Date of Release: 2008-03-04

Nordea Group

Ratings (AA) Unaffected by 2007 Results

DBRS commented today that the ratings of the banks of the Nordea Group (Nordea or the Group) are unaffected following the release of the full year 2007 results on 12 February 2008. DBRS maintains an AA and R-1 (high) long-term and short-term ratings, respectively, on Nordea Bank AB, and its main operating banks (Nordea Bank Danmark A/S, Nordea Bank Finland Plc and Nordea Bank Norge ASA). The trend on all ratings is Stable.

Nordea delivered a solid result with full-year net profit of EUR 3.0 billion, up 3% from 2006, while total income increased by 7% to EUR 7.9 billion. DBRS views the solid result achieved in the current market environment as further evidence of the Nordea’s strong balance sheet and risk management function. Moreover, the 2007 result demonstrates the solid franchise, its overall earnings strength and its solid execution on its growth strategy.

Asset quality has remained strong in 2007. Net loan losses were positive at EUR 60 million, reflecting continued high recoveries of provisioning and a limited need for new provisions. Gross impaired loans to the public and credit institutions decreased to EUR 1.3 billion. DBRS views Nordea’s diversified loan portfolio and its superior risk management discipline as key positive factors underpinning the ratings. The Company has limited direct and indirect exposure to U.S. sub-prime mortgages and credit-linked structured investment vehicles.

Liquidity remained solid. The funding profile is anchored by a growing deposit book; deposits and borrowings from the public increased by 12% to EUR 142.3 billion. Moreover, DBRS views Nordea’s market funding base as well diversified by geography, debt instruments and investor base. Loans and receivables to the public increased to EUR 244.7, up 14% from 31 December 2006. Capitalisation remained solid. Nordea’s total risk weighted amounts (RWA) as of end December amounted to EUR 205 billion, affected by the existing transition rules. Excluding transition rules, RWA would have amounted to EUR 171 billion. Credit exposure totalled EUR 429 billion, including off-balance sheet exposure. At the end of 2007, Nordea’s tier 1 capital ratio was 7.0% and total capital ratio was 9.1%, both within the target levels set by the Bank.

DBRS maintains an AA and R-1 (high) on the long-term and short-term ratings, respectively on Nordea Bank AB and its main affiliates: Nordea Bank Finland Plc, Nordea Bank Norge ASA and Nordea Bank Danmark A/S. The Trend on all ratings is stable. The ratings are underpinned by the solid credit fundamentals of the entire Nordea Group.

The ratings reflects Nordea’s good, geographically diversified franchise in the Nordic region, prudent exposure into high-growth countries and good quality of its earnings. DBRS ratings also take into account the Bank’s uncertainty regarding the ownership structure following any sale of the Swedish government stake and exposure to less-mature Baltic regions, as well as Poland and Russia.

With its well-established and diversified franchise across the Nordic Region, Nordea has a strong presence in Sweden, Finland, Denmark and Norway. It provides universal banking services in these markets, with a main focus on retail banking that is complimented by corporate, investment banking, asset management and insurance businesses. At 31 December, 2007, the Company reported total assets of EUR 389 billion.

Note:
All figures are in Euros unless otherwise noted.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.