===== SIDA 1 ===== Nordea Annual Report 2025 1 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Annual Report 2025 ===== SIDA 2 ===== Nordea Annual Report 2025 1 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements OtherMain table of contents T able of Contents Introduction Who we are ...........................................................................................2 CEO letter................................................................................................3 Nordea as an investment .............................................................5 Strategic report Business environment ....................................................................7 Strategic priorities ..........................................................................10 Sustainability at the core ...........................................................16 Our stakeholders Introduction ........................................................................................20 Customers.............................................................................................21 Employees ...........................................................................................23 Shareholders ......................................................................................24 Society ...................................................................................................25 Business areas Introduction ........................................................................................27 Personal Banking ...........................................................................28 Asset & Wealth Management ................................................30 Business Banking ...........................................................................32 Large Corporates & Institutions ............................................34 CEO letter PAGE 3 Strategic priorities PAGE 10 Board of Directors’ report PAGE 37 Sustainability Statement PAGE 81 Financial statements PAGE 194 This Annual Report contains forward-looking statements that reflect manage - ment’s current views with respect to certain future events and potential financial performance. Although Nordea believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Results could differ materially from those set out in the forward-looking statements due to various factors. These include but are not limited to (i) macroeconomic developments, (ii) changes in the competitive environment, (iii) changes in the regulatory environment and other government actions, and (iv) changes in interest rates and foreign exchange rates. This Report does not imply that Nordea has undertaken to revise these for - ward-looking statements beyond what is required by applicable law or stock exchange regulations if and when circumstances arise that lead to changes follow- ing their publication. Nordea has reported on environmental and sustainability performance on an annual basis since 2002. Nordea’s sustainability reporting for 2025 constitutes sus - tainability disclosures found in (i) the Sustainability at the core chapter on pages 16–18, (ii) the Sustainability Statement (including our EU Taxonomy reporting) on pages 81–190, (iii) the Corporate Governance Statement on pages 58–62, and (iv) Note G11 “Risk and liquidity management” on pages 276–306. ===== SIDA 3 ===== Nordea Annual Report 2025 2 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other WHO WE ARE Always moving forward We are the leading financial services group in the Nordics and the preferred choice for millions across the region. For 200 years, we have proudly served as a trusted financial partner for individuals, families and businesses. We draw on our strength and experience to help our customers realise their dreams and aspirations. Our values are deeply rooted in the open, progressive and collaborative Nordic societies. Nordea is a place where people are passionate about customers, work together to make the most of their diverse expertise, feel a true sense of ownership and have the courage to do what is right. Guided by these values, we serve a broad range of customers across Denmark, Finland, Norway and Sweden – from private households, family offices and small businesses to many of the largest institutions and enterprises in the Nordics. We have a strong market position in our four home markets and four business areas: Personal Banking, Asset & Wealth Management, Business Banking and Large Corporates & Institutions. Each business area offers a wide range of services, covering everything from day-to-day banking to complex financial needs. Our approach combines great digital experiences with the support of trusted advisers, ensuring customers feel con- fident and well cared for however they choose to interact with us. Our name – Nordea – encapsulates the Nordic idea of constantly developing, of making every day a little better. We aim to keep building strength and supporting the resilience of our customers, shareholders and the wider region, now and for generations to come. We strive to be personal, expert and responsible We believe in being personal. We listen to our customers and invest time in building strong relation - ships with them, getting to know their individual needs and dreams. We are here for them – easy to reach and easy to deal with. We take pride in being expert and thinking ahead. We share our insights and use our expertise to meet our customers’ financial needs, from the simplest to the most complex. We are responsible and always mindful of the impact of our decisions on our customers and wider society. We draw on our strength and scale to provide the best solutions for individuals, businesses and society as a whole. Our purpose is to enable dreams and aspirations for a greater good ===== SIDA 4 ===== Nordea Annual Report 2025 3 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other CEO LETTER Dear stakeholder, Nordea delivered strong results in 2025. Our performance reflects the momentum we have built since we set out to reshape the business in 2019. By many measures, we are stronger now than we have ever been. As we move forward into our new strategy period, our ambition is clear: to be the best-performing financial services group in the Nordics. “We are beginning our new strategy period from a position of strength and with high ambitions. ” 2025 was marked by considerable global uncertainty. Geopolitical tensions remained high, and Russia’s ongoing war in Ukraine kept security firmly in focus in Europe and the Nordic countries. At the same time, shifting trade policies added to an unsettled environment. The global economy has proven to be stronger than many expected. But entering 2026, there are clear risks to growth. In these times, resilience is a critical asset. The Nordic countries’ advantage is rooted in strong economies and fiscal positions, political stability, and – crucially – an ability to adapt to change. Their long his- tory as trading nations has also shaped how the region’s businesses, thousands of which are our customers, com- pete internationally. Nordic companies distinguish them- selves by their quality, innovation, deep tech and engi- neering know-how, and agility. That formula has enabled them to establish competitive positions in global markets – positions that are durable over time. For all these reasons, even while risks to the global outlook remain and impacts are difficult to assess, I am confident that our region is well positioned to continue to perform strongly. Nordea has called the Nordic countries home for gen - erations. Supporting our customers and our region through good and challenging times is part of who we are. We are well equipped to fulfil this responsibility – with advice, capital, a broad range of financial services and a strong balance sheet. Our diversification is a key strength, with income, lending and profits well bal - anced across sectors and across our four home markets. 2025 again showed the value of this diversified model. We performed well, achieving high profitability and driving higher customer activity and business volumes despite consumer confidence across our home markets remaining understandably muted. Housing markets were slow but showed signs of gradual improvement during the year. In this environment, we increased mortgage lending by 1% year on year. Households’ main focus was on strengthening their financial positions, with many customers increasing their recurring savings amounts and many putting more money into investment funds. That helped drive net flows of EUR 15.7bn and lift our assets under management by 13% year on year, to a record high of EUR 478bn. Corporates increased their activity. The more stable inflation and interest rate environment has clearly helped businesses plan with greater confidence. As a result, we grew corporate lending by 8% year on year and corporate deposits increased by 1%. ===== SIDA 5 ===== Nordea Annual Report 2025 4 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Total income for the year was EUR 11.7bn, holding up well in the lower rate environment. Profitability was high, with operating profit reaching EUR 6.3bn and return on equity 15.5%. This makes 2025 the third year in a row that we exceeded 15%, underlining our position as a strong and resilient financial services group. The strongest Nordea yet 2025 marked the conclusion of a significant chapter in our development. Since we began our repositioning in the autumn of 2019, we have worked steadily to strengthen our performance and competitiveness. We now have two successful strategy periods behind us: in the second, we again met or exceeded all targets. Most importantly, we put customers at the centre and focused relentlessly on serving them better. That work is paying off: we have grown our business with both existing and new customers. I was pleased to see us end 2025 on a high note for customer satisfaction. Our scores are now 4–10 index points higher across all four business areas than in 2019, and our performance relative to peers has improved. Our digital services are now recognised as being among the best in Europe. Moreover, we have strengthened through significant strategic investments in technology and risk management that reinforce our position as a safe and trusted financial partner. Growth has been particularly notable in Sweden and Norway, where we have less mature market positions than in Denmark and Finland. In Sweden, targeted initiatives helped us reclaim a leading position in one of Europe’s most competitive markets, including through further mortgage market share gains in 2025. In Norway, we complemented organic growth with bolt -on acquisitions. Across the Nordics, we have also grown in savings and investments, life and pensions, private banking and corporate banking. The progress in recent years is visible in our financial performance. • We are more efficient: Back in 2019, we spent 57 cents to generate a euro of income; now, it takes 45 cents. This improvement has come even with a significant step-up in strategic investments. • We are more profitable: In 2019 we ranked near the bottom of the world’s 100 largest banks based on return on equity; today, we are in the top 20 and among the best in Europe. • We are maintaining strong capital generation: We ended 2025 with a CET1 ratio of 15.7%, 1.9 percentage points above the current regulatory requirement. • We are creating value for shareholders: Total shareholder return over the period 2019–25 amounts to 322%, or 26% per annum. We have now returned a total of EUR 21.7bn of capital to our shareholders through dividends and share buy-backs. As one of the most broadly owned companies in the Nordics, with more than 590,000 shareholders across the region, it is important to us that we deliver strong and reliable returns. These support the financial well-being of Nordic households and long-term savers, and, together with our substantial tax contributions, help drive the eco- nomic development and resilience of the Nordic societies. Given our strong 2025 performance, our Board of Directors will propose to shareholders at the 2026 Annual General Meeting a dividend of EUR 0.96 per share for 2025, up from EUR 0.94 per share for 2024. Additionally, the Board will propose the distribution of a mid-year dividend in 2026, corresponding to approximately 50% of the net profit for the first half of 2026. All in all, we can look back on a strong 2025 for Nordea. Our progress reflects the hard work of our employees, the trust of our customers, and the support of our share- holders. I am grateful to all our stakeholders for the con- fidence they have shown – and continue to show – in us. Taking it to the next level We are beginning our new strategy period – our third – from a position of strength and with high ambitions. Looking across to 2030, our priorities are clear: grow in several attractive areas and drive faster-than-market income growth; further strengthen our customer offering; and unlock the full potential of our unique Nordic scale. Our Nordic scale remains our most important competitive advantage. While we have already realised many scale benefits, significant gains still lie ahead. In this next phase, we will take a decisive step to harmonise more of our operations across the region. Technology – and especially AI – will be central to this work. It will enable us to replace local processes with Nordic ones, strengthen our competitiveness, and deliver better customer experiences, faster and at lower cost. Acting as a positive force includes supporting the transition to a more resilient society. Sustainability is important to us, our customers and the societies we serve. That is why we view it as both a core part of our purpose and, increasingly, a competitive advantage. Building on the good work of recent years, we will maintain our strong commitment to supporting customers in their transitions to net zero. In our new strategy period, we are targeting a return on equity of greater than 15% each year through to 2030, and significantly higher in 2030 itself. We are also targeting a cost-to-income ratio excluding regulatory fees of 40–42% in 2030. We are at 45% today, and com - ing down to our target level will be a gradual process. Accordingly, we expect to deliver a return on equity of greater than 15% for the full year 2026, and expect our cost-to-income ratio excluding regulatory fees to be around 45%. Rest assured that we will carry our plan forward with the same dedication, discipline and focus that have guided us through our past two strategy periods. When we make a commitment, we stand by it. Our ambition is to become the undisputed best-performing financial services group in the Nordics. Frank Vang-Jensen President and Group CEO CEO LETTER ===== SIDA 6 ===== Nordea Annual Report 2025 5 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other NORDEA AS AN INVESTMENT Why own Nordea We are in a strong position today, having delivered on virtually all tar- gets in our last two strategy periods through a relentless focus on growth in prioritised areas, operating performance, and structural improvements. In six years, Nordea has gone from underperformer to market leader in terms of RoE and EPS growth. Supported by our diversification, we also offer what few peers can match: leading returns with low volatility. We will build on this foundation. Our plan is to grow faster than the mar- ket, drive structural efficiency through our unique Nordic scale, and deliver superior EPS growth with sustainable, market-leading profitability. Ian Smith, CFO Profitable growth and high-quality earnings We are the largest financial services group in the Nordics – a region known for its stability, innovation and robust economic performance. • Pan-Nordic business model: providing stable, consistent and high-quality earnings growth • Strong profitability: operational efficiency; low risk and high RoE Our growth 202520242023202220212020 Income Costs Operating profit +113% Resilient earnings with low volatility 0 20 40 60 80 100 120 2025202420232022202120202019 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2025202420232022202120202019 Operating profit, EURm Quarterly volatility 1 , % EURm% 1) Calculated as the standard deviation of the quarterly operating profit per year divided by the average quarterly profit for that year. RoE 15.5% C/I 45.0%1 1) Excluding regulatory fees. Capital excellence and strong balance sheet • Strong capital generation: high profitability and efficient capital management • Market-leading credit ratings: recognised for financial stability • Low funding costs: among the best in the market Sustained high RoE, robust capital generation, efficient capital distribution 0 10 20 30 40 50 202520242023202220212020 0 4 8 12 16 20 EURbn % Acc. dividend RoE Acc. share buy-backs Base equity 9% CAGR Best-in-class wholesale funding costs European peers 3 Nordea peers 2 Nordea bp 1 50 53 65 AA credit rating 1) 5y senior preferred new issue spread. 2) Handelsbanken, SEB, Swedbank, Danske Bank, DNB. 3) Selection of 11 European banks, representing broad European banking financing conditions. ===== SIDA 7 ===== Nordea Annual Report 2025 6 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other NORDEA AS AN INVESTMENT Strong credit quality and low loan losses We have a prudent risk profile, with diversified exposure. • One of Europe’s most diversified loan portfolios: spread across households and corporates, with no significant sector concentration • Low loan losses: strong credit quality, with low risk Loan loss ratio including similar net result (basis points) 0 5 10 15 20 25 30 202520242023120221202112020120191201820172016201520142013 bp 1415 21 15 87 8 122 26 12 14 1 1 1 5 6 1) Including fair value adjustments to loans held at fair value in Nordea Kredit. 2019 and 2022 also exclude items affecting comparability. See pages 41–42 for further details. 2) COVID-19 management judgement buffer. Well-diversified credit portfolio Finland, 20% Sweden, 34%Denmark, 23% Norway, 23% Digital services: a global leader We are globally recognised for digital services and engagement that support great customer experiences. • Top rankings for digitalisation: ranked among the top three banks for digitalisation globally and top performer in Europe • Best private mobile bank in the Nordics according to App Store Market-leading shareholder returns Since 2019, we have made structural changes to enhance our profitability and capital generation. • Strong total shareholder returns, positioning Nordea as a leader • Highest dividend payout ratio among peers • Share buy-backs deployed for capital efficiency, optimising our overall level of capitalisation Total shareholder returns (indexed) SEK 60 130 200 270 340 410 480 2019-09 Nordea, 321.9% Peer 3, 173.7%Peer 1, 371.2% Peer 4, 275.6%Peer 2, 227.2% Peer 5, 149.4% 2020 2021 2022 2023 2024 2025 Sustainability: an integral part of our business strategy We are actively engaging to drive the sustaina- bility transition, with strong progress towards our strategic targets: • 44% reduction in financed emissions in our lending portfolio as at end-2025 (2030 target: reduction of 40–50% compared with 2019) • Sustainable financing target exceeded: EUR 235bn facilitated as at end-2025 (2022– 25 target: EUR >200bn) ===== SIDA 8 ===== Nordea Annual Report 2025 7 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other BUSINESS ENVIRONMENT Nordic strength in a changing world The Nordics offer a unique foundation for success, in both good and challenging times. Strong economies, resilient societies and a culture of trust and innovation create an environment where growth and stability go hand in hand. These qualities make the region’s financial markets some of the most attractive in Europe. The Nordic countries provide a solid foundation for Nordea’s growth. They are among the most open and resilient economies in the world, and consistently rank among the highest for per capita GDP. Their economic strength is underpinned by high levels of trust, a culture of learning and entrepreneurship, and strong social safety nets. Together, these factors create lasting political and economic stability, and enable the region to handle global shocks better than many others. Innovation runs deep in the Nordic countries. They are highly digital societies and quick to adopt new technol - ogies. The region’s largest firms – many of them Nordea customers – compete on quality and innovation rather than size alone. This approach has proven successful: over the past two decades, Nordic companies have out - performed their peers in the US, Europe and Asia in terms of total shareholder return. The region’s secure and steady business environment is further supported by a reliable, profitable and stable banking sector. Nordic financial institutions are well capitalised, have a long history of prudent risk manage - ment, and have been quick to embrace digital innova- tion and climate action compared with many other parts of the world. At Nordea, we derive strength from our pan-Nordic business model and very well diversified lending port - folio, characteristics which have contributed to us becoming one of Europe’s financial industry leaders. Resilient amid global uncertainty In 2025 the Nordic economies, like many others, contin - ued to face headwinds from global uncertainty. Inflation and interest rates stabilised at lower levels, helping con - sumers regain purchasing power, but the anticipated recovery in economic activity was slower than expected, held back by persistent geopolitical tensions and trade disruptions. Despite continued international efforts to end the conflict, Russia’s full-scale war in Ukraine showed few signs of resolution, keeping security and energy high on the agenda in Europe. Meanwhile, rising trade barriers added to the uncertainty as US tariffs on trading part - ners increased significantly. Despite being export dependent, the Nordic economies have experienced only a limited impact, with businesses adjusting well to the changes. Looking ahead, while sentiment remains cautious, the fundamentals of the Nordic economies are solid. If infla - tion stays contained and interest rates hold steady, all four of our home markets can expect to post robust economic growth in 2026 and 2027, supported by stronger household consumption. This could also help strengthen labour markets in Finland and Sweden, where unemployment remains relatively high. Still, the outlook hinges on global developments. Geopolitical tensions, trade policy and developments in major economies will continue to shape the pace and strength of the Nordic rebound. GDP per capita At purchasing power parity, constant prices, USD thousands 0 20 40 60 80 100 Norway Denmark Sweden Finland EU average 2015 48 56 53 57 59 63 63 73 85 92 2025 Source: IMF. ===== SIDA 9 ===== Nordea Annual Report 2025 8 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other BUSINESS ENVIRONMENT Key trends shaping the financial industry New economic reality Global uncertainty, new technologies and rising cus- tomer expectations are reshaping what people look for in a financial partner. In a more uncertain macro - economic and geopolitical environment, trust becomes more important. Households and corporates seek financial services providers that are resilient, well capitalised and able to navigate changing conditions with confidence. After several years of elevated inflation and an exceptional interest rate environment, conditions in the Nordic economies stabilised during 2025. Inflation in the Nordic countries remained broadly stable and close to the 2% mark, allowing central banks in the region to continue lowering interest rates. By the end of the year, most appeared to have completed their rate-cutting cycles. Policy paths now look steady, with rates normalising at around 2% – with the exception of Norway, where they are close to 4%. Public finances, however, remain under strain on both sides of the Atlantic. In the US, the budget defi - cit has widened significantly since the pandemic, with debt levels rising rapidly – a trend unlikely to reverse without major policy changes. In Europe, higher defence spending and green transition investments are adding further pressure. As a result, long-term interest rates are expected to stay elevated or even climb, despite inflation being largely under control. In this environment, financial strength matters. In recent years, we have invested to build a safer and more resilient business, with a well-balanced income mix across our home markets. We continue to adjust our pricing and product mix in response to the rate environment, and use hedging to help manage interest rate risk and mitigate the impact of fluctuating interest rates on our financial performance. Evolving regulation Over the past two decades, the regulatory environment for financial services providers in Europe has evolved significantly in key areas such as capital requirements, digital technology and sustainability. As regulation continues to develop, scale and strong gov- ernance have become increasingly important for meeting expectations consistently and efficiently. Financial services providers like Nordea must comply with a range of capital and prudential requirements designed to ensure financial stability and resilience. These include the Basel IV regulation and additional national supervisory requirements. At the same time, credit risk modelling has grown more complex, requiring advanced data, systems and processes. Digital regulation has also continued to develop. Stricter privacy laws, increasing cybersecurity demands and new frameworks such as the Digital Operational Resilience Act require financial institutions to strengthen operational resil - ience and ensure the continuity of critical services. Sustainability regulation is another area of ongo - ing change. European rules on sustainability disclo - sures and reporting are raising expectations regard - ing transparency and the integration of climate considerations into credit and investment decisions. As the largest financial services provider in the Nordics, we have the scale and capabilities needed to navigate this evolving regulatory landscape effectively – in all the markets we operate in. Scale and technological advantage Scale is becoming an increasingly important strength, supporting efficiency, stability and better outcomes for customers. Modern platforms and shared solutions allow large institutions to serve customers more relia- bly at lower cost. As digital capabilities advance, scale and technology reinforce each other, enabling better use of data, more automation and stronger resilience. Artificial intelligence (AI) is accelerating this shift. When used responsibly, AI can improve productivity, enhance service quality and support more personalised experiences. Trust remains central, and transparency in how these technologies are applied will be key to ensuring customers feel confident and well cared for. ===== SIDA 10 ===== Nordea Annual Report 2025 9 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other BUSINESS ENVIRONMENT Evolving customer expectations Customer expectations continue to rise as digital services become ever more integrated into everyday life. People expect financial services that are intuitive and tailored to their needs, while still valuing expert advice when important decisions come up. The institutions that succeed will be those that can seamlessly integrate strong digital services and trusted advisory capabilities. Customers are also looking for simplicity, with more services available in one place, and greater clarity over their financial situation. We continue to invest in digital development and advisory capabilities, supporting customers across banking, savings, investments and advice, and helping to reduce complexity in their finan- cial lives. Competitive landscape Competition in financial services contin - ues to intensify. New entrants, particularly specialist and platform-based providers, are focusing on payments, savings and investments, with easy-to-use offerings. In the corporate market, private credit providers are also gaining ground by offering alternative financing options outside traditional banking channels. These developments are reshaping the com - petitive landscape and increasing pressure on established institutions to strengthen digital and advisory services and customer experience. All this has been taken into account in our strategic plan. Our ambition is to continue to lead, using our broad portfolio, leadership in dig - ital services, strong technology position and the full potential of our Nordic scale to drive competitive advantage. Cyber threats Cyber threats affecting businesses and their custom - ers have risen steadily over the years, with attacks becoming more sophisticated and frequent. This trend is also evident in the Nordic countries. Common risks include distributed denial -of-se rvice attacks, which flood digital services with fake traffic to slow them down. Being a safe and trusted partner is a top priority for Nordea. We continually invest in new cybersecurity frameworks, train staff, guide customers on how to stay safe, and work to strengthen the maturity of our cyber defences. Ageing population The Nordic societies are ageing, and the share of people above 65 will continue to rise in the years ahead. This is increasing long- term demand for wealth services such as financial planning, savings, life insurance and pensions. As the largest asset manager in the Nordic region and one of the largest in Europe, we are well equipped to support customers as their lives and financial needs evolve. Climate change People and businesses are seeking sus- tainable and resilient solutions amid more frequent extreme weather events, rising eco - nomic costs, and geopolitical turbulence. In response, financial institutions have strengthened their focus on managing climate risks and supporting the energy transition. Two developments stood out in 2025: (i) the EU introduced new sustainability regulation to ease the reporting burden on businesses and increase competitiveness, and (ii) political shifts widened the gulf in climate policy between the US and Europe, adding complexity for international financial institutions. Despite the uncertainty, the Nordic societies remain committed to climate action, and the energy transition continues to advance in our four home markets, driven by technology and economic considerations. However, in several sectors the transition to net zero is not happening as quickly as in previous years. For the financial sector, geopolitical turbu - lence has led to a reorientation of priorities and alliances globally, alongside more focused efforts to navigate climate risks and opportuni - ties. Physical climate risk management and adaptation remain critically important as global emissions continue to rise. Our climate actions and targets remain in place, and we continue to progress towards our goals. ===== SIDA 11 ===== Nordea Annual Report 2025 10 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other STRATEGIC PRIORITIES The leading Nordic financial services group We have concluded our 2022–25 strategy period as a stronger and more resilient financial services group. Customer experience has improved, the business has grown, and we have achieved consistently strong results – delivering on our 2025 financial target. Our plan for the coming strategy period builds on this foundation and sets us up well to acceler‑ ate growth across our business. “ Following successive years of strong p erformance, we are well positioned to raise our ambition for profitable growth.” We are the leading financial services group in the Nordics, with a 200-year history of supporting the region’s economies. As the only truly pan-Nordic finan - cial services provider, we combine scale with deep local expertise to serve millions of households and businesses through all stages of life and every business cycle. Our strength lies in our relationships – which are built on trust, insight and long-term commitment, enabling us to support our customers in addressing opportunities and challenges alike. Guided by this approach, our vision is to be the best-performing financial services group in the Nordics – accelerating through our scale, people and technology. A transformed performance Six years ago, we set out to change Nordea’s direction and significantly improve performance. In our first strat- egy period (2019–22), we focused on fixing the basics, putting customers first, and strengthening competitive- ness. By 2022, the turnaround was clear: the strategy was working. In our second strategy period (2022–25), we raised the bar further, aiming to deliver best-in-class omnichannel customer experiences, profitable growth, greater operational and capital efficiency, and enhanced value creation for shareholders. We have delivered strongly on these ambitions. The past six years have seen us create significant shareholder value: total shareholder return amounts to 322% or 26% per annum. Today, Nordea is one of Europe’s best-performing financial services groups. For us, everything starts with our customers and we have made good progress in improving their experience. A key driver has been our significant investment in and development of our digital services. The enhancements we have made – including expanded services and ===== SIDA 12 ===== Nordea Annual Report 2025 11 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other STRATEGIC PRIORITIES functionalities in our digital channels – have created a better experience and give customers far greater con - trol over their finances. Growth has followed: digitally active customers have increased by more than 25% over the past four years. Today, we are seen as the leading provider of digital financial services in the Nordics, and one of the best in Europe. In our most recent strategy period we strengthened our position across our four business areas and four home markets: Denmark, Finland, Norway and Sweden. In Sweden, in particular, we made great strides, signifi - cantly growing our mortgage market share and earning the 2024 Bank of the Year title from Privata Affärer, a leading Swedish personal finance publication. Carefully chosen bolt-on acquisitions, together with solid organic growth, further strengthened our position. In Norway, our 2024 acquisition of Danske Bank’s Norwegian personal customer and private banking business led to us securing a significantly stronger position in the market. Other parts of the business also saw good growth, including Life & Pension, Private Banking and Business Banking, where we continue to use our size and scale to position Nordea as the best financial partner. Today, we are not only the Nordics’ largest business lender but also the leading arranger of corporate bonds and a recog- nised leader in sustainable finance. In 2025 we improved our score in the annual Prospera survey among large corporates in the Nordics, moving from third to second place overall, supported by higher client satisfaction scores in all our home markets. In Norway, we achieved our highest-ever score and claimed the top spot. We also came first in Sweden in Prospera’s rankings for both small and medium-sized corporates. In the mid-corporate segment, this marked a major improve- ment on the fifth-place position we occupied in 2020. To support operational efficiency and resilience, we invested significantly in technology and risk manage- ment, implementing structural improvements that reshaped the business to deliver sustainably higher prof- itability. This was demonstrated once again in our 2025 results: return on equity exceeded 15% for the third con- secutive year, reinforcing our position as one of the most profitable financial services groups in Europe and setting the stage for continued success. Personal Banking, 40% Business Banking, 28% Large Corporates & Institutions, 20% Asset & Wealth Management, 11% Group functions, 1% By business area By geography Finland, 22% Sweden, 29%Denmark, 26% Norway, 19% Other, 3% Diversified across business areas and geographies Operating income for 2025 Higher ambition Our ambition for our next strategy period (2026–30) is high and is reflected in our two financial targets. We are looking ahead to 2030: a long-term horizon that aligns with our commitment to value creation and sustainable progress over time. Our first target is to deliver a return on equity of greater than 15% each year through to 2030, and signifi - cantly higher in 2030. The second is to deliver a cost-to- income ratio of 40–42% in 2030. We also have the ambition to deliver earnings per share of around EUR 2.0 by 2030, driven by a strong improvement in underlying performance and based on market growth assumptions. These ambitious targets are backed by a clear strate - gic plan built around three priorities: • Growth: grow faster than the market while sustaining high profitability • Offering: lead with a compelling customer offering and the best digital experience • Scale: deliver Nordic scale benefits for superior com - petitiveness and efficiency. Across our three priorities, technology, data and artifi - cial intelligence (AI) will play a critical role – supporting better customer experiences, growth and efficiency. In the new strategy period, we will maintain our strong commitment to sustainability. We have made good progress in this area and sustainability is now fully embedded in our strategy, processes and operations. We are committed to supporting our customers’ transitions to net zero with our leading portfolio of ESG services and solutions. Our key near-, medium- and long-term sustainability targets are outlined on pages 124–130. Growth Following successive years of strong performance, we are well positioned to raise our ambition for profitable growth. We will target profitable growth in each of our businesses. Special focus will be applied to six areas with particu- larly high potential for Nordea. Two are dedicated to driv- ing growth in Norway and Sweden, geographic markets where we see ample room to grow, building on strong business momentum. In both countries, we have not yet reached the scale and position we aspire to. Our market shares in these countries are lower than in Denmark and Finland, where we occupy more mature positions. We will also target growth in four attractive areas that apply across all our home markets: cross -sal es, to deepen relationships and engagement with our broad base of existing customers; private banking and life and pensions – segments that have a strong growth outlook; and small businesses, a profitable segment where we seek to gain market share. Norway In Norway, we have strengthened our position in recent years both organically and through two bolt-on acquisi- tions. These have given us a solid platform to accelerate growth and move us closer to our long-term goal, which is to build a position and lift profitability in Norway to a level that is comparable to our other three home markets. Our focus will be on broadening and deepening rela- tionships with our new and existing customers so they choose us for all their financial needs. This means an increased focus on the advisory business, including the broad area of long-term savings. We have also increased our ambitions regarding small and medi - um-sized enterprises (SMEs). Sweden Sweden – the largest Nordic market by population – likewise offers us substantial growth potential, with Nordea continuing to grow faster than the market in core areas such as mortgages and pensions. Our leading digital and advisory capabilities give us a solid platform ===== SIDA 13 ===== Nordea Annual Report 2025 12 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other STRATEGIC PRIORITIES to deepen customer relationships and capture further market share, particularly by attracting more savers and strengthening our premium offering. Among corporates, we aim to build on our strong track record by capturing additional market share. We see significant opportunities in underpenetrated areas and segments where we have a structural advantage, such as cross-Nordic SMEs. To grow in large corporates, we will focus on deepening client relationships and expanding our presence in key sectors such as real estate, infrastructure and event-driven transactions. Cross-sales We aim to show customers the benefits of bringing more of their financial needs to us, strengthening the relationship in a way that advantages them and creates value for Nordea. Cross-sales – offering additional rele - vant products to customers we already serve – will be central to this, and will contribute to higher net fee and commission income. Our anchor products in mortgages, savings and investments for households and in cash management for corporates are the everyday services customers depend on. By offering an outstanding experience in these areas, we can strengthen our role as their pre- ferred financial partner and create natural opportunities to deepen the relationship. Life & Pension The life and pensions market offers strong long-t erm potential due to people living longer and growing uncer- tainty about what public pension systems will provide. We have not yet reached the market position we aspire to, and our ambition is therefore to strengthen our rela- tive position across the Nordic markets. Customers are increasingly seeking guidance and solutions they can trust, and our recent momentum – supported by bolt-o n acquisitions and rapid improvements in our digital offer- ing – puts us in a strong position to meet this need. Building on our leadership position, we see clear oppor- tunities to deepen relationships with both private cus- tomers and SMEs. Private banking Financial decisions can be highly complex, and customers increasingly want to have clarity and confidence in managing their wealth. To meet this demand, we will continue to strengthen our private banking offering, focusing on combining expert advice with great digital services and our globally competitive asset management capabilities. Accordingly, we are increasing our digital investments, strengthening our offering for self-directed investors, and expanding our private banking advisory team. In 2025 we improved our relative position in the market; our planned investments are aimed at ensuring this development continues. Small businesses Small businesses are at the heart of the Nordic econ - omy and represent a major opportunity for Nordea. They are a large and profitable market, where we still have below our natural share. Small businesses typically hold high deposit balances and bring attractive ancillary opportunities. As digitalisation reshapes how small companies man- age their finances, our industry expertise and scale give us a clear advantage. We have proven our ability to deliver for medium-s ized corporates and retail customers, and are ready to extend that success to small businesses. We see the potential to welcome around 50,000 new cus- tomers and deepen our role as a trusted partner for thou- sands of entrepreneurs across the Nordics. Offering We grow by creating outstanding experiences for our customers. Building on the progress of recent years, we will continue to strengthen our offering by providing a full scope of products, capabilities and expertise for both households and corporates. This reflects a deliberate strategic choice: a universal model enables us to serve customers more holistically, deepen relationships and capture a larger share of their financial activity. Our focus will be on making every interaction with our customers more personal – supported by tailored insights, relevant suggestions and offers that reflect their needs. At the same time, our strong local presence and trusted advice across every Nordic market will remain central to how we build long-t erm loyalty and create meaningful engagement. For corporate clients, our focus is to reinforce Nordea as a full-s ervice partner at every stage of the business ===== SIDA 14 ===== Nordea Annual Report 2025 13 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other STRATEGIC PRIORITIES journey. Cash management will remain an anchor product in our portfolio and a driver of deeper relationships with small, medium-sized and large corporates. Another key focus will be reducing the burden of financial administration for small businesses, enabling entrepreneurs to concentrate on running their companies. Scale Our Nordic scale is a unique and powerful source of competitive advantage. It was the driving force behind our creation around 25 years ago, when four banks in Denmark, Finland, Norway and Sweden united around a simple idea: that a single Nordic entity could create more value for customers, shareholders and the region than any one institution alone. Over time, we have brought our Nordic scale to life in several ways. One of the most important is the diversification of our business. Our operating income and credit portfolio are well spread across countries and sectors, reducing our risk and strengthening our resilience. We have also built scale in our core banking opera - tions and created a pan-Nordic digital front end, both of which are enabling efficiency and consistency across markets. In addition, we have developed pan-Nordic corporate and asset management businesses, reinforc - ing our leadership and strengthening our ability to serve clients across the region and globally. However, we believe the greatest opportunities still lie ahead. In the coming years, we aim to extend scale bene- fits to more parts of Nordea to further strengthen our competitiveness and improve our efficiency. Recent pro- gress has put us in a good position to achieve this: our operating model is simpler, accountability is clearer, and technology – now central to how we operate and grow – is unlocking opportunities that were once beyond reach. We will take a Nordic-first approach to this work. Wherever practical and beneficial, we will design and build common solutions for all four markets from the out- set, ensuring consistency and scalability across the region. Artificial intelligence (AI) will play an important role here. AI is used at Nordea in a variety of ways, for example to power virtual assistants that support customers and help colleagues in their daily work. AI systems also help predict customer churn, detect fraud and accelerate software development. In the next phase, we will apply AI across our core product areas, such as mortgages, corporate lending, savings, and payments. In each area, we aim to make processes smarter and more automated, enabling large and complex tasks to be handled with greater efficiency. For customers, this means faster, smoother services. For example, a mortgage application should progress from submission to approval in fewer steps, with processing time reduced significantly. We also see major scale benefits where our technology capabilities are concerned. We are working to reduce the number of platforms and applications we operate, modernise legacy systems and strengthen engineering productivity. By 2030, we expect a minimum of 60% of our workloads to be running on new generation systems – making them faster, more reliable and secure, and eas- ier to manage. Data will be another critical enabler. High-quality data is essential to understanding customer needs and developing products and services that feel more personal and relevant. We are investing in our data management capabilities to further strengthen in this area. By unlocking Nordic scale benefits across products, processes, technology and data, we are targeting a gross annual cost take-out of EUR 600m by 2030, equivalent to more than 10% of our cost base. Continued capital excellence We will continue to deliver capital excellence. Our capital position has been among the strongest in Europe for years, supported by robust financial performance, solid capital generation and disciplined capital management. At the end of 2025 our Common Equity Tier 1 ratio – a key measure of a bank’s financial strength – stood at 15.7%. We achieve high returns on invested capital and maintain low capital intensity through optimal deployment across the Group. Since 2019, we have returned EUR 21.7bn of capital to shareholders. We expect to maintain strong capital generation, enabling business growth, potential bolt-on acquisitions, and continued significant shareholder distributions, which, subject to shareholder approval, will include semi-annual dividends going forward. ===== SIDA 15 ===== Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other 14Nordea Annual Report 2025 Our 2030 vision and key priorities Vision The best-performing financial services group in the Nordics Key priorities Growth Grow faster than the market and sustain high profitability Offering Lead with a compelling customer of fering and the best digital experience Scale Deliver scale benefits for superior competitiveness and efficiency Accelerated by technnology, data and AI Supported by High-performance culture Capital excellence Sustainability at the core ===== SIDA 16 ===== Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other 15Nordea Annual Report 2025 Our financial targets 1) Assuming a CET1 ratio of ~15.5%. Targets for the 2026–30 strategy period Return on equity >15% Throughout the period and significantly higher in 20301 Cost-to-income ratio 40–42% Excluding regulatory fees 2) Mid-year distribution paid from retained earnings. 3) Used to distribute excess capital. High credit quality Lo an losses ~10bp Supported by Capital excellence and EUR >20bn in total sh areholder distributions during 2026–30 60 –70% payout ratio with semi-annual distributions2, and buy-backs3 Deliver earnings per share of EUR ~2.0 in 2030 2030 ambition ===== SIDA 17 ===== Nordea Annual Report 2025 16 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other SUSTAINABILITY AT THE CORE Supporting customers in the sustainability transition We believe that sustainability builds long‑term resilience and competitiveness, both for our business and for our customers. We therefore support our customers in the transition as a leading Nordic provider of sustainable and transition finance. In 2025 it became clear that the sustainability transition is not progressing fast enough to meet global climate commitments. Geopolitical upheaval and evolving EU regulation have added further uncertainty. Even so, the Nordic region continues to distinguish itself as a global frontrunner in areas such as environmental protection, clean energy, biodiversity, human rights and inclusion – and remains one of the strongest drivers of sustaina - ble development worldwide. The financial sector has a critical role to play in sup - porting the development of a more resilient and sus- tainable society. That is why we are committed to becoming a net-z ero emissions bank by 2050 at the lat- est. As part of this commitment, we have already reduced carbon emissions from our own operations in targeted areas by more than 50% since 2019. At the same time, we recognise that acting as an intermediary of capital through our lending and invest - ments is our most important contribution to the societal transition. With an attractive offering that enables sustainable choices for our corporate, personal and pri - vate banking customers, we help advance that transition. Through consistent risk management practices, focused customer dialogues and careful business selec - tion, we have succeeded in reducing financed emissions in our lending portfolio by 44% compared with 2019, keeping us firmly on track to meet our 2030 reduction target. We have long been recognised as a Nordic leader in responsible investment, sustainable finance and active ownership, and we continue to strengthen our offering in line with evolving regulation and customer needs. During our 2022–25 strategy period we built a solid foundation by integrating ESG factors into our business strategy and internal processes, and developing strong governance practices. We are in a strong position to continue meeting the needs of customers at different stages of transition. Our expertise and experience enable us to provide practical, relevant support that helps strengthen customers’ long- term resilience and competitiveness. “ O ur strategic vision for 2030 is to be the preferred financial partner in the Nordic transition to net zero.” ===== SIDA 18 ===== Nordea Annual Report 2025 17 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other SUSTAINABILITY AT THE CORE Prioritised sustainability themes guiding our work We prioritise the themes that matter most for our employees, customers and the Nordic societies Environmental Climate & energy We support our customers’ transitions and partner with the broader community to enable development for a c limate-resilient economy Preferred Nordic transition partner Nature We leverage our scale and size to build financial expertise on nature-related risks and impacts and engage on finance supporting the protection of nature Financial expert on nature-related risks and opportunities Social and governance Financial well-being We encourage sound financial practices and help create financial well-being by fostering inclusion, literacy and confidence Personal, accessible and inclusive adviser Inclusive & safe societies We promote financial stability and respect human rights while committing to continu - ous progress Responsible financial services provider supporting human rights Looking ahead, our strategic vision for 2030 is to be the preferred financial partner in the Nordic transition to net zero – transitioning and growing together with our customers. We will achieve this by prioritising three interconnected focus areas: • A competitive transition offering , with sustainable and transition finance solutions to support customers’ long-term transition planning. • Active engagement , in close collaboration with cus- tomers, investee companies and stakeholders to man - age impacts, address risks and enable the transition. • Building resilience by further integrating ESG factors into our core processes to strengthen our risk man - agement practices and build long-term stability. These focus areas are underpinned by four sustainabil - ity themes that are of central importance to our employ - ees, customers and the Nordic societies: climate & energy, nature, financial well-be ing, and inclusive & safe societies. This ensures that our strategic priorities and customer support are aligned with the areas where our contribution can have the greatest impact. Preferred financial partner in the transition By supporting our customers’ transitions, we contribute to the wider Nordic societal transition. We help corpo - rates and institutions by enabling them to reduce risk, unlock growth opportunities and build resilience – no matter where they are in their journey. Climate transition planning is crucial for businesses of all sizes. We offer financial services that help customers future-proof their business and gain competitive advan - tages, taking the specific circumstances of their market and sector into consideration. For large corporates, we work closely with customers on their transition journeys, supporting them with expertise and bespoke financing solutions. For small and medium-sized companies, we also offer training, products and tools to support their work. Our actions are supported by our strong internal foun - dation, with sustainability at the core of our processes, risk management and corporate culture. Between 2022 and 2025 we facilitated EUR 235bn in sustainable financing, exceeding our target. This sum included green and sustainability-linked loans for household and corporate customers, and green and social bonds. We are recognised as a leading European bank for sustainable and sustainability-linked loans to large corporates. Creating impact through engagement Building a more resilient society means taking action on a range of environmental and social factors that matter. We engage with customers, employees and other stake - holders as part of our daily work to create great cus- tomer experiences and support the transition. We hold ourselves to the same high standards we expect of others. As an employer, we are committed to inclusion and equal opportunities and to providing a healthy work environment. Our goal is for each gender to have at least 40% representation across our top three leadership levels combined by the end of 2030 – because diverse leadership drives stronger perfor - mance and results. Alongside the customer dialogues we have in our role as a lender, we also engage in active ownership as an asset manager. With EUR 478bn in assets under man - agement, we offer customers a platform to influence the sustainability agenda of the many companies included in our fund offering. In 2025 we engaged on 1,300 occasions with investee companies on issues such as climate action, biodiversity and human rights, and exercised voting rights at over 3,500 AGMs to support initiatives aligned with these priorities. In addition, we continued our targeted engagements on specific topics, including labour rights, hazardous chemicals and methane emissions. For instance, we engaged with oil and gas firms and utility companies to encourage them to commit to a UN-backed initiative to significantly reduce their methane emissions by the end of the decade. In the course of 2025 we engaged with approximately 60 more companies on methane reduction. Strengthening long-term resilience Helping customers build resilience goes hand in hand with future-proofing our own business and operations. We want to play an active role in contributing to societal goals by reducing the adverse impact of our operations and embedding sustainability into how we operate and grow. A key part of this is our collaboration with suppliers. One of our priorities is to strengthen human rights screening in our supply chain. In 2025 we implemented a tool to evaluate suppliers’ transition plans and help us focus our efforts where impact is greatest. We also continue to integrate ESG factors into core processes and strengthen risk management practices – ensuring that we maintain long-te rm financial stability while supporting the transition of the societies we serve. ===== SIDA 19 ===== Nordea Annual Report 2025 18 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other On the way to net zero In our 2022–25 strategy period we made strong pr ogress on our sustainability agenda. The work continues in our new strategy period, g uided by existing and new sustainability targets in the run-up to 2030. Environmental Social & Governance Customer offering and active engagement By 2030, ensure that transition-critical suppliers are either aligned with the Paris Agreement or are subject to active engagement to improve alignment Engage annually with corporate customers (covering ≥70% of financed emissions in the large corporate lending portfolio) on the topic of net zero transition dur - ing the period 2026–30 By 2028, engage in dialogues on biodiversity with cus - tomers representing ≥80% of our large corporate lend - ing exposure in sectors with a high impact on nature Nordea Asset Management By 2030, ensure that 100% of transition-critical investee companies are either aligned with the Paris Agreement or subject to active stewardship to improve alignment Nordea Life & Pension Increase the share of assets under management sup - porting nature and the climate transition by 20% by the end of 2029 compared with 2023 Engage annually with the 30 most material emitters on net zero alignment during the period 2025–29 Ensure that each gender has at least 40% representation at the top three leadership levels combined by the end of 2030 Achieve a minimum average index score of 90 for diversity and inclusion by the end of 2030 Building resilience Reduce emissions across our lending and investment portfolios by 40–50% by the end of 2030 compared with 2019 Lending: Reduce financed emissions by 40–50% Own operations: Reduce carbon emissions by more than 50% and achieve a net positive carbon contribution Nordea Asset Management: Reduce the weighted average carbon intensity (WACI) of listed equities and corporate bonds by 50% Nordea Life & Pension: Reduce the carbon footprint (intensity) of listed equity, corporate bond and directly held real estate portfolios by 40–50% (by 2029 vs 2019) By 2030, ensure that suppliers in all high-risk sectors and countries are covered by an in-depth human rights impact assessment and that identi - fied impacts are addressed according to our human rights due diligence process To support our portfolio-wide lending ta rget, we have set sector-specific targets aligned with science-based pathways and regional sector roadmaps. These are presented in the Sustainability Statement on pages 131–150 . ===== SIDA 20 ===== Nordea Annual Report 2025 19 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Like night and day switching to Nordea For Kolbjørn Nordvik and his family in Trondheim, switching to Nordea has made a positive difference to their everyday lives. When their former bank ended its services for personal custom- ers in Norway, Kolbjørn and his wife decided to come along to Nordea. “We thought it was a golden opportunity to consider our options,” he says, adding that while he and his wife often disagree on many things (he tends to take quick decisions, she likes to think things through more carefully), this time they were completely in sync. As an experienced coach and adviser in leadership development, Kolbjørn greatly values good service and clarity. The transition to Nordea was seamless. “It was like night and day switching to Nordea. I got back the feeling of having an adviser – someone who follows up and actually gets in touch,” he says. For Kolbjørn, it means a lot that the adviser makes an effort “not because they have to, but because they want to”. In his words, “you can see it in the employees – it’s genuine pride”. How would he sum up his experience banking with Nordea? “Good information, minimal extra work and a sense of being seen and that people care. When that’s in place, I’m a happy customer.” “ I got back the feeling of h aving an adviser.” CUSTOMER STORIES Kolbjørn Nordvik ===== SIDA 21 ===== Nordea Annual Report 2025 20 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other INTRODUCTION Built on trust Every day, we work to earn the confidence of those who count on us. Our role in the Nordic economy is built on the trust that people, businesses and society place in us. Our custom - ers expect consistent great service, while our employees value opportunities to develop and grow. Investors expect strong financial performance and sustainable long-term growth, while regulators require us to meet evolving standards and ensure compliance. Each group plays a vital role in our success, and meeting their expectations is key to earning their trust. That trust depends also on work that happens behinds the scenes, for example to manage and antici - pate risks and secure customers’ data, transactions and CUSTOMERS EMPLOYEES SHAREHOLDERS SOCIETY money. Over the past five years, we have invested more than EUR 1bn in strengthening the Group’s resilience, with significant resources dedicated to information security and financial crime prevention. Trust takes years to build and only moments to lose, which is why we will continue to invest to remain safe and trusted. On the following pages, we outline our relationships with four core stakeholder groups: customers, employ- ees, shareholders and societal stakeholders. Our specific actions towards our stakeholders are further elaborated in the Board of Directors’ report on pages 37–193. ===== SIDA 22 ===== Nordea Annual Report 2025 21 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other CUSTOMERS Banking that fits life Financial well-being is the cornerstone of a good life. At Nordea, we want to empower our customers to make confident financial decisions. Whether their needs are simple or complex, our aim is always to earn their trust by being personal, expert and responsible. Relationships that grow Customers build long-term relationships with their bank as they go through life. With our broad range of services – covering everyday payments, savings, investments, pensions, insurance and more – we support them every step of the way. Between 2022 and 2025, we welcomed more than 500,000 new household relationship customers – those who actively bank with us and trust us with their savings or home financing. Personal at every touchpoint Most banking today happens digitally, through our app o r online – and that is where we lead. Our digital ser- vices are designed to be intuitive, reliable and increas- ingly personal, helping customers manage their finances independently and on their own terms. At the same time, human support is always close at hand. Our advisers are ready to help household and cor - porate customers whenever they need us. No matter how they wish to interact with us, we want our custom - ers to feel well supported – and to have a consistently great experience. Customer satisfaction scores show we are moving in the right direction. At the Nordic level, household cus- tomer satisfaction reached an all-time high in 2025. Among small and medium-sized businesses, satisfaction improved relative to peers in all markets, while among large corporates and institutions it rose in three of our four markets. Supporting sustainable choices Global geopolitical and economic uncertainty has made the transition towards a low- ca rbon economy more complex. At Nordea, we remain committed to helping our customers make sustainable choices, even in chal - lenging times. We offer a wide range of financing, savings and investment options, and work closely with corporates to balance long-term goals with real-world challenges. As a leading Nordic provider of sustainable financing to businesses, we are proud to play a key role in support - ing the Nordic transition. #1 mobile bank in the Nordics based on cus - tomer and an alyst ratings 5% year-on-year increase in customer logins to our digital services in 2025 CUSTOMERS ===== SIDA 23 ===== Nordea Annual Report 2025 22 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Institutional partnership driving sustainable investments Lærernes Pension, a leading pension provider for teachers in Denmark, has been a long- sta nding institutional client of Nordea Asset Management ( NAM). Together, Lærernes Pension and NAM have built a strategic part- nership spanning strategic asset allocation, ESG integration, equity, and credit mandates. “We focus on strengthening strategic collaborations where it makes sense and have been very satisfied with the coopera - tion we’ve had with Nordea Asset Management over the years,” says Simon Slot, Head of Credit at Lærernes Pension. In 2025 the partnership expanded to include a tailored green corporate bond mandate. Following a comprehensive mar- ket review, NAM had stood out for its strong bond selec- tion process and ESG approach. This offered good potential for further deepening the strategic partnership. “We worked with Nordea Asset Management to create a tailored man date th at reflects Lærernes Pension’s ambitions for green cor porate bonds while leveraging our existing platform. The collaboration was executed swiftly and efficiently, and we believe this will help us reach our financial goals as well as our climate and environmental investment goals,” says Simon Slot. “ We believe the collaboration will help us reach our financial goals as well as our climate and environmental investment goals.” Simon Slot Head of Credit, Lærernes Pension CUSTOMER STORIES ===== SIDA 24 ===== Nordea Annual Report 2025 23 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EMPLOYEES For people who want to move forward Our people drive our success, helping us adapt and thrive in a fast-changing world. We aim to be the pre - ferred employer in the financial industry in our operat - ing countries – a place where people come as they are and are met with opportunities to evolve, develop and move forward in their careers. A workplace that inspires Our strong performance and high ambitions help us attract and retain top talent from across the Nordics and internationally. We offer clear and structured career opportunities in areas ranging from customer advisory services and technology development to cybersecurity and financial crime prevention. To support our employ - ees’ development, we provide a comprehensive learning curriculum, which includes training on how to use AI effectively and responsibly in daily work. Our efforts to make Nordea a great place to work have strengthened our appeal among students and early- career professionals. In Universum’s 2025 survey, busi- ness students ranked us the most attractive financial industry employer in the Nordics and the second most attractive employer in the region overall. Among infor- mation technology students, we came in the top ten. Strong values Our culture is rooted in a strong customer focus, guided by our values: collaboration, ownership, passion and courage. Our leadership principles support our leaders in their everyday work, helping them guide their teams, develop talent and grow as leaders. Diversity and equality make us better Diversity and inclusion are part of who we are. With a workforce made up of more than 100 nationalities, we are proud to value different perspectives. Diverse teams help us find more creative solutions, deliver better results and serve our customers more effectively. In our 2025 People Pulse survey, we achieved a diversity and inclusion index score of 89: a clear indication that our employees feel we foster a fair, respectful and inclusive workplace. We continue to strengthen the gender balance across the Group. In 2025 women had 43% representation at the top three leadership levels combined – once again in line with our long-t erm target of at least 40% rep - resentation for each gender. We also focus on fair and equal pay. Gender pay gaps are regularly reviewed and addressed, supporting progress towards pay equity across the company. Our ambition is to close the pay gap between women and men in equivalent roles by the end of 2026. In 2025 we were encouraged to see the adjusted pay gap decrease further, to approximately 1.4%, placing us ahead of both Nordic general and financial industry benchmarks. Our diversity and inclusion efforts go beyond gender, embracing cultural diversity, age diversity, LGBTQ+ representation and neurodiversity. We are constantly developing our people processes to ensure equal opportunities and inclusion. 89 Average score for diversity and inclusion, out of 100 (89 in 2024) – comparing favourably with Nordic labour market benchmarks 43% Representation of women at the top three leadership levels combined (target: each gender to have at least 40%) EMPLOYEES ===== SIDA 25 ===== Nordea Annual Report 2025 24 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other SHAREHOLDERS Creating value for our shareholders We maintain a broad and diverse shareholder base, which includes global and Nordic institutions, over 590,000 private individuals across the Nordic region, and numerous pension fund investors representing the interests of millions more individuals. Since the start of our 2022–25 strategy period, the total number of regis- tered shareholders has grown by around 7%, underscoring our position as one of the Nordics’ most widely owned companies. Returns with societal impact The Nordea share is listed on the Helsinki, Stockholm and Copenhagen stock exchanges. We are a market- leading financial services group when it comes to share - holder returns. Our dividend distributions – EUR 15.2bn over the past five years – support economic activity, drive growth in the Nordic societies and help channel funding towards innovation, education and healthcare. Our shareholders also include several non -p rofit foundations, which use their dividend income to fund charitable initiatives. Our capital position has been among the best in Europe for many years and our capital generation remains strong. We were one of the first European banks to start implementing share buy-backs in 2021. Since then, we have distributed EUR 6.5bn to our share - holders through share repurchases. We expect to maintain strong capital generation, sup - ported by our improved financial performance and capi - tal excellence. Total shareholder returns Nordea's TSR, 322% OMXC25 Index (Copenhagen), 80.5%OMX Index (Stockholm), 121.9% HEX25 (Helsinki), 89.3% 60 140 220 300 380 460 +322% 2025202420232022202120202019 1 EUR 1) Repositioning of Nordea in the autumn of 2019. 21.7bn total capital returned to shareholders since we began our repositioning in autumn 2019 (EUR) 15.2bn dividends paid since autumn 2019 (EUR) SHAREHOLDERS ===== SIDA 26 ===== Nordea Annual Report 2025 25 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other SOCIETY Driving positive change in our communities We play an active role in supporting the long-term pros- perity of the Nordic region, contributing much more than financial products and services. A key focus is ena- bling entrepreneurship and building skills that promote financial well- b eing, strengthen social belonging and improve quality of life. Community engagement Community engagement is about creating positive change in society. We work with our communities to build long-term prosperity by strengthening financial skills, backing entrepreneurs and fostering inclusion through partnerships, own initiatives and employee volunteering. In schools across the Nordics, Poland and Estonia, our volunteers run practical sessions and digital workshops for young people on budgeting and saving. Since 2016, we and our partners have facilitated financial learning activities for more than 1.2 million participants. We also mentor young entrepreneurs and support initiatives that provide access to funding and networks. Highlights include our Abilitypreneur of the Year award in Denmark, Finland and Sweden, and a collaboration in Norway with Large Ice Cream Company, which created nearly 1,000 summer jobs in 2025. We engage directly in communities by volunteering with food banks and refugee help centres, supporting integration through hands-on assistance. Our support for Ukrainian refugees has received recognition from the Ukrainian World Congress. To date, more than 1,000 col- leagues have volunteered at the Helsinki aid centre. Responsible taxpayer We are one of the largest corporate taxpayers in the Nordic region. In 2025 our total tax footprint was EUR 5.8bn, comprising income tax, VAT, social security con - tributions, and taxes collected on behalf of govern - ments from shareholders, customers and employees. This reflects our commitment to support economic growth, stability and development across the region. Further information on our role as a responsible taxpayer can be found on pages 76–78. Fighting fraud and financial crime We work every day to protect our customers and society against financial crime. Our efforts focus on preventing fraud and other threats before they happen. In recent years we have succeeded in reducing fraud losses for our customers by implementing safer and easier-to-use security solutions, improving our monitoring, and creat - ing products that are even more secure. Today, we have more than 3,400 employees fully dedicated to keeping our customers safe. We will keep investing in technology, capabilities and training to ensure we can address rapidly evolving fraud and financial crime threats. Collaboration is also critical. Fraud is a societal prob- lem and all societal actors need to work together to keep everyone safe. That is why we work closely with authori- ties and industry experts to share our knowledge. We also actively contribute to public discussions, help- ing to raise awareness regarding emerging risks and how to stay protected. >1.2m participants in financial learning activities facili - tated by us and our partners since 2016 5.8bn in taxes paid and collected in 2025 (EUR) SOCIETY ===== SIDA 27 ===== Nordea Annual Report 2025 26 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Presto brings circular innovation to fire safety What happens to a worn-out fire extinguisher? At Presto, it’s given a second life. In the company’s Swedish “green factory”, returned extin - guishers are emptied, tested, refilled and sent back into use. This process reduces the need for new metals and minerals by more than 60% and cuts emis- sions significantly. For over 40 years, Nordea has been a partner in this journey, helping Presto to finance growth and fleet expansion, setting up a global cash pool, and supporting the company with daily banking, strategic advice and ESG expertise. “Nordea is a strategic partner who understands not only our business but also our values,” says Olof Fransson, Presto’s CFO. “Their support has enabled us to expand rapidly across Europe with a focus on sustainable growth.” The results speak for themselves. In 2024 Presto increased turnover by around 50% through organic growth and acquisitions, all while advancing its ambi - tion to phase out harmful substances such as PFAS. The partnership is highly valued within Nordea too. “Presto is an exciting cu stomer to follow: market- leading in a socially important industry and at the forefront of sustainability,” says Per Nestor, Senior Relationship Manager at Nordea. By combining safety, sustainability and smart economics, Presto shows how circular business models can create both climate benefits and competitiveness. Together with Nordea, the company continues to prove that rethinking resources can protect not just people, but also the future. “ Nordea understands not only our business but also our values.” Olof Fransson CFO, Presto CUSTOMER STORIES ===== SIDA 28 ===== Nordea Annual Report 2025 27 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other INTRODUCTION Our four business areas Our four business areas cater to the needs of different customer segments, from private households and small businesses to some of the largest enterprises in the Nordic region serving markets worldwide. Each strives to offer best-in-class advisory services, products and solutions. Our business is built around the needs of our customers. Each business area is fully accountable for its income, costs, risks, customer experience, investment decisions and capital management, while operating under a sin - gle pan-Nordic operating model supported by shared Group functions. This unified approach ensures effi - cient, consistent delivery and enables us to effectively serve customers who may interact with us in different capacities – whether as private individuals, business owners or clients building their financial portfolios. Personal Banking In Personal Banking we provide household customers with easy and convenient day-to-day banking and advice for life’s bigger financial decisions. We are committed to supporting their financial well-being with a comprehensive and attractive range of products and services, along with a great customer experience. Our vision is to be the preferred financial services partner for household customers in the Nordics. Asset & Wealth Management In Asset & Wealth Management we offer award- winning private banking, life and pensions and wealth m anagement s ervices. We are a leading savings and investment p artner in each Nordic market and a leading European asset manager, providing customers with valuable advice, global reach and a c ompetitive sustainability offering. Our vision is to be the preferred savings and investment partner in the Nordics. Business Banking In Business Banking we support small and medium-sized enterprises (SMEs) with a full range of banking services designed to help them grow and develop sustainably. Our advisory ser- vices and comprehensive range of products and digital solutions enable our customers to be suc - cessful both locally and internationally. Our vision is to be the preferred financial partner for all SMEs in the Nordics. Large Corporates & Institutions In Large Corporates & Institutions we support large Nordic corporate and institutional customers with a range of financial solutions. We also provide services through the product and specialist units Markets and Investment Banking & Equities and through our international corporate branches in New York, London and Shanghai. Our vision is to be the preferred financial partner for large corporates and institutions in the Nordics. ===== SIDA 29 ===== Nordea Annual Report 2025 28 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other PERSONAL BANKING Easy everyday banking In Personal Banking we provide household customers with easy and convenient day-to-day banking and advice for life’s bigger financial decisions. We are committed to supporting their financial well-being with a comprehensive and attractive range of products and services, along with a great customer experience. Our vision is to be the preferred financial services partner for household customers in the Nordics. How we do business We offer individuals and households a wide range of financial services, from savings accounts and investment products to home loans and payment services. Our focus is on providing customers with a banking experience that is seamless and personal. We do this by combining our strengths as a digital leader with expert advice whenever it is needed – ensuring our customers feel supported and confident in managing their finances. As part of our commitment to a sustainable future, we also offer our customers a wide range of sustainability-linked lending and savings products. Business development We performed well in 2025, using our broad product portfolio, digital services and proactive approach with customers to deliver solid growth in business volumes. In the uncertain environment, households’ main focus was on savings and investments, as reflected in a 5% year-on-year increase in deposits and higher net flows into investment funds. We also had a 16% year-on-year increase in recurring savings inflows. Customers contin - ued to actively seek our advice – and we were well equipped to support them. There were further signs of a gradual recovery in the Nordic housing markets, helped by lower interest rates. Demand for loan promises continued to grow. Mortgage lending increased by 1% in local currencies year on year, driven by both Sweden and Norway, where we also increased our market shares. In Sweden, we strengthened our position by securing a 22% share of the market growth – significantly above our back book market share of 14%. Our total household lending volumes grew by 1%, to EUR 180bn. In Norway, growth was supported by our late-2024 acquisition of Danske Bank’s Norwegian personal customer banking business. Our offering has been well received by our new Norwegian customers, and engagement with them is developing positively as we broaden our relationship. At the time of the acquisition, only 16% of the transferred customers were full relationship customers, meaning they had their salary ===== SIDA 30 ===== Nordea Annual Report 2025 29 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other PERSONAL BANKING paid into their Nordea account, used an active Nordea card and held a savings product or mortgage with us. By the end of 2025, that share had risen to 49%. When we began our previous strategy period in 2022, only half of everyday banking needs could be met digi - tally. We set a goal to reach full digital coverage by the end of 2025 – and achieved it. Customer use of our digital services has grown in step. We now have one million more digitally active customers, a 29% increase. In 2025 demand for digital savings and investment services was particularly strong. New additions to our digital self-service offering in 2025 included our Financial Health Check feature, which provides customers with personalised insights to help them improve their finances. We also enhanced savings insights, streamlined the trading flow, and introduced a more intuitive way to search for and explore funds within the mobile app. Customers can now transfer money from another bank to their Nordea account directly in our app without needing to log in to the other bank’s app – making the process faster and easier. They can also manage loans more flexibly by changing payment dates or renaming loans directly in the app. Moreover, personal customers in Finland can activate the Nordea ID app using a Finnish passport or identity card, which is especially helpful for those who have lost their device or need quick access. Throughout the year, our advisers actively followed up on digital leads, uncovering additional customer needs and driving more advisory meetings. These meetings have become more efficient, with fewer cancellations and quicker follow-ups. A key improvement in 2025 was enabling customers to pre - pare for savings and investment discussions from home, allowing advisers to deliver more personalised, higher-quality advice. Our standout performance in digital banking earned us the title of best digital bank in the Nordics in Euromoney’s Awards for Excellence and multiple awards from Global Finance, including Best Consumer Digital Bank and Best Mobile Banking App in all the Nordic countries. Our ESG products continued to perform well, with the ESG share of gross inflows into funds at 35%. To pro - mote home energy efficiency, we launched a discounted heat pump loan together with a partner in Sweden. Customer satisfaction remained on a good level and was stable relative to peers. Our iOS and Android apps maintained high ratings. Results Total income decreased by 3% year on year, reflecting lower interest income in the lower rate environment. Mortgage volumes grew by 1% in local currencies year on year, driven by higher customer activity and our increased market share in Sweden. Deposit volumes were up 5% year on year. Net interest income decreased by 6% year on year, driven by lower deposit margins across the Nordics due to rate changes. The lower margins were partly offset by our deposit hedge. Net fee and commission income increased by 7% year on year, mainly driven by higher savings and payments income in Norway and Sweden. Total expenses increased by 2% year on year due to salary inflation and continued investments in technology and risk management in line with our business plan. Total net loan losses and similar net result amounted to EUR 27m (2bp), compared with EUR 86m (5bp) in 2024, reflecting strong portfolio quality. Operating profit decreased by 4% and return on allocated equity (RoAE) decreased to 16% from 18%. The RoAE decrease was driven by changes to the internal model framework, which resulted in higher allo - cated equity and lower income. ” O ur focus is growth – built on great digital experiences, trusted advice and relationships that last.” Sara Mella Head of Personal Banking 2025 financial highlights Grew mortgage lending volumes by 1% in local currencies year on year. Grew deposit volumes by 5% in local currencies year on year. Drove a 7% year-on-year increase in net fee and commission income. 