Operationsin 2001

Nordea is the leading financial services group inthe Nordic and Baltic Sea region and operatesthrough four business areas: Retail Banking,Corporate and Institutional Banking, Asset Management & Life and General Insurance. The Nordea Group has nearly 11 million customers,1,245 bank branches and 125 insurance servicecentres in 22 countries. The Nordea Group is aworld leader in Internet banking, with more than2.8 million e-customers. The Nordea share is listed in Stockholm, Helsinki and Copenhagen.

Nordea Group 20012

In this summary of the annual report ”Nordea” means Nordea AB (publ), the Nordea Group or the business operations of

the Nordea Group. The significance in individual cases is shown by the context.

This is Nordea

This is a summary

of the Nordea Annual

Report 2001

Nordea relies increasingly on theInternet in the communicationwith shareholders and investors.During 2001 some 700,000visitors have entered the finan-cial homepages of www.nordea.com and downloaded460,000 financial reports andpress releases.

Annual report practiceNordea has decided to print thefull annual report in English only.The annual report can beordered throughwww.nordea.com

This summary of the annualreport is produced in Englishand in the four Nordic languagesand is available on the Internetand in branch offices.

The annual reports and otherfinancial reports published bythe Nordea Group may beordered from:Investor RelationsSE-105 71 StockholmTel: +46 8 614 7851Fax: +46 8 614 8710E-mail: investor.relations@nordea.com

Publisher:NordeaHamngatan 10SE-105 71 Stockholm

Lay out: Group Identity andCommunications Production: n3prenör.

Nordea Group 2001 3

2001 was a year of committed work todeliver merger synergies and intensepreparations to realise the Nordea busi-ness model, but also a year of uncertain-ty in equity markets and in the Nordiceconomy. With a return on equityexcluding goodwill at 19%, financialresults were in line with earlierperformance but short of targets.

Nordea will offer better individualfinancial solutions at lower costs basedon harmonised service concepts withstandardised products and unifiedprocesses. No combined solution needsto be the same for any two customers. No single product or process needs tobe different between the countries ofour home market.

This business model represents a possi-bility to meet our financial objectivesand to reach our ambitious cost/incomeratio target within three years. We havestarted tapping this potential.

In 2001 Nordea was impacted by threefactors: the sluggish world economyand home markets with significantlyreduced growth, the continued transfor-mation of the financial services industryand our own mission to deliver the ben-efits of our mergers.

Weakened economiesAn economy already in the beginning ofa recession was brought to almost nogrowth in many markets by the 11September catastrophe and the ensuingchain of events. It kept business downwith falling share prices and tradingvolumes, cautious consumers, reducedinvestments, increasing credit losses,downward pressure on new savings

products, a slowdown of trade and lim-ited listings or restructuring of Nordicbusinesses.

The banking sector mirroring generalbusiness activity was impacted by therecession. Across Europe, the industryhad a weak year. A turnaround isexpected this year.

Continued structural changeBut structural change continued. Thefinancial services industry is increasing-ly global and IT-based. Consumersbecome ever more demanding whiledemography contributes to a change indemand profile. Demands for share-holder value continue to rise.

The industry needs to provide easy touse e-services, reliable and value addingasset management and a financial part-ner to trust with a personal relationship.For the many customers seeking a part-ner, consolidation to provide broaderservices at reduced costs continues. Forthe few preferring to shop around,niche banks and new entrants to themarket are abundant.

Nordea respondsIn response to these trends, Nordea isbuilding an integrated Nordic groupproviding universal banking and insur-ance services. We continued to growthrough strategic acquisitions in Polandand above all in Sweden through theacquisition of Postgirot Bank.

Nordea’s retail operations aim to be sec-ond to none with focus on deepeningpartnerships with customers. We areresponding to the demand for innova-tive e-services that empower customers

The full potential of the Nordea

business model

Nordea is

building an inte-

grated Nordic

group providing

universal banking

and insurance

services.

Nordea Group 20014

and release resources for improvedpersonal relationships and advice. We arebuilding a highly competitive and awardwinning Asset Management & Lifebusiness.

Financial result short of targetsDespite intense work and a number offully noteworthy achievements, overallfinancial performance last year did notmeet our targets. We are satisfied thatreturn on equity excluding goodwillremained above 19%. But we see poten-tial for improvement and we are not sat-isfied with a falling share price endingthe year at EUR 5.97, down from EUR8.10, despite this representing an indus-try and stock market trend.

We are not satisfied with the loan lossesappearing in the second half of the year.We are, however, satisfied that we iden-tified their origin, reported them andtook action and that the credit portfoliois of good quality by industry standards.

