2007-07-19 16:57:20 CEST
2007-07-19 16:57:20 CEST
REGULATED INFORMATION
Nordea Pankki Suomi Oyj - Half Year financial report
Nordea Bank Finland Plc: Interim Report January-June 2007
Nordea Bank Finland Plc is a wholly owned subsidiary of Nordea Bank
AB (publ), the listed parent company of the whole Nordea Group. This
statutory interim report covers the operations of the legal entity
Nordea Bank Finland Plc with its subsidiaries in Finland and abroad.
The figures include various intragroup transactions against other
entities of the Nordea Group.
The business operations of the Nordea Group have been organised in
three business areas, all of which operate across national
boundaries: Retail Banking, Corporate and Institutional Banking and
Asset Management & Life. The consolidated interim report of Nordea
Bank AB (publ) embraces all the activities of the Nordea Group and
provides the most complete and fair view. The Finnish Asset
Management & Life operations are included in the interim report of
the Nordea Group.
Nordea Bank Finland Group
Result summary January-June 2007
The first six months of 2007 were characterised by continued strong
volume growth and increased deposit margins. NBF's total income
increased by 2% to EUR 1,179m (1,158) and total expenses by 6% to EUR
452m (428). (The comparison figures in brackets refer to the first
six months of 2006.)
NBF's operating profit was down by 2% compared to the same period in
2006 and amounted to EUR 743m (759). Return on equity was 9.4% (9.3%)
and the cost/income ratio 38% (37%). Loan losses were positive at EUR
16m (26). Net profit decreased by 5% to EUR 552m (579).
Market development in the first half of 2007
The Finnish economy continued its robust growth during the first
months of the year. The broad-based economic growth improved the
employment situation, and the unemployment rate continued to come
down. The favourable labour market development and consumers' high
confidence boosted both household consumption and the demand for
credits despite a rise in interest rates.
Income
Total income increased by 2% to EUR 1,179m mainly as a result of the
favourable development in net interest income. The strong lending
growth continued with double-digit volume growth in most segments,
which largely compensated for the margin pressure still present in
certain areas. Total lending to the public increased by 17%
year-on-year to EUR 56.4bn. Deposits and borrowings from the public
increased by 8% year-on-year to EUR 37.1bn driven by both personal
and corporate customers. Deposit margins in Retail Banking continued
to improve following higher market interest rates.
Net commission income increased by 3% to EUR 159m. Lending-related
commissions increased by 7% to EUR 72m, reflecting the volume growth
as well as the ongoing centralisation of Trade Finance products to
NBF. Savings-related commissions income grew by 13% in total. Total
payment commissions were stable despite strong competition. Total
commission expenses increased by 17% partly explained by the strong
sales of cards.
Net gains/losses at fair value decreased by 31% to EUR 185m (270).
Income from equity and interest rate related products came down from
the high level in the previous year. FX-related income developed
positively and so did other items driven by commodity and credit
derivatives.
Profit from companies accounted for under the equity method decreased
to EUR -1m (24). The reduction mainly reflects the divestment of the
holding in International Moscow Bank in the second half of 2006.
Other operating income totalled EUR 39m (60) comprising mainly
capital gains and other miscellaneous operating income.
Expenses
Total operating expenses increased by 6% and amounted to EUR 452m
(428).
The increase is a result of Nordea's growth ambition and prioritised
investments in certain areas with sizeable potential, as well as an
increase in variable salaries.
Staff costs increased by 4% to EUR 254m (244), which is mainly
explained by general wage increases, higher variable salaries and the
higher number of employees. The average number of FTEs increased by
approximately 100 year-on-year, largely in the Baltic area. Variable
salaries account for approximately half of the total increase in
staff costs.
Other operating expenses totalled EUR 184m (172), up by 7% compared
to last year. The higher activity level and investments in strategic
projects mainly explain the increase.
Depreciation of tangible and intangible assets increased slightly to
EUR 14m (12).
The cost/income ratio was 38% compared to 37% in the first half of
2006.
Loan losses
Net loan losses were positive at EUR 16m (26) reflecting recoveries
maintained at a high level and limited new provisions. NBF is
confident in the overall credit quality of its credit portfolio.
Taxes
The effective tax rate for the first half 2007 was approximately 26%.
In the first half 2006, the effective tax rate was approximately 24%.
Net profit
Net profit decreased by 5% to EUR 552m (579) corresponding to a
return on equity of 9.4% compared to 9.3% in the first half of last
year.
Balance sheet
(Comparison figures in brackets refer to December 2006 figures)
The total assets of NBF amounted to EUR 137bn (126). The change
mainly reflects growth in lending, higher balance sheet values of
derivatives as well as decreased intra-group transactions.
There was a slight decline in the growth rate of the housing loans
stock in Finland but in the Baltic area the growth rate has been very
strong. Loans to the public grew by 8% compared with the year-end.
The book values of derivatives have increased due to revaluations and
volume growth.
Deposits and borrowings from the public increased from the year-end
level and amounted to EUR 37.1bn (35.7).
Basel II
Nordea for the first time reports risk-weighted assets according to
the new capital adequacy rules (Basel II) following the approval of
the internal rating based (IRB) models on 26 June. The final Basel II
report will be submitted to the FSAs at a later date and the RWA
presented in this report may thus be subject to adjustments.
In the internal rating based (IRB) foundation approach to measure
credit risk, risk weights are a function of probability of default
(PD). Nordea has therefore used its own estimates of the risk
parameter PD. Nordea uses the IRB foundation approach for credit risk
in the corporate and institutions portfolios in 2007, which cover
approx. 50 per cent of Nordea's credit portfolios. The other exposure
classes, e.g. Retail and Sovereign are calculated according to the
standardised methods.
Nordea will gradually apply the advanced IRB approach. The next step
will be to start the implementation according to the IRB method for
the retail exposure class.
Nordea uses internal VaR models for the larger part of the portfolio
to measure Market risk. In Basel II, counterparty risk is included
under credit risk, whereas this previously was included under market
risk.
For Operational Risk Nordea uses the standardised approach based on
annual revenue of each of the broad business lines for estimating
operational risk.
At the end of June, NBF's risk-weighted assets (RWA) amounted to EUR
66bn. Before transition rules, which allows for a maximum of 5%
reduction of RWA in 2007, RWAs were 65bn. According to Basel I rules,
RWA would have been EUR 70bn.
The tier 1 ratio was 13.7% and the total capital ratio was 15.5%.