2030 targets RoAE: >19% Cost-to-income ratio : <43% 2030 priorities Growth: Grow faster than the market in Sweden and Norway, and grow the number of relationship customers. Offering: Lead with best-in-class digital experiences and personalised offerings that maximise customer value. Scale: Deliver operational excel - lence with Nordic tech-powered core processes. ===== SIDA 31 ===== Nordea Annual Report 2025 30 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other ASSET & WEALTH MANAGEMENT The preferred savings and investment partner In Asset & Wealth Management we offer award- w inning private banking, life and pensions and wealth m anagement s ervices. We are a leading savings and investment p artner in each Nordic market and a leading European asset manager, providing customers with valuable advice, global reach and a c ompetitive sustainability offering. Our vision is to be the preferred savings and investment partner in the Nordics. How we do business We help customers grow and preserve their wealth through a comprehensive range of savings, investment and banking solutions. Serving private banking clients, corporations, foundations and institutional investors, we combine a broad advisory network across 17 countries with a leading mobile banking platform to support diverse financial goals. We approach investment with a clear sense of respon- sibility. Alongside managing investment funds, we exer- cise active ownership to drive positive change in compa- nies we invest in on behalf of our customers. Our expertise allows us to provide a wide selection of globally competitive ESG products, enabling our clients to invest and grow their wealth with purpose. We are also committed to protecting our customers’ long-term financial security with a suite of competitive life insurance and pensions products and services. Business development In 2025 we had good momentum in Private Banking, with solid customer acquisition and record-high customer satisfaction in all our home markets. Amid sig - nificant market turmoil, we showed resilience and drove a net inflow of EUR 6.3bn, supported by our strong offering. We also completed the integration of Danske Bank’s Norwegian private banking business, expanding our position in Norway. Our 2022–25 strategy period has seen us significantly strengthen our position across the Nordics and attract more Private Banking customers, helped by sustained investment in our digital and advisory capabilities. In 2025 we made further enhancements to our platform, launching new features and richer digital content in support of our objective to be a digital leader in savings and investments. Our position as a trusted adviser was reflected in the 2025 Prospera customer satisfaction survey, where we maintained our Nordic number one position for overall ===== SIDA 32 ===== Nordea Annual Report 2025 31 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other ASSET & WEALTH MANAGEMENT performance. We also significantly improved our rank - ing in Sweden, climbing to second place from fifth a year ago. In Professional Wealth Management’s Global Private Banking Awards we were named the Best Private Bank in the Nordics for a third consecutive year, while Global Finance again recognised us as the Best Private Bank in each of our four home markets. Assets under management (AuM) increased by 13% year on year, to a record high of EUR 478bn. Investment performance remained strong, with 79% of aggregated composites providing excess return on a three-year basis. Net flows in our international channels continued to stabilise, with many clients continuing to favour alterna- tive products such as fixed-term or money market funds in the uncertain macroeconomic environment. Our Nordic channels continued to deliver strong inflows, with Life & Pension inflows at a record high. We were pleased to see strong interest in our new Nordea 1 – Empower Europe Fund, which invests in the drivers of Europe’s transformation: energy resilience, reshoring, and defence and cybersecurity. Since its mid-year launch, the fund has grown to more than EUR 500m. We also saw strong interest in our sustainable investment approach. One of our new BetaPlus funds, launched in the summer, is already the largest actively managed sustainable ETF in Europe. Our strong distribution power and high-quality asset management franchise earned us an even higher annual ranking in Investment & Pensions Europe’s Top 500 Asset Managers. We also won the 2025 Environmental Finance sustainable investment awards for environmen - tal fund of the year and global and social fund of the year with our Global Climate and Environment Fund and Global Diversity Engagement Fund, respectively. Underscoring our long-standing commitment to inte - grate impact throughout the investment life cycle, we became a signatory to the Operating Principles for Investment Management (OPIM) for our Global Impact Strategy. In Life & Pension, where we offer customers a full range of pension, endowment and risk products, gross written premiums reached an all-time high. In Denmark, we reached a major milestone in the integration of Topdanmark Life by completing the IT system separation. We were also named Commercial Pension Company of the Year by Finanswatch and EY for the second year in a row. In Sweden, we launched Nordea Node, our digital pension value proposition and platform for the small and medium-sized business segment. This represents a key step in simplifying and digitalising occupational pensions, drastically reducing time spent on administration, and delivering an outstanding customer experience. Results Total income decreased by 2% year on year, to EUR 1.3bn, mainly driven by lower net interest income. Net interest income was EUR 291m, down 10% year on year, mainly driven by lower interest rates. Lending volumes increased by 7% year on year. Deposit volumes increased by 13%. Net fee and commission income was EUR 921m, flat year on year, as higher AuM offset customer preference for lower-risk and lower-margin products. Net insurance result decreased by 4%, to EUR 91m, mainly due to higher claims for occupational pension products. Net result from items at fair value amounted to EUR 48m, up from EUR 44m in 2024, mainly due to higher return on shareholders’ equity portfolios. Total expenses increased by 9% year on year, mainly due to strategic investments in key areas, including technology, data and AI; and annual salary inflation. Net loan losses and similar net result amounted to EUR 4m, compared with EUR 0m in 2024. Operating profit was EUR 730m, down 10% year on year. The cost-to-income ratio was 46%, compared with 41% in 2024. Return on allocated equity (RoAE) was 32%, com - pared with 39% a year earlier. “ We aim for strong growth in the years ahead. Operating at Nordic scale means we can serve the region’s growing savings needs better than anyone else.” Martin A Persson Head of Asset & Wealth Management 2025 financial highlights Drove a strong performance in Private Banking, supporting a EUR 6.3bn net inflow. Grew AuM to a record high of EUR 478bn. Grew full-year gross written premiums in Life & Pension to an all-time high of EUR 12.9bn. 2030 targets RoAE: >40% Cost-to-income ratio : <36% 2030 priorities Growth: Grow faster than the market in Pr ivate Banking and L ife & Pension. O ffering: Lead with superior wealth value propositions and best-in-class digital experiences. Scale: Deliver Nordic scale benefits in the savings value chain for cost- efficient growth. ===== SIDA 33 ===== Nordea Annual Report 2025 32 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other BUSINESS BANKING The trusted partner for small and medium-sized businesses In Business Banking we support small and medium-sized enterprises (SMEs) with a full range of banking services designed to help them grow and develop sustainably. Our advisory services and compre- hensive range of products and digital solutions enable our custom- ers to be successful both locally and internationally. Our vision is to be the preferred financial partner for all SMEs in the Nordics. How we do business We help small and medium-sized enterprises (SMEs) in the Nordics succeed by offering both essential banking services and expert advice to support more complex needs. We provide expertise on a broad range of sectors and assist startups and high-growth companies via dedicated teams in each market. Our award-winning digital capabilities deliver effortless daily banking for customers while helping us free up time for advisers to meet unique customer needs. With our strong offering of ESG-related advisory services and products, we are ideally positioned to help customers transition to sus- tainable business models. Business development In 2025 we actively supported customers in strengthen - ing their businesses and achieved solid volume growth despite ongoing macroeconomic and geopolitical uncertainty. Nordic SMEs adapted effectively to the changing conditions, as reflected in our consistently strong credit quality. In the stabilising rate environment, customer interest in capital market funding increased, while demand for interest rate hedging instruments declined. Lending volume growth accelerated to 6% in local currencies year on year, driven in particular by market share captures in Sweden and Norway. Supported by growth across all markets, deposit volumes increased by 5% in local currencies, increasing our market share in all markets. Throughout our 2022–25 strategy period, our focus has been on creating more value for customers by leveraging the strength of our Nordic scale. Streamlined processes and effective use of our data-driven customer insights tool by relationship managers have improved our overall structural efficiency. As a result, we can now offer more relevant advice to customers and spend more time building relationships. The improved efficiency also means we now generate nearly 50% more income per frontline employee than in 2022. In 2025 we continued to develop our cash management and payments offering, which we view as ===== SIDA 34 ===== Nordea Annual Report 2025 33 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other BUSINESS BANKING a key driver of deeper customer relationships. With strong cash management capabilities, we can position ourselves as our customers’ house bank, creating opportunities for ancillary income. In line with our strategic ambition to become the leading digital bank for SMEs, we further improved Nordea Business and the mobile app. With one Nordic platform, customers across the Nordics can now benefit from a unified experience, with self-service features, remote support and product purchase options. In 2025 we launched the Swedish pilot of our Business Insights tool, which is designed to help Nordic small business customers manage their liquidity and cash flows. We also improved the online application enabling customers to apply for financing at a time of their choosing. Customers in Norway and Sweden can now apply online for a green business loan and car leasing, respectively. During the year we also worked on making it much easier for customers to select and access the right products for their needs. In Denmark, we added fixed- term accounts to our digitally available products, while in Finland we added transaction accounts. Self-service purchases in the online product store increased by more than 20%. Today, 80% of everyday banking needs are covered by our self-service options. We remain committed to supporting our customers in their sustainability transitions. Our sustainable financing portfolio continued to grow in 2025 and now represents 15% of total lending. To further promote sustainable growth, we engaged in sustainability-themed meetings with more than 4,900 customers during the year and expanded our guarantee agreement with the European Investment Bank to include Denmark. Our commitment to deliver a better all-round customer experience was reflected in improved customer satisfac- tion scores across the Nordics and narrower gaps with peers. In the 2025 Prospera survey, we ranked first for small and medium-sized corporates in Sweden for the fourth and third consecutive years, respectively. Meanwhile, Nordea Business and the mobile app won Global Finance’s awards for Best Corporate Digital Bank and Best Mobile Banking App in each of the Nordic countries. Results Total income decreased by 5% year on year as lower deposit income was partly offset by higher volumes and higher net fee and commission income. Net interest income decreased by 8% year on year due to lower deposit margins, driven by reduced policy rates. The lower margins were partly offset by growth in business volumes. Net fee and commission income increased by 4% year on year, driven by higher lending fee income and higher payment and card fee income. These were partly offset by lower income from equity and debt capital market transactions. Net result from items at fair value increased by 1%, driven by higher income from sales of foreign exchange products. Total expenses increased by 5% year on year, driven by strategic investments in key areas, including technology, data and AI, and risk management capabilities. The cost-to-income ratio increased to 45%, compared with 41% a year ago, reflecting the lower deposit income. Net loan losses and similar net result amounted to EUR 4m (0bp), down from EUR 130m a year ago. We maintained a diversified portfolio across segments and countries. Operating profit decreased by 5% year on year, to EUR 1,766m, primarily driven by lower deposit income and higher investment expenditure. Return on allocated equity (RoAE) was 16%, compared with 17% a year ago. “ O ur leading digital capabilities, deep expertise and Nordic footprint uniquely position us to support SMEs as they drive innovation and growth.” Nina Arkilahti Head of Business Banking 2025 financial highlights Grew lending volumes by 6% in local currencies year on year. Grew deposit volumes by 5% in local currencies year on year. Drove a 4% year on year increase in net fee and commission income. 2030 targets RoAE: >15% Cost-to-income ratio : <39% 2030 priorities Growth: Grow faster than the market in Sweden and Norway, and focus on small businesses and relationship depth. Offering: Lead with best-in-class pay - ments, and digital offerings anchored by sector expertise and insights. Scale: Deliver Nordic scale benefits, leveraging shared platforms for payments, lending and data. ===== SIDA 35 ===== Nordea Annual Report 2025 34 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other LARGE CORPORATES & INSTITUTIONS The bank of choice for large Nordic corporates and institutions In Large Corporates & Institutions we support large Nordic corporate and institutional customers with a range of financial solutions. We also provide services through the product and specialist units Markets and Investment Banking & Equities and through our international corporate branches in New York, London and Shanghai. Our vision is to be the preferred financial partner for large corporates and institutions in the Nordics. How we do business We serve the banking and finance-related needs of many of the leading businesses and institutions in the Nordics, targeting an exceptional level of customer ser - vice. Beyond traditional banking, we provide strategic advice, M&A services, financing solutions, and access to equity and debt capital markets, while helping custom - ers manage financial risks and optimise their overall financial performance. In recent years we have devel - oped market-leading ESG advisory services to support customers in their sustainability transitions. Our pan-Nordic diversification, capital excellence and focus on selected growth opportunities position us well for sustained business success. Business development In 2025 we actively supported and advised our custom - ers amid continued uncertainty, changing interest rates, and periods of volatility and subdued demand. In the challenging environment, our diversification, strong credit quality and market-leading position enabled us to deliver a strong financial performance, including high profitability. Lending volumes increased by 10%, with particularly strong growth in Sweden (20%). In Finland, we com - pleted the acquisition of a EUR 492m syndicated loan portfolio, strengthening our client relationships and supporting our growth objectives. Deposit volumes decreased by 3% year on year, but were up 7% in Sweden and 11% in Finland. Our results reflect the strong progress made in our 2022–25 strategy period. We have become a more streamlined and return-focused business area, sup - ported by strict cost and capital management. At the same time, we have kept a clear focus on our customers, shaping our offering around their needs and building deeper relationships with them. That work helped us secure all-time-high customer satisfaction scores in the 2025 Prospera survey. At the Nordic level, we outpaced all peers in positive development, ranking second, and we ranked first in ===== SIDA 36 ===== Nordea Annual Report 2025 35 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other LARGE CORPORATES & INSTITUTIONS Norway. The results are well aligned with our vision to become the preferred financial partner for large corpo - rates and institutions in the Nordics. Our award-winning ESG offering continued to attract interest. We facilitated an additional EUR 47bn in sustainable financing, bringing the total to EUR 223bn and comfortably surpassing our 2025 target of EUR 200bn. Moreover, 91% of our exposure to climate-vul - nerable sectors is now backed by customer transition plans, fully consistent with the goal we set three years ago. Debt Capital Markets activity remained high, helping us maintain our number one league table positions for Nordic bonds and Nordic loans. We arranged more than 600 debt capital market transactions for a broad range of issuers, including a EUR 7bn bond for the European Union and EUR 4bn and GBP 500m issues for Carlsberg. In a testament to our broad and strong advisory capabilities, we were named the Best Investment Bank in each of our home markets by Global Finance. We also facilitated several high-profile equity capital market transactions and mergers and acquisitions despite lower market activity compared with last year. Notable achievements included securing a second-place ranking in the Nordic initial public offering (IPO) league table, facilitating the Asker Healthcare Group IPO, being the sole Nordic bank appointed for Klarna’s USD 1.6bn IPO on the New York Stock Exchange, acting as finan - cial adviser for Nordfyns Bank in the merger with Middelfart Sparekasse, and advising Qt Group on its offer for I.A.R. Systems. Our secondary equities business grew by 11% year on year. Nordea Markets delivered strong customer support amid geopolitical uncertainty and volatility, with high client activity across all asset classes, particularly in fixed income and derivatives. We continued to develop our customer offering through further digitalisation. We introduced SEPA payments in Nordea Corporate, improving customer experience and reducing fraud. Customer adoption of our treasury automation offering for managing foreign currency flows and liquidity increased by approximately 30% year on year. In 2025 as a whole we demonstrated our deep commitment to deliver strong and stable customer support and financial value in uncertain times. Results Total income decreased by 2% year on year, mainly due to a 10% decrease in net interest income, driven by lower interest rates. This was partly offset by higher lending volumes. Net fee and commission income was down 1% year on year, driven by lower corporate finance market activity compared with last year. This was partly offset by strong performance in our secondary equities business, income from asset management products, and lending fee income. Net result from items at fair value increased by 20% due to high customer activity and robust market making income. Total expenses increased by 2% year on year, driven by strategic investments in several areas, including technology, data and AI. The cost-to-income ratio was 40%. Net loan losses and similar net result amounted to a net reversal of EUR 10m, compared with a net reversal of EUR 14m in 2024, reflecting the strong underlying credit quality of our loan book. Operating profit was down 5% year on year at EUR 1,411m. We continued to exercise solid capital discipline, achieving a return on allocated equity (RoAE) of 16% for the full year. “ O ur customers have navigated these challenging times with resilience. We are fully committed to supporting them also in their future endeavours.” Petteri Änkilä Head of Large Corporates & Institutions 2025 financial highlights Delivered an RoAE of 16%. Grew lending volumes by 10% year on year. Facilitated EUR 47bn in sustainable financing, bringing the 2022–25 total to EUR 223bn. 2030 targets RoAE: >15% Cost-to-income ratio : <37% 2030 priorities Growth: Grow faster than the mar- ket, with a focus on Sweden, Norway, increasing cross-sales, and growing the infrastructure segment. Offering: Lead with strong value propositions, including best-in-class payments and improved sector expertise. Scale: Deliver scale advantages through streamlined processes benefiting customers in all major product areas. ===== SIDA 37 ===== Nordea Annual Report 2025 36 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other CUSTOMER STORIES A long-term partnership driving healthcare excellence Founded in 1909, Mehiläinen has grown from a small hospital in Helsinki into Finland’s largest private healthcare and social care provider, with an expanding international presence. Today, it is a cornerstone of Finland’s healthcare system and a pioneer in digital health. Operating in seven countries with over 37,000 employees, Mehiläinen has charted an impressive growth path. Its rev - enue has increased more than fivefold over the past decade, surpassing EUR 2bn in 2024. This success stems from a com- bination of strategic acquisi- tions, organic growth and con - tinuous innovation. “The availability and cost of financing has fluctuated quite a lot over the past ten years, and it’s been crucial to have Nordea as a stable and reliable financial partner throughout the journey,” says Mehiläinen CEO Janne- Olli Järvenpää. Nordea has supported Mehiläinen for decades, with services ranging from debt funding and lending to pay - ment infrastructure. In 2025 it helped facilitate the com - pany’s EUR 1.09bn bond issuance and the repricing of its EUR 1.86bn term loan, enabling acquisitions in Romania and Serbia. Mehiläinen’s BeeHealthy platform reflects its digital leadership, offering remote care and online health tools to millions. As the company expands across Europe, Nordea remains a trusted financial partner, supporting the company’s mission: “to improve health and well- being together”. “ It’s been crucial to have Nordea as a stable and reliable financial partner.” Janne-Olli Järvenpää CEO, Mehiläinen ===== SIDA 38 ===== Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other 37Nordea Annual Report 2025 TABLE OF CONTENTS Board of Director’s report Key events of the year .................................................................... 38 Outlook ................................................................................................... 38 Financial review 2025 ..................................................................... 39 Five-year overview ........................................................................... 41 Ratios and key figures .................................................................... 42 Business area results ....................................................................... 43 Other information .............................................................................. 45 Main legal structure ......................................................................... 46 Risks and risk management ........................................................ 47 Macroeconomy and financial markets .................................. 49 The Nordea share and external credit ratings .................. 50 Capital management and new regulations ........................ 53 Corporate Governance Statement 2025 ............................... 58 Board of Directors ............................................................................. 63 Group Leadership Team ............................................................... 68 Group functions .................................................................................. 69 Group organisation ........................................................................... 69 Remuneration ...................................................................................... 73 Conflicts of interest policy ........................................................... 75 Responsible taxpayer ...................................................................... 76 Country by country reporting ..................................................... 79 Key intangible resources .............................................................. 80 Sustainability Statement .............................................................. 81 Proposed distribution of earnings ......................................... 191 Events after the financial period ............................................ 191 Glossary ................................................................................................ 192 ===== SIDA 39 ===== Nordea Annual Report 2025 38 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Key events of the year Financial highlights 2025 15.7% CET1 ratio 15.5% RoE 6.3bn Operating profit (EUR) 46.0% / 45.0%1 C/I 1) Excluding regulatory fees. Selection of key events 2025 First quarter • Fourth-quarter and full-year results 2024: Nordea shows strength and resilience with good business momentum and high levels of customer activity. • Martin A Persson is appointed Head of Asset & Wealth Management and Petteri Änkilä Head of Large Corpo- rates & Institutions. Snorre Storset steps down from the Group Leadership Team and as Head of Asset & Wealth Management. • Nordea is awarded IFR’s highly prestigious Yankee Bond of the Year for the USD AT1 issued in September 2024. • Group Business Support is divided into two new units: Group Technology and Group Business Support headed by Kirsten Renner and Mads Skovlund Pedersen, respec- tively. Erik Ekman steps down from the Group Leadership Team and as Head of Group Business Support. • Nordea completes its share buy-back programme of EUR 250m announced in October 2024 and launches a new share buy-back of EUR 250m. • The Annual Report is published, including for the first time the Sustainability Statement prepared in line with the Corporate Sustainability Reporting Directive. • The Annual General Meeting of Nordea is held on 20 March in Helsinki. Shareholders are also able to follow the meeting via a live webcast. • Dividend distribution: A dividend of EUR 0.94 per share for 2024, an increase of EUR 0.02 compared with 2023. Includ- ing share buy-backs, the total 2024 distribution to share- holders amounted to approximately EUR 1.05 per share, or 10% of the market capitalisation at the end of 2024. Second quarter • First-quarter results: Despite the uncertainty, Nordea performs well in the first quarter, delivering growth in business volumes and continued high profitability. • Nordea completes its share buy-back programme of EUR 250m announced in March and launches a new share buy-back of EUR 250m. Third quarter • Second-quarter results: Solid performance in an extremely volatile quarter. Nordea remains highly profitable. • Board member Risto Murto is appointed to the Board Risk Committee and steps down from the Board Opera- tions and Sustainability Committee. Board member Lars Rohde is appointed to the Board Operations and Sustainability Committee and continues as a member of the Board Risk Committee. • The employee-elected representative Gerhard Olsson steps down from the Board of Directors. Joanna Koskinen replaces Gerhard Olsson on the Board Remuneration and People Committee. • Nordea completes its share buy-back programme of EUR 250m announced in June. Fourth quarter • Third-quarter results: Another very solid quarter for Nordea. This performance clearly highlights the strength of Nordea’s well-diversified business model and struc- turally improved profitability. • Nordea launches a new share buy-back programme of EUR 250m in October and completes it in December. • Erik Ek is appointed Head of Group Business Support and joins the Group Leadership Team. Mads Skovlund Pedersen steps down from the Group Leadership Team and as Head of Group Business Support. • Capital Markets Day: Nordea’s management presents Nordea’s strategic priorities and financial targets for the period 2026–30. Nordea’s strategy is aimed at delivering superior earnings per share growth, driven by profitable, faster-than-market income growth and significant improvements in cost efficiency. • Nordea launches a new share buy-back programme of up to EUR 500m in December. Outlook2 Financial targets for 2030 Nordea targets a return on equity of greater than 15% throughout the period, and significantly higher in 2030, and a cost-to-income ratio excluding regulatory fees of 40–42% in 2030. These targets will be supported by an annual net loan loss ratio of around 10bp and the continuation of Nordea’s well-established capital and dividend policies. Financial outlook for 2026 (new) Nordea expects a return on equity of greater than 15% and a cost-to-income ratio excluding regulatory fees of around 45%. Capital policy A management buffer of 150bp above the regulatory CET1 requirement. Dividend policy Nordea’s dividend policy stipulates a dividend payout ratio of 60–70%, applicable to profit for the financial year. Nordea will continuously assess the opportunity to use share buy-backs as a tool to distribute excess capital. 2) Outlook as of 29 January 2026. ===== SIDA 40 ===== Nordea Annual Report 2025 39 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Financial review 2025 Key figures and ratios 2025 Group results and key ratios 2025 EURm 2025 2024 Chg % Net interest income 7,167 7,594 -6 Net fee and commission income 3,249 3,157 3 Net insurance result 242 253 -4 Net result from items at fair value 1,045 1,023 2 Other income 40 57 -30 Total operating income 11,743 12,084 -3 Total operating expenses excluding regulatory fees -5,289 -5,213 1 Total operating expenses -5,405 -5,330 1 Profit before loan losses 6,338 6,754 -6 Net loan losses and similar net result1 -22 -206 Operating profit 6,316 6,548 -4 Income tax expense -1,476 -1,489 -1 Net profit for the year 4,840 5,059 -4 Cost-to-income ratio, % 46.0 44.1 – Return on equity, % 15.5 16.7 – Diluted earnings per share, EUR 1.39 1.44 -3 Return on assets, % 0.8 0.8 – Equity ratio, % 5.0 5.2 – 1) Includes fair value adjustments to loans held at fair value at Nordea Kredit. Results summary 2025 Total operating income in 2025 was down 3% compared with 2024. Total operating expenses increased to EUR 5,405m. Net loan losses and similar net result decreased to 1bp (6bp). Operating profit was down 4%. Income Net interest income Net interest income decreased by 6%, mainly driven by lower deposit margins as interest rates were down follow- ing policy rate reductions. This was partly offset by the positive contribution from the deposit hedge as well as higher lending and deposit volumes. Lending volumes Loans to the public, excluding repurchase agreements and securities borrowing, were up 3% in local currencies. Lending volumes increased in Personal Banking (1% in local currencies), Business Banking (6% in local curren- cies) and Large Corporates & Institutions (10% in EUR). Deposit volumes Total deposits from the public, excluding repurchase agreements and securities lending, were up 2% in local currencies. Deposit volumes increased in Personal Banking (5% in local currencies) and Business Banking (5% in local currencies) and decreased in Large Corporates & Institutions (3% in EUR). Net fee and commission income Net fee and commission income increased by 3%, mainly driven by higher savings fee income following higher assets under management, higher lending fee income and higher payment and card fee income. This was partly off- set by lower brokerage and advisory fees. Net insurance result Net insurance result decreased by 4%, driven by an increase in claims reserves in Denmark. Net result from items at fair value Net result from items at fair value increased by 2% to EUR 1,045m, mainly driven by solid customer risk management activity focused on foreign exchange and interest rate products. Market-making activities were higher, driven by good activity across different products, especially rates products. Equity method and other operating income Income from companies accounted for under the equity method was EUR -2m, down from EUR 10m. Other operat- ing income was EUR 42m, down from EUR 47m. Expenses Total operating expenses were up 1% compared with 2024. Higher costs were primarily driven by inflation. This was partly offset by active cost management. Staff costs were up 4%. Other expenses were down 6%. Depreciation and amortisation were up 6%. Staff costs and FTEs Staff costs, significant agreements with key management personnel, gender distribution and the number of employ- ees by country are disclosed in Note G8. More information is presented on pages 251–265. Net loan losses and similar net result Loan losses for the full year 2025 were low, reflecting improved macroeconomic conditions, favourable credit portfolio developments, and substantial reductions in management judgement allowances. Net loan losses and similar net result amounted to EUR 22m (1bp) compared with EUR 206m (6bp) in 2024. Individually calculated loan losses amounted to EUR 246m and were driven by low provisions mainly for small and medium-sized companies, average write-offs and limited reversals. Moreover, model releases amounted to EUR 71m, mainly related to stage 2 and stage 3 exposures. Management judgement allowances were reduced by EUR 138m during the year, from EUR 414m to EUR 276m. The reduction was in line with the updated assessment of the credit risk outlook for corporate and retail portfolios and Nordea's sustained resilient credit quality. Overall provisioning levels and coverage decreased during the year following the release of the management judgement allowances and the strengthened collateral position for stage 3 loans. Operating profit Operating profit decreased by 4% to EUR 6,316m, driven by lower total income. Taxes Income tax expense amounted to EUR -1,476m, corre- sponding to an effective tax rate of 23.4%, up from 22.7% in 2024. Net profit and return on equity Net profit decreased by 4% to EUR 4,840m. Return on equity was 15.5% (16.7%). Capital position The CET1 capital ratio was 15.7% at the end of 2025 (15.8% last year), while CET1 capital was EUR 25.1bn (EUR 24.6bn last year). The Group’s total capital ratio was 21.2% and total own funds were EUR 33.9bn at the end of 2025. A description of the capital position is available under “Capital management and new regulations” on pages 53–57 and in the Capital and Risk Management Report at nordea.com. ===== SIDA 41 ===== Nordea Annual Report 2025 40 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Financial review 2025, cont. Nordea’s funding operations Nordea issued approximately EUR 21.5bn in long-term funding in 2025 (excluding Danish covered bonds and long-dated certificates of deposit), of which approximately EUR 12.7bn was issued in the form of covered bonds and EUR 8.8bn as senior debt. Approximately half was issued in Scandinavian currencies, mainly in the form of covered bonds. In addition, Nordea issued EUR 1.7bn in subordi- nated debt. During 2025 Nordea continued to benefit from prudent liquidity risk management in terms of maintaining a diver- sified and strong funding base and a diversified liquidity buffer. Throughout 2025 Nordea Bank Abp remained com- pliant with the liquidity coverage ratio (LCR) requirement in all currencies on a combined basis. Nordea’s liquidity management is presented on pages 273–306. A maturity analysis is presented in Note G10.3 “Maturity analysis” on pages 273–274. For more information, see also Note G11 “Risk and liquidity management" on pages 276–306. Balance sheet 2025 2024 Assets Cash and balances with central banks 38,206 46,562 Loans 392,856 364,613 Interest-bearing securities 79,872 73,464 Shares 39,587 35,388 Assets in pooled schemes and unit-linked investment contracts 70,677 60,879 Derivatives 17,633 25,211 Other assets 15,519 17,238 Total assets 654,350 623,355 Liabilities Deposits by credit institutions 34,131 28,775 Deposits and borrowings from the public 242,874 232,435 Deposits in pooled schemes and unit-linked investment contracts 71,611 61,713 Insurance contract liabilities 33,097 30,351 Debt securities in issue 196,276 188,136 Derivatives 18,078 25,034 Other liabilities 25,864 24,475 Total liabilities 621,931 590,919 Assets Total assets were up by EUR 31bn compared with 2024, mainly due to an increase in “Loans” of EUR 28bn driven by both commercial loans and repo transactions as well as changes in exchange rates. The increase in “Interest-bearing securities” was offset by a decrease in “Cash and balances with central banks”, both driven by liquidity management. The increase in “Assets in pooled schemes and unit- linked investment contracts”, driven by favourable equity markets and net inflows, was offset by a similar increase in “Deposits in pooled schemes and unit-linked investment contracts” on the liability side. Market movements led to a decrease in the fair value of “Derivatives”, and a similar decrease can be seen in “Derivatives” on the liability side. Liabilities Total liabilities were up by EUR 31bn compared with 2024, largely due to an increase in “Deposits and borrowings from the public”, “Deposits by credit institutions” and “Debt securities in issue”, in total EUR 24bn. The increase in “Deposits and borrowings from the public” was driven by higher customer savings and repo transaction volumes, while the increase in “Deposits by credit institutions” and “Debt securities in issue” was mostly driven by liquidity and funding management. The changes to “Deposits in pooled schemes and unit- linked investment contracts” and “Derivates” reflect the changes on the asset side mentioned above. ===== SIDA 42 ===== Nordea Annual Report 2025 41 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Five-year overview Income statement EURm 2025 2024 2023 20221 2021 Net interest income 7,167 7,594 7,451 5,664 4,925 Net fee and commission income 3,249 3,157 3,021 3,186 3,495 Net insurance result 242 253 217 173 – Net result from items at fair value 1,045 1,023 1,014 1,160 1,119 Profit or loss from associated undertakings and joint ventures accounted for under the equity method -2 10 -3 -8 -6 Other operating income 42 47 43 83 87 Total operating income 11,743 12,084 11,743 10,258 9,620 Staff costs -3,234 -3,106 -2,908 -2,793 -2,759 Other expenses -1,441 -1,530 -1,206 -1,108 -1,002 Regulatory fees -116 -117 -316 -322 -224 Depreciation, amortisation and impairment charges of tangible and intangible assets -614 -577 -808 -611 -664 Total operating expenses -5,405 -5,330 -5,238 -4,834 -4,649 Profit before loan losses 6,338 6,754 6,505 5,424 4,971 Net result on loans in hold portfolios mandatorily held at fair value -1 -8 20 -13 83 Net loan losses -21 -198 -187 -36 -118 Operating profit 6,316 6,548 6,338 5,375 4,936 Income tax expense -1,476 -1,489 -1,404 -1,189 -1,105 Net profit for the year 4,840 5,059 4,934 4,186 3,831 1) Ex cluding the following items which affected comparability in 2022: a non-deductible loss from the recycling of EUR 529m in accumulated foreign exchange losses related to operations in Russia and EUR 8m (EUR 6m after tax) in losses on fund investments in Russia, recognised in “Net result from items at fair value”, and EUR 76m (EUR 64m after tax) in credit losses on direct exposure to Russian counterparties, recognised in “Net loan losses”. Balance sheet EURm 31 Dec 2025 31 Dec 2024 31 Dec 2023 31 Dec 2022 31 Dec 2021 Cash and balances with central banks 38,206 46,562 50,622 61,815 47,495 Loans to central banks and credit institutions 10,985 7,025 4,272 5,446 2,392 Loans to the public 381,871 357,588 344,828 345,743 345,050 Interest-bearing securities and pledged instruments 79,872 73,464 68,000 68,226 65,051 Assets in pooled schemes and unit-linked investment contracts 70,677 60,879 50,531 43,639 46,912 Derivatives 17,633 25,211 26,525 36,578 30,200 Other assets 55,106 52,531 39,818 33,282 33,073 Assets held for sale – 95 106 – 180 Total assets 654,350 623,355 584,702 594,729 570,353 Deposits by credit institutions 34,131 28,775 29,504 32,869 26,961 Deposits and borrowings from the public 242,874 232,435 210,062 217,464 205,801 Deposits in pooled schemes and unit-linked investment contracts 71,611 61,713 51,573 44,770 48,201 Insurance contract liabilities 33,097 30,351 27,568 26,110 19,595 Debt securities in issue 196,276 188,136 182,548 179,803 176,365 Derivatives 18,078 25,034 30,794 40,102 31,485 Subordinated liabilities 8,810 7,410 5,720 5,401 6,850 Other liabilities 17,054 17,065 15,708 17,366 21,592 Equity 32,419 32,436 31,225 30,844 33,503 Total liabilities and equity 654,350 623,355 584,702 594,729 570,353 ===== SIDA 43 ===== Nordea Annual Report 2025 42 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Ratios and key figures1 Ratios and key figures, Group 2025 2024 2023 2022 2021 Basic earnings per share, EUR 1.39 1.44 1.37 0.94 0.95 Diluted earnings per share, EUR 1.39 1.44 1.37 0.94 0.95 Share price2, EUR 16.09 10.50 11.23 10.03 10.79 Proposed/actual dividend per share, EUR 0.96 0.94 0.92 0.80 0.69 Equity per share2, EUR 9.47 9.30 8.86 8.46 8.51 Potential shares outstanding2, million 3,434 3,503 3,528 3,654 3,966 Weighted average number of diluted shares, million 3,458 3,505 3,579 3,782 4,025 Return on equity, % 15.5 16.7 16.9 11.8 11.2 Assets under management2, EURbn 478.1 422.0 378.5 358.9 411.3 Cost-to-income ratio, % 46 44 45 50 48 Net loan loss ratio, amortised cost, bp 1 6 5 4 4 Common Equity Tier 1 capital ratio2, 4, % 15.7 15.8 17.0 16.4 17.0 Tier 1 capital ratio2, 3, % 18.4 18.4 19.4 18.7 19.1 Total capital ratio2, 3, % 21.2 21.0 22.2 20.8 21.2 Tier 1 capital2, 3, EURbn 29.4 28.7 26.8 27.2 29.0 Risk exposure amount2, EURbn 160 156 139 145 152 Number of employees (full-time equivalents)2 28,989 30,157 29,153 28,268 26,894 Equity2, EURbn 32.4 32.4 31.2 30.8 33.5 1) F or more information regarding ratios and key figures defined as alternative performance measures, see nordea.com/en/investor-relations/reports-and-presentations/group- interim-reports/. All key ratios reflect Nordea’s continuing operations. 2) End o f the year. 3) Incl uding the result for the year. 4) Incl uding the result for the year adjusted for accrued dividend. Ratios and key figures excluding items affecting comparability, Group 2025 2024 2023 20221 2021 Diluted earnings per share, EUR 1.39 1.44 1.37 1.10 0.95 Cost-to-income ratio excl. regulatory fees, % 45.0 43.1 41.9 44.0 46.0 Return on equity, % 15.5 16.7 16.9 13.8 11.2 1) It ems affecting comparability: see information on page 41. Ratios and key figures, parent company 2025 2024 2023 2022 2021 Return on equity, % 16.9 15.0 17.3 14.1 11.0 Return on assets, % 1.1 1.0 1.2 0.9 0.8 Cost-to-income ratio, % 46 47 46 43 51 Loan loss ratio, bp 2 7 9 -1 -1 Common Equity Tier 1 capital ratio1, 2, % 14.1 16.9 17.4 16.7 17.8 Tier 1 capital ratio1, 2, % 16.8 20.0 20.0 19.3 20.2 Total capital ratio1, 2, % 19.6 23.1 23.1 21.6 22.6 Common Equity Tier 1 capital2, EURm 21,039 21,333 20,355 20,283 22,646 Tier 1 capital2, EURm 25,287 25,447 23,555 23,565 25,777 Risk exposure amount2, 3, EURm 159,715 132,011 125,260 127,299 130,626 1) Incl uding the result for the year. 2) End o f the year. 3) Cr edit risk figures used in calculating the risk exposure amount reflect the finalisation of the Basel III framework (Basel IV), as implemented by Regulation (EU) 2024/1623 (CRR3) effective from 1 January 2025. Comparative figures have not been restated. ===== SIDA 44 ===== Nordea Annual Report 2025 43 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Business area results The Nordea Group’s organisational structure is built around four main business areas: Personal Banking, Business Banking, Large Corporates & Institutions and Asset & Wealth Management. In addition to the business areas, the Nordea Group includes the following Group functions: Chief of Staff Office, Group Business Support, Group Brand, Communication and Marketing, Group Compliance, Group Finance, Group Internal Audit, Group Legal, Group People, Group Risk and Group Technology. Total Nordea Group and business areas EURm Personal Banking Business Banking Large Corporates & Institutions Asset & Wealth Management Group functions Nordea Group Change 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 % Net interest income 3,246 3,435 2,141 2,315 1,295 1,434 291 322 194 88 7,167 7,594 -6 Net fee and commission income 1,225 1,141 613 592 527 530 921 919 -37 -25 3,249 3,157 3 Net insurance result 120 123 29 35 1 0 91 95 1 0 242 253 -4 Net result from items at fair value 71 81 410 404 517 431 48 44 -1 63 1,045 1,023 2 Profit from associated undertakings accounted for under the equity method 2 1 6 6 0 0 -2 -2 -8 5 -2 10 - Other operating income 3 10 31 33 1 -1 0 0 7 5 42 47 -11 Total operating income 4,667 4,791 3,230 3,385 2,341 2,394 1,349 1,378 156 136 11,743 12,084 -3 Total operating expenses -2,381 -2,345 -1,460 -1,394 -940 -923 -615 -566 -9 -102 -5,405 -5,330 1 Net result on loans in hold portfolios mandatorily held at fair value -1 -9 0 1 0 0 0 0 0 0 -1 -8 -88 Net loan losses -26 -77 -4 -131 10 14 -4 0 3 -4 -21 -198 -89 Operating profit 2,259 2,360 1,766 1,861 1,411 1,485 730 812 150 30 6,316 6,548 -4 Cost-to-income ratio, % 51 49 45 41 40 39 46 41 – – 46 44 - Return on allocated equity1, % 16 18 16 17 16 17 32 39 – – 15 17 - Volumes, EURbn Total lending2 180.4 176.4 95.4 88.4 58.5 53.3 13.2 12.3 -1.8 -1.4 345.7 329.0 5 Total deposits2 96.2 90.2 56.4 52.8 51.2 52.8 14.1 12.5 3.8 7.1 221.7 215.4 3 1) E qual to return on equity (RoE) for the Nordea Group. 2) Ex cluding repurchase agreements and securities lending/borrowing agreements. ===== SIDA 45 ===== Nordea Annual Report 2025 44 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Business area results, cont. Personal Banking Total income decreased by 3% year on year, reflecting lower interest income in the lower rate environment. Mortgage volumes grew by 1% in local curren- cies year on year, driven by higher customer activ- ity and increased market share in Sweden. Deposit volumes were up 5% year on year. Net interest income decreased by 6% year on year, driven by lower deposit margins across the Nordics due to rate changes. The lower margins were partially offset by the deposit hedge. Net fee and commission income increased by 7% year on year, mainly driven by higher savings and payments income in Norway and Sweden. Total expenses increased by 2% year on year due to salary inflation and continued investments in technology and risk management in line with the business plan. Total net loan losses and similar net result amounted to EUR 27m (2bp), compared with EUR 86m (5bp) in 2024, reflecting strong port- folio quality. Operating profit decreased by 4% and return on allocated equity (RoAE) decreased to 16% from 18%. The RoAE decrease was driven by changes to the internal model framework, which resulted in higher allocated equity and lower income. Business Banking Total income decreased by 5% year on year as lower deposit income was partly offset by higher volumes and higher net fee and commission income. Net interest income decreased by 8% year on year due to lower deposit margins, driven by reduced policy rates. The lower margins were partly offset by growth in business volumes. Net fee and commission income increased by 4% year on year, driven by higher lending fee income and higher payment and card fee income. These were partly offset by lower income from equity and debt capital market transactions. Net result from items at fair value increased by 1%, driven by higher income from sales of foreign exchange products. Total expenses increased by 5% year on year, driven by strategic investments in key areas, including technology, data and AI, and risk man- agement capabilities. The cost-to-income ratio increased to 45%, compared with 41% a year ago, reflecting lower deposit income. Net loan losses and similar net result amounted to EUR 4m (0bp), down from EUR 130m a year ago. Business Banking maintained a diversified portfolio across segments and countries. Operating profit decreased by 5% year on year, to EUR 1,766m, primarily driven by lower deposit income and higher investment expenditure. Return on allocated equity (RoAE) was 16%, compared with 17% a year ago. Large Corporates & Institutions Total income decreased by 2% year on year, mainly due to a 10% decrease in net interest income, driven by lower interest rates. This was partly offset by higher lending volumes. Net fee and commission income was down 1% year on year, driven by lower corporate finance market activity compared with last year. This was partly offset by strong performance in the sec- ondary equities business, income from asset management products, and lending fee income. Net result from items at fair value increased by 20% due to high customer activity and robust market-making income. Total expenses increased by 2% year on year, driven by strategic investments in several areas, including technology, data and AI. The cost-to- income ratio was 40%. Net loan losses and similar net result amounted to a net reversal of EUR 10m, com- pared with a net reversal of EUR 14m in 2024, reflecting the strong underlying credit quality of the loan book. Operating profit was down 5% year on year at EUR 1,411m. Large Corporates & Institutions continued to exercise solid capital discipline, achieving a return on allocated equity (RoAE) of 16% for the full year. Asset & Wealth Management Total income decreased by 2% year on year, to EUR 1.3bn, mainly driven by lower net interest income. Net interest income was EUR 291m, down 10% year on year, mainly driven by lower interest rates. Lending volumes increased by 7% year on year. Deposit volumes increased by 13%. Net fee and commission income was EUR 921m, flat year on year, as higher AuM offset customer preference for lower-risk and lower- margin products. Net insurance result decreased by 4%, to EUR 91m, mainly due to higher claims for occupational pension products. Net result from items at fair value amounted to EUR 48m, up from EUR 44m in 2024, mainly due to higher return on shareholders’ equity portfolios. Total expenses increased by 9% year on year, mainly due to strategic investments in key areas, including technology, data and AI; and annual salary inflation. Net loan losses and similar net result amounted to EUR 4m, compared with EUR 0m in 2024. Operating profit was EUR 730m, down 10% year on year. The cost-to-income ratio was 46%, compared with 41% in 2024. Return on allocated equity was 32%, compared with 39% a year earlier. ===== SIDA 46 ===== Nordea Annual Report 2025 45 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Other information Share buy-back programme On 16 October 2025 Nordea announced a share buy-back programme of up to EUR 250m, based on the authorisa- tion granted to the Board by the 2025 Annual General Meeting. The programme was launched on 20 October 2025 and completed on 12 December 2025. During that period Nordea repurchased 16,742,235 of its own shares at an average price per share of EUR 14.92. On 16 December 2025 Nordea announced a new share buy-back programme of up to EUR 500m, based on the authorisation granted to the Board by the 2025 Annual General Meeting. The programme commenced on 18 December 2025 and will end no later than 8 May 2026. Issuance of Additional Tier 1 conversion notes Nordea issued NOK 3.5bn and SEK 2.5bn in floating rate Additional Tier 1 (AT1) conversion notes on 27 August 2025 and USD 0.85bn in perpetual reset AT1 conversion notes on 10 September 2025 under its global medium-term note programme. The notes constitute AT1 capital. Nordea issued them in order to maintain its strong capital position and take advantage of favourable market conditions. If the CET1 capital ratio of either Nordea Bank Abp on a solo basis or the Nordea Group on a consolidated basis falls below 5.125%, the notes will automatically be converted into ordinary shares in Nordea in accordance with their terms and conditions. EBA stress test results On 1 August 2025 the European Banking Authority (EBA) published the results of the EU-wide stress test conducted in cooperation with the European Systemic Risk Board, the European Central Bank and the European Commission. The forward-looking analysis covered the period 2025–27 and considered the resilience of financial institutions to adverse economic shocks. The exercise confirmed Nordea’s well-managed risk profile and resilient capital position. The methodology and scenario assumptions used were relatively severe for the Nordic countries in which Nordea operates. Under the severe stress scenario, Nordea’s CET1 capital ratio was estimated to decline from 15.8% at the end of 2024 to a low of 12.2% at the end of 2025. Nordea views the outcome of the 2025 exercise as conservative given its overall risk position. The 2025 EBA stress test outcome is not expected to result in changes to Nordea’s business strategy, risk management or capital strategy. Changes to Board committees and employee representation on the Board of Directors Board member Risto Murto was appointed to the Board Risk Committee and stepped down from the Board Operations and Sustainability Committee. Board member Lars Rohde was appointed to the Board Operations and Sustainability Committee and continues as a member of the Board Risk Committee. Furthermore, employee repre- sentative Gerhard Olsson stepped down from the Board of Directors on 5 September 2025. Pending a replacement for Gerhard Olsson, the employee representatives are: Joanna Koskinen and Jørgen Suo Lønnquist (ordinary members) and Kasper Skovgaard Pedersen (deputy member). Joanna Koskinen replaced Gerhard Olsson on the Board Remuneration and People Committee. Changes to the Group Leadership Team On 1 January 2025 Martin A Persson was appointed Head of Asset & Wealth Management and Petteri Änkilä Head of Large Corporates & Institutions. Snorre Storset stepped down as Head of Asset & Wealth Management. On 1 February 2025 the Group Business Support func- tion was divided into two new units, Group Technology and Group Business Support. Kirsten Renner, Head of Group Technology, was appointed a member of the GLT, and Mads Skovlund Pedersen was appointed Head of Group Business Support and a member of the GLT. The former Group Business Support function was headed by Erik Ekman who stepped down as a member of the GLT and as Head of Group Business Support in connection with the division of the function. Furthermore, on 13 October 2025 Erik Ek was appointed Head of Group Business Support and a member of the GLT. Mads Skovlund Pedersen stepped down as a member of the GLT and as Head of Group Business Support. Closure of Nordea’s operations in Russia In accordance with its strategy, Nordea is focusing on its business in the Nordic region. This has entailed the Group winding down its operations in Russia. The liquidation of the remaining Russian subsidiary is pending finalisation. Legal proceedings Within the framework of normal business operations, Nordea faces a number of operational and legal risks that could result in reputational impacts, fines, sanctions, disputes, remediation costs, losses and/or litigation. Specifically, Nordea faces potential claims related to the provision of banking and investment services and other areas in which it operates. Currently, such claims are mainly related to lending and insolvency situations, vari- ous investment services, and sub-custody and withholding taxation matters. At present, none of the current claims are considered likely to have any significant adverse effect on Nordea or its financial position. See Note G11 “Risk and liquidity management” on pages 276–306 and Note G6 “Provisions” on page 248 for more information. Annual General Meeting Nordea’s 2026 Annual General Meeting will be held as a virtual meeting on Tuesday 24 March 2026. Further infor- mation is presented on page 376 of this Annual Report. Group structure, subsidiaries and foreign branches The main legal structure of the Nordea Group, including its main subsidiaries, is presented on the next page. The parent company has foreign branches in China, Denmark, Estonia, Norway, Poland, Sweden, the United Kingdom and the United States. ===== SIDA 47 ===== Nordea Annual Report 2025 46 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Other information, cont. Main legal structure1 As of 1 January 2026 Nordea Bank Abp Finland Nordea Kredit Realkreditaktieselskab Denmark Nordea Mortgage Bank Plc Finland Nordea Eiendomskreditt AS Norway Nordea Hypotek AB (publ) Sweden Nordea Finans Danmark A/S Denmark Nordea Finance Finland Ltd Finland Nordea Finans Norge AS Norway Nordea Finans Sverige AB (publ) Sweden Nordea Danmark, filial af Nordea Bank Abp, Finland Denmark Nordea Bank Abp, filial i Norge Norway Nordea Bank Abp, filial i Sverige Sweden Nordea Funds Ltd Finland Nordea Life Holding AB Sweden Nordea Pension, Livforsikringsselskab A/S 2 Denmark Nordea Life Assurance Finland Ltd Finland Nordea Liv Forsikring AS Norway Nordea Livförsäkring Sverige AB (publ) Sweden Nordea Asset Management Holding AB Sweden Nordea Investment Funds S.A. Luxembourg Nordea Investment Management AB Sweden Br anch – Nordea Bank Abp also operates branches in Estonia, Poland, London, New York and Shanghai. Legal entity Holding company 1) Incl uding only active companies. 2) Hel d through the holding company Nordea Pension Holding Danmark A/S. ===== SIDA 48 ===== Nordea Annual Report 2025 47 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Risks and risk management Risk management Maintaining risk awareness and proper risk management in the organisation is an integral part of Nordea’s business strategies. Nordea manages risk through the three lines of defence model. The first line of defence is responsible for risk management and for compliance with the applicable rules in the day-to-day work. The second line of defence is responsible for maintaining and monitoring the implemen- tation of Nordea’s Risk Management and Compliance Risk Management Framework. The third line of defence is responsible for independent assurance and advisory activities related to the Internal Control Framework. A sound risk culture is an integral part of Nordea’s risk management. Nordea fosters a sound risk culture by focusing on: tone from the top, accountability, effective communications, and enforcement and incentives. Furthermore, Nordea has defined clear risk management frameworks, including policies and instructions for all identified material risk types. The Board has overarching risk management responsi- bilities and decides on the Group risk strategy, the Risk Appetite Framework and the Risk Appetite Statement. Moreover, the Board oversees and monitors the imple- mentation of the risk strategy and the Risk Appetite Framework, including breaches of risk appetite, with the support of the Board Risk Committee. The President and Group CEO ensures that the risk strat- egy and the risk management framework decided by the Board are implemented, the necessary practical measures are taken and risks are monitored within the Risk Appetite Statement established by the Board. The President and Group CEO is supported in decision-making by senior management within the Group Leadership Team, including the Chief Risk Officer and the Chief Compliance Officer. Group-wide committees have been established in order to drive coordination within the Group, thus ensuring com- mitment to and ownership of Group-wide prioritisations, decisions and implementation. The composition and areas of responsibility of each committee are established in the Group Board directives or Group CEO instructions for the respective committees. The Internal Control Framework covers the whole Group and ensures effective and efficient operations, adequate identification, measurement and mitigation of risks, prudent conduct of business, sound administrative and accounting procedures, reliability of financial and non-financial information and compliance with applicable laws, regulations, standards, supervisory requirements and Group internal rules. ESG factors are fully integrated into Nordea’s risk management and control frameworks as drivers of the various financial and non-financial risks. Risks and uncertainties Nordea has an effective risk management and oversight framework addressing the existing and emerging risks that it is exposed to. Nordea also manages a risk taxonomy that identifies the universe of risks that it is exposed to. Nordea’s 2025 position on the main taxonomy risks is outlined in the material risk picture. Certain topics repre- sented core 2025 themes where Nordea’s risk response was particularly pronounced: • Assessment and management of evolving geopolitical risks, including trade tariffs, and escalating hybrid war- fare activities, such as sabotage of critical infrastructure and cyber attacks. • The addition of material shadow banking risk. This reflects regulatory attention to this topic and not a change in Nordea’s exposure. • Assessment of potential risks related to artificial intelli- gence and other innovative technologies. This includes how these technologies can materialise through other identified risks that Nordea is exposed to. • Continued focus on IT security and resilience reflecting changes in the risk landscape and the impact of geo- political dislocation. For further information, see “Sustainability Statement” on pages 81–190, Note G11 “Risk and liquidity management” on pages 276–306, Note G6 “Provisions” on page 248 and Note G7.1 “Contingent liabilities” on page 249. Economic uncertainty The Nordic economies are forecast to show steady growth supported by low interest rates and stable inflation. Persistent geopolitical uncertainty, increasing trade barriers and a weak competitive position of core European econo- mies are risks to the economic outlook. These risks include a further escalation in state-sponsored disruptive behaviour, potentially weakening business and consumer confidence. The European economies are particularly vulnerable to the recent shift towards a transactional approach to global trade affecting both exports and supply chains for key inputs, such as rare earths and semiconductors. This also applies to innovative technologies where Europe is seeing a widening gap to the US and China. Large public deficits will make it difficult for many European countries to hon- our their commitment to increased defence spending, which could otherwise support economic activity and increase security. These vulnerabilities and the threat of sector-specific state intervention, for example within the pharmaceuticals and green energy industries, could also affect the Nordic countries and feed through to Nordea’s credit portfolio, resulting in losses. Lastly, potential adverse impacts on income could arise due to financial market volatility, further reductions in interest rates and reduced transaction volumes and customer activity. Potential future credit risks are addressed in Note G11 “Risk and liquidity management” on pages 276–306. ===== SIDA 49 ===== Nordea Annual Report 2025 48 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Risks and risk management, cont. Material risk picture 2025 Material risk areas Areas of focus 2025 in review Credit risk 83% of REA • Solid underwriting practices and business selection support a well-diversified and stable credit portfolio • Sectors and customers vulnerable to both unexpected weaknesses in demand and disruptions from innovative technologies • Improved credit book reflecting recovery in Nordic economies with lower inflation and interest rates • The US tariff hikes and geopolitical tensions create uncertainty and downside risks to the economic outlook Market risk 3% of REA • Customer-focused service backed by streamlined, low- risk operations • Predominance of floating-rate lending exposes net interest income to lower interest rates, but floors protect against severe downside • Deposit hedging mitigates impact of lower rates on net interest income • Reliability and delay of economic data due to US government shutdowns • Stable markets following short-term volatility after US tariff announcements in Q2 • Geopolitical uncertainty and US tariff hikes closely monitored as they may necessitate deeper rate cuts, impacting Nordea’s earnings outlook Liquidity risk Liquidity coverage ratio 171% • Securing strong credit rating and management of a well-diversified funding profile across all markets • Strong and stable liquidity position comprised of high- quality marketable assets maintained throughout the year • Stable funding markets and strong demand for Nordea issuances • Strong core market deposit performance • Well-diversified franchise Operational risk (includes compliance risk) 13% of REA • Accelerated investments in cyber security and resilience • Strengthening customer protection through enhanced fraud prevention and financial crime risk management capabilities • Deteriorating geopolitical situation and rapid technology innovation contribute to the external threat landscape • Continued dialogue and actions taken towards stronger financial sector preparedness across the Nordics Model risk • Focus on and investment in improved modelling capability continues to contribute to reduced model risk • Management of AI model risk • Improved risk profile due to implementation of retail capital and provision models. A first set of remediation actions to limitations shared by the ECB submitted in August. New non-retail capital models submitted for regulatory approval in April Capital risk CET1 ratio 15.7% • Maintenance of solid capital position through organic capital generation • Diversified pan-Nordic business strategy with leading market position supported by attractive products and digital offerings • Efficient use of capital with excess capital distributed through share buy-backs while maintaining a prudent buffer above requirements • Increasing capital requirements (+0.2 pp) due to Finnish decision to fully reciprocate Norwegian systemic risk buffer • Basel IV requirements successfully implemented ===== SIDA 50 ===== Nordea Annual Report 2025 49 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Macroeconomy and financial markets Economic Outlook The global economy demonstrated resilience in 2025 amid more accommodative financial conditions, rising AI invest- ments and reduced uncertainty around the international trade climate from the middle of the year. Global growth thus largely stagnated compared with the previous year. Growth picked up in the eurozone while remaining stable in China and declining in the US. Survey data points to continued stable global growth in 2026 driven by the service sector, while the outlook for the manufacturing sector remains weak owing to continued political uncer- tainty and subdued world trade in general. Inflation came down in 2025, averaging 2.1% in the euro area and 2.7% in the US – although higher tariff rates lifted inflation from April onwards. The European labour market remained strong, while there were signs of emerg- ing weakness in the US. The European Central Bank (ECB) reduced its deposit facility rate from 3.0% to 2.0% in 2025. The Federal Reserve cut its target rate from 4.5% to 3.75% in 2025. While the ECB continued to reduce its financial asset hold- ings during the year, the Federal Reserve announced an end to quantitative tightening on 1 December. Volatility was high in financial markets in the first half of 2025 amid changes to US tariff policies. However, as trade deals were concluded between the US and its major trading partners, markets calmed down supported by monetary policy easing. The S&P 500 Index increased 16.4% over the year and the STOXX Europe 600 Index was up 16.7%, while the NASDAQ OMX Nordic 120 rose 5.4%. The EUR strengthened 13% against the USD. Economic growth varied across the Nordics. The outlook remains uncertain amid ongoing geopolitical tensions. Denmark The Danish economy expanded further in 2025. Manufacturing production increased especially within the pharma- ceutical sector. The labour market remained strong, and employment reached new record highs. Average headline inflation increased to 1.9%, partly driven by higher food prices. Average housing prices increased – but with large regional differences. During the year Danmarks Nationalbank reduced its deposit rate from 2.6% to 1.6%, in line with the decisions of the ECB, to defend its fixed exchange rate policy. Finland Finland’s economy stagnated in 2025 and the near-term outlook remains mod- est. Housing transactions are increasing although home prices have continued to decline and residential construction remains weak. Average HICP inflation stood at 1.8% in 2025. Private consumption remained weak as poor con- sumer confidence and increasing unemployment kept the household savings ratio elevated. Despite global uncertainty, the export sector is performing well, and business investments remain resilient. Norway Economic activity in mainland Norway picked up in 2025. Registered unemploy- ment was fairly stable and ended the year at 2.1% – the same level as in the summer of 2024. Inflation, which came down in 2023 and 2024, stabilised in 2025. Both headline and underlying inflation (excluding energy and taxes) averaged around 3.0%. Norges Bank cut its key policy rate from 4.5% to 4.0% during the year. Housing prices increased by 5.0%. The NOK held steady against the EUR but strengthened against the USD. Sweden The Swedish economy started to recover in 2025. Exports showed steady growth, and domestic demand gained traction during the year. Inflation (CPIF) averaged 2.6% – somewhat above the 2% target. Demand for labour remained modest and the unemployment rate averaged 8.8%. Housing prices had a soft patch and were down 9% in December 2025 from their peak in February 2022. The central bank cut its policy rate from 2.50% to 1.75% and continued to reduce its balance sheet. The trade- weighted Swedish krona index (KIX) strength- ened by 8.8%. ===== SIDA 51 ===== Nordea Annual Report 2025 50 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other The Nordea share and external credit ratings Nordea’s market capitalisation at the end of 2025 was EUR 55.2bn (EUR 36.8bn). Ranked by market capitalisation, Nordea was the fifth-largest company in the Nordic region and among the fifteen largest European financial groups. Nordea’s shares are listed on the Nasdaq stock exchanges in Helsinki, Stockholm and Copenhagen, and its American Depository Receipts (ADR) are traded in the US in US dollars. Dividend paid in 2025 On 20 March 2025 Nordea’s Annual General Meeting authorised the Board to decide on a dividend payment of a maximum of EUR 0.94 per share based on the annual accounts adopted for the financial year ended 31 December 2024 in accordance with the proposal of the Board of Directors. In accordance with the mandate received from the Annual General Meeting, the Board decided on the pay- ment of an ordinary dividend in a single instalment of EUR 0.94 per share to shareholders. The dividend was paid to shareholders who on the record date for the dividend on 24 March 2025 were recorded in the company’s sharehold- ers’ register maintained by Euroclear Finland Oy in Finland, Euroclear Sweden AB in Sweden and VP Securities A/S in Denmark. The dividend payment date was 31 March 2025. Total shareholder return 2025 Total shareholder return (TSR) is the market value growth per share and reinvested dividends. Since the repositio- ning of Nordea in 2019, total shareholder return has amounted to over 320%. During 2025 Nordea paid out dividends of EUR 0.94 per share and bought back 68.9 million shares. Nordea’s total shareholder distributions amounted to around EUR 4.2bn in 2025. Share buy-backs In line with its capital and dividend policy, Nordea continu- ously assesses the opportunity to use share buy-backs as a tool to distribute excess capital. The purpose of such share buy-backs is to maintain an efficient capital structure and improve shareholder returns. On 17 October 2024 Nordea announced a share buy- back programme of up to EUR 250m, to be carried out in accordance with the authorisation granted to the Board by the 2024 Annual General Meeting. From 21 October 2024 to 20 February 2025, Nordea repurchased 22,699,348 of its own shares at an average price per share of EUR 11.01. On 6 March 2025 Nordea announced a further share buy-back programme of up to EUR 250m, to be carried out in accordance with the authorisation granted by the 2024 Annual General Meeting. From 10 March 2025 to 22 May 2025, Nordea repurchased 21,011,951 of its own shares at an average price per share of EUR 11.89. On 12 June 2025 Nordea announced a further share buy-back programme of up to EUR 250m, to be carried out in accordance with the authorisation granted to the Board by the 2025 Annual General Meeting. From 16 June 2025 to 19 September 2025, Nordea repurchased 19,292,616 of its own shares at an average price per share of EUR 12.95. On 16 October 2025 Nordea announced a further share buy-back programme of up to EUR 250m, to be carried out in accordance with the authorisation granted to the Board by the 2025 Annual General Meeting. From 20 October 2025 to 12 December 2025, Nordea repurchased 16,742,235 of its own shares at an average price per share of EUR 14.92. On 16 December 2025 Nordea announced a further share buy-back programme of up to EUR 500m, to be carried out in accordance with the authorisation granted to the Board by the 2025 Annual General Meeting. The programme commenced on 18 December 2025 and ends no later than 8 May 2026. The shares acquired under all these programmes were repurchased otherwise than in proportion to the share- holdings of Nordea's shareholders (directed repurchases) in public trading, and the repurchased shares were cancelled on a monthly basis. The total price paid for own shares acquired under Nordea’s share buy-back programmes during the financial year ended 31 December 2025 (68,888,643 shares in total, corresponding to 1.97% of all shares in Nordea as at 1 January 2025) amounted to approximately EUR 896m, with an average price of EUR 13.01 per share. Share price performance In 2025 the Nordea share price appreciated by approxi- mately 53% on the Nasdaq Helsinki exchange from EUR 10.50 to EUR 16.09. The daily closing prices listed for the Nordea share in 2025 ranged between EUR 10.12 and EUR 16.09. In 2025 the Nasdaq OMXH index appreciated by approximately 30% and the STOXX Europe 600 Banks index appreciated by approximately 67%. Since 6 March 2000, the date of the merger between Merita Nordbanken and Unidanmark, the Nordea share has appreciated by 297%, clearly outperforming the STOXX Europe 600 Banks index (+6%) and the Nasdaq OMXH index (-33%). Total shareholder returns Nordea vs Nordic peers (indexed): 2019 to 2025 60 130 200 270 340 410 480 2019-09 2020 2021 2022 2023 2024 2025 Nordea, 321.9% Peer 3, 173.7%Peer 1, 371.2% Peer 4, 275.6%Peer 2, 227.2% Peer 5, 149.4% OMX Copenhagen 25 Index, 80.5%OMX Stockholm 30 Index, 121.9% OMX Helsinki 25 Index, 89.3% Source: Refinitiv DataStream. Nordea’s share price can be monitored at nordea.com, where it is also possible to compare the performance of the Nordea share with competitors and general indices as well as find historical prices for the Nordea share. Nordea share price performance compared with European banks, 2000–2025, % 0 50 100 150 200 250 300 350 400 25242322 21 20 19 181716 151413 12 11 10 09 08 07 06 05 04 03 02 01 00 Nordea STOXX Europe 600 Banks index Source: Macrobond and Nordea. Turnover – the most liquid Nordic bank share Turnover on all exchanges combined totalled EUR 44.5bn in 2025. 63% of the total volume traded in Nordea shares in 2025 took place over Nasdaq, of which approximately 23% was SEK-denominated, 37% EUR-denominated and 3% DKK-denominated. The remaining 37% of the traded volume took place over other exchanges such as Cboe European Equities, Turquoise and Aquis. Nordea share, annual turnover on different stock exchanges 2025 Nasdaq Helsinki, 36.9% Cboe Europe, 26.7% Nasdaq Copenhagen, 2.7% Turquoise, 3.3% Nasdaq Stockholm, 23.4% Aquis, 4.7% Others, 2.3% 1) Nas daq exchanges from 2000. Other exchanges from 2010. ===== SIDA 52 ===== Nordea Annual Report 2025 51 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other The Nordea share and external credit ratings, cont. Turnover of the Nordea share on stock exchanges, 2000–2025 1 0 5 10 15 20 25 30 35 40 45 25242322 21 20 19 181716 151413 12 11 10 09 08 07 06 05 04 03 02 01 00 Nasdaq Other exchanges EURbn Year Source: Nasdaq, Fidessa, SIX Financial Information. Share and voting rights Nordea’s Articles of Association do not contain any provisions on share classes or voting rights. Consequently Nordea has one class of shares and all shares in Nordea are ordinary shares. Each share confers one vote at Nordea’s general meet- ings as well as an equal right to any dividend. On 31 December 2025 the total number of shares in Nordea was 3,433,841,245. See also “Statement of changes in equity” on page 197. There are no restrictions in the Articles of Association regarding the right to transfer shares and Nordea is not aware of any agreements between shareholders in this respect. However, as Nordea is a credit institution, a direct or indirect acquisition of shares in Nordea which results in the acquirer’s total holdings being considered qualified holdings (representing 10% or more of the equity capital or of the vot- ing rights, or a holding that otherwise enables the acquirer to exercise a substantial influence over the management of Nordea) or an increase in qualified holdings may only occur following approval by the Finnish Financial Supervisory Authority according to the Finnish Act on Credit Institutions. Under the Single Supervisory Mechanism, the European Central Bank is the authority that ultimately decides (in cooperation with the Finnish Financial Supervisory Authority) whether to approve an acquisition of a qualifying holding in Nordea as Nordea is subject to the direct super- vision of the European Central Bank. On 31 December 2025 BlackRock was the largest individ- ual shareholder with a holding of 5.5%. Nordea has no shareholders with holdings of more than 10%. A table show- ing the largest registered shareholders in Nordea as at the end of 2025 is provided on this page. On 31 December 2025 employees had an indirect share- holding of 0.7% in Nordea through the Nordea Profit- Sharing Foundation and a minor indirect shareholding in Nordea through the pension foundation. The voting rights are in neither case exercised directly by the employees. For information on share-based payment plans, see Note G8 “Employee benefits and key management personnel remuneration” on pages 251–265. Share capital The share capital of Nordea amounts to EUR 4,049,951,919. AT1 conversion notes and special rights entitling to shares The AT1 conversion notes issued in 2019, 2021, 2024 and 2025 by Nordea Bank Abp automatically convert into an aggregated maximum number of 194,099,378, 121,802,679, 160,642,952 and 133,314,074, respectively, newly issued Nordea shares if the CET1 ratio of either Nordea Bank Abp on a solo basis or the Nordea Group on a consolidated basis falls below 5.125%. The notes will be convertible into shares at a price not exceeding a specific nominal amount applica- ble to the respective notes, subject to adjustments. Upon conversion of the notes into shares, Nordea’s exist- ing shareholders have preferential rights to all newly issued Nordea shares. Nordea has no convertible bonds in issue that provide holders with an option to acquire shares in Nordea. Share issue resolutions The 2025 Annual General Meeting resolved that Nordea, before the end of the 2026 Annual General Meeting, may transfer own shares in the ordinary course of its securities trading business as a credit institution, with deviation from the shareholders’ preemptive rights, by way of a directed share issuance. The facilitation of the company’s securities trading business, in which the ability to trade also in own shares is required, is a weighty financial reason for a directed issue. The number of own shares to be transferred may not exceed 175,000,000 shares. The 2025 Annual General Meeting further authorised the Board to resolve, on one or several occasions, on the issuance of special rights entitling to either new shares in the company or treasury shares against payment (convertibles) in accord- ance with or in deviation from the shareholders’ preemptive subscription rights. The maximum number of shares that may be issued based on this authorisation is 340,000,000. Moreover, the 2025 Annual General Meeting authorised the Board to resolve, on one or several occasions, on the issu- ance of new shares or transfer of the company’s own shares of not more than 30,000,000 shares in the company. As at 31 December 2025 Nordea held 13,987,576 shares, 0.4% of the total number of shares in Nordea, a decrease of 3,143,073 shares compared with 31 December 2024. Nordea holds treasury shares partly for capital optimisation and remuneration purposes and partly for trading purposes in its securities trading business. For information on share-based incentive plans, see Note G8 “Employee benefits and key management personnel remuneration“ on pages 251–265. Holding of own shares and share cancellations During 2025 an aggregated amount of 1,213,954 and 916 own shares held by Nordea were transferred without con- sideration to participants in Nordea’s variable remuneration plans in March and May, respectively. During 2025 Nordea cancelled 68,790,718 treasury shares, which were held for capital optimisation purposes and acquired through share buy-backs. See also “Share buy- backs” on page 50, “Events after the financial period” on page 191 and “Statement of changes in equity” on page 197. Shareholders With over 600,000 registered shareholders at the end of 2025, Nordea has one of the largest shareholder bases of all Nordic companies. The number of shareholders in Finland is approximately 353,000, in Sweden approximately 143,000 and in Denmark approximately 103,000. The largest share- holder categories are US and Swedish institutions, with 18.6% and 13.4% holdings of Nordea shares, respectively. At year end Nordic shareholders held 51.9%, while non- Nordic shareholders held 48.1%. Shareholder structure, 31 Dec 2025 Swedish institutions, 13.4% Swedish public, 3.2% Finnish institutions, 6.3% Finnish public, 11.9% Danish institutions, 5.2% Danish public, 2.8% United States, 18.6% Norway, 6.7% Other, 32.0% Largest registered shareholders of Nordea, 31 Dec 2025 Shareholder Number of shares, million Percentage of Nordea BlackRock 190,5 5.5% Norges Bank Investment Management 171,6 5.0% Vanguard 151,2 4.4% Nordea-fonden 139,5 4.1% Cevian Capital 124,9 3.6% Swedbank Robur Fonder 67,4 2.0% SEB Funds 48,4 1.4% Alecta Tjänstepension 47,4 1.4% Amundi 40,1 1.2% Varma Mutual Pension Insurance Company 40,0 1.2% Nordea Funds 35,6 1.0% JPMorgan Asset Management 33,0 1.0% State Street Investment Management 32,0 0.9% Ilmarinen Mutual Pension Insurance Company 28,9 0.8% Handelsbanken Fonder 26,3 0.8% Nordea Vinstandelsstiftelse 24,9 0.7% Fidelity Investments (FMR) 23,9 0.7% DWS Investments 22,3 0.6% Goldman Sachs Asset Management 19,0 0.5% Dimensional Fund Advisors 18,2 0.5% Avanza Pension 17,5 0.5% Government of Japan Pension Investment Fund 17,7 0.5% OP Life Assurance Company Ltd 15,9 0.5% UBS Asset Management 15,8 0.5% Northern Trust Asset Management 14,5 0.4% Other 2,067 60.3% Total 3,434 100% Source: Modular Finance AB ===== SIDA 53 ===== Nordea Annual Report 2025 52 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other The Nordea share and external credit ratings, cont. Distribution of shares, 31 Dec 2025 Distribution of shares Number of shares Shares, % Number of shareholders Shareholders, % 1–1,000 113,313,106 3% 488,230 81% 1,001–10,000 283,474,416 8% 106,917 18% 10,001–100,000 176,572,258 5% 7,803 1% 100,001–1,000,000 184,434,981 5% 654 0% 1,000,001– 2,676,046,484 78% 183 0% Total 3,433,841,245 100% 603,787 100% Share data past 5 years 2025 2024 2023 2022 2021 Share price1 (EUR) 16.09 10.50 11.23 10.03 10.79 High/low (EUR) 16.09/10.12 11.78/10.05 12.11/9.18 11.45/8.19 11.24/6.60 Market capitalisation1 (EURbn) 55.3 36.8 39.6 36.7 42.8 Dividend (EUR) 0.962 0.94 0.92 0.80 0.69 Dividend yield3 (%) 6.0 9.0 8.2 8.0 6.4 STOXX Europe 600 Banks index (%) 66.9 26.0 20.0 -3.2 34.0 P/E (actual) 11.6 7.3 8.2 9.1 11.4 Price-to-book 1.70 1.13 1.27 1.18 1.27 Equity per share (EUR) 9.47 9.30 8.86 8.46 8.51 Earnings per share1 (EUR) 1.39 1.44 1.37 1.10 0.95 Total shares 3,433,841,245 3,502,631,963 3,528,279,508 3,654,281,296 3,965,561,160 1) End of period. 2) Proposed dividend. 3) Dividend yield for 2017 to 2020 calculated at starting price on payment day and for 2021 calculated at price at 30 December 2021. External credit ratings Nordea’s credit ratings are among the strongest of banks globally. The long-term ratings for Nordea are all at the AA level: Standard & Poor’s AA– (stable outlook), Moody’s Aa2 (stable outlook) and Fitch AA– (stable outlook). The short-term ratings are at the highest level: A–1+ from S&P, P–1 from Moody’s and F1+ from Fitch. The covered bond ratings are all Aaa/AAA for the covered bonds issued by Nordea Eiendoms kr editt AS (in Norway), Nordea Hypotek AB (publ) (in S weden), Nordea Kredit Realkreditaktieselskab (in Denmark) and Nordea Mortgage Bank Plc (in Finland). The analysis from the rating agencies is in broad terms focused on credit risks and other risks, profitability, capi- talisation, the strength of the business franchise as well as on the funding profile and liquidity strength. For these areas, the views on Nordea were stable or improved dur- ing the year as the view on diversification strengthened. External credit ratings, 31 Dec 2025 Moody’s Standard & Poor’s Fitch Short Long Short Long Short Long Nordea Bank Abp P–1 Aa2 A–1+ AA– F1+ AA– Senior preferred (SP) issuances Aa2 AA– AA Senior non-preferred (SNP) issuances A2 A AA– Tier 2 (T2) issuances A3 A– A Additional Tier 1 (AT1) issuances BBB BBB+ Nordea Eiendomskreditt AS1 Aaa1 Nordea Hypotek AB (publ)1 Aaa1 Nordea Kredit Realkreditaktieselskab1 AAA1 Nordea Mortgage Bank Plc1 Aaa1 1) Covered bond rating. ===== SIDA 54 ===== Nordea Annual Report 2025 53 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Capital management and new regulations Nordea strives to be efficient in its use of capital and therefore actively manages its balance sheet with respect to different asset, liability and risk categories. The goal is to generate strong shareholder returns while maintaining a prudent capital structure. The Board decides on the targets for capital ratios, the capital and dividend policies and the overall framework of capital management at Nordea. The ability to meet targets to maintain minimum capital requirements is reviewed r egularly by the Asset & Liability Committee and the Risk Committee. Capital and dividend policy Nordea maintains a strong capital position in line with its capital policy. Nordea targets a management buffer of 150bp above the CET1 requirement. This enables efficient capital management, while Nordea still maintains a pru- dent buffer to requirements. The dividend policy is to distribute 60–70% of the net profit for the year to shareholders. Excess capital in relation to capital targets will be used for strategic business acqui- sitions as well as be subject to buy-back considerations. In 2025 Nordea continued its commitment to efficient capital management and launched four share buy-back programmes. Minimum capital requirements The calculation method for the risk exposure amount (REA) is subject to regulatory approval. Nordea had 90% of its credit risk exposure amount covered by the internal ratings-based (IRB) approach by the end of 2025. Nordea is approved to use its own internal value-at-risk (VaR) models to calculate capital requirements for the major portion of the market risk in its trading book. Based on the total REA, Nordea needs to meet the applicable mini mum and combined buffer requirements. In addition, competent authorities require Nordea to hold capital for other risks which are identified and communicated as part of the Supervisory Review and Evaluation Process. Nordea received the Supervisory Review and Evaluation Process decision on 28 October 2025 which maintains the Pillar 2 requirement at 1.60% as decided last year. The Pillar 2 requirement must be met with at least 56.25% of CET1 capital. Internal capital requirement For internal risk and capital assessment purposes, Nordea uses the internal capital requirement (ICR) in line with Article 73 of the Capital Requirements Directive (CRD). The ICR specifies the amount, type and distribution of internal capital considered adequate to cover the nature and level of all risks to which the Group or any of its sub- sidiaries are or might become exposed over a foreseeable future, including during periods of stress. The ICR is one of the main inputs for the Internal Capital Adequacy Assessment Process together with regu- latory views on the required amount of capital as expressed under the regulatory perspective. Nordea defines the ICR as the internal capital require- ment for all material risks from an internal economic per- spective, taking account of the regulatory, normative and through-the-cycle perspective, adequate to withstand periods of stress. This ensures that Nordea’s ICR is aligned with, but not restricted by, the regulatory perspective. Allocated Equity Allocated Equity is a framework to allocate capital held by Nordea to its business areas and is a central component in Nordea’s Value Creation Framework. This framework sup- ports the operational decision-making process at Nordea to enhance performance management and ensure share- holder value creation. Allocated Equity reflects Nordea’s anticipated equity in line with its capital policy to ensure sustainable, long-term capitalisation for the Nordea Group. To further align Allocated Equity to accounting equity, CET1 deductions and other equity items are included in Allocated Equity. The allocated equity remained stable at EUR 32.4bn at the end of 2025. Own funds Own funds comprise the sum of Tier 1 and Tier 2 capital. Tier 1 capital consists of Common Equity Tier 1 (CET1) and Additional Tier 1 capital. CET1 capital is the highest quality form of regulatory capital with full loss absorbency and consists predominantly of paid-in capital and retained earnings. Additional Tier 1 and Tier 2 capital mainly com- prise instruments that meet the applicable regulatory criteria. In 2025 Nordea issued SEK 2,500m, NOK 3,500m and USD 850m of Additional Tier 1 instruments as well as EUR 500m of Tier 2 instruments. Further information – capital adequacy and the Capital and Risk Management Report Further information on capital management and capital adequacy is presented in the Capital and Risk Management Report. On the basis of its consolidated situation, Nordea provides Capital and Risk Management Report disclosures quarterly according to Part Eight of Regulation (EU) No 575/2013 (CRR). The disclosures con- stitute a comprehensive disclosure of risks, risk manage- ment and capital management. It includes disclosures, or references to other disclosures, required under Part Eight of the CRR and by the EBA guidelines and standards on disclosure requirements. Accompanying the Capital and Risk Management Report are the required disclosures for the subsidiaries Nordea Kredit Realkreditaktieselskab, Nordea Hypotek AB, Nordea Mortgage Bank Plc and Nordea Eiendomskreditt AS. The Capital and Risk Management Report is available at nordea.com. The subsidiaries’ disclosures are included as appendices and are published on the same website after the publication date of each subsidiary’s annual report. Country-by-country reporting Further information on country-by-country reporting in accordance with the Finnish Act on Credit Institutions is presented on page 79. ===== SIDA 55 ===== Nordea Annual Report 2025 54 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Capital management and new regulations, cont. Capital requirements and risk exposure amount (REA), Nordea Group EURm 31 Dec 2025 31 Dec 2024 Minimum capital requirement REA Minimum capital requirement REA Credit risk 9,994 124,919 10,109 126,363 – of which counterparty credit risk 204 2,549 288 3,599 IRB 9,013 112,662 9,026 112,822 – corporate 4,782 59,775 4,645 58,065 – advanced 2,965 37,057 4,152 51,905 – foundation 1,817 22,718 493 6,160 – institutions 288 3,597 341 4,257 – retail 3,437 42,958 3,535 44,187 – items representing securitisation positions 282 3,526 277 3,461 – other 224 2,806 228 2,852 Standardised 981 12,257 1,083 13,541 – central governments or central banks 13 158 13 164 – regional governments or local authorities 2 23 2 25 – public sector entities 0 0 0 0 – multilateral development banks – international organisations – institutions 22 273 13 158 – corporate 143 1,788 141 1,759 – retail 185 2,307 212 2,648 – secured by mortgages on immovable property 185 2,311 291 3,640 – in default 14 174 17 211 – subordinated debt exposures 78 976 – covered bonds – institutions and corporates with a short-term credit assessment – collective investments undertakings (CIUs) 176 2,206 178 2,223 – equity 132 1,646 189 2,359 – other items 31 395 27 354 Credit value adjustment risk 36 455 32 396 EURm 31 Dec 2025 31 Dec 2024 Minimum capital requirement REA Minimum capital requirement REA Market risk 413 5,158 427 5,336 – trading book, internal approach 356 4,444 367 4,586 – trading book, standardised approach 57 714 60 750 – banking book, standardised approach Settlement risk 0 0 Operational risk 1,690 21,125 1,430 17,874 Standardised 1,690 21,125 1,430 17,874 Additional risk exposure amount related to Finnish RW floor due to Article 458 CRR Additional risk exposure amount related to Swedish RW floor due to Article 458 CRR 596 7,451 470 5,881 Additional risk exposure amount due to Article 3 CRR 1 44 551 Total 12,773 159,659 12,468 155,850 1) Changed capital treatment, from internal ratings-based (IRB) to standardised approach, of certain portfolios that are not part of the non-retail model application. ===== SIDA 56 ===== Nordea Annual Report 2025 55 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Capital management and new regulations, cont. Capital requirements and risk exposure amount (REA), Nordea Bank Abp (parent company) EURm 31 Dec 2025 31 Dec 2024 Minimum capital requirement REA Minimum capital requirement REA Credit risk 10,941 136,764 8,946 111,821 – of which counterparty credit risk 211 2,638 299 3,736 IRB 6,237 77,958 6,057 75,710 – sovereign – corporate 4,687 58,590 4,349 54,367 – advanced 2,844 35,549 4,155 51,939 – foundation 1,843 23,041 194 2,427 – institutions 283 3,539 334 4,177 – retail 1,117 13,962 1,242 15,519 – secured by immovable property collateral 388 4,846 514 6,423 – other retail 729 9,116 728 9,097 – items representing securitisation positions 27 337 17 212 – other 122 1,530 115 1,435 Standardised 4,705 58,806 2,889 36,111 – central governments or central banks 6 76 6 78 – regional governments or local authorities 0 6 1 7 – public sector entities – multilateral development banks – international organisations – institutions 2,166 27,077 1,107 13,842 – corporate 225 2,813 185 2,307 – retail 11 136 18 231 – secured by mortgages on immovable property 12 145 8 97 – in default 1 19 2 27 – associated with particularly high risk 760 9,498 – covered bonds 56 706 34 424 – institutions and corporates with a short-term credit assessment – collective investments undertakings (CIU) 172 2,145 172 2,146 – equity 1,293 16,165 1,355 16,935 – other items 2 20 1 18 – of which representing securitisation positions Credit valuation adjustment risk 36 455 32 396 EURm 31 Dec 2025 31 Dec 2024 Minimum capital requirement REA Minimum capital requirement REA Market risk 413 5,158 427 5,336 – trading book, internal approach 356 4,444 367 4,587 – trading book, standardised approach 57 714 60 750 – banking book, standardised approach Settlement risk 0 0 0 0 Operational risk 1,240 15,494 1,086 13,574 Standardised 1,240 15,494 1,086 13,574 Additional risk exposure amount related to Finnish RW floor due to Article 458 CRR Additional risk exposure amount related to Swedish RW floor due to Article 458 CRR 109 1,359 71 883 Additional risk exposure amount due to Article 3 CRR 39 486 Total 12,777 159,715 10,561 132,011 ===== SIDA 57 ===== Nordea Annual Report 2025 56 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Capital management and new regulations, cont. Summary of items included in own funds Calculation of own funds, EURm Nordea Group Nordea parent company 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Equity in the consolidated situation 27,574 26,629 23,348 23,219 Profit for the period 4,843 5,062 Accrued dividend -3,284 -3,279 Common Equity Tier 1 capital before regulatory adjustments 29,133 28,412 23,348 23,219 Deferred tax assets -14 -24 Intangible assets -2,840 -2,704 -1,183 -1,050 IRB provisions shortfall (-) -44 -228 -146 -26 Pension assets in excess of related liabilities -256 -271 -128 -173 Other items, net1 -848 -615 -852 -636 Total regulatory adjustments to Common Equity Tier 1 capital -4,002 -3,842 -2,309 -1,885 Common Equity Tier 1 capital (net after deduction) 25,131 24,570 21,039 21,333 Additional Tier 1 capital before regulatory adjustments 4,261 4,138 4,261 4,138 Total regulatory adjustments to Additional Tier 1 capital -13 -25 -13 -25 Additional Tier 1 capital 4,248 4,113 4,248 4,113 Tier 1 capital (net after deduction) 29,379 28,683 25,287 25,447 Tier 2 capital before regulatory adjustments 4,550 4,167 4,550 4,167 IRB provisions excess (+) 10 23 Deductions for investments in insurance companies Other items, net -25 -50 -25 -50 Total regulatory adjustments to Tier 2 capital -25 -50 -15 -27 Tier 2 capital 4,525 4,117 4,535 4,140 Own funds (net after deduction) 33,904 32,800 29,822 29,587 1) Other items, net based on profit inclusion. -854 -615 Capital adequacy ratios, Nordea Group and parent company Percentage Nordea Group Nordea parent company 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Common Equity Tier 1 capital ratio, including profit 15.7 15.8 14.1 16.9 Tier 1 capital ratio, including profit 18.4 18.4 16.8 20.0 Total capital ratio, including profit 21.2 21.0 19.6 23.1 Common Equity Tier 1 capital ratio, excluding profit 14.8 14.6 13.2 16.2 Tier 1 capital ratio, excluding profit 17.4 17.3 15.8 19.3 Total capital ratio, excluding profit 20.3 19.9 18.7 22.4 Own funds and capital ratios (financial conglomerate) 1 31 Dec 2025 31 Dec 2024 Financial conglomerate’s own funds, EURm 36,390 35,057 Own funds requirement of financial conglomerate, EURm 31,456 30,053 Capital adequacy of financial conglomerate (own funds surplus/deficit), EURm 4,935 5,004 Financial conglomerate’s capital adequacy ratio, % 115.7% 116.6% 1) The financial c onglomerate consists of banking and insurance operations. Nordea Life & Pension – solvency II position EURm 31 Dec 2025 31 Dec 2024 Required solvency capital 2,984 2,706 Actual solvency capital 4,458 4,108 Solvency buffer 1,474 1,402 Solvency as % of requirement 149% 152% Nordea Life & Pension – solvency II sensitivity EURm 31 Dec 2025 31 Dec 2024 Solvency as % of requirement 149 % 152 % Equities drop 20% 151 % 163 % Interest rates down 50bp 149 % 150 % Interest rates up 50bp 150 % 153 % ===== SIDA 58 ===== Nordea Annual Report 2025 57 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other New regulations on capital requirements This section highlights recent news and updates on regu- latory developments and capital requirements, mainly related to the Bank Recovery and Resolution Directive (BRRD), the Capital Requirements Directive (CRD) and the Capital Requirements Regulation (CRR). In general, it addresses news deemed relevant from a Nordea Group perspective. For additional details on new regulations and capital requirements, see Nordea’s Capital and Risk Management Report (Pillar 3). The currently applicable version of the CRR is known as CRR3, which is the implementation of the Basel IV stand- ards within the EU. The CRR3 – a major regulatory change applicable from 1 January 2025 – introduces material changes to the credit, market and operational risk frame- works. In addition, an output floor is introduced to restrict the overall REA of banks using internal models, as for example Nordea. The Finnish FSA has reciprocated the risk weight floors applicable to Swedish corporate loans secured by real estate (35% for commercial real estate and 25% for resi- dential real estate). In addition, on 29 September the Finnish FSA reciprocated the risk weight floors applicable to exposures in Norway (35% for commercial real estate and an increase from 20% to 25% for residential real estate) with effect from 1 January 2026. The increase in the residential real estate floor will have no impact on Nordea before the removal of the current regulatory add-ons. On 26 June, as part of its annual macroprudential deci- sion, the Finnish FSA decided to fully reciprocate the Norwegian systemic risk buffer (SyRB) of 4.5% from 1 October 2025 onwards. This followed a decision to par- tially reciprocate the Norwegian SyRB at a level of 3.5% in June 2023. The full reciprocation resulted in an increase of approximately 20bp in Nordea’s CET1 requirement. Nordea does not agree with the decision to increase the Group’s capital requirements in this manner. The Finnish FSA also decided to maintain the 1.0% Finnish SyRB and the 2.5% other systemically important institutions (O-SII) buffer for Nordea. In March 2025 Nordea received the Single Resolution Board’s decision on the updated minimum requirements for own funds and eligible liabilities (MREL). The Group must meet MREL requirements of the sum of 23.64% of the REA and the combined buffer requirement (CBR), and in parallel 7.02% of the leverage ratio exposure (LRE). The Group must also meet subordination requirements of the sum of 20.34% of the REA and the CBR, and in parallel 7.02% of the LRE. However, the amount of the subordina- tion requirement must at no time exceed the amount which corresponds to a value of 27% of the REA including the CBR. CRR3 – transitional arrangements The EU Commission has issued a delegated act postpon- ing the application of the new market risk rules until 1 January 2027 to maintain a level playing field with other jurisdictions. The CRR3 introduces an output floor to be set at 72.5% of the standardised approaches on an aggregate level. This means that the capital requirement is floored at 72.5% of the total Pillar 1 REA calculated using the stand- ardised approaches for credit, market and operational risk. The floor was phased in at 50% on 1 January 2025 and will be fully implemented at 72.5% from 1 January 2030 with transitional rules for the calculation of the REA for the out- put floor extending to the end of 2032. Due to differences across banks, the timing as to when and if the output floor will be a constraining measure may differ. ===== SIDA 59 ===== Nordea Annual Report 2025 58 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Corporate Governance Statement 2025 Corporate governance refers to relations between a company’s senior management, its board of directors, its shareholders and other stakeholders, such as employees and their representatives. It also determines the structure used to define a company’s objectives as well as the means of achieving them and of monitoring the results obtained. Strong corporate governance is thus about having clear and systematic decision-making processes, providing clarity about responsibilities, avoiding conflicts of interest and ensuring satisfactory internal control, risk management, transparency and accountability. Nordea Bank Abp (“Nordea“) is a Finnish public limited liability company and the parent company of the Nordea Group (comprising Nordea and its subsidiaries). Nordea’s shares are listed on the Nasdaq stock exchanges in Helsinki, Stockholm and Copenhagen, and its American Depository Receipts (ADR) are traded in the US in US dollars. As part of its funding operations, Nordea issues long-term debt instruments that are usually listed on various stock exchanges. Nordea is subject to and applies the Finnish Corporate Governance Code (the “Code“)1. All the recommendations of the Code are complied with, apart from the appointment procedure for the employee-elected Board members (the Code, Recommendation 5), as described further below. This Corporate Governance Statement describes Nordea’s approach to the key elements of corporate governance and is prepared in accordance with the legal requirements of the Finnish Act on Credit Institutions, the Finnish Accounting Act, the Finnish Securities Market Act, the Decree of the Ministry of Finance on the obligation of securities issuers to disclose periodic information and the Code 2. Nordea’s Corporate Governance Statement is available at nordea.com and the Code is available at https:// cgfinland.fi/en/corporate-governance-code/. 