ProgressWe delivered merger synergies of EUR168m in 2001 as promised. But we mustcontinue and increase our focus on costreduction.

We are gradually building a stronginvestment bank. We do have a vastlyimproved offer in Sweden to large cor-porations. But we cannot be content untilall potential customers share that view.

We built Asset Management & Life into asavings powerhouse. We received muchacclaim and inflow was satisfactory.

Retail Banking continued to report goodperformance with improved relativecustomer satisfaction positions and anoth-er record breaking year for e-services.With 88 million Internet transactions

last year, Nordea stays in a world lead-ership position. The number of e-cus-tomers will pass 3 million this spring.But we are committed to realise thepotential of an improved cost/incomeratio when full integration is imple-mented.

Preparing next phaseWhile we did not create the financialresults we aspired to, we identified andbuilt potential. We put adequate systemsin place and removed structural barriersto integration.

The background is that in a Europeanperspective, Nordic banking has a strongposition based on early adaptation tonew technology, skilled employees anddemanding customers. Nordea is in thebest position among the Nordic con-tenders to use these competitive advan-tages to take the business to a new level.This is our focus going forward.

Managing for performance A new groupwide Planning and Per-formance Management Model willimprove our ability to manage complex-ity. It aims at aligned and focusedimplementation of strategy through effi-cient business planning, monitoring and follow-up.

The system is built around BalancedScorecards with Key Performance Indi-cators and linked incentive systems,Rolling Financial Forecasts replacingP/L budgets, Service Level Agreementsbetween providers and receiving unitsand strategy and business planningwith quarterly reviews.

Streamlining structuresIntegration proceeded with legal struc-ture changes. All core business is brand-ed Nordea. A groupwide culture change

This is our business model to create superior value. It requires us

to constantly improve and innovate. It empowers customers and can

only succeed with empowered managers and employees sharing and

exchanging experiences and new ideas.

Nordea Group 2001 5

programme – From Words To Action -around the joint Nordea values wasimplemented.

Nordea is managed as an integratedgroup in focused business areas.Reviewing this structure, the decisionwas made to further integrate interrelatedbusinesses and to divest the productionof general insurance. Core business areasfor coming years are Retail Banking,Asset Management & Life and Corporateand Institutional Banking includinginvestment banking. A corporate centreand corporate staffs support them.

Altogether, these actions will help ustap the potential of the Nordea businessmodel.

Better at lower costUltimately, Nordea has been created toenable every account manager and per-sonal banker in every branch to offerbetter financial solutions to every cus-tomer – better for the customer, betterthan competition, better than before. As partners to help our customers suc-ceed, we will be local and personal andseek individual solutions.

Our Group has also been formed toenable us to produce and deliver com-petitive products and services packagedin service concepts facilitating individualcustomer solutions at lower cost and/orhigher quality. In fully integrated pro-duction and distribution, we must beNordic and electronic and apply stan-dardised solutions.

Individual and standardisedWe will offer increasingly competitivecustomer solutions by always choosingthe best product or service available inthe Group or to be found in the marketand only that. We will operate at

increasingly competitive costs by alwayschoosing the most efficient process inthe Group or to be found in the marketand only that.

No combined solutions need to be thesame for any two customers. Respectinglegal and tax requirements, no singleproducts or services or processes needto be different between the countries ofour home market.

Untapped potentialThis is our business model to createsuperior value. It requires us to constantlyimprove and innovate. It empowerscustomers and can only succeed withempowered managers and employeessharing and exchanging experiencesand new ideas. When fully realised, itwill make more things possible for cus-tomers, shareholders, employees and thecommunities and societies we operatein. This is the mission that keeps ener-gising us.

And we know it can work. The morewe learn from successes and mistakes inbringing the Group together, the higherthe potential we discover. Our best esti-mates convince us that Nordea can setambitious targets to improve its financialperformance.

Vision and objectivesOur vision is clear. By adopting thisbusiness model we will be valued as theleader in our region. We will be numberone or number two or show superiorprofitable growth in all we do. In multi-channel distribution and e-services, wewill retain a world leadership position.

Our objective is to create shareholdervalue in the top five of our Europeanpeer group.

Nordea Group 20016

By the end of 2004, we will reach ourcost/income target.

Strategic imperativesReaching these targets implies uncom-promising dedication to the businessmodel. Three imperatives will guide us:

1. There is one and only one Nordeabusiness model. There will be noexcuses to stay in the past. There willbe no duplication of work.

