Nordea Bank AB (publ.) - Financial Statement Release

Fourth Quarter and Full Year Results 2016

CEO Casper von Koskull’s comments on the results:

“2016 has probably been the most eventful year in the history of Nordea. On top
of macro and regulatory challenges for the sector, Nordea has addressed
significant media attention and started to implement a profound transformational
change agenda. Two major achievements have been the creation of a new legal
structure and launching a term deposit product on the new core banking platform.
Despite a challenging revenue situation in 2016, we have throughout the year
improved our net interest margin; for 2016, the inflow to our Assets under
Management reached an all-time high, and we have confirmed our leading Nordic
position in corporate advisory operations. Cost performance and credit quality
are in line with our guidance. Our CET1 ratio improved 190 bps in 2016 to 18.4%,
and RoE was 11.5%1,2. Nordea’s Board of Directors proposes a dividend per share
of EUR 0.65.

We also expect 2017 to be eventful, and we are well-prepared to deal with the
challenges. Our strategic direction is clear. Our strong balance sheet and
robust business model will enable us to further invest in our platform and
thereby transform the bank. We continue to focus on the creation of a fully
digital platform, improving customer satisfaction and transforming the
organisation to be best in class in compliance, with a strong ethics and a
values culture that can fulfil our obligations to society and deliver value to
our customers and shareholders.”

Full year 2016 vs. Full year 2015[1,2] (Fourth quarter 2016 vs. Fourth quarter
2015[1,2])

  ·  Net interest income EUR 4,727m, -5%; -3% in local currencies (0%, 0% in
local currencies)
  ·  Total operating income[1] EUR 9,754m, -2%; -1% in local currencies (+5%,
+5% in local currencies)
  ·  Total expenses[2] EUR 4,886m, +4%; +5% in local currencies (+9%, +10% in
local currencies)
  ·  Profit before loan losses EUR 5,127m, -1%; 0% in local currencies (+18%,
+17% in local currencies)
  ·  Net loan losses EUR 502m, +5%; +9% in local currencies (-9%, -6% in local
currencies)
  ·  Operating profit[1,2] EUR 4,366m, -9%; -8% in local currencies (+2%, +2% in
local currencies)
  ·  Common Equity Tier 1 capital ratio 18.4%, up from 16.5% (up 190 bps from
16.5%)
  ·  Cost/income ratio[1,2] 50%, up from 47% (up 2%-points from 49%)
  ·  Loan loss ratio[2] of 15 bps, up from 14 bps (down 1 bps from 17 bps)
  ·  Return on equity[1,2] 11.5%, down from 12.3% (up 140 bps from 11.5%)
  ·  Diluted EPS EUR 0.93 vs. EUR 0.91 (EUR 0.27 vs. EUR 0.21)

Exchange rates used for Q4 2016 for income statement items are for DKK 7.4453,
NOK 9.2943 and SEK 9.4675.
[1] Excl. non-recurring items (Q4 2015: gain from divestment of Nordea’s
merchant acquiring business to Nets of EUR 176m before tax, Q2 2016: gain
related to Visa Inc.’s acquisition of Visa Europe amounting to EUR 151m net of
tax, Q4 2016: additional gain related to Visa of EUR 22m before tax).
[2] Excl. non-recurring items (Q4 2015: restructuring charge of EUR 263m before
tax, Q4 2016: gain in staff costs related to change in pension agreement in
Norway of EUR 86m before tax).

For further information:

Casper von Koskull, President and Group CEO, +46 10 157 1020
Torsten Hagen Jørgensen, Deputy CEO and Group COO, +45 5547 2200
Rodney Alfvén, Head of Investor Relations, +46 72 235 05 15
Helga Baagøe, Acting Head of Group Communications, +46 721 411 807

Latest interim results (http://www.nordea.com/en/investor-relations/reports-and
-presentations/latest-interim-results/)

The information in this press release is such, which Nordea Bank AB (publ) is
obliged to make public pursuant to the EU Market Abuse Regulation and the
Swedish Securities Markets Act. The information was submitted for publication,
through the agency of the contact persons set out above, at 07.00 CET on 26
January 2017.

Attachments:

factbook.pdf

presentation.pdf

01266056.pdf