Profit for the period has not been included in tier 1.
NBF paid back a subordinated loan amounting to USD 150m in January
2007 with the permission of the Finnish Financial Supervision
Authority. Permission to pay back a subordinated loan amounting to
EUR 200m in August 2007 has been received from the Finnish Financial
Supervision Authority. The loan has therefore been deducted from tier
2 capital in the June 2007 capital adequacy calculations.
Credit portfolio
Total lending was EUR 56.4bn (52.5) and the share of personal
customer lending was 47%. Within personal customer lending, mortgage
lending accounted for 77%.
There was no major change in the composition of the corporate loan
portfolio during the first half of the year. Real estate management
remains the largest industry exposure in the credit portfolio and
amounts to EUR 7.4bn, representing 13% of the total portfolio. The
lending portfolio is well diversified.
At the end of June 2007, individually assessed impaired loans, net,
amounted to EUR 406m (379) representing 0.4% of total loans and
receivables before allowances, which was on the same level as at
year-end.
Off-balance sheet commitments
The total amount of off-balance sheet commitments increased to EUR
26.8bn (22.7). The increase mainly related to guarantees and stand-by
facilities. The volumes of derivatives have continued to grow and
they amounted to EUR 2,714bn (2,259).
Changes in the group structure
Nordea Finance Finland Ltd, a wholly-owned subsidiary of NBF, sold
the real estate company Kiint. Oy Lahden Hansa in February 2007.
Nordea Bank Finland Plc invested in the newly founded private equity
fund Profita Fund III Ky in May 2007. NBF's share of the total
capital invested is 27.7%.
Changes in the Board of Directors
After Lars G Nordström retired on 13 April 2007, the Board of
Directors appointed Christian Clausen Chairman of the Board of
Directors on 7 May 2007. Board member Tom Ruud and deputy member
Jacob Grinbaum left the Board on 1 May 2007. The extraordinary
general meeting on 7 May 2007 confirmed the number of Board members
to be five. NBF's Board members Christian Clausen, Markku Pohjola,
Carl-Johan Granvik, Arne Liljedahl and Peter Schütze continue in
their positions.
Long Term Incentive Programme
In April 2007, the Annual General Meeting of Nordea Bank AB resolved
to introduce a Long Term Incentive Programme (LTIP). The programme
grants rights to Nordea Bank AB's shares directly to employees of
NBF. The programme comprises up to 400 managers and key employees of
the Nordea Group. The main objective of LTIP is to strengthen
Nordea's ability to retain and recruit the best talent for key
leadership positions. For further information see Note 1.
Risks and uncertainties
Nordea's revenue base reflects the Group's business with a large and
diversified customer base, comprising both retail and corporate
customers, representing different geographic areas and industries.
Nordea has mainly an exposure to the general and industry specific
economic development in the geographical areas in which the Group
operates.
Nordea's main risk exposure is credit risk. The Group also assumes
market risk, liquidity risk and operational risk. There is no major
change to the risk composition of the Group compared to what is
disclosed in 2006 Annual Report.
None of the above exposures and risks is expected to have any
significant adverse effect on the Group or its financial position in
the next six months.
Within the framework of normal business operations, the Group faces
claims in civil lawsuits and other disputes, most of which involve
relatively limited amounts. None of these disputes is considered
likely to have any significant adverse effect on the Group or its
financial position in the next six months.
Outlook 2007
The organic growth strategy consistently pays off. The strong revenue
growth is expected to continue in the second half of 2007.
As previously stated, the cost increase in the Nordea Group for the
full-year 2007 is expected to be of the same magnitude as in 2006, ie
4-5%, and the gap between revenue and cost growth for the full year
2007 is expected to be 3-4 %-points, excluding banking operations in
Russia. The cost increase for the full- year, including Orgresbank
and planned investments in Russia, is expected to be approx. 6%. This
corresponds to a forecasted gap in the area of 2-3%-points, including
Nordea's Russian banking operations.
The quality of the credit portfolio in the Nordea Group remains
strong. It is however likely that lower recoveries during the latter
part of the year will result in actual net charges in the coming
quarters.
Following the reduction of the corporate tax rate in Denmark the
average standard tax rate for the Nordea Group's business is approx.
26%. The effective tax rate for 2007 is expected to be 4-6 %-points
lower than this average.
Nordea Bank Finland is expected to contribute to the development
above.
Key financial figures
Income statement
Jan-Jun Jan-Jun Change Full year
EURm 2007 2006 % 2006
Net interest income 797 649 23 1,415
Net fee and commission
income 159 155 3 308
Net gains/losses on items
at fair value 185 270 -31 408
Equity method -1 24 -104 31
Other income 39 60 -35 292
Total operating income 1,179 1,158 2 2,454
Staff costs -254 -244 4 -504
Other expenses -184 -172 7 -359
Depreciation of tangible
and
intangible assets -14 -12 17 -18
Total operating expenses -452 -428 6 -881
Loan losses 16 26 -38 63
Impairment of securities
held as financial
non-current assets 0 0 0 -2
Disposals of tangible
and intangible assets 0 3 -100 5
Operating profit 743 759 -2 1,639
Tax expense -191 -180 6 -358
Net profit for the period 552 579 -5 1,281
Business volumes, key items
30 Jun 30 Jun Change 31 Dec Change
EURm 2007 2006 % 2006 %
Loans and receivables to
the public 56,404 48,336 17 52,463 8
Deposits and borrowings
from the public 37,067 34,370 8 35,689 4
Equity 10,032 12,779 -21 13,479 -26
Total assets 136,995 125,810 9 131,346 4
Ratios and key figures
Jan-Jun Jan-Jun Full year
2007 2006 2006
Return on equity, % 9.4 9.3 10.0
Cost/income ratio, % 38 37 36
Tier 1 capital ratio1,2, % 13.7 17.0 13.8
Total capital ratio1,2, % 15.5 19.1 16.0
Tier 1 capital1,2, EURm 9,107 11,558 8,998
Risk-weighted assets1,
EURm 66,460 68,022 65,270
Number of employees
(full-time equivalents)1 9,307 9,076 9,060
Average number of
employees
(full-time equivalents)1 9,127 8,989 9,024
1 End of period.
2 Jan-Jun figures
excluding
profit for the period.