2. There is for every business area oneand only one best way. There mustnot be two almost similar productsrequiring different processes or twonearly similar processes deliveringbasically the same product.

3. There is for Nordea one and only onemost efficient business support. Thereis no free ride being in-house. Every-thing will be measured against thebest in the market and outsourced ifit does not stand the test.

Investments will be required. We willmake them and we will explain how theywill pay back.

Make it possible!This programme will test our commit-ment to create value, our ability to inno-vate and our trust in empowerment.

It will work when we start hearing evenmore about “my customer”, “jointNordic”, “best practice”, “benchmark-ing”, “continuous improvement”, “tooexpensive”, “outsourcing”, “go do it”and “make it possible”.

It will work when we stop completelyhearing about “my country”, “wealways did it this way”, “we never didit that way” and “wait, we need a pro-ject”.

Actions for customer satisfactionOne important group strategy theme isgrowth of revenue. In essence this is toproactively offer financial solutions thatcreate superior value. Some examples:

By branding the retail banks Nordea,we help customers identify a Nordicpartner and to ask for more. A distribu-tion agreement between Retail Bankingand insurance meets just that customerneed. Our joint Nordic service level willbe further improved step by step.

In Retail Banking, we continue the inte-gration into one business model forhousehold and corporate customers byharmonising concepts for increasedcross-selling and by integrating chan-nels. “Long-Term Savings & Life” and“Nordic Private Banking” are joint AssetManagement & Life and Retail Bankingunits to enhance our retail savings andinvestment position. For corporate cus-tomers, focus is on further developmentof regional products.

The pan-Nordic Solo Market with 1,000companies present is a forum for busi-ness accessible to millions of personalcustomers and businesses for secure e-trading. With e-identification solved,e-invoicing and e-salary will help per-sonal and corporate customers saveboth time and money. In partnershipsNordea continues to develop new e-services. GPRS-based mobile transac-tions constitute a recent entry on the listof innovations.

With the integration of Postgirot Bankinto the Group, payment services will befurther improved.

Actions for shareholder value The other strategic themes aim toensure operational excellence throughbenchmarking and best practice and to

Nordea Group 2001 7

optimise the use of capital and riskmanage-ment, thereby lowering the cost of capital.Some examples:

Production will be centralised and auto-mated wherever possible. Back-officeresources and IT solutions will graduallybe shared by different units. A business-enhancing IT structure is under way.

Divestment of general insurance produc-tion will reduce capital requirements.Further implementation of the new legalstructure will enable further optimising ofcapital. Rolling out economic capitalmodels across the Group will focus onand reduce capital needs. In life insur-ance, an appropriate model for embeddedvalue and profit on economic capital willbe developed.

Consistent strategyIn 1997 to 2000 Nordea was created throughan unprecedented number of cross-bordermergers that shaped the first truly Nordicfinancial services group, the foundation forthe business model we are committed to.We accomplished a vision.

In 2001 Nordea followed up on the prom-ised synergies and, maybe even moreimportantly, initiated and went throughmajor structural changes to form an inte-grated group and remove internal obsta-cles to the new business model. We tookon a mission to deliver.

In 2002 through 2004 we will implementthe Nordea business model and createfurther value. We have commenced therealisation of second wave synergies of the mergers and we do it by taking on thorough change.

Not easy – but rewardingOur employees have shown strong commitment to building Nordea and put in long hours

of hard work. In addition to the manythanks they receive from customers, theydeserve well earned thanks from manage-ment and shareholders too.

As to the road forward, I did not say itwill be easy. But rewarding!

Thorleif Krarup

Nordea Group 20018

With many financial products and ser-vices becoming less differentiated andmore of a commodity, a key objective isto build a strong brand in order todeliver synergies across borders and toprovide added value for our customers.

A strong, clear and differentiated brandwill support the business and attractcustomers.

As such, the Nordea brand, of whichthe name and visual identity is only apart, is a key strategic asset that willneed to be nurtured, managed and keptrelevant in order to deliver optimumvalue to customers and shareholders.

Progress in 2001During the year, the Nordea name andvisual identity has been increasinglypromoted externally and adopted byentities in the Group, which culminatedin the roll-out of a common visual iden-tity at branch level in December. Initial results from customers have beenencouraging and show that awarenessof the name at year-end was over 80%in all of Nordea's major markets.

In parallel with this, progress has beenmade to define and articulate commonvalues and ambitions, retaining ele-ments of the past and combining themwith new desired aspirations.

A process has begun to integrate theseand to adopt them internally as a partof the common corporate culture.