1) The ne w Finnish Corporate Governance Code 2025 entered into force on 1 January 2025, replacing the previous Corporate Governance Code 2020. 2) Nordea complies with the Code of its domicile as well as other applicable governance rules and regulations, and this Corporate Governance Statement is prepared in accordance with these requirements. The Code deviates in certain aspects from the Swedish Corporate Governance Code (the “Swedish Code”) available at corporategovernanceboard.se and the Danish Recommendations on Corporate Governance (the “Danish Code”) available at corporategovernance.dk due to differences in legislation and corporate governance rules and practices. Nordea deviates from the Swedish Code in terms of decision proposals of the nomination committee, independence of the Board Remuneration and People Committee members and by having the possibility of holding virtual shareholder meetings. With regard to the Danish Code, Nordea deviates in certain aspects from the Code in terms of the appointment of an audit committee chair, management remuneration and performance evaluation of the board of directors as well as recommendations regarding takeover bids, corporate social responsibility and tax policy. Nordea also deviates in certain aspects regarding the overall tasks and responsibilities of the board of directors, with respect to the company’s purpose, value creation as well as share and capital structure and the annual review of guidelines for the executive management. Nordea further devi- ates in certain aspects regarding the composition of the board of directors and disclosure about individual board members in the management commentary. Corporate governance structure The corporate governance of Nordea is comprehensive and proportionate with respect to the nature, scope and diversity of Nordea’s operations to ensure effective manage men t in accordance with the prudent conduct of busine ss principles. The Board is responsible for overseeing the administra- tion and appropriate organisation of Nordea’s operations, while the President and Group CEO is responsible for the executive management of Nordea. The main emphasis is on the Board undertaking its role in Nordea’s corporate governance structure and the interaction with the other governing bodies to ensure sound corporate governance, including systems for internal control and risk manage- ment as well as financial reporting. Corporate governance and the duties of the governing bodies of Nordea are defined by the applicable internal and external frameworks. The external framework that regulates corporate governance includes EU law, such as Directive 2013/36/EU (CRD IV), Regulation (EU) No 575/2013 (CRR), Directive 2014/65/EU (MiFID II) and Regulation (EU) No 600/2014 (MiFIR), as well as rules and guidelines issued by the relevant financial supervisory authorities, such as the EBA Guidelines on Internal Governance and the Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function hold- ers, as well as national level laws, including the Finnish Companies Act, the Finnish Act on Credit Institutions, the Finnish Accounting Act and the relevant regulations and guidelines of the Finnish Financial Supervisory Authority (FIN-FSA). Nordea also complies with rules and guidelines issued by other relevant financial supervisory authorities as well as EU legislation for the financial industry, stock exchange rules for each relevant stock exchange and the rules and principles of the Code. The Board has adopted instructions for the President and Group CEO specifying the responsibilities of this role as well as other charters, policies and instructions for the operations of the Nordea Group. Furthermore, Nordea’s Code of Conduct provides an ethical framework for the conduct of all members of governing bodies and employ- ees. These mechanisms, together with the Articles of Association, the Charter (as defined below) and the Committee Charters (as defined below), as well as other applicable directives, instructions, protocols and proce- dures of the Nordea Group constitute the internal frame- work that regulates corporate governance at Nordea. The internal framework is designed to enable the prudent conduct of business by defining the powers and responsibilities of the corporate bodies and employees. For more information on the directives, instructions, proto- cols and procedures in the internal framework, see “Sustainabilty Statement" on pages 81–190. ECB supervision and governance Nordea is supervised by the European Central Bank (ECB) and the FIN-FSA (Single Supervisory Mechanism/SSM), and its branches and subsidiaries are supervised by the financial supervisory authorities in their respective coun- tries, as applicable. Under ECB supervision, Nordea is sub- ject to the same banking supervision and single resolution mechanisms as the majority of other European banks in the eurozone. The authority interaction function at Nordea is Corporate governance structure External Audit (12) General meetings of shareholders (1) Shareholders’ Nomination Board (2) Group Compliance (10) Group Internal Audit (11) Internal framework Articles of Association, the Group Board and Group Board C ommittee charters, the mandate of the President and Group CEO and Nordea’s Internal Control Framework, including Group internal rules, Risk Managemen t Framework, risk culture and strategy External framework Legislation, regulation, best practice, stock exchange rules, corporate governance code Group Risk (9) President and Group CEO supported by the Group Leadership Team (8) Board Remuneration and People Committee (6) Board Operations and Sustainability Committee (7) Board Risk Committee (5)Board Audit Committee (4) Elected / appointed by Reporting to / informing Board of Directors (3) Numbers in brackets refer to the numbered sections below on pages 60–71. ===== SIDA 60 ===== Nordea Annual Report 2025 59 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Corporate Governance Statement 2025, cont. placed in Group Legal, which acts as the single point of contact and the coordinator for supervisory requests and interactions, to enable coordinated and consistent commu- nication between Nordea and its supervisors. Nordea uses standardised practices to process supervisory requests and on-site inspections, including a case management system where all interactions are documented. The Group Leader- ship Team (GLT) and the relevant committees receive authority interaction reports on a regular basis. The Board is informed about key authority interactions, including super- visory review and evaluation process decisions and on-site inspection reports. Furthermore, the Board oversees key supervisory remediation programmes and approves the remediation action plans required by the ECB. ESG governance In compliance with relevant legal requirements and supervisory expectations, Nordea has a comprehensive approach to ESG governance. ESG factors, serving as potential drivers of financial and non-financial risks, have been embedded in the Group’s risk management frame- work as well as in its overall strategy through strategic sustainability priorities. ESG factors are considered significant potential drivers of traditional financial and non-financial risk categories, including credit, market, liquidity, capital, compliance and operational risks. To ensure robust governance of these risks, Nordea has integrated ESG factors into the Group’s risk management framework. Each risk type, as included in the Nordea Common Risk Taxonomy, has its own dedicated risk management framework in which ESG factors are included. Nordea’s approach to ESG governance is explained below, with a brief overview of relevant respon- sibilities. For more information, see “Sustainability Statement” on pages 81–190. The Group Board, assisted by its committees, is ulti- mately responsible for ensuring that an adequate and effective system of internal control is established and maintained, including for risks driven by ESG-related factors. The Board approves the Group strategy annually, where sustainability is embedded, and has ESG oversight responsibilities encompassing governance, strategy, target setting and operationalisation. At management and management committee level, ESG-related considerations are integrated into the existing processes for decision-making, risk management and control, and escalation. The Group CEO is accountable to the Board for managing the Group’s operations and organisation, works closely with the Board Chair to plan Board meetings and is responsible for developing and maintaining effective systems for reporting and internal control within the Group. The Chief of Staff is accountable for the development of the Group’s strategic sustainability priorities and the analysis of emerging topics, ensuring that the Group’s sustainability agenda remains aligned with developments in the business environment and the Group’s long-term net zero commitment. The relevant policy framework owner in the second line of defence is responsible for ensuring that relevant requirements are reflected in Nordea’s Sustainability and ESG Policy Framework and for coordinating oversight of the policy framework requirements. The responsible second line of defence unit oversees the cascading of the Sustainability and ESG Risk Policy Framework require- ments within the first and second lines of defence. Risk areas, within the scope of their existing oversight responsi- bilities, oversee the alignment of business area and Group function strategies to the Group strategy and risk appetite. Lastly, the first line of defence is responsible for managing sustainability and financial impacts and complying with applicable rules in the course of day-to-day business. Division of powers and responsibilities The management and control of Nordea is divided among the shareholders (at general meetings), the Board and the President and Group CEO, pursuant to the provisions of the external framework, the Articles of Association and the internal framework set forth by the Board. General meetings of shareholders (1) The Annual General Meeting is Nordea’s highest decision- making body at which shareholders participate in the supervision and control of Nordea through their voting rights and right to speak. Applicable regulations and the Articles of Association of Nordea determine the matters to be dealt with at a general meeting. At the general meetings, decisions are taken regarding matters such as the financial statements, dividend, election of Board members, the auditor and the sustainability reporting assurer as well as remuneration for Board members, the auditor and the sustainability reporting assurer. In accord- ance with applicable laws and regulations, the Remuneration Policy for Governing Bodies and the Remuneration Report for Governing Bodies are presented and adopted through an advisory vote at the general meeting. The Remuneration Policy for Governing Bodies and the Remuneration Report for Governing Bodies are available at nordea.com. General meetings are usually held in Helsinki. The 2025 Annual General Meeting was held on 20 March 2025 at Finlandia Hall in Helsinki. According to Nordea’s Articles of Association, general meetings may also be held without a meeting venue, so-called virtual meetings, as an alterna- tive to physical or hybrid meetings. Information on the decisions of the 2025 Annual General Meeting and the minutes are available at nordea.com. The 2026 Annual General Meeting will be held virtually on Tuesday 24 March 2026. Voting rights Nordea’s Articles of Association do not contain any provi- sions on share classes or voting rights. Consequently, all shares issued are ordinary shares and carry equal voting rights, with each share carrying one vote at general meet- ings. At general meetings, each shareholder is entitled to vote according to the full number of shares they hold or represent. Nordea is not entitled to vote on its own shares at general meetings under applicable legislation. More information about the Nordea share is presented in “The Nordea share and external credit ratings” on pages 50–52 and in “Financial review 2025” on pages 39–40. Articles of Association The Articles of Association are available at nordea.com. Amendments to the Articles of Association are determined by the general meeting pursuant to Finnish law and are subject to the review of the Finnish Financial Supervisory Authority. Shareholders’ Nomination Board (2) Pursuant to the Finnish Act on Credit Institutions, a signifi- cant credit institution must have a nomination committee that consists of board members or a shareholders’ nomi- nation board that consists of members appointed by the shareholders. The Annual General Meeting held in 2019 decided to establish a permanent Shareholders’ Nomination Board. According to its Charter, the Shareholders’ Nomination Board is to prepare, annually and otherwise when appropriate, proposals for the Annual General Meeting for the election of and remuneration for the Chair and members of the Board and present the proposals to the Annual General Meeting. The Share- holders’ Nomination Board must also participate in the evaluation and succession planning of the Board and in its work consider the diversity policy of Nordea as well as perform certain other tasks assigned in its Charter. The Shareholders’ Nomination Board consists of the Chair of the Board of Directors and the four largest share- holders who on 30 April represent the largest number of voting rights in Nordea and wish to participate in the work of the Nomination Board. The composition of the Shareholders’ Nomination Board was made public on 14 May 2025. Nordea-fonden had appointed Lars Ingemann Nielsen, Cevian Capital had appointed Niko Pakalén, Alecta had appointed Daniel Kristiansson, and Varma Mutual Pension Insurance Company had appointed Timo Sallinen as members of the Shareholders’ Nomination Board. Niko Pakalén had been appointed Chair of the Shareholders’ Nomination Board. On 30 April 2025 the appointed members of the Shareholders’ Nomination Board represented approxi- mately 10.7% of all shares and votes in Nordea. Succession planning and process for proposing Board members for election by the Annual General Meeting In order to ensure orderly Board member succession, the Shareholders’ Nomination Board works with a succession pipeline on an ongoing basis consisting of prospective Board member candidates, taking into account the skills needed on the Board as a whole and on the various committees of the Board. ===== SIDA 61 ===== Nordea Annual Report 2025 60 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Corporate Governance Statement 2025, cont. The Shareholders’ Nomination Board evaluates the recruitment needs and, if needed, starts the process for proposing new Board members. The Shareholders’ Nomination Board can employ, at Nordea’s expense, a recruitment consultant and other external resources needed for the Shareholders’ Nomination Board to perform its duties. As part of the evaluation of recruitment needs, the Chair of the Board provides input on the competencies and skills needed for the Board and identified potential competen- cies and skills gaps. The Shareholders’ Nomination Board is also presented with the results of the Board’s annual self-evaluation and suitability assessment. The process for proposing new Board members normally starts with the Shareholders’ Nomination Board deciding on a shortlist of prospective candidates. The profiles and qualifications of these prospective candidates are assessed and interviews with the candidates are arranged. As part of the process, the President and Group CEO may be offered the possibility to give views on needed Board member skills and profiles and to meet with the Board candidates. The Shareholders’ Nomination Board proposals on the number of Board members and on the election of the Chair of the Board and the members of the Board for the Annual General Meeting are published in a stock exchange release and on Nordea’s website. The proposals must be made in such time that they can be included in the notice of the Annual General Meeting. The proposals are presented at the Annual General Meeting. Prior to the 2026 Annual General Meeting, the Shareholders’ Nomination Board, constituted in the spring of 2025, held five meetings. Each member participated in all the meetings and decision-making of the Shareholders’ Nomination Board apart from the Chair of the Board, who did not participate in the preparation or decision-making where he had a conflict of interest. Members of the Shareholders’ Nomination Board Niko Pakalén, Chair of the Shareholders’ Nomination Board Master of Science (Economics) Born 1986 Gender: Male Partner, Cevian Capital Lars Ingemann Nielsen Master of Science (Mathematical Finance and Economics) Born 1961 Gender: Male Executive Vice President and CFO, Nordea-fonden Daniel Kristiansson Master of Science (Business Administration) Born 1974 Gender: Male Governance and Stewardship Specialist, Alecta Timo Sallinen Master of Science (Economics) Born 1970 Gender: Male Director, Head of Listed Securities, Varma Mutual Pension Insurance Company Sir Stephen Hester BA Honours – 1st class (Politics, Economics, Philosophy) Born 1960 Gender: Male Chair of the Board of Directors of Nordea Bank Abp The proposals of the Shareholders’ Nomination Board are presented in the notice of the 2026 Annual General Meeting and are also available at nordea.com. Board of Directors (3) The Board of Nordea is charged with the organisation of Nordea and the administration of Nordea’s operations and the overall management of the Nordea Group’s affairs in accordance with the external and internal frameworks. Composition and competence of the Board According to the Articles of Association, the Board must consist of not less than 6 and not more than 15 members. The term of office for Board members is one year and expires at the end of the Annual General Meeting follow- ing the election. Nordea does not have a specific retire- ment age for Board members, nor does it have a specific time limit for how long a Board member may serve on the Board. In its work, the Shareholders’ Nomination Board considers both the need for continuity and for retaining adequate experience on the Board as well as the need for gradual refreshment of knowledge and experience on the Board. According to the Code, if a Board member has served as a member for more than ten consecutive years, this must be taken into consideration when conducting the overall evaluation of independence. Furthermore, applica- ble European regulatory requirements of the banking sector are taken into account in the evaluation. The Board has adopted a diversity policy that estab- lishes the principles of diversity. According to the Diversity Policy, all Board member nominations must be based on merit with the prime consideration being to maintain and enhance the Board’s overall effectiveness. Within this, a broad set of qualities and competencies is sought for and it is recognised that diversity, including age, gender 1, geographical provenance and educational and profes- sional background, is an important factor to take into consideration. Nordea’s objective is to have a fair, equal and balanced representation of gender and other diversi- fying factors on the Board collectively. With regard to gender balance, the Board’s composition is aimed to be aligned with the Nordea Group’s ambition of each gender to have at least 40% representation. The composition of the Board must reflect the require- ments of Nordea’s operations and development stage. A Board member must have the competencies required by the position and the possibility to devote sufficient time to attend to the Board duties. The number of Board members and the composition of the Board must be such that they enable the Board to undertake its duties efficiently. To support meeting the above requirements and objec- tives, the Shareholders’ Nomination Board strives to ensure that the Board as a collective forms a fair, equal and balanced representation of gender and other diversi- fying factors, including: i) the Board’s composition being aligned with Nordea’s Diversity Policy, ii) the Board having members representing each of Nordea’s operating coun- tries in the Nordics: Finland, Sweden, Denmark and Norway, iii) an educational and professional background and iv) age diversity. The Board conducts a self-evaluation process annually, through which the performance and the work of the Board are evaluated for the purpose of continuously improving the Board’s work and efficiency. The evaluation is based on methodology that includes questionnaires to evaluate the Board as a whole, the Chair and the individual Board mem- bers. From time to time, Nordea engages an external party to assist in the Board’s annual self-evaluation for an objec- tive view. The result of the self-evaluation process is further discussed by the Board and presented to the Shareholders’ Nomination Board by the Chair of the Board. In accordance with applicable European regulatory requirements, a suitability assessment of the individual Board members and of the Board as a whole is completed annually and in connection with the selection process for new Board members. The annual suitability assessment for 2025 concluded that the Board members individually and collectively possess the requisite knowledge of and experience in the social, business and cultural conditions of the regions and markets in which the main activities of Nordea and the Nordea Group are carried out, exhibiting adequate diversity and breadth of qualities and compe- tencies, and that the gender distribution is well-balanced. 1) “Gender ” refers to biological or legal sex. To be compliant with regulatory restric- tions on sensitive data, Nordea does not register gender identity. However, Nordea welcomes and enables self-identification of gender identity. ===== SIDA 62 ===== Nordea Annual Report 2025 61 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Corporate Governance Statement 2025, cont. Board training To enable a good understanding of Nordea’s organisation and structure, business model, risk profile and governance arrangements, new Board members participate in an induction programme, covering, among other things, areas related to Nordea’s structure and business model, risk pro- file, governance, Board responsibilities, business strategy, financials and risk management as well as relevant laws and regulations. Depending on the individual needs of the Board members, further training on specific subjects is arranged in order to maintain and deepen relevant knowledge. Board members also receive annual training based on their individual and collective needs as well as in accord- ance with regulatory and supervisory requirements. The annual training plan is designed to cover the key risk areas of Nordea and ensure up-to-date knowledge of identified relevant knowledge areas. The training activities also take into account the results of the annual self-evaluation and suitability assessments of the Board as well as input on identified training needs from senior management. In 2025 the Board received approximately 14 hours of training as part of the annual training plan, requested ad hoc training and strategy sessions in line with industry best practice. As part of the annual training plan, the Board received training in several key areas, including IT infrastructure, information security, capital, liquidity and funding, market and model risk, credit risk, internal ratings- bas ed approach and models, financial reporting, financial crime, ESG topics, people matters as well as compliance and governance topics. Work of the Board The Board elects the Vice Chair and appoints the members of the Board committees. The Board has adopted written working procedures governing its work, which also describe the management and risk reporting to the Board (the “Charter”), and separate working procedures for the work carried out by each of the Board committees (the “Committee Charters”). For example, the Charter deter- mines the Board’s and the Chair’s respective areas of responsibility, documentation and quorum as well as the frequency of meetings. It also contains rules regarding conflicts of interest, confidentiality and the Board Secretary. The Board is charged with the organisation of Nordea, the administration of Nordea’s operations and the overall management of the Nordea Group’s affairs in accordance with the external and internal frameworks and its Charter. The Board must ensure that Nordea’s legal and organisa- tional structure is appropriate and transparent with a clear allocation of functions and areas of responsibility that ensures sound and effective governance, avoids the crea- tion of complex structures and enables supervisors to conduct efficient supervision. The Board regularly follows up on Nordea’s strategy, business development as well as Nordea’s financial posi- tion and performance. Furthermore, the Board regularly updates the policies and internal rules on governance and control on which it has decided. The Board also reviews the risk appetite and regularly follows up on relevant risks, capital and liquidity. Significant organisational changes, certain senior manage- ment appointments as well as mergers and acquisitions and other resolutions of significance are other matters dealt with by the Board. For example, in 2025 the Board approved the Nordea Group strategy and the 2030 financial targets and closely monitored and analysed geopolitical developments and adverse scenarios. The Board also handled matters related to digitalisation, cyber security, sustainability, internal control and compliance, risk reduction, people matters, finan- cial crime, share buy-backs and dividends as well as moni- tored business area, technology and data strategy execution. The Board is ultimately responsible for ensuring that an ade- quate and effective system of internal control is established and maintained. Group Internal Audit annually provides the Board with an assessment of the overall effectiveness of gov- ernance and the risk and control framework, together with an analysis of themes and trends emerging from internal audit work and their impact on the organisation’s risk profile. Further information regarding internal control at Nordea is provided on page 70 under “Internal Control Framework”. The Board regularly meets the external auditor. In addi- tion, the auditor in charge regularly attends the meetings of the Board Audit Committee. In 2025 the Board held 14 meetings, of which 6 were held per capsulam. For more information, see the table on page 67. Time commitment Board members must be able to commit sufficient time to perform their duties and comply with the rules on the limi- tation on the number of directorships. The acceptable number of directorships is subject to both the Finnish Act on Credit Institutions and market expectations. Based on the regulatory requirements and market expectations, reflected for example in the policies of proxy advisers and institutional investors, a Board member, including the position on the Nordea Board, may 1. hold a maximum of one (1) executive directorship and two (2) non-executive directorships, or four (4) non- executive directorships, unless the ECB has granted an exemption which may be sought on a case-by-case basis 2. subject to fulfilling the requirements under item 1 above, hold no more than five (5) mandates in publicly listed companies, where a non-executive directorship counts as one (1) mandate, a non-executive chair position counts as two (2) mandates and a position as executive director (or a comparable role) is counted as three (3) mandates 3. regardless of the above, not hold the position of an executive director (or a comparable role) in a publicly listed company and of a non-executive chair in another publicly listed company. There are certain exceptions to the requirements above, for example directorships held within the same group of undertakings and in entities with predominantly non- commercial objectives. The Nomination Board will assess the Board members’ current and planned time commit- ments outside Nordea annually in preparing their proposal for the Board composition to the Annual General Meeting. The Board consists of 12 ordinary members and 1 dep- uty member. Of these Board members, 10 (6 men and 4 women) were elected by the Annual General Meeting held on 20 March 2025. The Board members elected by the 2025 Annual General Meeting are Sir Stephen Hester (Chair), Lene Skole (Vice Chair), Petra van Hoeken, John Maltby, Risto Murto, Lars Rohde, Per Strömberg, Jonas Synnergren, Arja Talma and Kjersti Wiklund. In addition to the Board members elected by the Annual General Meeting, 3 ordinary members and 1 deputy member are elected by the employees of the Nordea Group. After Gerhard Olsson stepped down in September 2025, there have been 2 ordinary employee- elected Board members and 1 deputy employee-elected Board member. The employee-elected Board members until the end of the 2026 Annual General Meeting are Joanna Koskinen, Jørgen Suo Lønnquist (ordinary members) and Kasper Skovgaard Pedersen (deputy member). The election procedure for the employee- elected Board members deviates from Recommendation 5 “Election of the Board of Directors” of the Code. The reason for this deviation is an agreement on employee representation entered into by Nordea and an employee representation body under the Finnish Act on Employee Involvement in European Companies and European Social Cooperatives as well as the Finnish Act on Personnel Representation in the Company Administration in connection with the cross-border merger effectuating the redomiciliation to Finland in 2018. The President and Group CEO of Nordea is not a mem- ber of the Board. The composition of the Board is set out on page 60, and further information regarding the Board members elected by the Annual General Meeting and the employee-elected Board members is presented in the sections “Board of Directors” and “Employee-elected Board members” on pages 63–65. Board shareholdings In 2023 the Board of Nordea adopted a shareholding recommendation for Board members whereby it is recommended that the shareholding of a Board member corresponds to a minimum of 33% of the member’s total annual fees. The recommendation aligns the Board mem- bers’ interests with the long-term interests of the share- holders in an appropriate and balanced manner. For more information, see the Board shareholdings on pages 63–65. Independence of the Board Nordea complies with applicable requirements regarding the independence of the Board in accordance with appli- cable European regulatory requirements and Finnish laws and regulations as well as the requirements of the Code. Under the Code, the majority of board members must be ===== SIDA 63 ===== Nordea Annual Report 2025 62 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Corporate Governance Statement 2025, cont. independent of the company, and at least two board members who are independent of the company must also be independent of the significant shareholders of the company. The Board meets this requirement. The Board considers all its members to be independent of Nordea’s significant shareholders and all the members elected by the shareholders at the 2025 Annual General Meeting to be independent of Nordea in accordance with the Code1. No Board member elected by the shareholders at the 2025 Annual General Meeting is employed by or works in an operative capacity at Nordea. The ordinary Board members and the deputy Board member elected by the employees are employed by the Nordea Group and are therefore not independent of Nordea according to the Code. The independence of each Board member is also shown in the table on page 67. Chair The Chair of the Board is elected by the shareholders at the Annual General Meeting. The Board meets according to its annual meeting schedule and as necessary. The Chair ensures that the Board’s work is conducted effi- ciently and that the Board fulfils its duties. The Chair leads and organises the Board’s work, maintains regular contact with the President and Group CEO and ensures that the Board receives sufficient information and documentation, that the work of the Board is evaluated annually and that the Shareholders’ Nomination Board is informed of the result of the evaluation. 1) A ccording to the Code, a significant shareholder is a shareholder who holds at least 10% of all company shares or the voting rights carried by all the shares or who has the right or obligation to acquire the corresponding number of already issued shares. Board skills matrix and information on Board composition 1 Identified key knowledge areas Board members’ knowledge, skills and e xperience Banking and finance Insur ance industry CE O experience Str ategy and business ESG and gr een transition Digit alisation, IT, data and cyber security A ccounting and auditing Go vernance and regulatory environment In ternal control Risk managemen t P eople and remuneration Exper t knowledge Good kno wledge Basic kno wledge 1) Excluding employee-elected Board members. Terms of office 3-7 years 70% <3 years 30% Geographical representation Nordic countries 70% United Kingdom 20% Europe (excluding Nordics) 10% Gender diversity Male 60% Female 40% ===== SIDA 64 ===== Nordea Annual Report 2025 63 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Board of Directors Sir Stephen Hester, Chair BA Honours (Politics, Economics, Philosophy) – 1st class Board member since 2022 and Chair since 2022 Born 1960 Gender: Male Nationality: British Other assignments: Chair of board, easyJet and Lead Independent Director, Kyndryl Sir Stephen Hester is a well-known and highly experienced international business leader. He has an extensive financial services track record internationally as well as in the Nordics. These roles have encompassed retail, commercial and investment bank- ing at a global scale as well as insurance and asset/wealth management. Sir Stephen Hester is Chair of easyJet and an Independent Director of Kyndryl. He was knighted in the UK’s 2024 New Year Honours list for services to business and the economy. Previous positions: 2016–2022 Senior Independen t Director, Centrica 2014–2021 Gr oup Chief Executive, RSA Insurance Group 2008–2013 Gr oup Chief Executive, Royal Bank of Scotland 2008 Non-Ex ecutive Deputy Chair, Northern Rock 2004–2008 Gr oup Chief Executive, British Land 2002–2004 Chie f Operating Officer and CFO, Abbey National 2000–2001 Gl obal Head of Fixed Income, Credit Suisse First Boston 1996–2000 CF O and Head of Support Division, Credit Suisse First Boston 1986–1996 V arious senior positions, Credit Suisse First Boston Shareholding in Nordea: 90,260. Lene Skole, Vice Chair BCom (Finance) Board member since 2022 and Vice Chair since 2023 Born 1959 Gender: Female Nationality: Danish Other assignments: CEO of the Lundbeck Foundation, Deputy Chair of ALK-Abelló A/S 1, H. Lundbeck A/S1, Falck A/S1 and Chair of Ørsted A/S Since 2014 Lene Skole has been the CEO of the Lundbeck Foundation, one of the largest enterprise foundations in Denmark. She has extensive experience within the insurance sector, gained through board memberships for the past 13 years. She also holds extensive board membership experience within various other sectors, such as healthcare and renewable energy. Previous positions: 2020–2024 Member of the Committee on Foundation Governance 2010–2022 Boar d member, Tryg A/S and Tryg Forsikring A/S 2017–2018 Deputy Chair, TDC A/S 2006–2014 Boar d member, DFDS A/S 2005–2014 Ex ecutive Vice President, CFO, Coloplast 2000–2005 CF O, A.P. Møller – Mærsk, UK (The Maersk Company, UK) 2002–2003 E uropean CFO, A.P. Møller – Mærsk 1997–2000 Vic e President, Finance, A.P. Møller – Mærsk Shareholding in Nordea: 29,031. 1) Board positions included in the position as CEO of the Lundbeck Foundation. Petra van Hoeken Master in Civil Law Board member since 2019 Born 1961 Gender: Female Nationality: Dutch Other assignments: Non-Executive Director and Chair of the Audit Committee of NSI N.V., supervisory board member of ASN Bank (formerly Volksbank N.V.), Chair of the Advisory Committee for Credit for the Dutch Ministry of Economic & Climate Affairs and board member of Stichting for the Holding and Administration of Shares under the Shell Employee Share Plans. Petra van Hoeken is an experienced banking professional with a strong background as chief risk officer within the financial industry. She has previously been a board member of, among others, Nederlandse Waterschapsbank NV, De Lage Landen and Utrecht-America Holdings. Previous positions: 2017–2025 Member o f the Advisory Council for Donations, Leiden University 2017–2025 Boar d member, Oranje Fonds 2024–2025 Non-Ex ecutive Director and board member, Virgin Money UK 2015–2023 Boar d member, Nederlandse Waterschapsbank NV 2019–2020 Ex ecutive Committee member and Chief Risk Officer of Intertrust Group 2018–2019 Boar d member, De Lage Landen, DLL 2016–2019 Boar d member, Utrecht-America Holdings, Inc 2016–2019 Managing boar d member and Chief Risk Officer, Coöperatieve Rabobank U.A. 2012–2016 Managing boar d member and Chief Risk Officer, NIBC Bank NV 2008–2012 Chie f Risk Officer, EMEA, The Royal Bank of Scotland Plc 1986–2008 V arious management and other positions, ABN AMRO Bank NV, Amsterdam, Madrid, Singapore, Frankfurt and New York Shareholding in Nordea: 7,326. John Maltby BSc Honours (Engineering Science) Board member since 2019 Born 1962 Gender: Male Nationality: British Other assignments: Chair of Allica Bank, West Bromwich Building Society and Max Nicholas Renewables John Maltby is an experienced board member in financial services and has previously held positions in Bluestep Bank AS, Tandem Bank, Bank of Ireland and Simplyhealth Group. He currently chairs the boards of Allica Bank, West Bromwich Building Society and Max Nicholas Renewables. Previous positions: 2017–2022 Boar d member, National Citizens Service (NCS) Trust 2018–2021 Boar d member, Simplyhealth Group 2015–2019 Boar d member, Bank of Ireland, UK 2012–2019 Chair , Good Energy Group Plc 2015–2018 Boar d member, Tandem Bank 2015–2017 Chair , Bluestep Bank AS 2013–2015 Chie f Executive Officer, Williams & Glyn 2012–2013 Senior Adviser, Corsair Capital 2007–2012 Gr oup Director, Commercial, Lloyds Banking Group 2000–2007 Chie f Executive Officer, Kensington Group Plc 1998–2000 Ex ecutive Director, First National Group, Abbey National Plc 1994–1998 Chie f Executive Officer, Lombard Tricity, NatWest Group Plc 1992–1994 Deputy Dir ector, Barclays Bank Plc 1989–1992 Managemen t Consultant, Price Waterhouse Consultancy 1983–1989 Manager , Andersen Consulting Shareholding in Nordea: 8,241. ===== SIDA 65 ===== Nordea Annual Report 2025 64 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Board of Directors, cont. Risto Murto PhD (Economics) Board member since 2023 Born 1963 Gender: Male Nationality: Finnish Other assignments: President and Chief Executive Officer of Varma Mutual Pension Insurance Company, Chair of the Securities Market Association, Vice Chair of the board of Sampo Plc, board member of the Finnish Pension Alliance TELA and Finance Finland. Risto Murto has extensive experience within pensions, insurance, investments and financial markets, both as a board member and as a member of executive manage- ment. Since 2014 he has been the President and Chief Executive Officer of Varma Mutual Pension Insurance Company, an earnings-related pension insurance company. Previous positions: 2016–2025 Super visory board member, the Finnish National Opera and Ballet 2020–2025 Super visory board member, the Finnish Cultural Foundation 2020–2025 Chair o f the board, E2 Research 2022–2023 B oard member, the Finnish Canoeing and Rowing Federation 2014–2023 Vic e Chair, Wärtsilä Corporation 2019–2022 Boar d member, Finance Finland 2014–2022 A dvisory board member, the VATT Institute for Economic Research 2010–2015 Boar d member, Kaleva Mutual Insurance Company 2014–2016 Boar d member, Finance Finland 2012–2015 Boar d member, Nokian Tyres 2006–2013 Boar d member, Kojamo Oyj 2000–2005 Managing Dir ector, Opstock Ltd 1997–2000 Head o f Equities and Research, Opstock Ltd 1993–1997 Head o f Research, Erik Selin Ltd Shareholding in Nordea: 11,192. Lars Rohde Masters (Economics & Management) Board member since 2024 Born 1954 Gender: Male Nationality: Danish Other assignments: Board member of Aarhus University, Nadija Children’s Hospital & Research Institute, VIA Equity and Ole Faarup Art Foundation. Lars Rohde is recognised as a leading banking professional with a profound under- standing of the Danish financial sector and society. During his 40-year career in the banking industry, he has held positions both as a commercial finance executive and as a financial services official. From 2013 to 2023 he served as the Chairman of the Board of Governors of Danmarks Nationalbank and prior to this, as the CEO of ATP, the largest pension company in Denmark. Previous positions: 2013–2023 Chairman o f the Board of Governors, Danmarks Nationalbank 2011–2012 Boar d member, Aarhus University 2011–2012 Boar d member, FIH Ehrenversbank 2010–2011 Boar d member, FIH Holding 1998–2013 CE O, Labour Market Supplementary Pension 1997–1998 Deputy Managing Dir ector, RealKredit Danmark 1993–1996 Boar d member, Copenhagen Stock Exchange 1992–1997 Dir ector, RealKredit Danmark 1992–1998 Boar d member, the Danish Mortgage Credit Council 1989–1992 F und Director, RealKredit Danmark 1985–1988 E conomist, investments, the Doctors’ Pension Fund 1988–1989 Managing Dir ector, the Doctors’ Pension Fund 1987–1993 P art-time lecturer, Department of Finance, Copenhagen Business School 1982–1984 E conomist, Danmarks Nationalbank 1981–1982 E conomist, Arbejdernes Landsbank Shareholding in Nordea: 4,070. Per Strömberg MSc (Business and Economics) Board member since 2023 Born 1963 Gender: Male Nationality: Swedish Other assignments: Board Chairman of PostNord and board member of Eduviva Group Per Strömberg has served as a chief executive officer of several companies over the past 17 years and has a wide range of experience within retail, consumer goods, brand and digitalisation. Before joining Nordea as a Board member, he held the position of President and Chief Executive Officer at ICA Gruppen, a leading Swedish retail company, for 11 years. Currently he is the board Chairman of PostNord AB and a board member of Eduviva Group. Previous positions: 2023–2025 Boar d member, ICA Gruppen 2012–2022 Pr esident and Chief Executive Officer, ICA Gruppen 2007–2012 Pr esident and Chief Executive Officer, Lantmännen 2006–2007 Pr esident and Chief Executive Officer, Sardus AB 2003–2006 Managing Dir ector, Sweden & Nordic Category Director, Coffee & Food, Kraft Foods Sweden 2001–2003 Managing Dir ector, Denmark & Nordic Category Manager, Coffee, Kraft Foods Denmark 1999–2001 Dir ector, Business Development, Coffee Europe, Kraft Foods International 1998–1999 Gener al Manager, Kraft Freia Marabou Shareholding in Nordea: 10,000. Jonas Synnergren MSc (Economics and Business) Board member since 2020 Born 1977 Gender: Male Nationality: Swedish Other assignments: Senior partner at Cevian Capital AB, Head of Cevian Capital’s Swedish office, board member of LM Ericsson Jonas Synnergren is a senior partner at Cevian Capital AB and Head of Cevian Capital’s Swedish office since 2012 and has experience in financial services and asset management. He is a board member and member of the Remuneration Com- mittee and Audit and Compliance Committee of LM Ericsson and has previously been a board member of Tieto Corporation and Veoneer Inc. Previous positions: 2018–2022 Boar d member, Veoneer Inc 2012–2019 Boar d member, Tieto Corporation 2006 In terim CEO and Head of Investor Relations & Business Development, Svalan Konsortier AB 2000–2006 Se veral positions, Boston Consulting Group AB Shareholding in Nordea: 8,500. ===== SIDA 66 ===== Nordea Annual Report 2025 65 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Board of Directors, cont. Arja Talma MSc (Economics) and Authorised Public Accountant, EMBA, École nationale des ponts et chaussées Board member since 2022 Born 1962 Gender: Female Nationality: Finnish Other assignments: Chair of the board of V erkkokauppa.com Oyj, board member of Metso Oyj and Glaston Corporation Arja Talma has a strong track record from board and audit committee positions held in listed and regulated companies such as Metso Oyj, Verkkokauppa.com, Glaston and Aktia Bank Plc. She has extensive experience as a CFO and from various industries as a board member and senior executive. Previous positions: 2020–2023 Boar d member, Metso Outotec Oyj 2013–2022 Boar d member, Aktia Bank Plc 2016–2021 Chair o f board, Serena Properties AB 2018–2020 Chair o f board, Onvest Oy 2016–2020 Boar d member, Metso Corporation 2016–2020 Boar d member, Posti Group Plc 2017–2018 Boar d member, Mehilainen Oy 2007–2017 Boar d member, Sponda Plc 2015–2017 Boar d member, Norvestia Plc 2013–2015 Super visory board member, Varma Pension Insurance Company 2015 Boar d member, Nordic Cinema Group AB (publ.) 2013–2015 Senior Vic e President, Store Sites and Investments, Kesko Corporation 2011–2013 Pr esident, Rautakesko Ltd 2006–2012 Boar d member, VR Group Ltd 2008–2012 Boar d member, Luottokunta 2004–2011 Senior Vic e President, Chief Financial Officer, other senior positions, Kesko Corporation 2001–2003 Ex ecutive Vice President, Oy Radiolinja Ab Shareholding in Nordea: 10,000. Kjersti Wiklund MSc (Electronic Engineering), MBM Board member since 2022 Born 1962 Gender: Female Nationality: Norwegian Other assignments: Board member of AutoStore Holdings Ltd and Evelyn Partners Kjersti Wiklund has been a member of the boards of a number of high-tech companies for more than 20 years. She currently holds board memberships, including board audit and risk c ommittee memberships, in companies with heavy technology focus at AutoStore Holdings Ltd and Evelyn Partners. Previous positions: 2017– 2025 Boar d member, Spectris plc 2020–2023 Boar d member, Zegona plc 2018–2022 Boar d member, Babcock plc 2019–2022 Boar d member, Trainline plc 2018–2020 Chair o f Saga Robotics AS 2015–2018 Boar d member, Laird plc 2013–2017 Boar d member, Cxense ASA 2014–2016 Dir ector, Group Technology Operations, Vodafone Group 2011–2014 Ex ecutive Vice President and COO, VimpelCom Russia 2011 A cting Group CTO, VimpelCom Group 2009–2011 Deputy CE O and CTO, Kyivstar GSM 2007–2009 Ex ecutive Vice President and CTO, DiGi Telecom 2005–2009 Boar d member, Fast Search and Transfer ASA 2005–2007 Ex ecutive Vice President and CIO, Telenor Nordic 2004–2005 Ex ecutive Vice President and CIO, Telenor Norway 2003–2004 Vic e President and CTO, Telenor Norway 2002 Vic e President, Strategy and Products, Telenor Enterprise 2000–2002 Ex ecutive Vice President and Head of Network Management Software Division, EDB Telescience Ltd Shareholding in Nordea: 11,000. Employee-elected Board members1 Joanna Koskinen MBA International Business Management Board member since 2021 Born 1977 Gender: Female Professional at Nordea Shareholding in Nordea: 0. Jørgen Suo Lønnquist Master of Management Board member since 2024 Born 1980 Gender: Male Head of Union in Nordea Norway Shareholding in Nordea: 0. Kasper Skovgaard Pedersen MSc Agricultural Economics and Development Board member since 2023 Born 1978 Gender: Male (Deputy until 24 March 2026) President of Finansforbundet in Nordea (Denmark) Shareholding in Nordea: 0. 1) Gerhar d Olsson was an employee-elected Board member until 5th September 2025. ===== SIDA 67 ===== Nordea Annual Report 2025 66 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Board of Directors, cont. Board committees In accordance with the external framework and in order to increase the effectiveness of the Board work, the Board has established separate working committees to assist the Board in preparing matters falling within the competence of the Board and in making decisions in matters delegated by the Board. The duties of the Board committees as well as working procedures are defined in the Committee Charters. In general, the Board committees do not have autonomous decision-making powers and each committee regularly reports on its work to the Board. Nordea follows the legal requirements and complies with the Code in terms of Board committees. Board Audit Committee (4) The Board Audit Committee (BAC) assists the Board in fulfilling its oversight responsibilities, for instance by monitoring the Nordea Group’s financial and sustainability reporting process and system and by providing recom- mendations or proposals to ensure their reliability (includ- ing the efficiency of the internal control and risk manage- ment system), by monitoring the effectiveness of Group Internal Audit, by keeping itself informed as to the statu- tory audit of the annual and consolidated accounts and the assurance of the sustainability reporting and by reviewing and monitoring the impartiality and independ- ence of the external auditors, including the offering of services other than auditing services by the auditors, by preparing a recommendation of appointment of Nordea’s auditor and of the sustainability assurer and by reviewing the Group’s tax strategy and tax policy as well as by taking care of the responsibilities of the audit committee pursu- ant to applicable legal requirements. The BAC also assists the Board in monitoring and assessing how related party transactions meet the requirements of ordinary activities and are at arm’s length terms. Further information is presented in the section “Principles for related party transactions” on page 72. The committee also reviews the integrity, independence and effectiveness of the whistle- blowing mechanism Raise Your Concern. Members of the BAC are John Maltby (Chair), Petra van Hoeken, Lene Skole and Arja Talma. Generally, the Chief Audit Executive, the Chief Financial Officer, the Chief Risk Officer and the external auditor of Nordea are present at the meetings of the BAC with the right to participate in discussions but not in decisions. The Board annually appoints the members and the Chair of the BAC. The BAC must have at least three com- mittee members who are members of the Board. The Chair of the BAC must not be the Chair of the Board or of any other Board committee. None of the members of the BAC may be employed within the Nordea Group or partici- pate in the day-to-day management of Nordea or a com- pany of the Nordea Group. The majority of the members of the BAC must be independent of Nordea. At least one of the members of the BAC who is independent of Nordea must also be independent of Nordea’s significant share- holders and have sufficient expertise in accounting and/or auditing. The committee members must have the exper- tise and experience required for the performance of the responsibilities of the BAC. For more information, see the table on page 67. Board Risk Committee (5) The Board Risk Committee (BRIC) assists the Board in ful- filling its oversight responsibilities concerning manage- ment and control of risks, risk frameworks and appetite as well as controls and processes associated with the Nordea Group’s activities, including financial and non-financial risks such as capital, credit, market, liquidity, concentra- tion, compliance, conduct, model, operational, information security, IT, ESG and other strategic risks. The duties of the BRIC include reviewing and making recommendations on the Nordea Group’s risk and compli- ance governance as well as reviewing the development of the Group’s Internal Control Framework, including the Risk Management Framework, in reference to the development of the Group’s risk profile and changes in the regulatory framework. In addition, the BRIC reviews and makes rec- ommendations regarding the Group’s risk appetite and risk strategy. Furthermore, the BRIC reviews resolutions made by a Group entity concerning credits or credit limits above certain amounts as well as the performance of the credit portfolio. Members of the BRIC are Petra van Hoeken (Chair), John Maltby, Risto Murto, Lars Rohde and Kjersti Wiklund. Generally, the Chief Risk Officer, the Chief Compliance Officer and the Chief Audit Executive are present at the meetings with the right to participate in discussions but not in decisions. Other senior executives are present at meet- ings when relevant. The Board annually appoints the Chair and members of the BRIC. The BRIC must have at least three committee members who are members of the Board. The Chair of the BRIC must not be the Chair of the Board or of any other Board committee. The BRIC must be composed of mem- bers of the Board who are not employed within the Group. The members of the BRIC, including the Chair, must be independent. Members of the BRIC must individually and collectively have appropriate knowledge, skills and exper- tise concerning risk management and control practices. For more information, see the table on page 67. Board Remuneration and People Committee (6) The Board Remuneration and People Committee (BRPC) is responsible for preparing and presenting proposals to the Board on remuneration, diversity and inclusion, key leadership selection, assessment and succession planning and talent management matters. When preparing propos- als on remuneration, the long-term interests of share- holders, investors and other stakeholders in Nordea must be taken into account. At least annually, the BRPC follows up on the application of Nordea’s Remuneration Policy, overseeing its functional- ity, including the use of variable pay adjustments, through an independent review by Group Internal Audit and assesses Nordea’s remuneration directive and remunera- tion system with the participation of appropriate control functions. In addition, the BRPC supports the Board with the preparation of the Remuneration Policy for Governing Bodies and the Remuneration Report for Governing Bodies. The BRPC also has the duty of annually monitoring, evalu- ating and reporting to the Board on the programmes for variable remuneration for members of the Group Leadership Team (GLT) and the Chief Audit Executive. At the request of the Board, the BRPC also prepares other issues of principle for the Board’s consideration. The remit of the BRPC also includes support to the Board in considering the Group Board Diversity Policy and Statement as well as monitoring the impact of diversity and inclusion policies and practices within Nordea and the review and assessment of talent management. The BRPC also reviews succession plans, the perfor- mance of the members of the GLT and the Chief Audit Executive and the structure and composition of as well as the selection criteria and process for the GLT and advises on proposed GLT appointments together with the Shareholders’ Nomination Board. Members of the BRPC are Sir Stephen Hester (Chair), Per Strömberg, Arja Talma and Joanna Koskinen (employee- el ected Board member). Gerhard Olsson stepped down as an employee-elected Board member in September 2025 and was replaced by Joanna Koskinen. Generally, the Chief People Officer and the President and Group CEO are present at the meetings with the right to participate in discussions but not in decisions. Neither the Chief People Officer nor the President and Group CEO participates in considerations regarding their respective employment terms and conditions. The Chair and the members of the BRPC are appointed annually by the Board. The BRPC must have at least three committee members. The Chair and the majority of the members of the BRPC must be Board members who are independent of Nordea and not employed by the Nordea Group. The President and Group CEO or the other executives must not be members of the BRPC. However, if employee-elected Board members are appointed to the Board, at least one of them must be appointed as a member of the BRPC pursuant to the Finnish Act on Credit Institutions. The members of the BRPC must collectively have sufficient knowledge of as well as expertise and experience in issues relating to risk management and remuneration. For more information, see the table on page 62. Further information regarding remuneration at Nordea is presented in the section “Remuneration” on pages 73– 75 and in Note G8 “Employee benefits and key manage- ment personnel remuneration” on pages 251–265. Board Operations and Sustainability Committee (7) The Board Operations and Sustainability Committee (BOSC) assists, without prejudice to the tasks of the other Board committees, the Board in fulfilling its oversight responsibilities concerning sustainability (including E, S and G factors), digital transformation, technology, data management, operations/systems and operational ===== SIDA 68 ===== Nordea Annual Report 2025 67 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Board of Directors, cont. resilience (including cyber resilience) as well as related frameworks and processes. The duties of the BOSC include advising the Board on the Nordea Group’s overall strategy within the mentioned areas and assisting the Board in overseeing the implementation of that strategy by senior management. Members of the BOSC are Kjersti Wiklund (Chair), Lars Rohde, Per Strömberg and Jonas Synnergren. Lars Rohde was appointed as a member of the BOSC and Risto Murto stepped down from the committee in September 2025. Generally, the Head of Group Technology and the Head of Group Operational Risk are regular attendees at the meet- ings with the right to participate in discussions but not in decisions. The Chair and the members of the BOSC are appointed annually by the Board. The BOSC must have at least three committee members who are members of the Board. The BOSC must be composed of members of the Board who do not perform any executive function in the Nordea Group. Members of the BOSC must have sufficient collec- tive knowledge of as well as expertise and experience in issues relating to the work of the committee. President and Group CEO supported by the Group Leadership Team (8) Nordea’s President and Group CEO (the “Group CEO“) leads the day-to-day management of Nordea and the affairs of the Nordea Group in accordance with the exter- nal and internal frameworks. The internal framework adopted by Nordea further regulates the division of responsibilities and the interaction between the Group CEO and the Board. The Group CEO works closely with the Chair of the Board in terms of planning Board meetings. The Group CEO is accountable to the Board for manag- ing the Nordea Group’s operations and organisation and is also responsible for developing and maintaining effective systems for reporting and internal control within the Group. In accordance with applicable regulations, Nordea has a Deputy Managing Director. Further information about the control environment for risk exposures is pre- sented in Note G11 “Risk and liquidity management“ on pages 276–306. The Group CEO works together with senior officers who report directly to the Group CEO within the Group Leadership Team (GLT). The GLT supports the Group CEO in managing the Group, and the GLT members, apart from the Group CEO, are responsible for the performance, operations, risks and resources of their respective business areas or Group functions in accordance with the Nordea Group strategy and must operate in the best interest of Nordea and in compliance with applicable laws and regulations. The GLT meets regularly and whenever necessary at the request of the Group CEO. These meetings are chaired by the Group CEO, who reaches decisions after having consulted with the other GLT members. Notes of the meetings, verified by the Group CEO, are kept. At the end of 2025 the GLT members were: Frank Vang- Jensen (Group CEO), Sara Mella (Head of Personal Banking), Nina Arkilahti (Head of Business Banking), Petteri Änkilä (Head of Large Corporates & Institutions), Martin A Persson (Head of Asset & Wealth Management), Erik Ek (Head of Group Business Support), Kirsten Renner (Head of Group Technology), Ulrika Romantschuk (Head of Group Brand, Communication and Marketing), Christina Gadeberg (Chief People Officer), Jussi Koskinen (Chief Legal Officer and Deputy Managing Director), Ian Smith (Chief Financial Officer), Mark Kandborg (Chief Risk Officer) and Jamie Graham (Chief Compliance Officer). On 1 February 2025 the Group Business Support func- tion was divided into two new units, Group Technology and Group Business Support. Kirsten Renner, Head of Group Technology, was appointed a member of the GLT, and Mads Skovlund Pedersen was appointed Head of Group Business Support and a member of the GLT. The former Group Business Support function was headed by Erik Ekman who stepped down as a member of the GLT and as Head of Group Business Support in connection with the division of the function. Furthermore, on 13 October 2025 Erik Ek was appointed Head of Group Business Support and a member of the GLT. Mads Skovlund Pedersen stepped down as a member of the GLT and as Head of Group Business Support. Biographical information about the Group CEO and the other GLT members at the end of 2025 is presented on page 68, information about Nordea’s organisation is pre- sented on page 69, further information about the business areas is presented on pages 27–36 and information about the Group functions is presented on page 69. For more information on the recent changes in the GLT, see “Events after the financial period” on page 191. Board members’ attendance and independence The table below shows the number of meetings held by the Board and its committees as well as the attendance of the individual Board members. It also shows the inde- pendence of the individual Board members in relation to Nordea as well as to significant shareholders. Board of Directors Board Audit Committee Board Risk Committee Board Remuneration and People Committee Board Operations and Sustainability Committee Independence in relation to Nordea1 Independence in relation to significant shareholders1 Number of meetings (of which per capsulam) 14(6) 9(0) 9(1) 6(2) 9(1) Elected by shareholders at the Annual General Meeting Sir Stephen Hester (Chair) 14/14 – – 6/6 – Yes Yes Lene Skole (Vice Chair) 14/14 9/9 – – – Yes Yes Petra van Hoeken 14/14 9/9 9/9 – – Yes Yes John Maltby 13/14 8/9 8/9 – – Yes Yes Risto Murto 14/14 – 3/3 – 6/6 Yes Yes Lars Rohde 14/14 – 9/9 – 3/3 Yes Yes Per Strömberg 14/14 – – 6/6 8/9 Yes Yes Jonas Synnergren 14/14 – – – 9/9 Yes Yes Arja Talma 14/14 9/9 – 6/6 – Kjersti Wiklund 14/14 – 9/9 – 9/9 Yes Yes Employee-elected Board members Joanna Koskinen 14/14 – – 3/3 – No Yes Gerhard Olsson (Board member until September 2025)   8/8 – – 3/3 – No Yes Kasper Skovgaard Pedersen (deputy member from March 2025) 14/14 – – – – No Yes Jørgen Suo Lønnquist (deputy member until March 2025)                                   14/14 – – – – No Yes 1) A ccording to the Code, a significant shareholder is a shareholder who holds at least 10% of all company shares or the voting rights carried by all the shares or who has the right or obligation to acquire the corresponding number of shares already issued. For additional information, see “Independence of the Board“ on pages 61–62. ===== SIDA 69 ===== Nordea Annual Report 2025 68 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Group Leadership T eam Frank Vang-Jensen President and Group CEO Born 1967 Gender: Male Member of Group Leadership Team since 2018 Education: Organisation & Leadership, Copenhagen Business School, Denmark. Finance & Credit, Copenhagen Business School, Denmark. Executive Programme, Harvard Business School, USA. Management Programme, INSEAD, France/ Singapore. Shareholding in Nordea: 303,625. Nordea shares in deferral: 234,202 1. Previous positions: 2018–2019 Head o f Personal Banking, member of Group Leadership Team, Nordea Bank Abp 2017–2018 Head o f Personal Banking, Country Senior Executive and Country Branch Manager Denmark, Nordea Bank Abp 2015–2016 Pr esident and Group CEO, Svenska Handelsbanken AB 2014–2015 EVP & Head of Handelsbanken Sweden, Svenska Handelsbanken AB 2007–2014 EVP & CEO, Handelsbanken Denmark, Svenska Handelsbanken AB 2005–2007 CE O, Stadshypotek AB 2001–2005 R egional Area Manager, Handelsbanken Denmark Sara Mella Head of Personal Banking Born 1967 Gender: Female Member of Group Leadership Team since 2019 Education: MSc in Economics, Univ ersity of T ampere, Finland. Shareholding in Nordea: 86,113. Nordea shares in deferral: 111,274 1. Martin A Persson Head of Asset and Wealth Management2 Born 1975 Gender: Male Member of Group Leadership Team since 2016 Education: Bachelor of Business Administration, Accounting & Finance, Stockholm University, Sweden. Shareholding in Nordea: 97,767. Nordea shares in deferral: 118,7661. Erik Ek Head of Group Business Support3 Born 1979 Gender: Male Member of Group Leadership Team since 2025 Education: MSc in Economics, Stockholm University, Sweden. Shareholding in Nordea: 5,142 Nordea shares in deferral: 20,846 1. Nina Arkilahti Head of Business Banking Born 1967 Gender: Female Member of Group Leadership Team since 2020 Education: Master of Social Science, University of Turku, Finland. BSc in Economics and Business Admin- istration, Aalto University School of Business, Finland. INSEAD Advanced Management Programme. Shareholding in Nordea: 77,219. Nordea shares in deferral: 101,306 1. Petteri Änkilä Head of Large Corporates & Institutions2 Born 1971 Gender: Male Member of Group Leadership Team since 2025 Education: MSc in Corporate Finance, University of Vaasa, Finland. Shareholding in Nordea: 91,517. Nordea shares in deferral: 43,804 1. Ulrika Romantschuk Head of Group Brand, Communication and Marketing Born 1966 Gender: Female Member of Group Leadership Team since 2020 Education: Bachelor in Political Science from the Swedish School of Social Science, University of Helsinki, Finland. Shareholding in Nordea: 33,334. Nordea shares in deferral: 55,378 1. Christina Gadeberg Chief People Officer Born 1970 Gender: Female Member of Group Leadership Team since 2019 Education: Graduate Diploma (HD) in Business Administration, Organisation & Leadership, Copenhagen Business School, Denmark. Shareholding in Nordea: 49,867. Nordea shares in deferral: 76,733 1. Ian Smith Chief Financial Officer Born 1966 Gender: Male Member of Group Leadership Team since 2020 Education: MA in Economics, Aberdeen University, UK . Shareholding in Nordea: 96,301. Nordea shares in deferral: 122,031 1. Jamie Graham Chief Compliance Officer Born 1974 Gender: Male Member of Group Leadership Team since 2021 Education: Bachelor of Science, University of East Anglia, UK. Shareholding in Nordea: 32,767. Nordea shares in deferral: 40,746 1. Jussi Koskinen Chief Legal Officer Born 1973 Gender: Male Member of Group Leadership Team since 2018 Education: Master of Laws (LLM), University of Turku, School of Law, Finland. Shareholding in Nordea: 58,456. Nordea shares in deferral: 81,465 1. Mark Kandborg Chief Risk Officer Born 1971 Gender: Male Member of Group Leadership Team since 2022 Education: MSc in Economics, University of Copenhagen, Denmark. Shareholding in Nordea: 48,119. Nordea shares in deferral: 53,909 1. 1) R elating to shares from STIP and LTIP awards earned during the performance years 2019–2024. Does not include shares from LTIP 2023–2025, LTIP 2024–2026 and LTIP 2025–2027 as not yet deferred. 2) From 1 January 2025 Martin A Persson has served as Head of Asset & Wealth Management and Petteri Änkilä as Head of Large Corporates & Institutions. Snorre Storset has stepped down from the Group Leadership Team and as Head of Asset & Wealth Management. 3) On 1 February 2025 the Group Business Support function was divided into two new units, Group Technology and Group Business Support. Kirsten Renner and Mads Skovlund Pedersen were appointed members of the Group Leadership Team, and Erik Ekman stepped down as a member of the Group Leadership Team and as Head of Group Business Support. Furthermore, on 13 October 2025 Erik Ek was appointed Head of Group Business Support and a member of the Group Leadership Team. Mads Skovlund Pedersen stepped down as a member of the Group Leadership Team and as Head of Group Business Support. Kirsten Renner Head of Group Technology3 Born 1976 Gender: Female Member of Group Leadership Team since 2025 Education: MSc in Physics, University of Amsterdam, the Netherlands. Shareholding in Nordea: 18,639. Nordea shares in deferral: 35,588 1. ===== SIDA 70 ===== Nordea Annual Report 2025 69 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Group functions Nordea’s Group functions support the four business areas, helping to ensure speed and availability for customers and maintain Nordea’s status as a safe, trustworthy and responsible bank. Erik Ek Head of Group Business Support Group Business Support Group Business Support provides business areas with the services needed for Nordea to deliver on its vision. It provides the operational backbone for the Group’s larg- est processes, such as lending, credit, payments and anti-money laundering operations. Additionally, it aims at leveraging scale and driving operational efficiency, allowing the business areas to focus on what they do best: delivering great customer experiences. Kirsten Renner Chief Information Officer Group Technology Group Technology provides the data and technology infrastructure that support Nordea’s operations and strategic ambitions. It ensures the stability, scalability and security of the bank’s digital platforms, enabling business areas to deliver high-quality services to cus- tomers. Through continuous improvement, innovation and acceleration of AI usage, Group Technology plays a key role in building resilient systems and advancing Nordea’s digital services. Ulrika Romantschuk Head of Group Brand, C ommunication and Marketing Group Brand, Communication and Marketing Group Brand, Communication and Marketing (GBCM) is responsible for strengthening the brand and reputa- tion through integrated 360-degree marketing and communication and a strong customer focus. Operating with a collaborative mindset across units and markets, GBCM works together with the business areas and Group functions to build a strong position for Nordea across stakeholder groups. GBCM creates scalable marketing assets to drive efficiency and impact, supporting sustainable growth and enhanced market presence. GBCM leads Nordea’s reputation management and drives thought leadership to be the trusted voice within the industry. GBCM is a strategic, integrated and growth-focused function that creates impact and builds trust and long-term brand value. Christina Gadeberg Chief People Officer Group People Group People is responsible for attracting, retaining and developing talent to drive high performance and for fostering a sustainable work environment within Nordea. In addition, it supports organisational excellence through talent management, leadership development, remunera- tion practices, proactive strategic workforce manage- ment and organisational design. Group People’s aim is for Nordea to become the preferred employer within financial services across Nordea’s markets, proactively promoting the ability of the business to drive high per- formance, and accelerate business excellence enabled by technology, people and trust. Jussi Koskinen Chief Legal Officer Group Legal Group Legal provides effective and high-quality legal advice within the Nordea Group, covering banking, business, contracts, mergers and acquisitions, litigation and many other legal areas of relevance. It is also responsible for board secretariat services, corporate governance, branch management, public affairs and regulatory management, including reporting to and interacting with national and European Union authorities. Ian Smith Chief Financial Officer Group Finance Group Finance drives Group-wide financial performance management, financial reporting and planning, financial and business control, procurement services and analysis to meet business needs and regulatory requirements. It also manages Nordea’s capital, liquidity, funding and market risks, supporting the business areas’ ability to serve customers well while ensuring regulatory compli- ance. Group Finance ensures a fair reflection of Nordea’s fundamentals by providing transparent and relevant communication to the investor community. Mark Kandborg Chief Risk Officer Group Risk Group Risk is Nordea’s independent risk control func- tion. Together with Group Compliance, it constitutes Nordea’s second line of defence. It oversees the imple- mentation of the Group’s financial and non-financial risk policies (excluding compliance risks) and monitors and controls its Risk Management Framework. Group Risk thus oversees the identification, assessment, monitoring, management and reporting of the key risks that Nordea is or could be exposed to. Jamie Graham Chief Compliance Offic er Group Compliance Group Compliance is Nordea’s independent compli- ance function. Together with Group Risk, it constitutes Nordea’s second line of defence. Group Compliance is responsible for monitoring and overseeing the compli- ance risks that Nordea is or could be exposed to. It covers Nordea’s entire operations, including subsidiar- ies and outsourced activities. Johan Ekwall Chief of Staff Chief of Staff Office Chief of Staff Office is responsible for driving several of the Group-wide processes, including the strategy development process and the process where the Group’s Technology Investment Portfolio is allocated, to ensure that technology investments are aligned with the business strategy, the internal M&A activities as well as the strategic sustainability priorities across the Group. Group Sustainability, a unit within Chief of Staff Office, drives Nordea’s sustainability agenda, suggests short- and long-term sustainability targets for the CEO to decide on and works with the business areas to ensure that their business strategies are consistent with the Group’s sustainability targets. Johanne Daugaard Risbjerg Chief Audit Executive Group Internal Audit Group Internal Audit is Nordea’s independent third line of defence function, mandated by Nordea’s Board to support the Board and the Group Leadership Team in protecting the Group’s assets, reputation and sus- tainability. Group Internal Audit helps Nordea accom- plish its objectives by evaluating and improving the effectiveness and efficiency of its governance, risk management and control processes, applying a sys- tematic and disciplined approach. Group organisation As of 1 January 2026 Nordea Group President and Group CEO Frank Vang-Jensen Group Internal Audit Johanne Daugaard Risbjerg1 Chief of Staff Office Johan Ekwall 1 Group Brand, Communication and Marketing Ulrika Romantschuk Group Legal Jussi Koskinen Group Risk Mark Kandborg Group Finance Ian Smith Group People Christina Gadeberg Group Compliance Jamie Graham Personal Banking Sara Mella Business Banking Nina Arkilahti Large Corporates & Institutions Petteri Änkilä Asset & Wealth Management Martin A Persson Group Business Support Erik Ek2 Group Technology Kirsten Renner 2 1) Not a member of the Group Leadership Team. 2) On 1 F ebruary 2025 the Group Business Support function was divided into two new units, Group Technology and Group Business Support. Kirsten Renner and Mads Skovlund Pedersen were appointed members of the Group Leadership Team, and Erik Ekman stepped down as a member of the Group Leadership Team and as Head of Group Business Support. Furthermore, on 13 October 2025 Erik Ek was appointed Head of Group Business Support and a member of the Group Leadership Team. Mads Skovlund Pedersen stepped down as a member of the Group Leadership Team and as Head of Group Business Support. ===== SIDA 71 ===== Nordea Annual Report 2025 70 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Group organisation, cont. Internal Control Framework The Internal Control Framework covers the whole Group and includes Group Board, Group CEO and senior manage- ment responsibilities regarding internal control, all Group functions and business areas, including outsourced activi- ties and distribution channels. Under the Internal Control Framework, all business areas, Group functions and units are responsible for managing the risks they incur when conducting their activities and for having controls in place that aim to ensure compliance with internal and external requirements. As part of the Internal Control Framework, Nordea has established Group control functions with appropriate and sufficient authority, independence and access to the Group Board to fulfil their mission in line with the Risk Management Framework. The Internal Control Framework ensures effective and efficient operations, adequate identification, measurement and mitigation of risks, prudent conduct of business, sound administrative and accounting procedures, reliabil- ity of financial and non-financial information (both inter- nal and external) and compliance with applicable laws, regulations, standards, super visory requirements and the Group internal rules. Group Risk (9) Group Risk is an independent second line of defence con- trol function structured to carry out risk monitoring and control in line with Nordea’s Internal Control Framework. Group Risk is responsible, in cooperation with Group Compliance, for maintaining the Risk Management Framework as part of the Internal Control Framework and for monitoring the implementation of the policies and procedures within this framework. Group Risk oversees the implementation of the financial and the non- financial risk policies and, according to a risk-based approach, monitors and controls the Risk Management Framework and must, among other things, ensure that all risks to which Nordea is or could become exposed are identified, assessed, monitored, managed and reported. Group Risk is headed by the Chief Risk Officer (CRO), who is also a member of the GLT, and reports to the President and Group CEO. The CRO is appointed, suspended and dis- missed by decision of the Board after prior consultation with the President and Group CEO. The CRO regularly reports to the Board Risk Committee (BRIC) and the Board on the Nordea Group’s risk exposure. Group Compliance (10) Group Compliance is an independent second line of defence control function responsible for monitoring and overseeing the compliance risks that Nordea is or could be exposed to. Group Compliance is also responsible for developing and maintaining the Compliance Risk Management Framework, which ensures effective and effi- cient identification and management of compliance risks in accordance with regulatory requirements and supervisory expectations. The compliance risk management lifecycle covers key compliance processes for risk identification, independent risk assessment, oversight planning, testing and monitoring, training, advice and reporting. The compliance function is headed by the Chief Compliance Officer (CCO), who is also a member of the GLT, and reports to the President and Group CEO. The CCO is appointed, suspended and dismissed by decision of the Board after prior consultation with the President and Group CEO. The CCO regularly reports to the Group Board, the President and Group CEO, the BRIC and other relevant committees. Group Internal Audit (11) Group Internal Audit (GIA) is an independent function commissioned by the Board. The Board Audit Committee (BAC) is responsible for monitoring the effectiveness of GIA within the Nordea Group. The Chief Audit Executive (CAE) has the overall responsibility for GIA. The CAE reports on a functional basis to the Board and the BAC and reports on an administrative basis to the President and Group CEO. The Board approves the appointment and dismissal of the CAE. The purpose of GIA is to help the Board, the Group CEO and the Group Leadership Team (GLT) to strengthen Nordea’s ability to create, protect and sustain value. GIA does this by providing the Board and management with independent, risk-based and objective assurance, advice, insight and foresight; assessing whether all significant risks are identified and appropriately reported by manage- ment to the Group Board, its committees and GLT; assess- ing whether all significant risks are adequately controlled; and challenging GLT to improve the effectiveness of gov- ernance, risk management and controls. GIA’s scope covers all Group activities and entities, including subsidiaries. GIA must review and provide objec- tive assurance that all activities and units, whether internal or outsourced, comply with the Group’s policies, procedures, and applicable external requirements. Based on a risk view, GIA proposes which areas within its scope should be included in the annual audit plan. The Group Board Audit Committee approves the plan. GIA operates free from inter- ference in determining the scope of internal auditing, in performing its audit work and in communicating its results. This means for example that GIA is authorised to inform the financial supervisory authorities of any matter without fur- ther approval. The CAE has unrestricted access to the Group CEO and BAC Chair and should meet with the BAC Chair informally and formally throughout the year, including without the presence of executive management. GIA is authorised to carry out all investigations and obtain any information required to discharge its duties. This includes the right to sufficient and timely access to the organisation’s records, systems, premises and staff. GIA has the right to attend and observe the meetings of the Board committees, the GLT, Nordea Group committees and forums in general and other key management decision-making forums when relevant and necessary. External audit (12) According to the Articles of Association, the auditor of Nordea must be an audit firm with the auditor in charge being an authorised public accountant. The term of office of the auditor expires at the end of the Annual General Meeting following the election. The current auditor of Nordea is PricewaterhouseCoopers Oy. Jukka Paunonen, Authorised Public Accountant, has been the auditor in charge since the 2025 Annual General Meeting. The 2025 Annual General Meeting further elected PricewaterhouseCoopers Oy as the assurer of Nordea’s sustainability reporting for the period until the end of the 2026 Annual General Meeting. Authorised sustainability auditor Jukka Paunonen acts as the responsible sustaina- bility reporting auditor. Further information about the fees paid for audit services and non-audit services is presented in Note G2.7 “Other expenses” on page 205. Report on internal control and risk management regarding financial reporting The systems for internal control and risk management of financial reporting are designed to provide reasonable assurance about the reliability of financial reporting and the preparation of financial statements for external pur- poses in accordance with generally accepted accounting principles, applicable laws and regulations, and other requirements for listed companies. The internal control and risk management activities are included in Nordea’s planning and resource allocation processes. Internal control and risk management of financial reporting at Nordea are described below. Control environment The control environment is a key component of Nordea’s internal controls and centres around the culture and val- ues, established by the Board and the GLT, and the organi- sational structure with clear roles and responsibilities. The primary governance principle is the adherence to the three lines of defence model which provides the foundation for a crucial clear division of roles and responsibilities in the organisation. For further information about the three lines of defence, see “Internal Control Framework”. The first line of defence is responsible for the ongoing risk management and for compliance with applicable rules. Risk owners in the business areas and Group functions are responsible for