Nordea: Interim Report Second Quarter 2006

Strong results reflecting robust and diversified business mix – RoE up to 21.2%

• Net profit up 17% to EUR 1,405m (EUR 1,200m in the first six months of 2005).
• Operating profit up 14% to EUR 1,790m (EUR 1,572m).
• Income up 8% to EUR 3,544m (EUR 3,276m) – Net interest income up 4%.
• Costs up 3%, excluding Life costs up 2%.
• Cost/income ratio continued down to 53% from 55%.
• Positive net loan losses of EUR 120m (EUR 107m) – 9th consecutive quarter with net recoveries.
• Earnings per share EUR 0.54 (EUR 0.45), up 20%.
• Return on equity 21.2% (19.4%).

Profitable growth in all Business Areas – continued strong performance in key growth areas

• Number of core customers increased by 6%.
• Consumer lending up 10%; Number of credit cards up 30%.
• Strong growth in business volumes with small and medium sized enterprises (SMEs).
• Assets under Management up 11%; Nordic Private Banking customer base increased by 10%.
• Net written premiums in Life up 35%.
• Continued customer driven growth in capital market activities.
• Execution of growth plans in Sweden, Poland and the Baltics is progressing.

"The strength of the Nordea business model and the execution of our growth strategy is consistently paying off and has, despite the capital market turbulence, resulted in a return on equity of 21.2% for the first half year of 2006 – well above our financial target.

The income growth of 8% has been well diversified by products and markets and reflects an increasing number of core customers and a stronger focus on event-based and advisory related products and services. We have managed to keep the cost increase at a moderate 3% resulting in a gap between the income and cost growth of 5%-points.

I feel confident that we will be able to realize at least the same gap for the full year by continuing to capture profitable growth opportunities while maintaining our strict risk and cost management. Should the capital market turbulence persist and the macroeconomic environment change, Nordea has the flexibility and ability to adjust accordingly," says Lars G Nordström, President and Group CEO of Nordea.