Formulas used
Return on equity, %:
100 x (Operating profit after taxes) / (Shareholders' equity (average
for beginning and end of year))
Cost/income ratio, %:
100 x (Total operating expenses/Total operating income)
Half-year development
Jan-Jun Jan-Jun
Net fee and commission income,
EURm 2007 2006
Asset Management commissions 27 23
Life insurance 7 7
Brokerage 22 25
Custody 19 11
Deposits 2 2
Total savings related commissions 77 68
Payments 73 71
Cards 22 20
Total payment commissions 95 91
Lending 44 43
Guarantees and document payments 28 24
Total lending related commissions 72 67
Other commission income 23 21
Fee and commission income 267 247
Payment expenses -23 -21
Other commission expenses -85 -71
Fee and commission expenses -108 -92
Net fee and commission income 159 155
Jan-Jun Jan-Jun
General administrative expenses, EURm 2007 2006
Staff -247 -235
Profit sharing -7 -9
Information technology1 -59 -53
Marketing -15 -13
Postage, telephone and office
expenses -19 -18
Rents, premises and real estate
expenses -40 -39
Other -51 -49
Total -438 -416
1 Refers to IT operations, service expenses and consultant fees.
Total IT-related costs including staff etc, were EUR 77m in the
first half of 2007 (EUR 73m in the first half of 2006).
Income statement
Jan-Jun Jan-Jun Full year
EURm Note 2007 2006 2006
Operating income
Interest income 2,391 1,646 3,626
Interest expense -1,594 -997 -2,211
Net interest income 797 649 1,415
Fee and commission income 267 247 497
Fee and commission expense -108 -92 -189
Net fee and commission income 159 155 308
Net gains/losses on items at
fair value 2 185 270 408
Profit from companies accounted
for under the equity method -1 24 31
Dividends 1 2 2
Other operating income 38 58 290
Total operating income 1,179 1,158 2,454
Operating expenses
General administrative expenses:
Staff costs -254 -244 -504
Other expenses -184 -172 -359
Depreciation, amortisation and
impairment charges of tangible
and intangible assets -14 -12 -18
Total operating expenses -452 -428 -881
Loan losses 3 16 26 63
Impairment of securities held as
financial non-current asset 0 0 -2
Disposals of tangible and
intangible
assets 0 3 5
Operating profit 743 759 1,639
Tax expense -191 -180 -358
Net profit for the period 552 579 1,281
Attributable to:
Shareholders of Nordea Bank
Finland Plc 551 578 1,279
Minority interests 1 1 2
Total 552 579 1,281
Balance sheet
30 Jun 31 Dec 30 Jun
EURm Note 2007 2006 2006
Assets
Cash and balances with
central banks 1,965 1,151 1,456
Treasury bills and other
eligible bills 2,230 2,877 2,965
Loans and receivables to
credit institutions 4 41,365 47,031 44,130
Loans and receivables to
the public 4 56,404 52,463 48,336
Interest-bearing securities 1,090 1,161 937
Financial instruments
pledged as collateral 25 100 105
Shares 986 603 406
Derivatives 6 30,440 23,692 24,371
Fair value changes
of the hedged
items in portfolio
hedge of interest
rate risk -95 -54 -15
Investments in associated
undertakings 78 83 223
Intangible assets 23 13 15
Property and equipment 94 89 76
Investment property 4 4 34
Deferred tax assets 332 468 630
Current tax assets 10 12 6
Retirement benefit assets 55 52 53
Other assets 1,421 1,112 1,643
Prepaid expenses and
accrued income 568 489 439
Total assets 136,995 131,346 125,810
Liabilities
Deposits by credit
institutions 22,054 29,233 23,099
Deposits and borrowings from
the public 37,067 35,689 34,370
Debt securities in issue 30,208 22,680 25,362
Derivatives 6 30,869 24,057 24,129
Fair value changes of the hedged
items in
portfolio hedge of interest rate
risk -139 -147 -153
Current tax liabilities 40 24 42
Other liabilities 4,264 3,790 3,734
Accrued expenses and prepaid
income 907 758 630
Deferred tax liabilities 24 23 14
Provisions 89 39 38
Retirement benefit obligations 46 56 60
Subordinated liabilities 1,534 1,665 1,706
Total liabilities 126,963 117,867 113,031
Equity 7
Minority interests 6 6 6
Share capital 2,319 2,319 2,319
Share premium account 599 599 599
Other reserves 2,899 2,899 2,882
Retained earnings 4,209 7,656 6,973
Total equity 10,032 13,479 12,779
Total liabilities and equity 136,995 131,346 125,810
Assets pledged as security for
own liabilities 7,018 8,159 6,338
Other assets pledged 252 488 101
Contingent liabilities 10,675 8,441 7,554
Commitments 2,730,580 2,316,387 2,274,509
Statement of recognised
income and expense
30 Jun 30 Jun
EURm 2007 2006
Currency translation differences
during the period 2 -1
Cash flow hedges:
Gains/losses taken to equity - -2
Net income recognised
directly in equity 2 -3
Net profit for the period 552 579
Total recognised income and
expense for the period 554 576
Attributable to:
Shareholders of Nordea Bank Finland Plc 553 575
Minority interests 1 1
Total 554 576
Cash flow statement
Jan-Jun Jan-Jun
EURm 2007 2006
Operating activities
Operating profit 743 759
Adjustments for items not
included in cash flow 142 -169
Income taxes paid -55 -42
Cash flow from operating activities
before changes in operating assets
and liabilities 830 548
Changes in operating assets and liabilities 151 -2,477
Cash flow from operating activities 981 -1,929
Investing activities
Sale/acquisition of group undertakings 13 22
Sale/acquisition of associated undertakings 6 -
Property and equipment -26 -5
Intangible assets -3 -
Cash flow from investing activities -10 17
Financing activities
Issued/amortised subordinated liabilities -131 -199
Dividend paid -4,000 -
Other changes 2 -
Cash flow from financing activities -4,129 -199
Cash flow for the period -3,158 -2,111
Cash and cash equivalents at
beginning of period 16,467 12,098
Exchange rate difference - -2
Cash and cash equivalents
at end of period 13,309 9,985
Change -3,158 -2,111
Cash and cash equivalents 30 Jun 30 Jun
The following items are included
in cash and cash equivalents (EURm): 2007 2006
Cash and balances with central banks 1,965 1,456
Loans and receivables to credit
institutions, payable on demand 11,344 8,529
Cash comprises legal tender and bank notes in foreign currencies.
Balances with central banks consist of deposits in accounts with
central banks and postal giro systems under government authority,
where the following conditions are fulfilled:
- the central bank or the postal giro system is domiciled in
the country where the institution is established
- the balance on the account is readily available at any time.