risk management activities. A central func- tion supports the CFO in defining standards that apply Group-wide to controls relevant to financial reporting risks. ===== SIDA 72 ===== Nordea Annual Report 2025 71 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Group organisation, cont. Appropriate controls are implemented, maintained and monitored accordingly within significant processes. Risk assessment Risk assessment in relation to reliable financial reporting involves the identification and assessment of risks of material misstatements or deficiencies. Financial reporting risk (FRR) is defined as the risk of misstatements or defi- ciencies in financial reporting, regulatory reporting, disclo- sures, tax reporting and reporting of environmental, social and governance (ESG) information. Risk management is considered to be an integral part of running the business, and the main responsibility for performing risk assessments regarding financial reporting risks sits with the business organisation. Performing risk assessments close to the business increases the possibility of identifying the most relevant risks. In order to govern the quality, control functions stipulate in governing docu- ments when and how these assessments are to be per- formed. Examples of risk assessments are the recurring Risk and Control Self-Assessments and the event-driven Change Risk Management and Approval process. Control activities The scope of the FRR control framework is designed to focus on areas where risk of material financial mis- statements could exist, that is, where the judgement of a reasonable person relying upon the report would have been changed or influenced by the inclusion or correction of the misstated item. The business areas and Group functions are primarily responsible for managing risks associated with their oper- ations and financial reporting processes. Group internal rules set out how Nordea’s operations and organisation are governed and managed (including compliance with regulatory requirements) and include the Group Accounting Manual (“GAM”), and the Group Accountable Executive FRR protocol. The Group Accounting Manual provides information on the accounting policies to be used in the Group and contains detailed reporting instructions and tools to produce the financial statements. The control structure for FRR is based on individual controls or a group of controls which are identified as principal controls that may be relied on to prevent, detect or mitigate high and critical financial reporting risks. This involves the identification and assessment of risks of financial reporting misstatements or deficiencies based on end-to-end process flows. In addition, Information Technology General Controls on systems/applications and data controls relied on in financial reporting flow are cov- ered by respective Business Areas and Group Functions. The quality assurance achieved through the manage- ment reporting process, where a detailed analysis of the financial outcome is performed, constitutes an important control mechanism associated with the reporting process. Information and communication Group Finance is responsible for ensuring compliant report- ing in accordance with accounting standards and/or appli- cable regulations and that changes are communicated to the responsible units. These are supported by detailed guidelines and standard operating procedures. Management at different levels of the organisation is provided with information related to the performance, self-assessment and testing of the internal controls identi- fied in their process. Nordea interacts with relevant subject-matter experts externally to keep up to date with changes in reporting expectations and to ensure that the financial reporting objectives are met. Nordea actively participates in relevant national and international forums, such as those estab- lished by the financial supervisory authorities, central banks and associations for financial institutions. Monitoring Nordea has established a process for regular monitoring of risk metrics, as measures of risk exposure, with the purpose of ensuring proper monitoring of the quality of the financial reporting. The Group CFO reports on the management of FRR to the BAC on an annual basis or when needed. An independent risk control function resides with the second line of defence and is responsible for identifying, controlling and reporting on FRR. In addition, GIA provides the Board with an assessment of the overall effectiveness of the governance, risk management and control processes throughout the organisation, including financial reporting. The Board, the BAC, the BRIC, the BOSC, Group Risk and GIA have important roles with respect to governance and oversight of the internal control of financial reporting at the Nordea Group. For further information, see “Board of Directors (3)”, “Board Audit Committee (4)”, “Board Risk Committee (5)”, “Board Operations and Sustainability Committee (7)”, “Group Risk (9)”, “Group Compliance (10)” and “Group Internal Audit (11)” on the previous pages. Disclosures and insider administration The objective and key principles followed in Nordea’s investor communications and the publication of financial reports are described in Nordea’s Disclosure Policy. The Disclosure Policy also describes the disclosure, dissemina- tion and storage of the information within the scope of the disclosure obligation as prescribed by rules and regula- tions. The Disclosure Policy has been approved by the Board and is available at nordea.com. Insider administration is organised in accordance with the EU Market Abuse Regulation No 596/2014 (MAR) and supplementing legislation as well as applicable national level laws and guidance from financial supervisory authori- ties. Nordea has Group-wide rules and guidelines in place to provide clear instructions for employees to facilitate their compliance with these rules and to ensure that inside infor- mation is identified and handled appropriately at all times. Insiders are identified on a case-by-case basis whenever inside information is detected and are subsequently regis- tered in a related insider register. All persons identified and registered as insiders are notified of their insider status and the restrictions and obligations that apply to them, includ- ing the prohibition against dealing in the financial instru- ment(s) to which the inside information relates until that information is made public or otherwise no longer deemed to be inside information and the insider register is closed. The responsibilities of Nordea’s insider administration also include (i) training and providing information to employees who are exposed to inside information to make sure that they are aware of the restrictions and obligations that apply to them as insiders, (ii) setting up and maintain- ing insider registers and (iii) monitoring compliance with the insider rules. The rules are in place to mitigate the risk of insider dealing and other forms of market abuse. The overall responsibility for making sure that a high level of knowledge of and compliance with these rules is main- tained lies with Group Compliance. Nordea has identified the members of the Board and the GLT as well as the Chief Audit Executive as persons dis- charging managerial responsibilities (as defined by MAR). Along with persons closely associated with them, they are required to notify Nordea and the relevant financial super- visory authority of any transaction in financial instruments issued by Nordea, executed on their account or on their behalf. Nordea discloses such reported transactions to the market through stock exchange releases. In addition to this reporting duty, persons discharging managerial responsi- bilities are prohibited from trading in financial instruments issued by Nordea during a period of 30 calendar days prior to (and including) the date of the publication of a Nordea Group interim report, half-year report or year-end report and whenever such persons are in possession of inside information regarding Nordea. For employees who participate in providing investment services or advice to customers, Nordea also applies Group-wide internal trading restrictions and transaction reporting obligations that are based on the trading rules established by, among others, Finance Finland, the Swedish Securities Markets Association and the Swedish Investment Fund Association. Furthermore, in the capacity of a company licensed to provide investment services and as a fund management company, Nordea and its sub- sidiary Nordea Funds Ltd, respectively, maintain insider registers of persons who are classified as “public insiders” pursuant to the Finnish Act on Investment Services and the Finnish Act on Mutual Funds. The holdings of securi- ties listed in Finland of such persons are public informa- tion and uploaded to the public insider register kept by Euroclear Finland Ltd. The register of holders of units in ===== SIDA 73 ===== Nordea Annual Report 2025 72 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Group organisation, cont. funds managed by Nordea Funds Ltd is also available for viewing at Nordea Funds Ltd. Principles for related party transactions Applicable laws and regulations set requirements for the monitoring and assessment of as well as the decision- making concerning related party transactions and the disclosure of executed related party transactions. Generally, Nordea’s transactions with its related parties are part of Nordea’s ordinary course of business and car- ried out according to the same criteria and terms as those of comparable transactions with other parties of similar standing. The decision-making processes have further- more been structured to avoid conflicts of interest and to comply with the statutory decision- making requirements. Nordea has defined its related parties in accordance with the applicable laws and regulations and keeps an up-to-date record of them. Relevant internal stake holders, such as customer responsible units, other relevant busi- ness units and Group functions, are informed of the list of related parties and the related restrictions in order to monitor transactions with such parties. Nordea is also bound by applicable close circle rules and has processes in place for identifying the persons belonging to the close circle of Nordea and for ensuring that any cred- its and comparable financing granted to such persons as well as any investments in an entity belonging to the close circle are in accordance with applicable laws and rules. Pursuant to Nordea’s Conflicts of Interest Policy, employees, management and the members of the Board must not handle matters on behalf of Nordea in cases where they or a closely associated person or company may have an interest that conflicts with the interests of Nordea or its customers. Nordea’s business areas and Group functions are obliged to identify, prevent and manage actual and potential conflicts of interest. The Board has the ultimate responsibility for ensuring proper processes for the identification, reporting and supervision of related party transactions as well as the proper decision-making in this respect. The BAC must assist the Board in monitoring and assessing how related party transactions meet the requirements of ordinary activities and the arm’s length terms. Related party transactions that are not part of Nordea’s ordinary course of business or are made in deviation from customary commercial terms require a decision by the Board for the related party transaction to be carried out, unless otherwise required by applicable laws and regula- tions. In respect of such related party transactions the Board must ensure that: (i) the relevant transactions have been appropriately identified, reported and controlled (ii) the Conflicts of Interest Policy has been carefully considered in the preparation and decision-making process (iii) the preparation of related party transactions includes adequate reports, statements and/or assessments. Furthermore, Nordea publicly discloses its related party transactions in accordance with applicable laws and regulations. For more information about related party transactions, see Note G10.4 “Related party transactions” on page 275. ===== SIDA 74 ===== Nordea Annual Report 2025 73 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Remuneration Nordea’s Remuneration Policy sets a clear and consistent framework for rewarding employees in a fair, competitive and responsible way, supporting Nordea’s strategy and values by promoting sustainable performance, prudent risk-taking and gender-neutral pay. Aim of Nordea’s Remuneration Policy Nordea’s Remuneration Policy supports Nordea’s ability to attract, develop and retain competent, motivated and performance‑ orient ed employees in support of its strategy; ensures a competitive and market‑aligned total reward; supports gender‑neutral remuneration via Nordea’s pay principles; aligns remuneration with sustainable results and long‑term shareholder interests, including by awarding parts of variable remuneration in shares or other instru‑ ments; and ensures consistency with effective risk manage‑ ment and regulatory requirements. Nordea applies a total remuneration approach, balancing business and local market needs with structures that are consistent with sound and effective risk management and that do not encourage excessive risk‑taking. The links between performance, risk and variable remuneration are assessed annually, covering financial and non‑financial risks (including operational, compliance and reputational risks) to ensure business relevance and regulatory compliance. Decision-making process for the Remuneration Policy The Remuneration Policy sets out Group‑wide principl es, governance and risk management and defines employees with a material impact on Nordea’s risk profile (“material risk takers”). The Board establishes the policy, taking a sound remuneration risk framework into account, and over‑ sees its implementation as prepared by the Board Remuneration and People Committee (BRPC). In addition, shareholders are asked, at least every fourth year, to adopt through an advisory vote the Remuneration Policy for Governing Bodies. This was adopted by the 2024 AGM and applies to the Board of Directors, the Group CEO and the Deputy Managing Director until the 2028 AGM at the latest. The BRPC prepares remuneration matters for the Board, including proposals for the Remuneration Policy and supplementary instructions, assessments of the policy and system, and inputs from appropriate control functions. Together with the Board Risk Committee, the BRPC assesses that remuneration systems account for all risk types, that liquidity and capital levels are consistent, and that remuneration promotes sound and effective risk man‑ agement. The BRPC also supports the Board on the Group Board Diversity Policy and Statement, monitors diversity and inclusion impacts, reviews Group Leadership Team (GLT) succession and performance, and advises on GLT structure, selection criteria and appointments. More information about the composition of the BRPC and its responsibilities is provided in a separate section of “Corporate Governance Statement 2025” on pages 58–62. Alignment with business strategy Goal‑s etting processes align business, individual goal ‑ and target‑setting and predefined risk‑adjust ed criteria with Nordea’s strategy. Financial goals (return on equity, income and cost‑to‑ income ratio) and non‑financial goals also partially linked to ESG (customer focus, people focus, executing the sustainability implementation plan and increasing green financing) formed the main Group performance goals in 2025. ESG goals are integrated into variable remuneration for the GLT, senior leaders and the wider workforce, and included in the LTIP 2025–2027. The ESG integration supports Nordea’s sustainability and climate objectives. Performance assessments apply an aligned framework with clear expectations, evaluating both ‘what’ is delivered and ‘how’ it is delivered, including specific risk, compliance and conduct criteria. All individual remuneration decisions follow sound governance (including the grandparent principle). Supporting sound risk management Remuneration risks are assessed on an ongoing basis within the Risk Committee and the non‑financial risk forums across business areas and Group functions. People risks (including Group taxonomy risks) are assessed through the Risk and Control Self‑Assessment and the compliance independent risk assessment. Nordea’s Internal Control Framework mitigates relevant risks through values and management culture, goal orientation and follow‑up, clear organisational structures, three lines of defence, the four‑eyes principle, effective internal communication and independent assessments. Additional principles include: • A Group variable remuneration funding mechanism that considers prudential and appropriate risk adjustments when setting the annual pool • Board approval of the total variable remuneration outcome before award, allowing adjustments where appropriate • An appropriate balance between fixed and variable remuneration • Control‑function input to pool setting, performance goals and outcomes • Consideration of long‑term results when setting goals • A maximum variable‑to‑fixed r atio of 200% (as decided by the 2019 AGM). Ratios above 100% apply only to a limited number of employees in line with the AGM decision, and plan outcomes are capped • Links between risks in the Risk Appetite Statement and forfeiture conditions (ex‑ant e and ex‑pos t adjustments) • Termination payments that reflect performance and do not reward failure or misconduct • Independent compensation structures for control‑ function staff predominantly based on fixed pay. Principles for deferral of variable remuneration awards and awards in instruments For material risk takers, 40–60% of variable remuneration is deferred for four to five years with pro‑r ata vesting and disbursement; the first disbursement may occur no earlier than one year into the deferral period. Deviations may apply locally. For material risk takers and certain other categories of staff, 50% of variable remuneration (both deferred and non‑deferred) is delivered in instruments (primarily Nordea shares or instruments linked to Nordea’s share price) with a post‑vesting 12‑month retention. Dividends are excluded during the deferral period. Risk adjustments, malus and clawback provisions The Risk and Remuneration Alignment Committee pro‑ vides governance and oversight for risk‑adjust ed remuner‑ ation assessments within the first line of defence, strength‑ ening accountability and ensuring a fair and transparent approach. Variable pay awards under Nordea’s main plans are based on Group, Nordea entity, business unit and indi‑ vidual results and are subject to ex‑ant e and ex‑pos t risk reduction terms and may therefore be reduced in part or in full (malus or clawback) in case of breaches, significant losses, downturns or other specified circumstances. Employees must not use personal hedging strategies to undermine or eliminate the effects of deferred variable remuneration being partly or fully cancelled. Audit of Nordea’s Remuneration Policy The BRPC follows up on the application of the Remunera‑ tion Policy and supplementary instructions within Nordea through an independent review by Group Internal Audit. Remuneration to the Board of Directors On the proposal of the Shareholders’ Nomination Board and in accordance with the Remuneration Policy for Governing Bodies, the AGM annually decides on the remuneration to the Board of Directors. In 2025 remu‑ neration was paid in cash to the Board members. Board members are not part of any variable or incentive plan. Remuneration for Board work is not paid to Board members who are employees of the Nordea Group. Further information is provided in Note G8.4 “Key man‑ agement personnel remuneration” on pages 262–264. ===== SIDA 75 ===== Nordea Annual Report 2025 74 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Remuneration, cont. Remuneration to the CEO and the members of the Group Leadership Team On the proposal of BRPC, the Board decides on the remu‑ neration for the CEO and the members of the Group Leadership Team (GLT) (and the Chief Audit Executive), including fixed and variable remuneration, pension and other terms. Nordea maintains competitive, market‑ aligned total rewards to attract and retain leaders who support strategy delivery, with pay for performance as a key concept. Arrangements are consistent with applicable regulations and promote sound risk management without encouraging excessive risk‑taking. Annual remuneration comprises fixed salary, benefits, variable remuneration (short and long term), pension and insurances. Further information about remuneration to the CEO and the members of the GLT is provided in Note G8.4 “Key management personnel remuneration” on pages 262–264. A more detailed disclosure of remuneration to the CEO and how the Remuneration Policy for Governing Bodies is applied is provided in Nordea’s 2025 Remuneration Report for Governing Bodies. Variable remuneration to the members of the Group Leadership Team GLT members participated in the Nordea Incentive Plan (NIP 2025), with a one‑year performance period and goals at Group, business area/Group function and individual level. Outcomes are paid 50% in cash and 50% in shares, subject to malus and clawback. 40% of the confirmed outcome is delivered in 2026, while 60% is deferred for pro‑rata deliv‑ ery over five years. Shares are subject to a 12‑month reten‑ tion period and no dividends are paid during the deferral period. The maximum NIP 2025 outcome is 75% of the annual fixed base salary for GLT members who also partici‑ pate in the LTIP 2025–2027. The second line of defence does not participate in the LTIP; for these roles, the NIP maxi‑ mum is 100% of the annual fixed base salary. Group‑level goals include return on equity, income and cost‑to‑income ratio as well as non‑financial goals, also linked to ESG, on customer focus, people focus, sustaina‑ bility implementation plan and green financing. ESG goals support sustainability and climate objectives. Business area/ Group function goals are both financial and non‑financial. Individual goals include risk, compliance and conduct tar‑ gets. Weightings are set individually for the CEO and leaders heading business areas or Group functions. The overall ambition for 2025 was to deliver on Nordea’s strategic priori‑ ties as outlined in the strategy. Any awards were determined on the basis of achievement in relation to the agreed goals and targets following appropriate risk adjustments. Long Term Incentive Plan 2025–2027 In 2025 the Board launched the LTIP 2025–2027 for the GLT and approximately 60 senior leaders and key employees. The plan aligns participant and shareholder interests through conditional share awards with a three‑year performance period (1 Jan 2025–31 Dec 2027), followed by deferral and retention in line with regulations. In 2028, after performance assessment against pre‑established criteria, the maximum or proportionate number of shares will be awarded; initial delivery occurs in 2028, with the remainder deferred and delivered in five equal annual portions during 2029–2033. Each delivery is subject to a 12‑month retention period; dividends are excluded during deferral. Awards may be reduced in part or in full subject to risk and compliance adjustments. Performance criteria: • Absolute and relative total shareholder return relative to the STOXX Europe 600 Banks index (40%). • Cumulative adjusted earnings per share (aEPS) (40%). • ESG scorecard (20%) covering environmental, social and governance measures, with a risk‑adjustment underpin. – Environmental: on track to achieve long‑term target for emissions reduction in lending, investments and internal operations. – Social: minimum 40% of each gender represented at top three leadership levels and relating to fair treatment of staff. – Governance: maintaining current credit rating (January 2025). Significant shareholding requirements apply, with shares to be held until the value equals 100% of gross annual fixed salary and at least until the end of GLT membership. The performance period for the LTIP covering the performance period 2023–2025 was concluded. The per‑ formance metrics for this LTIP, the LTIP 2024–2026 and the LTIP 2025–2027 are further described in Note G8.3 “Share‑based payment plans” on pages 257–262 and in the Remuneration Report for Governing Bodies. Benefits are provided as part of total reward for the Group CEO and GLT members at levels that are considered fair in relation to market practice. Notice and severance will not exceed 24 months of fixed salary in total. Pension and insur‑ ance are provided in accordance with local practice, typi‑ cally as defined contribution plans or a pension allowance; discretionary pension benefits are not used. Nordea’s remuneration structures Fixed remuneration comprises fixed base salary (reflecting role, complexity, responsibility, performance and local market conditions), allowances (role‑linked and not performance‑ rela ted), pension and insurance (aligned with local practice) and benefits (aligned with local laws, market practice and collective agreements). Nordea’s variable remuneration plans for others than the Group CEO and the Group Leadership Team Variable remuneration for employees is determined through a Group variable remuneration pool (implemented since 2020), which links overall spend to Nordea’s perfor‑ mance. The pool is set against target/expected levels and adjusted by Group performance, then distributed to busi‑ ness areas/Group functions based on scorecards; final allocations reflect individual performance against goals. The Nordea Incentive Plan (NIP) is offered to senior lead‑ ers (including GLT members, see above) and selected roles, rewarding financial and non‑financial performance. Individual awards will not exceed the annual fixed salary. For material risk takers, awards are partly in cash and partly in instruments with retention, and parts of the awards are subject to four‑ to five‑year (in certain cases three‑year) pro‑rata deferral with malus/clawback. Bonus schemes are offered only to selected groups of employees in specific business areas or units (for instance, Large Corporates & Institutions, Nordea Asset Management, Nordea Funds and Group Treasury) to drive performance and maintain cost flexibility. 2025 awards were paid in cash. For material risk takers, awards are partly in instruments with retention and are partly deferred four to five years (or three years exceptionally) with malus/clawback. Recognition Scheme rewards extraordinary performance. The scheme is not available to employees eligible for other formal annual variable plans (excluding Profit Sharing Plan). It includes malus/clawback. Profit Sharing Plan (PSP) is offered Group‑wide t o employees not eligible for other annual variable remuner‑ ation plans. It rewards achievement against financial, cus‑ tomer and ESG targets. The PSP is financially capped and not linked to Nordea’s share price. It includes malus/ clawback. Guaranteed variable remuneration (sign-on) is allowed only in exceptional cases, limited to the first year of employment and subject to a sound capital base. Compensation for contracts in previous employments (buy-outs) is allowed only in exceptional cases, limited to the first year and subject to a sound capital base. Retention bonus can be offered in exceptional cases where Nordea has legitimate retention interest and a sound and strong capital base. Other qualitative and quantitative information The actual cost of variable remuneration for executive officers (excluding social costs) For the NIP 2025 for GLT members, EUR 5.7m will be paid over five years, partly in shares and partly in cash. The estimated maximum cost of the NIP for GLT members in ===== SIDA 76 ===== Nordea Annual Report 2025 75 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Remuneration, cont. 2026 is EUR 9.1m and the estimated cost assuming 50% fulfilment of the performance goals is EUR 4.5m. Cost of variable remuneration for non‑Group Leadership Team members (excluding social costs) The actual cost of the NIP and bonus for 2025 was EUR 163.4m, not including awards to GLT members. Awards are paid partly now in cash and partly over a four‑ to five‑year period. The 2025 PSP provision was EUR 62m; each eligible employee can receive a maximum of EUR 3,200. If all stretched performance goals were met, the PSP maximum cost for 2025 would have been approximately EUR 82m. Other disclosures See Note G8 “Employee benefits and key management personnel remuneration” on pages 251–265 for more details on remuneration. See also Nordea’s 2025 Remuneration Report for Governing Bodies, which will be presented for an advisory vote at the Annual General Meeting on 24 March 2026. The Remuneration Report is disclosed with other required information at nordea.com/en/about‑nordea/corporate‑ governance/remuneration. Nordea will provide qualitative and quantitative disclo‑ sures according to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 (the CRR Regulations), the disclosure requirements in the Basel framework and the EBA guidelines for sound remuner‑ ation practices. Further disclosures will be published at nordea.com one week before the Annual General Meeting on 24 March 2026. Conflicts of Interest Policy As an international financial services provider, Nordea and its subsidiaries regularly face potential or actual conflict of inter‑ est situations. Managing conflicts of interest is relevant at both the individual and institutional level of Nordea’s organi‑ sation. Nordea is committed to promoting market integrity and all employees are required to act in a fair, honest and professional manner and in the best interests of Nordea’s customers. In order to act on these commitments and ensure appropriate governance of Nordea, it is essential to have effective controls in place regarding conflicts of interest. The purpose of Nordea’s Conflicts of Interest Policy (the “Policy“) is to outline Nordea’s approach to managing conflicts of interest and to enable the development and maintenance of an effective control environment. The Policy applies to all employees and people working on behalf of Nordea, senior management, Board members and the President and Group CEO of Nordea. The Policy also applies to all branches and subsidiaries. Both actual and potential conflicts of interest must be identified and effective measures decided upon to prevent or manage risks in respect of Nordea or its customers. Conflicts of interest arising with regard to an employee’s private interest or their past or present personal or profes‑ sional relationships are individual conflicts of interest. Conflicts of interest that do not arise from a private interest but in connection with Nordea’s organisation, Group structure, governance, different activities, roles, products, services or any other circumstances are institutional con‑ flicts of interest. In connection with each identified conflict of interest, the potential customer impact is assessed to ensure fair treatment of customers. Appropriate preventive or mitigating measures must be implemented in the form of effective organisational and administrative measures for all identified potential or actual conflicts of interest. Identified conflicts of interest are docu‑ mented in a register. All identified individual conflicts of interest or changed circumstances regarding them must be reported to the leader of the individual employee involved. All identified institutional conflicts of interest or changed circumstances regarding an institutional conflict of interest must be reported to the leader responsible for the area that the conflict of interest potentially impacts. Senior management will receive recurring, at least annual, reporting on conflicts of interest. The Group Board approves the Policy and is responsible for overseeing its implementation. To ensure objective and impartial decision‑making, Group Board members are also subject to the requirements of the Policy. The President and Group CEO and the Group Leadership Team members are accountable for implementing the Policy at Nordea while also being subject to the requirements of the Policy. ===== SIDA 77 ===== Nordea Annual Report 2025 76 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Responsible taxpayer Contributing and being a responsible taxpayer in the jurisdictions in which Nordea operates is one of the key elements in Nordea’s sustainability strategy. Reporting and communicating tax contributions in a transparent manner is a fundamental part of that strategy. In addition to its own taxes, Nordea also administrates and collects taxes such as VAT, payroll taxes for employees and withholding taxes on dividends and interests. Starting from 2023, Nordea has voluntarily published a breakdown of taxes paid and collected by jurisdiction – focus being on the four Nordic countries which are Nordea’s main mar‑ kets. The Board of Directors’ report describes Nordea’s tax governance and tax strategy and provides information on taxes paid and collected in a transparent manner with a commitment to ensure availability of this data to all stakeholders. Nordea’s approach to tax Nordea’s approach to tax aims to balance the legitimate interests of stakeholders, which comprise shareholders, customers, governments and tax authorities. This includes handling own taxes in a responsible, compliant and effec‑ tive manner, not promoting or acting as a platform for aggressive tax planning as well as being transparent around tax positions. Nordea’s policy statements on tax are described in the Nordea Tax Policy available at nordea. com. The tax policy is adopted by the Board of Directors and reviewed annually by the Board Audit Committee to ensure that emerging risks are addressed. Nordea applies tax positions consistent with the tax laws and practices of the jurisdictions in which it operates, acting both in accordance with the letter and the purpose of the tax legislation. Furthermore, Nordea is committed to applying the arm’s length principle between related par‑ ties, in accordance with the OECD as well as internal guidelines on transfer pricing. Nordea is represented in the banking associations and similar organisations in the Nordic countries and is actively engaged in advocacy in relation to existing and new tax regulations and other tax‑rela ted matters. 5,808m Total tax contribution (EUR) 2,263m Taxes paid globally (EUR) Taxes paid by the Group 2025 Taxes that are paid represent a cost to Nordea and impact its financial results. The following taxes are included: Corporate income tax Tax paid on income in the juris‑ dictions in which Nordea oper‑ ates. In some cases, this may include payments in relation to previous years as tax payments are often made in arrears or in advance. Also, accrued withholding tax on dividends and interest payments to Nordea entities is included. Social security contributions As an employer, Nordea pays social security contributions based on the remuneration paid to employees. In addition to paid social security contributions, this item includes accrued social security contributions on staff costs. VAT Nordea pays value added tax (VAT) and other sales taxes on goods and services. Nordea can only deduct or claim back a small proportion of the input VAT incurred. The part of an input VAT amount that cannot be deducted, recovered or reclaimed constitutes a tax income for the jurisdictions in which Nordea is registered for VAT purposes. Other taxes Other taxes include mainly risk tax and property taxes. Corporate income tax, 54%Social security contributions, 21% Irrecoverable VAT, 21% Other taxes, 4% 3,545m Taxes collected globally (EUR) Taxes collected by the Group 2025 Taxes collected constitute taxes that Nordea does not directly incur but col‑ lect from its share holders, customer s and employees on behalf of govern‑ ments. These include: Payroll taxes Nordea withholds income taxes and other social security contributions when paying remuneration to employees. Withholding taxes Withholding taxes refer to amounts withheld on dividends and interest payments, collected by Nordea on behalf of authorities. Net VAT collected and reported Nordea collects VAT and other sales taxes on sales of taxable products and services to customers. Nordea also reports and pays reverse charge VAT on purchases made from other countries, when applicable. Net VAT collected and reported constitutes both VAT charged on sales as well as reverse charge VAT paid on purchases made from abroad after a deduction of own input VAT has been made. It corresponds to the amounts reported on the final line in the VAT returns submitted to l ocal tax authorities. Other taxes Other taxes consist of yield tax for Danish and Swedish life and pension companies, financial transaction tax and other taxes collected by Nordea on behalf of authorities. Withheld employee taxes, 23%Withholding tax, 22% Net VAT paid, 16% Other taxes, 39% ===== SIDA 78 ===== Nordea Annual Report 2025 77 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Responsible taxpayer, cont. Tax governance at Nordea Nordea operates under the three lines of defence model as the primary principle for managing risks and compli‑ ance. To ensure coherent governance of taxes, the Nordea Group Tax function is organised as a first line of defence support function, ensuring central oversight over tax matters in the Group. Group Tax supports with advice and recommendations, both in terms of own taxes and in customer‑ and product‑related tax matters. Group Tax performs quality and risk assessments to support proper management of tax risks within the Group and is repre‑ sented in special tax forums across several business areas. In addition, Group Tax issues guidelines, for example on transfer pricing, aggressive tax planning and the Common Reporting Standard (CRS)/the US Foreign Tax Account Compliance Act (FATCA), and holds training sessions for employees on these and other tax‑ rela ted matters. Breaches in relation to applicable tax legislation, Nordea’s tax policy or any other actions relating to tax perceived as illegal or unethical may be raised through Nordea’s whistle blowing function, Raise Your Concern. To ensure tax compliance and accurate disclosures on tax in the financial statements, tax calculations prepared by the Group entities are reviewed by Group Tax, and the Group’s effective tax rate is analysed and monitored. Statement on commitment to information sharing and a fair tax system Nordea is committed to the legal obligations of informa‑ tion sharing within the tax area and to complying with international reporting standards as implemented in national laws or bi‑ or multilateral conventions as well as other national legal requirements on customer tax report‑ ing. Nordea supports local authorities in fighting tax eva‑ sion and international tax crime. The international reporting standards implemented in national legislation are mainly the Common Reporting Standard (CRS) and the International Government Agreements entered into on the basis of the US Foreign Account Tax Compliance Act (FATCA). In addition, there are EU directives on administrative cooperation, including DAC6 regarding reporting of cross‑border arrangements. The CRS is a global standard for the automatic exchange of financial account information between local competent authorities from different countries issued by the OECD. The standard requires financial institutions to identify and document financial accounts held by customers with tax residence in a country or jurisdiction other than their own, and to report this information to the local competent authorities, which will exchange the information. Over 100 jurisdictions have committed to the reporting standard and implemented it in their national legislation. FATCA is a legal framework requiring financial institu‑ tions to identify and report financial accounts held by US persons to the local tax authorities, which will subse‑ quently submit the information to the US Internal Revenue Service (IRS). Approximately 100 countries and the US have entered into information exchange agreements. DAC6 requires intermediaries and taxpayers to disclose potentially aggressive tax planning arrangements to the tax authorities to minimise the use and promotion of such schemes. The tax authorities will report the arrangements to a central database accessible by the authorities of the EU member states. In relation to DAC6, Nordea has imple‑ mented a governance procedure across its business areas to enable it to fulfil its reporting obligations as an intermediary. Moreover, Nordea has a monitoring process for fulfilling its reporting obligations as a taxpayer for DAC6 purposes. In addition to international customer tax reporting, Nordea reports financial information about customers to local tax authorities in accordance with mandatory requirements in national legislation. The reported informa‑ tion is used by the tax authorities to prepare taxpayers’ income tax returns and for control purposes. N ordea tax contribution Finland Sweden Denmark Norway Other Total EURm 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Taxes paid by the Group Corporate income tax 210 269 407 333 451 423 100 303 55 90 1,223 1,418 Social security contributions 15 11 201 190 140 142 59 56 65 59 481 457 Irrecoverable VAT 149 121 146 130 136 119 36 32 5 6 472 408 Other 3 3 78 74 5 4 1 1 0 0 87 83 Total 377 404 832 726 732 688 196 392 125 155 2,263 2,365 Taxes collected by the Group Employee payroll taxes 1 147 140 184 170 344 340 98 62 57 53 830 764 Withholding tax 547 594 162 239 0 0 58 55 9 8 775 896 Other taxes2 170 171 303 236 840 600 56 54 1 0 1,371 1,063 Net VAT paid3 109 105 197 169 161 147 96 84 6 6 569 511 Total 973 1,010 846 814 1,345 1,087 308 255 73 68 3,545 3,233 1) Withheld employee taxes for Norway 2024 incorrectly stated – the correct amount is EUR 90m. 2) Other taxes include yield tax, financial transaction tax and other taxes collected on behalf of authorities. 3) Also including state sales tax in the US (NY). Nordea is committed to transparency and accuracy in presenting the data in the section “Responsible Taxpayer”. As part of its ongoing efforts to enhance the quality of reporting, Nordea continuously reviews and improves its data collection processes and data quality and assesses where further refinement is possible. ===== SIDA 79 ===== Nordea Annual Report 2025 78 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Responsible taxpayer, cont. Fair, effective and balanced tax system Nordea supports global initiatives and measures for a fair, effective and balanced tax system. Base erosion and profit shifting (BEPS) refers to tax planning strategies used by multinational enterprises to exploit gaps and mismatches in tax rules to avoid paying tax. Within the OECD/G20 Inclusive Framework on BEPS, over 135 countries and jurisdictions are collaborating on the implementation of 15 measures to tackle tax avoid‑ ance, improve the coherence of international tax rules and ensure a more transparent tax environment. Nordea sup‑ ports the BEPS measures as a step towards fair taxation. As part of this, the OECD Two‑Pillar Sol ution aims at creating a fairer and more effective global tax system by addressing the challenges of taxation in a digitalised economy and combating profit shifting. Pillar 1 focuses on reallocation of taxing rights in relation to digital business. In 2024 Pillar 2 (Global Anti‑Base Erosion – GloBE) intro‑ duced a global minimum tax rate of 15% on the profits of multinational enterprises. Nordea ensures compliance with the GloBE rules. Statement on relationship and collaboration with tax authorities For Nordea’s tax practices, the tax authorities are the key stakeholder in all the jurisdictions in which Nordea oper‑ ates. Nordea has a professional, constructive and transpar‑ ent relationship with the tax authorities. The collaboration with the tax authorities can be characterised as good with mutual respect and truthful communication. Nordea has regular interactions with the tax authorities in each of the Nordic countries – Nordea’s main markets – where relevant tax issues are discussed. Nordea is pro‑ active and informs about significant transactions and seeks clearance through binding rulings when needed. In its tax returns, Nordea provides clear and complete information and in some cases makes use of advance pricing agreements. Audits are handled in a timely, profes‑ sional and effective manner, and feedback received from the tax authorities in audits and from other interactions is used to reduce the tax risk. Nordea’s approach is guided by its commitment to integrity, transparency and account‑ ability. In practice, this means maintaining open and con‑ structive dialogue with tax authorities, responding promptly to enquiries, and continuously refining internal processes to ensure compliance and high‑quality reporting. T ax strategy key elements Key elements in Nordea’s approach to tax Tax management • Handling own taxes in a responsible, compliant and effective manner • Not promoting or acting as a platform for aggressive tax planning • Applying tax positions con‑ sistent with the tax laws and practices of the jurisdictions in which Nordea operates Tax transparency • Reporting and communi‑ cating tax contributions and tax positions in a transparent manner • Committing to the legal obligations of information sharing within the tax area and complying with inter‑ national reporting standards Interaction with tax authorities • Acting in a professional, con structive and transparent manner towards the tax authorities and aiming to ensure a good local tax reputation ===== SIDA 80 ===== Nordea Annual Report 2025 79 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Country by country reporting The table below presents, for each country where Nordea is established (that is, where Nordea has a physical pres‑ ence), information about the businesses, the geographical area, the average number of employees, total operating income, operating profit and income tax expense. Nordea is considered to have a physical presence in a country if Nordea has a group undertaking, an associated under‑ taking or a branch in that country. Total operating income, operating profit and income tax expense are compiled from the consolidated financial statements of Nordea prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the EU Commission. The consolidated finan‑ cial statements of Nordea are published in Nordea’s Annual Report and are available at nordea.com. Nordea has not received any significant government subsidies. Country Business1 Geographical area 2025 2024 Average number of employees Total operating income2, EURm Operating profit, EURm Income tax expense, EURm Average number of employees Total operating income2, EURm Operating profit, EURm Income tax expense, EURm Denmark RB, CB, AM, LP Denmark 6,603 3,284 1,482 ‑397 6,808 3,458 1,599 ‑424 Finland RB, CB, AM, LP Finland 6,331 3,234 1,102 ‑210 6,378 3,248 1,276 ‑233 Sweden RB, CB, AM, LP Sweden 6,446 3,502 1,944 ‑404 6,430 3,471 1,836 ‑369 Norway RB, CB, AM, LP Norway 3,150 2,309 1,496 ‑385 2,971 2,395 1,560 ‑388 Poland Other Poland 5,688 386 24 ‑2 5,599 350 23 ‑5 Estonia Other Estonia 1,053 68 4 ‑1 1,096 65 5 ‑1 Luxembourg AM, LP Luxembourg 126 227 159 ‑38 138 238 159 ‑29 United States RB, CB, AM, LP New York 88 121 81 ‑32 93 136 64 ‑26 United Kingdom RB, CB, AM, LP London 64 39 16 ‑4 64 38 18 ‑4 Singapore CB Singapore 7 3 0 0 6 3 1 0 Germany CB, AM Frankfurt 11 11 7 ‑2 12 12 7 ‑2 Switzerland AM Zürich 8 5 1 0 7 4 0 0 China CB Shanghai 26 6 0 ‑1 26 7 1 0 Italy AM Rome 10 6 ‑1 0 9 7 1 ‑8 Spain AM Madrid 4 1 0 0 4 1 0 0 France AM Paris 4 2 0 0 2 1 1 0 Chile AM Santiago 2 1 0 0 2 1 0 0 Belgium AM Belgium 3 1 0 0 2 1 0 0 Austria AM Vienna 0 0 0 0 1 1 0 0 Portugal AM Lisbon 118 12 1 0 101 10 1 0 Russia CB Russia – – – – – – ‑4 – Eliminations3 – ‑1,475 – – – ‑1,363 – – Total 29,742 11,743 6,316 -1,476 29,749 12,084 6,548 -1,489 1) RB=Retail banking, CB=Commercial banking, AM=Asset management, LP=Life and Pension. Split based on Nordea’s business activities, not on Nordea’s organisational units. 2) Total operating income presented in this table is split by countries based on where Nordea has a physical presence, i.e. where Nordea has a subsidiary, associated undertaking or branch, while total operating profit presented in Note G3 is split by country based on the location of the customers’ operations. 3) Eliminations of transactions consist mainly of intragroup IT services. Nordea discloses the names of the group undertakings, associated undertakings and branches for each coun try where Nordea is established. These disclosures are pre sented in Note G9.1 “Consolidated entities” on page 266 and in Note G9.3 “Investments in associated undert akings and joint ventures” on page 267–268 of the latest financial statements of Nordea and in the list below. Denmark Nordea Investment Management AB, Danish Branch Nordea Fund Management, filial af Nordea funds Oy, Finland Finland Nordea Investment Management AB, Finnish Branch Sweden Nordea Funds Ab, Swedish Branch Norway Nordea Investment Management AB, Norwegian Branch Nordea Funds Ltd, Norwegian Branch Italy Nordea Investment Funds S.A., Italian Branch France Nordea Investment Funds S.A. French Branch Belgium Nordea Investment Funds S.A., Belgium Branch Chile NAM Chile SpA Germany Nordea Investment Management AB, German Branch Nordea Investment Funds S.A., German Branch Portugal Nordea Investment Management AB, Portugal Branch Nordea Investment Funds S.A. Portugal Branch Singapore Nordea Asset Management Singapore Pte. Ltd. Switzerland Nordea Asset Management Schweiz GmbH Spain Nordea Investment Funds S.A. Spanish Branch United Kingdom Nordea Investment Funds S.A. UK Branch United States Nordea Investment Management North America inc. ===== SIDA 81 ===== Nordea Annual Report 2025 80 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Key intangible resources Category Relationships and social Human Intellectual Brand and reputation Nature Nordea’s key intangible resources • Customer relationships built over multiple years through Nordea’s customer promise, as the primary bank for many customers • Active customer engagement levels • Relationships with business partners (for example key suppliers) and other stakeholders • Nordea’s role in societies, driven by how Nordea supports the societies in which it operates • Nordea’s employees and their performance, skills, competencies and engagement – including specialist skills that are increasingly relevant to enable modern relationship banking • An inclusive workplace and the well‑b eing and health of Nordea’s employees, enabling them to generate positive contributions • Continuous development and training of employees • Proprietary data and insights about customers and markets in which Nordea operates • Internal models that capture and codify these insights for optimised decision‑m aking • Intellectual property created through innovation and technology and process development adding positive value to products and services • The trust and value associated with Nordea, supported by brand intellectual property rights • Energy, water and other natural resources as well as healthy ecosystems Role in business model and value creation • As a relationship bank, strong customer relationships enable Nordea to provide better support across a wider range of financial needs • Relationships with business partners and other stakeholders extend Nordea’s internal capabilities, capacity and flexibility to operate and innovate • Nordea’s employees and their performance, skills, compe‑ tencies and engagement as well as well‑b eing are key to implementing its relationship banking model in a c ompetitive and sustainable way • A diverse and gender‑ba lanced leadership composition and succession pipeline enable strong and stable leadership and help Nordea mirror and serve customers better • Continuous development and training of employees, including specialist skills for example in technology, data and analytics, keeps the bank and its employees competitive and relevant for customers now and in the future • Proprietary data and insights help Nordea make better commercial and risk‑r elated decisions, allowing the bank to safely operate and serve customers while managing financial and non‑f inancial risks • Intellectual property enables Nordea to add value to its services and operations (for example by improving customer experience and increasing operational efficiency through Nordic scale) • A lever for strong customer relationships, demand generation and pricing power • Resilience and risk mitigation • Natural resources and ecosystems are important enablers of value creation for a large share of Nordea’s customer segments, for example agriculture and real estate. As such, they play an important role for Nordea through its customers Key data points 2025 • 5 million digital customer engagements • Approximately 29,000 full‑t ime equivalent employees in total, including approximately 4,300 in the Technology organisation • Leadership gender split: 56% men, 44% women • 82% of employees have a personal development plan • Average time spent per employee on training: 16.3 hours • Thousands of applications that generate data • 99% of customer interactions are digital • 1.6 billion personalised in ‑a pp actionable insights 1 • Continued Nordic uplift in active brand consideration and good reputation • See “Sustainability Statement” on pages 81–190 1) Yearly figure is estimated based on the activity level in September 2025. ===== SIDA 82 ===== Nordea Annual Report 2025 81 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other TABLE OF CONTENTS Sustainability s tatement General information 82 Environmental information 105 EU Taxonomy disclosures ............................................................105 E1 Climate change .............................................................................110 E4 Biodiversity and ecosystems ...............................................151 Social information 156 S1 Own workforce ............................................................................156 S4 Consumers and end-users ....................................................167 Governance information 175 G1 Business conduct ....................................................................... 175 Appendix 181 EU Taxonomy disclosures (cont.) ............................................ 181 “ This statement demonstrates our progress in building resilience and transitioning together with our customers – in line with our strategic sustainability priorities.” Anja Hannerz Head of Group Sustainability Climate and energy Preferred Nordic transition partner READ MORE E1 CLIMATE CHANGE Nature Expert on nature-related risks and oppor tunities READ MORE E4 BIODIVERSITY AND ECOSYSTEMS Financial well-being Personal, accessible and incl usive adviser READ MORE S4 CONSUMERS AND END-USERS Inclusive and safe societies Responsible financial services provider suppor ting human rights READ MORE S1 OWN WORKFORCE G1 BUSINESS CONDUCT ===== SIDA 83 ===== Nordea Annual Report 2025 82 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information Our strategic vision for sustainability is to be the preferred financial partner in the Nordic transition to net zero – transitioning and growing together with our customers. Sustainability is integrated into our Group strategy, with related strategic priorities organised around four themes: climate and energy, nature, financial well-being, and inclusive and safe societies. Strategic sustainability priorities We believe that sustainability builds competitive advan- tages for corporates and institutions, and resilient, inclusive and safe societies. It is also at the core of who we are: a fact reflected in our commitments, policies and customer offer- ing, and how we organise our operations and manage risks. As the largest financial services group in the Nordics, we take responsibility for mitigating potential negative impacts associated with our business activities and con- tributing to positive societal impacts and financial stability. Our sustainability-related efforts are underpinned by four themes, each informed by the outcome of our 2025 double materiality assessment: climate and energy, nature, finan- cial well-being, and inclusive and safe societies. Climate and energy Climate change is a global challenge requiring global action. We are committed to supporting a just transi- tion towards a net-zero emissions economy across our value chain, enabling the transition both for individual customers and on a societal level. Our desired position is to be the preferred Nordic transition partner. Nature Nature is the foundation of a resilient economy and financial stability. We seek to understand and manage our impacts and dependencies on biodiversity and ecosystems – and to help make the nature agenda financeable. Our desired position is to be a financial expert on nature-related risks and opportunities. Financial well-being Financial well-being fosters stability and resilience. We aim to support the financial well-being of individuals and households across the Nordics, while addressing risks and barriers that could make such a state harder to attain. Our desired position is to be a personal, accessible and inclusive adviser. Inclusive and safe societies Responsible financial services are fundamental to building safe, inclusive and resilient societies. We want to help people engage with the financial system safely, fairly and with confidence, while advancing respect for human rights and supporting financial stability. Our desired position is to be a responsible financial services provider supporting human rights. To meet our ambitions under each sustainability theme, we have identified three focus areas where we can make a difference through our financing, investments and internal operations: Offering: support customers’ transitions as a leading provider of sustainable and transition finance Engagement: actively engage to manage impacts and risks Resilience: further integrate ESG factors into core processes to strengthen long- term resilience EUR 235bn in sustainable financing facilitated during the period 2022–25 7 new Group-level 2030 targets to support our strategic sustainability priorities ===== SIDA 84 ===== Nordea Annual Report 2025 83 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Offering We deploy capital, invest and provide advice to help our customers transition to a more sustainable future. Our sustainability-re- lated product and service offerings are our lever to support our customers’ sustainable practices and enable sustainable choices. We aim to be the pre- ferred financial partner for customers in all stages of transition. More information on our customer offering can be found on pages 83–84. Engagement Our size and strength as a leading finan- cial services group allow us to actively and credibly engage with customers, investee companies and other stakeholders to support and advance the transition. Detailed information on our stakeholder engagement can be found in the topi- cal sections “E1 Climate change”, “E4 Biodiversity and ecosystems”, “S1 Own workforce” and “S4 Consumers and end-users”. A general overview is provided on pages 86–87 below. Resilience We have adopted a long-term perspective and believe that companies with sustaina- ble business models carry lower risk. Helping cus- tomers build resilience therefore goes hand in hand with future-proofing our business. To main- tain our financial strength and strong capital posi- tion – and thus our ability to support society and contribute to economic sustainability – it is crucial that we understand and manage sustainability-re- lated impacts, risks and opportunities. See pages 91–94 for information on how we identify and assess these matters. Sustainability-related offering Our ESG-related product and service offerings enable us to support sustainable practices and actively engage with customers and investees. They are therefore important for executing our strategic sustainability priorities and achiev- ing our targets. They also make it possible to incorporate ESG factors into our funding and liquidity strategy, includ- ing through sustainability-related funding activities. Over the past couple of years there has been a signifi- cant increase in the uptake of our sustainability offering, accelerated by customer demand and the strengthening of our product range, advice and engagement. With our experience and expertise in sustainability-linked and green lending, ESG-focused investment products and active ownership, we are in a good position to continue supporting customers’ and investee companies’ transitions to a sustainable future. Sustainable financing and facilitation We offer a range of sustainable financing solutions that broadly cover transition financing and the financing of sustainable activities and projects. Our offering includes lending products, such as green loans and sustainability - linked loans, and facilitating customers’ access to capital market financing, for example green, social, sustainable and sustainability-linked bonds. This is presented in the “Sustainable financing” table to the right. Our sustainable financing adheres to and takes into account policies and guidelines, both internal and external. Our sustainable finance advisory teams support our cus- tomer relationship and debt origination teams, enabling us to link offerings to customers’ sustainability objectives and material ESG factors, and align them with relevant sus- tainable financing criteria. In 2025 we helped facilitate EUR 50bn in sustainable financing, predominantly for large corporate and institu- tional customers. This corresponds to the full deal value of the facilitated corporate transactions and not only our apportioned share. In total, we facilitated 159 green, sus- tainable, sustainability-linked and social bond transac- tions. Together with our green and sustainability-linked loans, this has enabled us to exceed our 2025 target of facilitating at least EUR 200bn in sustainable financing. Sustainable financing Corporates Households Public entities and Financials 2025 2024 2023 Green loans, EURm1 Loans in green categories2 12,463 21 294 12,778 11,121 9,902 – of which green buildings 9,839 18 1 9,859 8,863 8,042 – of which renewable energy 1,249 2 – 1,251 1,186 1,125 – of which pollution prevention 555 – 229 784 613 476 – of which sustainable management 280 – 20 300 166 122 – of which energy efficiency 391 0 43 434 165 84 – of which clean transportation 149 1 0 150 127 53 Green mortgages3 – 2,817 – 2,817 1,988 1,250 – of which Sweden – 2,538 – 2,538 1,785 1,209 – of which Norway – 273 – 273 197 35 – other – 5 – 5 5 5 Total 12,463 2,838 294 15,595 13,109 11,151 Sustainability-linked loans, EURm4 – of which drawn loans 9,091 – – 9,091 9,264 8,600 – of which undrawn commitments 9,345 – – 9,345 8,589 10,661 Total 18,436 – – 18,436 17,853 19,261 1) Loans sold as green fulfilling the Nordea green funding framework criteria. Excluding loans reclassified as green by Nordea, as well as off-balance sheet volumes for exposures. 2) Household loans which are sold as green by the Nordea mortgage entities and fulfil the Nordea green funding framework criteria (i.e. green mortgages) are excluded from the figures reported under “Households”. 3) Includes household loans which are sold as green by the Nordea mortgage entities and fulfil the Nordea green funding framework criteria (i.e. green mortgages). 4) Ancillary products are excluded from the reported figures. Sustainable finance facilitation 2025 2024 2023 Annual volume of facilitated transactions, EURm 50,006 50,1412 76,955 Annual number of facilitated corporate transactions 1 262 259 245 1) Includes green, sustainable, sustainability-linked and social bond transactions and green and sustainability-linked loan transactions. 2) Due to improved data quality, this figure has been restated from the amount reported in 2024 (49,948). The restatement represents an adjustment of 0.4%. Total facilitation of sustainable financing, EURbn 2025 target2025202420232022 58 135 77 50 185 50 235 200 ===== SIDA 85 ===== Nordea Annual Report 2025 84 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Sustainability-focused investment offering As the largest financial services group in the Nordics, we can have a positive impact through the ESG-focused investment advice, products and support we offer to customers. Nordea Sustainable Selection is the name for our fund offering with enhanced sustainability criteria. It was estab- lished in 2018 to help our Nordic customers navigate the wide variety of sustainability-focused products available in the market. The offering is based on a framework where both the product provider and the product itself need to fulfil a set of sustainability criteria, and includes both Article 8 and Article 9 products as set out in the EU Sustainable Finance Disclosure Regulation (SFDR). In 2024 we launched a new product category called Sustainable Selection Improve. Products in this category have a strong focus on active ownership and the portfolio companies have clear and measurable engagement targets to improve their sustainability profiles. We will continue to develop and grow our sustainability-focused product offering as the market matures and new customer demands emerge. In 2022 we set a target for gross inflows into Nordea Sustainable Selection funds to reach 33% of total fund gross inflows by 2025 as a means of contributing to our 2030 climate target to reduce emissions in the investment portfolio by 40–50% compared with 2019 levels. By the end of 2025 the share of gross inflows into Nordea Sustainable Selection funds amounted to 22%. The share of gross inflows into Nordea Sustainable Selection funds in Personal Banking was 34%, but we were not able to meet the target in other internal distribution channels as customer preferences for Sustainable Selection products had not developed in line with the assumptions made at the time the target was set. We are still on track to meet our climate targets for 2030. Our climate targets are fur- ther described in “E1 Climate change”. Sustainability-focused investments 2025 2024 2023 SFDR Article 9 products1 AuM in EURm 12,461 12,760 13,113 Share in relation to total AuM in NAM (%) 3.8 4.5 5.2 SFDR Article 8 products2 AuM in EURm 227,347 199,895 160,860 Share in relation to total AuM in NAM (%) 70.0 69.9 64.1 Nordea Sustainable Selection products AuM in EURm 93,936 82,591 60,290 Share in relation to total AuM in NAM (%) 28.9 28.9 24.0 Gross inflows into Nordea Sustainable Selection universe (%) 3 22 23 22 1) Products with sustainable investment as their objective. 2) Products that promote environmental and/or social characteristics. 3) 2025 target: gross inflows from the Nordea Sustainable Selection universe to account for 33% of total fund gross inflows. Sustainable funding Our sustainable and sustainability-linked finance products are central to the incorporation of ESG factors into our funding and liquidity strategy as they enable sustainable investment options for pension funds and other bond buyers. Our green funding framework and sustainability- linked loan funding framework define the assessment cri- teria and practices for managing proceeds and thus fur- ther support the integration of sustainability-related con- siderations into our core operations. In 2025 we issued more than EUR 5bn in sustainable funding across five cur- rencies, bringing the total outstanding sustainable issu- ance to above EUR 17bn. Green bonds tend to have lower yields and attract stronger investor demand than conventional bonds. The cost of fund benefit or “greenium” that we receive for green bonds is transferred to the business areas on a quarterly basis. 2023–25 targets Status Facilitate more than EUR 200bn in sustainable financing during the period 2022–25. Target met Grow gross inflows from the Nordea Sustainable Selection universe so as to account for 33% of total fund gross inflows by the end of 2025. 22% ===== SIDA 86 ===== Nordea Annual Report 2025 85 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Our value chain Nordea Capital and liquidity Goods and services Investments Investees Deposits Customers Funding and treasury Investors Financial products and services Lending Customers Procurement Suppliers and partners Services Customers Internal functions and controls Broader society and supervisory authorities Upstream Products & services purchased Downstream Use of products & services Own operations Internal functions, governance and controls Workplace Data and technology Employees Business model and value chain We are the leading financial services group in the Nordics. In 2025 we were present in 20 countries, including our four Nordic home markets – Denmark, Finland, Norway and Sweden. With our financial strength and strong market position, we can have a considerable impact through our operations and value chain. As a financial institution, we act as an intermediary between, on the one hand, stakeholders with excess capi- tal, such as investors and depositors, and on the other, households and corporates with capital needs. We create value by facilitating the interaction between the parties involved through financial services, for example payment solutions and advice. Efficient channelling of capital can support economic growth while helping our customers realise their dreams and aspirations. We have a well-diversified universal banking business model. As its starting point, our business model is aimed at enabling: • customers to rely on us to support their financial needs • investors to look to us to pay consistent and attractive dividends • employees to enjoy productive careers with us • local communities to benefit from the role we play in them. Our upstream value chain is characterised by goods and services purchased by us and capital and liquidity pro- vided to us. Own operations are characterised by internal functions, governance and controls – including physical workplaces, data and technology, and employees. Our downstream value chain is characterised by financial products and services that we provide directly to custom- ers, including banking products, capital market products, savings products, asset management services, and life and pension products. We maintain a broad and diverse shareholder base, which includes global and Nordic institutional sharehold- ers, over 590,000 private individuals across Nordic coun- tries, and numerous pension fund investors representing the interests of millions more individual investors. For us, close collaboration with suppliers is critical to our ability to provide customers with high-quality prod- ucts and services, and thus to our success. The most significant supplier categories, based on the amount spent, are IT; people, insurance and legal; and premises and facility management. Our treasury function is responsible for funding and liquidity management, and the related market risks on the balance sheet. The aim is to ensure a strong and sustaina- ble balance sheet that is compliant with regulations, while managing our net interest margin within the overall risk appetite and supporting the business areas’ ability to serve customers in the best possible way. As part of our funding operations, we issue long-term debt instruments, including green and sustainability-linked bonds, which are usually listed on public stock exchanges and held by vari- ous institutional investors globally. Each of our business areas is responsible for providing services to its customer segments and is fully accountable for its income, costs, risks, customer experience, invest- ment decisions and capital management. The business areas are united under a single pan-Nordic operating model and share the same Group functions, which ensures optimal delivery and a competitive cost structure. Alongside increasing accountability, the model ensures we can effectively serve customers who may interact with us in different capacities – whether as private individuals, business owners or clients building their financial portfo- lios. Our head count by geographical area is presented in “S1 Own workforce” on page 164. Our products and services comprise a broad range of household banking services, including mortgages and consumer loans, credit and debit cards, and a wide selec- tion of savings, life insurance and pension products. In addition, we offer a wide range of corporate banking ser- vices, including business loans; cash management, pay- ment and account services; risk management products and advisory services; debt and equity-related products for liquidity and capital raising purposes; corporate finance; institutional asset management services; and cor- porate life and pension products. We also distribute gen- eral insurance products. Our revenue is presented in the financial statements on page 195. ===== SIDA 87 ===== Nordea Annual Report 2025 86 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Interests and views of stakeholders We are committed to building and maintaining strong and trusted relationships with our stakeholders. To this end, we continually seek insights into their expectations and respond in a timely manner with relevant actions and engagement. Our interaction with stakeholders informs our sustainability priorities and related projects and changes to processes. For instance, we draw on stakeholder input in our financial materiality assessment of climate- and nature-related risk drivers, the outcome of which informs our governance, internal processes, internal rules and busi- ness plans and thus supports the development of sustaina- ble business strategies and risk management throughout the organisation. This way, stakeholder interaction ulti- mately informs, for example, our internal capital allocation and the measures we implement to reduce the risk of customers being exposed to fraud. The double materiality assessment (DMA) and related stakeholder engagement were important input for the updated strategic sustainabil- ity priorities developed in 2025. For more information on climate- and nature-related risk drivers, see “E1 Climate change” on page 110 and “E4 Biodiversity and ecosystems” on page 151. For more information on fraud prevention, see “G1 Business conduct” on page 175. The interests and views of stakeholders are shared with the Board of Directors and the Group Leadership Team (GLT) as an integral part of our sustainability work. See pages 88–90 for further details on how sustainability top- ics are addressed by the Board of Directors and the GLT. Stakeholder engagement Who they are What they expect How we engage Our actions Customers • Households • Small and medium-sized companies • Large corporates and institutions • High net worth individuals • Convenient and easy access to personalised, expert advice • A broad range of competitive financial products and services • Support in making sustainable choices • Sustainable financing • A safe and trusted financial partner • Collecting customer feedback through advisory and digital channels, including complaint mechanisms • Engagement with corporate customers on ESG factors in general and net zero transition in particular • Engagement through industry organisations on sector- specific topics • Expanded range of products and services and improved security for customers • Focused on providing consistent omnichannel experience to improve customer satisfaction • Provided learning opportunities in local communities to promote financial well-being and support customers with less digital experience • Engaged with and supported customers in their net zero transition planning • Assessed customers’ sustainability preferences and further expanded the Nordea Sustainable Selection offering • Improved industry credit policies to address sector-specific topics Employees • Approximately 29,000 full-time equivalent employees from all over the world • A responsible employer • Fair employment terms • Professional development opportunities • A productive, healthy and safe working environment • A diverse and inclusive workplace • Recognition • Highly competent colleagues • High-quality and authentic leadership • Quarterly People Pulse employee engagement surveys • Performance, learning and development (PLD) dialogues and development plans • Cooperation with employee/union representatives • Employee resource groups • Clear expectation setting through our Code of Conduct • Training and learning • Leaders and leadership • Closely tracked employees’ perception of Nordea in various areas, including working conditions, learning and development and diversity and inclusion, through quarterly People Pulse surveys • Held regular PLD dialogues, created development plans and provided relevant learning curricula to support professional development • Maintained a hybrid working model, enabling employees to combine working together at the office with working from home • Set targets to further improve gender balance and employee perception of diversity and inclusion • Continued to implement our leadership principles to guide leaders’ everyday work, including fostering inclusion • Further improved our occupational health and safety management system to strengthen our approach to providing a great working environment • Made progress towards our ambition and carried out targeted actions to help close the gender pay gap ===== SIDA 88 ===== Nordea Annual Report 2025 87 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Who they are What they expect How we engage Our actions Investors • More than 590,000 private shareholders across the Nordics • Large institutional investors • Debt investors • Rating agencies • Strong financial performance • Long-term growth • Shareholder returns • Long-term business strategy • Timely and transparent communication • Sustainability commitments • Investor calls, meetings and conferences • Annual General Meeting (AGM) • Quarterly and annual reporting • ESG ratings • Held our Capital Markets Day to introduce and explain our new business strategy to the investment community • Held individual investor meetings, ran questionnaires and hosted our AGM to gain insights into expectations and needs • Incorporated additional sustainability disclosures into our quarterly and annual reporting • Improved ESG rating scores • Continued to implement share buy-backs, supported by our capital and dividend policies Suppliers • Close to 1,600 contracted suppliers • Adherence to contractual terms • Timely payment • Responsible buyer behaviour • Dialogue with prospective and existing suppliers through contracting and monitoring • Clear expectation setting through our Supplier Code of Conduct • Engagement with suppliers in high-risk and high-impact sectors • Continued to work towards common targets in areas such as net zero transition, human rights and labour rights • Conducted an in-depth human rights impact assessment of the technology sector to identify and assess impacts on people • Implemented a tool to assess suppliers’ transition plans and track engagement in order to focus our efforts on where they have the highest impact Authorities • European Central Bank (ECB) • European Banking Authority (EBA) • National supervisory authorities • Market authorities • Wide spectrum of policymakers and industry associations • Adherence to evolving standards • Accurate and professional implementation of regulatory and supervisory requirements • A compliant approach to climate-related and environmental risk management • Sound and reliable processes for preventing financial crime and fraud • A comprehensive risk appetite framework implemented at the Group, business area and entity levels for a sufficient risk perspective in decision-making • Interactions with supervisors at the national and EU levels • Provision of expert opinions in public consultations • Participation in data collections and stress test activities • Engagement with policymakers and industry associations on regulatory changes • Interacted with supervisors on an ongoing basis (the ECB at the Group level and the national supervisors at the country level) • Provided our expert opinion on regulatory proposals at the national and EU levels to ensure that current and new regulation better takes into account impacts on the financial industry and customers • Enhanced quantification methods to assess ESG-related impacts and risk exposures more effectively • Embedded insights from our materiality assessment on climate- and nature-related risk drivers in governance, internal processes, internal rules and business plans to support the development of sustainable business strategies and risk management throughout the organisation (including in line with the EBA Guidelines on the management of ESG risks in force since January 2026) • Developed products and services to strengthen our measures to prevent financial crime and fraud Broader society • General public • Media • Non-governmental organisations (NGOs) • Investees • Educational institutions • Aspiring entrepreneurs • Accountability for the impact of operations • Transparent communication on actions and progress • Presence in society and dialogue with stakeholders • Support to improve financial and digital literacy • Support for entrepreneurship • Support for vulnerable groups • Transparent processes and engagement related to sustainability • Proactive information sharing, including through media briefings, and availability to handle media enquiries • Regular NGO meetings and systematic information sharing through responses to NGO questionnaires • Engagement with investee companies to address ESG- related risks and opportunities • Partnerships with local and national organisations focusing on financial skills, entrepreneurship and social belonging • Own initiatives related to financial skills, entrepreneurship and social belonging • Shared information and facilitated dialogue on our sustainability work and its impact on the real economy and wider society • Helped build financial skills, foster entrepreneurship and champion social belonging through participation in own initiatives and partnerships • Continued to develop our sustainability policy framework to support and challenge customers and investees needing to transition to a more sustainable future • Promoted sustainability practices in accordance with Nordea Asset Management’s Responsible Investment Policy through more than 1,300 engagements and over 3,300 AGMs • Considered NGO feedback in the development of our approach and improved transparency on topics, sectors and progress ===== SIDA 89 ===== Nordea Annual Report 2025 88 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Active stakeholder engagement We continually engage with all key stakeholder groups, in particular customers and investee companies, to under- stand the sustainability challenges and opportunities they face in their business environments. This enables us to address material sustainability matters and turn our sus- tainability-related commitments into concrete action. Our approach prioritises dialogue over disengagement as long as we assess the engagement as meaningful. We measure stakeholder engagement in different ways, depending on our relationship with the stakeholder and the nature of the engagement. Selected active engage- ment measures are presented in the table below. Details on our engagement with employees are presented in “S1 Own workforce” on page 160, while our our community engagement is described in “S4 Consumers and end- users” on page 167. Active engagement 2025 2024 Customer preferences Share of assessed customers expressing a sustainability preference (%) 41 43 Active ownership engagement AGM voting 3,399 3,554 Engagements with investee companies 1,391 1,393 ESG ratings S&P Global CSA Score 73 70 MSCI ESG Rating AA AA ISS ESG Corporate Rating C+ (Prime) C+ (Prime) Sustainalytics 13.1 (low risk) 12.3 (low risk) Employee engagement Response rate for People Pulse survey (%) 85 85 Supplier engagement Suppliers subject to sustainability- related engagement 127 98 Sustainability governance Board of Directors Our Board of Directors approves our Group strategy, where sustainability is embedded, and has ESG oversight responsibilities encompassing governance, strategy, target setting and operationalisation. The Board of Directors is ultimately responsible for ensuring we maintain an effec- tive internal control system covering, among other things, risks driven by ESG-related factors. The Board of Directors has also established our overarching policy on ethics and business conduct (Group Board Directive on Code of Conduct) and sustainability policy (Group Board Directive on Sustainability). Composition and competence of the Board According to our articles of association, the Board of Directors must consist of between 6 and 15 members. The current Board of Directors consists of 12 ordinary members and 1 deputy member. Of these, 10 were elected by the Annual General Meeting (AGM) in March 2025. In addition to the Board members elected by the AGM, 3 ordinary members and 1 deputy member are elected by Nordea employees. After one stepped down in September 2025, we finished the year with two ordinary and one deputy employee-elected Board members. The Board of Directors considers all its members to be independent of Nordea’s significant shareholders and all members elected by the 2025 AGM to be independent of Nordea in accordance with the Finnish Corporate Governance Code. No Board mem- ber elected by the 2025 AGM is employed by Nordea or works for Nordea in an operational capacity. The employ- ee-elected Board members are employed by the Nordea Group and are therefore not independent of Nordea according to the Finnish Corporate Governance Code, but all of them are considered to be non-executive members. The Shareholders’ Nomination Board presents to the AGM proposals concerning the election and remuneration of members of the Group Board of Directors and other tasks assigned in its charter. It strives to ensure that the Board of Directors as a whole has a fair and balanced representation Sustainability governance structure Board of Directors Board Remuneration and People Committee Board Operations and Sustainability Committee Board Audit Committee Board Risk Committee President and Group CEO in the Group Leadership Team Sustainability and Ethics Committee Risk CommitteeAsset and Liability Committee Business areas and Group functions Sustainable Funding Committee ESG Operational Steering Committee ESG Reporting Subcommittee Reputational Risk Committee Responsible Investment Committee Subsidiary ESG committees Executive Credit Committee of gender and other diversifying factors. Among other things, the Board of Directors should have a composition aligned with our Diversity Policy, represent each of our Nordic operating countries, include different educational and professional backgrounds, and be age diverse. To ensure the Board of Directors as a whole is suffi- ciently diverse and skilled, including in sustainability mat- ters, the Shareholders’ Nomination Board evaluates recruitment needs on an ongoing basis. It also takes into account input provided by the Chair of the Board regard- ing competencies and skills needed. The Board of Directors receives dedicated training in ESG-related topics as part of the annual plan addressing its collective training needs. The training takes into account regulatory and supervisory requirements and in 2025 covered financial well-being and relevant risk per- spectives, among other things. All shareholder-elected Board members have been assessed to have good or expert-level skills and knowl- edge regarding sustainability, green transition and busi- ness conduct matters. ===== SIDA 90 ===== Nordea Annual Report 2025 89 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Geographical representation Nordic countries 70% United Kingdom 20% Europe (excluding Nordics) 10% Gender diversity Male 60% Female 40% Board committees The Board committees assist the Board of Directors in pre- paring matters falling within its competence and making decisions in matters it has delegated. Their duties and working procedures are defined in their respective char- ters. In general, they do not have autonomous deci- sion-making powers, and each one regularly reports on its work to the Board of Directors. We follow legal require- ments and comply with the Finnish Corporate Governance Code in matters related to Board committees. The Board Operations and Sustainability Committee (BOSC) assists the Board of Directors in fulfilling its ESG oversight responsibilities and receives quarterly updates on the implementation of sustainability-related measures supporting the Group business strategy. The Board Audit Committee (BAC) assists the Board of Directors by moni- toring the Group’s financial and sustainability reporting processes and reviewing the annual consolidated sustain- ability reporting. The Board Risk Committee assists the Board of Directors in fulfilling its oversight responsibilities concerning risk management and frameworks, controls and processes relating to ESG factors as drivers of existing risk, risk appetite and risk materiality. The Board Remuneration and People Committee prepares and pre- sents proposals to the Board of Directors regarding remu- neration, including the integration of ESG KPIs into remu- neration programmes. It also supports the Board of Directors in monitoring the impact of Group diversity and inclusion policies and practices. Board committee members are appointed by the Board of Directors and must collectively have sufficient expertise in topics relating to the work of their committee. New committee members receive introductory committee- specific training and other appropriate training, and each committee regularly develops its knowledge and compe- tencies. As understanding and managing ESG-related impacts, risks and opportunities is crucial to maintaining financial and capital strength, such impacts, risks and opportunities must always be considered in Board com- mittee recommendations to the Board of Directors. Board skills matrix and information on Board composition 1 Sector and product knowledge and experience1 Board members’ knowledge, skills and experience2 Banking and finance Insurance industry Strategy and business ESG and green transition Digitalisation, IT, data and cybersecurity Expert knowledge Good knowledge Basic knowledge 1) Relevant subset of sectors and products assessed as part of the 2025 Nordea Board evaluation. 