0
96
161
225
106
3
1
144
163
163
153
111
175
80
70
127
127
127
233
170
0
163
82
115
103
172
206
239
178
137
117
204
208
204
199
178
211
157
155
182
185
186
242
206
134
206
159
182
Primary Colours Extra Colours
1 76
116
154
Chart Colours
166
166
166
191
191
191
127
127
127
204
102
0
0
96
161
119
154
188
CFO
Long term commitment, deliver on the
financial plan Financial plan and targets
Torsten Hagen Jørgensen
Group CFO
0
96
161
225
106
3
1
144
163
163
153
111
175
80
70
127
127
127
233
170
0
163
82
115
103
172
206
239
178
137
117
204
208
204
199
178
211
157
155
182
185
186
242
206
134
206
159
182
Primary Colours Extra Colours
2 76
116
154
Chart Colours
166
166
166
191
191
191
127
127
127
204
102
0
0
96
161
119
154
188
Cost plan 2013-15 delivering the targeted 5% reduction with all
key elements contributing, but some unplanned events
Streamline physical distribution P
Optimise advisory services P
Reengineer processes P
Cost development 2013-2015 Cost efficiency clusters in 2015 plan
Enhance digitalisation P
Streamline IT P
Transform premises P
1) Not part of original 2015 plan
2) Based on FX rates as per 1 May 2015
Optimise external spend P
Expected
Reported
costs
2015E
-5%
~4,700
FX2
~190
Further
costs to
meet
regulatory
requirements1
27
Unexpected
increase in
perfor-
mance
related
salaries
76
Underlying
costs
2015E
~4,790
Net cost
reductions
~250
2013
5,040
%
0
96
161
225
106
3
1
144
163
163
153
111
175
80
70
127
127
127
233
170
0
163
82
115
103
172
206
239
178
137
117
204
208
204
199
178
211
157
155
182
185
186
242
206
134
206
159
182
Primary Colours Extra Colours
3 76
116
154
Chart Colours
166
166
166
191
191
191
127
127
127
204
102
0
0
96
161
119
154
188
Nordea market commitments and financial priorities 2016-2018
Improved income mix & growth
Continued cost efficiency
Disciplined capital management
Highly stable CET1 ratio
Strong capital generation and
efficiency with return of excess capital to
shareholders
ROE above
the Nordic peer average
Maintain a low risk profile
based on actively managed
and resilient businesses
Financial priorities Market commitments
0
96
161
225
106
3
1
144
163
163
153
111
175
80
70
127
127
127
233
170
0
163
82
115
103
172
206
239
178
137
117
204
208
204
199
178
211
157
155
182
185
186
242
206
134
206
159
182
Primary Colours Extra Colours
4 76
116
154
Chart Colours
166
166
166
191
191
191
127
127
127
204
102
0
0
96
161
119
154
188
Continued cost efficiency
■ Moderate salary drift
■ Premises and other external contracts, .,
procurement, linked to general inflation
Underlying
cost drift
Selected
growth areas
■ Private Banking distribution capacity, Global Fund Distribution,
Focused Wealth Management product development
■ Selected areas in Capital Markets and Transaction Banking
■ Online service, sales and advice
Compliance
and
Simplification
■ Investment in Core banking, Payment & Common data
platforms
■ Resource build up within compliance and operational risk
Cost
efficiency
■ Continue branch optimisation & remove manual cash handling
■ Simplify & automate services, processes and products
■ IT and consultancy insourcing
-2%
~1%
<1% cost
CAGR
Key cost drivers and initiatives 2016-2018
0
96
161
225
106
3
1
144
163
163
153
111
175
80
70
127
127
127
233
170
0
163
82
115
103
172
206
239
178
137
117
204
208
204
199
178
211
157
155
182
185
186
242
206
134
206
159
182
Primary Colours Extra Colours
5 76
116
154
Chart Colours
166
166
166
191
191
191
127
127
127
204
102
0
0
96
161
119
154
188
Management buffer reflects Nordea’s diversified business
■ Supported by close to 10 year track-
record of low CET1-ratio volatility of
21/38bps
■ Committed to maintaining a strong
capital base and actively managing to