The nam

Following the adoption of the new name,

Nordea, at the end of 2000, further progress has

been made during 2001 to apply the Nordea identity

and to begin to transform it into a brand.

Nordea Group 2001 9

This has resulted in the need to inte-grate branding more closely with busi-ness processes and to ensure that newproducts and services deliver the intentof the brand. Since the brand is a keystrategic asset, steps have been taken toput in place an organisational structurethat will allow the brand to be man-aged as part of the business process.

2002 developmentsIt is expected that most of the visualmanifestations of the brand identitywill be converted by the early part ofthe year and that progress will be madeduring the year to capitalise on themomentum and investment made in2001.

A key driver will be to bring morefocus to the brand and to sharpen itsdelivery to all customer touch points.

me changeprocess

Nordea Group 200110

MissionMaking it possible.

By providing a broad set of seamless, easily accessible and competitive financial solutionsand advisory services, Nordea helps customers, where we operate, to reach their objectives.

VisionWe will be valued as the leading financial services group in the Nordic and Baltic marketswith substantial growth potential.

We will be number one or number two or show superior and profitable growth in everymarket and product area in which we choose to compete.

We will have the leading multichannel distribution platform with a top world ranking in e-based financial solutions.

PerformanceWe will create value for our shareholders, measured by total shareholder return, in the topfive of our peer group of European listed financial services companies.

We will enhance value through concentration on core business, stable and broadly basedgrowth of revenue, operational excellence and an optimal use of capital combined withbalanced risk-taking.

We will rank among the best financial services companies in terms of customer satisfactionand brand loyalty.

We will attract, develop and retain highly motivated, competent and empowered employees.Measurements of Nordea employee expertise and motivation are to show continuous highlevels of employee satisfaction.

We are committed to constant improvement but never claim to be perfect.

The NordeaCorporate statement

Nordea Group 2001 11

Highlightsof 2001

Stable result under challenging market conditions in 2001

• Total income up 3% and expenses unchanged adjusted for acquisitions

• Net annual loan losses 0.29% against target of maximum 0.40% over abusiness cycle

• Earnings per share EUR 0.53 (EUR 0.58 in 2000)

• Return on equity excluding goodwill 19.2% (19.4%)

• Dividend of EUR 0.23 per share proposed.

Significant strategic progress

• Target of 2.7 million e-banking customers achieved, new target of 3.2 million by the end of 2002

• Accumulated merger synergies of EUR 168m have been realised by theend of 2001 – EUR 360m will be delivered by the end of next year

• A second wave of integration programme will result in additional annualsynergies of the same magnitude within a three-year period

• In addition, estimated synergies from integrating Postgirot Bankincreased to EUR 65m

• The entire Group is now operating under one common brand.

Nordea Group 200112

Operational income statement

Operating profit for the year 2001amounted to EUR 1,928m (EUR2,435m in 2000). The reduction of21% was mainly due to consider-ably higher investment earnings in2000 as a result of particularlystrong capital markets in that year.Adjusted for Nordea Bank Norway,operating profit was reduced by23% from 2000 to 2001.

Profit excluding investment earn-ings and goodwill depreciation wasat the same level as last year andamounted to EUR 1,923m (EUR1,955m). Total income and expensesincreased by 15% and 17%, respec-tively, primarily as a result of theacquisition of Nordea Bank Norway.Adjusted for this and the acquisi-tion of Postgirot Bank in 2001, totalincome increased by 3% andexpenses were unchanged. At theend of 2001, accumulated realisedmerger synergies amounted to EUR168m.

IncomeNet interest income showed a rela-tively stable development duringthe year and increased by 22% toEUR 3,465m (EUR 2,838m).Reduced short-term interest ratescaused downward pressure ondeposit margins. Average lendingmargins remained largelyunchanged. On aggregate thisinfluenced net interest incomenegatively. However, total lendingand deposits rose by 7% and 5%,respectively, and contributed tonet interest income growth.

Both Nordic and international stockmarket indexes decreased in 2001.Commission income was reducedby 4% to EUR 1,397m (EUR1,454m), primarily as a result oflower capital markets and assetmanagement related commissions.

Commissions from paymentsshowed a positive developmentduring the year following anincrease in the number of transac-tions, particularly within e-banking.

Trading income amounted to EUR543m (EUR 415m), up 31% on 2000.Stable income at a high level wasexperienced, mainly comprisingincome from foreign exchange andderivatives trading with customers.

Insurance income totalled EUR524m (EUR 451m), which repre-sents an increase of 16% comparedto 2000. Premium income in GeneralInsurance increased, whereas thedevelopment was stable for tradi-tional products within Life andnegative for unit-linked products.General Insurance experienced highclaims during the year.