2) Excluding Employee Elected Board members. Management The President and Group CEO (hereafter “Group CEO”) leads the management of the Nordea Group in accordance with external and internal frameworks, which also regu- late the division of responsibilities and interaction between the Group CEO and the Board of Directors. The Group CEO is accountable to the Board of Directors for managing the Group’s operations and organisation, works closely with the Board Chair to plan Board meetings, and is responsible for developing and maintaining effective systems for reporting and internal control within the Group. To help secure effective oversight and manage- ment of Group-wide risks, the Group CEO also appoints Group Accountable Executives (GAEs) for specific risk areas. The GAEs’ responsibilities include ensuring an ade- quate policy framework is in place for managing their respective risk areas. The Group Leadership Team (GLT) supports the Group CEO in managing the Group. GLT members are responsible for the performance, operations, risks, resources and development of their respective business areas or Group functions. GLT members work together with and report directly to the Group CEO. In line with applicable regulations, the parent bank, Nordea Bank Abp, has a Deputy Managing Director (cur- rently the Chief Legal Officer). The Group CEO and the Deputy Managing Director have been assessed to have sufficient knowledge, skills and expertise regarding finan- cial services; the Group’s products; sustainability matters relevant to the Group’s business model, strategy and operations; and related material impacts, risks and oppor- tunities. To further enhance their competence and access to relevant expertise, they receive dedicated training in ESG areas as part of their annual training. To ensure ESG-related items are integrated into the risk management cycle, a sustainability and ESG policy frame- work is in place. The framework is based on the Group Board Directive on Sustainability and the Group Board Directive on Risk, and covers both aspects of double mate- riality. At the management and management committee levels, ESG-related considerations are integrated into the existing processes for decision-making, risk management and control, and escalation. The Chief of Staff is accountable for the development of our strategic sustainability priorities and the analysis of emerging topics, ensuring our sustainability agenda remains aligned with developments in the business envi- ronment and our long-term net zero commitment. The Chief of Staff proposes strategic sustainability priorities and sustainability targets for approval by the Group CEO and works with the business areas to ensure their strate- gies are consistent with the Group-level strategic sustaina- bility priorities and sustainability targets. For an overview of our targets related to material ESG-related impacts, risks and opportunities and the related monitoring pro- cesses, see “E1 Climate change” on page 124 and “S1 Own workforce” on page 163. The gender balance at our top management levels is disclosed in “S1 Own workforce” on page 165. ===== SIDA 91 ===== Nordea Annual Report 2025 90 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Group-wide committees The Sustainability and Ethics Committee (SEC) is a CEO- appointed committee tasked with facilitating the integra- tion of sustainability into our business strategy and sup- porting the Group CEO, GLT, Group Board of Directors and BOSC in fulfilling their oversight responsibilities concern- ing sustainability. It supports the integration of ESG topics into our internal frameworks and helps ensure appropriate implementation to achieve the Group-level sustainability targets. The SEC is also responsible for influencing and fol- lowing our status and progress regarding ethics and cul- ture in line with our purpose and values. This involves advising the Group CEO on whether the Group should par- ticipate in or withdraw from external voluntary commit- ments related to sustainability and advising the business areas regarding ethical business dilemmas. The SEC is made up of representatives from our business areas and Group functions. The Group Risk Committee promotes interaction and coordination within the Group on matters related to risk. With respect to sustainability, it is responsible for oversee- ing the integration of ESG risk drivers into the assessment of existing risks – which also supports the double materi- ality assessment (DMA) and other processes. The Asset & Liability Committee and its sub-committee, the ESG Reporting Subcommittee, support the preparation of quantitative sustainability information as outlined in Article 8 of the EU Taxonomy, the Pillar 3 disclosure requirements and the Corporate Sustainability Reporting Directive. To ensure sustainability is integrated into all business areas and Group functions, a Group-wide implementation programme has been run since 2021, with dedicated work streams and an operational steering committee. The pro- gramme’s progress has been monitored by the SEC, the GLT and the BOSC on a quarterly basis. Approach to sustainability matters Our material impacts, risks and opportunities related to sustainability matters are identified through our annual double materiality assessment (DMA), which is described in detail on pages 91–93. The outcome of the DMA and proposed follow-up actions are approved by Group-wide committees before being presented to the GLT, BOSC and BAC, and are ultimately approved by the Group Board of Directors. The Chief of Staff is responsible for providing and presenting the information on the DMA to the govern- ing bodies. The Board of Directors and BOSC receive annual updates on sustainability, including information on related impacts, opportunities, risks and progress. The BOSC also receives semi-annual updates regarding how the Group is delivering on its strategic sustainability priorities and pro- gressing towards its sustainability targets. Furthermore, the BOSC is informed of the outcome of our annual business environment scanning of climate and environmental risks and associated follow-up actions agreed by the business areas, and reviews sustainability-related regulatory docu- ments ahead of their approval by the Board of Directors. The SEC and GLT receive information on our sustaina- bility-related material impacts, risks and opportunities; due diligence; and the effectiveness of policies, actions, metrics and targets adopted to address the impacts, etc. on an ongoing basis. The SEC is responsible for approving certain sustainability-related frameworks, aligning with the Group Risk Committee where relevant, and reviewing Group rules related to sustainability. Sustainability-related performance in incentive plans We have integrated sustainability-related KPIs into our variable pay plans, i.e. the Short Term Incentive Plan (STIP) and Long Term Incentive Plan (LTIP) for the President and Group CEO, the GLT and selected senior leaders; the Group Variable Pay Pool mechanism (variable pay funding at Nordea); and the Profit Sharing Plan. Members of the Board of Directors are not offered any variable pay and were in 2025 compensated through fixed Board fees decided by the Annual General Meeting. In accordance with the current Remuneration Policy for Governing Bodies, the STIP and LTIP goals are based on financial and non-financial goals and targets. Financial goals support our long-term business strategy, generally measure or contribute to return and/or profitability, and are risk adjusted as appropriate. Non-financial goals include goals and targets which further support our cli- mate strategy and ambitions and help drive a sustainable business. At the beginning of 2025 the Board of Directors decided on the goals and targets for the 2025 STIP, 2025– 27 LTIP, 2025 Group Variable Pay Pool and 2025 Profit Sharing Plan. The following ESG-related goals and relative propor- tions were applied in the 2025 STIP for the Group CEO, the GLT and other senior leaders: Goals Description Green financing volume (EURbn) 3.33% Measures the increase in the volume of green financing provided to our customers in 2025. Progress on the strategic sustainability implementation plan 3.33% Measures progress and delivery on 12 streams in our sustainability roadmap driving progress towards our sustainability and climate ambitions. Improving the gender balance at the top three senior leadership levels 3.33% Supports progress towards our 2025 gender balance target of at least 40% representation. Employee engagement 5% Measured through several factors and objectives. Supports our commitment to be the preferred employer in the financial industry in our operating countries. Risk, compliance and conduct 15% Measures performance on a number of key risk, compliance and conduct indicators, ensuring that variable remuneration is adjusted for all types of current and future risk. The LTIP is an annually recurring fully share-based incen- tive plan with a three-year performance period which sup- ports our business strategy and delivery of long-term shareholder value. It covers the Group CEO, the GLT and select senior leaders. The conditional shares allocated under the LTIP in 2023 (LTIP 2023–25), 2024 (LTIP 2024– 26) and 2025 (LTIP 2025–27) include an ESG component to reflect our strategic sustainability priorities. The following ESG-related goals and relative propor- tions were applied in the LTIP for 2023–25, the LTIP for 2024–26 and the LTIP for 2025–27 for the Group CEO, the GLT and other senior leaders: LTIP 2023–25 20% (each equally weighted) ESG scorecard: facilitation of sustainable financing; doubling the share of net-zero- committed assets under management; transition plans for large corporates; alignment with the Paris Agreement for the top 200 financed emissions contributors; gender balance; fair treatment of employees; and financial sustainability through maintaining our credit profile. LTIP 2024–26 20% (each equally weighted) ESG scorecard: emissions reductions vs baseline in a) lending portfolio, b) investment portfolio, and c) internal operations; gender balance; fair treatment of employees; and financial sustainability through maintaining our credit ratings. LTIP 2025–27 20% (each equally weighted) ESG scorecard: emissions reductions vs baseline in a) lending portfolio, b) investment portfolio, and c) internal operations; gender balance; fair treatment of employees; and financial sustainability through maintaining our credit ratings. At the beginning of 2026 the Board of Directors reviewed performance with respect to the predetermined 2025 STIP and 2023–25 LTIP goals. ===== SIDA 92 ===== Nordea Annual Report 2025 91 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Statement on due diligence Our general principles for conducting sustainability due diligence include taking responsibility for identifying, pre- venting, mitigating and accounting for how we address actual and potential negative impacts on the environment and people connected with our business. We continually develop this work in line with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. In addition to performing risk and materiality assessments, we continually work to improve our methodologies for identifying human rights risks associated with our suppliers, investments, lending and customers. In order to prevent and mitigate adverse human rights impacts, we integrate these findings into our processes and take suitable action. Other examples of our due diligence processes include: • guidelines, policies and training available to all employees • our know your customer process • ESG risk assessments of credit customers Core elements of due diligence References to the Sustainability Statement Page(s) a) Embedding due diligenc e in governance, strategy and business model ESRS 2 GOV-2 ESRS 2 GOV-3 ESRS 2 SBM-3 90 90 93–97 b) Engaging with a ffected stakeholders in all key steps of the due diligence process ESRS 2 GOV-2 ESRS 2 SBM-2 ESRS 2 IRO-1 ESRS S1 ESRS S4 90 86–87 91–93 160 171, 173 c) Iden tifying and assessing adverse impacts ESRS 2 IRO-1 ESRS 2 SBM-3 91–93 93–97 d) T aking actions to address these adverse impacts ESRS E1 ESRS E4 ESRS S1 ESRS S4 ESRS G1 122–123 155 161–163 171, 174 178–180 e) T racking the effectiveness of these efforts and communicating ESRS E1 ESRS E4 ESRS S1 ESRS S4 ESRS G1 124–135 155 163–166 172, 174 178–180 Double materiality assessment process General approach and basis for preparation Since the financial year 2024, we have undertaken a double materiality assessment (DMA) based on the Corporate Sustainability Reporting Directive (CSRD). In the DMA, com- panies determine the sustainability matters that are mate- rial for them by evaluating (i) the ESG-related impacts of their business activities on society and stakeholders (the inside-out perspective), and (ii) how ESG factors may influ- ence their risks and opportunities (the outside-in perspec- tive). As prescribed by the European Sustainability Reporting Standards (ESRS), impacts are determined via an impact materiality assessment, while risks and opportuni- ties are determined via a financial materiality assessment. The insights and experience we obtained when under- taking the first DMA for the financial year 2024 were used to enhance the DMA for the financial year 2025. In addi- tion to further detailing the value chain scope, this year’s DMA involved an adjustment to the process to enhance the quantitative and qualitative assessment. For greater cohesiveness, we further aligned the different approaches required to consider impacts, risks and opportunities. We also expanded our desk research, heatmaps and sce- narios analysis. The enhancements made to the assess- ment process in 2025 did not lead to any significant year- on-year differences in the outcome at the topical level. The outcome of our 2025 DMA determined the sustain- ability matters (impacts, risks and opportunities) that were material for us and defined the scope of our sustain- ability reporting for the financial year 2025. The assess- ment covered our direct business relationships. In addition to own operations, we considered the asset and liability perspective and on- and off-balance sheet activities. Future reporting will evolve as our DMA experience grows and more regulatory guidance becomes available. The design of our DMA reflects our interpretation of the CSRD, the ESRS, the European Financial Reporting Advisory Group’s guidance, and European Banking Authority (EBA) and European Central Bank (ECB) commentaries. Appropriate control functions are embedded within the methodology and process description to ensure outcomes are validated. The methodology and process description are anchored internally, and the outcome is subject to Group Leadership Team and Board of Director approval. • sustainability screening of investees and our responsible investment approach • sustainability screening and monitoring of suppliers • engagement with customers and investees on identified impacts • maturity assessments of our internal processes. The table below maps the core elements of sustainabili- ty-related due diligence presented in this Sustainability Statement. Due to the outcome of the double materiality assessment, the Sustainability Statement does not cover all aspects of human rights due diligence, i.e. it does not cover workers in the value chain or affected communities. Nor does it include commentary on our new 2030 target related to human rights impact assessments of suppliers in high-risk sectors or countries. We provide a more com- prehensive disclosure of our human rights due diligence in our Human Rights Report, which is published annually at nordea.com. ===== SIDA 93 ===== Nordea Annual Report 2025 92 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Determining materiality in the DMA We determine materiality in four steps: 1) understanding the context of the organisation, 2) identifying actual and potential impacts, risks and opportunities, 3) assessing actual and potential qualitative and quantitative impacts, risks and opportunities, and 4) determining material impacts, risks and opportunities by applying appropriate thresholds. Impact materiality is determined based on positive and negative impacts, while financial materiality is determined based on financial risks and opportunities. An ESG matter can be material from an impact materiality perspective, a financial materiality perspective, or both. The outcomes of the impact assessment and the risk and opportunity assessment are consolidated, forming our DMA outcome and determining the sustainability matters that are material for us. As part of the consolidation pro- cess, any interdependencies between material impacts, risks and opportunities are formalised. In 2025 our DMA outcome was validated in consultation with internal representatives of our six main stakeholder groups and through a newly established stakeholder engagement framework. This involved drawing on regular dialogues with affected stakeholders and incorporating their considerations where applicable. Determining impact materiality We identified actual and potential impacts through extensive desk research using internal rules and external guidelines, previous materiality assessments and expert judgement, and applying insights gained from due diligence. We assessed materiality using qualitative and quantitative assessment cri- teria, expert evaluation and materiality thresholds. As prescribed by the ESRS, we assessed the identified impacts based on their scale and scope alongside their likelihood of materialising. In the case of negative impacts, irremediability was also considered. A wide range of inter- nal expert stakeholders were involved in assessing these input criteria. To ensure we followed a standardised quantitative approach to assessing the scope of impacts in our down- stream value chain, we mapped information on our lending and investment portfolio exposures using the UNEP FI impact mapping framework. This provides a comprehensive and standardised approach to assessing environmental and social impacts associated with different sectors and activi- ties – which we complemented with a Nordea sector con- text. As part of the assessment, we screened lending and investment portfolios to identify actual and potential impacts, including those related to climate change, pollu- tion, water and marine resources, biodiversity and ecosys- tems, and resource use and circular economy. We followed a separate approach to assess impacts related to our own operations, such as own workforce. Here, we considered factors such as funding and operational expenses when assessing the scope of impacts. The latter approach was also applied to impacts relating to our upstream activities, such as funding and treasury. Our offices were not assessed to be located in or near biodiversity-sensitive areas, and the impacts and depend- encies of our own site locations on biodiversity and eco- systems were assessed to be immaterial. Therefore, we did not assess mitigation measures to be necessary. We con- sult affected communities in the development of our own site locations through close collaboration with municipali- ties and nearby communities. The ENCORE tool fed into the assessment of impacts and dependencies of our corporate lending and invest- ment portfolios on biodiversity and ecosystems. We assessed the biodiversity- and ecosystem-related impacts and dependencies of own site locations using the WWF Biodiversity Risk Filter tool. Regarding impacts on climate change, further details on our assessment of our greenhouse gas (GHG) emis- sions are provided in “E1 Climate change” on pages 110– 150, with the related methodology explained in “Gross scopes 1, 2, 3 and total GHG emissions” on pages 136–138. In order to determine impact materiality at the Group level, the outcome of each standardised assessment was subject to thresholds. These included scores across criteria for each assessed impact. Impacts related to our lending and investment portfolios were also subject to thresholds based on sectoral exposures. Sensitivity analyses of the thresholds applied ensured the level of sustainability report- ing was suitable considering our organisational context. ===== SIDA 94 ===== Nordea Annual Report 2025 93 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Determining financial materiality In line with the impact materiality assessment, we con- ducted extensive desk research and used expert judge- ment to identify opportunities. We assessed materiality using qualitative and quantitative assessment criteria, expert evaluation, and materiality thresholds. We set appropriate thresholds to determine opportuni- ties by placing high importance on actual or potential rev- enue income. In identifying and assessing material oppor- tunities, we considered the factors of likelihood and mag- nitude as described by the ESRS. For the DMA, we used the output of our annual risk materiality assessment (MA), which is aligned with super- visory and regulatory ESG-related risk management guid- ance such as the ECB Guide on climate-related and envi- ronmental risks. In the MA, we assess the impact of CSRD topics, sub-topics and sub-sub-topics on our risk types, including credit, market, liquidity and operational risks. We view the ECB Guidelines and the ESRS as complementary, and since the ESRS are not sector specific, we consider the output of the MA to be direct input for the DMA. To support the identification of ESG risk relevant to us, we perform a thorough risk identification process to iden- tify transmission channels, i.e. causal chains that explain how ESG risks are transmitted to us through our sectoral value chain, encompassing counterparties, invested assets, third parties and own operations. The relevance of ESG risks is assessed by way of heatmaps, relevant research findings and consultation with subject matter experts. The risk identification process considers country and sector views across corporate and retail portfolios. The materiality assessment process includes performing concentration, sensitivity and scenario analyses across dif- ferent risk categories. If it is not possible to quantify a risk, we use expert judgement within the qualitative assessment parameters. The risk materiality thresholds relate to our Common Equity Tier 1 capital, liquidity indicators, and pre- determined qualitative criteria. We assess the impact of ESG risks on our risk types over short-, medium-, long- and very long-term horizons. The time horizons are aligned with the horizons provided in the ESRS and have also been adopted for reporting purposes. They are defined as follows: • short term: less than or equal to one year (≤1 year) • medium term: one to five years (>1–5 years) • long term: five to ten years (>5–10 years) • very long term: longer than ten years (>10 years), extending to 30 years. In the 2025 MA we considered various climate-related physical and transition risk factors, including extreme weather; variability in temperature; regulatory trends; and societal, customer and demographic trends, and incorpo- rated these into specific climate-related physical and tran- sition risk stress testing at different levels of granularity. Our climate-related transition risks are mainly driven by a need to reduce counterparty GHG emissions. These risks may manifest themselves in our business by affecting the value of collateral pledged to us and may also relate to legal and reputational risk stemming from changed mar- ket sentiment and litigation linked to greenwashing. In general, transition effects are more likely to materialise in the short-to-medium term, but may also materialise in the very long term if there is a delayed transition or no transi- tion ahead of 2050. Climate-related physical risks were assessed to mainly stem from the devaluation of collateral (e.g. real estate, ships and vehicles). We identified and assessed cli- mate-related hazards by comparing exposures to cli- mate-related physical risks over different time horizons in three Representative Concentration Pathway (RCP) sce- narios, including the most severe climate scenario. In our assessment of risks related to biodiversity and ecosystems, we considered various risk factors in our cli- mate and environmental risk factor taxonomy, including climate change; changes in land use, freshwater use and sea use; direct exploitation of species; and impacts and dependencies on ecosystem services. The process involved identifying risk transmission channels, developing and using heatmaps, and applying different time horizons, all of which was then used to determine the risk relevance for different sectors and geographies. In the 2025 MA we identified that we are exposed to sectors and counterparties with potential high biodiversity- r elated transition risks, which could impact us via regulatory-driven efforts to protect biodiversity and ecosystems. The need for companies to adapt their busi- ness models to reduce their impact on nature could affect their profitability and create credit risk for us. In general, transition risks are more likely to impact us in the short-to- medium term, but may also materialise in the long-to- very-long term time horizons. On the operational risk side, we considered reputational risk and legal risk from greenwashing or failure to comply with ESG regulation to be material. Business model risk, meanwhile, could arise across all time horizons via nature-related effects impacting credit quality or the value of collateral securing our lending. We identified a low risk related to dependency on eco- system services in the Nordic countries, which was accord- ingly not deemed to be material for us. However, the longer-term risk outlook is uncertain due to challenges in quantifying risks via the sectoral value chain. The assessment was performed internally, without the involvement of external stakeholders, and did not include an assessment of systemic risk related to biodiversity and ecosystems. Material impacts, risks and opportunities In the 2025 DMA we identified our material sustainability matters and thus defined the scope of our 2025 sustaina- bility reporting under the CSRD. Material topics were those found to be material from an impact materiality per- spective, a financial materiality perspective, or both. The current financial effects of the material risks identi- fied during the reporting period relate to our internal capi- tal requirement (ICR). The ICR specifies the type and dis- tribution of internal capital we consider adequate to cover the nature and level of all risks to which the Group, or any of its subsidiaries, are or might become exposed in the foreseeable future, including during periods of stress. The material impacts, risks and opportunities identified in the assessment were mapped to the ESRS on a sub- topic and/or sub-sub-topic level as relevant, and informed our prioritised sustainability themes presented on page 82 above. The table below provides a full overview. General information, cont. ===== SIDA 95 ===== Nordea Annual Report 2025 94 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Overview of sustainability matters for disclosure under ESRS ESRS Impact materiality Financial materiality Related Nordea sustainability theme E1 Climate change Material Material Climate and energy E2 Pollution Not material Not material Nature E3 Water and marine resources Not material Not material Nature E4 Biodiversity and ecosystems Material Material Nature E5 Resource use and circular economy Not material Not material Climate and energy S1 Own workforce Material Material Inclusive and safe societies S2 Workers in the value chain Not material Not material Inclusive and safe societies S3 Affected communities Not material Not material Inclusive and safe societies S4 Consumers and end-users Material Material Financial well-being G1 Business conduct Material Material Inclusive and safe societies The tables on the following pages provide an overview of the material impacts, risks and opportunities identified in the 2025 DMA. In addition to a brief description, the tables indicate where the impacts, risks and opportunities were identified (in our own operations or in our value chain), and which time horizons are relevant. The impacts, risks and opportunities are specified in accordance with the ESRS. We assessed the materiality of information for specific disclosure requirements relating to material ESRS topics, and corresponding metrics, before including them. If the information was determined to help provide a more com- prehensive view to meet users’ decision-making needs, it was included. Information not considered to be material enough to meet the objective of the relevant disclosure requirement was excluded. The need for entity-specific dis- closures was also assessed in cases where the standards were not detailed enough to enable an understanding of our business model and strategy. The analysis identified relevant entity-specific topics in G1 Business conduct, relat- ing to the prevention of financial crime and fraud in society. The topical sections on pages 110–180 further specify the material impacts, risks and opportunities and how they are addressed in our strategy and business model. The 2025 DMA results are largely unchanged from 2024. The few changes reflect the increased robustness of the analyses, which enabled us to further mature the disclosures. In 2025, ESRS E4 Biodiversity and ecosystems was iden- tified as material also from an impact perspective, high- lighting our responsibility to prevent and reduce negative impacts on biodiversity. Under the sub-topic “Direct impact drivers of biodiversity loss”, new material impacts and risks were identified. At the same time, the sub-topics “Impacts and dependencies on ecosystem services” and “Impacts on the extent and condition of ecosystems” were this year not assessed to be material from a risk perspective. In ESRS S4 Consumers and end-users, under the subtop- ics “Social inclusion of consumers and/or end users” and “Personal safety of consumers and/or end-users”, new material negative impacts were identified. These findings highlight our role in society to provide consumers with access to the financial system and strive to improve finan- cial well-being, while protecting customers’ rights and miti- gating the risk of fraud. In ESRS G1 Business conduct, a new risk was identified under the sub-topic “Corporate culture”. Moreover, “Cyber security” was identified as an entity-specific matter, having been assessed as material from a risk perspective due to the threat to our operations. The entity-specific matter “Financial crime” was reassessed, resulting in a new mate- rial negative impact, which highlights attempts to misuse our platforms to enable t errorist financing, money launder- ing and other criminal activities. ===== SIDA 96 ===== Nordea Annual Report 2025 95 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. E1 Climate change Impact, risk or opportunity Title Description Value chain Time horizon Climate change mitigation Positive impact (actual) Financing and supporting the transition of customers, investee companies and sectors We contribute to reducing greenhouse gas (GHG) emission levels and fulfilling the objectives of the Paris Agreement by providing financing and supporting customers’ transitions (including through capital markets solutions), accelerating our own transition through active engagement and business selection, investing, and actively engaging with investees. Negative impact (actual) GHG emissions from our lending and investment portfolios and capital market activities GHG emissions generated by customer activities linked to financing and capital markets solutions provided by us or investments made by us and contributing to increased GHG emissions not in line with the Paris Agreement, and GHG emissions linked to our financing of or investment in customers in carbon-intensive sectors without transition plans. Risk Climate-related transition risks Through our offering, in particular our lending to households and corporates, we are exposed to sectors and counterparties with potential high climate-related transition risks. These climate-related transition risks can impact us across our different risk categories, for example through credit risk due to collateral devaluation or liquidity risk due to additional cash outflows. Through our operations, we are also exposed to non- financial risks stemming from climate-related transitional effects, mainly via reputational and litigation risks. These risks could materialise if, for example, we are subject to accusations of greenwashing or do not comply with rapidly changing or increased regulatory requirements. Opportunity Financing and investing in activities to mitigate climate change and enhance adaptation Potential revenue generation through financing and investments linked to climate change mitigation, climate change adaptation and energy efficiency activities. V ery long term Shor t term Medium t erm L ong term Upstream Own oper ations Downstream Impact, risk or opportunity Title Description Value chain Time horizon Climate change adaptation Risk Climate-related physical risks Through our offering, in particular our lending to households and corporates, we are exposed to sectors and counter- parties with potential high climate-related physical risks. These climate-related risks can impact us across our different risk categories, for example through credit risk due to collateral devaluation in the case of an acute climate event. Energy Positive impact (actual) Financing energy efficiency activities and engaging with investees regarding energy efficiency activities We contribute to reducing energy consumption on the part of our customers and investees and fulfilling the objectives of the Paris Agreement by financing energy efficiency activities, engaging with investees regarding energy efficiency activities, and voting on energy efficiency-related matters. Negative impact (actual) Final energy consumption in our lending and investment portfolios Increased energy consumption, not in line with the energy transition needed to fulfil the objectives of the Paris Agreement, due to investing in companies/financing customers with high energy consumption and without a transition plan. Risk Climate-related transition risks Through our offering, in particular our lending to households and corporates, we are exposed to sectors and counterparties with potential high climate-related transition risks relating to energy. These climate-related transition risks can impact us across our different risk categories, for example through the credit risk of customers in industries that are vulnerable to transition risks and have high energy consumption rates. ===== SIDA 97 ===== Nordea Annual Report 2025 96 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. E4 Biodiversity and ecosystems Impact, risk or opportunity Title Description Value chain Time horizon Direct impact drivers of biodiversity loss Negative impact (actual) Contribution to biodiversity loss resulting from pollution and land, freshwater and sea use change Contribution to biodiversity loss through pollution and land, freshwater and sea use change, all caused by customer activities linked to financing provided by us. We provide significant financing to the agriculture, forestry, and fishing and aquaculture sectors, which in the Nordic countries put great pressure on species and generate pollution linked to biodiversity loss. The financing we provide to the real estate and construction sectors contributes to land, freshwater and sea use change. Risk Biodiversity-related transition risks Through our offering, in particular our lending to households and corporates, we are exposed to sectors and counterparties with potential high biodiversity-related transition risks. These biodiversity-related transition risks can impact us across our different risk categories, for example through credit risk as companies adapt their business models to reduce their impact on nature, which can affect their profitability and impact our counterparty credit risk. Operational risk and capital risk can also be materially impacted over time. Impacts on the state of species Negative impact (actual) Contribution to biodiversity loss resulting from impacts on the state of species Contribution to biodiversity loss through impacts on the state of species caused by customer activities linked to financing provided by us. We provide significant financing to the agriculture, forestry, and fishing and aquaculture sectors, which in the Nordic countries put great pressure on species and generate pollution linked to biodiversity loss. The financing we provide to the real estate and construction sectors contributes to land, freshwater and sea use change. S1 Own workforce Impact, risk or opportunity Title Description Value chain Time horizon Working conditions Positive impact (potential) Good working environment We are committed to ensuring employee health and well- being through a holistic approach encompassing proactive, preventive and reactive measures in order to support employee engagement and performance. Positive impact (actual) Employee well-being We provide employees with the opportunity to find a harmonious balance between the conflicting demands of work and personal life. This can help employees stay engaged, reduce stress and improve overall job satisfaction. Negative impact (actual) Work overload Excessive workloads and time pressure experienced by some employees impact stress levels and can lead to health problems. We believe managing these pressures is important to prevent burnout and ensure sustainable productivity. Risk Employee health and well-being We are committed to ensuring a safe workplace by promoting health and well-being and managing illness and work capacity. Failure to do so, especially during adverse external events such as pandemics or other crises, could have an impact on our capacity to deliver on our business strategy. Unwanted attrition and a lack of resources to provide our daily banking services could lead to poor customer experience, and financial loss and reputational damage. Equal treatment and opportunities for all Positive impact (actual) Diverse and inclusive workplace We support a diverse and inclusive workplace by promoting equal opportunities where all aspects of employment are concerned. We aim to create a workplace where employees feel valued and empowered to contribute. Positive impact (actual) Career development We provide structured learning, clear career paths and access to new opportunities for employees in order to help them stay competent and maintain relevant skills, unlock their potential and find fulfilment in coming to work each day. Negative impact (actual) Gender pay gaps To the extent that gender-based pay differences exist, this can undermine equal and fair treatment and regulatory requirements. Pay equity is key for us and we have a plan in place to eliminate the overall adjusted pay gap by 2026. Negative impact (potential) Discrimination and inequality Societal inequalities and biases can manifest in the workplace, leading to unequal treatment of employees. This can result in reduced employee well-being and a sense of unfairness. We have measures and procedures to identify and prevent all types of discriminatory behaviour and foster an inclusive environment. V ery long term Shor t term Medium t erm L ong term Upstream Own oper ations Downstream ===== SIDA 98 ===== Nordea Annual Report 2025 97 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. S4 Consumers and end-users Impact, risk or opportunity Title Description Value chain Time horizon Social inclusion of consumers and/or end-users Positive impact (potential) Financial inclusion based on (non-discriminatory) access to financial products and services We aim to promote financial inclusion and give everyone equal access to basic banking services. We provide non- discriminatory access to financial services, ensuring our customers receive equitable treatment through an omnichannel approach. In this way, we enable customers who may have different needs and preferences to easily manage their finances. Negative impact (potential) Exclusion of customers without digital literacy or internet access As banking services become more digital, barriers for customers with limited digital skills are created, thereby increasing financial vulnerability. Information-related impacts for consumers and/or end users Positive impact (potential) Access to quality information We can contribute to the financial well-being and long-term financial security of our customers by providing them with complete and understandable product information. High- quality service and personalised advice across all channels can further contribute to our customers’ financial well-being. Risk Data privacy We consider data privacy to be key for responsible banking and are fully committed to protecting individual rights and keeping personal data safe. Breaches to personal data security and privacy could create operational disruption, expose us to legal claims and proceedings and reputational damage, and carry financial penalties. Personal safety of consumers and/or end-users Positive impact (potential) Customer protection due to customers being made aware of fraud Our continuous work to increase fraud awareness among our customers and in wider society is key to helping us prevent fraud. We contribute to fraud awareness in society through education and awareness campaigns. These can help customers identify and prevent fraud attempts and thereby reduce the risk of fraud. Negative impact (actual) Customer exposure to fraud on our platforms and through our products and services Our platforms may be misused as a means to defraud our customers, leading to negative impacts for people using our products and services. To address this situation to the extent possible, an active fraud management approach is essential. G1 Business conduct Impact, risk or opportunity Title Description Value chain Time horizon Corporate culture Positive impact (potential) Good corporate conduct We contribute to a robust and stable financial system by conducting business to high ethical and professional standards, with sound governance and a strong risk culture. Risk Compliance risk related to remuneration Failure to comply with applicable remuneration-related laws and regulations could expose us to non-financial risks leading, for example, to regulatory sanctions, financial penalties and reputational damage. Corruption and bribery Risk Corruption and bribery Failure to comply with applicable anti-bribery and corruption legislation could expose us to non-financial risks leading, for example, to fines, reputational damage and criminal prosecution. Financial crime and fraud prevention (entity-specific) Negative impact (potential) Criminals using products and services to facilitate criminal activities Our products and services could be abused by criminals seeking to exploit the financial system. This could result in money laundering, terrorist financing, and sanctions evasion and circumvention. Risk Financial crime Failure to comply with applicable laws and regulations addressing money laundering, terrorist financing, tax evasion and sanctions could expose us to non-financial risk leading, for example, to fines, reputational damage and criminal prosecution. Risk Fraud Failure to prevent internal or external fraud could result in financial losses for both us and our customers and non- financial risks leading, for example, to regulatory criticism and reputational damage. Cybersecurity (entity-specific) Risk Cybersecurity Cyberattacks designed to disrupt online services are becoming increasingly frequent and sophisticated. Failure to protect ourselves and others against such events could lead, for example, to loss of customer data or service unavailability. V ery long term Shor t term Medium t erm L ong term Upstream Own oper ations Downstream ===== SIDA 99 ===== Nordea Annual Report 2025 98 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Basis for preparation This Sustainability Statement (“Group sustainability report” as per the Finnish Accounting Act) has been pre- pared in accordance with the European Sustainability Reporting Standards (ESRS) and the Finnish Accounting Act, Chapter 7, implementing the EU’s Corporate Sustainability Reporting Directive (CSRD). It has been pre- pared on the same consolidated basis as our financial statements, covering the parent company, Nordea Bank Abp, and its subsidiaries, i.e. the Nordea Group, and refers to our financial year, which was from 1 January 2025 to 31 December 2025. The reported data covers the Nordea Group as a whole unless otherwise stated. The disclosed sustainability matters and associated key figures are based on a double materiality assessment (DMA), as required by the CSRD. In the DMA, we assess (i) the material ESG-related impacts of our business activities on society and stakeholders and (ii) the material impacts of ESG factors on us. The scope includes direct business relationships in both the upstream and downstream value chains. For more information on the DMA and its results, see pages 91–97. Our financial statements and Sustainability Statement include all mandatory disclosures for sustainability topics identified as material based on the DMA. In the Sustainability Statement, we have not chosen to omit spe- cific information corresponding to intellectual property, nor have we applied the exemption for the disclosure of impending developments or matters in the course of negotiation. Disclosures derived from other EU legislation have been included, as noted on pages 101–104. Additional reporting on our voluntary commitments can be found at nordea.com. When available, we use customer-reported data in our calculations and reporting. When such data is not availa- ble, we use proxy-based estimates and management judgements. This primarily relates to environmental infor- mation and metrics within the value chain, where indirect sources are used to complement the customer-specific data available. Estimates have also been applied with respect to our own operations due to the immaturity and limited availability of certain data points. Dependency on estimates means our disclosures and impact assessments are associated with a degree of outcome uncertainty. However, the calculations are deemed to provide a reliable description of our exposures. Estimates can also impact forward-looking information, such as our forecasting of progress towards environmental targets. They are, however, essential for preparing such information, and provide useful insights into how we respond to ESG-related opportunities. We regularly review the use of estimates and judge- ments to assess their accuracy and identify ways to improve them, for example by developing hybrid proxies or adopting the latest guidance from the Partnership for Carbon Accounting Financials (PCAF). Such updates were applied during 2025, with data quality improvements driv- ing a baseline recalculation and restatements of 2019 base year results – which our total GHG emissions are moni- tored against. These restatements demonstrate how we ensure that disclosures based on estimates remain rele- vant over time, and are anchored within our robust meas- urement methodologies. See “E1 Climate change” on page 147 for more detailed information on metrics subject to measurement uncertainty and the data sources and meth- odologies applied. We acknowledge that the regulatory landscape is evolving and have accordingly opted for a pragmatic approach to reporting, applying the current ESRS require- ments while preparing for potential simplification in the future. In the light of this, we continue to apply transitional provisions regarding value chain information (in “E4 Biodiversity and ecosystems”) as well as the phase-in pro- visions specified on pages 99–101. This Sustainability Statement has been subject to assur- ance by PricewaterhouseCoopers Oy. The scope of the assured information is indicated in the independent practi- tioner’s limited assurance report on page 374. No external body other than the assurance provider has validated the metrics disclosed. Risk management and internal controls Our sustainability reporting is subject to a robust risk man- agement and internal control framework. Group Risk plays a key role in defining our taxonomy for ESG risk factors and provides guidance on how to consistently and compa- rably embed ESG-related impacts, risks and opportunities in strategy and risk management, including by defining relevant roles and responsibilities. This work supports the identification of the prioritised ESG-related risks which form the basis for the double materiality assessment and our approach to sustainability reporting. The internal control process is based on five main com- ponents: control environment, risk assessment, control activities, information and communication, and monitor- ing. Within the internal control framework, all business areas and Group functions are responsible for managing the risks they incur when conducting their activities and for having controls in place to ensure compliance with internal and external requirements. The evolving regula- tory environment and implementations of the CSRD and the ESRS are key drivers of risk related to sustainability reporting and compliance. To help mitigate this risk, a cen- tralised function coordinates the production of the Sustainability Statement, while our governing bodies, management, risk management functions and other staff carry out the control processes with a particular focus on financial reporting and greenwashing risks. We have established Group control functions with appropriate and sufficient authority, independence and access to the CEO, the Group Leadership Team and the Group Board of Directors to fulfil their mission in line with our risk management framework. The sustainability reporting process is monitored by various committees, with reporting ultimately to the Board Operations and Sustainability Committee and the Board Audit Committee. ===== SIDA 100 ===== Nordea Annual Report 2025 99 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Disclosure requirements and incorporation by reference Section Page(s) Additional information ESRS 2 General information BP-1 General basis for preparation of the sustainability statements 98 BP-2 Disclosures in relation to specific circumstances 98 GOV-1 The role of the administrative, management and supervisory bodies 88–90 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies 90 GOV-3 Integration of sustainability-related performance in incentive schemes 90 GOV-4 Statement on sustainability due diligence 91 GOV-5 Risk management and internal controls over sustainability reporting 98 SBM-1 Strategy, business model and value chain 82–85 SBM-2 Interests and views of stakeholders 86–87 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s) 93–97 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities 91–93 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement 99–104 ESRS E1 – Climate change ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes General information 90 E1-1 Transition plan for climate change mitigation 114–117 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s) 111 ESRS 2 IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities General information 91–93 E1-2 Policies related to climate change mitigation and adaptation 118–121 E1-3 Actions and resources in relation to climate change policies 122–123 E1-4 Targets related to climate change mitigation and adaptation 124–130 E1-5 Energy consumption and mix 136 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 137 E1-7 GHG removals and GHG mitigation projects financed through carbon credits 150 E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities – ESRS phase-in provision applied ESRS E4 – Biodiversity and ecosystems E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model 153 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s) 152–153 ESRS 2 IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks and opportunities General information 91–93 E4-2 Policies related to biodiversity and ecosystems 153–154 E4-3 Actions and resources related to biodiversity and ecosystems 155 E4-4 Targets related to biodiversity and ecosystems 155 E4-6 Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities – ESRS phase-in provision applied ===== SIDA 101 ===== Nordea Annual Report 2025 100 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Section Page(s) Additional information ESRS S1 – Own workforce ESRS 2 SBM-2 Interests and views of stakeholders General information 86–87 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s) 157 S1-1 Policies related to own workforce 157–159 S1-2 Processes for engaging with own workers and workers’ representatives about impacts 160 S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns 160 S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 161–163 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 163 S1-6 Characteristics of the undertaking’s employees 164 S1-7 Characteristics of non-employees in the undertaking’s own workforce 164 ESRS phase-in provision partially applied S1-9 Diversity metrics 165 S1-13 Training and skills development metrics 165 S1-14 Health and safety metrics 165 ESRS phase-in provision partially applied S1-15 Work-life balance metrics – ESRS phase-in provision applied S1-16 Remuneration metrics (pay gap and total remuneration) 166 S1-17 Incidents, complaints and severe human rights impacts 160 ESRS S4 – Consumers and end-users ESRS 2 SBM-2 Interests and views of stakeholders General information 86–87 ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model(s) 168 S4-1 Policies related to consumers and end-users 168–170 S4-2 Processes for engaging with consumers and end-users about impacts 171–173 S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 171, 173 S4-4 Taking action on material impacts on consumers and end-users, and approaches to mitigating material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions 171–174 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 172–174 ===== SIDA 102 ===== Nordea Annual Report 2025 101 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Section Page(s) Additional information ESRS G1 – Business conduct ESRS 2 GOV-1 The role of the administrative, supervisory and management bodies General information 88–90 ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities General information 91–93 G1-1 Business conduct policies and corporate culture 176–178 G1-3 Prevention and detection of corruption and bribery 179 Entity-specific Financial crime and fraud prevention 179–180 Entity-specific Cyber security 180 Datapoints that derive from other EU legislation Disclosure Requirement Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page reference ESRS 2 GOV-1 Board’s gender diversity paragraph 21 (d) Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816, Annex II 89 Percentage of board members who are independent paragraph 21 (e) Delegated Regulation (EU) 2020/1816, Annex II 88 ESRS 2 GOV-4 Statement on due diligence paragraph 30 Indicator number 10 Table #3 of Annex 1 91 ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i Indicators number 4 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk Delegated Regulation (EU) 2020/1816, Annex II Not material Involvement in activities related to chemical production paragraph 40 (d) ii Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Not material Involvement in activities related to controversial weapons paragraph 40 (d) iii Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not material Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv Not material ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 Regulation (EU) 2021/1119, Article 2(1) 114–117 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2 117 ESRS E1-4 GHG emission reduction targets paragraph 34 Indicator number 4 Table #2 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 6 124–130 ===== SIDA 103 ===== Nordea Annual Report 2025 102 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Disclosure Requirement Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page reference ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 Indicator number 5 Table #1 and Indicator n. 5 Table #2 of Annex 1 Not material Energy consumption and mix paragraph 37 Indicator number 5 Table #1 of Annex 1 136 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 Indicator number 6 Table #1 of Annex 1 Not material ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 Indicators number 1 and 2 Table #1 of Annex 1 Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) 137 Gross GHG emissions intensity paragraphs 53 to 55 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, Article 8(1) 137 ESRS E1-7 GHG removals and carbon credits paragraph 56 Regulation (EU) 2021/1119, Article 2(1) 150 ESRS E1-9 Exposure of the benchmark portfolio to climate- related physical risks paragraph 66 Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II Not material Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk. Not material Location of significant assets at material physical risk paragraph 66 (c). Not material Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c). Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2: Banking book -Climate change transition risk: Loans collateralised by immovable property – Energy efficiency of the collateral Not material Degree of exposure of the portfolio to climate- related opportunities paragraph 69 Delegated Regulation (EU) 2020/1818, Annex II Not material ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 Not material ESRS E3-1 Water and marine resources paragraph 9 Indicator number 7 Table #2 of Annex 1 Not material Dedicated policy paragraph 13 Indicator number 8 Table 2 of Annex 1 Not material Sustainable oceans and seas paragraph 14 Indicator number 12 Table #2 of Annex 1 Not material ===== SIDA 104 ===== Nordea Annual Report 2025 103 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Disclosure Requirement Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page reference ESRS E3-4 Total water recycled and reused paragraph 28 (c) Indicator number 6.2 Table #2 of Annex 1 Not material Total water consumption in m 3 per net revenue on own operations paragraph 29 Indicator number 6.1 Table #2 of Annex 1 Not material ESRS 2 - SBM 3 - E4 paragraph 16 (a) i Indicator number 7 Table #1 of Annex 1 Not material paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 152–153 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 152–153 ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b) Indicator number 11 Table #2 of Annex 1 153–154 Sustainable oceans / seas practices or policies paragraph 24 (c) Indicator number 12 Table #2 of Annex 1 153–154 Policies to address deforestation paragraph 24 (d) Indicator number 15 Table #2 of Annex 1 153–154 ESRS E5-5 Non-recycled waste paragraph 37 (d) Indicator number 13 Table #2 of Annex 1 Not material Hazardous waste and radioactive waste paragraph 39 Indicator number 9 Table #1 of Annex 1 Not material ESRS 2 - SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f) Indicator number 13 Table #3 of Annex I Not material Risk of incidents of child labour paragraph 14 (g) Indicator number 12 Table #3 of Annex I Not material ESRS S1-1 Human rights policy commitments paragraph 20 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I 158 ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labour Organisation Conventions 1 to 8, paragraph 21 Delegated Regulation (EU) 2020/1816, Annex II 158 ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 Indicator number 11 Table #3 of Annex I Not material ESRS S1-1 workplace accident prevention policy or management system paragraph 23 Indicator number 1 Table #3 of Annex I 158 ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c) Indicator number 5 Table #3 of Annex I 160 ESRS S1-14 Number of fatalities and number and rate of work- related accidents paragraph 88 (b) and (c) Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Not material Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) Indicator number 3 Table #3 of Annex I Not material ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II 166 Excessive CEO pay ratio paragraph 97 (b) Indicator number 8 Table #3 of Annex I 166 ESRS S1-17 Incidents of discrimination paragraph 103 (a) Indicator number 7 Table #3 of Annex I 160 Non-respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a) Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) 160 ESRS 2 - SBM3 - S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b) Indicators number 12 and n. 13 Table #3 of Annex I Not material ===== SIDA 105 ===== Nordea Annual Report 2025 104 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other General information, cont. Disclosure Requirement Related datapoint SFDR reference Pillar 3 reference Benchmark Regulation reference EU Climate Law reference Page reference ESRS S2-1 Human rights policy commitments paragraph 17 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 Not material Policies related to value chain workers paragraph 18 Indicator number 11 and n. 4 Table #3 of Annex 1 Not material ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labour Organisation Conventions 1 to 8, paragraph 19 Delegated Regulation (EU) 2020/1816, Annex II Not material ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 Indicator number 14 Table #3 of Annex 1 Not material ESRS S3-1 Human rights policy commitments paragraph 16 Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 Not material Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17 Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) Not material ESRS S3-4 Human rights issues and incidents paragraph 36 Indicator number 14 Table #3 of Annex 1 Not material ESRS S4-1 Policies related to consumers and end-users paragraph 16 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 168–170 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) 171 ESRS S4-4 Human rights issues and incidents paragraph 35 Indicator number 14 Table #3 of Annex 1 171 ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) Indicator number 15 Table #3 of Annex 1 Not material Protection of whistle-blowers paragraph 10 (d) Indicator number 6 Table #3 of Annex 1 171 ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II) Not material ESRS G1-4 Standards of anti-corruption and anti- bribery paragraph 24 (b) Indicator number 16 Table #3 of Annex 1 Not material ===== SIDA 106 ===== Nordea Annual Report 2025 105 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other ENVIRONMENTAL INFORMATION EU Taxonomy disclosures EU Taxonomy supporting the transition The EU Taxonomy Regulation (hereafter “the Taxonomy”) and its delegated acts define environmentally sustainable or “Taxonomy-aligned” economic activities based on tech- nical screening criteria. In order for an activity to be Taxonomy aligned, it must contribute substantially to one of the EU’s climate and environmental objectives while not significantly harming any of the other objectives. In addi- tion, minimum safeguard requirements must be met. In 2025 we continued to work on assessing the implica- tions of the EU Taxonomy requirements and further devel- oped our disclosure methodology, including by imple- menting the delegated regulation amending the Taxonomy Disclosures, Climate and Environmental dele- gated acts. The amending delegated regulation, Regulation (EU) 2026/73, applicable since 1 January 2026, simplifies the Taxonomy reporting templates and intro- duces methodological changes that affect the disclosures. There are not yet any common standards for or approaches to making these disclosures. The approach we have adopted reflects our understanding and interpreta- tion of the EU Taxonomy requirements and the guidance from the EU Commission. We explain how the amending delegated regulation has affected our disclosures below. Sustainability is an integral part of our Group strategy, as reflected in our strategic sustainability priorities. Through our customer offering, engagement and risk management activities, we aim to support customers and investees in aligning their activities with a net zero by 2050 trajectory. The Taxonomy can facilitate strategy implementation, for example by guiding our approach to sustainable financing facilitation and informing our dia- logues with customers. We facilitate sustainable financing through our green funding framework, which draws on the Taxonomy’s “substantial contribution” criteria in estab- lishing how we identify, select, verify and report sustaina- ble financing. Going forward, we will continue to review options for further aligning our green funding framework with the Taxonomy. We have adjusted our product process to fulfil our obli- gations under the Taxonomy regarding Sustainable Finance Disclosure Regulation (SFDR) products. At the product level, we disclose whether the EU criteria for envi- ronmentally sustainable economic activities are taken into account in the design of the product and if so, whether the product has a built-in commitment to making Taxonomy- aligned investments. At present, our selection of SFDR products with such a commitment is small. This is because we do not have sufficient data to support a meaningful commitment to a minimum proportion of Taxonomy- aligned investments. For each SFDR Article 8 or 9 product, we calculate and disclose the Taxonomy-alignment of the actual investment, subject to data availability and quality. When providing investment advice, we explain the main elements of the EU Taxonomy to our customers before assessing their sustainability preferences. This includes assessing whether they consider it important to invest in line with the EU’s environmental objectives as defined in the Taxonomy, as this is a regulatory requirement under the Markets in Financial Instruments Directive (MiFID II). We currently have a small selection of investment funds with a commitment to Taxonomy-aligned investments. Data related to Taxonomy-aligned investments is still developing for the industry as a whole. Group disclosures In accordance with the third EU Commission notice con- cerning disclosures on sustainability, we disclose consoli- dated key performance indicators (KPIs) for each of our business segments. We make these disclosures in the tem- plates for credit institutions and asset managers and also disclose weighted KPIs for the Group based on the business segment KPIs. Nordea Investment Funds S.A. and Nordea Funds Ltd are covered by the KPI for asset managers. The above-mentioned amending delegated regulation introduces materiality thresholds allowing financial institutions to omit full KPIs or assets included in KPIs where the use of proceeds is known if they represent less than 10% of the institution’s total assets or total net turno- ver. We have chosen to implement these materiality thresh- olds for our Group-level disclosures and have omitted the investment firm template. Since the revenue related to the investment firm template is less than 10% of that of the Group 1, the activities in the template have been deemed to be non-material and have not been assessed for Taxonomy eligibility or alignment. The templates for credit institutions and asset managers can be found in “Appendix (EU Taxonomy)” on page 181. The weighted KPIs for financial conglomerates and the summary of KPIs to be disclosed by credit institutions can be found below. Our disclosures include subsidiaries on a prudential con- solidated basis as per Annex V of the Disclosures Delegated Regulation. Exposures to Nordea Life & Pension are there- fore treated under the equity method, meaning that they are treated in the same way as any other equity holdings. Since Nordea Life & Pension did not fall under the Corporate Sustainability Reporting Directive (CSRD) in 2025, the exposures were not assessed for alignment within the Group Taxonomy disclosures. Due to the fact that Nordea Life & Pension is treated under the equity method and does not have to comply with the CSRD, the consoli- dated Group table does not include insurance activities. The financial conglomerate weighted KPIs and a sum- mary of the credit institution KPIs are displayed on page 109. The remaining disclosures can be found in “Appendix (EU Taxonomy)” on pages 181–190. Changes to our EU Taxonomy disclosures in 2025 in line with the amending delegated regulation • Exposures to companies not subject to Corporate Sustainability Reporting Directive (CSRD) reporting obligations (except for those with voluntary disclo- sures or with a parent company falling under the CSRD), derivatives, cash and cash equivalents, on-demand interbank loans, and other assets, such as goodwill and commodities, are now excluded from the denominator of the green asset ratio (GAR). • All tables have been simplified. • The tables including activities related to the nuclear and fossil gas sectors have been omitted and instead the information has been included in Tables 8-9 (GAR s ector information) and Table 14 – Template for the KPI of Asset Managers. • Comparative data for the previous year has been omitted. • Tables 6 and 7 (assets for the calculation of GAR flow) have been introduced. • Materiality thresholds have been implemented in the investment firm template and for the assets under management and financial guarantees KPIs. 1) The revenue related to the investment firm template accounts for 5.8% of that of the Group. This can be seen in Tables 2 and 3 (weighted KPIs of financial conglomerate). The majority of our revenue is from internal Nordea Group customers. ===== SIDA 107 ===== Nordea Annual Report 2025 106 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU Taxonomy disclosures, cont. EU Taxonomy tables Page Table 1 – 0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation 109 Table 2 – Weighted KPIs of financial conglomerate (turnover) 109 Table 3 – Weighted KPIs of financial conglomerate (capex) 109 Table 4 – Template 1: Assets for the calculation of GAR (EURm) Stock Turnover 181 Table 5 – Template 1: Assets for the calculation of GAR (EURm) Stock Capex 182 Table 6 – Template 1: Assets for the calculation of GAR (EURm) Flow Turnover 183 Table 7 – Template 1: Assets for the calculation of GAR (EURm) Flow Capex 184 Table 8 – Template 2: GAR sector information (EURm) Turnover 185 Table 9 – Template 2: GAR sector information (EURm) Capex 185 Table 10 – Template 3: GAR KPI Stock (%) Turnover 186 Table 11 – Template 3: GAR KPI Stock (%) Capex 187 Table 12 – Template 4: Flow KPI (%) Turnover 188 Table 13 – Template 4: Flow KPI (%) Capex 189 Table 14 – Template for the KPI of Asset Managers 190 Data and methodology for the KPIs to be disclosed by credit institutions The green asset ratio (GAR) key performance indicator (KPI) shows our exposures related to Taxonomy-aligned activities as a proportion of our total covered assets1 and is our main KPI, reported in Tables 4–7 on pages 181–184. In line with the amending delegated regulation, the methodology for calculating the GAR changed during 2025. Therefore, this KPI should not be compared with that of the previous year. The methodological change included a reduction in the denominator of the GAR, as exposures to companies not subject to the Corporate Sustainability Reporting Directive (CSRD) (except for those with voluntary disclosures or with a parent company falling under the CSRD), derivatives, cash and cash equiv- alents, on-demand interbank loans, and other categories of assets, such as goodwill and commodities, are now excluded. Additionally, exposures to non-CSRD companies that have voluntary disclosed Taxonomy KPIs are now included in the numerator. In 2025 there was an increase in total Taxonomy- aligned assets that was not due to the amending dele- gated act. The increase was due to the following. • An increase in the total amount of Taxonomy-aligned exposures to activities contributing to the environmental objectives sustainable use and protection of water and marine resources, transition to a circular economy, pollu- tion prevention and control, and protection and restora- tion of biodiversity and ecosystems. • An update to our methodology for calculating the top 15% of national or regional building stock in primary energy demand (PED) terms in Finland. This was partly based on a study conducted by Granlund for Rakli Ry in 2024 and partly based on updated internal calculations of PED thresholds for single-family houses. • An improvement in Energy Performance Certificate (EPC) data coverage in Finland. In 2025 there was also an increase in the total amount of Taxonomy-eligible exposures to activities contributing to the four aforementioned environmental objectives. The assets in scope for credit institutions are exposures to companies falling under the CSRD (financial and non-fi- nancial companies), exposures to non-CSRD companies that voluntarily disclose Taxonomy KPIs or have a parent company falling under the CSRD, retail exposures (motor vehicle loans, renovation loans and mortgages), local gov- ernment financing, collateral obtained by taking posses- sion of residential and commercial immovable properties, and off-balance sheet exposures. An overview of how we assess these assets is provided below. Assets Assessment Exposures to CSRD companies For non-financial CSRD companies, we weight the exposure to the company’s reported share of Taxonomy-eligible and Taxonomy-aligned turnover and capital expenditure (CapEx). For financial CSRD companies, we weight the exposure to the company’s share of eligible and aligned economic assets among its total covered assets. This means that all loans are treated as general purpose loans. Exposures to non-CSRD companies If a non-CSRD company has voluntarily disclosed Taxonomy KPIs, we include the exposure and assess it following the same approach as for exposures to CSRD companies. Local government financing We do not assess local government financing for Taxonomy alignment since we do not have a business model based to a great extent on financing public housing, and data on specialised lending to local governments is unavailable. Collateral obtained by taking possession of residential and commercial immovable properties Data on collateral obtained by taking possession of residential and commercial immovable properties is not available and is therefore not assessed for Taxonomy alignment. Household exposures Motor vehicle loans Motor vehicle loans granted after 1 January 2022 are in scope. However, due to the comprehensive level of detail required for the Taxonomy assessment and limited data availability, we do not assess motor vehicle loans for Taxonomy alignment. Renovation loans Due to limited data availability, we do not assess renovation loans for Taxonomy alignment. Mortgages We assess whether mortgages contribute to the environmental objective climate change mitigation according to activity 7.7 Acquisition and ownership of buildings. A description of how the assessment is made can be found below. 1) Total covered assets refer to all on-balance sheet exposures except for exposures to non-CSRD companies (except for those that have made voluntary disclosures or have a parent company falling under the CSRD), central governments, central banks, supranational issuers, the trading portfolio, derivatives, cash and cash equivalents, on-demand interbank loans, and other categories of assets, such as goodwill and commodities. The terms “GAR stock” and “total GAR assets” used in the predefined tables should be understood with reference to the GAR definitions provided. ===== SIDA 108 ===== Nordea Annual Report 2025 107 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU Taxonomy disclosures, cont. The image to the right provides an overview of how we assess whether mortgages contribute to the environmen- tal objective climate change mitigation according to activ- ity 7.7 Acquisition and ownership of buildings. In 2025, for residential real estate lending in the Norwegian and Swedish markets, we assessed the full gross carrying amount of mortgages for Taxonomy align- ment. For residential real estate lending in the Danish and Finnish markets, we assessed the gross carrying amount excluding second mortgages (top-up loans). For buildings built before 31 December 2020, the threshold for substantial contribution is EPC class A or the building being within the top 15% of the national or regional building stock. For the Danish and Norwegian market, the top 15% building stock threshold was deter- mined based on the buildings having an EPC class A or B label. In Sweden, the top 15% was identified based on pri- mary energy demand (PED) thresholds established in a study by the Swedish Property Federation. For the Finnish market, the calculation of top 15% PED thresholds was based on a study by Granlund in 2024, using energy per- formance certificate data from the Centre for State- Subsidised Housing Construction (Varke). The thresholds for the Finnish market had previously been based on a Granlund study from 2022. In addition to this, the method- ology for calculating the top 15% of single-family houses was updated based on an internal study. Single-family house energy consumption data is protected under the General Data Protection Regulation in Finland and is therefore not part of the Granlund report, which is based on public data. These updates led to an increase in the amount of Taxonomy-aligned mortgages across the Nordic markets. However, in cases where loans had multiple col- lateralised assets with conflicting Taxonomy alignment, the full loan amount was considered to be non-aligned. This methodological change, implemented in 2025, adversely affected the amount of Taxonomy-aligned mortgages. For buildings built after 31 December 2020, the building is considered to significantly contribute to climate change mitigation if it has a PED which is at least 10% lower than the threshold for the nearly zero energy building (NZEB) requirements in the respective country. Due to a lack of PED data in Norway and Denmark, small residential build- ings with an EPC class A label in Norway and all buildings with an EPC class A2020 label in Denmark were consid- ered to have a PED 10% lower than the national threshold set for nearly zero energy buildings. In Sweden and Finland, the assessment was based on PED thresholds. The assessment of whether a building has been built before or after 31 December 2020 should be based on the date of the application for a construction permit. Due to data limitations, our assessment was made based on when the building had been completed. This is a conservative approach due to the stricter assessment criteria for newer buildings. Physical climate risk assessments for residential real estate lending were carried out to determine whether the exposures fulfilled “do no significant harm” criteria. Exposures identified as being subject to medium or high physical climate risk were not assessed as Taxonomy aligned. The assessments applied a Representative Concentration Pathway scenario of 4.5 for the time period 2011–40. As retail exposures only include mortgages and not renovation loans or motor vehicle loans, minimum safeguards were not considered. Tables 8 and 9, on GAR sector information, provide a breakdown of Taxonomy-eligible and Taxonomy-aligned exposures to CSRD companies by sector. The first 10 rows are based on the principal activity of the counterparty (using NACE codes) and only cover activities identified in the Taxonomy delegated acts. The 10 largest sectors based on total exposure are displayed. The table also includes information on the total exposure to companies’ nuclear and gas activities. The off-balance sheet KPIs covering financial guaran- tees and assets under management (AuM) have been omitted in the 2025 disclosures. The assets covered by the AuM KPI are assets delegated to Nordea Investment Management by Nordea Bank Abp. As the net turnover generated by the activities covered by the KPIs accounted for only 0.1% of the Nordea Group’s total net turnover in 2025, the KPI was considered to be non-material. Table 18 – Template for the KPI of Asset Managers provides a clearer overview of the Taxonomy alignment of our AuM. The KPI covering financial guarantees was also consid- ered to be non-material since the net turnover generated by the activities covered by the KPI accounted for only 0.1% of the Nordea Group’s total net turnover in 2025. The reporting in the credit institution tables (Tables 1–3, below) is based on data originating from our internal core banking systems and external data on (i) CSRD companies’ disclosed Taxonomy eligibility and alignment KPIs, includ- ing fossil gas and nuclear exposures, (ii) EPCs for buildings, (iii) PEDs for buildings and (iv) physical climate risk assess- ments in relation to residential real estate lending. CLIMATE CHANGE MITIGATION Activity 7.7: Acquisition and ownership of buildings Buildings built before 31 Dec 2020 31 December 2020 Buildings built after 31 Dec 2020 Substantial contribution: At least EPC class A or within the top 15% of the national or regional building stock in PED terms A PED at least 10% lower than the national threshold set for nearly zero energy buildings Do no significant harm: Climate change adaptation: any exposures subject to medium or high physical climate risk are not assessed to be Taxonomy aligned. Minimum safeguards: Retail exposures: no MS assessment for activity 7.7 ===== SIDA 109 ===== Nordea Annual Report 2025 108 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU Taxonomy disclosures, cont. Data and methodology for the KPIs to be disclosed by asset managers The subsidiaries covered by the asset manager KPI (Table 14, on page 190) are Nordea Investment Funds S.A. and Nordea Funds Ltd. The KPI of the template for asset man- agers is a weighted average of the value of (i) investments in the Taxonomy-aligned economic activities of investee companies, (ii) debt securities with the purpose of financ- ing specifically identified activities or projects, and (iii) environmentally sustainable bonds issued by investee companies. The equity and debt securities are assessed for Taxonomy eligibility and alignment based on the Taxonomy-eligible and Taxonomy-aligned activities financed by their proceeds. In line with the amending delegated regulation, the methodology for calculating the KPIs for asset managers changed during 2025. As with the green asset ratio (GAR) for credit institutions, the methodological change included a reduction in the denominator of the GAR for asset man- agers due to the exclusion of exposures to non-CSRD com- panies (except for those with voluntary disclosures or with a parent company falling under the CSRD), derivatives, cash and cash equivalents, on-demand interbank loans, and other categories of assets, such as goodwill and com- modities. The numerator also changed to include expo- sures to non-CSRD companies that had voluntarily disclosed Taxonomy KPIs. In addition to the methodologi- cal changes, the tables were simplified and the tables including activities related to the nuclear and fossil gas sectors were omitted, with the information instead included in the template for the KPI of asset managers. The data on CSRD undertakings was acquired from a third-party service provider. There has been an increase in total Taxonomy-aligned assets which was not due to the amending delegated reg- ulation. The increase was due to an increase in the total amount of Taxonomy-aligned exposures to activities con- tributing to the environmental objectives sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity and ecosys- tems, as non-financial undertakings have been obliged to disclose alignment since the financial year 2024. There has also been an increase in the total amount of Taxonomy-eligible exposures to activities contributing to the four aforementioned environmental objectives as financial undertakings have been obliged to disclose eligi- bility since the financial year 2024. The assets in scope for asset managers are exposures to investee companies falling under the CSRD (financial and non-financial undertakings), non-CSRD investee com- panies that voluntarily disclose Taxonomy KPIs or have a parent company falling under the CSRD, local government and municipal financing, and use-of-proceeds debt instru- ments. An overview of how we assess exposures to inves- tee companies is provided below. Exposures Assessment Exposures to CSRD investee companies For both financial and non-financial CSRD companies, we weight the exposure to the company’s share of eligible and aligned turnover and capital expenditures (CapEx) as provided by our data provider. Exposures to non-CSRD investee companies If a non-CSRD company has voluntarily disclosed Taxonomy KPIs, we include this exposure and assess it following the same approach as for exposures to CSRD companies. Exposures to local government and municipal financing We include these exposures and assess them following the same approach as for exposures to CSRD companies so long as they have been assessed for Taxonomy eligibility and alignment in the information provided by our data provider. Exposures to use-of-proceeds debt instruments We include these exposures and assess them following the same approach as for exposures to CSRD companies so long as they fulfil our internal sustainable labelled bond criteria. ===== SIDA 110 ===== Nordea Annual Report 2025 109 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU Taxonomy disclosures, cont. Table 1 – 0. Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation 31 December 2025 Total exposure to Taxonomy- aligned activities (EURm) KPI KPI % coverage (over total assets)2 (%) non assessed exposures (% of covered assets)3 (%) non assessed exposures (% of covered assets)3 (%) Turnover-based CapEx-based Turnover-based CapEx-based Turnover-based CapEx-based Main KPI Green asset ratio (GAR) stock 16,001 16,481 6.2% 6.4% 46.2% 0.0% 0.0% 31 December 2025 Total exposure to Taxonomy- aligned activities (EURm) KPI KPI % coverage (over total assets)2 (%) non assessed exposures (% of covered assets)3 (%) non assessed exposures (% of covered assets)3 (%) Turnover-based CapEx-based Turnover-based CapEx-based Turnover-based CapEx-based Additional KPIs GAR (flow) 3,059 3,432 5.1% 5.8% 46.3% 0.0% 0.0% Trading book1 Financial guarantees4 - - - - 0.3% 100% 100% Assets under management4 - - - - 0.1% 100% 100% Fees and commissions income1 1) Fees and commission income and Trading book KPIs will only apply from 2028. 2) The percentage of assets covered by the KPI over the institution’s total assets. 3) In accordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 4) Omitted in line with Article 4(1)(f) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. Notes: Cells shaded in grey represent KPIs that are not subject to disclosure. In line with the Regulation (EU) 2026/73, the methodology to calculate the GAR changed during 2025. Therefore, this KPI should not be compared with that of the previous year. For information, the 2024 reported KPIs were as follows: Turnover 4.0% and CapEx 4.1%. Table 2 – Weighted KPIs of financial conglomerate (turnover) The table provides a weighted average of KPIs based on our Taxonomy-eligible and Taxonomy-aligned activities as a financial conglomerate. The KPIs are collected in the respective tables from the business areas and weighted based on the business areas’ share of Group revenue. Revenue (EURm) Propor- tion of Group revenue Tax- onomy- eligible Tax- onomy- aligned “Non- assessed exposures5” Breakdown per environmental objective Of which Use of Proceeds Of which tran- sitional Of which enabling Climate Change Mitigation (CCM) Climate Change Adapta- tion (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiver- sity and Ecosys- tems (BIO) Banking1, 2 10,557,652 89.9% 64.5% 5.6% 5.6% 0.0% 0.0% 0.0% 0.0% 0.0% 4.6% 0.1% 0.1% 0.0% Asset management3 505,818 4.3% 2.0% 0.3% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% - 0.0% 0.1% 0.0% Investment firms4 679,905 5.8% - - - - - - - - - - - - Total operating income 11,743,375 100.0% Group average KPI 66.5% 5.9% 5.8% 0.0% 0.0% 0.0% 0.0% 0.0% 4.6% 0.2% 0.2% 0.0% 1) “Banking” includes all subsidiaries which are consolidated based on the equity method. 2) The green asset ratio stock is our main KPI and is therefore used as the KPI for our banking business segment. 3) “Asset management” covers the subsidiaries Nordea Investment Funds S.A . and Nordea Funds Ltd. 4) “Investment firms” covers Nordea Investment Management AB. This KPI is considered non-material and is not disclosed as the revenue related to the KPI is less than 10% of our total revenue and is mainly from internal Nordea Group customers. 5) In accordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. Note: Cells shaded in grey represent KPIs that are not subject to disclosure. Table 3 – Weighted KPIs of financial conglomerate (CapEx) The table provides a weighted average of KPIs based on our Taxonomy-eligible and Taxonomy-aligned activities as a financial conglomerate. The KPIs are collected in the respective tables from the business areas and weighted based on the business areas’ share of Group revenue. Revenue (EURm) Propor- tion of Group revenue Tax- onomy- eligible Tax- onomy- aligned “Non- assessed exposures5” Breakdown per environmental objective Of which Use of Proceeds Of which tran- sitional Of which enabling Climate Change Mitigation (CCM) Climate Change Adapta- tion (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiver- sity and Ecosys- tems (BIO) Banking1, 2 10,557,652 89.9% 65.1% 5.8% 5.8% 0.0% 0.0% 0.0% 0.0% 0.0% 4.6% 0.1% 0.1% 0.0% Asset management3 505,818 4.3% 0.9% 0.3% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% - 0.0% 0.1% 0.0% Investment firms4 679,905 5.8% - - - - - - - - - - - - Total operating income 11,743,375 100.0% Group average KPI 66.0% 6.0% 6.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.6% 0.2% 0.2% 0.0% 1) “Banking” includes all subsidiaries which are consolidated based on the equity method. 2) The green asset ratio stock is our main KPI and is therefore used as the KPI for our banking business segment. 3) “Asset management” covers the subsidiaries Nordea Investment Funds S.A . and Nordea Funds Ltd. 4) “Investment firms” covers Nordea Investment Management AB. This KPI is considered non-material and is not disclosed as the revenue related to the KPI is less than 10% of our total revenue and is mainly from internal Nordea Group customers. 5) In accordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. Note: Cells shaded in grey represent KPIs that are not subject to disclosure. ===== SIDA 111 ===== Nordea Annual Report 2025 110 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other ENVIRONMENT INFORMATION E1 Climate change With our firm commitment to be net zero by 2050, we are working closely with our customers to support their transitions to net zero and have integrated climate change into our strategy and risk man- agement to capture opportunities and strengthen our resilience. The Paris Agreement had its 10th anniversary in 2025. Progress in reducing emissions has been made, but not fast enough to meet the Paris targets. At the current pace, global warming is likely to exceed 1.5°C within the next decade, contributing to more severe extreme weather events, including floods, heatwaves and wildfires. 2025 was characterised by growing geopolitical tensions and regional divergence in climate policy. Amid the turbu- lence and climate deregulation, we saw the European Union maintain a strong regulatory framework for climate neutrality by 2050 and agree on a 2040 climate target. In our home markets, the Nordic countries showed progress towards their net zero goals. The polarised landscape underlines the importance of a supportive policy environ- ment for the real economy transition, which directly affects our ability to fulfil our climate commitments. As a leading Nordic financial services group, we are focused on supporting our customers’ transitions to net zero and contributing to the climate objectives of the Nordic countries in an inclusive manner. We work closely with our customers to understand their decarbonisation priorities and support them in financing their transition plans. Recognising that customers are at different stages in their transition journeys, we adapt our offerings to meet their needs and focus on developing capabilities and solutions that respond to the increasing need to finance the transition. Climate change considerations are also integrated into our investment strategies as a responsible asset manager. We are committed to supporting the transition through active ownership and engagement with investees and asset managers as well as a strong sustainable investment offering. Besides working together with customers and invest- ees, we draw on our expertise and partner with the broader community to support system-wide change. Through engagement with societal stakeholders and par- ticipation in policy dialogues, we strive to support market conditions that can incentivise and further increase the supply of and demand for transition financing. We also play an active role in international climate finance net- works, helping to further develop and standardise prac- tices for transition planning, target setting and risk man- agement across the industry. We have made strong progress in executing our climate transition plan and supporting our customers with theirs. Our lending portfolio emissions have fallen by 44% since 2019 and we have facilitated EUR 235bn in sustainable financing since 2022. In the run-up to 2030, we will con- tinue to build resilience and work closely with our custom- ers to support their individual transition journeys. Our new climate targets for 2030 Nordea Bank: Engage annually with corporate customers (collectively representing at least 70% of financed emissions in the large corporate lending portfolio) on the topic of net zero transition during the period 2026–30 Nordea Asset Management: By 2030, ensure that 100% of transition-critical investee companies are either aligned with the Paris Agreement or are subject to active stewardship to improve alignment Operations and supply chain: By 2030, ensure that all identified transition-critical suppliers are either aligned with the Paris Agreement or are subject to active engagement to improve alignment “ We will continue to build resilience and work closely with our customers.” 