 185,398

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Income statement

GroupEURm 2007 2006 Change %

Net interest income 4,282 3,869 11Net fee and commission income 2,140 2,074 3Net gains/losses on items at fair value 1,187 1,036 15Equity method 41 68 –40Other income 236 318 –26Total operating income 7,886 7,365 7Staff costs –2,388 –2,251 6Other expenses –1,575 –1,485 6Depreciation of tangible and intangible assets –103 –86 20Total operating expenses -4,066 –3,822 6

Profit before loan losses 3,820 3,543 8Loan losses 60 257Disposal of tangible and intangible assets 3 8Operating profit 3,883 3,808 2Income tax expense –753 –655 15Net profit for the year 3,130 3,153 -1

Business volumes, key items

EURbn 2007 2006 Change %Loans and receivables to the public 244.7 214.0 14Deposits and borrowings from the public 142.3 126.5 12of which saving deposits 40.8 33.6 21

Assets under management 157.1 158.1 –1Technical provisions, Life 32.1 30.8 4Equity 17.2 15.3 12Total assets 389.1 346.9 12

Ratios and key figures2007 2006

Earnings per share (EPS), EUR 1.20 1.21Earnings per share (EPS), after full dilution, EUR 1.20 1.21Share price, EUR 11.42 11.67Total shareholder return, % 6.4 32.3Proposed/actual dividend per share, EUR 0.50 0.49Equity per share1), EUR 6.58 5.89Shares outstanding, millions 2,593 2,591Shares outstanding after full dilution, millions 2,594 2,591Return on equity, %* 19.1 21.4Cost/income ratio, %* 52 53Tier 1 capital ratio, % 7.0 7.1Total capital ratio, % 9.1 9.8Tier 1 capital, EURm 14,230 13,147Risk-weighted amounts2), EURbn 205 185Number of employees (full-time equivalents, FTEs) 31,721 29,248Risk-adjusted profit, EURm 2,417 2,107Economic profit, EURm 1,585 1,412Economic capital, EURbn 10.2 9.3EPS, risk-adjusted, EUR 0.93 0.81RAROCAR, % 23.6 22.7MCEV, EURm 3,189 2,873

1) Equity excluding minority interests and revalutation reserves.2) RWA according to Basel I for the year 2006.

* For comparison reasons two major non-recurring items have been excluded. For 2007 the refund from the Finnish deposit guarantee system of EUR 120m and for 2006 the capital gain from theIMB sale of EUR 199m, both reported as Other income.

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Group EURm 31 Dec 2007 31 Dec 2006Assets

Cash and balances with central banks 5,020 2,104Treasury bills and other eligible bills 8,503 6,678Loans and receivables to credit institutions 24,262 26,792Loans and receivables to the public 244,682 213,985Interest-bearing securities 35,472 29,066Financial instruments pledged as collateral 4,790 10,496Shares 17,644 14,585Derivatives 31,498 24,207Fair value changes of the hedged items in portfolio hedge of interest rate risk –105 -37Investments in associated undertakings 366 398Intangible assets 2,725 2,247Property and equipment 342 307Investment property 3,492 3,230Deferred tax assets 191 382Current tax assets 142 68Retirement benefit assets 123 84Other assets 7,724 10,726Prepaid expenses and accrued income 2,183 1,572Total assets 389,054 346,890

Liabilities

Deposits by credit institutions 30,077 32,288Deposits and borrowings from the public 142,329 126,452Liabilities to policyholders 32,280 31,041Debt securities in issue 99,792 83,417Derivatives 33,023 24,939Fair value changes of the hedged items in portfolio hedge of interest rate risk –323 -401Current tax liabilities 300 263Other liabilities 22,860 22,177Accrued expenses and prepaid income 2,762 2,008Deferred tax liabilities 703 608Provisions 73 104Retirement benefit obligations 462 495Subordinated liabilities 7,556 8,177Total liabilities 371,894 331,568

EquityMinority interests 78 46

Share capital 2,597 2,594Other reserves –160 -111Retained earnings 14,645 12,793Total equity 17,160 15,322Total liabilities and equity 389,054 346,890

Assets pledged as security for own liabilities 17,841 18,136Other assets pledged 6,304 3,053Contingent liabilities 24,254 22,495Commitments excluding derivatives 87,006 80,601 Derivative commitments 3,405,332 2,538,489

Balance sheet

Nordea’s Annual General Meeting

(AGM) 2008 will be held on

Thursday 3 April at 13.00 CET at the

Aula Magna, at Stockholm

University, Frescativägen 6,

Stockholm.

Notification of participation etcShareholders who wish to participatein the AGM shall be entered in theshare register maintained by theSwedish Securities Register Center(VPC AB) not later than 28 March 2008and notify Nordea. Shareholderswhose shares are held in custodytherefore must temporarily re-registertheir shares in their own names withVPC AB in order to be able toparticipate. This applies for example toholders of Finnish Depositary Receiptsin Finland and holders of sharesregistered in Værdipapircentralen inDenmark. Such re-registration must beeffected in VPC AB in Sweden on 28March 2008. This means that the share-holder in good time prior to this datemust inform the trustee about this.

Shareholders registered in VPC ABin SwedenNotification of participation in theAGM must be made to Nordea BankAB (publ) at the latest on 28 March2008 at 13.00 Swedish time at thefollowing address: Nordea Bank AB(publ), Custody Operations, A 204, SE-

105 71 Stockholm, or by telephone +46 8 614 97 10, or by fax +46 8 791 76 45, or on Nordea’sweb page www.nordea.com.

Holders of Finnish DepositaryReceipts (FDR) in FinlandNotification of participation in theAGM and re-registration of shares toVPC AB must be made at the latest on27 March 2008 at 12.00 noon Finnishtime to Nordea Bank Finland Plc, 2698Corporate Actions, 00020 Nordea, orby telephone +358 200 35352 or +358200 15151 or fax +358 9 637 256, or onNordea’s web page www.nordea. com.

Shareholders registered inVærdipapircentralen in DenmarkNotification of participation in theAGM and re-registration of shares toVPC AB must be made at the latest on27 March 2008 at 12.00 noon Danishtime to Nordea Bank AB (publ), c/o VPInvestor Services, Helgeshøj Allé 61,P.O. Box 20, DK-2630 Taastrup, or bytelephone +45 4358 8866 or fax +454358 8867, or on Nordea’s web pagewww.nordea. com

Annual General Meeting 3 April 2008

,Visit nordea.comfor furtherinformation aboutthe Annual GeneralMeeting 2008

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This Summary contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance.Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations willprove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. Importantfactors that may cause such a difference for Nordea include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate and (iii)change in interest rate level. This report does not imply that Nordea has undertaken to revise these forward-looking statements, beyond what is required by applicablelaw or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.