Fourth Quarter and Full Year Results 2015

“2015 was a challenging year with exceptionally low interest rates, geopolitical tensions and market turmoil. Under these market conditions we are pleased to report an increase in the income level of 3% in local currencies². We also delivered a reduction in costs to EUR 4.7bn, in line with our target, and credit quality improved during the year. Consequently, operating profit improved by 7%2. The Common Equity Tier 1 ratio improved 80 bps to 16.5%. The Board proposes a dividend per share of EUR 0.64 compared to the actual dividend of EUR 0.62 per share for 2014.

The coming three years will be a transition period in which we will execute on our transformational change agenda in order to generate a truly digital bank. We will initiate certain key activities to manage the transition efficiently, which led to a restructuring charge of EUR 263m in the fourth quarter. Together with the investments in our core banking platform, the outcome of this transformational agenda will lead to a more efficient and straightforward structure and reduce administrative complexity to the benefit of our customers, employees and investors, and enable us to become truly “One Nordea”.

Full year 2015 vs. Full year 2014 (Fourth quarter 2015 vs. Fourth quarter 2014)¹:

• Total operating income +1% excl. non-recurring items², in local currencies +3%² (-2%², unchanged in local currencies²)
• Total expenses -4%², in local currencies -1%² (-2%², unchanged in local currencies²)
• Operating profit EUR 4,791m², +7%², in local currencies +9%² (-4%², in local currencies -2%²)
• Common equity tier 1 capital ratio 16.5%, up from 15.7%
• Cost/income ratio down to 47.1%² from 49.3%² (up 0.2 %-points from 48.9%²)
• Loan loss ratio of 14 basis points, down from 15 basis points (up 2 basis points to 17 basis points)
• Return on equity 12.3%², up from 11.5%² (down 0.3 %-points to 11.5%)
• Diluted EPS (total operations) EUR 0.91 vs. EUR 0.83 (EUR 0.21 vs. EUR 0.22)
• Proposed dividend per share of EUR 0.64 vs. actual dividend per share of EUR 0.62 for 2014

1 Key figures for continuing operations, following the divestment of the Polish banking, financing and life insurance operations.
2 Excluding non-recurring items (Q2 2014: restructuring charge EUR 190m, Q3 2014: gain from the divestment of Nets EUR 378m and Exchange rates used for Q4 2015 for income statement items are for DKK 7.46, NOK 8.94 and SEK 9.35. of intangible assets EUR 344m, Q4 2015: gain from divestment of Nordea’s merchant acquiring business to Nets of EUR 176m before tax and restructuring charge of EUR 263m).

About Nordea Asset Management

Nordea Asset Management (AuM 189bn EUR*), is part of the Nordea Group, the largest financial services group in Northern Europe (AuM 288bn EUR*). The business area offers Global investors exposure to a broad range of investment funds via its active distributors, which include banks, asset managers, independent financial advisors and insurance companies.

Nordea Asset Management has a presence in Cologne, Copenhagen, Frankfurt, Helsinki, London, Luxembourg, Madrid, Milan, New York, Oslo, Paris, Sao Paulo, Singapore, Stockholm, Vienna and Zurich. Nordea’s local presence goes hand in hand with the objective of being accessible and offering the best service to clients.
 
Its main product is the Nordea 1, SICAV, which encompasses a diverse spectrum of high quality products. Nordea 1, SICAV has constantly grown in terms of volume and has steadily gained in reputation. This growth is the result of the success of its active management of products belonging to the following asset classes: value stocks, growth stocks, theme-oriented funds and dedicated sector funds, as well as multi-asset strategies, long/short strategies, bond and money market funds.

*31.12.2015