Loans and receivables to credit institutions, payable on demand
include liquid assets
not represented by bonds or other interest-bearing securities.
Notes
Note 1 Accounting policies
NBF's consolidated financial statements are prepared in accordance
with the International Financial Reporting Standards (IFRS) endorsed
by the EU, the Finnish Accounting Act and to applicable parts
according to the Finnish Credit Institutions Act, the Financial
Supervision Authority's regulations and Guidelines and the Decree of
the Ministry of Finance on the financial statements and consolidated
financial statements of credit institutions.
These statements have not been prepared in accordance with IAS 34,
Interim Financial Reporting and the report is unaudited.
Basis for presentation
The accounting policies and the basis for calculations are, in all
material aspects, unchanged in comparison with the 2006 Annual
Report.
Share-based payments
As mentioned in the text, a share-based payment programme, referred
to as the "Long Term Incentive Programme", was introduced in the
second quarter. The fair value of the share rights was measured on
the grant date and will be recognised as an expense over a period of
24 months.
The total number of share rights in Nordea's Long Term Incentive
Programme represents a maximum of 3,120,000 ordinary shares, of which
650,000 are Matching Shares and 1,950,000 are Performance Shares. The
remaining 520,000 ordinary shares are available to cover mainly
social security costs. The value of the rights is recognised in the
income statement with a corresponding increase in unrestricted
equity. Social expenses are accrued until paid. The exercise prices
of Matching Shares and Performance Shares are respectively EUR 4 and
EUR 2. On the grant date the market values of the share rights were
EUR 8.76 and 10.49 respectively. The expected amount, EUR 18m, is
expensed over a period of 24 months. The maximum cost for LTIP 2007
equals approximately EUR 39m.
The expenses in NBF, equal to the amount at which the services from
the employees are measured, will be met by shareholders'
contribution. The current number of outstanding rights is 83,161. The
expected cost for the programme amounts to EUR 3m, and is recognised
over a period of 24 months. The maximum cost in NBF equals
approximately EUR 6m. NBF has expensed EUR 0.1m in the first half of
2007.
Jan-Jun Jan-Jun
Note 2 Net gains/losses
on items at fair value, EURm 2007 2006
Shares/participations and other
share-related instruments 15 28
Interest-bearing securities and
other interest-related instruments 54 199
Other financial instruments 19 -6
Foreign exchange gains/losses 97 49
Total 185 270
Jan-Jun Jan-Jun
Note 3 Loan losses, EURm 2007 2006
Loan losses divided by class, net
Loans and receivables to credit
institutions 0 -
- of which write-offs and provisions 0 -
- of which reversals and recoveries - -
Loans and receivables to the public 26 26
- of which write-offs and provisions -50 -29
- of which reversals and recoveries 76 55
Off-balance sheet items1 -10 0
- of which write-offs and provisions -11 0
- of which reversals and recoveries 1 0
Total 16 26
Specification of loan losses
Changes of allowance accounts
in the balance sheet 6 21
- of which Loans and receivables 16 21
- of which Off-balance sheet items1 -10 0
Changes directly recognised in the
income statement 10 5
- of which realised loan losses -1 -4
- of which realised recoveries 11 9
Total 16 26
1 Included in Provisions in the balance
sheet.
Note 4 Loans
and
receivables
and their
impairment
Total
30 Jun 31 Dec 30 Jun
EURm 2007 20061 20061
Loans and
receivables,
not impaired 97,458 99,228 92,214
Impaired loans
and receivables: 606 651 669
- Performing 401 457 454
- Non-performing 205 194 215
Loans and
receivables
before
allowances 98,064 99,879 92,883
Allowances for
individually
assessed
impaired
loans -200 -263 -290
- Performing -116 -163 -185
- Non-performing -84 -100 -105
Allowances for
collectively
assessed
impaired loans -95 -122 -127
Allowances -295 -385 -417
Loans and
receivables,
book value 97,769 99,494 92,466
Credit
instit- The
utions public
30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
EURm 2007 2006 2006 2007 20061 20061
Loans and
receivables,
not impaired 41,366 47,031 44,130 56,092 52,197 48,084
Impaired loans
and receivables: - - - 606 651 669
- Performing - - - 401 457 454
- Non-performing - - - 205 194 215
Loans and
receivables
before
allowances 41,366 47,031 44,130 56,698 52,848 48,753
Allowances for
individually
assessed
impaired loans - - - -200 -263 -290
- Performing - - - -116 -163 -185
- Non-performing - - - -84 -100 -105
Allowances for
collectively
assessed
impaired
loans -1 - - -94 -122 -127
Allowances -1 - - -294 -385 -417
Loans and
receivables,
book value 41,365 47,031 44,130 56,404 52,463 48,336
1 Restated
Reconciliation
of allowance
accounts for
impaired loans
Credit
instit- The
utions public Total
Indivi- Collec- Indivi- Collec- Indivi- Collec-
Loans and dually tively dually tively dually tively
receivables, asse- asse- asse- asse- asse- asse-
EURm ssed ssed ssed ssed ssed ssed Total
Opening
balance at
1 Jan 2007 - - -263 -122 -263 -122 -385
Provisions - 0 -12 -37 -12 -37 -49
Reversals - - 48 18 48 18 66
Changes
through
the income
statement - 0 36 -19 36 -19 17
Allowances
used to
cover write-offs - - 10 0 10 0 10
Currency
translation
differences and
reclassifications2 - -1 17 47 17 46 63
Closing
balance
at
30 Jun 2007 - -1 -200 -94 -200 -95 -295
Opening
balance
at
1 Jan 2006 - - -333 -130 -333 -130 -463
Provisions - - -9 -15 -9 -15 -24
Reversals - - 32 13 32 13 45
Changes
through
the income
statement - - 23 -2 23 -2 21
Allowances used to
cover write-offs - - 23 - 23 - 23
Currency
translation
differences - - -3 5 -3 5 2
Closing balance
at 30 Jun 2006 - - -290 -127 -290 -127 -417
2 Mainly
reclassification
to off-balance
sheet items
Note 4, continued
Allowances and
provisions
30 Jun 31 Dec 30 Jun
EURm 2007 2006 2006
Allowances for items in
the balance sheet -295 -385 -417
Provisions for off balance
sheet items -73 - -
Total allowances
and provisions -368 -385 -417
Key ratios
30 Jun 31 Dec 30 Jun
2007 2006 2006
Impairment rate, gross1, % 0.6 0.7 0.7
Impairment rate, net2, % 0.4 0.4 0.4
Total allowance rate3, % 0.3 0.4 0.4
Allowance rate, impaired loans4, % 33.0 40.4 43.3
Non-performing loans and receivables,
not impaired5, EURm 5 5 5
1 Individually assessed impaired loans
and receivables before
allowances divided by total loans and
receivables before allowances,
%
2 Individually assessed impaired loans
and receivables after allowances
divided by total loans and receivables
before allowances,
%
3 Total allowances divided by total loans and receivables before
allowances, %
4 Allowances for individually assessed impaired loans and receivables
divided
by individually assessed impaired loans and receivables before
allowances, %
5 Past due loans and receivables, not impaired due to future cash
flows
(included in Loans and receivables, not
impaired).