further reduce CET1 ratio volatility
Pillar 1 Swe & Nor
Mortgage
Risk Weight
floors
Counter-
cyclical
Buffer1
(%)
CET1
level as per
Swedish
FSA1
Management
buffer
Pillar 2
(IRRBB,
pension,
conc. risk)2
Pillar 2
Systemic
Risk
Buffer
1) Countercyclical buffer only applied for Sweden in accordance with Swedish FSA Memorandum on Capital Requirement for Swedish banks (Feb 17, 2015)
2) In the Swedish FSA Memorandum on May 11, 2015 (adjusted requirement on the assessment of capital requirements from three significant risk types), the
Swedish FSA published the final methods for assessing requirements for three different risk types. The CET1 requirement for Nordea based on these
methods is estimated to %. Note that individual Pillar 2 CET1 requirements for other risks are estimated and agreed bilaterally with the Swedish FSA in the
SREP and can vary over time. In the Swedish FSA Memorandum on Capital Requirements for Swedish Banks (Feb 17, 2015) a standardised CET1 value of
% was used for other Pillar 2 risks
Pillar 2
(other)2
Components Bps
FX volatility
(10% EUR weakening/historical vol. analysis)
~30-40
Pension risk
(50bp decrease of discount rates)
~20
Countercyclical buffer variation,
unforeseen events
~0-90
Total management buffer 50-150
Management buffer designed to cover
CET1 ratio build-up, %
0
96
161
225
106
3
1
144
163
163
153
111
175
80
70
127
127
127
233
170
0
163
82
115
103
172
206
239
178
137
117
204
208
204
199
178
211
157
155
182
185
186
242
206
134
206
159
182
Primary Colours Extra Colours
6 76
116
154
Chart Colours
166
166
166
191
191
191
127
127
127
204
102
0
0
96
161
119
154
188
Earnings stability
– The most stable bank in the Nordics
1) Calculated as quarter on quarter volatility in CET1 ratio, adjusted so that the volatility effect of those
instances where the CET1 ratio increases between quarters are excluded
17 25
32
46
83
150
Nordea Peer 4 Peer 3 Peer 1 Peer 5 Peer 2
Q
u
a
rt
e
rl
y
n
e
t
p
ro
fi
t
v
o
la
ti
li
ty
Q
u
a
rt
e
rl
y
C
E
T
1
r
a
ti
o
v
o
la
ti
li
ty
¹
Peer 2 Peer 3 Nordea Peer 4 Peer 5 Peer 1
Max
quarterly
drop
Nordea and peers 2006-2015, %
0
96
161
225
106
3
1
144
163
163
153
111
175
80
70
127
127
127
233
170
0
163
82
115
103
172
206
239
178
137
117
204
208
204
199
178
211
157
155
182
185
186
242
206
134
206
159
182
Primary Colours Extra Colours
7 76
116
154
Chart Colours
166
166
166
191
191
191
127
127
127
204
102
0
0
96
161
119
154
188
Dividend pay-out ratio
of at least 75%1
Group financial targets 2016-2018
1) For 2015 the dividend ambition is unchanged, ., to increase the pay-out ratio from 2014
2) Weighted to reflect Nordea’s Nordic geographic mix
3) Excluding FX and performance related salaries
RoE above the Nordic peer average2
<1% cost CAGR3
Largely unchanged
Management buffer of 50-150 bps above
the regulatory CET1 requirement
Dividend policy
Capital policy
RoE
Costs
REA
Financial Targets - based on currently known regulatory requirements
A total
dividend
CAGR of
>10%
0
96
161
225
106
3
1
144
163
163
153
111
175
80
70
127
127
127
233
170
0
163
82
115
103
172
206
239
178
137
117
204
208
204
199
178
211
157
155
182
185
186
242
206
134
206
159
182
Primary Colours Extra Colours
8 76
116
154
Chart Colours
166
166
166
191
191
191
127
127
127
204
102
0
0
96
161
119
154
188
9%
10%
11%
12%
13%
%
%
2014 2013 2012
Note. Nordea and Peers adjusted for publicly disclosed one-offs
Peers’ Rolling 4 quarters
Nordea Rolling 4 quarters
Country share
of Nordea capital
Weighting of Peer average
The RoE is targeted to be above the Nordic peer average
throughout the period on a rolling 4 quarter basis
35% DK
20% FI
20% NO
25% SE
DB 30%
Weight in benchmark
DNB 20%
SHB 15%
SEB 15%
SWB 10%
OP-P 10%
Nordea & Peer average RoE development