ExpensesExpenses increased by 17% to EUR3,889m (EUR 3,320m), but wereunchanged when adjusted foracquisitions. A moderate costdevelopment was achieved despitehigher business activity and sub-stantial activity related to integrat-ing the business of the Group. Total IT-related costs represented21% (20%) of total expenses.

The cost/income ratio (banking)was 58% (55%). The increase was aresult of considerably lower bankinginvestment income than in the pre-vious year. The cost/income ratio(banking), excluding investmentincome, representing the efficiencyof operations more correctly, was59% (61%) adjusted for acquisitions.

Loan lossesThe slowdown in the global andNordic economies resulted inincreased loan losses amounting to

EUR 373m (EUR 79m). Althoughconsiderably higher than last year’sunsustainably low level, loan losseswere still at a moderate level andbelow Nordea’s maximum targetlevel for average losses, 0.40% overa business cycle. Net losses corre-sponded to 0.29% (0.08%) of thetotal loan portfolio.

The loan losses experienced during2001 were related to a relativelylimited number of commitments.Acquisition finance was the maintroubled sector in 2001 and repre-sented approximately one third oftotal losses.

Investment earningsInvestment earnings were reducedto EUR 152m (EUR 573m), follow-ing the downturn in equities andfixed-income markets in 2001.

TaxesTaxes amounted to EUR 360m(EUR 691m). The relatively low taxrate of 18.7% was primarily attri-butable to a loss carry forward inthe former Merita Real Estate Ltdand in the parent company NordeaAB (publ), which could be utilisedafter positive tax rulings in combi-nation with the change of the legalstructure of the Group. It is expectedthat the tax charge for the Groupcould be reduced also in 2002 byan amount of approximately EUR100m.

Net profitFor the full year net profit amount-ed to EUR 1,568m (EUR 1,733m),corresponding to EUR 0.53 (EUR0.58) per share. Return on equitywas 13.8%, or 19.2% excludinggoodwill.

Nordea Group 2001 13

Key financial figuresNordea Group

Operational income statement Change

EURm 2001 2000 1,2 %

Net interest income 3,465 2,838 22Commission income 1,397 1,454 –4Trading 543 415 31 Income from insurance 524 451 16 Other 161 134 20

Income 6,090 5,292 15 Personnel expenses –2,188 –1,829 20 Other expenses –1,701 –1,491 14

Expenses –3,889 –3,320 17

Profit before loan losses 2,201 1,972 12

Loan losses –373 –79 372 Profit from companies accounted for under the equity method 95 62 53

Profit excl investment earnings 1,923 1,955 –2

Group Treasury 124 267Life insurance –7 61General insurance –13 81Other 48 164

Investment earnings 152 573

Goodwill depreciation –147 –93 58

Operating profit 1,928 2,435 –21

Loss on disposal of real estate holdings – –40Refund of surplus in pension fund – 32Taxes –360 –691Minority interests 0 –3

Net profit 1,568 1,733 –10

Ratios and key figures

Earnings per share, EUR 0.53 0.58Share price3, EUR 5.97 8.10Shareholders’ equity per share3, EUR 4.00 3.74Shares outstanding3 4, million 2,965 2,982Return on equity, % 13.8 16.1Return on equity excl goodwill5, % 19.2 19.4Lending3, EURbn 138 129Deposits3, EURbn 83 79Shareholders’ equity3, EURbn 12 11Total assets3, EURbn 242 224Assets under management3, EURbn 105 105Cost/income ratio, banking6, % 58 55Combined ratio, general insurance, % 106 110Tier 1 capital ratio3, % 7.3 6.8Total capital ratio3, % 9.1 9.4Risk-weighted assets3, EURbn 136 132

1 Incl Unidanmark Q1 pro forma.2 Profit 2000 excl Nordea Bank Norway (formerly Christiania Bank og Kreditkasse).3 End of period, incl Nordea Bank Norway from Q4 2000.4 Average number of shares Jan – Dec 2001 after full dilution was 2,990 million.

5 Excl goodwill depreciation and excl remaining goodwill, which has been deduc-ted from shareholders’ equity.

6 Before loan losses and goodwill depreciation.

Nordea's operations are organised andmanaged in four business areas: RetailBanking, Corporate and InstitutionalBanking, Asset Management & Life andGeneral Insurance.

The business areas operate in Nordea'smarkets, integrating the former country-organised bank and insurance operations

into one cross-border financial servicesgroup.

Decisions are made close to the cus-tomers and employees within Groupguidelines and limits. The customer unitorganisation is developed taking intoaccount local experience and market con-ditions.