Note 5
Classification
of financial
instruments,
EURm
Deriv-
atives
30 Jun Loans Held Held Assets used Avai-
2007 and to for at for lable
Financial rece- matu- trad- fair hed- for
assets ivables rity ing value ging sale Total
Cash and
balances
with central
banks 1,965 1,965
Treasury
bills
andother
eligible
bills 2,230 2,230
Loans and
receivables
to credit
institutions 40,144 1,221 41,365
Loans and
receivables
to the
public 56,404 56,404
Interest
-bearing
securities 350 735 5 1,090
Financial
instruments
pledged as
collateral 25 25
Shares 967 19 986
Derivatives 30,222 218 30,440
Fair value
changes of
the hedged
items in
portfolio
hedge of
interest
rate risk -95 -95
Other
assets 1,405 1,405
Prepaid
expenses
and accrued
income 452 452
Total 100,275 - 35,015 754 218 5 136,267
Lia- Deri-
30 Jun bilities vatives
2007 Held at used Other
Financial for fair for financial
liabilities trading value hedging liabilities Total
Deposits by
credit
institutions 22,054 22,054
Deposits and
borrowings
from the
public 37,067 37,067
Debt
securities
in issue 4,979 25,229 30,208
Derivatives 30,624 244 30,868
Fair value
changes
of the
hedged items
in
portfolio
hedge of
interest
rate risk -139 -139
Other
liabilities 17 4,236 4,253
Accrued
expenses
and prepaid
income 616 616
Subordinated
liabilities 1,534 1,534
Total 35,620 - 244 90,597 126,461
Note 6 Derivatives,
EURm
Total
Assets Liabilities nom.
Fair Fair
30 Jun 2007 value value amount
Derivatives held
for trading
Interest rate derivatives 22,370 22,848 2,005,625
Equity derivatives 1,551 1,906 24,873
Foreign exchange
derivatives 4,699 4,305 555,220
Credit derivatives 664 634 85,695
Other derivatives 938 932 10,563
Total 30,222 30,625 2,681,976
Derivatives used
for hedging
Interest rate derivatives 152 112 27,756
Equity derivatives - - -
Foreign exchange
derivatives 66 132 4,710
Other derivatives - - -
Total 218 244 32,466
Derivatives, total
Interest rate derivatives 22,522 22,960 2,033,381
Equity derivatives 1,551 1,906 24,873
Foreign exchange
derivatives 4,765 4,437 559,930
Credit derivatives 664 634 85,695
Other derivatives 938 932 10,563
Total 30,440 30,869 2,714,442
Of which contracts
with Nordea Group
undertakings 931 913 91,937
Lia- Assets bilities Total nom.
Fair Fair
31 Dec 2006 value value amount
Derivatives
held for trading
Interest rate derivatives 15,734 15,840 1,675,489
Equity derivatives 950 1,117 15,185
Foreign exchange derivatives 5,177 5,314 479,796
Credit derivatives 655 655 82,746
Other derivatives 905 894 11,359
Total 23,421 23,820 2,264,575
Derivatives used
for hedging
Interest rate derivatives 225 112 29,492
Equity derivatives - - -
Foreign exchange derivatives 46 125 6,185
Other derivatives - - -
Total 271 237 35,677
Derivatives, total
Interest rate derivatives 15,959 15,952 1,704,981
Equity derivatives 950 1,117 15,185
Foreign exchange derivatives 5,223 5,439 485,981
Credit derivatives 655 655 82,746
Other derivatives 905 894 11,359
Total 23,692 24,057 2,300,252
Of which contracts with Nordea
Group
undertakings 421 481 73,141
Note 6,
continued
Liab- Total
Assets ilities nom.
Fair Fair
30 Jun 2006 value value amount
Derivatives
held
for trading
Interest
rate
derivatives 16,918 16,686 1,619,756
Equity
derivatives 642 672 13,582
Foreign
exchange
derivatives 4,788 4,791 500,371
Credit
derivatives 424 418 71,172
Other
derivatives 1,361 1,360 9,860
Total 24,133 23,927 2,214,741
Derivatives
used
for hedging
Interest
rate
derivatives 201 119 41,146
Equity
derivatives - - -
Foreign
exchange
derivatives 37 83 3,478
Other
derivatives - - -
Total 238 202 44,624
Derivatives,
total
Interest
rate
derivatives 17,119 16,805 1,660,902
Equity
derivatives 642 672 13,582
Foreign
exchange
derivatives 4,825 4,874 503,849
Credit
derivatives 424 418 71,172
Other
derivatives 1,361 1,360 9,860
Total 24,371 24,129 2,259,365
Of which
contracts
with Nordea
Group
undertakings 612 595 65,914
Note 7
Equity,
EURm
Attributable to
shareholders of Nordea Bank Finland Plc
Ret- Mino-
Share ained rity
Share Premium Other earn- inte- Total
capital1 account reserves ings Total rests equity
Opening
balance
at 1 Jan
2007 2,319 599 2,899 7,656 13,473 6 13,479
Currency
translation
differences 2 2 2
Net income
recognised
directly in
equity - - - 2 2 - 2
Net profit
for the
period 551 551 1 552
Total
recognised
income and
expense
in equity - - - 553 553 1 554
Share-based
payment /
Contribution 0 0 0
Dividend for
2006 -4,000 -4,000 -4,000
Other
changes - -1 -1
Closing
balance
at 30 Jun
2007 2,319 599 2,899 4,209 10,026 6 10,032
Attributable to
shareholders of Nordea Bank Finland Plc
Share
Share Premium Other Retained Minority Total
capital1 account reserves earnings Total interests equity
Opening
balance
at
1 Jan 2006 2,319 599 2,884 6,396 12,198 6 12,204
Net change
in cash flow
hedges, net
of tax -2 -2 -2
Currency -1
translation
differences -1 -1
Net income -3
recognised
directly in -
equity - - -2 -1 -3
Net profit 579
for the
period 578 578 1
Total 576
recognised
income and
expense
in equity - - -2 577 575 1
Other - -1 -1
changes
Closing
balance
at 30 Jun
2006 2,319 599 2,882 6,973 12,773 6 12,779
1 Total shares registered was 1,030.8 million
(31 Dec 2006: 1,030.8 million, 30 Jun 2006: 1,030.8 million).