44% reduction in greenhouse gas emissions across our lending portfolio since 2019 ===== SIDA 112 ===== Nordea Annual Report 2025 111 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Impacts, risks and opportunities overview for E1 Climate change Impact, risk or opportunity Title Value chain Time horizon Climate change mitigation Positive impact (actual) Financing and supporting the transition of customers, investee companies and sectors Negative impact (actual) GHG emissions from our lending and investment portfolios and capital market activities Risk Climate-related transition risk Opportunity Financing and investing in activities to mitigate climate change and enhance adaptation Climate change adaptation Risk Climate-related physical risk Energy Positive impact (actual) Financing energy efficiency activities and engaging with investees regarding energy efficiency activities Negative impact (actual) Final energy consumption in our lending and investment portfolios Risk Climate-related transition risk Very long term Short term Medium term Long term Upstream Own operations Downstream In this section We focus on how we manage the climate change-re- lated impacts of our business activities, and how we mitigate associated risks. We examine the material impacts, risks and opportunities identified in our DMA and describe the policies, actions, resources and targets we have in place to address them. This section also contains relevant financed emissions disclosures and information on our energy consumption. Material impacts, risks and opportunities and their interaction with strategy and business model Matters concerning climate change are directly relevant for our strategy and business model. Part of our strategy as a financial services group involves supporting the transition to a low-carbon, cli- mate-resilient economy – in line with the goals of the Paris Agreement – by financing and supporting investment in more sustainable technologies and businesses. At the same time, we seek to strengthen our business to make it more resilient and future proof. The greenhouse gas (GHG) emissions associated with our lending and investment portfolios and generated by our own operations amounted to 19.8 MtCO2e in 2025 (details are provided in the table “Gross Scopes 1, 2, 3 and total GHG emissions” on page 137). There are also GHG emissions associated with our sovereign debt financing (details are provided in separate tables on page 145). Our scope 1, 2 and 3 emissions are partially caused by high energy consumption across the value chain and contribute to our negative climate-related impacts on people and the environment. It is not possible to estimate the direct or indirect effects of these emissions on people or the envi- ronment, or a time horizon for these effects, due to the complex nature of climate change. These impacts are con- nected to our business relationships as a financial services company (providing financing to corporates and house- holds and investing in companies). Our own operations equate to around 0.15% of our total emissions. Financing and investment to support the transition of customers and sectors has a positive climate impact when counterparties transition in line with the goals of the Paris Agreement. For example, it can support the scaling of solutions to address climate change or help achieve very rapid GHG reductions in high-emitting sectors. We view such transition financing as an opportunity that we can explore further. Where sustainable funding is concerned, we report on positive impacts such as water saved, energy saved through energy efficiency, clean energy produced, and emissions avoided in our green bond asset portfolio. We strive to increase our positive impact by pursuing opportunities to finance and invest in adaptation solutions and opportunities to scale funding connected to activities that mitigate climate change. Additional details on how we help manage the impacts of climate change are pro- vided in “Transition plan” on page 114. Changes in the climate will affect society and pose mul- tiple risks to the economy, creating opportunities and introducing new risks for banks. In particular, physical and transition risks associated with climate-related changes can impact the balance sheets and profitability of financial institutions. Understanding and managing these risks and their impacts over time is important for us and is a key consideration where our strategy and business model are concerned. Further details on the risk management of our lending and investment portfolios related to climate change are provided below. ===== SIDA 113 ===== Nordea Annual Report 2025 112 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Transitional risk vulnerability 321 1 2 3 Physical risk vulnerability Air transportation Real estate Crops, plantation & hunting Power production Fishing & aquaculture Animal husbandry Paper & forest products Accommodation & leisure Shipping Construction Mining & supporting activities Utilities, distribution & waste management Wholesale trade IT services Healthcare Banks Funds Insurance Industry names have been selectively identified to illustrate the population and distribution across vulnerability bands. Lending portfolio Our risk management framework includes a process to perform a bank-wide materiality assessment (MA) to con- sider how climate change risks can be drivers of our risk types (for example, credit, market, liquidity and opera- tional risks). Our MA considers various levels of granularity (for example, individual asset classes, sectors, customers and geographies) to ensure relevant risk coverage of our exposures. The assessment includes both quantitative and qualitative components and is built on insights from other internal processes such as heatmapping, scenario analysis and stress testing. The matrix below outlines our view of climate change vulnerability by sector. Climate-related transition risk is mainly driven by changes in regulation aimed at advancing the transition to a low-carbon economy. To meet the Nordic countries’ GHG emissions reduction targets, companies will need to invest in technology and pay higher prices for polluting. They could lose revenue due to higher costs and changes in con- sumer behaviour. Company transitions also rely significantly on public and private capital investment, which may have implications for economic growth, productivity and infla- tion. We see this as an opportunity for our business, as we can be involved in steering capital towards adaptation solu- tions and funding activities that mitigate climate change. Climate-related transition risks can also directly mani- fest themselves in our business by affecting the value of collateral pledged to us. For example, poor energy effi- ciency can impact the market resale value of real estate, ships and vehicles. Climate-related transition risk drivers can also relate to legal and reputational risk, stemming from changed mar- ket sentiment and litigation linked to greenwashing. In general, transition effects may materialise at any point in the short-to-long term, but could also materialise over longer time horizons if there is a delayed transition or no transition ahead of 2050. Climate-related physical risk impacts in the Nordics are mainly driven by water-based hazards, predominantly flood- ing events. These are reinforced by chronic effects such as variability in temperature and precipitation, reduction in snow/ice and sea level rise, and increases in soil moisture and ground frost. Some of these impacts are already seen in the short term, but they are considered chronic and more likely to materialise over longer time horizons. The main direct impact of climate-related physical risks on us is within real estate, through collateral devaluation. The main indirect impact is through potential credit quality deterioration due to disruptions to customers’ business operations, for example, through their global value chains. We use stress testing and scenario analysis to assess the resilience of our business model and sustainability strategy. Stress testing is part of our internal capital ade- quacy assessment process (ICAAP), which includes a short-term transition risk scenario. Additionally, our pru- dential transition planning process includes medium-term and long-term scenario analysis. These exercises explore theoretical scenarios with different climate policy assump- tions to address the uncertainty related to the pace and stringency of policy changes and market shifts. The short-term scenario assumes a sharp increase in the carbon tax, aligned with a delayed and then acceler- ated transition, which increases energy prices and triggers changes in energy demand. This affects sectors’ output and costs depending on their emissions and energy inten- sity. Furthermore, it leads to real estate devaluation, in particular for less energy-efficient buildings, which will be subject to increased operational costs. The medium-term scenarios compare different transition scenarios from both ends of the carbon pricing spectrum. These focus on different climate policies and dynamic factors that cannot be captured in the short term, such as emissions reduction efforts in line with customers’ transition plans. The long-term analysis is aimed at identifying the impacts and risks associated with potential portfolio reallocations between sectors supporting our long-term climate targets. Our assessment of climate-related physical risks covers the following: • acute physical hazards (short to very long term) – coastal flooding and storm surges – extreme precipitation and inland flooding • chronic physical hazards (medium to very long term) – variability in temperature – variability in precipitation – reduction in snow/ice and sea level rise – increases in soil moisture and ground frost. Our current approach focuses on assessing how changes in physical hazards could impact valuations of immovable properties over time up to the year 2100. We use vulnerabil- ity mapping to identify assets sensitive to impacts from chronic and acute climate change events. The mapping combines physical hazard vulnerability and asset distribu- tions, and enables us to identify areas where physical hazard risks could be considered to be potentially material. Physical hazard sensitivity is calculated at the postal code level. Industries identified as exposed to climate-related risks ===== SIDA 114 ===== Nordea Annual Report 2025 113 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. In 2025 we assessed our exposures to climate-related physical risks in three of the Representative Concentration Pathway (RCP) scenarios developed by the scientific com- munity and adopted by the Intergovernmental Panel on Climate Change (RCPs 2.6, 4.5 and 8.5), covering the short, medium and long terms up to the year 2100 (2011–40, 2041–70 and 2071–2100). RCP 2.6 is aligned with the Paris Agreement, while RCP 8.5 is the most severe climate sce- nario. The table to the right shows our exposures subject to climate-related physical risks in RCP 4.5 for the time period 2011–40. To support the assessment, we used physical haz- ard data from the Swedish Meteorological and Hydrological Institute (SMHI). The data used consists of information on 12 different climate hazard indices, which can be divided into climate indices, hydrological indices, and fire risk indi- ces. Each hazard index indicates the change in the respec- tive physical hazard due to climate change. Our exposures with collateral were allocated to postal codes with a physical location. We also conducted a review of scientific studies to determine the actual possible impact on the value of properties that were identified as being at risk due to physical hazards. The availability of reliable research meeting all criteria applicable to our portfolio was limited, especially where geographical scope, time frame and climate risk type were concerned. Actual impacts could therefore differ from internal findings. Nevertheless, we attempted to adopt more conservative assumptions in order to not underestimate the exposures at risk. The final assessment varied depending on the type of risk (chronic, acute, or associated with sea level rise). The findings of the 2025 MA – in particular the results of the climate change stress testing under the ICAAP – led us to conclude that ESG-related credit risk, specifically cli- mate change-related credit risk, was material. Additional capital was therefore reserved to cover credit risk linked to climate-related risk. Climate-related transition and physi- cal risks led to a marginal increase in loan losses under different ICAAP scenarios. The table below shows the share of our end-2025 expo- sure in each asset class that was exposed to climate-re- lated physical risk in RCP 4.5 during the period 2011–40. Climate-related physical risks RCP 4.5 scenario Residential real estate Commercial real estate Residential and Commercial real estate Chronic 1.3% 1.0% 1.2% Acute 0.9% 0.9% 0.9% Chronic and acute 0.8% 0.8% 0.8% Investment portfolio We conducted the resilience analysis of the investment portfolios of Nordea Asset Management (NAM) and Nordea Life & Pension (NLP) by assessing their climate value at risk. We applied the MSCI Climate Value-at-Risk (Climate VaR) tool for listed equities and corporate bonds, which covers assessments of both climate-related risks and climate-related opportunities across a range of plausible climate change scenarios. The following three scenarios produced by the Network for Greening the Financial System (NGFS) were selected: 1. The “Net Zero 2050” scenario, which limits global warm- ing to 1.5°C through the immediate introduction of strin- gent climate policies and innovation, reaching net-zero emissions by 2050. Climate-related physical risks are rel- atively low but climate-related transition risks are high. 2. The “Delayed Transition” scenario, which assumes that new climate policies are not introduced until 2030. After 2030, there is a 67% chance of limiting global warming to below 2°C. This leads to higher climate-related physical risks compared with the Net Zero 2050 scenario. 3. The “Nationally Determined Contributions (NDCs)” sce- nario, which includes all pledged policies reflected in the NDCs, even if they are not yet implemented. Emissions decline but nonetheless lead to 2.6°C of warming, which is associated with moderate-to-severe climate-related physical risks. For each of these scenarios, climate risk was assessed using three distinct climate metrics: policy risk, technology oppor- tunities and physical risk. Policy risk refers to the investment value at risk due to future climate policy. Technology oppor- tunities represent the investment upside due to low-carbon technology revenues. Combined with policy risk, these result in net climate-related transition risk. Physical risk refers to the investment value at risk materialising as a result of climate-related acute weather events and chronic changes in weather patterns. For both NAM and NLP, cli- mate-related costs for companies were calculated for both transition and physical risks, with transition risk-related costs calculated up to 2050 and physical risk-related costs calculated up to 2100. These costs were discounted to the net present value to determine the climate value at risk for current portfolios under a range of possible climate scenar- ios and temperature outcomes. The table below depicts the value at risk as at the end of 2025. We view scenario analysis as an important tool for illus- trating how different climate pathways may affect our portfolio through both physical and transition risks. At the same time, we recognise that current models for physical risk focus primarily on direct impacts on real assets. These models do not fully capture all dimensions of climate-re- lated risk and uncertainty for corporates or investment portfolios, such as complex value chain impacts, adapta- tion responses, systemic and macroeconomic impacts, or the compounding effects of multiple events occurring at once. For this reason, our scenario analysis should be viewed as indicative rather than predictive. Methodologies and models in the physical risk area con- tinue to develop, and data on, for example, macroeconomic effects linked to physical climate risk is becoming increas- ingly available. Preliminary analysis of such data suggests that chronic, long-term climate impacts identified through a top-down macroeconomic approach can be higher than the direct impacts identified through bottom-up asset-level models. We are refining our approach by expanding our core climate risk framework, assessing new data and mod- elling capabilities as they become available. The latest resilience analysis, using the methods and tools described above, was conducted in January 2026 using data as at the end of 2025. Climate value at risk (Climate VaR) Net zero 2050 Delayed transition NDCs Climate VaR as at the end of 20251 Policy risk (%) Technology opportunities (%) Physical risk (%) Policy risk (%) Technology opportunities (%) Physical risk (%) Policy risk (%) Technology opportunities (%) Physical risk (%) Nordea Asset Management Listed equities -10.2 1.6 -0.6 -3.6 0.3 -1.0 -2.5 0.4 -1.5 Corporate bonds -3.2 0.0 0.0 -0.4 0.0 0.0 -0.3 0.0 0.0 Nordea Life & Pension Listed equities -8.9 1.5 -0.5 -3.0 0.3 -0.9 -2.0 0.3 -1.3 Corporate bonds -4.8 0.1 0.0 -0.6 0.0 0.0 -0.4 0.0 -0.1 1) Policy risk and technology opportunities are calculated at the instrument level, meaning they take into account the remaining maturity of individual bonds. The data cover- age is 81% and 88% for policy risk and 71% and 78% for technology opportunities for NAM and NLP, respectively. Physical risk values are based on company levels (listed equities or corporate bonds) and are not adjusted for maturity and instrument type. The data coverage for physical risk is 81% for NAM and 88% for NLP. ===== SIDA 115 ===== Nordea Annual Report 2025 114 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Transition plan We have fully integrated climate change into our business strategy and risk management as it is material for us in terms of impacts, risks and opportunities. Our transition plan for climate change mitigation is the strategy we have in place to achieve net-zero GHG emissions across our value chain by the end of 2050 at the latest and build long-term resilience. The plan is embedded within and aligned with our financial planning and overall business strategy, which incorporates strategic sustainability priori- ties approved by the Board of Directors. As a financial services group, our greatest climate change-related impacts, risks and opportunities are asso- ciated with the financed emissions originating from our lending and investment portfolios, which represented 99.9% of our total GHG emissions in 2025. As a responsible bank, we also want to lead the way by decarbonising our own operations. To support our long-term net zero objec- tive, we have set short- and medium-term climate targets for our lending and investments and for our own opera- tions. Our targets were set using normative scenarios and modelled net zero pathways, and are described in more detail on pages 124–130. The key components for the implementation of our transition plan build on our identified decarbonisation levers. They include the policies and sector guidelines we apply, the products and services we offer to customers and investees, and our engagement with customers, port- folio companies, suppliers, the financial industry and broader society. Our guidelines include sector and the- matic guidelines, which apply to all business areas and own operations and provide guidance on different ESG themes. They also specify our requirements for our lending and investments to mitigate our exposure to climate-re- lated transition and physical risks. Moreover, they include expectations for our customers and portfolio companies to encourage them to adopt best practices and actions to improve their performance. More information on our poli- cies and guidelines can be found on pages 118–120. We monitor progress on our transition plan through quarterly ESG reporting and forecast our development in relation to our long-term objective and business strategy. This helps us ensure our business develops in line with the plan, supporting our customers’ and society’s transition to net zero. To accelerate the plan’s implementation, we have established sustainability-related key performance indica- tors, which have been integrated into our variable pay plans (see “General information“ on page 90 for more information). We continuously strive to strengthen our transition planning by reviewing our targets annually and improving our systems and data quality. A particular focus is the implementation of the new ESG-related require- ments deriving from the amended Capital Requirements Directive and the associated EBA Guidelines on the man- agement of ESG risks – relating to the identification, measurement and management of ESG risks. These requirements also include an obligation to develop spe- cific plans to monitor and address the financial risks aris- ing in the short, medium and long terms from ESG factors (“prudential transition plan”), which will help us further enhance our ESG risk management. We also seek to drive ambition and standardisation in transition planning across the industry through active involvement in financial indus- try networks. ===== SIDA 116 ===== Nordea Annual Report 2025 115 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Lending portfolio We have set lending-related climate targets based on in-depth analysis of our portfolio emissions and climate risks; science-based net-zero-aligned pathways; and the Guidance for Climate Target Setting for Banks provided by the United Nations Environment Programme Finance Initiative (UNEP FI). To steer our lending portfolio towards our long-term net zero objective and reduce our transition risk, we have adopted a portfolio-wide target to reduce our financed emissions by 40–50% by the end of 2030 compared with 2019. To support progress towards our portfolio target, we have also set sector-specific targets, based on climate-related risk deep dives on material sec- tors within our lending portfolio and aligned with our sec- tor roadmaps. In recent years we have taken action to ensure our large corporate customers in climate-vulnerable sectors have transition plans in place, and have factored these into our business planning. Engaging with our customers, particu- larly those in high-emitting sectors, and providing them with advice and financing for their transition plans is key for supporting the decarbonisation of the real economy and reducing our financed emissions. Recognising that different sectors and customers are at different stages in their transition journeys, we are widening our sustainable product offering beyond sustainabili- ty-linked loans to meet different needs. At the same time, we are enhancing our lending and green loan offerings to support the development of technologies and infrastructure needed for a resilient low-carbon economy. While our focus is on engagement and financing the transition, specific economic activities, such as the extrac- tion and combustion of fossil fuels, are ultimately incompat- ible with the transition to a net-zero economy. The financing of such activities poses elevated lock-in risks associ ated with stranded asset risk. Limiting exposure to these activities thus serves as risk mitigation. To reduce our transition risk, we fully phased out lending to companies in coal mining and coke oven product manufacturing in 2021 and to companies in thermal peat mining in 2025, with an exception for customers impacted by energy security meas- ures in Finland. We continue to have a restrictive approach to the oil and gas sector. By the end of 2025, our lending to the oil and gas exploration and production sector amounted to EUR 3m (0.001% of total lending). This represents a decrease of 99.7% between 2019 and 2025 (EUR 884m at the end of 2019). The main decarbonisation levers that have contributed to the emissions reductions in our lending portfolio include changes to the composition of our lending book, including lower lending volumes in the Shipping and Oil & Gas port- folios, and emissions reductions achieved by our customers. See page 125 for further details. To inform our strategy-setting process and risk manage- ment, we perform a business environment scanning (BES) each year. The BES gives us insights into how climate and environmental factors may impact our business environ- ment. These insights and conclusions support our business areas in making informed strategic decisions, managing their business strategies and capturing opportunities. They also inform the identification of risks in the materiality assessment and support us in further developing our frameworks for climate and environmental risk manage- ment, stress testing and capital planning. Moreover, the insights gained from BES support us in complying with rele- vant supervisory and regulatory requirements regarding the alignment of business models with the external business environment. ===== SIDA 117 ===== Nordea Annual Report 2025 116 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Investment portfolio We have set short- and medium-term climate targets for the investment portfolios of Nordea Asset Management (NAM) and Nordea Life & Pension (NLP). The targets are based on comprehensive analysis of our portfolio carbon intensities and transition-critical sectors; science-based net-zero-aligned pathways; and the Institutional Investors Group on Climate Change Net Zero Investment Framework. Our target is to reduce the carbon intensities of NLP’s and NAM’s portfolios by 40–50% by the end of 2029 and 50% by the end of 2030, respectively. Engaging with investee companies in high-emitting, transition-critical sectors is key to supporting the decar- bonisation of the real economy and reducing the carbon intensity of our investment portfolios. We actively engage with these companies, both unilaterally and collabora- tively, to help drive them to decarbonise and align with net zero pathways. To steer our work, we have formulated engagement targets addressing portfolio companies within the high-emitting, transition-critical sectors in the portfolios. We also engage with asset managers to encourage net zero alignment. We offer investment advice and a wide range of sus- tainability-focused investment products to our customers based on their sustainability preferences. Our Nordea Sustainable Selection and Sustainable Selection Improve fund offerings are characterised by enhanced sustainabil- ity and engagement criteria, respectively. We have a target to increase the share of investments in NLP´s portfolio supporting nature and the climate transition by 20% by the end of 2030 compared with 2023, and will therefore strive increasingly to invest in companies that provide solutions needed for the transition. We will also continue to develop and grow our sustainability-focused offerings to cater for investor demand. All our climate targets for investments are integrated into NAM’s and NLP’s invest- ment strategies and portfolio management, with responsi- ble investment policies guiding the investment processes. Between 2019 and 2025, the weighted average carbon intensity (WACI) of NAM’s listed equity and corporate bond portfolios decreased significantly, by 52%. While changes in portfolio composition and other factors, such as inflation, contributed to the decrease, the main driver was investee company emission intensity reductions, especially in high-emitting sectors such as utilities and industrials. These intensity reductions were attributable in approximately equal part to absolute emissions reductions and non-infla- tionary increases in investee company revenues without an associated increase in emissions. 2025 figures for NLP show a carbon footprint decrease of 40% between 2019 and the end of 2025 for listed equities, corporate bonds and directly held real estate. The target performance and the decarbonisation levers are discussed in more detail on page 128. Our policies regarding the thermal and metallurgical coal mining sectors and the oil and gas extraction and produc- tion sectors are very restrictive. By the end of 2025, our investments in organisations classified as coal mining com- panies amounted to EUR 1.5m for NAM, while NLP did not have any such investments, and our investments in oil and gas extraction companies and/or companies supporting oil and gas extraction amounted to EUR 1,484m (EUR 1,461m for NAM and EUR 23m for NLP). To identify our exposure, we use the NACE industry classifications, which in 2025 we complemented with the Bloomberg Industry Classification Standard (BICS) industry categories Oil & Gas and Oil & Gas Services to better capture our exposure. We have restrictive policies for investing in companies in the upstream oil and gas sector. As a consequence, there are currently no investments in oil and gas exploration and pro- duction companies among NLP’s products and such compa- nies are excluded from 76% of NAM’s funds. In the remain- ing NAM funds, a limited exposure to these companies caters to customers with investment strategies that cannot deviate from indexes or who want to invest in certain geog- raphies. We take responsibility for these exposures by voting at annual general meetings and ensuring an active and con- structive dialogue with the companies to push them to improve their climate and environmental standards. E1 Climate change, cont. ===== SIDA 118 ===== Nordea Annual Report 2025 117 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Own operations To support progress towards our long-term net zero objective and to lead the way as a responsible bank, we have set a target to reduce greenhouse gas emissions from our own operations and supply chain by at least 50% by 2030. To achieve this target, we have defined eight actions. In 2025 the emissions reduction achieved through four of the eight actions was quantified to assess the impact of these actions as decarbonisation levers. The four actions were decrease in air travel, electric company cars only policy, paperless banking, and efficient energy con- sumption in buildings. Together, these have led to a 52% reduction in the carbon emissions from our own opera- tions between 2019 and 2025. The actions are further described in “Own operations” on page 123. In addition to our eight actions, engagement with our suppliers on their transitions and net zero alignment is key to supporting the decarbonisation of our supply chain. Our 2025 target was to ensure that 80% of our related spend- ing was on suppliers either aligned with the Paris Agreement or subject to active engagement to become aligned. We achieved this target before the end of the year. Our new engagement target focuses on transition- critical suppliers. On our long-term path to net zero, we are also commit- ted to making a net positive carbon contribution in our own operations (through offsetting) by 2030. To offset our residual emissions within the current target scope, we have purchased carbon credits. Up until 2023 we sup- ported the generation of renewable energy through the purchase of avoided emissions credits. In 2024 we revised our strategy and shifted to neutralising emissions through the purchase of carbon removal credits. We are imple- menting the revised strategy by building a portfolio of offtake agreements with carbon dioxide removal suppli- ers, and signed our first agreement in 2025 (see page 150 for details). We are currently reviewing our operational carbon strategy and our medium-term target for 2030. Investments for implementation Due to the nature of our business model as a financial ser- vices group, our greatest impact on climate change occurs via our lending and investment portfolios. We report coun- terparties’ EU Taxonomy eligibility and alignment according to their capital expenditure (CapEx) KPIs. Our own CapEx and operational expenditure (OpEx) related to mitigating climate change via portfolio management are focused on building capacity among our workforce, acquiring emis- sions data and developing our operating systems. The majority of costs associated with the reduction of our own operations emissions relate to investments to improve energy efficiency and emissions monitoring activities. In general, the expenditures for mitigating climate change through portfolio management are higher than those for reducing our own emissions. With reference to the exclusion criteria for the Paris -aligned benchmarks stated in Articles 12(1), points (d) to (g) and Article 12(2) of Commission Delegated Regulation (EU) 2020/1818 (the Climate Benchmark Standards Regulation), we are not excluded from the EU Paris- aligned benchmarks. E1 Climate change, cont. ===== SIDA 119 ===== Nordea Annual Report 2025 118 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Policies related to climate change mitigation and adaptation The table below provides a comprehensive overview of our policies related to (i) addressing climate-related risks and negative impacts and (ii) increasing climate-related positive impacts and opportunities. The policies guide on best practices and alignment with international conventions and standards that we encour- age and expect customers, portfolio companies and other stakeholders to follow. Overall, we have 15 climate change policies/guidelines, covering our Group operations and value chain in terms of investments, advice, lending and procurement. Our policies primarily address climate change mitiga- tion. Climate change adaptation is a prioritised area in terms of managing physical risks and is expected to be covered in depth across our policies in the future. Our climate change policies are based on international treaties, standards and initiatives such as the United Nations Framework Convention on Climate Change (UNFCCC), the Paris Agreement, the UN Global Compact, the Principles for Responsible Investment (PRI), the Principles for Responsible Banking (PRB) and the Equator Principles. They are further informed by the guidance developed by the Glasgow Financial Alliance for Net Zero, the Net-Zero Banking Alliance, the Net-Zero Asset Owner Alliance and the Net Zero Asset Managers Initiative (For more information, see “Actions and resources in relation to climate change” on page 122). In addition, we seek to make our policies compli- ant with the European Union’s environmental policy objec- tive of a climate-neutral ec onomy by 2050 and the EU action plan for financing sustainable growth. Our sector guidelines are also aligned with sectoral initiatives. With the exception of the sector guidelines, the internal rules listed in the table below form part of our internal rules framework, for which the Board of Directors is ulti- mately accountable. Although the sector guidelines are not included within the ESG Policy Framework, their development and implementation are mandated by the Board of Directors. The policies/guidelines are all available to external stakeholders at nordea.com Policy (entity) Relevance to E1 Climate change Related E1 impacts, risks and opportunities Further details Sustainability Policy (Nordea) • Defines the principles we follow to ensure the long-term sustainability of our operations and thus strengthen our long-term customer relationships and contribution to a greater good. • Describes how sustainability is managed at Nordea, including material climate change mitigation- and adaptation-related impacts, risks and opportunities. • Describes the roles and responsibilities for the governance of sustainability and broad commitments across our financing, investments and advice. • All • The Policy forms part of the policy framework overseen by the Board of Directors. • The Policy is a replica of our Group Board Directive on Sustainability. • The Group CEO is responsible for the Policy´s implementation and for having the business area and Group function heads ensure it is, where relevant, known and adhered to within their respective areas of responsibility. Position Statement on Climate Change (Nordea) • Defines the scope and principles of our climate change agenda. • Takes into account the nature of our business, where investments, credit operations and purchases can have both local and global impacts. • Lists our overall Group positions and commitments. • All • The Statement forms part of the policy framework overseen by the Group CEO. • Our Group positions and commitments include commitments to: – enable our customers to finance sustainable and renewable sources of energy and energy efficiency projects – refrain from participating in lobbying or advocacy activities aimed at weakening climate policy. Supplier Code of Conduct (Nordea) • Obliges our suppliers to share our standards and continuously collaborate with us on improvements that can have a positive impact and mitigate risk. • Includes expectations for large suppliers to commit to being net zero by 2050 at the latest and to have climate science-based transition plans in place by 2028. • Climate-related transition risks (both climate change mitigation and energy) • Climate-related physical risks • Final energy consumption in our lending and investment portfolios and own operations • The Code is overseen by the Board of Directors. • The internal rules in our Outsourcing and Third Parties Risk Policy Framework require suppliers to comply with the Supplier Code of Conduct. • The Supplier Code of Conduct is aligned with the UN Guiding Principles for Business & Human Rights, the Ten Principles of the UN Global Compact, and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. • Read more on page 177 in “G1 Business conduct”. Responsible Investment Product Distribution Policy (Nordea) • Sets out the minimum responsible investment requirements for financial products distributed by us via advice. • Explains our ESG positions, including our climate commitment and product- specific climate change positions. • All • The Policy forms part of the policy framework overseen by the Head of Asset & Wealth Management. • The Policy reflects our thematic guidelines, Position Statement on Climate Change, and sector guidelines for products in the advisory universe. • We have an investment product offering with enhanced sustainability criteria for customers that express a preference for sustainability. • Strategic partners in the advisory product universe must to commit to have net zero investment portfolios by 2050 (at the latest) and to set up a transition plan with clear targets. ===== SIDA 120 ===== Nordea Annual Report 2025 119 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Policy (entity) Relevance to E1 Climate change Related E1 impacts, risks and opportunities Further details Sector guideline for the fossil fuel based industries (Nordea) • Summarises our positions on these industries. • Details investment and financing criteria for companies in the sub-sectors oil and gas exploration and production, thermal coal, thermal peat, unconventional oil and gas, and Arctic drilling. • Financing and supporting the transition of customers, investee companies and sectors • GHG emissions from our lending and investment portfolios and capital market activities • Climate-related transition risks (both climate change mitigation and energy) • Climate-related physical risks • Final energy consumption in our lending and investment portfolios and own operations • The guideline handles some of the sectors with the most material climate impacts and risks for us. It applies to our lending, investments, facilitation and procurement, and is applicable to companies where our credit exposure exceeds EUR 1m. • The guideline covers oil, gas and offshore companies and mining companies engaged in the exploration, extraction or production of coal, peat, oil and gas. Also included are oil and gas pipeline and thermal coal heating and power production companies. Sector guideline for the agricultural industry (Nordea) • Summarises our position on this industry. • Details financing criteria for companies in the sub-sectors crop and livestock production, fishing and aquaculture, and food production. • As above • We expect agriculture customers and portfolio companies to acknowledge the Intergovernmental Panel on Climate Change (IPCC) scientific consensus on the influence of human activities on climate change and commit to align their business activities with the goals of the Paris Agreement. • Read more on page 154 in “E4 Biodiversity and ecosystems”. Sector guideline for the shipping industry (Nordea) • Summarises our position on this industry. • Details financing criteria for companies in the sub-sectors shipbuilding and maritime transportation. • Financing and supporting the transition of customers, investee companies and sectors • GHG emissions from our lending and investment portfolios and capital market activities • Climate-related transition risks (climate change mitigation) • Climate-related physical risks • Final energy consumption in our lending and investment portfolios and own operations • The guideline is applicable to all companies within the shipping sector, which is one of the sectors with the most material climate impacts, risks and opportunities for us. It applies to companies where our credit exposure exceeds EUR 1m. • The guideline is aligned with the Poseidon Principles (PP) and Responsible Ship Recycling Standards (RSRS). • We expect shipping customers and portfolio companies to acknowledge the IPCC scientific consensus on the influence of human activities on climate change and commit to align their business activities with the goals of the Paris Agreement. Sector guideline for the forestry industry (Nordea) • Summarises our position on this industry. • Includes expectations for companies in the forestry industry to invest in and work towards sustainable forestry management and for companies in all industries to work towards preventing deforestation. • As above • We expect forestry customers and portfolio companies to meet high standards with regard to the sustainable management of forestry assets, and to consider and reduce the environmental impact of produced products and services throughout their life cycle. • Read more on page 154 in “E4 Biodiversity and ecosystems”. Sector guideline for the real estate industry (Nordea) • Summarises our position on this industry. • Guides on best practice and international conventions and standards that we encourage and expect real estate companies to follow. • All • We expect real estate companies to invest in and work towards developing sustainable buildings. • Read more on page 154 in “E4 Biodiversity and ecosystems”. Sector guideline for the mining industry (Nordea) • Summarises our position on this industry. • Details procurement, investment and financing criteria for companies in the mining sector. • GHG emissions from our lending and investment portfolios and capital market activities • Climate-related transition risks (both climate change mitigation and energy) • Final energy consumption in our lending and investment portfolios and own operations • The guideline applies to mining companies where our credit exposure exceeds EUR 1m. • We expect mining companies to live up to internationally recognised and frequently applied norms and standards applicable to the areas and jurisdictions of their operations. • Read more on page 154 in “E4 Biodiversity and ecosystems”. Responsible Investment Policy (Nordea Asset Management) • Describes the framework governing the approach of Nordea Asset Management (NAM) to responsible investments. • Sets out NAM’s commitment to align its investment strategies with the goals of the Paris Agreement. • Describes NAM’s active ownership approach, with climate change included as a prioritised thematic engagement area, as well as the processes for escalation. • Sets out NAM’s expectations of investee companies regarding climate change mitigation, which go beyond international norms and conventions. • All • The Policy forms part of the policy framework overseen by the NAM Holding Board. • Companies exposed to climate risk are also expected to disclose how their long-term business strategy and profitability will be impacted by a different physical environment due to climate change. • NAM has two ESG-focused committees, with specific areas of responsibility: – the Responsible Investment Committee, which decides on and monitors exclusions and engagements at the investment level – the ESG Committee, which secures the governance of NAM’s ESG-related methods and principles. • Read more on page 154 in “E4 Biodiversity and ecosystems”. ===== SIDA 121 ===== Nordea Annual Report 2025 120 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Policy (entity) Relevance to E1 Climate change Related E1 impacts, risks and opportunities Further details Fossil Fuel Policy (Nordea Asset Management) • Sets out the guidelines for excluding fossil fuel companies that are not demonstrating a transition in line with the goals of the Paris Agreement. • All • The Policy forms part of the policy framework overseen by the NAM Holding Board. • The Policy is applicable to all Article 9 funds, and to Article 8 funds with a few exceptions. Responsible Investment Policy (Nordea Life & Pension) • Governs how sustainability is integrated into the insurance- and pension-based investment products of Nordea Life & Pension (NLP). • All • The Policy forms part of the policy framework overseen by the Nordea Life Holding (NLH) Board and the boards of directors for the local NLP entities. • NLP decides which internally or externally managed instruments to invest in. • The Policy is complemented by NLP’s Climate Change Policy and Engagement Policy. • Read more on page 154 in “E4 Biodiversity and ecosystems”. Climate Change Policy (Nordea Life & Pension) • Describes NLP’s climate commitments, the logic behind its targets, and its processes to integrate climate-related risks and opportunities into monitoring and investment decisions. • All • The Policy forms part of the policy framework overseen by the NLH Board and the boards of directors for the local NLP entities. Engagement Policy (Nordea Life & Pension) • Describes NLP’s approach to active ownership as a long-term investor. • All • As above ===== SIDA 122 ===== Nordea Annual Report 2025 121 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Exclusions Our policies also define our rules for excluding companies in sectors with the most material climate impacts. The exclusions are another component of our transition plan. Our climate impact- and risk-related exclusions are described in our sector guideline for the fossil fuel based industries and our sector guideline for the mining industry. Lending customers are informed about our policies as part of the customer dialogue and through our external website. Climate impact- and risk-related investment exclusions are continually updated in the relevant policies, which include NAM’s Responsible Investment Policy and Fossil Fuel Policy. For certain investment products, we apply enhanced criteria with additional exclusions. NLP’s exclusion criteria within coal, oil and gas explora- tion and production, unconventional oil and gas, and Arctic drilling were applied during 2025. Portfolio Financing Investing (asset owner) Investing (asset manager) Further information Coal • We do not provide financing to or facilitate financing for: – companies that derive more than 5% of their revenue directly from thermal coal (covers coal-fired energy production companies and mining companies extracting thermal coal) – companies with expansion plans for thermal coal or new and pre- construction phase thermal coal activities – projects dedicated to thermal coal mining, new thermal coal power plants, or the construction of thermal coal transport infrastructure. • NLP does not invest in companies with large and sustained exposure to coal mining (5% revenue threshold for thermal coal; 30% revenue threshold for coal overall, including metallurgical coal). • Companies in the coal mining and power generation sectors must have a credible transition plan aligned with, at most, a 2°C trajectory in order for NLP to invest. • NAM excludes companies with large and sustained exposure to coal mining (5% revenue threshold for thermal coal; 30% revenue threshold for coal overall, including metallurgical coal), and companies that produce more than 50Mt of thermal coal annually and do not have a coal phase-out commitment. • In addition, NAM excludes: – electric utility companies without a commitment to phase out coal by 2040 (35% revenue threshold for advanced economies, 50% for others) – companies with coal power expansion plans if existing coal power revenues exceed 10% of total revenue or if coal capacity exceeds 5GW – companies with coal expansion plans of above 1GW. • The threshold for metallurgical coal is higher as there are currently no widely available alternatives. We have still chosen to apply a threshold, and expect to adjust it downwards as applicable coal-free technologies emerge, for example in the area of steel production. • A coal phase-out commitment is a public commitment to end the production of thermal coal or coal-fired electricity generation by 2040 at the latest. • We require existing financing customers using thermal coal in power production or mining to plan to exit such activities by 2030 at the latest for industrialised countries and by 2040 globally. • We also do not finance new or existing customers actively engaged in mountaintop removal mining or asbestos mining. Peat • We do not provide financing to or facilitate financing for: – companies with expansion plans for thermal peat or new and pre- construction phase thermal peat activities – projects dedicated to thermal peat mining or new thermal peat power or heating plants – new customers that derive more than 5% of their revenue directly from thermal peat (covers peat-fired energy production companies and mining companies extracting thermal peat). • We have required existing financing customers using thermal peat in power or heat production or mining thermal peat to be committed to exiting such activities by 2025 at the latest. An exception has been granted to companies impacted by energy security measures taken in Finland. Oil and gas exploration and production • We do not provide or facilitate financing for projects dedicated to expanding the exploration and production of oil and gas. • Companies in the conventional oil and gas sector must have a credible transition plan aligned with, at most, a 2°C trajectory in order for NLP to invest. Unconventional oil and gas • We do not provide or facilitate financing for projects dedicated to expanding the exploration and production of unconventional oil and gas. • NLP does not invest in companies involved in the extraction of unconventional oil and gas. • For Article 6 products managed by NAM, companies with substantial and sustained exposure to oil sands (5% revenue threshold) are excluded. • For Article 9 funds and Article 8 funds managed by NAM (with a small number of Article 8 exceptions), companies involved in unconventional fossil fuel extraction methods are excluded. These methods include oil sands extraction and hydraulic fracturing (shale oil/gas). Arctic drilling • We do not provide or facilitate financing for projects dedicated to expanding the exploration and production of oil and gas through Arctic drilling. • Companies involved in exploration, development and/or extraction in the Barents Sea are required to operate under a license awarded by the Norwegian Ministry of Energy and to have permission from the Norwegian Environment Agency and the Norwegian Ocean Industry Authority to carry out such activities. • NLP does not invest in companies involved in oil and gas extraction through Arctic drilling. • NAM excludes companies involved in oil and gas extraction through Arctic drilling. ===== SIDA 123 ===== Nordea Annual Report 2025 122 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Actions and resources in relation to climate change Our policies are implemented through actions to mitigate climate-related risks and negative impacts and boost posi- tive impacts and opportunities. These actions require sig- nificant effort and coordination. We engage with our cus- tomers and investee companies, peers, civil society and the public sector on climate action and, through our financing and investments, contribute to the transition of the real economy towards a low-carbon and climate-resil- ient future. We also continue to play an active role in the international climate finance ecosystem, helping to further develop the ambition and standardisation of carbon accounting, target setting and net zero alignment across the financial industry. Over the past few years, we have supported and made voluntary commitments to the Net-Zero Banking Alliance (NZBA), the Net-Zero Asset Owner Alliance (NZAOA) and the Net Zero Asset Managers (NZAM) initiative. In 2025 these alliances reviewed their operations due to increasing political risks and the evolving regulatory environment. The NZBA subsequently disbanded and the NZAM initia- tive restructured its operations. Despite these changes, we continue to refer to the guidance provided by these initia- tives for our target setting and continue to collaborate with our peers to support progress towards our climate targets and net zero commitment. We have an active role in the Partnership for Carbon Accounting Financials (PCAF) as a member of the Board of Directors and a member of the Global Core Team. Through our involvement, we seek to actively contribute to the development of new methodologies and standards for GHG emissions accounting in the financial industry. Following the recommendations stemming from the Glasgow Financial Alliance for Net Zero, we encourage our customers and investee companies to adopt net zero tran- sition strategies and advise them on their efforts. We rec- ognise that it is also in our interest for customers and investees to make a gradual and predictable transition, which we can help to support. We develop products and solutions that both support our transition and enable us to increase positive impact (financing sustainable activities) and decrease negative impact (financing the transition away from high-emitting activities). Through close dialogue, we encourage our cus- tomers to further develop and strengthen their transition plans, while providing them with financing to enable their transitions. We have developed, and offer, ESG-focused products and services such as sustainability-linked and green financing. Furthermore, we recognise that customer-facing employees and employees in procurement play an impor- tant role in implementing climate actions. We provide reg- ular internal training on topics such as net zero transition plans, sustainable finance, ESG data and the EU Taxonomy, which helps build internal skills and a culture focused on supporting customers’ transitions. Integrating climate assessments into our credit and investment processes is crucial to understanding and managing risks in our portfolios. This includes continu- ously updating our sector guidelines, industry credit poli- cies and responsible investment policies. Our policy development and stakeholder engagement have informed different actions with respect to lending, investments and own operations. Lending portfolio We monitor the development of our financed emissions and customer-level transition plans to ensure progress towards our lending portfolio targets for 2030 and our objective to be net zero by 2050. We have performed port- folio emissions and climate risk analysis in several areas to understand the portfolio footprint, which has led to actions to derisk the balance sheet and steer it in the right direction. Between 2019 and 2025, the reduction in financed emissions in our lending portfolio was driven mainly by lower lending volumes in the Shipping and Oil & Gas portfolios, an exit from the offshore segment, and emissions reductions achieved by our customers. We have identified sectors vulnerable to climate-related risks, analysed these sectors, and established guidelines and set sector targets for most of them. Our actions to achieve our sector targets are further described in “Sector analysis and targets for lending portfolio” on pages 131– 135. In addition to the sectors covered on these pages, commercial real estate and aquaculture and fishing have been identified as climate-vulnerable sectors. Commercial real estate In recent years we have performed a thorough analysis of climate-related risks and opportunities in the commercial real estate sector (excluding construction). While commer- cial real estate represents a relatively low-emitting portfo- lio for us, accounting for approximately 2% of our lending portfolio financed emissions in 2025, customer emissions profiles range widely across countries and asset types. Customer emissions profiles mainly depend on local energy sources. Norway relies mostly on hydro power, Sweden on hydro power and nuclear power, and Denmark and Finland on a mix of fossil and non-fossil sources. Where the energy sources are predominantly fossil free, energy efficiency is a more relevant metric than GHG emissions. We monitor financed emissions development against relevant external benchmarks to strengthen our portfolio risk management, and expect large commercial real estate companies to develop climate transition plans. In this way, we seek to help transition the lending book towards more energy-efficient and low-emitting assets. In addition, we support customers’ green transitions by financing already energy-efficient buildings and building energy renovations and onsite renewable power generation that lower the energy consumption and emissions of buildings. Aquaculture and fishing Both the fishing and aquaculture sectors are important for the Norwegian economy. Our fishing customer base con- sists mainly of ocean-going fishing vessels that capture wild fish resources. The majority of these customers do not disclose their emissions or set targets for emissions reduc- tions. Emissions reduction efforts within vessels rely on transitioning to alternative fuels, integrating new technol- ogies, retrofitting existing vessels and adopting the latest sustainable practices for new builds. Our aquaculture cus- tomer base consists predominantly of large Norwegian companies with businesses diversified through vertically integrated operations across the fish farming value chain. These companies have set ambitious interim emissions reduction targets. In 2025 we collected GHG emissions data from the larg- est customers in the fishing and aquaculture sectors and, where possible, assessed the climate transition plans of these customers using our proprietary Climate Transition Plan Maturity Ladder. Investment portfolio We work strategically to align our investment strategies with the goals of the Paris Agreement. Nordea Asset Management (NAM) co-developed the Net Zero Investment Framework along with other members of the Institutional Investors Group on Climate Change (IIGCC) and was among the first cohort of signatories to the Net Zero Asset Managers (NZAM) initiative. In practice, we pursue our climate ambitions through three complementary mechanisms: • active ownership, where we encourage investee compa- nies to accelerate decarbonisation through strategic engagement and voting • solution-focused investing, where we invest in climate solution providers and companies with credible transi- tion plans, applicable to almost three-quarters of fund assets under management (AuM) • portfolio reallocation, where we restrict investments in sectors with limited prospects in a decarbonised econ- omy, and integrate the identification of relatively high emitters into our overall investment process. By the end of 2025, NAM had achieved its target to double the share of AuM managed in line with net zero (“net-zero committed AuM”), increasing it to 38.8% in 2025 from 17.5% in 2021. NAM also met its 2025 target to ensure 80% of the top 200 carbon footprint contributors in its invest- ment portfolio were either assessed as Paris aligned or were subject to active engagement to encourage align- ment. The final 2025 figure was 93%. NAM also endorses the Oil and Gas Methane Partnership (OGMP) 2.0 framework and collaborates with selected partners and clients to encourage companies to measure, disclose and mitigate their methane emissions. In 2025, NAM engaged with approximately 60 companies on methane reduction. Expand Energy joined OGMP 2.0 in ===== SIDA 124 ===== Nordea Annual Report 2025 123 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. 2025 and is one of 15 companies who have joined due to NAM engagement. Going forward, NAM will continue engaging with inves- tee companies to encourage Paris Agreement alignment. NAM’s 2030 engagement target is to ensure that 100% of transition-critical investee companies are either Paris aligned or are subject to active stewardship to improve alignment. Nordea Life & Pension is one of the co-founding mem- bers of the UN-convened Net-Zero Asset Owner Alliance (NZAOA). NLP has divested from oil and gas exploration and production companies that fail to present a credible transition plan or are involved in unconventional oil and gas production. NLP has also implemented tight restric- tions for investments related to the mining of thermal and metallurgical coal. External asset managers selected by NLP must demonstrate their ability to integrate risks and opportunities stemming from climate-related transition and physical risks into their investment analysis and deci- sion-making processes. In 2025 NLP launched its second set of climate targets, for 2029. As a next step towards reducing the emissions intensity of its listed equity, corporate bond and directly held real estate portfolios, NLP has increased the ambition level to a reduction of 40–50% compared with 2019. By the end of 2025, a 40% reduction had been achieved. In line with its new engagement target for the period 2025– 29, NLP engaged with the 30 most material emitters in its portfolios on the topic of net zero alignment during 2025. In the long run, this engagement is intended to result in emissions reductions in the real economy, thereby also supporting NLP’s portfolio emissions target. NLP has also set a goal to increase the share of investments that sup- port nature and the climate transition by 20% between the end of 2023 and the end of 2029. By the end of 2025, NLP had increased the share by 26% across its portfolios in the Nordic countries. While this outcome is positive, some of the underlying drivers are volatile and are expected to change over time. Own operations We aim to reduce the carbon emissions from our internal operations by more than 50% by 2030 compared with 2019. The target scope and methodology are described on page 129 and our GHG accounting methology is described on page 148. Our work is based on the precautionary prin- ciple and covers the countries in which we have our main operations: Denmark, Finland, Norway, Sweden, Poland and Estonia. Some of our key mitigation actions are out- lined below. Reduce GHG emissions from air travel We have continued to manage air travel emissions via tar- get setting, monthly reporting and dashboards shared with leaders (including senior management) and via inter- nal campaigns to promote our travel policy. The policy includes travelling primarily to customer-related events, virtual meeting options, and the expectation to use the train when possible. Air travel patterns remained lower in 2025. An 80% reduction in air travel over the past six years has contributed to us meeting our 2025 target to reduce emissions by 40% compared with 2019. Improve energy efficiency at head offices We have changed 51% of the light fixtures in the Nordic head office areas to LED fixtures and have started imple- menting an Energy Management System (EnMS). In 2026 we will continue to change LED fixtures and roll out the EnMS. We will also begin replacing our ventilation sys- tems and optimising our building management systems. Accelerate paperless banking We have continued to systematically replace physical let- ters with communications via digital channels to increase customer satisfaction, support our sustainability targets and improve cost efficiency. We consistently assess the need for physical letter send-outs using thorough evalua- tion processes. Reduce emissions from company car fleet During 2025 we continued to act on our commitment to sustainable mobility and a complete shift away from fossil fuel vehicles by taking further steps to transition our com- pany car fleet to fully electric vehicles. By the end of the year, gasoline and diesel vehicles had been fully phased out of our company car portfolio. From this point on, our fleet will consist exclusively of hybrid and electric vehicles. Since January 2025, our policy has been for all newly ordered company cars to be battery electric vehicles (BEVs), marking a clear move towards zero-emission mobility. Align supply chain with our transition targets To achieve our supply chain target, in 2025 we imple- mented a tool to help us source company climate data. The tool enables us to assess suppliers’ climate transition com- mitments and plans, and track engagements. We have now met our target to ensure that suppliers covering 80% of our related spending are either aligned with the Paris Agreement or are subject to active engagement to become aligned: 53% of our spending is on suppliers that are aligned and 28% is on suppliers subject to active engage- ment. Since we have met our 2025 target, we have set a new target: to ensure that, by 2030, all transition-critical suppliers are aligned with the Paris agreement or are sub- ject to active engagement to improve alignment. Reduce waste generation from operations All employee restaurants and cafes at head offices man- aged by ISS have obtained the Nordic Swan Ecolabel. Among other things, the certification requires a structured approach to waste sorting, the reduction of food waste, and the elimination of disposable item use. Cap water withdrawal in the head offices The Nordic Swan Ecolabel requirements include efforts to reduce water withdrawal in kitchens. Actions taken towards obtaining the certification of our ISS-operated employee restaurants and cafes at the head offices further support our capping of water withdrawal. Technology reduction activities After launching our “Wireless First” initiative in Sweden and Denmark in 2024, we expanded the roll-out to Finland, Norway and Poland in 2025. This transition has enabled us to decommission redundant network hard- ware, contributing to reduced energy consumption and emissions. It also opens up further opportunities to streamline infrastructure by eliminating additional switches and routers. As part of our cloud engineering work, we are migrating VMware to Google Cloud, which supports our green IT strategy by reducing our on-premises footprint, consoli- dating workloads and leveraging Google’s energy-efficient infrastructure. The above-mentioned key mitigation actions are linked to our decarbonisation levers related to own operations. The decarbonisation levers are detailed and quantified in the following section. ===== SIDA 125 ===== Nordea Annual Report 2025 124 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Targets related to climate change mitigation and adaptation Our business objective is to achieve net-zero emissions (scopes 1, 2 and 3) across our value chain by the end of 2050 at the latest. To support this long-term commitment and align our business with the goals of the Paris Agreement, we have set an interim objective to reduce emissions across our lending and investment portfolios by 40–50% by the end of 2030 compared with 2019. Instead of setting a combined scope 1, scope 2 and scope 3 gross target, we have implemented separate, measurable and time-bound outcome-oriented targets for our own operations, our supply chain and relevant lending and investment portfolios. Currently, the targets cover scope 1 and 2 GHG emissions and scope 3 GHG emissions in the following categories: 1 (purchased goods and ser- vices), 2 (capital goods), 3 (fuel- and energy-related activi- ties), 5 (waste generated in operations), 6 (business travel), and 15 (investments – i.e. financed emissions in our lending and investment portfolios). Counterparty scope 3 financed emissions, while monitored (see the “Business loan financed emissions” table on page 140 and the financed emissions tables for NAM and NLP on pages 144 and 145, respectively), are excluded from our target scopes. The targets for the lending and investment portfolios are aligned with our Group strategy, with the lending port- folio target also supported by additional sector-specific targets. In addition, each business area has set individual cli- mate-related targets and actions for 2024–29 and 2030, which will be continually monitored and reported on (see pages 125–130). We have identified key mitigation actions and analysed the decarbonisation levers that have contributed to our emissions reductions between the base year and 2025. We expect these decarbonisation levers to continue to support the emissions reductions needed for the achievement of our targets. The graphs presented alongside the relevant targets indicate the past and expected future contribu- tions of different decarbonisation levers. On the way to net zero 2024–25 targets Status Nordea Bank: Ensure that 90% of our exposure to large corporate customers in climate-vulnerable sectors is covered by transition plans by the end of 2025 Target met Nordea Asset Management: Ensure that 80% of the top 200 emissions contributors in Nordea Asset Management’s portfolios are either aligned with the Paris Agreement or are subject to active engagement to become aligned by the end of 2025 Target met Nordea Asset Management: Double the share of net-zero-committed assets under management by the end of 2025 compared with 2021 Target met Operations and supply chain: Reduce the carbon emissions from our internal operations by 40% by the end of 2025 compared with 2019 Target met Operations and supply chain: Ensure that suppliers covering 80% of our related spending are either aligned with the Paris Agreement or are subject to active engagement to become aligned by the end of 2025 Target met 2029–30 targets Status Nordea Bank: Reduce financed emissions in the lending portfolio by 40–50% by the end of 2030 compared with 2019 44% reduction Nordea Asset Management: Reduce the weighted average carbon intensity (WACI) of listed equities and corporate bonds by 50% by the end of 2030 compared with 2019 52% reduction Nordea Life & Pension: Engage annually with the 30 most material emitters on net zero alignment during the period 2025–29 Met for 2025 Nordea Life & Pension: Increase the share of assets under management supporting nature and the climate transition by 20% by the end of 2029 compared with 2023 26% increase Nordea Life & Pension: Reduce the carbon footprint (intensity) of listed equity, corporate bond and directly held real estate portfolios by 40–50% by the end of 2029 compared with 2019 40% reduction Operations and supply chain: Reduce the carbon emissions from our internal operations by more than 50% by the end of 2030 compared with 2019 and achieve a net positive carbon contribution (through offsetting) 52% reduction New 2030 targets Status Nordea Bank: Engage annually with corporate customers (collectively representing at least 70% of financed emissions in the large corporate lending portfolio) on the topic of net zero transition during the period 2026–30 New target Nordea Asset Management: By 2030, ensure that 100% of transition-critical investee companies are either aligned with the Paris Agreement or are subject to active stewardship to improve alignment New target Operations and supply chain: By 2030, ensure that all identified transition-critical suppliers are either aligned with the Paris Agreement or are subject to active engagement to improve alignment New target ===== SIDA 126 ===== Nordea Annual Report 2025 125 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Nordea Bank targets for scope 3 category 15 GHG emissions (lending and investment portfolios) 2025 Nordea Bank target (relative) Ensure that 90% of our exposure to large corporate customers in climate-vulnerable sectors is covered by transition plans by the end of 2025 Target scope The sectors covered by the target were those originally defined in 2020 as potentially vulnerable to climate-re- lated transition and/or physical risks. Details on these vul- nerable sectors are disclosed in the table “Business loan financed emissions” on page 140. The target was set to support the mitigation of climate-related risks. Methodologies In the context of this target, a transition plan was defined as a quantifiable and time-bound target to reduce GHG emissions set by an obligor or parent company. We gath- ered relevant climate commitments from publicly available sustainability and annual reports, and supplemented these with information gathered directly from customers. Performance against target 91% of our exposure to large corporate customers in cli- mate-vulnerable sectors was covered by transition plans at the end of 2025. This percentage is based on 2025 year- end exposures and transition plans reported during 2025. 2030 Nordea Bank target (absolute) Reduce financed emissions in the lending portfolio by 40–50% by the end of 2030 compared with 2019 Target scope The target covers financed emissions across the asset classes business loans, residential real estate, commercial real estate, motor vehicles and shipping in the lending port- folio. It was informed by the imperative to halve global absolute emissions within the target time horizon in accord- ance with the Intergovernmental Panel on Climate Change’s no- and low-overshoot 1.5°C pathways (IPCC SR15). The target relates to the policy objectives set in our Sustainability Policy and was set to support the mitigation of climate-related risks, limit negative impacts, increase positive impacts and support opportunities. Methodologies The target is measured based on tCO2e and was deter- mined to keep absolute emissions from our lending port- folio below or on a par with two global benchmark scenar- ios for absolute emissions reductions required across the economy. These are the IPCC SR15 and the United Nations Environment Programme (UNEP) Emissions Gap Report 2019. The selected IPCC pathways outline absolute CO2 emissions reductions of 40–50% by 2030 relative to 2010 levels; we held emissions in 2019 to be at a level similar to or slightly higher than in 2010. In setting the target, we drew on the Guidelines for Climate Target Setting for Banks developed by the Net-Zero Banking Alliance, pub- lished in collaboration with the UNEP Finance Initiative and informed by non-governmental organisations (NGOs) involved in the Science Based Targets initiative (SBTi). The target is connected to the lending portfolio decarbonisa- tion levers, which are detailed in the chart below. Performance against target Financed emissions in the lending portfolio had decreased by 44% by the end of 2025 compared with the baseline (19.3 MtCO2e at the end of 2019). Details can be found in the table “Breakdown of financed emissions in the lending portfolio” on page 139. Decarbonisation levers Our lending portfolio emissions reductions fall into three categories: exposure changes, counterparty reductions and other drivers. The first two are considered to be actual decarbonisation levers. Exposure changes reflect how shifts in the portfolio composition affect financed emis- sions, while counterparty reductions capture emissions reductions achieved by companies we finance. Other driv- ers relate to data quality and technical factors that cannot directly be linked to mitigation actions. Following data quality improvements across asset classes, the lending portfolio baseline was recalculated to 19.3 MtCO2e in 2025 (23.1 MtCO2e in 2024). The change compared with the levers reported in 2024 was mainly driven by the baseline recalculation. Our decarbonisation lever methodology has been updated to enable year-on-year comparisons between reports. The relative contributions of the levers for the 2019–24 period are assumed to be constant, with the 2024–25 impact distributed accordingly. Financed emissions reductions since 2019 have mainly been driven by exposure changes resulting from our exclu- sion policies and portfolio composition changes over time. Counterparty reductions correspond to emissions reduc- tions by customers in our lending portfolio. In the period 2019–24 the majority of these reductions were driven by a few customers in the power production sector. We aim to contribute to counterparty reductions, for example by engaging with customers, ensuring transition plans are in place and supporting customers in mapping emission-in- tensive production within their supply chain. Between today and 2030, we estimate that the majority of our lending portfolio emissions reductions will be attrib- utable to counterparty reductions, which decrease the emission intensity of our lending portfolio. The estimated impact of this lever is based on the assumption that our lending portfolio emissions reductions reflect the national and sector policy emissions reduction target trajectories applied in the estimations. Exposure changes driven by lending portfolio growth and portfolio balancing actions are also estimated to impact our lending portfolio emis- sions in the run-up to 2030. The higher relative contribu- tion of exposure changes reflects anticipated growth over the target horizon. The presence of inflation will naturally inflate the balance sheets of companies while their actual emissions may remain constant, decreasing the emission intensity. The impact of inflation is estimated and isolated in “other drivers”. The chart below shows the contribution of each lever to a 50% reduction in our lending portfolio emissions (the upper end of our target range). Lending portfolio decarbonisation levers Target Reduce absolute financed emissions in the lending portfolio by 40–50% between 2019 and 2030 0 5 10 15 20 25 19.3 -6.2 MtCO 2 e -3.1 +0.9 +2.6 -3.3 -0.510.9 9.7 Base year Exposure changes Counterparty reductions Other drivers Current year Exposure changes Other driversCounterparty reductions Target year Baseline/target Reduction Increase ===== SIDA 127 ===== Nordea Annual Report 2025 126 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Nordea Asset Management (NAM) targets for scope 3 category 15 GHG emissions (investment portfolio) 2025 NAM target (relative) Ensure that 80% of the top 200 emissions contribu- tors in Nordea Asset Management’s portfolios are either aligned with the Paris Agreement or are sub- ject to active engagement to become aligned by the end of 2025 Target scope The target covered NAM’s portfolios and was linked to the policy objectives set in NAM’s Responsible Investment Policy. It was set to support opportunities related to investing in activities linked to climate change mitigation and to reduce negative impacts from GHG emissions gen- erated by investees’ activities. Methodologies The target was informed by the Net Zero Investment Framework (NZIF, first and second editions) of the Institutional Investors Group on Climate Change, which recommends setting Paris alignment and engagement tar- gets across listed equity and corporate bond holdings. We assessed individual issuers using the NZIF maturity scale. The NZIF introduces six criteria, which can be com- bined to sort companies into four categories: aligned, aligning, committed to aligning, and not aligning. The six criteria are as follows: a net zero ambition, Paris-aligned reduction targets, good current performance, comprehen- sive GHG disclosures, a decarbonisation strategy, and Paris-aligned capital expenditure. The target required companies to be assessed as Paris aligned, which means meeting all six criteria, or else to be subject to engage- ment to improve alignment. Performance against target At the end of 2025 93% of the top 200 companies were either aligned or subject to active engagement to become aligned. 2030 NAM target (relative) Reduce the weighted average carbon intensity (WACI) of listed equities and corporate bonds by 50% by the end of 2030 compared with 2019 Target scope The target covers listed equities and corporate bonds in NAM’s portfolios and is linked to the policy objectives set in NAM’s Responsible Investment Policy. It was set to sup- port the mitigation of climate-related risks and limit nega- tive impacts from GHG emissions generated by investees’ activities. Methodologies The target is informed by the global imperative to halve global absolute emissions within the target time horizon in accordance with the IPCC’s no- and low-overshoot 1.5°C pathways (IPCC AR6). The baseline is the 137 tCO2e/EURm revenue as at the end of 2019. The intensity target does not directly translate into an absolute reduction value for 2030. Performance against target Between 2019 and 2025, the WACI of NAM’s listed equity and corporate bond portfolios decreased by 52%. While the change was partly driven by divestments from emis- sion-intensive companies and new investments in low- er-intensity alternatives, the main driver was a reduction in the carbon intensity of companies held in NAM’s portfo- lios over the period 2019–25. Here, the biggest driver was an overall increase in company revenues without a corre- sponding increase in emissions, which reduced carbon intensity, defined as scope 1 and 2 GHG emissions per EUR million in revenue. Such a reduction can signal both improved operational efficiency and sensitivity to inflation. From a real world decarbonisation perspective, we are pri- marily interested in the former. Progress on the target is tracked and shared with rele- vant members of senior executive management, including NAM’s CEO. This includes an annual presentation to NAM’s Responsible Investments Committee. The NAM ESG Committee acknowledges performance against targets before external publication. Decarbonisation levers In 2025 NAM reached its 50% reduction target. The 52% decrease in WACI between 2019 and 2025 was primarily driven by three factors: reductions in investee company emission intensities, changes in investment portfolio com- position, and other drivers, such as inflation and data availability. Most of the decrease was attributable to reductions in investee company emissions intensities, par- ticularly in high-emitting sectors such as utilities and industrials. These intensity reductions were attributable in approximately equal part to absolute emissions reductions and non-inflationary increases in investee company reve- nues without an associated increase in emissions. During the period, NAM’s exposure to the energy sector was halved due to fossil fuel-related exclusions. Within other high-emitting sectors, NAM shifted its investments towards companies with relatively lower emissions, par- ticularly within utilities, where it focused more on renewa- ble energy providers. Based on existing policies and assuming a constant portfolio composition, we project that there will be contin- ued reductions in the WACI of NAM’s listed equity and corporate bond portfolios, driven by (i) continued reduc- tions in absolute emissions by counterparties and (ii) sales revenue growth. Investment portfolio (NAM) decarbonisation levers 1 Target Reduce the weighted average carbon intensity (WACI) of listed equities and corporate bonds by 50% between 2019 and the end of 2030 0 20 40 60 80 100 120 140 137 -19 tCO 2 e/EURm in sales revenue -35 -16 <68 66 Base year Exposure changes Counterparty reductions Other drivers Current year Target year Baseline/target Reduction Increase 1) The levers have been subject to rounding. ===== SIDA 128 ===== Nordea Annual Report 2025 127 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. 2025 NAM target (relative) Double the share of net-zero-committed assets under management by the end of 2025 compared with 2021 Target scope The target covered NAM’s portfolios and was linked to the policy objectives set in NAM’s Responsible Investment Policy. It was set to support opportunities related to investing in activities linked to climate change mitigation. Methodologies The target was informed by the global imperative to halve global absolute emissions by 2030 in accordance with the IPCC’s no- and low-overshoot 1.5°C pathways (IPCC AR6). According to the original Commitment Statement of the Net Zero Asset Managers (NZAM) initiative, managing in line with net zero means: 1. setting interim targets for 2030, consistent with a fair share of the 50% global reduction in CO2 identified as a requirement in the IPCC special report on global warm- ing of 1.5°C 2. taking into account portfolio scope 1 and 2 emissions and, to the extent possible, material portfolio scope 3 emissions 3. prioritising the achievement of real economy emissions reductions within sectors and companies in the invest- ment portfolio 4. if using offsets, investing in long-term carbon removal in areas where there are no technologically and/or finan- cially viable alternatives to eliminate emissions 5. as required, creating investment products aligned with net-zero emissions by 2050 and facilitating increased investment in climate solutions. Our methodologies for managing in line with net zero have been created to be commensurate with the above principles, in particular principle 3 (prioritising real econ- omy emissions reductions) and principle 5 (facilitating investment in climate solutions). During 2025 the NZAM initiative temporarily suspended its activities with a view to revising the signatory commit- ment statement. As a result, the five principles referred to above have been superseded by an updated Commitment Statement. Performance against target At the end of 2025 38.8% of AuM were assessed as being managed in line with net zero, compared with 17.5% at the end of 2021. These AuM cover investment strategies with portfolio reduction targets or objectives to invest in cli- mate solutions (including green bonds), and strategies with a core investment objective to invest in transitioning companies, such as our Global Climate Transition Engagement strategy. They also cover investments in indi- vidual companies that are subject to targeted engagement to accelerate Paris alignment and a majority of our cov- ered bond investment strategies. Nordea Life & Pension (NLP) targets for scope 3 category 15 GHG emissions (investment portfolio) 2029 NLP target (relative) Engage annually with the 30 most material emitters on net zero alignment during the period 2025–29 Target scope The target was launched in the first quarter of 2025 and covers the 30 most material emitters in NLP’s portfolios. These emitters typically represent around half of NLP’s total GHG emissions. The target supports the policy objec- tives set in NLP’s Responsible Investment Policy, which is complemented by NLP’s Climate Change Policy and Engagement Policy. It was set to support the decarbonisa- tion of investee companies and help increase the share of NLP companies aligning with a net zero trajectory. Methodologies The target is measured in terms of the number of compa- nies among the 30 most material emitters that NLP has engaged with annually. Engagement under this target may be carried out by NLP or its asset managers, or through coalitions of investors or other organisations in which NLP participates as an active member. Performance against target NLP has achieved the target for 2025. Approximately one third of the 2025 engagements were conducted bilaterally by NLP, while the remaining two thirds were carried out either in cooperation with NAM or as part of an investor coalition, e.g. Climate Action 100+. The companies engaged with were from sectors such as metal production, electric utilities, basic materials, industrial gases and aviation. 