Nordea Group 200114

Resultsby business area

Retail BankingCorporate and

Institutional BankingAsset

Management & Life General Insurance

Group Corporate Centre Group Staffs

Group CEO

Nordea Group 2001 15

Due to changes in the organisation and development of financial reporting for the merged operations, the quarterly results by business area have been restated.1 Business area reporting excludes Nordea Bank Norway (formerly CBK) in 2000.2 Income is reported as net of premiums, claims, benefits and provisions.

Results by business area 2001 EURm

Business areasCorporate and Asset Management & Life

Retail Institutional Asset General Group

Banking Banking Management Life2 Insurance2 Treasury Other TotalCustomer responsible units:Income 4,320 1,268 248 79 390 78 –293 6,090Expenses –2,444 –650 –158 –95 –395 –28 –119 –3,889Loan losses –168 –254 – – – – 49 –373Profit from companies

accounted for underthe equity method – 12 – – – – 83 95

Profit excluding investment earnings 1,708 376 90 –16 –5 50 –280 1,923

Investment earnings – – – –14 –13 124 55 152Goodwill – – – – – – –147 –147

Operating profit 1,708 376 90 –30 –18 174 –372 1,928of which:Q4 366 142 25 –6 1 38 –98 468Q3 425 –5 17 –24 –24 21 –182 228Q2 463 94 20 14 36 35 15 677Q1 454 145 28 –14 –31 80 –107 55520001 1,472 480 120 72 53 269 –31 2,435

Return on equity, % 21 11 – – – – – 13.8Cost/income ratio, % 57 51 64 – – 14 58Combined ratio, % – – – – 106 – – 106

Product responsible units:Income 528 136Expenses –283 –146Investment earnings – –7

Product result 245 –17

of which:Q4 55 4Q3 50 –49Q2 65 42Q1 75 –14

20001 306 73

Nordea runs the leading retail banking opera-tion in the Nordic region. Retail Banking has aunique customer base, comprising more than9.5 million personal customers, or about 40%of the population in the region, and 1.0 mil-lion corporate customers. The completion ofNordea’s acquisition of Postgirot Bank inDecember 2001 further strengthened the posi-tion in Sweden. Nordea also consolidated itsposition among the most widely used elec-tronic banks in the world. More than 2.8 mil-lion customers have subscribed to the e-bank-ing services. The business area Retail Bankingshowed in 2001 an operating profit of EUR1,700 m.

Nordea Group 200116

Retail Banking

Corporate and Institutional Banking

Nordea has a leading position in the Nordicregion as a provider of financial services tolarge corporates and financial institutions, andinternationally to shipping, offshore and oilservices companies. The business flow wasstrong in 2001, offsetting the negative impacton income from weak equity markets. The pan-Nordic focus has started to pay off in terms ofwider business mandates. Higher credit lossesthan in previous years resulted in a drop inoperating profit.

Retail Banking 2001 EURmFull year Q4 Q3 Q2 Q1

2001 2001 2001 2001 2001Operating profit 1,708 366 425 463 454Return on equity, % 21 18 22 24 25Cost/income ratio, % 57 58 57 56 56Customer base:

personal customers,million 9.51 8.9 8.9 8.9 8.9corporate customers,million 1.01 0.6 0.6 0.6 0.6

Number of employees (full-time equivalents) 22,700 22,700 22,700 22,600 22,600

1 Incl Postgirot Bank.

Corporate and Institutional Banking 2001 EURm

Full Year Q4 Q3 Q2 Q12001 2001 2001 2001 2001

Net interest income 466 116 110 118 122Other income 802 204 190 199 209Total income 1,268 320 300 317 331Total expenses –650 –171 –153 –167 –159Profit before loan

losses 618 149 147 150 172Loan losses –266 –28 –164 –50 –24Country risk 12 17 11 –10 –6Equity method 12 4 1 4 3Operating profit 376 142 –5 94 145

Return on equity, % 11 16 0 11 16Cost/income ratio, % 51 53 51 53 48Lending, EURbn 30.9 30.9 30.6 31.4 31.4Number of employees

(full-time equivalents) 3,700 3,700 3,700 3,900 3,800

Nordea Group 2001 17

Asset Management & LifeNordea is the leading Nordic asset manager andranks among the top 20 in Europe. During 2001,assets under management increased slightly despitedifficult market conditions. The competitive focusof Nordea in the wider long-term savings marketwas sharpened by combining Life Insurance andPensions with Asset Management to form a newbusiness area: Asset Management & Life.