Jan-Jun Jan-Jun
Note 2 Net gains/losses
on items at fair value, EURm 2007 2006
Shares/participations and other
share-related instruments 15 28
Interest-bearing securities and
other interest-related instruments 54 199
Other financial instruments 19 -6
Foreign exchange gains/losses 97 49
Total 185 270
Jan-Jun Jan-Jun
Note 3 Loan losses, EURm 2007 2006
Loan losses divided by class, net
Loans and receivables to credit
institutions 0 -
- of which write-offs and provisions 0 -
- of which reversals and recoveries - -
Loans and receivables to the public 26 26
- of which write-offs and provisions -50 -29
- of which reversals and recoveries 76 55
Off-balance sheet items1 -10 0
- of which write-offs and provisions -11 0
- of which reversals and recoveries 1 0
Total 16 26
Specification of loan losses
Changes of allowance accounts
in the balance sheet 6 21
- of which Loans and receivables 16 21
- of which Off-balance sheet items1 -10 0
Changes directly recognised in the
income statement 10 5
- of which realised loan losses -1 -4
- of which realised recoveries 11 9
Total 16 26
1 Included in Provisions in the balance
sheet.
Note 4 Loans
and
receivables and
their impairment
Total
30 Jun 31 Dec 30 Jun
EURm 2007 20061 20061
Loans and
receivables,
not impaired 97,458 99,228 92,214
Impaired loans and
receivables: 606 651 669
- Performing 401 457 454
- Non-performing 205 194 215
Loans and
receivables
before allowances 98,064 99,879 92,883
Allowances for
individually
assessed impaired
loans -200 -263 -290
- Performing -116 -163 -185
- Non-performing -84 -100 -105
Allowances for
collectively
assessed impaired
loans -95 -122 -127
Allowances -295 -385 -417
Loans and
receivables,
book value 97,769 99,494 92,466
Credit The
institutions public 30 Jun 31 Dec 30 Jun 30 Jun 31 Dec 30 Jun
EURm 2007 2006 2006 2007 20061 20061
Loans and
receivables,
not impaired 41,366 47,031 44,130 56,092 52,197 48,084
Impaired loans and
receivables: - - - 606 651 669
- Performing - - - 401 457 454
- Non-performing - - - 205 194 215
Loans and
receivables
before allowances 41,366 47,031 44,130 56,698 52,848 48,753
Allowances for
individually
assessed
impaired loans - - - -200 -263 -290
- Performing - - - -116 -163 -185
- Non-performing - - - -84 -100 -105
Allowances for
collectively
assessed impaired
loans -1 - - -94 -122 -127
Allowances -1 - - -294 -385 -417
Loans and
receivables,
book value 41,365 47,031 44,130 56,404 52,463 48,336
1 Restated
Reconciliation of
allowance accounts
for impaired loans
Credit
institutions The public Total
Indivi- Collec- Indivi- Collec- Indivi- Collec-
Loans and dually tively dually tively dually tively
receivables, asse- asse- asse- asse- asse- asse-
EURm ssed ssed ssed ssed ssed ssed Total
Opening balance
at 1 Jan 2007 - - -263 -122 -263 -122 -385
Provisions - 0 -12 -37 -12 -37 -49
Reversals - - 48 18 48 18 66
Changes through
the income
statement - 0 36 -19 36 -19 17
Allowances used to
cover write-offs - - 10 0 10 0 10Currency
translation
differences and
reclassifications2 - -1 17 47 17 46 63
Closing balance
at 30 Jun 2007 - -1 -200 -94 -200 -95 -295
Opening balance
at 1 Jan 2006 - - -333 -130 -333 -130 -463
Provisions - - -9 -15 -9 -15 -24
Reversals - - 32 13 32 13 45
Changes through
the income
statement - - 23 -2 23 -2 21
Allowances used to
cover write-offs - - 23 - 23 - 23
Currency
translation
differences - - -3 5 -3 5 2
Closing balance at
30 Jun 2006 - - -290 -127 -290 -127 -417
2 Mainly
reclassification
to off-balance
sheet items
Note 4, continued
Allowances and provisions
30 Jun 31 Dec 30 Jun
EURm 2007 2006 2006
Allowances for items in the balance
sheet -295 -385 -417
Provisions for off balance sheet
items -73 - -
Total allowances and provisions -368 -385 -417
Key ratios
30 Jun 31 Dec 30 Jun
2007 2006 2006
Impairment rate, gross1, % 0.6 0.7 0.7
Impairment rate, net2, % 0.4 0.4 0.4
Total allowance rate3, % 0.3 0.4 0.4
Allowance rate, impaired loans4, % 33.0 40.4 43.3
Non-performing loans and receivables, not
impaired5, EURm 5 5 5
1 Individually assessed impaired loans and receivables before
allowances divided by total loans and receivables before allowances,
%
2 Individually assessed impaired loans and receivables after
allowances
divided by total loans and receivables before allowances,
%
3 Total allowances divided by total loans and receivables before
allowances, %
4 Allowances for individually assessed impaired loans and receivables
divided
by individually assessed impaired loans and receivables before
allowances, %
5 Past due loans and receivables, not impaired due to future cash
flows
(included in Loans and receivables, not
impaired).