2029 NLP target (relative) Increase the share of assets under management supporting nature and the climate transition by 20% by the end of 2029 compared with 2023 Target scope The target, launched in the first quarter of 2025, was set to support the positive impacts associated with financing and supporting the transition of companies and sectors. It is linked to the policy objectives set in NLP’s Responsible Investment Policy, which is complemented by NLP’s Climate Change Policy and Engagement Policy. The following assets are in scope: • listed equities that are aligned or aligning with net zero by 2050 • climate- or nature-themed equity funds (public and private) • labelled bonds with an environmental impact (corpo- rate, sovereign, supranational and agency bonds) – second- party opinion required • directly owned buildings that comply with the technical screening criteria for mitigation and adaptation in the EU Taxonomy’s section on the acquisition and ownership of buildings • thematic investments with environmental characteristics related to, for example, infrastructure or other real assets that are important for the transition. Methodologies The target is based on the IPCC’s finding that the climate transition is not happening fast enough to be in line with the goals of the Paris Agreement. The baseline for the tar- get is the 32% share of assets under management support- ing nature and the climate transition as at the end of 2023. Performance against target NLP is on track to achieve the target. The share of invest- ments supporting nature and the climate transition grew by 26% between 2023 and the end of 2025. The growth was to a significant degree driven by an increase in the share of listed equities assessed as aligned or aligning with a net zero by 2050 trajectory based on the Net Zero Investment Framework methodology. Specifically, the share increased from 49% in 2023 to 58% in 2025. This was enabled by NLP’s selection of external managers and funds and the choices made by these managers regarding fund compositions. In addition, it reflects the net zero efforts made by many companies. Other asset classes also contributed positively to the performance. While this out- come is positive, some of the underlying drivers are vola- tile and are expected to change over time. 2029 NLP target (relative) Reduce the carbon footprint (intensity) of listed equity, corporate bond and directly held real estate portfolios by 40–50% by the end of 2029 compared with 2019 Target scope The target, launched in the first quarter of 2025, is an update of the previous interim target (for 2019–24). It cov- ers listed equities, corporate bonds and directly held real estate in Denmark, Finland, Norway and Sweden. The tar- get is linked to NLP’s Responsible Investment Policy, which is complemented by NLP’s Climate Change Policy and Engagement Policy. It was set to support the mitiga- tion of climate-related risks and limit negative impacts associated with GHG emissions generated by investee companies’ activities. ===== SIDA 129 ===== Nordea Annual Report 2025 128 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Methodologies The same methodology used to calculate the carbon foot- print during the first target period (2019–24) was applied for the new target. The target is measured based on the carbon footprint metric tCO2e (scopes 1 and 2) / USD million invested. It was set in accordance with the fourth edition of the Net-Zero Asset Owner Alliance’s target setting protocol, where recommendations for members are based on the cli- mate modelling published in the IPCC’s latest Assessment Report (AR6), released in April 2022. Based on the IPCC’s no- and low-overshoot 1.5°C pathways (C1 category), a global average absolute emissions reduction in the range of 40–60% would be required by 2030, according to the Alliance. The base year for the target is 2019 and the target year is 2029. The baseline for the target is the 46 tCO2e/USD million invested at the end of 2019. Performance against target 2025 figures for NLP show a carbon footprint decrease of 40% between 2019 and the end of 2025 for listed equities, corporate bonds and directly held real estate. This is due to factors such as divestments from fossil-intensive sectors and investee company emissions reductions, especially in the basic materials and utilities sectors. In addition, factors unrelated to NLP’s climate strategy, such as enterprise value, played a role. Some of these factors are volatile and are expected to change over time. Decarbonisation levers Levers and underlying drivers for the period 2019–25 (year end): Exposure changes Reductions due to exposure changes were mainly driven by NLP’s divestments from certain fossil-intensive sectors (-12%) and allocation of capital to other, less fossil-inten- sive sectors (-4%). These reductions were moderated by increases due to allocations within sectors to companies with higher emission intensities (+5%), particularly within basic materials. Many of the companies causing a large share of this moderating impact fall within the scope of NLP’s 2030 target to engage with the 30 most material emitters in its portfolios on alignment with a net zero by 2050 trajectory. Counterparty reductions Emissions reductions by NLP’s investee companies contrib- uted to the improvement in the carbon footprint (-11%). As previously mentioned, NLP’s divestments from fossil-inten- sive sectors and allocation of capital to less fossil-intensive sectors led to a combined reduction of 16%. The total reduction in the carbon footprint was therefore 27%. These three drivers and the overall reductions achieved reflect both NLP’s climate strategy, for example tight restrictions on fossil fuel extraction as expressed in its Responsible Investment Policy, and broader asset allocations between asset classes and sectors decided by NLP or its fund man- agers. Such allocations may vary over time. Other Within “other”, changes in companies’ enterprise value including cash (EVIC) was the most relevant driver (-12%), followed by changes due to improved data coverage (-6%). Levers and underlying drivers for the period 2025–29 (year end): During the period 2025–29 we estimate that there will be a 6% reduction in NLP’s carbon footprint, equivalent to 2 tCO2/mUSD invested. Adopting a conservative approach, we have factored in the possibility that companies may fall short of their communicated targets. This assumption is based on UNEP’s Emissions Gap Report 2019, which reflects a delayed transition. Due to the methodology applied, all changes are allocated to the lever “counter- party reductions” and the underlying driver “emissions reductions by investee companies”. Operations and supply chain targets for scope 1, 2 and 3 GHG emissions 2025 operations and supply chain target (absolute) Reduce the carbon emissions from internal opera- tions by 40% by the end of 2025 compared with 2019 Target scope As this target was set to support the achievement of the 2030 operations and supply chain target, the scope; related impacts, risks and opportunities; and policy objec- tives are the same as for the 2030 target described below. Methodologies The methodology and assumptions used were the same as for the 2030 target. The target was measured based on tCO2e and was connected to the decarbonisation levers for own operations, which are detailed below. Performance against target Carbon emissions (market-based) from internal opera- tions had been reduced by 52% by the end of 2025 com- pared with 2019. In 2025 we incorporated the entire con- solidated accounting group into our operational carbon footprint baseline calculation. For more information, see page 137. Currently, the reporting covers scope 1, scope 2, and scope 3 categories 1, 2, 3, 4 and 6. More information on the significant scope 3 categories, and the excluded categories, can be found on page 148. Investment portfolio (NLP) decarbonisation levers Target Reduce the carbon footprint (intensity)1 of listed equity, corporate bond and directly held real estate portfolios by 40-50% by the end of 2029 compared with 2019 0 10 20 30 40 50 60 53 -8 tCO 2 e/EURm invested -6 -10 – -2 –29 27 Base year 2 Exposure changes Counterparty reductions Other drivers Current year Exposure changes Other driversCounterparty reductions Target year Baseline/target Reduction Increase 1) NLP uses a fixed exchange rate for EUR/USD. 2) The base year includes Denmark, Finland, Norway and Sweden. ===== SIDA 130 ===== Nordea Annual Report 2025 129 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. 2025 operations and supply chain target (relative) Ensure that suppliers covering 80% of our related spending are either aligned with the Paris Agreement or are subject to active engagement to become aligned by the end of 2025 Target scope The target covered our own operations. Around 300 com- panies were in scope, based on our spending or due to them having operations in sectors exposed to high transi- tion risk. The target was linked to policy objectives set in our Supplier Code of Conduct and was set to manage cli- mate-related risks and limit negative impacts stemming from our own operations. Methodologies The target was informed by the SBTi Portfolio Coverage Approach and the Net Zero Investment Framework of the Institutional Investors Group on Climate Change (IIGCC). The SBTi Portfolio Coverage Approach, according to which a share of companies’ suppliers should have sci- ence-based targets in place by a particular date, is sup- ported by NGOs such as the World Wide Fund for Nature (WWF), the World Resources Institute and CDP. The companies in scope were evaluated based on whether they had a long-term net zero target and short- term emissions reduction targets in place, whether they publicly disclosed their GHG emissions, and whether their targets had been third party validated. In 2025 our manual assessment of company maturity was replaced with a digital tool, enabling scaling and improving data credibility and engagement documentation. Performance against target At the end of 2025 53% of our spending was on companies that were aligned with the Paris Agreement and 28% was on companies subject to engagement to become aligned. 2030 operations and supply chain target (absolute) Reduce the carbon emissions from our internal oper- ations by more than 50% by the end of 2030 com- pared with 2019 and achieve a net positive carbon contribution (through offsetting) Target scope The target covers our own operations and was informed by the global imperative to halve global absolute emis- sions within the target time horizon in accordance with the IPCC’s no- and low-overshoot 1.5°C pathways (IPCC SR15). The target is linked to the policy objectives set in our Sustainability Policy. It was set to manage climate- related risks and limit negative impacts from our own operations. The target scope covers scopes 1 and 2 and partially covers scope 3 categories 1, 2, 3, 5 and 6, based on the scope of our GHG accounting in 2021. We are in the pro- cess of reviewing the target, its scope and our actions for our 2026–30 strategy period. Methodologies The target is measured based on tCO2e. It was set using the Absolute Contraction Approach and was determined to keep absolute emissions from internal operations below or on a par with two global benchmark scenarios for abso- lute emissions reductions required across the economy. These are the IPCC Special Report on 1.5°C no- and low-overshoot pathways and the UNEP Emissions Gap Report 2019. The selected IPCC pathways outline absolute CO2 emissions reductions of 40–59% by 2030 relative to 2010 levels; we held emissions in 2019 to be at a level simi- lar to or slightly higher than in 2010. The target is also informed by the SBTi criteria for halving GHG emissions between 2018 and 2030 for 1.5°C alignment. This target is connected to the decarbonisation levers for own opera- tions, which are detailed to the right. Performance against target Carbon emissions (market-based) from internal opera- tions had been reduced by 52% by the end of 2025 com- pared with 2019. Progress on the target is tracked and shared with relevant Group functions. In 2025, we incorpo- rated the entire consolidated accounting group into our operational carbon footprint baseline calculation. For more information, see page 137. Decarbonisation levers The achieved reduction for the period 2019–25 surpassed the target level, reaching 52% in 2025. The most significant decarbonisation levers for this period were a reduction in air travel (contributing to 56% of the reduction) and energy consumption in buildings (contributing to 20% of the reduction). The most significant decarbonisation levers for the 2030 target have been identified to be the following. 1. Business travel: a reduction in scope 3 business travel emissions, mainly through reduced air travel (emissions are assumed to remain stable between 2025 and 2030). 2. Company cars: a transition to zero-emission vehicles in the company car fleet (estimated to reduce scope 1 emissions connected to mobile combustion by 80% between 2019 and 2030). 3. Electricity, cooling and heating: • Utilities decarbonisation according to nationally deter- mined contributions (NDCs). The decarbonisation of the utilities sector in the Nordic countries according to NDCs is expected to drive a further reduction in scope 2 and 3 emission intensity-related electricity, cooling and heating. • Energy efficiency measures in line with the EU Energy Efficiency Directive taken between 2023 and 2030. Own operations decarbonisation levers 1 Target Reduce the carbon emissions from our internal operations by 40% by end of 2025 and by more than 50% by the end of 2030, and achieve a net positive carbon contribution (through offsetting) by 2030 at the latest 0 10,000 20,000 30,000 40,000 50,000 60,000 61,460 -17,785 tCO 2 e -2,367 -384 -4,984 <30,730 – -6,320 29,630 Base year Air travel Electric company cars only policy Paperless banking Energy consumption in buildings Other sustainability initiatives Current year Target year Baseline/target Reduction Increase 1) The levers have been subject to rounding. ===== SIDA 131 ===== Nordea Annual Report 2025 130 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Our new climate targets for 2030 Below, are our three new climate targets for 2030. The new targets are all aimed at driving emissions reductions through active engagement with key stakeholders. They will support us in progressing towards our commitment to be net zero by 2050 and will guide us in helping customers progress with their sustainability transitions. Nordea bank target for scope 3 category 15 GHG emissions (lending and investment portfolios) 2030 Nordea bank target (relative) NEW Engage annually with corporate customers (collec- tively representing at least 70% of financed emis- sions in the large corporate lending portfolio) on the topic of net zero transition during the period 2026–30 Target scope The target covers the LC&I corporate lending portfolio. The aim is to engage customers representing at least 70% of the portfolio financed emissions as at the end of the previous year. As the customers in scope are reassessed on an annual basis, the targeted number of engagements per year is expected to fluctuate. Methodologies The target level was set to cover the majority of financed emissions in the large corporate lending portfolio. While UNEP FI’s Guidelines for Climate Target Setting for Banks do not specify a target level for engagements, the chosen level is aligned with the Net-Zero Asset Owner Alliance’s Target-Setting Protocol, which recommends engaging with companies representing at least 65% of the financed emissions in the portfolio. To identify customers in scope, we will use our internal emissions estimation tool to obtain financed emissions data on our large corporate lending portfolio as at the end of the year. Once this data has been compiled, we will extract the list of top emissions contributors. Nordea Asset Management (NAM) target for scope 3 category 15 GHG emissions (investment portfolio) 2030 NAM target (relative) NEW By 2030, ensure that 100% of transition-critical inves- tee companies are either aligned with the Paris Agreement or are subject to active stewardship to improve alignment Target scope The target covers NAM’s portfolios and is linked to the policy objectives set in NAM’s Responsible Investment Policy. It was set to support opportunities related to investing in activities linked to climate change mitigation and to reduce negative impacts from GHG emissions gen- erated by investees’ activities. Methodologies We define transition-critical as our investments in listed equity and corporate bond holdings at a value exceeding EUR 25m in key transition sectors, including basic materi- als (cement, chemicals, mining, iron/steel, and paper); util- ities (electricity, gas, and waste management); transporta- tion (aviation, automobiles and shipping); energy (oil and gas); and technology (big tech, specifically AI and data centres). Additional companies may be included if deemed transition critical as a result of individual analysis. Our stewardship approach encompasses unilateral and collaborative engagement, as well as strategic voting at shareholder meetings to accelerate alignment where pro- gress is stalling. The target is informed by the IIGCC’s NZIF (first and second editions), which recommends setting Paris align- ment and engagement targets across listed equity and corporate bond holdings. We assess individual issuers using the NZIF maturity scale. The NZIF introduces six criteria, which can be com- bined to sort companies into four categories: • aligned • aligning • committed to aligning • not aligning. The six criteria are as follows: • a net zero ambition • Paris-aligned reduction targets • good current performance • comprehensive GHG disclosures • a decarbonisation strategy • Paris-aligned capital expenditure. As an example of the comprehensiveness of this approach, having a science-based target fulfils one of the six criteria, but is not on its own sufficient for the issuer to be catego- rised as “aligning”. For this, we also need to see adequate GHG disclosures and a supporting decarbonisation strat- egy. The target requires companies to be assessed as Paris aligned, which means meeting each of the six criteria, or else to be subject to active stewardship to improve alignment. Operations and supply chain target for scope 1, 2 and 3 GHG emissions 2030 operations and supply chain target (relative) NEW By 2030, ensure that all identified transition-critical suppliers are aligned with the Paris Agreement or are subject to active engagement to improve alignment Target scope The target covers our own operations. Methodologies The target is informed by the SBTi Portfolio Coverage Approach, where a share of companies’ suppliers should have science-based targets in place by a particular date, and the IIGCC’s NZIF. A sector, or a supplier within a sector, is defined as transi- tion critical if one or more of the following conditions are met. • The sector is exposed to high climate transition risk. • The sector has a high emission intensity. • The sector represents a substantial amount of our embodied emissions. • The sector is subject to regulatory pressure to reduce emissions (this means that the sectors in scope might change to cater for regulatory changes). • Engagement is feasible and relevant for us. ===== SIDA 132 ===== Nordea Annual Report 2025 131 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Sector analysis and targets for lending portfolio Our annual business environment scanning (BES) includes a sector-specific analysis of climate-vulnerable sectors aligned with our materiality assessment of climate and environmental risks. The analysis covers the most relevant climate policies and regulations as well as sector decar- bonisation roadmaps in the Nordic region. Sectors are individually assessed for risks and opportunities related to climate and environmental drivers. The results are used throughout the organisation to inform strategic decisions on climate and environmental goals and policies, and help us adapt to the drivers that affect climate and environ- mental risks and opportunities. As one of our transition planning tools, we set sector-specific targets to mitigate climate-related risks, limit negative impacts, increase positive impacts and support opportunities. The sectors in scope for target setting are selected based on their contri- bution to the total financed emissions profile of our lend- ing portfolio, their climate vulnerability or inclusion on the list of prioritised carbon-intensive sectors defined in UNEP FI’s Guidelines for Climate Target Setting for Banks, and the availability of sector-specific science- or policy-based transition pathways. The assessment of sectors in scope for target setting is performed on an annual basis. The sector targets are approved by the President and Group CEO. Relevant sector guidelines provide guidance on how to achieve the targets. Since 2021, we have had eight sector targets and transi- tion pathways consistent with Paris-aligned benchmarks. In 2025 the sector targets combined covered 54% of our exposures and 47% of our financed emissions in the lending portfolio. We cannot disclose the exact share of the reduction of financed emissions since 2019 as we set the sector targets using different base years. This practice follows UNEP FI’s guidelines to set the baseline no more than two full reporting years prior to the setting of the target and to choose the earliest point in time for which the sector has sufficiently reliable data. Sector targets do not include GHG emissions removals, carbon credits or avoided emissions as means of achieving emissions reduction targets. Our scope 1 and 2 financed emissions from iron and steel, aluminium, cement, and commercial real estate are covered by our lending portfolio target. In 2025 iron and steel, aluminium and cement together accounted for just 1% of our lending portfolio financed emissions and com- mercial real estate accounted for 2%. Each quarter, senior management receives an internal ESG report detailing our performance and progress on the portfolio-wide and sector-specific targets at the Group level and at the business area levels where applicable. The report informs subsequent actions and provides a basis for future target setting. The following table provides basic informa- tion on our sector targets and our progress towards them. Sector targets Sector Sub-sector Emissions scope Metric Benchmark scenarios Base year Baseline1 Target year Target 2025 actuals2 2025 vs baseline (%) Residential Real Estate Households and tenant-owner associations 1 and 2 Emissions intensity kgCO2e/m2 CRREM v1.093 2019 12.2 2030 -40–50% 8.1 -33.7 Shipping Vessels 1 Emissions intensity AER, gCO2/dwt-nm Poseidon Principles (IMO 2050) 2019 8.3 2030 -30% 7.0 -15.4 Agriculture Animal husbandry; Crops, plantation and hunting 1 and 2 Emissions intensity tCO2e/EURm4 National sector targets and SBTi FLAG 2021 363 2030 -40–50% 368 1.4 Motor Vehicles Cars and vans 13 Emissions intensity gCO2e/km IEA NZE5 2022 114 2030 -40% 94 -17.5 Power Production – 1 and 2 Emissions intensity gCO2e/kWh IEA NZE5 SBTi 1.5C 2021 220 2030 -70% 20 -90.9 Oil & Gas Exploration and production 1, 2 and 3 Absolute emissions MtCO2e4 IEA NZE5 2019 2.8 2030 -55% 0.01 -99.6 Offshore Drilling rigs and Offshore service vessels within Oil & Gas and Shipping – Lending EURm – 2019 1,872 2025 -100% 0 -100.0 Mining Thermal peat – Lending EURm IEA NZE5 2022 52 2025 -100% 18 -65.3 Thermal coal – Lending EURm IEA NZE5 Restrictive policy Full phase-out achieved in 2021 1) Due to data quality improvements, the following baseline figures were recalculated from what was reported in 2024: Residential Real Estate (17.4 kgCO2e/m2); Agriculture (758 tCO2e/EURm); Motor Vehicles (113gCO2e/km). 2) Shipping and Power Production are 2024 actuals. 3) Scope 1 covers tank-to-wheel emissions. 4) Including methane emissions in CO2 equivalents for scope 1 for Agriculture, and scopes 1 and 2 for Oil & Gas. 5) A normative International Energy Agency (IEA) scenario that shows a pathway for the global energy sector to achieve net-zero CO2 emissions by 2050 and is consistent with limiting the global temperature rise to 1.5°C without a temperature overshoot (with a 50% probability), in line with the IPCC special report on global warming of 1.5°C. ===== SIDA 133 ===== Nordea Annual Report 2025 132 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Residential Real Estate By 2030, we aim to reduce the physical carbon intensity (CO2e/m2) of our residential real estate loan portfolio by 40–50% compared with 2019 levels. The Residential Real Estate portfolio is benchmarked against relevant country and building type decar- bonisation pathways provided by the Carbon Risk Real Estate Monitor (CRREM). Due to significant data quality updates, a baseline recalculation update was done in 2025. More information can be found on page 137. The sector includes single-family homes and ter- raced housing, apartments, and tenant-owner asso- ciations. The overall housing market is projected to continue growing in terms of both the number of homes and the average home size in square metres. Total energy demand, however, is being somewhat offset by the replacement of older buildings with new and more energy-efficient buildings. Residential Real Estate 0 3 6 9 12 15 18 '30'29'28'27'26'25'24'23'22'21'20'19 Emission intensity (kgCO 2 e/m 2 ) Actuals Target CRREM 12.2 10.7 10.0 10.2 6.1 9.1 9.0 8.1 7.3 -40–50% Road ahead for net zero Achieving net zero in the residential real estate sector will require home energy renovations to improve energy effi- ciency (by reducing the amount of energy needed) and decarbonise the energy used (by switching from fossil fuels to renewable energy sources). Homes relying on fossil fuels such as gas and oil need incentives and support to transi- tion to renewables. Since 90% of homes in the Nordics rely on utilities for heating and electricity, the good progress made in decarbonising the energy sector needs to be main- tained. This is especially relevant for Denmark and Finland, which still partially rely on fossil fuels for heating and cool- ing. Changes in the residential real estate sector will also be driven by the upcoming implementation of the EU Energy Performance of Buildings Directive by member states. Actions We support the transition in the sector through advisory services, products, and energy efficiency insights. Regarding advisory services, during 2024 we introduced new training on sustainable homes and energy efficiency, enabling all our mortgage advisers to discuss energy effi- ciency and its financial implications. In 2025 we integrated the training into our sustainability curriculum and made it mandatory for all our customer-facing staff. We have and continue to develop relevant offerings and products for customers who wish to live in an energy-effi- cient home or improve the energy efficiency of their home through renovation. These include incentives such as price reductions on relevant products, for example green mort- gages, and partnerships with vendors of, for example, heat pumps and solar panels. In addition, we provide homeowners with insights regarding their energy efficiency and the potential for improving it. These include insights regarding the impacts of relying on fossil energy sources and the estimated impacts of home renovation, for example improved insula- tion, new windows, and solar panel/heat pump installa- tions. For these purposes, we engage with data providers and experts who are well positioned to support homeown- ers, such as energy authorities, sector data solution provid- ers, energy consultancy companies and energy solution providers. We also engage with business associations and policy- makers to advocate for more accurate and accessible ener- gy-related data, for example energy performance certificates. Methodologies We measure carbon intensity by dividing our total sector financed emissions by the total financed floor area, as recom- mended by the Science Based Targets initiative (SBTi). We calculate the sector financed emissions by multiplying prop- erty scope 1 and 2 emissions by an attribution factor as in the Global GHG Accounting and Reporting Standard developed by the Partnership for Carbon Accounting Financials. Similarly, we calculate the financed floor area by multiplying the property floor area by the attribution factor. The latter is calculated as the ratio of the current outstanding lending amount to the oldest available property value. The value of each property is used as the denominator in the attribution factor equation for all subsequent years until repayment of the outstanding balance or refinancing of the loan. The target was set using the Sectoral Decarbonization Approach (SDA), with external benchmark scenarios from the CRREM. The CRREM V1.093 pathway, weighted against our known financed floor area per country, indicates that our financed residential properties in the Nordics will have to decarbonise by at least 45% between 2019 and 2030 to continue on the pathway to reach net zero by 2050 at the latest. The weighted CRREM pathway will be updated as more financed floor area data becomes available. Shipping By 2030, we aim to reduce the carbon intensity of our shipping loan portfolio by 30% compared with 2019 levels. The target encompasses shipping vessels that fall within the scope of the Poseidon Principles reporting. The sector is material for us due to the high transition risk associated with shifting to alternative fuels and developing ships, and the fact that shipping loans accounted for 30% of our lending portfolio financed emissions from business loans in 2025. Shipping 0 2 4 6 8 10 '30'29'28'27'26'25'24'23'22'21'20'19 Annual efficiency ratio (gCO 2 /dwt-nm) 8.3 7.8 8.4 5.8 8.1 7.4 7.0 Poseidon Principles tr ajectoryActuals Target -30% Road ahead for net zero In 2023 the International Maritime Organization (IMO) adopted revised targets and an enhanced common ambi- tion to reach net-zero emissions from international ship- ping by 2050. We are continuously monitoring our Shipping target in the light of ongoing regulatory developments, and will update our target as soon as deemed relevant. The transition of the shipping industry will require access to capital. In the near term, emissions reductions in the sec- tor will mainly depend on the implementation of energy-ef- ficient design and operational measures across vessel fleets. In the medium-to-long term, there must be a pro- gressive transition to alternative fuels, new technologies and new builds. Actions As a leading shipping bank and an early signatory to the Poseidon Principles, we are committed to promoting a cleaner and more responsible shipping industry by ensur- ing accountability and enforcing climate reporting. We work with our customers to understand their plans for transition and how they can succeed in them. In addition, we actively engage with the Poseidon Principles Secretariat, industry stakeholders and other banks in order to set net-zero-aligned targets for shipping, in line with the ===== SIDA 134 ===== Nordea Annual Report 2025 133 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Poseidon Principles Ambition Statement. We are also a sig- natory to the Responsible Ship Recycling Standards, which are aimed at minimising the dangers associated with dis- mantling vessels and minimising adverse impacts on the environment. Methodologies We measure carbon intensity by way of the Annual Efficiency Ratio (AER), following the tank-to-wake meth- odology of the Poseidon Principles, with 2019 as the base year. In the AER, carbon intensity is a quotient of fuel con- sumption by distance travelled times dead weight tonnage (dwt) over a calendar year. The target was set using the Poseidon Principles trajec- tories, which are aligned with the benchmark scenario employed by the IMO strategy adopted in 2018. Agriculture By 2030, we aim to reduce the economic emission intensity of our agriculture loan portfolio by 40–50% compared with 2021. In 2025 the largest share of exposure and emissions within animal husbandry and crops, plantation and hunting was in Denmark. The increase in intensity between 2024 and 2025 is mainly due to new exposures to customers where we do not yet have customer data but use high-end estimations from the PCAF Database. Due to signifi- cant data quality updates, the baseline was recalcu- lated in 2025. More information can be found on page 137. The target covers lending to companies whose primary activity is animal husbandry and/or crops, plantation and hunting, and covers customers’ scope 1 and 2 emissions. It is aligned with the national agriculture targets in Denmark and Finland and the SBTi Forest, Land and Agriculture (FLAG) target- setting tool, and is assessed to fulfil the 1.5°C requirements. Agriculture 0 100 200 300 400 500 '30'29'28'27'26'25'24'23'22'21 Economic emission intensity (tCO 2 e/EURm) 348 342 327 368 182 218 Actuals Target 363 -40–50% Road ahead for net zero The agriculture sector is under political pressure to reduce GHG emissions and increase carbon removals to contrib- ute to national and EU climate targets. In general, the return on investments, including climate investments, is modest, which could be a barrier to climate transition. The transition of the sector is dependent on market demand for sustainably produced food, with policy implementation and subsidies as key levers. Multiple EU policy frameworks (such as the Common Agriculture Policy, the Fit for 55 package and the Biodiversity Strategy for 2030) and national sector targets in Denmark and Finland are aimed at contributing to the sector transition. Climate mitigation measures such as solutions to reduce manure- related emissions are important levers across the Nordics. Actions To ensure a transition in agriculture, farmers will need to implement different measures. One of the most important will be changing the way land is used by planting trees, reducing farmland and taking peat soils out of agricultural production. Farmers will also need to implement climate friendly technologies, for example technology to reduce methane emissions from manure, biogas production, the use of feed additives, and precision technology. Biochar is also expected to play a significant role in carbon removals. As a financial partner and adviser, we will support our cus- tomers and provide financing for the changes needed. We will continue to collect climate data from customers, map where the most significant challenges lie, and perform climate screening in connection with new financing and the extension of existing financing of animal husbandry. We have developed internal tools to assess the maturity of cus- tomers’ climate transition plans. Methodologies The target was set using the Economic Intensity Contraction Approach. An economic intensity-level metric offers a comparable format across customers, sub-sectors and portfolios. The sector target was set based on a poli- cy-based benchmark scenario, drawing on national sector targets for Denmark and Finland and the SBTi FLAG sec- tor target. For Norway and Sweden, we used the SBTi FLAG Tool to reduce emissions by 30% between 2021 and 2030, with two thirds of the reduction achieved through emissions reductions and one third through carbon remov- als. The chosen pathway is comparable to the few other emissions pathways for agriculture available (the University of Technology Sidney One Earth Climate Model all-sector and agricultural pathways, and the SBTi FLAG tool), indicating that it is aligned with or more ambitious than available model pathways. Motor Vehicles We aim to reduce the emission intensity of our car and van loan portfolio by at least 40% by 2030 com- pared with 2022 levels. The target is based on the 1.5°C requirement in line with the Paris Agreement and more concretely on the IEA’s Net Zero Emissions by 2050 Scenario for cars and vans. The sector is material for us due to (i) the high transition risks associated with the fossil fuel dependency of inter- nal combustion engine vehicles and (ii) financing opportunities in the shift to zero-emission vehicles and electrification. Motor Vehicles – Cars and vans 0 30 60 90 120 150 '30'29'28'27'26'25'24'23'22 Physical emission intensity (gCO 2 e/km, tank-to-wheel) 114 106 102 94 68 IEA Net zero emissions 6% p.a.Actuals Target -40% Road ahead for net zero Progress in the electrification of road transport has been one of the most promising recent developments in the transition for the sector. The Nordic car market and wider transport ecosystem are among the fastest in the world in transitioning towards net zero. While technological pro- gress and market uptake are promising, the transition as a whole requires more than just a supply-side change in cars and vans. Full transition in road transport requires further policy support in, for example, infrastructure, and all other segments need to be addressed. National and local targets and policies need to encourage a wider shift to zero-emis- sion transport along with operational and technical energy efficiency measures. However, this will be challenging if the EU’s softened 2035 regulation slows progress towards fully zero-emission transport. The revised regulation replaces the full internal combustion engine sales ban with a requirement for a 90% fleet-wide CO2 reduction and con- tinued limited sales of hybrids and vehicles running on e-fuels or biofuels. Actions We make business decisions, develop products and pursue financing opportunities based on emissions data and other business parameters to ensure alignment with our target. In addition, we closely follow the carbon footprint of our car financing by measuring the portfolio carbon intensity each ===== SIDA 135 ===== Nordea Annual Report 2025 134 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. quarter. To ensure continuous improvement, we are cur- rently updating our car financing strategy, focusing on the sustainability perspective. This will include thorough analy- sis of market and technology trends and engagement with the full value chain. By end of 2025 the share of financed battery electric vehicles had grown to 31% of our total cars and vans exposure. Methodologies The target is aligned with industry practice and focuses on the actual use of vehicles. We source actual vehicle emis- sions and combine these with national averages for kilo- metres driven to calculate the emissions of the stock of vehicles that we finance. Estimates are applied where actual vehicle emissions are not found. The target was set using the IEA Net Zero Emissions by 2050 Scenario (NZE Scenario), which requires annual emissions reductions of 6% by 2030 for cars and vans. In ensuring that our entire vehicle stock is in scope and using a contraction approach, we aim for the target to be in line with the NZE Scenario. Power Production By 2030, we aim to reduce the physical emission intensity of our power production loan portfolio by more than 70% compared with 2021 levels. The tar- get allows us to increasingly support investment in renewable and carbon-neutral power production while reducing absolute emissions in the lending book. The sector is relevant for us due to the high climate risk associated with fossil fuels (in particular thermal coal) and the significance of fossil-free power sources for the decarbonisation of other sectors. Power Production 0 100 200 300 400 500 '30'29'28'27'26'25'24'23'22'21 Physical emission intensity (gCO 2 e/kWh) IEA NZE Scenario 220 117 23 20 66 SBTi 1.5Actuals Target -70% Road ahead for net zero As we are the largest Nordic financial services company, it is in our interest to support and help ensure speed and scale in the transition within the power production sector while helping to preserve affordability, energy security and economic growth. Nordic customers continue to lead in decarbonisation efforts compared with global peers, with a power mix dominated by low-carbon sources. Nordic electricity demand is increasing, driven by electrifi- cation across transport, industrial processes and heating/ cooling, with emerging sectors such as the data centre sector further contributing to the increase. Wind power, including offshore, continues to hold signifi- cant long-term potential and is expected to play a key role in expanding renewable capacity across the Nordics, despite recent market setbacks. Combined wind and solar power production will likely be higher than hydropower production by 2038. From a technology perspective, renewable energy is commercially viable, with several well-proven technolo- gies in use. Nuclear power, both conventional and emerging small modular reactor technology, has been a material part of the power strategy in both Finland and Sweden since 2023 and will contribute to a stable base load in a power mix consist- ing of a higher proportion of intermittent energy sources than previously. Actions We are committed to supporting the decarbonisation of Nordic power production and clearly state in our sector guidelines what we do not finance. However, we consider it even more crucial to put capital behind real progress by helping to increase investment in low-carbon power. We do not provide financing to or facilitate financing for companies that derive more than 5% of their revenue from thermal coal, including coal-fired energy production. Existing customers are required to have plans for exiting power production based on thermal coal by 2030 at the latest for industrialised countries and 2040 at the latest for the rest of the world. Moreover, we do not provide financing to or facilitate financing for new customers that derive more than 5% of their revenue from peat-fired energy production. Existing customers were required to exit power and heat produc- tion based on thermal peat by 2025. Due to the war in Ukraine, an exemption has been granted for companies impacted by energy security measures taken in Finland. Our policy will be updated in 2026. We collect individual customer-level data, including absolute emissions, production intensity and production mix, so we can follow up on and support the transition of each customer. We also follow up on policies and trends in the energy market generally, including the use of non-fos- sil sources of electricity such as biomass. Methodologies The chosen metric is aligned with the SBTi sectoral guid- ance and is the metric predominantly used in the industry. Low-carbon generation (hydro, nuclear, wind, bioenergy and solar) emission intensity is based on customers’ reported annual production volumes. Where customer- specific emissions are not reported, a low-carbon estimate of 5gCO2e/kWh is used, based on research on life cycle emissions by the Intergovernmental Panel on Climate Change (IPCC) (2012) and the United Nations Economic Commission for Europe (2020). The target was set following the SBTi’s Sectoral Decarbonization Approach (SDA), a convergence approach, using the SBTi’s SDA tool for the power production sector, which is based on a combination of different 1.5°C pathways and scenarios from the IPCC and the IEA. While the target-setting tool is designed for scope 1 emissions, we used it to cover both scope 1 and scope 2 emissions. Oil & Gas By 2030, we aim to reduce the combined scope 1, 2 and 3 financed emissions from our lending to explo- ration and production (E&P) companies by 55% rela- tive to 2019 levels, targeting a maximum of 1.2 MtCO2e. The target includes scope 3 emissions, with “Use of Sold Products” being the most material cate- gory for E&P companies. Methane emissions are included as CO2 equivalents for scopes 1 and 2. In 2019 business loans to oil and gas sector clients accounted for a relatively high share of our financed emissions when including their scope 3 emissions. Oil & Gas – Exploration and production 0 1 2 3 4 5 '30'29'28'27'26'25'24'23'22'21'20'19 Scope 1, 2 & 3 (MtCO 2 e) 0.0 0.01 1.20.70.70.7 1.7 2.8 IEA NZE ScenarioActuals Target -55% Road ahead for net zero Oil and gas currently account for just over half of the world’s total energy supply, providing essential energy services across transport, industry and heating. At the same time, they are among the largest contributors to global greenhouse gas emissions, particularly through the use of sold products. The global oil and gas markets are facing increasing uncertainty and challenges driven by geopolitical tensions and structural changes in ===== SIDA 136 ===== Nordea Annual Report 2025 135 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. consumption and supply patterns. There is a stark contrast between demand and supply curves for oil and gas in sce- narios based on current policies and scenarios limiting the global temperature rise to 1.5°C. In the IEA NZE Scenario, oil and gas demand decline at an accelerating rate, driven by electrification and behavioural changes, but will still play a role in the global economy by 2050 (with signifi- cantly lower levels of production and consumption). Reaching net-zero emissions by 2050 requires transforma- tive and significantly accelerated action in all areas of soci- ety, and coordinated action on both the demand and sup- ply sides. Actions We closely monitor the sector due to the high transition risk associated with fossil fuel extraction. We have already rebalanced our exposure to the exploration and produc- tion segment by exiting relationships with a large number of European clients. The remaining portfolio consists of a few carefully selected customers who operate primarily on the Norwegian Continental Shelf and have the lowest emission intensity of production (CO2e/boe) among their peers. This reflects the need to manage energy security concerns amid considerable geopolitical upheaval in addi- tion to managing emission intensity. We do not provide or facilitate financing for projects dedicated to expanding the exploration and production of oil and gas, including through Arctic drilling, or the exploration and production of unconventional oil and gas. Methodologies The chosen metric for this target is financed emissions in tCO2e. The baseline is based on a combination of compa- ny-reported data and proxies, as scope 3 disclosures in particular were not consistent throughout the industry at the time the target was set. With increased convergence expected over time, we expect to rebase with higher-qual- ity data to ensure adequate transparency. The target pathway was set based on an absolute con- traction approach. Total GHG emissions from the supply and energy-related use of oil and gas, including methane and scope 3 emissions, need to fall by 25–33% by the end of 2030 to be aligned with the 1.5°C-aligned pathways of the IEA NZE Scenario and the One Earth Climate Model. Offshore In 2022 we announced that we were targeting a full exit from the offshore sector by 2025 – which we have now completed. Offshore refers to the sub-sec- tors drilling rigs and offshore service vessels, which were formerly included in our Oil & Gas and Shipping (maritime) portfolios. The sector was material for us due to credit risk and the fact that business loans to offshore customers accounted for a relatively large share of our financed emissions in 2019 (the base year). Offshore 0 500 1,000 1,500 2,000 2,500 '25'24'23'22'21'20'19 Lending volume (EURm) Actuals 1,507 0126 72 1,872 1,399 386 -100% Actions In 2019 we had EUR 1.9bn in lending to the sector, which was evenly split between drilling rigs and offshore service vessels. By the end of 2025, we had made a complete exit from the sector and had thus met the target. Methodologies As the target was for an exposure-based phase-out, emis- sions-based benchmark scenarios were not applicable. Mining In 2022 we announced that we were targeting a full exit from the thermal coal and thermal peat sub-sectors by 2025. Thermal coal and thermal peat have high GHG emission intensities. Their explora- tion is therefore associated with high climate risk and stranded asset risk. We phased out lending to thermal coal customers in 2021. For thermal peat mining customers, we phased out lending in 2025, with an exception relating to the war in Ukraine and energy security measures in Finland taken after the target was set. We support the resilience of the energy supply in our home markets and continue to provide and facilitate lending to customers under certain exceptional conditions. Our policy for ther- mal peat will be updated in 2026. Thermal peat mining 0 15 30 45 60 75 '25 target'25'24'23'22 Lending volume (EURm) 52 51 18 18 – Actuals -100% Road ahead for net zero Total demand for metals and minerals is projected to increase sixfold by 2040, driven by the rapid need to scale up clean technologies in all the EU’s industrial ecosystems. As reflected in the EU Commission’s RESourceEU plan, domestic mining is part of the EU’s Strategic Compass for Security and Defence. The Nordic countries have an abun- dance of some critical minerals and a mature mining sec- tor operating under strict environmental regulations. Actions As a financial services provider, we seek opportunities to support mining companies helping to enable the green transition. Methodologies The target was set using an absolute contraction approach and refers to financing for both thermal coal mining and thermal peat mining. The IEA NZE Scenario states that, following a transition in the energy sector, no new coal or peat mines or extensions thereof will be required as of 2021. It also states that there should be a phase-out of existing activities by 2030 for OECD countries and by 2040 for the rest of the world. The Scenario includes peat under coal estimates. ===== SIDA 137 ===== Nordea Annual Report 2025 136 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Energy consumption and mix Our energy consumption stems from the use of fuel, elec- tricity, heating and cooling in our operations. We have direct access to energy consumption data for our head offices and company cars, while energy consump- tion data for other locations is estimated. Nuclear energy consumption data is gathered from national sources. We use 100% renewable electricity purchased through Guarantee of Origin certificates. We continuously monitor the energy consumption of our own operations and intend to increase our energy efficiency and the effectiveness of our energy use in addition to reducing emissions. In 2025 our total energy consumption amounted 148,966 MWh. The estimated energy consumption for the branches amounted to 55,786 MWh, which is an increase of 1% since 2024. Energy consumption and mix 2023 2024 2025 Fuel consumption from coal and coal products – – – Fuel consumption from crude oil and petroleum products 6,728 7,700 4,390 Fuel consumption from natural gas 6 – – Consumption of purchased or acquired electricity, heat, and cooling from fossil sources (MWh) 26,059 28,298 26,138 Total fossil energy consumption (MWh) 1 32,793 35,998 30,528 Of which share of fossil sources in total energy consumption (%) 23% 23% 20% Consumption from nuclear sources (MWh) 9,905 11,160 12,302 Of which consumption from nuclear sources in total energy consumption (%) 7% 7% 8% Fuel consumption for renewable sources, including biomass (MWh) 400 379 208 Consumption of purchased or acquired electricity, heat, and cooling from renewable sources (MWh) 100,137 109,619 105,657 Self-generated non-fuel renewable energy (MWh) 2 237 285 271 Total renewable energy consumption (MWh) 100,774 110,283 106,136 Of which share of renewable sources in total energy consumption (%) 70% 70% 71% Total energy consumption (MWh) 3 143,472 157,441 148,966 Energy Intensity4 12 13 13 1) Includes EcoPar A, with 450 litres in 2023, 1,932 litres in 2024 and 1,932 litres in 2025. 2) 271 MWh of electricity consumption in 2025 originated from own rooftop solar energy production. 3) The total energy consumption covers the consolidated accounting group. 4) This is an entity-specific metric, which is calculated as total energy consumption divided by total operating income. The energy intensity figures for 2023 and 2024 have been restated from 8mWh/EURm and 8mWh/EURm, respectively. The total operating income figures are EUR 11,742m for 2023, EUR 12,100m for 2024 and EUR 11,743m for 2025. Gross scopes 1, 2, 3 and total GHG emissions Our methodology for estimating GHG emissions is based on the principles, requirements and guidance set out in the GHG Protocol Corporate Standard (2004 version) and the Partnership for Carbon Accounting Financials (PCAF) Global GHG Accounting and Reporting Standard Part A (2nd version) and Part B, but also applies certain devia- tions and own methods to meet the specific characteristics of our lending, investment and capital market portfolios. A summary of our methodologies can be found on pages 147–148. In our GHG accounting and disclosures we use the operational control approach for measuring our opera- tional and financed emissions. Our total emissions provide transparency on climate- related risks and negative impacts, and inform actions to support positive impacts and business opportunities. In 2025 our total emissions were 19,791,381 tCO2e, rep- resenting a 34% reduction relative to the 2019 baseline. Financed emissions in the lending and investment portfo- lios represented the most significant portion (99.9%) of our total emissions. The total emissions figure for scope 3 category 15 (Investments) in the table “Gross scopes 1, 2, 3 and total GHG emissions” below includes counterparty scope 1 and 2 emissions and is lower than the sum of the financed emissions figures in the separate tables under “Lending portfolio” and “Investment portfolio”. This is because, in the gross emissions table, we have deducted Nordea Life & Pension’s financed emissions stemming from invest- ments in fund products created by Nordea Asset Management (NAM). We made the deduction to avoid double-counting, as these emissions are already reported by NAM (see “Investment portfolio” on page 143). Our interim absolute emissions targets (those to be met by the end of 2030) are not reflected in the gross emissions table below. This is because these targets are not set for gross scope 1, 2, and 3 emissions separately. Instead, we have set interim absolute targets for own operations emis- sions where data quality is sufficient and for the lending portfolio. NAM and Nordea Life & Pension (NLP) have intensity-based targets and do not currently have mile- stones or targets for absolute financed emissions. Furthermore, emissions from sovereign debt financing and capital market activities are excluded from all years in the gross emissions table, as are counterparty scope 3 emissions. We are awaiting formal guidance from the European Financial Reporting Advisory Group (EFRAG) and the PCAF on whether or not financial institutions are expected to aggregate these. We follow the guidance for reporting them separately, which is very clear. Detailed dis- closures on these emissions can be found in the following tables: “Sovereign debt financed emissions” on page 145, “Facilitated emissions” on page 149, “Business loan financed emissions” on page 140 (for lending portfolio counterparty scope 3 emissions), and “Financed emissions – investment portfolio coverage” on pages 144–146 (for investment portfolio counterparty scope 3 emissions for NAM and NLP). The total GHG emission intensity is calculated based on the sum of scope 1, 2 and 3 emissions divided by total oper- ating income, which is aligned with our income statement. The structure of our current disclosures on total GHG emissions and intensity may change if there are updates to ESRS E1 Climate change, the PCAF Standard or our own reporting boundaries, or if a standardised market-wide dis- closure framework is developed. ===== SIDA 138 ===== Nordea Annual Report 2025 137 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Gross scopes 1, 2, 3 and total GHG emissions Retrospective Achieved emissions Base year1 2024 2025 % 2025/2024 Scope 1 GHG emissions Gross scope 1 GHG emissions (tCO2e)2,3 2,796 1,810 1,032 -43 of which from regulated emission trading scheme (%) 0 0 0 – Scope 2 GHG emissions 2,3 Gross location-based scope 2 GHG emissions (tCO2e) 23,304 16,779 13,688 -18 Gross market-based scope 2 GHG emissions (tCO2e) 18,902 16,540 12,829 -22 Significant Scope 3 GHG emissions4 Total Gross indirect (Scope 3) GHG emissions (tCO2e) 29,998,043 19,827,749 19,777,520 0 1 Purchased goods and services2 4,639 3,111 2,725 -12 2 Capital Goods 103 – – – 3 Fuel and energy related activities2,3 7,244 7,211 6,448 -11 5 Waste generated 2 734 316 404 28 6 Business traveling 2 27,042 11,490 6,192 -46 15 Investment – Financed Emissions – Lending5,6 19,345,822 10,734,680 10,906,684 2 15 Investment – Financed Emissions – Investment5,6 10,612,459 9,070,941 8,855,067 -2 Total Emissions Total GHG emissions (location-based) (tCO2e) 30,024,143 19,846,338 19,792,240 0 Total GHG emissions (market-based) (tCO2e) 30,019,741 19,846,099 19,791,381 0 1) The base year is 2019 in the GHG emissions calculation. 2) The operational carbon footprint (OCF) includes scope 1, scope 2, and scope 3 categories 1, 3, 5 and 6, and has been restated for the years 2019 and 2024. The restatements were due to updates to emission factors and full coverage of the consolidated accounting group. For the year 2019, the restatements (in tCO2e) were for scope 1 from 1,636 to 2,796, scope 2 from 11,636 to 23,304 (location-based) and 5,567 to 18,902 (market-based), scope 3 category 1 from 5,825 to 4,639, category 3 from 3,894 to 7,244, category 5 from 371 to 734 and category 6 from 25,015 to 27,042. For the year 2024, the restatements (in tCO2e) were for scope 1 from 1,025 to 1,810, scope 2 from 6,299 to 16,779 (loca- tion-based) and 3,037 to 16,540 (market-based), scope 3 category 1 from 1,863 to 3,111, category 3 from 2,404 to 7,211, category 5 from 183 to 316 and category 6 from 11,270 to 11,490. 3) Biogenic emissions from diesel and petrol corresponded to 1 tCO2e in 2025. Biogenic emissions from purchased electricity, heating and cooling corresponded to 5,134 tCO2e in 2025. We assessed the biogenic emissions from scope 3 category 3 and category 6 as insignificant for the 2025 reporting. 4) Category 1 (paper and postal data), category 5 (waste data) and category 6 (own car usage data) emissions are calculated using primary activity data and together represent 0% of all significant scope 3 GHG emissions reported. 5) Scope 3 category 15 Investments covers financed emissions in our lending portfolio and investment portfolio, including counterparty scopes 1 and 2. The estimated GHG emis- sions calculation is based on the PCAF Standard; the main assumptions and deviations from the standard are presented on page 147. 6) We recalculated the 2019 baseline and the 2024 figures for the lending portfolio due to data quality improvements across the portfolio. Further details on the updates are pro- vided in the accompanying text to the right. Reported GHG emissions covered by targets 100% Lending portfolio 100% Investment portfolio 100% Own operations The table presents the share of reported gross scope 1, 2, 3 and total GHG emissions for which we have a near- term reduction target reported in the section “Targets related to climate change mitigation and adaptation”. These gross totals do not include emissions from investments in sovereign debt, emissions from capital market activities or counterparty scope 3 emissions – which are disclosed separately. We included the entire consolidated accounting group in our operational carbon footprint baseline calculation, which led to a 35% increase in the baseline for the location- based calculation and a 44% increase in the base- line for the market-based calculation. In 2025 data quality improvements across the lending portfolio impacted the baseline, historical data and sector targets. The improvements were significant and reduced the financed emissions from the base year 2019 and onwards by several million tCO2e. Details can be found in the table “Breakdown of financed emissions in the lending portfolio” and the asset-class-specific tables in this report. One improvement was that we incorporated more customer-reported data for cor porate exposures and farm- activity-specific emission fac tors for the Danish Agriculture portfolio. These updates enhanced data quality in the busi- ness loans asset class. Following significant improvements in the data quality of the emission factors used for Agriculture, we updated the target baseline from 758 to 363 tCO2e/ EURm of lending. When customer-reported emissions data was unavaila- ble, we defaulted to emission factors provided by the PCAF. For sectors where relevant external data existed, we adjusted the PCAF emission factors to reflect the aver- age changes in emissions over time and the gross value added within the sector. This adjustment enabled us to estimate emissions in the lowest data quality category more precisely, aligning with actual societal trends. For the residential and commercial real estate asset classes, we gathered publicly accessible energy performance certificates and information about the properties’ heating sources to improve the emissions estimates. Following signif- icant improvements in the data quality of the emission fac- tors used for the Residential Real Estate portfolio, we updated the target baseline from 17.4 to 12.2 kgCO2e/m2. For the motor vehicles asset class, we obtained data on passenger cars and vans from external providers and applied more detailed emission factors based on model, series and/or category for heavy-duty vehicles and machin- ery, thereby enhancing data quality in this portfolio. Total Emissions Intensity Base year1 ,2 2024 2 2025 % 2025/2024 Total GHG emissions (location-based) per net revenue (tCO2e/monetary unit)3 3,482 1,640 1,685 3 Total GHG emissions (market-based) per net revenue (tCO2e/monetary unit)3 3,481 1,640 1,685 3 1) The base year is 2019 in the GHG emissions calculation. 2) The total emission intensity has been restated for the years 2019 (3,919 tCO2e/monetary unit) and 2024 (1,981tCO2e/monetary unit). 3) “Net revenue” refers to the total operating income of the respective year: EUR 8,623m in the base year 2019, EUR 12,100m in 2024, and EUR 11,743m in 2025. ===== SIDA 139 ===== Nordea Annual Report 2025 138 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. The methodology defines the circumstances under which base year financed emissions must be recalculated and the significance threshold triggering a recalculation (>5%). We also consider recalculating the baseline when a change of lesser significance occurs to enable more trans- parent target monitoring. We plan to continue refining the methodology and increasing data granularity. Our financed emissions We are committed to disclosing our share of GHG emis- sions associated with the loans and investments we pro- vide to customers and investees, known as financed emis- sions. While we face the challenge of limited data availa- bility and must use assumptions in places, we are determined to improve data quality, increase transparency for our stakeholders and – most importantly – show pro- gress on our decarbonisation journey. Our financed emissions disclosures cover a selection of on- and off-balance sheet asset classes in our lending and investment portfolios. Our lending portfolio (on-balance sheet) includes the PCAF asset classes business loans, motor vehicles, residential real estate and commercial real estate. In 2025 we managed to cover financed emissions for 96% of our total on-balance sheet lending portfolio exposures. Our investment portfolio includes NAM and NLP invest- ments in listed equities and corporate bonds, and directly held real estate in NLP. Since 2024, we have also included financed emissions from sovereign debt financing across NAM, NLP and Group Treasury. NAM investments do not appear on the Nordea Group balance sheet. Our lending and investment portfolio financed emissions disclosures include counterparty scope 1 and 2 emissions. Furthermore, in accordance with the PCAF Standard, we report our counterparty scope 3 emissions for business loans and listed equities and corporate bonds separately for all sectors. This practice is also in line with the European Banking Authority’s Implementing Technical Standards on Pillar 3 Disclosures on ESG Risks as adopted in Commission Implementing Regulation (EU) 2024/3172. Metrics for sector-specific targets for the lending portfolio and the weighted average carbon intensity for the NAM and NLP portfolios are provided in the relevant tables below. Estimates across all asset classes in the lending and invest- ment portfolios were based on 2025 or earlier financial data, and on 2024 or earlier emissions data, depending on the latest available information from customers and investees. Our disclosures do not cover financed emissions from bonds and equities in Markets and Treasury operations, as these are held for shorter durations and for liquidity man- agement purposes. Our disclosures do not cover financed emissions from covered bonds, undrawn loan commit- ments or other items included in the latest updates to the PCAF Standard. The PCAF Standard updates were made in December 2025 and were therefore not reflected in the external reporting for 2025. We expect to include informa- tion on several of these Standard updates in the near future as work progresses. Distribution of total emissions (tCO 2e) 0 30,000 7,500,000 15,000,000 22,500,000 30,000,000 Scope 1 / scope 2 (market-based) Scope 3 category 1 Scope 3 categories 2–14 Scope 3 category 15 Lending Scope 3 category 15 Investments1 Scope 1 Scope 2 (market- based) Scope 3 1,032 12,829 2,725 13,044 10,906,684 8,855,067 1) ”Investments” is defined as the combination of NAM and NLP. Financed emissions Business loans, 41% Motor vehicles, 9% Commercial real estate, 1% Residential real estate, 4% Investments1, 45% 1) “Investments” is defined as the combined investment portfolios of NAM and NLP. The total percentage has been subject to rounding. Motor vehicle loansBusiness loans and unlisted equity Lending Financed emissions Listed equities and corporate bonds Sovereign debt Investments Financed emissions Debt Capital market activities Facilitated emissions Commercial real estate Residential real estate (mortgages) ===== SIDA 140 ===== Nordea Annual Report 2025 139 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Lending portfolio Between 2019 and 2025 our total lending portfolio financed emissions decreased by 44%, mainly due to reductions in exposures to the shipping, oil and gas and offshore sectors within business loans. When available, we use company-specific data to calcu- late our scope 1, 2 and 3 financed emissions. The remaining financed emissions are estimated using a mix of proxies from the PCAF Database and our own proxies adapted for the Nordic region, which we apply using a purpose-built internal emissions estimation tool. For more information see “Methodology for financed emissions” on page 147. Our financed emissions from business loans are dis- played for different climate-vulnerable sectors in the lend- ing portfolio. Company-specific data, when weighted by exposure, covers 30% of the business loans asset class, corresponding to an average PCAF data quality score of 3.9. To provide further transparency on our progress towards sector targets, we report the latest available emission intensity data for shipping vessels that are in line with the Poseidon Principles; animal husbandry; crops, plantation and hunting; and power production. Our financed emissions from motor vehicles include those associated with lending and leasing. Leasing accounts for the major share (68%) of financed emissions from this asset class. In 2025 we managed to source emis- sions data for passenger cars, vans and heavy-duty vehi- cles from external vendors. The average PCAF data quality score was 3.3 in 2025. For residential and commercial real estate, recent data quality improvements have centered around the collection and updating of EPC labels, properties’ heating sources and emissions from these in the Nordic region. The aver- age PCAF data quality score for residential real estate was 3.6 and for commercial real estate was 3.9 in 2025. Financed emissions from tenant-owner associations (TOAs) are estimated and included in residential real estate as TOAs are mainly used for residential purposes. Emission intensity metrics for residential real estate and commercial real estate are also reported in the tables below. Although we do not have a sector target for com- mercial real estate, we report and actively work to reduce the emission intensity in line with the Net-Zero Banking Alliance guidelines. Breakdown of financed emissions in the lending portfolio 2025 2024 2023 2019 Asset class Exposure (EURm)1 Financed emissions scope 1 and 2 (tCO2e) Company/asset- specific data (%)2 Overall data quality score (1–5) 3 Financed emissions scope 1 and 2 (tCO2e) Company/asset- specific data (%)2 Overall data quality score (1–5) 3 Financed emissions scope 1 and 2 (tCO2e) Company/asset- specific data (%)2 Overall data quality score (1–5) 3 Financed emissions scope 1 and 2 (tCO2e) 2019–25 financed emissions development (tCO2e) (%)4 Business loans 96,386 8,167,423 30 3.9 7,775,985 32 3.9 8,891,799 38 3.7 15,724,330 -48 Motor vehicles5 10,549 1,837,108 37 3.3 1,968,998 41 3.3 2,051,395 48 3.2 2,233,288 -18 Residential real estate 6 193,484 702,708 60 3.6 796,396 58 3.6 797,660 55 3.6 1,128,395 -38 Commercial real estate 34,844 199,444 53 3.9 193,302 57 3.8 189,190 55 3.8 259,809 -23 Sub-total7 335,263 10,906,684 – – 10,734,680 – – 11,930,045 – – 19,345,822 -44 Other exposures8 13,080 Total7 348,343 1) ”Exposure” covers on-balance sheet items, with an adjustment to the nominal value of exposures reported at fair value on the balance sheet (Nordea Realkreditaktieselskab). 2) Company/asset-specific data percentages are weighted by exposure. The asset-specific data percentages for “residential real estate” and “commercial real estate” represent the coverage of the exposure-weighted share of the collateral with an EPC label, including EPC labels that have expired within the past five years. 3) Overall data quality scores are weighted by exposure and cover counterparty scope 1 and 2 emissions. 4) In 2025 the baseline for financed emissions in the lending portfolio (2019) was recalculated and decreased by 16% (from 23,141,420 tCO2e). The reported financed emissions were recalculated for 2023, decreasing by 26% (from 16,045,061 tCO2e) and for 2024, decreasing by 28% (from 14,842,062 tCO2e). The baseline recalculation includes data improvements across all asset classes and years. 5) Data for “motor vehicles” includes loans and leasing. 6) “ R esidential real estate” includes tenant-owner associations (TOAs) with residential real estate as collateral. “Residential real estate” corresponds to the PCAF asset class “mortgages”. 7) The total lending portfolio coverage is 96%. 8) ”Other exposures” includes other consumer lending exposures. ===== SIDA 141 ===== Nordea Annual Report 2025 140 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Business loan financed emissions 2025 2024 2023 Sector Exposure (EURm)1 Counterparty scope 1 and 2 (tCO2e) Counterparty scope 3 (tCO2e) Emission intensity2 Exposure (EURm)1 Counterparty scope 1 and 2 (tCO2e) Counterparty scope 3 (tCO2e) Emission intensity2 Exposure (EURm)1 Counterparty scope 1 and 2 (tCO2e) Counterparty scope 3 (tCO2e) Emission intensity2 2025 share of financed emissions in % (vs 2019, %) Mining and supporting activities 490 123,280 287,882 343 108,469 228,377 309 128,531 373,131 1 (2) Oil, gas and offshore 332 129,763 173,939 439 172,914 887,247 507 111,423 1,030,560 1 (10) of which oil and gas exploration and production 3 338 11,616 74 15,144 713,965 75 15,386 709,254 0 (1) Shipping 4,010 2,415,124 1,673,926 4,169 2,459,823 1,780,565 4,921 3,165,345 2,278,184 30 (38) of which shipping vessels3 2,658 1,600,745 1,168,221 3,275 2,020,931 1,415,647 7.0gCO2/dwt*nm 4,098 2,751,614 1,962,271 7.4gCO2/dwt*nm 20 (27) Transport (air and land) 1,885 79,942 573,732 1,512 62,806 449,503 1,571 106,307 414,506 1 (4) Construction 5,799 167,212 2,476,124 5,538 162,506 2,374,178 6,576 205,610 3,461,921 2 (1) Materials 2,287 395,487 1,744,143 2,159 335,389 1,719,192 2,122 355,358 1,895,448 5 (6) Paper and forest products 1,243 123,833 473,773 1,331 139,282 481,048 1,214 116,665 455,745 2 (1) Agriculture4 7,500 2,087,707 1,918,698 7,099 1,802,514 1,873,997 7,282 1,896,539 1,973,147 26 (15) of which animal husbandry and crops, plantation and hunting 4 4,311 1,587,661 864,306 368 tCO2e/EURm 4,270 1,396,844 868,208 327 tCO2e/EURm 4,549 1,556,213 893,735 342 tCO2e/EURm 19 (13) Power production 5 2,429 361,603 402,380 2,170 321,783 365,728 20 gCO2e/kWh 2,451 383,293 799,636 23 gCO2e/kWh 5 (4) Utilities, distribution and waste management 5,018 812,733 645,623 4,338 794,963 627,554 4,281 801,471 615,032 10 (5) Capital goods 4,304 119,406 8,075,049 3,719 102,080 5,790,971 3,782 109,632 9,591,272 1 (1) Accommodation and leisure 1,926 53,413 464,657 1,770 50,522 425,892 1,972 49,913 451,625 0 (0) Insurance 1,246 12,823 59,493 1,243 13,034 59,130 1,027 11,356 55,789 0 (0) Other 6 57,918 1,285,096 32,757,766 53,430 1,249,899 27,876,390 52,002 1,450,358 30,710,371 16 (13) Total 7 96,386 8,167,423 51,727,185 89,260 7,775,985 44,939,772 90,017 8,891,799 54,106,367 100 (100) 1) Exposures relate to on-balance sheet items. 2) The emission intensities correspond to those presented in “Sector analysis and targets for lending portfolio” on page 131. The latest available data for shipping and power production is from 2024. 3) Shipping vessels in line with the Poseidon Principles. 4) “Agriculture” includes fishing and aquaculture; animal husbandry; and crops, plantation and hunting. Due to data quality improvements, the emission intensity figures for 2023 and 2024 have been restated, from 704 tCO2e/EURm and 730 tCO2e/EURm, respectively. 5) For financed emissions from renewable energy producers, we apply an internally developed proxy of 5g/kWh. 6) “Other” includes the real estate management industry (REMI), buildings management, other industrial activities, and other sectors within business loans not defined as climate-vulnerable sectors. 7) The t otal increase in business loan scope 3 emissions was mainly driven by increased exposure to the capital goods sector, which is associated with high counterparty scope 3 emission intensity. This increased exposure outweighed the large decrease in exposure to the oil and gas exploration and production sector. ===== SIDA 142 ===== Nordea Annual Report 2025 141 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Company-specific data and PCAF data quality scores 1 2025 2024 2023 Counterparty scope 1 and 2 Counterparty scope 3 Counterparty scope 1 and 2 Counterparty scope 3 Counterparty scope 1 and 2 Counterparty scope 3 Company-specific data (%) Overall data quality score Company-specific data (%) Overall data quality score Company-specific data (%) Overall data quality score Company-specific data (%) Overall data quality score Company-specific data (%) Overall data quality score Company-specific data (%) Overall data quality score Sector Mining and supporting activities 84 2.2 84 2.2 76 2.5 76 2.5 56 3.0 56 3.0 Oil, gas and offshore 80 2.4 80 2.4 66 2.5 66 2.5 93 1.8 85 2.1 of which oil and gas exploration and production 95 1.0 100 1.0 6 2.9 6 2.9 100 1.0 100 1.1 Shipping 86 1.9 29 3.9 92 1.4 37 2.9 91 1.4 45 3.8 of which shipping vessels2 100 1.0 26 4.1 100 1.0 30 4.0 100 1.0 46 3.6 Transport (air and land) 47 3.2 46 3.2 32 3.8 35 3.7 27 3.9 30 3.9 Construction 19 4.3 20 4.3 19 4.4 18 4.4 21 4.3 22 4.3 Materials 52 3.1 51 3.2 45 3.4 43 3.5 50 3.2 46 3.4 Paper and forest products 33 3.8 26 4.0 42 3.4 36 3.6 47 3.3 34 3.7 Agriculture3 32 3.8 9 4.7 39 3.5 12 4.5 43 3.4 15 4.4 of which animal husbandry and crops, plantation and hunting 41 3.5 1 5.0 46 3.3 1 4.9 45 3.4 1 5.0 Power production 39 3.3 18 4.4 44 3.1 21 4.3 73 2.5 40 3.8 Utilities, distribution and waste management 70 2.9 31 4.1 67 3.0 31 4.1 71 2.9 26 4.2 Capital goods 34 3.8 29 4.0 34 3.8 31 3.9 43 3.6 31 3.9 Accommodation and leisure 22 4.3 22 4.3 22 4.3 22 4.3 36 3.9 36 3.9 Insurance 0 5.0 0 5.0 0 5.0 0 5.0 0 5.0 0 5.0 Other4 22 4.2 20 4.3 24 4.2 22 4.2 29 4.0 25 4.2 Total 30 3.9 22 4.2 32 3.9 24 4.2 38 3.7 27 4.1 1) Company-specific data and overall data quality scores are weighted by exposure. 2) Shipping v essels in line with the Poseidon Principles. 3) “ Agriculture” includes fishing and aquaculture; animal husbandry; and crops, plantation and hunting . 4) ”Other” includes the real estate management industry (REMI), buildings management, and other sectors within business loans not defined as climate-vulnerable sectors. ===== SIDA 143 ===== Nordea Annual Report 2025 142 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Motor vehicles financed emissions 1 2025 2024 2023 Vehicle type Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) Emission intensity (gCO2/km)2 Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) Emission intensity (gCO2/km)2 Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) Emission intensity (gCO2/km)2 2025 share of financed emissions in % (vs 2019, %) Cars and vans 4,636 216,815 94 4,475 236,424 102 4,491 243,671 106 11 (12) Industrial vehicles and mobile machinery 2,256 622,315 2,287 689,536 2,412 743,285 34 (37) Trucks and heavy vehicles 1,479 476,636 1,467 491,638 1,480 486,150 26 (20) Farming machinery incl. tractors 1,155 391,199 1,123 426,486 1,093 456,849 22 (20) Other 1,023 130,143 907 124,913 861 121,441 7 (11) Total 10,549 1,837,108 10,259 1,968,998 10,337 2,051,395 100 (100) 1) “Motor vehicles” includes loans and leasing. 2) Emission intensity covers counterparty scope 1 emissions in line with our cars and vans target. Residential real estate financed emissions 1 2025 2024 2023 Country Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) 2 Emission intensity (kgCO2e/m2)2 Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) 2 Emission intensity (kgCO2e/m2)2 Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) 2 Emission intensity (kgCO2e/m2)2 2025 share of financed emissions in % (vs 2019, %) Denmark 50,192 259,778 13 50,917 311,379 13 51,884 338,560 14 37 (35) Finland 36,418 314,913 15 36,101 360,310 18 36,456 333,971 15 45 (48) Norway 42,185 12,137 1 41,522 12,428 1 34,013 10,394 1 2 (2) Sweden 64,689 115,880 5 58,552 112,278 5 59,106 114,735 5 16 (15) Total 193,484 702,708 8 187,093 796,396 9 181,459 797,660 9 100 (100) 1) ”Residential real estate” includes tenant-owner associations (TOAs). “Residential real estate” corresponds to the PCAF asset class “mortgages”. 2) Financed emissions from residential real estate are based on national data on average energy consumption according to EPC label and property energy source, if known. If not known, a national average is used. Financed emissions and emission intensities are impacted by portfolio EPC composition. ===== SIDA 144 ===== Nordea Annual Report 2025 143 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Commercial real estate financed emissions 2025 2024 2023 Country Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) Emission intensity1 (kgCO2e/m2) Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) Emission intensity (kgCO2e/m2) Exposure (EURm) Counterparty scope 1 and 2 (tCO2e) Emission intensity (kgCO2e/m2) 2025 share of financed emissions in % (vs 2019, %) Denmark 7,775 46,993 14 6,955 56,125 15 6,984 51,418 14 23 (35) Finland 6,730 99,659 23 5,980 92,473 23 5,650 91,124 23 50 (45) Norway 7,610 5,437 6 7,440 5,967 6 8,467 6,719 6 3 (3) Sweden 12,729 47,356 8 10,517 38,736 7 10,316 39,929 8 24 (17) Total 34,844 199,444 13 30,892 193,302 14 31,417 189,190 14 100 (100) 1) Financed emissions for commercial real estate are based on national data on average energy consumption according to EPC label and property energy source, if known. If not known, a national average is used. Financed emissions and emission intensities are impacted by portfolio EPC composition. Real estate portfolios by EPCs 1 EPC available Residential real estate Commercial real estate Denmark Finland Norway Sweden Denmark Finland Norway Sweden Volume (EURm) Share (%) Volume (EURm) Share (%) Volume (EURm) Share (%) Volume (EURm) Share (%) Volume (EURm) Share (%) Volume (EURm) Share (%) Volume (EURm) Share (%) Volume (EURm) Share (%) A 4,262 8 911 2 675 1 394 1 2,108 27 48 1 519 7 332 3 B 2,065 4 3,624 10 3,064 7 4,236 7 479 6 263 4 1,213 16 1,051 8 C 7,931 16 4,345 12 2,485 6 7,719 12 1,303 17 383 6 822 11 1,538 12 D 5,285 11 5,814 16 2,960 7 9,820 15 470 6 170 2 583 8 1,814 14 E 1,637 3 4,239 12 2,790 7 11,306 17 260 3 91 1 569 7 1,560 12 F 573 1 1,047 3 3,483 8 4,814 7 36 1 19 0 293 4 791 6 G 234 1 178 0 5,072 12 1,229 2 26 0 9 0 175 2 283 2 EPC proxy2 5,478 11 410 1 3,760 9 3,426 5 636 8 53 1 520 7 78 1 No label 22,727 45 15,850 44 17,896 42 21,745 34 2,458 32 5,694 85 2,916 38 5,281 42 Total 50,192 100 36,418 100 42,185 100 64,689 100 7,775 100 6,730 100 7,610 100 12,729 100 1) EPC data is based on the data available on the local market. EPC coverage in all markets is expected to increase over time and may impact the emissions calculations. 2) “EPC proxy” refers to EPCs that have expired but no longer than five years ago. Investment portfolio Estimates for financed emissions in NAM’s off-balance sheet investment portfolio are based on data collected from investee companies through the vendors MSCI and ISS ESG. The GHG emissions data sourced from these ven- dors includes emissions directly reported by investee com- panies and modelled estimates (when reported emissions are not available). Reported emissions data is considered equivalent to a PCAF data quality score of 2. For this data, the vendors have governance and quality assurance procedures in place to validate accuracy. In MSCI’s case, this includes processes such as anomaly detection, dual vendor valida- tion (comparing values collected from various sources) and company outreach. NAM consolidates data from sev- eral data vendors to improve the overall data coverage. This makes it possible to identify cases where different vendors have provided significantly different emissions data for the same company and the same year. In these cases, NAM carries out additional quality assurance to ensure it selects the data that is most likely to be correct. If reported data is not available, or is not of sufficient quality, the data vendors provide estimated scope 1 and 2 GHG emissions values based on their respective estima- tion models. MSCI’s production model is used for electric utility companies where the type of fuel is known; here, the modelled data is considered equivalent to a PCAF score of 2. MSCI’s company-specific intensity model is used for companies where NAM has historical but not cur- rent emissions data, with the modelled data considered equivalent to a PCAF score of 3. MSCI’s industry seg- ment-specific intensity model (E. Segmt) is based on sec- tor averages for companies that have not made any disclo- sures; in this case, the modelled data is considered equiva- lent to a PCAF score of 4. In addition, NAM supplements MSCI data with data from ISS ESG. The data reported by ISS ESG is assigned a PCAF score of 2. ===== SIDA 145 ===== Nordea Annual Report 2025 144 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. NAM’s final data consolidation across providers is aimed at optimising the overall PCAF data quality. In 2025 NAM chose to report unscaled financed emissions, i.e. financed emissions for companies where data coverage was com- plete. These corresponded to 97% of the investments under NAM’s management. This approach was chosen because it was considered the most transparent and fully enabled interested parties to calculate scaled emissions. For NLP, financed emissions are reported for all man- aged assets where NLP makes investment choices on behalf of beneficiaries. NLP reports financed emissions from all asset classes where data coverage is sufficient and established methodologies are available. For asset classes where this is not yet the case, NLP assumes that data and methodologies will become available in the future. Reported financed emissions from NLP’s investments are unscaled and based on data from investee companies provided by MSCI. See the table “Financed emissions – investment portfolio coverage” below for details on port- folio coverage and data quality. Data quality is largely determined as described above for NAM, except for the fact that MSCI is NLP’s sole data provider for listed equi- ties and fixed-income instruments. For NLP’s directly held real estate portfolio, NLP uses vendor-specific reported data, corresponding to a PCAF score of 2. We also report sovereign debt financed emissions for NAM, NLP and Group Treasury. Here, the PCAF recom- mends using production emissions, including exported emissions, which have the best data quality score as they are reported by sovereign entities. Following the PCAF recommendations, we report scope 1 sovereign emissions both including and excluding land use, land use change and forestry (LULUCF), as countries have different approaches to LULUCF emissions accounting. Financed emissions are calculated in accordance with Part A of the PCAF Standard. MSCI data is used for sover- eign debt emissions for NLP and NAM. MSCI data is aligned with the 2021 PCAF emission factors data (which has a data quality score of 1 according to the PCAF Standard). Financed emissions – investment portfolio coverage Value of investments (EURm)2 Financed emissions (tCO2e) Company-specific data (%) Overall data quality score (1–5) Nordea Asset Management Listed equities and corporate bonds (scope 1 and 2)1 299,146 8,739,742 96 2.1 Sovereign debt (scope 1, excl. LULUCF) 20,958 3,115,297 97 1.1 Nordea Life and Pension3,4 Listed equities and corporate bonds (scope 1 and 2)1 52,176 1,614,074 95 2.1 Directly held real estate 3,498 5,890 100 2.0 Sovereign debt (scope 1 excl. LULUCF) 2,834 389,604 – 4.0 Group Treasury Sovereign debt (scope 1 excl. LULUCF) 12,185 1,981,082 – 4.0 1) P ortfolio coverage of 97% for NAM and 95% for NLP. 2) Appr oximately 80% of NLP’s assets under management (AuM) are managed by NAM. The resulting double counting of emissions is not accounted for in this table. 3) NLP uses the most recent data available, which in the case of sovereign bonds is estimated data, not country-reported data. 4) Ass ets on NLP’s balance sheet consist of (a) assets managed by NLP (67% of total AuM on NLP’s balance sheet at the end of 2025) and (b) assets not managed by NLP (33% of NLP’s AuM). The former are in scope for NLP’s reporting and reflect GHG emissions gener- ated by NLP’s insurance- and pension-based investment products, where NLP makes decisions as to which internally or externally managed instruments (for example, mandates, structured investment products or single securities) to invest in. Assets not managed by NLP are excluded from NLP’s reporting and consist of assets where the customer makes the investment selection through our investment platforms. These are mostly NAM funds (26% of NLP’s total balance sheet AuM), c overed by NAM’s reporting and targets. They are also funds provided by external asset managers, single equities, and other instruments (6% of NLP’s total balance sheet AuM). The distribution of non-Nordea funds is governed by Nordea’s Responsible Investment Distribution Policy. MSCI also includes emission factors based on estimated models for 2022 data (with a data quality score of 4). NLP uses the most recent data available, i.e. 2022 data. While NAM uses the PCAF emission factors included in MSCI data, i.e. 2021 data, Group Treasury uses emission factors taken directly from the PCAF database. NLP’s financed scope 1, 2 and 3 emissions have increased since the end of 2024, mainly due to capital allocations across economic sectors, in particular alloca - tions to the basic materials sector. The increase in scope 3 financed emissions for NAM was primarily driven by a significant increase in scope 3 emissions within the con - sumer cyclical segment. A contributing factor here was significantly higher scope 3 emissions estimates for many companies within the automotive sector. Financed emissions Nordea Asset Management Financed emissions (tCO2e)1 2025 2024 2023 Investee scope 1 and 2 emissions Investee scope 3 emissions Investee scope 1 and 2 emissions Investee scope 3 emissions Investee scope 1 and 2 emissions Investee scope 3 emissions Basic materials 2,635,506 8,299,242 2,162,997 7,553,948 2,112,856 7,092,425 Communications 179,860 1,568,890 177,432 1,831,864 136,795 1,354,377 Consumer, cyclical 565,120 26,312,582 441,775 16,696,480 438,778 14,103,682 Consumer, non-cyclical 545,968 8,153,735 620,314 8,033,225 557,687 6,853,093 Energy 406,974 4,473,151 391,282 3,919,631 431,257 4,434,306 Financials 113,137 7,202,072 123,283 7,600,147 96,158 5,468,552 Industrial 2,100,814 14,067,019 2,585,218 11,119,139 2,055,177 10,523,113 Technology 267,582 2,567,985 175,212 1,973,182 206,334 1,967,335 Utilities 1,745,973 3,849,930 2,188,188 3,945,719 2,336,505 3,441,622 Diversified 20,616 54,152 18,441 38,526 27,859 33,226 Other 158,190 1,592,217 53,764 591,263 87,933 854,535 Listed equities 6,703,492 54,637,365 6,220,745 40,344,689 5,682,747 38,531,863 Corporate bonds 2,036,250 23,503,611 2,717,162 22,958,434 2,804,593 17,594,403 Total listed equities and corporate bonds 8,739,742 78,140,976 8,937,907 63,303,123 8,487,339 56,126,266 1) F or scope 3 emissions, we prioritise estimated emissions over reported emissions. This is to minimise the risk of under-reporting, as many companies fail to disclose emis- sions for material scope 3 categories. The average PCAF data quality score for these scope 3 emissions was 3.9 in 2025. ===== SIDA 146 ===== Nordea Annual Report 2025 145 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Financed emissions Nordea Life & Pension 2025 2024 2023 Financed emissions (tCO2e) Investee scope 1 and 2 emissions Investee scope 3 emissions Investee scope 1 and 2 emissions Investee scope 3 emissions2 Investee scope 1 and 2 emissions Investee scope 3 emissions2 Basic materials 687,471 1,550,230 319,733 1,033,611 400,713 884,115 Communications 40,286 492,217 24,391 386,261 18,005 252,411 Consumer, cyclical 110,304 5,567,094 64,919 2,955,879 51,573 3,368,685 Consumer, non-cyclical 120,740 2,107,237 90,284 1,350,429 89,822 1,199,871 Energy 8,213 219,587 3,808 94,354 3,865 56,526 Financials 21,162 1,320,040 13,438 583,232 31,367 565,548 Industrial 365,380 11,160,713 274,100 5,569,195 226,406 3,506,941 Technology 57,793 333,786 27,604 230,122 44,348 390,849 Utilities 199,598 747,328 210,101 655,571 208,346 533,201 Diversified 425 11,954 463 214 171 189 Other 2,701 69,089 281,345 3,256 113,142 1,167,625 Directly held real estate 5,890 2,088 8,260 2,878 9,872 2,111 Listed equities 1,331,239 19,587,721 948,839 10,484,480 881,374 10,150,641 Corporate bonds 282,836 3,991,555 361,348 2,377,645 306,386 1,775,319 Total listed equities and corporate bonds 1,614,074 23,579,276 1,310,187 12,862,124 1,187,760 11,925,960 Directly held real estate1 5,890 2,088 8,260 2,878 9,872 2,111 1) Sc ope 3 figures reflect emissions from tenants’ energy consumption. Embodied carbon is not included. 2) Sc ope 3 emissions for 2023 and 2024 have been restated due to a methodological change to improve data quality. Sovereign debt financed emissions 1 2025 2024 2023 Exposure (EURm) Counterparty scope 1 incl. LULUCF (tCO2e) Counterparty scope 1 excl. LULUCF (tCO2e) Exposure (EURm) Counterparty scope 1 incl. LULUCF (tCO2e) Counterparty scope 1 excl. LULUCF (tCO2e) Exposure (EURm) Counterparty scope 1 incl. LULUCF (tCO2e) Counterparty scope 1 excl. LULUCF (tCO2e) Nordea Asset Management 20,958 2,838,829 3,115,297 15,856 2,748,855 2,994,322 14,536 3,122,497 3,373,869 Nordea Life & Pension 2,834 369,371 389,604 2,552 322,308 348,785 2,486 379,464 398,943 Group Treasury 12,185 2,284,761 1,981,082 12,809 2,266,835 2,583,002 10,048 1,922,585 2,195,011 Total 35,978 5,492,961 5,485,984 31,216 5,337,998 5,926,109 27,070 5,424,546 5,967,823 1) In ac cordance with the PCAF Standard, this asset class includes sovereign bonds and sovereign loans of all maturities issued in domestic or foreign currencies. Other types of sovereign debt, such as cash, foreign exchange and derivative (repo) transactions, are not included. Moreover, the figures do not include debt issued by sub-sovereign entities and agen- cies, such as state-owned development banks. ===== SIDA 147 ===== Nordea Annual Report 2025 146 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Average PCAF data quality (DQ) and portfolio coverage (PC) 2025 2024 2023 Scope 1 and 2 Scope 3 Scope 1 and 2 Scope 3 Scope 1 and 2 Scope 3 DQ (1–5) PC (%) DQ (1–5) PC (%) DQ (1–5) PC (%) DQ (1–5) PC (%) DQ (1–5) PC (%) DQ (1–5) PC (%) Nordea Asset Management Listed equities 2.0 100 4.0 100 2.1 100 3.9 100 2.1 100 3.9 100 Corporate bonds 1 2.1 92 3.9 92 2.1 91 3.8 91 2.1 88 3.8 88 Sovereign debt (scope 1 excl. LULUCF) 2 1.1 100 1.2 98 1.4 99 – – Nordea Life & Pension Listed equities 3 2.0 99 2.1 99 2.6 98 2.3 99 2.1 98 2.3 93 Corporate bonds 3 2.3 79 2.5 79 2.2 73 2.6 74 2.1 44 2.3 44 Directly held real estate 4 2.0 100 2.0 100 2.0 100 2.0 100 2.0 100 2.0 100 Sovereign debt (scope 1 excl. LULUCF)5 4.0 98 – – 4.0 98 – – 4.0 96 – – Group Treasury Sovereign debt (scope 1 excl. LULUCF) 5 4 100 – – 1 100 – – 1 100 – – 1) The por tfolio coverage figures for scope 3 in 2023 and 2024 have been restated. In the 2024 Annual Report the stated coverage for both years was 100%. 2) The por tfolio coverage figure for sovereign debt in 2023 has been restated. In the 2024 Annual Report the stated coverage was 98%. 3) The da ta quality scores and portfolio coverage figures for scope 3 for listed equities and corporate bonds in 2023 and 2024 have been restated due to a methodological change to improve data quality. 4) The por tfolio coverage figures for directly held real estate in 2023 and 2024 have been restated to 100% due to a data error. 5) NLP used the most recent data available for the 2023–25 calculations, while Group Treasury used the most recent data available for the 2025 calculation. In the case of sovereign bonds, this is estimated data, not country-reported data. Listed equities and corporate bonds Carbon footprint (tCO2e/EURm invested)1 2025 2024 2023 Nordea Asset Management Listed equities 34 36 40 Corporate bonds 20 29 33 Total listed equities and corporate bonds 29 34 37 Nordea Life & Pension Listed equities 33 29 37 Corporate bonds 32 48 62 Directly held real estate 2 3 4 Total listed equities, corporate bonds and directly held real estate 31 32 38 1) The da ta quality and portfolio coverage for the listed equities and corporate bonds carbon footprints are described in the table “Average PCAF data quality (DQ) and portfolio coverage (PC)” above. Weighted average carbon intensity 1 Weighted average carbon intensity1 2025 2024 2023 Nordea Asset Management (tCO2e/EURm in revenue)2 Listed equities 83 93 107 Corporate bonds 34 45 48 Total listed equities and corporate bonds 66 76 84 Nordea Life & Pension (tCO2e/EURm in revenue)3 Listed equities 59 68 78 Corporate bonds 55 87 86 Total listed equities and corporate bonds 58 72 80 1) ”Revenue” refers to the weighted average of investee company revenues. 2) NAM por tfolio coverage was 97% in 2025, 97% in 2024 and 96% in 2023. 