Third Quarter Results 2016

“The third quarter was characterised by a stable environment with low volatility on financial markets but also continued low growth. Net interest income was down 4% in local currencies compared to the third quarter of 2015, but is up 1% from the previous quarter, and we continue to believe that the trough levels are now over. Net inflow to our assets under management was at an all-time-high of EUR 9.6bn and Nordea’s leading position in corporate advisory services was confirmed. In terms of deal value, we are ranked as number two in Europe as global co-ordinator of IPO’s. Total income increased by 10% compared to the third quarter in 2015, and the cost-to-income ratio improved by 1.0%-point to 48.1%. Our credit quality remains solid with a loan loss level at the 10-year average. Despite an increase in CET1 ratio of 160bps to 17.9%, the return on equity improved 1.2%-points to 11.6% compared to the third quarter of 2015.

We are now one year into our business and culture transformation journey. We are simplifying our legal structure, replacing the core banking platform and investing in our compliance functions, as well as appointing world-class experts, many of whom have an international background, to several key strategic positions. The overall aim is to continue building the bank our customers want us to be.”

Third quarter 2016 vs. Third quarter 2015 (Third quarter vs. Second quarter¹)

• Total operating income¹ +9 %, in local currencies +10% (+3% in local currencies)
• Total expenses +7%, in local currencies +8% (-1% in local currencies)
• Operating profit¹ +11%, in local currencies +11% (7% in local currencies)• Common equity tier 1 capital ratio 17.9%, up from 16.3% (up 110bps from 16.8%)
• Cost/income ratio¹ down to 48% from 49% (down 2%-points from 50%)
• Loan loss ratio of 16 bps, up from 13 bps (up 1 bps from 15 bps)
• Return on equity¹ 11.6%, up from 10.4% (up 0.2%-points from 11.4%)

Exchange rates used for Q3 2016 for income statement items are for DKK 7.4474, NOK 9.3801 and SEK 9.3713.
[1] Excl. non-recurring items (Q2 2016: gain related to VISA Inc.’s acquisition of VISA Europe amounted to EUR 151m, net of tax).

About Nordea Asset Management

Nordea Asset Management (NAM, AuM 214.5 bn EUR*), is part of the Nordea Group, the largest financial services group in Northern Europe (AuM 317 bn EUR*). NAM offers European and global investors exposure to a broad set of investment funds. We serve a wide range of clients and 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.

Nordea’s success is based on a sustainable and unique multi-boutique approach that combines the expertise of specialised internal boutiques with exclusive external competences allowing us to deliver alpha in a stable way for the benefit of our clients.  NAM solutions cover all asset classes from fixed income and equity to multi asset solutions, and manage local and European as well as US, global and emerging market products.

*Source: Nordea, 30.09.2016

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