Note 5 Classification
of financial
instruments,
EURm
Deriv-
atives
Loans Held Assets used Ava-
30 Jun and to Held at for ilable
2007 recei- matu- for fair hed- for
Financial assets vables rity trading value ging sale Total
Cash and
balances
with central
banks 1,965 1,965
Treasury bills
and
other eligible
bills 2,230 2,230
Loans and
receivables
to credit
institutions 40,144 1,221 41,365
Loans and
receivables
to the public 56,404 56,404
Interest-bearing
securities 350 735 5 1,090
Financial
instruments
pledged as
collateral 25 25
Shares 967 19 986
Derivatives 30,222 218 30,440
Fair value
changes of
the hedged items
in
portfolio hedge
of
interest rate
risk -95 -95
Other assets 1,405 1,405
Prepaid expenses
and accrued
income 452 452
Total 100,275 - 35,015 754 218 5 136,267
Deri-
vatives
30 Jun 2007 Liabilities used
Held at for Other
Financial for fair hed- financial
liabilities trading value ging liabilities Total
Deposits by
credit
institutions 22,054 22,054
Deposits and
borrowings
from the public 37,067 37,067
Debt securities
in issue 4,979 25,229 30,208
Derivatives 30,624 244 30,868
Fair value
changes of
the hedged items
in
portfolio hedge
of interest
rate risk -139 -139
Other
liabilities 17 4,236 4,253
Accrued expenses
and prepaid
income 616 616
Subordinated
liabilities 1,534 1,534
Total 35,620 - 244 90,597 126,461
Note 6 Derivatives, EURm
Assets Liabilities Total nom.
30 Jun 2007 Fair value Fair value amount
Derivatives held for
trading
Interest rate derivatives 22,370 22,848 2,005,625
Equity derivatives 1,551 1,906 24,873
Foreign exchange
derivatives 4,699 4,305 555,220
Credit derivatives 664 634 85,695
Other derivatives 938 932 10,563
Total 30,222 30,625 2,681,976
Derivatives used for
hedging
Interest rate derivatives 152 112 27,756
Equity derivatives - - -
Foreign exchange
derivatives 66 132 4,710
Other derivatives - - -
Total 218 244 32,466
Derivatives, total
Interest rate derivatives 22,522 22,960 2,033,381
Equity derivatives 1,551 1,906 24,873
Foreign exchange
derivatives 4,765 4,437 559,930
Credit derivatives 664 634 85,695
Other derivatives 938 932 10,563
Total 30,440 30,869 2,714,442
Of which contracts with
Nordea Group
undertakings 931 913 91,937
Assets Liabilities Total nom.
31 Dec 2006 Fair value Fair value amount
Derivatives held for
trading
Interest rate derivatives 15,734 15,840 1,675,489
Equity derivatives 950 1,117 15,185
Foreign exchange
derivatives 5,177 5,314 479,796
Credit derivatives 655 655 82,746
Other derivatives 905 894 11,359
Total 23,421 23,820 2,264,575
Derivatives used for
hedging
Interest rate derivatives 225 112 29,492
Equity derivatives - - -
Foreign exchange
derivatives 46 125 6,185
Other derivatives - - -
Total 271 237 35,677
Derivatives, total
Interest rate derivatives 15,959 15,952 1,704,981
Equity derivatives 950 1,117 15,185
Foreign exchange
derivatives 5,223 5,439 485,981
Credit derivatives 655 655 82,746
Other derivatives 905 894 11,359
Total 23,692 24,057 2,300,252
Of which contracts with
Nordea Group
undertakings 421 481 73,141
Note 6,
continued
Liab- Total
Assets ilities nom.
Fair Fair
30 Jun 2006 value value amount
Derivatives
held for
trading
Interest
rate
derivatives 16,918 16,686 1,619,756
Equity
derivatives 642 672 13,582
Foreign
exchange
derivatives 4,788 4,791 500,371
Credit
derivatives 424 418 71,172
Other
derivatives 1,361 1,360 9,860
Total 24,133 23,927 2,214,741
Derivatives
used for
hedging
Interest
rate
derivatives 201 119 41,146
Equity
derivatives - - -
Foreign
exchange
derivatives 37 83 3,478
Other
derivatives - - -
Total 238 202 44,624
Derivatives,
total
Interest
rate
derivatives 17,119 16,805 1,660,902
Equity
derivatives 642 672 13,582
Foreign
exchange
derivatives 4,825 4,874 503,849
Credit
derivatives 424 418 71,172
Other
derivatives 1,361 1,360 9,860
Total 24,371 24,129 2,259,365
Of which
contracts
with
Nordea Group
undertakings 612 595 65,914
Note 7
Equity,
EURm
Attributable to
shareholders of
Nordea Bank Finland Plc
Min-
Share Other Retained ority
Share Premium rese- earn- inter- Total
capital1 account rves ings Total ests equity
Opening
balance
at 1 Jan
2007 2,319 599 2,899 7,656 13,473 6 13,479
Currency
translation
differences 2 2 2
Net income
recognised
directly
in equity - - - 2 2 - 2
Net profit
for
the period 551 551 1 552
Total
recognised
income
and expense
in equity - - - 553 553 1 554
Share-based
payment /
Contribution 0 0 0
Dividend
for 2006 -4,000 -4,000 -4,000
Other
changes - -1 -1
Closing
balance
at 30 Jun
2007 2,319 599 2,899 4,209 10,026 6 10,032
Attributable to
shareholders of Nordea Bank Finland Plc
Min-
Share Retained ority
Share Premium Other earn- inter- Total
capital1 account reserves ings Total ests equity
Opening
balance
at 1 Jan
2006 2,319 599 2,884 6,396 12,198 6 12,204
Net change
in
cash flow
hedges,
net of tax -2 -2 -2
Currency -1
translation
differences -1 -1
Net income -3
recognised
directly -
in equity - - -2 -1 -3
Net profit 579
for
the period 578 578 1
Total 576
recognised
income
and expense
in equity - - -2 577 575 1
Other - -1 -1
changes
Closing
balance
at
30 Jun 2006 2,319 599 2,882 6,973 12,773 6 12,779
1 Total shares registered was 1,030.8 million
(31 Dec 2006: 1,030.8 million, 30 Jun 2006: 1,030.8 million).
Note 8 Capital Adequacy
In 2007 new regulations for calculating capital adequacy, referred to
as Basel II, have been implemented. The new capital framework is
based on a three-pillar approach, namely Pillar 1, minimum capital
requirements, Pillar 2, the supervisory review, and Pillar 3, market
discipline.
The main change compared to the former regulations, referred to as
Basel I, is the introduction of a new risk type, operational risk.
Moreover, different levels of sophistication for calculating credit
risk and operational risk exist and incentives for the more advanced
and risk sensitive methods are given. Further, the minimum capital
requirement should be assessed in an Internal Capital Adequacy
Assessment Process (ICAAP) to ensure that the institution under
supervision is adequately capitalised and will remain so over the
foreseeable future.