Nordea is the second largest provider of generalinsurance in the Nordic region. A new ownershipstructure for General Insurance, in which Nordeais expected to become a minority shareholder, isbeing discussed. Nordea aims at reducing its ownership stake in General Insurance to a minorityposition and to establish a strategic partnershipwith a view to continuing the cooperation con-cerning bancassurance.

Key figures – Asset Management activities EURm

Full year Q4 Q3 Q2 Q12001 2001 2001 2001 2001

Revenues 528 133 117 133 145Expenses –223 –63 –52 –54 –54Distribution expenses in

Retail Banking –60 –15 –15 –14 –16

Product result 245 55 50 65 75

Operating profit, customer responsible units 90 25 17 20 28Investment funds margins, % 1.01 1.01 0.97 1.032 . .

Investment Managementmargins, % 0.21 0.22 0.18 0.212 . .

Assets under management, EURbn 1051 1051 87 101 97

Number of employees (full-time equivalents) 830 830 800 800 800

1 EUR 1.7bn refers to the inclusion of real estate investments in Life.2 Margins stated for the second quarter are accumulated Jan–June.

General Insurance 2001 EURm

Full year Q4 Q3 Q2 Q12001 2001 2001 2001 2001

Gross earned premiums 1,845 494 470 453 428

Technical result –5 –42 11 25 1Investment earnings –13 43 –35 11 –32Operating profit –18 1 –24 36 –31

Combined ratio, % 106 114 105 100 106Core operating ratio, %1 0 –10 3 7 0Operating ratio, %2 –1 0 –6 10 –9Return on equity, % –18 8 –18 26 –21Investment return, % pa3 4.7 2.9 –2.8 4.8 1.2Number of employees

(full-time equivalents) 4,290 4,294 4,280 4,220 4,210

1 Technical result/premiums for own account. 2 Operating profit/premiums for own account. 3

Before interest allocation to technical result.

General Insurance

Key figures – Life activities EURm

Full year Q4 Q3 Q2 Q12001 2001 2001 2001 2001

Premiums written, net of reinsurance 2,666 778 458 746 684

Technical result –10 –41 5 23 3Investment earnings on

shareholders’ equity –7 45 –54 19 –17

Product result –17 4 –49 42 –14of which customer

responsible units –30 –6 –24 14 –14

Technical provisions 20,534 20,534 19,120 20,027 19,122Bonus buffers 1,776 1,776 1,563 2,185 2,198Number of employees

(full-time equivalents) 802 802 827 835 856

Nordea Group 200118

Financial targets

Nordea aims at creating value for shareholders in the top five of the peer

group of European listed financial services companies.

Key performance indicator2001 2000 Target

Total shareholder return, % –19.8 46.5 In the top five of the definedpeer group

Dividend pay-out ratio, % 44 40 ≥ 40% of net profitReturn on equity, % 13.8 16.1 ≥ Euro risk-free rate of interest

+8 percentage pointsAssets under management, growth, % 0 18 20% p a growthCost/income ratio, banking, % 58 55 ≤ 50Combined ratio, general insurance, % 106 110 < 100Merger synergies, EURm 168 23 360Average loan losses, % 0.29 0.08 ≤ 0.40% of loans and guarantees

over a business cycle

Total shareholder returnNordea has selected a peer group of 20European financial services companiesand aims at creating value for share-holders in the top five of this peer group.Creation of shareholder value is mea-sured by total shareholder return andincludes investors’ capital gains andreinvested dividends. Nordea will pursuea policy of high dividends. The annuallevel depends on market return require-ments and the amount of capital neededfor development of activities. Dividendpayment will normally exceed 40% ofthe net profit for the year.

Earnings per share and return onequityGrowing earnings per share and highreturn on equity are important indicatorsof value creation. Net profit for the yearas a percentage of average equity shallexceed the euro risk-free rate of interestplus 8 percentage points.

Economic capitalCapital is allocated to the business areasreflecting the risks as well as economic

and strategic goals of the business. Totalcapital is not to exceed capital requiredfor a sound development of activities, anattractive rating and cost-efficient fund-ing. The economic capital for the Grouphas on a preliminary basis been calcu-lated at approximately EUR 11bn at theend of 2001.

CostsNordea believes that a competitive andcontinuous high level of profitability is aprerequisite for the success and thedevelopment of the Group.

The cost/income ratio in banking, beforeloan losses and goodwill depreciation, isnot to exceed 50%. The combined ratio ingeneral insurance is not to exceed 100%.

