Nordea: Interim Report Second Quarter 2005

Strong results in first half of 2005

Operating profit EUR 1,572m (EUR 1,481m in first half of 2004), up 33% excluding real estate gain of EUR 300m last year

• Total income increased 8% to EUR 3,276m (EUR 3,031m) – Net interest income up 6%.
• Total expenses unchanged at EUR 1,816m (EUR 1,811m).
• Positive net loan losses of EUR 107m (EUR –39m).
• Net profit at EUR 1,200m (EUR 1,164m in first half 2004 including real-estate gain).
• Earnings per share EUR 0.45 (EUR 0.41).
• Return on equity 19.2% (19.3%) compared to 14.4% excluding real-estate gain last year.

Improving performance confirmed in Q2

• Net profit up 42% to EUR 705m (EUR 495m in Q1 2005).
• Operating profit up 28% to EUR 884m (EUR 688m).
• Total income up 7%.
• Total expenses largely unchanged.
• Positive net loan losses for the fifth consecutive quarter.

Strong volume growth continues

• Total lending up 13% year-on-year.
• Household mortgages up 15%.
• Lending to small and medium-sized corporates up 12%.
• Consumer credits up 14%.
• Deposits up 8%.
• Assets under management EUR 142bn – up 15%.
• Lending in Poland and the Baltics up 39%.

"This is a strong result. Following the successful transformation of Nordea into an integrated and focused organisation, we have been able to capture the growth opportunities in the first half of 2005. We see income growth despite increased margin pressure. Volumes continue to grow in all business areas, while overall costs are kept unchanged. The fifth consecutive quarter with positive net loan losses underlines the strong credit quality," says Lars G Nordström, President and Group CEO of Nordea.

The full Interim Report Second Quarter 2005