Basel II will not immediately become fully effective from a capital
adequacy perspective since a transition period is stipulated, in
which capital floors calculated based on Basel I set limits to the
potential capital decrease. In 2007, the lowest accepted amount for
RWA is 95% of the amount calculated in accordance with the Basel I
regulations, for 2008 it is limited to 90% and 2009 to 80%. The
transition period will end in 2010.
Nordea will gradually implement the more advanced methods to
calculate minimum capital requirements.
For credit risk, Nordea has been approved to use foundation Internal
Rating Based (IRB) methods for the Corporate and Institutions
exposure classes from the second quarter 2007, which cover more than
50% of Nordea's credit portfolios. The other exposure classes, e.g.
Retail and Sovereign are calculated according to the standardised
methods. Nordea will gradually apply the advanced IRB approach. The
next step will be to start the implementation according to the IRB
method for the Retail exposure class. The foundation IRB method
allows the institution to use its internal rating system and own
estimates of Probability of Default (PD) whereas the advanced IRB
method also allows the institution to use internal models and
estimates of Loss Given Default (LGD) and Credit Conversion Factors
(CCF).
For market risk, Nordea received the approval Q4 2006 under Basel I
for using the internal VaR models for calculating general and
specific risk for the larger part of the trading book portfolio.
Under a transition period the remaining part of the market risk in
the trading book is calculated using the standardised methods.
For operational risk, Nordea has chosen to use the standardised
approach for calculating the minimum capital requirement. The method
and the operational risk management framework have been reviewed by
the supervisors and assessed to fulfil all requirements for using the
standardised approach. Nordea has for several years been collecting
data on operational risk events, but no outright date for applying
for the advanced measurement approach has been set.
In May 2007 Nordea submitted an ICAAP report to the supervisors, i.e.
a report stating and explaining Nordea's required and available
capital including stressed scenarios. The required capital is
calculated based on Nordea's Economic Capital framework with
adjustments for stressed scenarios and other input, such as strategic
objectives. The available capital is calculated as the capital base.
The conclusion in the report is that Nordea is well capitalised even
under stressed scenarios. The supervisors will review the report
under the Supervisory Review and Evaluation Process.
The final Basel II report will be submitted to the FSAs at a later
date and the RWAs presented in this report may be subject to
adjustments.
Note 8,
continued
Cap-
ital 30 30 31 30
Base Jun Jun Dec Jun
2007 2007 2006
1 1 2006 1
Basel Basel Basel Basel
EURm II I I I
Tier 1
capital 9,107 9,107 8,998 11,558
Total
capital
base 10,332 10,306 10,433 13,002
1 Excl-
uding
the
result
for
the
period
Cap-
ital
req-
uire- 30 30 30 31 30
ments Jun Jun Jun Dec Jun
2007 2007 2007 2006 2006
Basel Basel Basel Basel
II I I I
Cap-
ital
requir-
EURm ement RWA RWA RWA RWA
Credit
risk 4,843 60,532 63,016 59,151 55,307
IRB
foun-
dation 1,922 24,027 na na na
- of
which
corp-
orate 1,496 18,704 na na na
- of
which
instit-
utions 394 4,927 na na na
- of
which
other 32 396 na na na
Stand-
ardised 2,921 36,505 na na na
- of
which
retail 1,183 14,787 na na na
- of
which
sover-
eign 8 95 na na na
- of
which
other 1,730 21,623 na na na
Basel I na na na 59,151 na
Ma-
rket
risk 85 1,063 6,600 6,119 12,715
- of
which
trading
book,
VaR 60 752 na 842 na
- of
which
trading
book,
non-
VaR 25 311 na 5,277 na
- of
which
FX,
non-
VaR 0 0 na 0 na
Opera-
tional
risk 272 3,403 na na na
Stand-
ardised 272 3,403 na na na
Total 5,200 64,998 69,616 65,270 68,022
Adjust-
ment
for floor
rules
117 1,462 na na na
Total
repo-
rted 5,317 66,460 69,616 65,270 68,022
Cap-
ital 30 30 31 30
ratio Jun Jun Dec Jun
2007 2007 20062 20062
Tier
I ratio,
%,
incl.
profit 14.5 13.9 13.8 17.8
Capital -
ratio,
%,
incl.
profit 16.4 15.6 16.0 19.9
Tier I
ratio,
%,
excl.
profit 13.7 13.1 11.8 17.0
Capi-
tal ratio,
%,
excl.
profit 15.5 14.8 14.0 19.1
2 No
floor
app-
lied
for
2006
Anal-
ysis
of
capital
requir-
ements
Ave- Cap-
rage ital
Exp- risk requir-
osure weight, ement
class % EURm
Corp-
orate 57 1,496
Insti-
tutions 21 394
Retail 51 1,183
Sovereign 1 8
Other 43 1,762
Total 4,843
credit
risk
Note 9
Off-balance
sheet commitments,
EURm
30 31 30
Jun Dec Jun
EURm 2007 2006 2006
Guarantees 8,609 6,628 5,886
Other contingent
liabilities 2,066 1,813 1,668
Stand-by facilities 7,914 6,645 6,389
Unused credit lines 7,853 8,994 8,152
Other commitments 371 488 603
Total 26,813 24,568 22,698
Of which on behalf of
associated companies 20 13 13
Note 10 Assets
pledged, EURm
Other
Ple- Mor- coll-
30 Jun 2007 dges tgages ateral Total
Assets pledged as
security for own
liabilities - - 20 20
Assets pledged on
own behalf for other
purposes - - 6,998 6,998
Assets pledged on
behalf of Nordea
group
undertakings - - - -
Assets pledged on
behalf of other parties - - 252 252
- of which to related
party management - - - -
Total - - 7,270 7,270
31 Dec 2006
Assets pledged as
security for own
liabilities - - - -
Assets pledged on
own behalf for
other purposes - - 8,159 8,159
Assets pledged on
behalf of Nordea group
undertakings - - 100 100
Assets pledged on
behalf of other parties - - 388 388
- of which to
related
party
management - - - -
Total - - 8,647 8,647
30 Jun 2006
Assets pledged as
security for own liabilities - - - -
Assets pledged on
own behalf for other purposes - - 6,335 6,335
Assets pledged on
behalf of Nordea group
undertakings - - 101 101
Assets pledged on
behalf of other parties - - - -
- of which to related
party management - - - -
Total - - 6,436 6,436
In addition to the above commitments, NBF had sold EUR 3m debt
securities with repurchase agreements.
Stockholm, 18 July 2007
Board of Directors
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