Wholesale Banking Capital Markets Day

Martin A Persson, Head of Wholesale Banking 25 October 2019 Disclaimer

▪ This presentation 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 will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. ▪ Important factors that may cause such a difference for Nordea include, but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels. ▪ This presentation does not imply that Nordea has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.

2 Wholesale Banking

KEY MESSAGES

All-time-high customer satisfaction

Reduce capital consumption

New strategic direction

3 Introduction to Wholesale Banking Wholesale Banking overview

Large corporate and institutional customer segments 10Y EUR interest rate Complex Daily banking 1,2

0,8

WB CBB CBB 0,4 LC&I BB BBD 0 Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct 19

-0,4

Selected capabilities Wholesale Banking capital requirement Loans WCM +70% Deposits Auto FX Payments Investment products Guarantees US cash management Customer Equities & ECM Interest rate derivatives Fixed income Sustainability advice FX sales Pensions Cards M&A 2011 2019

4 Introduction to Wholesale Banking All-time-high customer satisfaction with leading advisory and product services

Prospera overall performance1 #1 Nordic DCM franchise2 Award-winning Transaction Banking Rank 2018 2017 Best Bank for Cash Best Trade Finance Nordea 6 387 Management in Bank in the the Nordics Nordic Region 1 1 Nordea 2 3 SEB SEB 4 186 3 1 Danske Bank 4 4 DNB Danske Bank 2 941 4 5 Swedbank Global Finance Awards Global Trade Review

Citi 2 382 Prospera overall penetration1 Rank % Best Transaction Most Innovative 2018 2017 2018 Deutsche Bank 2 206 Bank in the Nordics use of Blockchain we.trade 1 1 86 Nordea BNP Paribas 2 119 2 2 67 Danske Bank

2 3 67 SEB Barclays 2 060 4 4 42 Handelsbanken The Banker The Blocks 5 5 40 DNB

5 1. Source: Kantar Sifo, Prospera Corporate Banking 2018 Nordics 2. Source: Dealogic, Corporate bonds, 2019 YtD Q3 (EURm) Wholesale Banking in the Nordea Group Return improvement needed

Income Cost Capital 1,555m -957m 7,852m

18% 19% 30%

Share of Group income Share of Group cost Share of Group capital (Last 12 months) (Last 12 months) (Q3 2019)

ROCAR Cost/income ratio 6% 62%

6 Note: WB ROCAR excl items affecting comparability. C/I ratio and ROCAR on rolling 12 months basis Strategic direction for Wholesale Banking New strategic direction for Wholesale Banking

Reduce low-return assets Capital optimisation Capital optimisation EUR~1.5bn 1.5bn EC EC / ~8bn / 8bn REA REA reduction reduction

Streamline Markets business model Simplification Complexity reduction TotalTotal cost costtakeout takeout of up of to ~200m EUR 200m

Invest in ESG and WBx RoCaR enhancement ROCAR enhancement to ~10%~10%

Optimise international footprint

7 Strategic direction for Wholesale Banking Zooming in on the new strategic direction

▪ Reduce low-returning on-balance sheet commitments Reduce low-return assets ▪ Review of sub-segments ▪ Increase active capital reallocation

▪ Targeting 25% EC reduction Streamline Markets business model ▪ Product review, reducing complexity and cost ▪ Increase digital distribution and leverage partnerships

▪ ESG advisory-driven fee income Invest in ESG and WBx ▪ Strengthen our leading position for ESG/sustainable financing ▪ WBx new unit leveraging data and digitalisation for growth

▪ Leverage our US branch stronghold Optimise international footprint ▪ Efficiencies through new global customer support unit ▪ Partnerships for continued service coverage

8 Strategic direction for Wholesale Banking Reality check Corporate economic income Markets capital and income dynamics

8% Complex 17% 15%

31% 61% 49% Advanced 59%

37% Basic 24%

Customer turnover: < 1 bnEUR 1-5 bnEUR > 5bn EUR EC Income

9 Wholesale Banking

TARGET 2022

All-time-high customer satisfaction ROCAR ~10% Reduce capital consumption New strategic direction

10