SynergiesThe MeritaNordbanken-Unidanmarkmerger and the acquisition of CBK willcreate annual synergies of EUR 360mwhen fully realised by the end of 2003.To ensure the further improved efficien-cy of the Group, a second wave of inte-gration process has been initiated.

Nordea Group 2001 19

Board of Directors

Bertel Finskas

Jørgen HøegPedersen

Timo Peltola Kaija Roukala-Hyvärinen

Auditors

Elected at the 1999 AnnualGeneral Meeting for a period of four years:

KPMG

Chief auditorCaj NackstadStockholm, born 1945.Authorized Public Accountant

Appointed by the FinancialSupervisory Authority:

Olle GunnarssonKungsbacka, born 1940.Authorized Public Accountant

Edward Andersson

Dan Andersson

Claus HøegMadsen

Lene Haulrik

Bernt Magnusson

Thorleif Krarup

Group Chief

Executive Officer

Hans Dalborg

Vice Chairman

Kjell Aamot

Harald Arnkværn Liv Haug

Group Executive Management

Markku PohjolaHead of Corporate andInstitutional Banking

Carl-Johan GranvikHead of Group Creditand Risk Control

Tom RuudHead of Group Staffs

Arne LiljedahlChief Financial OfficerHead of GroupCorporate Centre

Thorleif KrarupGroup CEO

Christian ClausenHead of AssetManagement & Life

Lars G NordströmHead of Retail Banking

Vesa Vainio

Chairman

The annual general meeting (AGM) ofNordea AB (publ) will be held on Wednesday 24 April 2002 at 3.00 pmSwedish time in Aula Magna, StockholmUniversity, Frescativägen 10, Stockholm, with the possibility to participate, viavideo simulcast, at 4.00 pm Finnish time in Finlandia Hall, Congress Wing, Mannerheimintie 13 e, Helsinki, and at 3.00 pm Danish time at the Scandic HotelCopenhagen, Vester Søgade 6, Copenhagen.

Common instructions to all shareholdersShareholders who wish to participate in the AGM shall be entered in the share register maintained by the Swedish Securities Register Center (VPC AB) not later than 12 April 2002 and notify Nordea AB (publ) of their participation.

Shareholders, whose shares are held in trust in Sweden, who are holders of Finnish Depositary Receipts in Finland orwho are holders of shares registered in Værdipapircentralen in Denmark, there-fore have to re-register temporarily their shares in their own names to be entitled to participate in the AGM.

Such re-registration shall be completed atVPC AB in Sweden by 12 April 2002. Thismeans that the shareholder shall, in goodtime prior to this date, inform the trusteeabout this.

At notification all shareholders are re-quested to state in which place participa-tion would take place. Shareholders, whohave their shares registered in more thanone country, should state this at the time ofnotification.

Shares registered in VPC AB in SwedenNotification of participation shall be made at the latest on 19 April 2002 at 1.00 pm toNordea AB (publ), Group Corporate LawH 50, SE-105 71 Stockholm, or by telephone

+46 8 614 97 10, or by fax +46 8 614 87 70, or on the Internet at www.nordea.com.

Finnish Depositary Receipts in FinlandRequest for re-registration of FinnishDepositary Receipts and notification of participation shall be made at the latest on11 April 2002 at 4.00 pm Finnish time toNordea Bank Finland Plc, 2590 Issue Services, Fin-00020 Nordea, or by telephone +358 9 165 51397 or +358 9 16551398 or by fax +358 9 637 256, or on theInternet at www.nordea.com.

Shareholders, whose shares are registered in their own names in VPC AB in Sweden,may also notify their participation in theAGM later, however not later than 19 April2002 at 2.00 pm Finnish time in the above-mentioned manner.

Shares registered in Værdipapir-centralen in DenmarkRequest for re-registration of shares reg-istered in Værdipapircentralen in Denmarkand notification of participation shall bemade at the latest on 11 April 2002 at 12.00Danish time to one of Nordea Bank Danmark’s branch offices, or to NordeaBank Danmark A/S, Direktionssekretaria-tet, Postboks 850, OK-0900 Copenhagen C,or on the Internet at www.nordea.com.

Shareholders, whose shares are registeredin their own name in VPC AB in Sweden,may also notify their participation in theAGM later, however not later than 19 April2002 at 1.00 pm Danish time in the above-mentioned manner.

Dividend and record dateThe Board of Directors proposes to the AGMthat a dividend of EUR 0.23 per shareshould be paid and that the record date fordividend should be 29 April 2002. Withthis record date, the dividend is expected tobe distributed by VPC AB on 7 May 2002.

Annual General Meeting

MSI 40395919