3) NLP portfolio coverage was 95% in 2025, 75% in 2024 and 87% in 2023. ===== SIDA 148 ===== Nordea Annual Report 2025 147 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Methodology for financed emissions Our methodology for estimating financed emissions is mainly based on the PCAF Standard, but also applies certain deviations and own methods to meet the specific character- istics of our lending portfolio. We are continually reviewing and updating the methodology, which is approved on an annual basis by the Asset & Liability Committee. To ensure the transparency of the financed emissions estimates, we assess the data using the PCAF scoring sys- tem. The scores range from 1 to 5, with 1 corresponding to the most accurate data (audited and directly reported cus- tomer and investee data) and 5 to the most uncertain data (estimated data). For the 2025 reporting of financed emis- sions, estimates across all asset classes in the lending and investment portfolios were based on 2025 or earlier finan- cial data and on 2024 or earlier emissions data, depending on the latest available information from customers and investees. Asset class Emissions data sources Methodology summary Business loans • Customer-reported emissions data • External vendors • PCAF emission factor database • Poseidon Principles, IMO strategy for the shipping sector • Own green production proxy • Own oil and gas exploration and production proxy Financed emissions are calculated in accordance with Part A of the PCAF Standard. Deviations and own approaches • For sectors where relevant external data exists, we adjust the static PCAF Database emission factors from the year 2015 to reflect the average changes in emissions over time and gross value added within the sector in our region. This adjustment enables us to estimate emissions in the lowest data quality category more precisely, aligning with actual societal trends. • For the power production sector, we apply a green production proxy for fully renewable energy producers that do not report emissions, based on information from the Intergovernmental Panel on Climate Change (IPCC) and the United Nations Economic Commission for Europe (UNECE). We have estimated that these customers can generate 5gCO2/kWh, which has led to an improvement in the data quality score, from 5 to 3. • Shipping is included within the business loan asset class and the calculation of financed emissions is based on the Danish CO2 model. • We apply our own dynamic proxy for shipping vessels and offshore vessels that do not follow the Poseidon Principles. The proxy uses emissions per nautical mile from the actual vessel fleet that we finance. The customers’ operating costs are considered, so financed emissions are based on the actual operational activity of the customers/vessels. • We apply our own proxy for oil and gas exploration and production companies without reported scope 3 emissions. In 2019 and 2022 we used internal estimates based on applicable combustion-related emission factors from regional peers and production data and assessed these as having a data quality score of 3. The “project finance” PCAF asset class is embedded within business loans and unlisted equities. Motor vehicles • PCAF emission factor database • Emissions data for passenger cars, vans and heavy-duty vehicles from external vendors Financed emissions are calculated in accordance with Part A of the PCAF Standard. Deviations and own approaches Financed emissions from motor vehicles include lending and leasing, with the same methodology applied. This is because customers always gain possession of the vehicle after the short lease term. Residential real estate and commercial real estate • PCAF emission factor database (2018 emission factors) • EPC labels • International Energy Agency emission factors for energy sources • District heating emission factors from the energy agency or national statistics bureau in Denmark, Finland, Norway and Sweden Financed emissions are calculated in accordance with Part A of the PCAF Standard. Deviations and own approaches • We have chosen to treat EPCs that have expired within the past five years as valid and give them a data quality score of 4. We believe this provides a better estimate of financed emissions from properties with expired EPCs than the PCAF proxy does. • An internal proxy is applied for financed emissions from commercial real estate with a data quality score of 5 in order to close the information gap on physical emission intensity. • Financed emissions from tenant-owner associations (TOAs) are also estimated and included in residential real estate as TOAs are mainly used for residential purposes. Listed equities and corporate bonds • External vendors Financed emissions are calculated in accordance with the Part A of the PCAF Standard. Deviations and own approaches • NAM listed equities and corporate bonds include covered bonds and green bonds. • NLP listed equities and corporate bonds include green bonds and a portion of covered bonds. Directly held real estate • Primary data on direct fuel use, purchased electricity and heating, and tenant energy consumption • Emission factors as available GHG emissions from NLP directly held real estate are estimated in accordance with the GHG Protocol. The emissions are systematically collected through accurate data on direct fuel use (scope 1), purchased electricity and heating (scope 2) and tenant energy consumption (scope 3). The best available emission factors are applied to calculate total emissions. Sovereign debt • PCAF emission factor database • External vendors Financed emissions are calculated in accordance with Part A of the PCAF Standard. MSCI data is used for sovereign debt emissions for NLP and NAM. MSCI data is aligned with the 2021 PCAF emission factors database (which has a data quality score of 1 according to the PCAF Standard). MSCI also includes emission factors based on estimated models for 2022 data (with a data quality score of 4). NLP uses the most recent data available, i.e. 2022 data. While NAM uses the PCAF emission factors included in MSCI data, i.e. 2021 data, Group Treasury uses emission factors taken directly from the PCAF Database. ===== SIDA 149 ===== Nordea Annual Report 2025 148 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Methodology for the operational carbon footprint The GHG emissions calculations for our operational car- bon footprint include emissions from our consolidated entities. The calculation for scope 1 emissions covers mobile combustion from leased cars and stationary com- bustion from diesel generators. The calculation for scope 2 covers purchased electricity, heating and cooling. The cal- culation for scope 3 partially covers the following GHG Protocol categories (reported activities/emission sources for each category are presented in parentheses): category 1: purchased goods and services (including postal services; paper and water consumption); category 2: capital goods (solar panel systems installed); category 3: fuel and ener- gy-related activities not included in scope 1 or scope 2 (the production of energy carriers); category 5: waste gener- ated in operations (waste; waste and water management); and category 6: business travel (air travel, taxi use, the use of employees’ own cars for business travel purposes, and hotel accommodation). Other activities and scope 3 cate- gories are excluded for 2025 to align with our target scope. The significant scope 3 categories assessment and report- ing boundaries will be revisited in 2026 as part of our pro- cess to review the target, its scope and our associated actions for our 2026–30 strategy period. The calculations follow the quantification of GHG emissions by multiplying activity data by emission factors and relevant global warming potentials (GWPs). All emissions are stated in tonnes of CO2e. The calculations cover the relevant GHGs (CO2, CH4 and N2O), and the applied GWPs based on the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (AR5) (2014) are CO2 – 1, CH4 – 28 and N2O – 265. The emission factors per source are provided in the table to the right. The total GHG emissions (market-based) from our own operations were 29,630tCO2e for 2025. The table to the right details the sources included in our operational footprint calculation, which follows the GHG Protocol guidance. Operational carbon footprint emissions sources Source of emissions Year Emission factors used Diesel generators (scope 1: stationary combustion/scope 3, category 3) 2025 Energy Institute (EI) 2025 Statistical Review of World Energy; Swedish Environmental Protection Agency (EPA) 2025; UK Department for Energy Security & Net Zero (DESNZ) Greenhouse gas reporting: conversion factors 2025 2024 As above (2024 editions) 2019 As above (2019 editions) Leased cars (scope 1: mobile combustion/scope 3, category 3) 2025 Swedish EPA 2025; European Commission Joint Research Centre Data Catalogue 2025; International Energy Agency (IEA) Emissions Factors 2025; UK DESNZ Greenhouse gas reporting: conversion factors 2025 2024 As above (2024 editions) 2019 As above (2019 editions) Electricity (scope 2/scope 3, category 3) 2025 GHG Protocol 2024; IEA Emissions Factors 2025; EI 2025 Statistical Review of World Energy; Association of Issuing Bodies (AIB) European Residual Mixes 2024; European Commission Joint Research Centre Data Catalogue 2025 2024 As above (2024 editions) 2019 As above (2019 editions) Heating (scope 2/scope 3, category 3) 2025 IEA Emissions Factors 2025; AIB European Residual Mixes 2024; European Commission Joint Research Centre Data Catalogue 2025; Ecoinvent 2025; UK DESNZ Greenhouse gas reporting: conversion factors 2025; GHG Protocol 2024; Statistics Norway 2025; Finnish Energy Authority 2025; Danish District Heating Association 2025; Swedish EPA 2025 2024 As above (2024 editions) 2019 As above (2019 editions) Cooling (scope 2/scope 3, category 3) 2025 IEA Emissions Factors 2025; AIB European Residual Mixes 2024; GHG Protocol 2024; Stockholm Exergi 2025; Helen 2025; Ecoinvent 2025 2024 As above (2024 editions) 2019 As above (2019 editions) Postal services (scope 3, category 1) 2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025 2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024 2019 UK Department for Business, Energy & Industrial Strategy (BEIS) Greenhouse gas reporting: conversion factors 2019 Paper and water consumption (scope 3, category 1) 2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025 2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024 2019 UK BEIS Greenhouse gas reporting: conversion factors 2019 Waste (scope 3, category 5) 2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025 2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024 2019 UK BEIS Greenhouse gas reporting: conversion factors 2019 Air travel and taxi use (scope 3, category 6) 2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025; PCAF emission factors 2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024; PCAF emission factors 2019 UK BEIS Greenhouse gas reporting: conversion factors 2019; PCAF emission factors Own car use (scope 3, category 6) 2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025; PCAF emission factors 2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024; PCAF emission factors 2019 UK BEIS Greenhouse gas reporting: conversion factors 2019; PCAF emission factors Hotel accommodation (scope 3, category 6) 2025 Cornell Hotel Sustainability Benchmarking (CHSB) Index 2023 2024 CHSB Index 2023 2019 CHSB Index 2019 ===== SIDA 150 ===== Nordea Annual Report 2025 149 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. Facilitated emissions Investment banks serve as important intermediaries in the financial ecosystem, linking issuers with investors and facil- itating transactions that are vital for the effective function- ing of capital markets. Due to the important role we play in facilitating financing through our investment banking activities, we are now reporting our facilitated GHG emis- sions. This follows the publication of the PCAF Facilitated Emissions Standard, which provides detailed methodologi- cal guidance for facilitated emissions accounting. In 2025 we facilitated over 600 transactions across diverse markets. We estimate that facilitated emissions for bond transactions arranged by us amounted to 156 ktCO2e in 2025. Here, we were guided by the PCAF Facilitated Emissions Standard, which excludes, for example, green bonds and sovereign bonds. The largest share of these facilitated emissions related to the healthcare sector. The average facilitated emission intensity for the portfolio was low due to facilitation for industries with modest emis- sions from own operations, such as financial services. Facilitated emissions attributed to us are calculated using the methodology outlined in PCAF Global GHG Accounting and Reporting Standard Part B: Facilitated Emissions. In our 2025 reporting, and in line with PCAF guidelines, our pub- lished facilitated emissions cover primary markets (new issu- ances), but not secondary markets or the trading of existing capital market instruments. In addition, only the portion of primary issuances that are actually facilitated by us are in scope for the facilitated emissions calculations. Figures are included for all our active facilitator roles in a deal. The facilitated emissions table below includes new pub- lic debt issuances facilitated during the reporting year that meet these criteria. The issuer in our methodology is a cor- porate entity. Facilitated equity and syndicated loans are not yet accounted for. Sovereign entities, supranational entities, agency issuers, securitised products, covered bonds, green bonds and commercial paper are excluded from the scope. Emissions are calculated using the formula outlined by the PCAF, and using a 33% weighting and the transaction volume over one year (2025). For deal data, we use Bloomberg. We source emissions data from the same source used for financed emissions in the lending portfolio. Within the corporate space, the sectors in scope are the same as for financed emissions. In 2025 the total facilitated debt amount in scope was EUR 19bn and total facilitated counterparty scope 1 and 2 emissions amounted to 156 ktCO2e. Only 12% of the facili- tated amount in scope was in climate-vulnerable sectors, while these sectors accounted for 19% of the total facili- tated counterparty scope 1 and 2 emissions. Going forward, we will work towards improving the data quality scores for our facilitated emissions disclosures. Facilitated emissions 2025 Sector Facilitated amount (EURm)1 Counterparty scope 1 and 2 (tCO2e)2 Counterparty scope 3 (tCO2e)2 Overall data quality score scope 1 and 23 Overall data quality score scope 3 Climate-vulnerable sectors 2,315 30,299 200,587 4.9 4.0 Other sectors 16,667 125,361 806,985 4.9 4.9 Total 18,982 155,660 1,007,573 4.9 4.8 1) Debt capital market volumes. 2) Based on a 33% weighting following the PCAF Standard . 3) Overall data quality scores are weighted by facilitated amount. ===== SIDA 151 ===== Nordea Annual Report 2025 150 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E1 Climate change, cont. GHG removals and GHG mitigation projects financed through carbon credits Emissions removals in our own operations Despite our efforts to limit our operational carbon foot- print, some emissions remain difficult to reduce. We have therefore purchased carbon offsets for all emissions from our own operations within the current target scope. Up until 2023, we supported the generation of renewa- ble energy through the purchase of avoided emissions credits, meaning that greenhouse gas (GHG) emissions reduction projects accounted for 100% of our offsetting. These credits were issued outside the European Union and were verified against the Verra Verified Carbon Standard (83%) and the Gold Standard (17%) in 2023. In 2024 we revised our offsetting strategy and switched from purchasing avoided emissions credits to building a long-term emissions removal portfolio. Our revised offset- ting strategy is based on the following guiding principles. • We will cut own emissions by at least 90–95% by 2050, use high-quality offsets for residual emissions and regu- larly revise our offsetting strategy as best practice evolves. • We will follow a high-ambition path to net zero for our own operations and related offsetting strategy. • We will shift from emissions avoidance to emissions removals with long-lived storage and a low risk of release back into the atmosphere. • We will support the development of net-zero-aligned offsetting in our engagement with stakeholders. • We will align our offsetting strategy with the Corporate Sustainability Reporting Directive (CSRD) criteria, the Oxford Principles for Net Zero Aligned Carbon Offsetting and relevant guidance from the United Nations Environ- ment Programme Finance Initiative. Our aim for the future is for all our carbon credits to come from removal projects, preferably high-quality projects within the Nordic region. We will periodically review our offsetting strategy and gradually cover more and more of our estimated GHG emissions to support the achievement of net-zero emissions by 2050. To the same end, we have committed to reduce the carbon emissions from our own operations within the current target scope by more than 50% by the end of 2030 and make a net positive carbon contribution (through offsetting). This means that by the end of 2030 our emissions removal credits will exceed emissions from our own operations. The switch to emis- sion removal credits entails a higher cost per tCO2e for our operational emissions. This cost is increasingly being inter- nalised, with the aim of speeding up, rather than imped- ing, the reduction of our GHG emissions. Our first, five-year offtake agreement for emission removal credits was developed with Inherit Carbon Solutions in 2024 and signed in 2025. The agreement cov- ers a total minimum commitment of 68,428 tCO2e in high-permanence removal credits from a Danish biogas facility with a carbon capture and geological storage site in the North Sea (bioenergy with carbon capture and stor- age, BECCS). The first removal credits from this project are planned to be generated and cancelled in 2026. Given that the first emissions removals have not yet been generated, there are no reversals at this point in time. These first emissions removal credits will be verified against the Puro Standard Geologically Stored Carbon methodology for CO2 removal, and will all be issued from within the European Union (EU). The durability for geologically stored carbon is high and the risk of non-permanence is low as the storage provider is committed to managing and monitoring poten- tial leakage and reversal events. The percentage of gener- ated credits that will be authorised as internationally transferred mitigation outcomes, subject to corresponding adjustment by the host country Denmark, is still unknown. This will be included in future disclosures. Types of carbon credits cancelled 2023 2024 2025 Emissions removals (tCO2e) – – – Nature-based – – – Technology-based – – – Avoided emissions (tCO2e) 18,155 3,372 17,000 Total (tCO2e) 18,155 3,372 17,000 Volume and shares of carbon credits cancelled 2023 2024 2025 Total (tCO2e) 18,155 3,372 17,000 Share from removal projects – – – Share from reduction projects 100% 100% 100% Clean Development Mechanism 100% – – Verra Verified Carbon Standard – – 100% Gold Standard – 100% – Share from projects within the EU – – – Carbon credits planned to be cancelled in the future amount up to and incl. 2030 Total (tCO2e) 68,428 Emissions removals in our portfolios Our internal methodology for financed emissions removals accounting was approved in 2024. We have concluded that there is a lack of available data for financed emissions removals and there are inconsistencies in the removal data currently available. Therefore, financed emissions removals are not included in our reporting for 2025. We expect more and more companies to start reporting on emissions remov- als due to the CSRD requirements and companies’ net zero commitments. We will continue to assess the availability and quality of data for reporting financed emissions removals in the near future. ===== SIDA 152 ===== Nordea Annual Report 2025 151 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other ENVIRONMENT INFORMATION E4 Biodiversity and Ecosystems Nature is the foundation of a resilient economy and financial stability, and issues connected to nature and biodiversity are accordingly high on our agenda from an impact, risk and opportunity perspective. To address the growing threat of biodiversity loss and eco- system degradation, we are engaging with stakeholders to build awareness and support transition within the area of nature and biodiversity. There is more and more evidence that short-term warming and more frequent, severe and prolonged extreme events as climate change progresses will likely place many terrestrial, freshwater, coastal and marine eco- systems across the globe at high or very high risk of bio- diversity loss. Major global economic implications are expected if “planetary boundary” tipping points, triggered by temperature increases and environmental degradation, are reached. Our work related to nature and biodiversity is based on the capacity we have built in this area in recent years – capacity which we continue to develop. In 2025, for example, we piloted a biodiversity footprint and eco- system dependency tool to increase our understanding of biodiversity impacts and related risks and opportunities in a more granular and quantified way. As a financial services provider, we seek to support the preservation and restoration of nature through our financing. To this end, in 2025, we expanded our green funding frame- work to cover activities specifically addressing biodiversity. Going forward, we will engage with large corporate customers in high-impact sectors to use and increase our expertise regarding nature-related risks and opportunities, supported by our 2030 dialogue targets. We will also con- tinue developing our data assessment capacity, connect- ing with customers on matters related to nature and exploring financial opportunities in this area. Key projects qualifying for biodiversity financing Third-party-certified conventional farming meeting strict biodiversity criteria Terrestrial and aquatic conservation projects that create biodiversity credits Remedial projects in shipping, e.g. noise pollution reduction technology and dynamic route planning systems 95% of assets in NLP’s listed equity and corporate bond portfolios managed by members of a global biodiversity initiative 9 high-impact sectors in scope for targeted engagement on nature under our 2030 sustainability strategy 2028 target By the end of 2028, engage in dialogues on biodiversity with customers representing ≥80% of our large corporate lending exposure in relevant sectors with a high impact on nature ===== SIDA 153 ===== Nordea Annual Report 2025 152 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E4 Biodiversity and ecosystems, cont. Impacts, risks and opportunities overview for E4 Biodiversity and ecosystems Impact, risk or opportunity Title Value chain Time horizon Direct impact drivers of biodiversity loss Negative impact (actual) Contribution to biodiversity loss resulting from pollution and land, freshwater and sea use change Risk Biodiversity-related transition risks Impacts on the state of species Negative impact (actual) Contribution to biodiversity loss resulting from impacts on the state of species V ery long term Shor t term Medium t erm L ong term Upstream Own oper ations Downstream In this section We focus on how we manage the impacts of our busi- ness activities on biodiversity and ecosystems, and how we manage the associated transition risks. We look at the material impacts and risks identified in our double materiality assessment, explaining why they are rele- vant for our strategy and business model and how we are addressing them – through our policies, actions and targets. Material impacts and risks and their interaction with strategy and business model Matters concerning biodiversity and ecosystems are directly relevant for our strategy and business model. In acknowledgement of the growing strategic impor- tance of addressing biodiversity- and ecosystem-related impacts, risks and opportunities, one of the new sustaina- bility themes embedded in our business strategy is nature. Our business model could be materially impacted by nature-related effects, for example through decreases in credit quality or in the value of collateral securing our lending, or new financing opportunities related to activi- ties which reduce negative impacts on biodiversity loss or the state of species, especially in the very long term. Identified material biodiversity- and ecosystem-related impacts, risks and opportunities will inform future biodiversity target setting, decision-making regarding our business model, and actions supporting our nature-related transition plan. Impact materiality Our impact materiality assessment under the double materiality assessment (DMA) was based on analysis of financial exposures, extensive literature reviews, and expert judgement. It was supported by use of the ENCORE tool, which helps financial institutions and companies understand how their activities both depend on and impact nature. The literature reviewed included extensive scientific and policy assessments of how the agriculture, forestry, and fishing and aquaculture sectors drive bio- diversity loss and affect the state of species. In addition to these three sectors, we identified the real estate and con- struction sectors as significant where nature-related impacts are concerned. Based on our portfolio composi- tion and the proportionally large contribution of the five aforementioned sectors to drivers of biodiversity loss, we concluded that biodiversity and eco sys tems are material for us from a lending perspective. The relevant drivers of biodiversity loss include pollution; land, freshwater and sea use change; and use of natural resources. The impacts and dependencies of our site locations on biodiversity and ecosystems were assessed to be immate- rial and our own operations were not considered to affect threatened species. The affected communities were there- fore not consulted on these matters. Risk materiality Our risk materiality assessment under the DMA focused on how biodiversity- and ecosystem-related hazards could act as drivers of financial and non-financial risks for us over time and across geographies, industries and business areas. It was conducted across portfolios, countries and risk categories and considered the short-, medium-, long- and very long-term time horizons. The risk materiality assessment process drew on our internal capital and liquidity adequacy assessment process (ICLAAP) framework and its risk materiality banding sys- tem, which considers risk in terms of potential losses rela- tive to our Common Equity Tier 1 capital. The analysis was both qualitative and quantitative, and was based on our taxonomy of nature-related risk factors and hazards. It integrated extensive literature reviews, expert consulta- tions and heat maps, and was done internally, without the involvement of external stakeholders. In 2025 we worked to improve our methodology so we could better capture risks arising from our value chain. We also deepened our sectoral analysis. The risk materiality assessment considered risks stem- ming from impacts on biodiversity or transition risks, and risks stemming from dependencies on ecosystem services or physical risks. In our transition risk analysis we consid- ered a range of risk drivers, including regulatory, technol- ogy, societal, customer and demographic changes, as well as the competitive landscape, and legal and reputational effects. We identified biodiversity-related transition risks as material for us. These risks, which are mainly driven by regulatory changes aimed at halting and reversing nature degradation, could have a material impact on our credit, operational and business model risks. Direct and material impact drivers of biodiversity loss include climate change; land, freshwater and sea use change; and the direct exploitation of species. In contrast to our risk materiality assessment for 2024, we deemed risks stemming from the degradation of eco- systems not to be material, mainly due to methodological ===== SIDA 154 ===== Nordea Annual Report 2025 153 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E4 Biodiversity and ecosystems, cont. updates and the fact that we have limited exposure to sec- tors in our Nordic home markets where this risk is ele- vated. However, we recognise that risks related to nature degradation tend to emerge only in the long term and that there is high uncertainty associated with assessing ecosys- tem risks, due in part to the complexity of quantifying these risks in the value chain. We assessed credit risk to be the risk category most impacted by biodiversity-related transition risk. This risk stems mainly from our counterparties via our financing activities. Credit quality deterioration and collateral deval- uation are examples of transmission channels through which biodiversity-related transition risk drivers can impact credit risk. The risk was identified to be elevated for certain parts of our lending portfolio, for example our lending to the agriculture, forestry, materials and construc- tion sectors, which are prone to biodiversity-related transi- tion risk. It could materialise across all time horizons as society takes measures to protect nature. Operational risk was assessed to be another impacted risk category. Biodiversity-related risk drivers could impact operational risk through litigation and reputational risk linked to greenwashing; increased regulatory require- ments; and financial disclosure risk. We also assessed business model risk to be impacted. Business model risk stemming from biodiversity-related transition risk could arise due to the composition and nature of the assets we have on our balance sheet, espe- cially over the longer term. If we were to adopt an inap- propriate long-term strategy, this risk could materialise via credit losses and reduced lending opportunities. Transition plan and consideration of biodiversity and ecosystems in strategy and business model During the period 2022–25 we began to progressively incorporate biodiversity into our business in order to help reduce negative impacts on, and promote the protection and restoration of, biodiversity and ecosystems. Nature is a key theme under our 2030 strategic sustainability priori- ties, and as part of our nature-related transition plan, we aim to further improve our understanding, quantification and management of impacts and dependencies and asso- ciated risks and opportunities. Each year, we assess biodiversity- and ecosystem-re- lated physical and transition risks as part of our bank-wide materiality assessment (MA) of climate and environmental risks and our business environment scanning (BES) of cli- mate and environmental risks. The insights and conclusions from these assessments enable us to make informed stra- tegic decisions regarding business plans and internal pro- cesses. They also help us identify and track relevant moni- toring indicators so we can adjust to changes in our busi- ness environment in a timely manner. More information on the MA can be found on page 93 in “General information” and page 112 in “E1 Climate change”. The BES is described in more detail on page 115 in “E1 Climate change”. Our MAs have helped increase our understanding of nature and biodiversity, enabling us to form clearer posi- tions on these topics and integrate them into internal information and knowledge sharing, polices, guidelines and internal rules. We have also continued to actively par- ticipate in financial sector initiatives and research collabo- rations to forward the field. In 2023 we set practice targets to build internal compe- tence and capacity in relation to biodiversity and ecosys- tems as part of our commitment to the UNEP FI Principles for Responsible Banking. The targets were to assess the biodiversity-related impacts, dependencies, risks and opportunities associated with our lending, internal opera- tions and supply chain in 2024. The targets were met, with the assessment findings reported in our 2024 Sustainability Statement. Comprehensively assessing and quantifying the indirect effects of nature-related risk drivers stemming from our financing remains challenging as the methodological approach and data for measuring such effects are still under development. In 2025 we continued to build on our capabilities to quantify biodiversity- and ecosystem-related impacts, risks and opportunities to support our evolving strategic response and risk management. In line with the results of the double materiality assessment (DMA), we focused on our downstream value chain. The level of matu- rity reached enabled us to integrate biodiversity and eco- systems into our 2030 business strategy. Going forward, a focus will be to use our expertise to help make the nature agenda financeable. To better understand our customers’ approach to bio- diversity and ecosystems, we will engage in dialogues with large customers in high-impact sectors in the period 2026–28. This will also help us build competence inter- nally and strengthen our customers’ ability to understand risks, opportunities and dependencies, thereby supporting the development of biodiversity transition plans. Policies related to biodiversity and ecosystems The table below provides a comprehensive overview of our policies related to biodiversity and ecosystems. Unless otherwise stated, the scope of the policies and guidelines is global in geographical terms and includes our upstream value chain, own operations and down- stream value chain. The thematic and sector guidelines acknowledge the link between human rights and biodiver- sity and ecosystems. We have initiated work to gather all sustainability- related guidance under a sustainability sector and thematic framework. This will include thematic guidelines, positions (such as a forthcoming deforestation position), and sector guidelines. As our sector and thematic guidelines and responsible investment policies were developed before the CSRD-compliant DMA was introduced, their relationship to material impacts, dependencies, risks and opportunities identified through the DMA process is indirect. Going for- ward, we will ensure that ESG-related policies, positions and sector guidelines are grounded in the outcomes of our DMA process and other relevant analysis, reflecting a robust, evidence-based approach to managing ESG risks and opportunities. In 2025 we revised our sector guidelines for the mining, real estate, defence, and fossil fuel-based industries, with the updated versions to be published in 2026. Our guidelines for food production (formerly agricul- ture and aquaculture), forestry and shipping are scheduled for revision in 2026. With the exception of the sector guidelines, the internal rules listed in the table below form part of our internal rules framework, for which the Board of Directors is ultimately accountable. Although sector guidelines are not included within the ESG Policy Framework, their development and implementation are mandated by the Board of Directors. The policies/guidelines are all available to external stakeholders at nordea.com. ===== SIDA 155 ===== Nordea Annual Report 2025 154 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E4 Biodiversity and ecosystems, cont. Policy (entity) Relevance to E4 biodiversity and ecosystems Related E4 impacts, risks and opportunities Further details Thematic guideline on biodiversity (Nordea) • Recognises: – all drivers of biodiversity loss, including climate change; land, freshwater and sea use change; direct exploitation; invasive alien species; and pollution – the global importance of biodiversity and our responsibility to contribute to societal targets and goals such as the Kunming-Montreal Global Biodiversity Framework and the EU Biodiversity Strategy for 2030. • Contribution to biodiversity loss • Biodiversity-related transition risks • The guideline forms part of the policy framework overseen by the Group Accountable Executive for ESG risk – the Chief of Staff. • The guideline outlines our commitment to: – assess and address biodiversity-related impacts, dependencies, risks and opportunities – incorporate biodiversity-related considerations into strategy, risk management, governance, stakeholder engagement and offerings over time. Sector guideline for the agricultural industry (Nordea) • Sets expectations for customers and portfolio companies to: – integrate biodiversity into their environmental management planning and decision-making processes – undertake environmental baseline studies and assess the environmental impact of their operations. • As above • The guideline states that companies throughout the supply chain are expected to refrain from engaging in operations in areas covered by international conventions aimed at protecting and supporting biodiversity. These include the UN Convention on Biological Diversity and the Ramsar Convention on Wetlands of International Importance Especially as Waterfowl Habitat. The protected areas include those defined by the International Union for Conservation of Nature. • We do not monitor stakeholder compliance with these expectations. • Read more on page 119 in “E1 Climate change”. Sector guideline for the forestry industry (Nordea) • As above • As above • As above Sector guideline for the real estate industry (Nordea) • As above • As above • As above Sector guideline for the defence industries (Nordea) • As above • As above • The guideline encourages all business relationships to follow international conventions aimed at protecting and supporting biodiversity – including the Kunming-Montreal Global Biodiversity Framework. • We do not monitor stakeholder compliance with these expectations. Sector guideline for the fossil fuel based industries (Nordea) • As above • For both financing and investments, the guideline includes criteria related to drilling in the Arctic, which is assessed to pose significant risks to biodiversity and ecosystems. Our priority is to assess and promote sound management of biodiversity- and ecosystem-related risks in the wider Arctic region. • As above • We do not monitor stakeholder compliance with these expectations. • Read more on page 119 in “E1 Climate change”. Sector guideline for the mining industry (Nordea) • States that we do not provide financing to new or existing customers actively engaging in mountaintop removal mining, which has negative impacts on the extent and conditions of biodiversity and ecosystems. • As above • The guideline states that mining customers are required to adhere to international conventions aimed at protecting and supporting biodiversity. These include the conventions detailed above for the agricultural industry. • Read more on page 119 in “E1 Climate change”. Responsible Investment Policy (Nordea Asset Management) • Concludes that biodiversity loss can pose systemic financial risks across investment portfolios. • As above • The Policy forms part of the policy framework overseen by the Nordea Asset Management Holding Board. • As we invest across a vast array of sectors and geographies, our portfolio is associated with a wide range of biodiversity-related risks and opportunities. • The Policy is complemented by Nordea Asset Management’s white paper on biodiversity and nature, which describes its investment approach to biodiversity and nature, and is republished annually. • Read more on page 119 in “E1 Climate change”. Responsible Investment Policy (Nordea Life & Pension) • Includes expectations for investee companies to: – disclose material biodiversity- and nature-related impacts, dependencies and risks and how these are integrated into their business strategy and risk management – prevent biodiversity loss and aim to be nature positive. • As above • The Policy forms part of the policy framework overseen by the Nordea Life Holding Board, and the boards of directors of the local NLP entities. • Read more on page 120 in “E1 Climate change”. ===== SIDA 156 ===== Nordea Annual Report 2025 155 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other E4 Biodiversity and ecosystems, cont. Actions and resources related to biodiversity and ecosystems We continuously work to mitigate the impacts of biodiver- sity- and ecosystem-related risks on our risk types. We maintain a well-diversified portfolio across and within sec- tors and industries, and manage it in line with our overall risk management procedures, such as our credit policies. We also engage with our customers to support biodiver- sity transition efforts; respond strategically to develop- ments in society; and set and work towards relevant Group-level and sector targets. Where project finance is concerned, we are a signatory to the Equator Principles, which impose requirements to assess risks to and impacts on biodiversity. Moreover, each year, we assess all office locations – new and old – to identify potential impacts on and risks to nature. As an active owner, Nordea Asset Management (NAM) prioritises engagement as the primary mechanism to address nature and biodiversity impact drivers. To this end, NAM is involved in numerous thematic and collaborative engagements. These include Nature Action 100; the Investor Policy Dialogue on Deforestation, which is aimed at addressing the drivers of climate change and land use change; the NAM aquaculture engagement, which is aimed at addressing natural resource use and direct exploitation; and the NAM PFAS engagement, which is aimed at addressing pollution. As Nordea Life & Pension (NLP) invests globally and across a wide range of sectors, its portfolio is naturally exposed to biodiversity-related risks. Recognising the importance of these risks, NLP has started incorporating biodiversity considerations into its due diligence process by assessing if and how external asset managers address bio- diversity in their strategies. In 2025 asset managers man- aging approximately 95% of NLP’s assets in listed equities and corporate bonds were members of one or more of the existing global biodiversity initiatives, such as the Finance for Biodiversity Foundation and Nature Action 100. In the management of its real estate portfolio, NLP assesses how new developments and projects may affect ecosystems and biodiversity and takes steps to manage these impacts. In order to address biodiversity- and ecosystem-related dependencies, impacts, risks and opportunities over time, better data is needed. We are taking a progressive and exploratory approach to addressing the question of data by assessing different metrics and data providers. Our focus is on developing our capacity to quantify dependen- cies, impacts, risks and opportunities stemming from our financing activities, in line with the outcomes of our mate- riality assessments. We do not currently include biodiversity offsets or nature-based solutions in our corporate biodiversity action plans. Nor do we draw on local and indigenous knowledge when planning and taking actions related to biodiversity and ecosystems. We are working to better understand and design actions needed to address our impacts and risks. In the future, we may find it relevant to use nature credits and/or consult with indigenous peoples and local commu- nities in our work. Actions supporting our aims related to biodiversity and ecosystems in 2025 included the following. • Piloting a tool that quantifies the biodiversity footprint and ecosystem dependency of companies and portfolios to assess its usefulness for strategy development, risk management, reporting and disclosures. • Initiating a research and development collaboration with Jyväskylä University in Finland – focusing on assessing the biodiversity footprint of commercial real estate, con- sidering the life cycle of buildings in the Nordic countries. Both this and the aforementioned pilot will enable us to enhance our knowledge regarding data availability, use and limitations and will thus support our evolving approach on this topic. • Expanding our green funding framework to cover activi- ties specifically addressing biodiversity. • (NAM) Republishing NAM’s white paper on biodiversity and nature describing its approach to biodiversity and nature. • (NAM) Working towards fulfilling NAM’s initiation tar- gets in accordance with the commitments made under the Finance for Biodiversity Pledge. • (NLP) Conducting a review of data availability and ana- lytical tools in order to better understand the exposure of NLP’s portfolio to biodiversity-related risks. • (NLP) Completing an assessment of NLP using the ENCORE tool for the first time. The assessment identified materials, utilities, and consumer discretionary as the sectors with the highest impact and/or dependency on nature. Targets related to biodiversity and ecosystems Having built internal expertise and capacity through our practice targets set in 2023, we continue to evolve our approach, aiming for refined quantified data so we can set future targets that are measurable, time bound, and out- come oriented. Specifically, we are further exploring and developing our capacity to quantify the biodiversity- and ecosystem-related impacts, dependencies, risks and opportunities associated with our financing activities. As part of our 2030 strategy, we have set an engage- ment target for the period 2026–28 to learn about and support the biodiversity-related transitions of our large corporate customers in material, high-impact sectors. 2028 Nor dea bank target (relative) NEW By the end of 2028, engage in dialogues on bio­ diversity with customers representing ≥80% of our large corporate lending exposure in relevant sectors with a high impact on nature Target scope The target covers the Large Corporates & Institutions (LC&I) corporate lending portfolio across our four Nordic markets, within relevant sectors. Methodologies The relevant sectors with a high impact on nature were selected based on our double materiality assessment, Business Environmental Scanning reports, external sources and tools (ENCORE, the WWF biodiversity risk filter), and sector analysis. They were assessed to be construction, paper and forest products, materials, power production, shipping, food processing and beverages, fishing and aquaculture, mining and supporting activities, and real estate. As the portfolio is dynamic, the number of customers engaged with may be revised annually in the run-up to 2028. As this is a newly established target, there is currently no performance monitoring status to report. ===== SIDA 157 ===== Nordea Annual Report 2025 156 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other SOCIAL INFORMATION S1 Own workforce As an employer committed to fostering a sustainable workplace, we e nable growth and career development for all, actively support employee well-being, and prioritise diversity and inclusion. We aspire to be the preferred employer in the financial industry in our operating countries and are committed to ensuring Nordea is a place where people want to have a career and can thrive. Enabling growth is key to realising this vision. We pro- vide a wealth of opportunities for career development, and ensure our people have clear paths for growth. In 2025 we launched the first wave of “Career Hub”, an AI-powered learning platform which matches employee skills and aspirations with development opportunities while tracking learning journeys. Our leaders are empowered to create an environment where teams can perform at their best, driving our busi- ness forward while upholding our values: collaboration, ownership, passion and courage. To deliver on our strategic priorities, we identify and address critical competency needs, acquiring necessary skills and mitigating execution risks to build a future-ready workforce. New employee development initiatives focus on essential competency building in areas such as sales, AI tools and sustainability. We prioritise employee well-being through a holistic approach that encompasses proactive, preventive and reac- tive measures. In doing so, we support a sustainable work- place where our employees can flourish both personally and professionally while maintaining a good work-life balance. In all areas of the organisation, we emphasise diversity and inclusion, as we believe varied perspectives and expertise enable us to deliver more innovative solutions and drive positive change. Fostering an environment where everyone feels valued and heard makes our organi- sation stronger and means we can deliver a better service to our diverse customers. Support for diversity and inclu- sion also helps us contribute to the inclusivity and safety of the societies in which we live. We continue to make progress towards fulfilling our commitment to close the adjusted gender pay gap by the end of 2026, having reduced the gap to 1.43% by the end of 2025. Moreover, we have met our 2025 ambition for employee development plan coverage and have seen a substantial increase in the number of senior leadership positions filled by internal candidates. Our efforts are gaining external recognition, with improved Universum rankings reflecting enhanced per- ception of us as an employer among both students and professionals across all our markets. Our culture is deeply rooted in our values, drives our performance, and has been key for our progress. Building a true high-performance culture is something we have been continuously working on over the past six years. Going forward, we will continue these efforts. In our 2026– 30 strategy period we will focus on developing a culture of high performance, proactivity and innovation, supported by technology, talent and transformational leadership. 2022–25 targets Status Ensure that each gender has at least 40% representation at the top three leadership levels combined by the end of 2025 Target met Achieve a minimum average index score of 90 for diversity and inclusion by the end of 2025 89 2030 targets Ensure that each gender has at least 40% representation at the top three leadership levels combined by the end of 2030 Achieve a minimum average index score of 90 for diversity and inclusion by the end of 2030 See “Targets related to own workforce” on page 163 for more information, including our performance against the targets. ~100 nationalities represented among our employees end-2025 gender split among our employees 51% women 49% men ===== SIDA 158 ===== Nordea Annual Report 2025 157 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Impacts, risks and opportunities overview for S1 Own workforce Impact, risk or opportunity Title Value chain Time horizon Working conditions Positive impact (potential) Good working environment Positive impact (actual) Employee well-being Negative impact (actual) Work overload Risk Employee health and well-being Equal treatment and opportunities for all Positive impact (actual) Diverse and inclusive workplace Positive impact (actual) Career development Negative impact (actual) Gender pay gaps Negative impact (potential) Discrimination and inequality Very long term Short term Medium term Long term Upstream Own operations Downstream In this section We focus on how we manage the impacts of our busi- ness activities on our own workforce and how we miti- gate associated risks. We summarise the own work- force-related material impacts and risks identified in our double materiality assessment and explain why they are relevant for our strategy and business model. Then we present our policies that apply across the identified material impacts and risks. We organise the remainder of the section according to how we address the material impacts and risks: engagement processes, remediation processes and channels for raising concerns, and actions. We describe our targets – including our progress against them – and explain how we monitor the effectiveness of our policies and actions. Where relevant, we group the information according to the following sub-topics: • working conditions • equal treatment and opportunities for all. We conclude by presenting key metrics related to our own workforce, which span topics such as characteris- tics of our employees, skills development and remuner- ation, as well as entity-specific metrics. Material impacts and risks and their interaction with strategy and business model Matters concerning our own workforce are directly relevant for our strategy and business model. Own workforce can be connected to inclusive and safe societies, one of the sustainability themes embedded in our business strategy. This is because workforce-related matters such as respect for human and labour rights, equality, fair employment conditions, and equal opportuni- ties for learning and development all contribute towards the safety and inclusivity of the societies in which we live. As a financial services provider, we have a business model based on creating value for customers, employees, investors, shareholders and society in general. Our capac- ity to create value for our stakeholders and provide daily banking services for our customers is dependent in part on a healthy, competent and productive workforce with safe working conditions, now and in the future. Given the relevance of our own workforce for the suc- cess of our strategy and business model, it is vital that we address related material impacts and risks. Our entire workforce, consisting of employees and non-employees of the Nordea Group, was included in the scope of our double materiality assessment (DMA). Those subject to the material impacts identified through the assessment are primarily employees; in some cases, they are non-employees. Employees are people who are in an employment relationship with us. Non-employees are peo- ple working for us through companies primarily engaged in employment activities, such as consultants. Depending on the impact, any employee or non-employee is or could be positively or negatively affected. Where career devel- opment is concerned, employees are positively affected. Where gender pay gaps are concerned, both women and men could be negatively impacted. The risk identified relates to all Nordea employees and arises from our dependence on our workforce. Our main operations are in countries with advanced legal requirements for working conditions, including regu- lations and requirements regarding forced, compulsory and child labour. In addition to meeting these require- ments, our human rights due diligence (covering all oper- ating countries) has not identified any operations at signif- icant risk of incidents of forced, compulsory or child labour. Policies related to own workforce The following table provides a comprehensive overview of our policies related to working conditions and/or equal treatment and opportunities for all. The internal rules listed in the table below form part of our internal rules framework, for which the Board of Directors is ultimately accountable. Unless otherwise stated, the policies are available to all employees on our intranet. Our overarching policy framework for people risk derives from the Group Board Directive on Compliance Risk. The framework covers all policies and guidelines described below, except for the Code of Conduct, the Human Rights Policy and the Guidelines on Business Continuity. The policies and guidelines apply to all Nordea Group employees and non-employees regardless of their con- tract type unless otherwise stated. Moreover, we comply with the local laws and regulations that cover members of our workforce in their respective countries of employment and respect the local collective agreements in place in our operating countries. We have processes in place for creating and updating internal rules, including guidelines for consultation and stakeholder management to ensure the interests of key stakeholders are considered. ===== SIDA 159 ===== Nordea Annual Report 2025 158 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Policy (entity) Relevance for S1 own workforce Related S1 impacts, risks and opportunities Further details Code of Conduct (Nordea) • Outlines the ethical principles for conducting business at Nordea. • Requires us to: – ensure good working conditions through a safe and healthy workplace – uphold labour rights – promote and value diversity and inclusion – maintain a qualified and competent workforce – support and respect human rights. • All • Among other labour rights addressed in the Code, we respect the upper limits for regular working hours and overtime prescribed by the laws of the countries in which we operate. • The Code is available to all external stakeholders at nordea.com. • Read more on page 169 in “S4 Consumers and end-users” and page 177 in “G1 Business conduct”. Human Rights Policy (Nordea) • Details our commitment to provide safe and fair working conditions. • Prohibits the use of forced, bonded, involuntary or child labour in any area of our operations. • Requires us to pay special attention to people who may be disadvantaged, marginalised or excluded from society and who may therefore be particu larl y vulnerable to negative human rights impacts. • All • The Policy is overseen by the Board of Directors. • The Policy outlines our commitment to respect internationally recognised human rights standards and meet the corporate responsibility to respect human rights as defined in the UN Guiding Principles on Business and Human Rights. It does not address human trafficking. • The Policy is aligned with the Universal Declaration of Human Rights and the International Labour Organization’s (ILO’s) Declaration on Fundamental Principles and Rights at Work, to which we adhere, and the UN Global Compact, to which we are a signatory. • Read more on page 169 in “S4 Consumers and end-users”. Occupational Health & Safety (OH&S) guideline (Nordea) • Outlines how we continuously work to ensure a safe and inclusive workplace by promoting health and well-being, ensuring a good working environment, and managing illness and work ability. • Explains the ambition, purpose and scope; concepts; roles and responsibilities; performance indicators; and reporting of this work and the OH&S management system. • Good working environment • Employee well-being • Work overload • The guideline forms part of the policy framework overseen by the Group Accountable Executive (GAE) for people risk – the Chief People Officer (CPO). • The guideline complements and is aligned with local regulation, and is a key document related to working conditions. It covers the employees in our six main operating countries and is also aligned with the European directives on safety and health at work and International Organization for Standardization (ISO) standards 45001 and 45003 to ensure that best practice is adhered to. Guidelines on Business Continuity (Nordea) • Support us in safeguarding our operations; the interests of our customers and other stakeholders; our reputation; and our ability to continue activities, processes and services should an extraordinary event, such as a pandemic, occur. • Employee health and well-being • The Guidelines form part of the policy framework overseen by the GAE for business continuity and crisis management – a member of the GLT. • The Guidelines set out the principles and overall rules for managing business continuity in the Group. This is done through division/unit-specific and Group business continuity plans (BCPs) and liquidity contingency plans (CPs). • The division/unit-specific BCPs support us in resuming essential business operations after a business disruption in accordance with defined recovery time objectives. The Group BCPs are for selected scenarios, for example pandemics. They include pre-defined escalation, coordination and communication protocols for quickly assessing the situation in order to support a clear, consistent and timely flow of communication within the organisation and to customers. They also specify mitigating actions under the different scenarios. Guidelines regarding Equal Opportunities to Parental Leave in Nordea (Nordea) • Make parental leave accessible to all parents. • Diverse and inclusive workplace • Employee well-being • The Guidelines form part of the policy framework overseen by the GAE for people risk – the CPO. • The Guidelines cover the employees in our six main operating countries. Diversity & Inclusion Policy (Nordea) • Sets out how we work to ensure equal treatment and opportunities for all in the workplace. • Focuses on various aspects, such as gender equality; LGBTQ+ inclusion; ability variation; cultural inclusion regarding ethnicity, nationality and religion; age diversity; and equal pay for equal work. • Diverse and inclusive workplace • Discrimination and inequality • Gender pay gaps • The Policy forms part of the policy framework overseen by the GAE for people risk – the CPO. • We maintain a related internal Guideline on Diversity and Inclusion, which applies to our entire workforce. • The Policy is aligned with the Universal Declaration of Human Rights, the ILO’s Discrimination Convention, the Charter of Fundamental Rights of the European Union (EU), EU directives on equal treatment, and local legislation concerning non- discrimination and equality. • The Policy is available to all external stakeholders at nordea.com. Guidelines on Recruitment, Onboarding and Offboarding (Nordea) • Support inclusion and a diverse workforce. • Require us to prevent discrimination and inequality at the recruitment stage by considering all applicants irrespective of gender, gender identity or expression, ethnicity, impairment, sexual orientation, creed or age. • Career development • Diverse and inclusive workplace • Discrimination and inequality • The Guidelines form part of the policy framework overseen by the GAE for people risk – the CPO. • To help ensure a diverse workforce, the Guidelines include a requirement for both women and men to be among the final three candidates for leadership positions. This requirement also supports the achievement of our Group-level gender target, which is presented in more detail on page 163. The Guidelines apply to all employees working at Nordea. ===== SIDA 160 ===== Nordea Annual Report 2025 159 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Policy (entity) Relevance for S1 own workforce Related S1 impacts, risks and opportunities Further details Non-discrimination procedure (Nordea) • Helps ensure that we comply with non-discrimination legislation. • Encourages and supports a culture of equal opportunities and equal rights. • Addresses harassment, sexual harassment, bullying and similar violations in the workplace. • Diverse and inclusive workplace • Discrimination and inequality • The procedure forms part of the policy framework overseen by the GAE for people risk – the CPO. • The procedure covers discrimination based on racial/ethnic origin, colour, sex, sexual orientation, gender identity, disability, age, religion, and national extraction. We respect additional protections, for example those concerning political opinion, which are included in local legislation. Assessment policy (Nordea) • Is aimed at ensuring a professional, ethical and standardised approach to the psychometric testing of job candidates. • Promotes fairness and equal opportunities through a commitment to select on merit. • Career development • Discrimination and inequality • The policy forms part of the policy framework overseen by the GAE for people risk – the CPO. • According to the policy, assessments should only include questions that are clearly relevant to the demands of the job and are free from the influence of bias. All assessments for selection and promotion must be monitored to ensure they do not unfairly exclude or disfavour any section of the population. • The policy applies to all job candidates. Learning Policy (Nordea) • Supports employees in taking opportunities to acquire the competencies needed to realise business strategies and goals. • Career development • The Policy forms part of the policy framework overseen by the GAE for people risk – the CPO. • The Policy is aimed at enabling career development. It states that employees are responsible for developing their competence and should actively strive to enhance their competencies and skills. • Leaders are responsible for offering employees opportunities and providing time for competence development. Management is responsible for ensuring that employees have the right level of competence to reach business objectives. • The Policy applies to all employees working at Nordea. Guideline on competence and capacity management (Nordea) • Describes the processes we should have in place to ensure we have enough skilled and competent employees to carry out our operations effectively and professionally. • Sets expectations regarding the controls we have in place to manage related risks in our daily operations. • Career development • The Guideline forms part of the policy framework overseen by the GAE for people risk – the CPO. Remuneration Policy (Nordea) • Sets out the strategic principles and requirements governing remuneration. • Supports gender-neutral remuneration through the application of pay principles. • Gender pay gaps • The Policy is overseen by the Board of Directors. • The Policy is referred to internally as the Group Board Directive on Remuneration. • All remuneration policies and practices at Nordea are based on the principle of equal pay for equal work or work of equal value, regardless of gender. • The Policy applies to all employees working at Nordea and is available to all external stakeholders at nordea.com. • Read more on page 177 in “G1 Business conduct”. Group CEO Instructions on Raising Your Concern (Nordea) • Outline the rights, responsibilities and protection of individuals when they raise a concern. • Describe the responsibilities, rules and procedures for the Raise Your Concern (RYC) unit when handling such cases. • All • The instructions are overseen by the Group CEO. • The instructions cover concerns raised by individuals through our RYC channels and concerns detected through other internal channels that are handled by means of the RYC process. • The instructions apply to all employees and consultants working for Nordea, as well as non-permanent and former staff. ===== SIDA 161 ===== Nordea Annual Report 2025 160 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Engagement processes related to own workforce Working conditions We seek to ensure solid working conditions for everyone at Nordea through engagement and continuous dialogue with our employees and union representatives. In particu- lar, we use: • our People Pulse employee engagement surveys • internal cooperation fora, councils and committees • team and individual PLD dialogues. Our Chief People Officer (CPO) is responsible for key engagement processes related to working conditions and equal treatment and opportunities for all, while all leaders are responsible for ensuring continuous engagement and an inclusive workplace. Each quarter, we conduct our employee engagement survey, People Pulse, where employees can give feedback based on their perception of Nordea as a workplace and bank. Depending on the quarter, the survey covers various aspects, such as working conditions; workload and stress; learning and development; diversity and inclusion; mal- treatment; and other factors that influence employees’ overall engagement and well-being. The insights gained help us identify key areas for improvement and facilitate meaningful conversations and actions to enhance our workplace culture. In 2025 the survey response rate was 85%, which demonstrates its effectiveness in representing the views of our employees. The survey is confidential, with responses collated and analysed by an external vendor. We gather further feedback on how employees per- ceive their workplace experience through our biannual Employee Experience Survey. The Survey assesses employee experience across all workplace interactions and services and is distributed to a portion of employees depending on their location. The results are used to iden- tify areas for improvement in our workplace. We strive for diverse representation among the employ- ees and union representatives in our cooperation fora. These structured recurring cooperation fora are held – and thus enable employee representation and feedback – at both the Group and local levels. Engagement also takes place at the team level, between employees and leaders in team meetings, and the individual level, in performance, learning and develop- ment (PLD) dialogues and check-ins between employees and leaders. The PLD dialogue and check-ins are aimed at driving performance, enhancing career development and support- ing employee aspirations through goal-setting and devel- opment planning; coaching and feedback; and the review of performance and growth potential. We recommend that leaders and employees hold PLD check-ins throughout the year to ensure continuous dialogue and complement the annual PLD dialogue. Team and individual-level engagement occurs at multi- ple stages throughout the year to ensure continuous dia- logue. We set expectations for leaders and strongly encourage teams to engage in dialogues to help translate the People Pulse results into learning opportunities and actions at least twice a year. These dialogues support leaders and teams in identifying what is working well and what could be even better and in agreeing on the next steps. The frequency of check-ins is arranged between the employee and the leader. Equal treatment and opportunities for all We engage with our employees on matters related to equal treatment and access to opportunities through: • Country D&I Councils • our People Pulse employee engagement surveys • team and individual PLD dialogues • Employee Resource Groups. Our Country D&I Councils oversee the local D&I agenda, ensure relevant actions are taken to support D&I work locally, and support local Employee Resource Groups. Each Council consists of ten core members. In addition to these, employee representatives may be selected by the unions through dialogues between the Council chairs and the unions and in accordance with local legislation and collective agreements. To ensure mutual information and advice sharing, each Country D&I Council is assigned a sponsor from within our Group-wide D&I Committee. The Councils report to the Group-wide D&I Committee on actions, progress and findings on an annual basis. As part of our effort to ensure non-discrimination as a fundamental human right, we measure the perception of D&I in our People Pulse survey twice a year and take action based on the outcome. We also have the following voluntary employee-led Employee Resource Groups (ERGs), which aim to contrib- ute to fostering an inclusive workplace by providing peer support and highlighting diverse perspectives: Ability Variation, Cross-Faith and Beliefs, Cross Cultural, Cross Generations, Gender Equality, and LGBTQ+ and Allies. ERG representatives are regularly invited to Country D&I Council meetings. Consultation with workers’ representatives We have established a process for informing and discuss- ing with workers’ representatives the information referred to in the Sustainability Statement and our means of obtaining and verifying it in alignment with the Corporate Sustainability Reporting Directive (CSRD) requirement as implemented in the Finnish Accounting Act. A select group of employee representatives were con- sulted on the 2025 Sustainability Statement. Additionally, our Board of Directors, including its employee-elected members, approved the Statement according to a defined process. Remediation processes and channels for raising concerns We have given our own workforce a clear way to address grievances and have processes in place to provide for remediation in cases where we have caused or contributed to work overload or gender pay gaps or where members of our workforce feel their rights have been violated. We encourage our employees to engage in open dialogue and raise concerns through our whistleblowing function, Raise Your Concern (RYC); Group People’s Ask HR function; and support functions, which are in place at all levels of the organisation. Employees can also raise concerns through the channels described in “Engagement processes related to own workforce” above. We encourage employees and non-employees who feel they have been subjected to bullying, harassment or dis- crimination to report incidents via the RYC function and reach out to their leader or Group People for support. In 2025 there were 2 substantiated incidents (3 in 2024) and 33 complaints (26 in 2024) related to discrimination, including harassment. Additionally, there were 19 other complaints (24 in 2024) filed through the channels pro- vided for our own workforce to raise concerns related to working conditions, equal treatment and opportunities for all, and other-work related rights. There were no severe human rights incidents (0 in 2024) reported. There were no fines or financial penalties and no compensation for damages (0 in 2024) as a result of the above-mentioned incidents and complaints during the reporting period. More information about how we collect data on incidents, complaints and severe human rights impacts can be found on page 166. Further details on the RYC function are pro- vided in “G1 Business conduct” on page 178. We take steps to ensure that our workforce is informed about the available grievance mechanisms. We raise awareness in various ways, including through our annual Code of Conduct training and internal awareness cam- paigns, for example intranet content. More information on our Code of Conduct training and how we assess work- force awareness regarding channels for raising concerns can be found in “G1 Business conduct” on page 178. We are committed not only to providing access to these channels but also to giving our workforce the knowledge, confidence and psychological safety to use them when needed. To this end, we have adopted confidentiality poli- cies that protect individuals who raise concerns, ensuring privacy and protection of their personal data. These poli- cies allow for anonymous submissions and prohibit retali- ation against those using grievance mechanisms. In addition to these channels, the People Pulse survey includes specific questions on potential maltreatment, including harassment, once a year. Teams can use our “Let’s Talk” tool to help them address workplace maltreat- ment concerns or reported maltreatment in a structured way. The tool also provides guidance on implementing appropriate remedial actions where necessary. ===== SIDA 162 ===== Nordea Annual Report 2025 161 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Actions and resources related to own workforce We continuously act on our responsibility to address mate- rial positive and negative impacts and risks related to our own workforce. We have “People Priorities”: focus areas that support our Group strategy and help us respond to developments affecting our workforce. We set these prior- ities for periods of 3–5 years, taking into account ongoing dialogues with relevant stakeholders. The actions described below are aligned with our 2022–25 People Priorities. Working conditions We have an occupational health and safety (OH&S) man- agement system for managing working conditions and taking action in response to identified material impacts and risks. The system provides a framework for identifying workplace risks at an early stage and highlighting strengths, helping us improve working conditions and employee engagement, well-being and work ability. Mitigating actions are identified and taken in each country, business area and Group function, followed up on regu- larly during the year, and fed into a process for managing and reporting on people risk. The system is owned and governed by a designated team, spans all organisational areas and levels, and involves country-level OH&S com- mittees. It covers all employees and operates on an annual cycle, with four phases: investigation, risk assessment, action and follow-up. To support employee work-life balance and mitigate work overload, we align with local collective agreements, for example regarding limits on overtime and weekly working hours. We have also introduced a hybrid working model with a set of guiding principles, giving employees the flexibility to perform focused tasks from home and helping them manage their work-life balance. In addition, our employees have the option to agree on flexible start and end times with their leader, depending on their role. We have processes in place to follow up on unused holi- day and ensure that available paid annual leave is taken by employees. Unused holidays are reported to employees and their leaders regularly. Moreover, we provide equal opportunities for parental leave for all parents during pregnancy, the adoption process and the child’s infancy. After their parental leave, employees may also take unpaid childcare leave. To enhance employee working conditions, we support various internal activities promoting sport or culture. We focus on activities that are accessible to as many employ- ees as possible. We also arrange Group-level and local events to acknowledge and promote different aspects of health or working conditions. For example, we hold “Let’s Get Energised week”, an initiative to increase knowledge and engagement regarding healthy habits that support a sustainable work life. In addition, we observe World Mental Health Day, which is aligned with the World Health Organization’s global initiative to raise awareness about mental well-being. We also provide health checks and occupational healthcare services as required by local regulations. Twice a year, our subject matter experts in Group People assess people risks using our common risk taxon- omy and common risk grid. The assessment helps us iden- tify appropriate actions to take to prevent work overload and mitigate the risk of failure to protect employee health and well-being. It provides a comprehensive and consoli- dated picture of people risks and thus supports the Chief People Officer (CPO) in making decisions and prioritising actions to be taken. We also perform annual business con- tinuity planning and testing to support leaders and employees in knowing how to act in a crisis situation, including adverse external events such as pandemics. Actions supporting safe and healthy working conditions in 2025 included: • continuing to stabilise and mature the OH&S system by closing identified gaps, further aligning it with our exist- ing people processes, and enhancing our data capabili- ties for better insights into employee health and safety • encouraging team and one-on-one dialogues based on the People Pulse results, including those related to workload and well-being • improving the governance of and reporting on the mandatory OH&S training for leaders. ===== SIDA 163 ===== Nordea Annual Report 2025 162 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Equal treatment and opportunities for all We have taken a number of actions focused on supporting diversity and inclusion and the achievement of our D&I target. We also welcome and enable the self-identification of gender identity among our employees. In compliance with regulatory restrictions on sensitive data, we do not register gender identity. As leaders’ behaviour and actions serve as an example to others, we have a leadership framework and supporting leadership principles in place. These encourage leaders to foster inclusion and empower people, and enable them to create purpose and inspire employees to grow and con- tribute. Our leadership core learning curriculum is availa- ble on demand for all leaders at Nordea. All new leaders are required to complete a mandatory “license to lead” programme during their first six months on the job. This comprehensive training package covers people processes, core leadership skills and legal responsibilities. We moni- tor gender balance in the leadership programmes to help ensure equal access to development opportunities. Our leadership principles, together with our policy framework, are aimed at fostering an inclusive working environment and preventing harassment. These aims are supported by dedicated internal procedures and manda- tory training for leaders and employees that includes con- tent on preventing harassment. Our ambition is to close the adjusted pay gap between women and men in equivalent roles by the end of 2026. To this end, we are remediating pay gaps through pay reviews, focusing on negative outliers identified in our annual pay equity analysis. Looking ahead, we will con- tinue to enhance transparency regarding pay guidance, pay levels and pay equity, both internally and for job appli- cants. In 2026 we will further strengthen our structured approach to pay setting and implement the new European Union requirements regarding pay transparency, support- ing our ongoing commitment to fairness, compliance and trust across the organisation. To support our employees with their career develop- ment, we have developed “Nordea Job Catalogue”, a resource they can use to search through all jobs at Nordea. In this way, we hope to inspire them to form their unique career journey. The Catalogue is based on our Group-wide job architecture, which structures jobs based on external benchmarks and market standards. The job architecture provides a clear overview of career opportunities and also helps support equal pay for equal work. The development plan is a key tool for helping employ- ees grow in their current role and prepare for the next steps in their career. It enables them to record their career development goals and track their progress towards them together with their leader. In 2025 we met our ambition for at least 80% of employees to have a development plan in place. Recognising that significant learning and development happens outside formal training – and that it is best achieved through a combination of training and on-the- job experience – we use a 70-20-10 learning framework to support continuous learning. 70% of learning happens through on-the-job experience, 20% through feedback, coaching and mentoring, and 10% through more formal learning, such as digital courses and classroom training designed for different career paths. At Nordea, we hire the vast majority of our senior lead- ers from internal candidates. This presents great develop- ment opportunities for our employees and enables us to draw further on the valuable experience already present among our workforce. Each year, we conduct strategic workforce planning to identify critical competency needs and ensure our work- force capacity and skills align with both current require- ments and future strategic objectives. We have a graduate programme – the Nordea Graduate Programme – which is designed to help us attract, develop and retain high-potential talent, thereby ensuring a diverse and fit-for-the-future pipeline of leaders and specialists for Nordea. The programme is built around future critical skills and offers learning journeys consisting of rotations, on-the-job experience and targeted training sessions. S1 Own workforce, cont. ===== SIDA 164 ===== Nordea Annual Report 2025 163 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Actions supporting equal treatment and opportunities for all in 2025 included: • integrating a people focus scorecard, including D&I, engagement and well-being metrics, into variable pay plans • updating our “Let’s Talk” process to strengthen our response to workplace harassment • launching a new talent development platform, “Career Hub”, for a first wave of employees to build a company- wide skills taxonomy aligned with our job architecture • taking steps to expand the scope of our succession plan- ning in order to maintain a talented workforce and ensure business continuity • launching new employee development initiatives focused on essential competency building in areas such as sales, AI tools, and ESG matters • implementing mandatory training programmes for all AI tool users, which must be completed before access to these tools is granted. Targets related to own workforce In 2022 we set gender and D&I-related targets for 2025 to drive our progress as a diverse and inclusive workplace, combat discrimination, and ensure equality among our workforce. The targets were aligned with and supported the achievement of UN Sustainable Development Goals, including but not limited to Goal 5 Gender Equality and Goal 10 Reduced Inequalities. During the preparation of new targets related to own workforce, rele vant st akeholders, including leader ship and subject matter experts, are involved and the pro posals are discussed in relevant fora, including the D&I Committee. Gender target Ensure that each gender has at least 40% representation at the top three leadership levels combined by the end of 2025 Target scope and methodology The target was aimed at driving the gender balance of women and men in all parts of the organisation. It was calculated as the percentage of women and men holding positions at leadership levels 1, 2, and 3, with a leader defined as an employee to whom one or more employees directly report. The target had a baseline value of 35.9% and the base year was 2021. Read more in “Gender and age distribution” on page 165. Performance against target We have exceeded our minimum 40% representation tar- get, achieving 43% at the end of 2025. The target level was reached for the first time in October 2023 and contin- ued to stabilise in the run-up to 2025. Performance against the target was closely tracked. Progress and potential areas for improvement were shared and discussed in relevant cooperation fora and committees, including the D&I Committee, and through events aimed at all employees. Each year, we publish a D&I report internally on our intranet, providing the entire workforce with a comprehensive update on our progress related to all aspects of D&I. In addition, progress was tracked internally and formally reported to the relevant committees. Looking ahead to 2030 We will maintain the target to ensure at least 40% gender representation across the top three leadership levels in the run-up to 2030, upholding our commitment to equal rep- resentation and enabling us to continue to improve the balance in certain areas of the organisation. The scope and methodology for this target will be unchanged from the 2025 target. D&I target Achieve a minimum average index score of 90 for diversity and inclusion by the end of 2025 Target scope and methodology The target was based on three questions in the People Pulse survey, on employees’ perception of fair treatment, equal opportunities and an inclusive environment, respectively. It had a baseline value of 89 and the base year was 2023. The diversity and inclusion index is calculated as a sim- ple average of the question scores. The questions require participants to score statements on a scale of 0–10; the answers are transferred to a scale of 0–100. The target outcome is reported based on the latest results available in the reporting period, i.e. the Q4 2025 survey. Progress towards the target was assessed on an annual basis in order to establish whether there was a trend in the scores. Performance against target The index was maintained at 89 in the fourth quarter of 2025, just below the target of 90. This is the same result as in 2024. At the same time, performance remained strong, with results exceeding benchmarks in the majority of the measured topics. We remain committed to maintaining the target and achieving it by 2030, with a sustained focus on initiatives aimed at further developing a diverse and inclu- sive workplace. Performance against the 2025 target was tracked as described above for the gender target. Looking ahead to 2030 We will maintain our target to achieve a minimum average index score of 90 for diversity and inclusion by the end of 2030. The scope and methodology for this target will be unchanged from the 2025 target. Monitoring the effectiveness of policies and actions for other material sustainability matters While we have not set formal targets related to the remaining identified material sustainability matters, we internally track the effectiveness of related policies and actions. For example, we follow trends in the People Pulse survey and report results and key data to senior leadership and relevant committees. This includes monitoring our well-being index, which comprises questions on workload, work distribution and employee empowerment. Analysis of trends ensures that impacts are known and actions can be taken with the firm support of the appropriate deci- sion-makers. Read more in “Engagement processes related to own workforce” on page 160. To help address the material impact related to gender pay gaps, we have set an ambition to close the adjusted pay gap between women and men by the end of 2026. To help address the material impact related to career devel- opment, we had the ambition for at least 80% of our employees to have a development plan in place by the end of 2025 – an ambition we have now met. In addition, we have other metrics in place to measure gender pay gaps, gender distribution, training and skills development and other relevant KPIs related to the identified impacts. The metrics are presented on pages 164–166. For material impacts and risks related to working environ- ment, employee well-being and work overload, we have a process in place to track the effectiveness of relevant policies and actions. KPIs, key risk areas and additional performance indicators are reported with an agreed frequency to relevant stakeholders, who then use the information to make any nec- essary adjustments. Progress on the indicators has been measured since 2024 and the ambition is to keep within an agreed risk appetite. We also analyse and report on data related to employee experience, employee turnover, sick leave, exit surveys and overtime hours, and carry out physical risk assessments of the premises. The metrics are presented on pages 164–166. Our biannual people risk assessment, described on page 161, helps us track and assess the effec- tiveness of our actions to prevent and mitigate negative impacts related to working conditions. After each assess- ment, Group People provides a status report on people risk to the relevant committees. ===== SIDA 165 ===== Nordea Annual Report 2025 164 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Metrics Key employee metrics The total number of employees (NOEs) and the break- downs by gender, country and contract type are reported based on the headcount as at the end of the reporting period, i.e. 31 December 2025. The most representative fig- ure for the total number of employees and corresponding breakdowns in the financial statements are on page 265 and are reported based on full-time equivalents (FTEs). Therefore, the figures are not directly comparable. Depending on their contract type, employees are cate- gorised as permanent or temporary. When applicable, they are further categorised as non-guaranteed hours employ- ees. Non-guaranteed hours employees may therefore be included among both permanent and temporary employ- ees. We employ around 300 summer trainees each year, which is the main reason behind fluctuations in the head- count during the reporting period. Non-employees include individuals working for Nordea through companies that primarily engage in employment activities, such as consultants. The metric is calculated as the total number of full-time equivalents (FTEs), with the FTE value based on non-employee contracted working time percentages as at the end of the reporting period. The employee turnover metrics are based on FTEs, with the FTE value based on employee contracted working time percentages as at the end of the reporting period. The employee turnover rate is calculated as the total num- ber of employees (FTEs) who left Nordea during the reporting period either voluntarily or due to dismissal, retirement or death in service, divided by the average number of employees (FTEs) during the reporting period. The voluntary employee turnover rate only includes employees who left Nordea voluntarily. Leavers do not include internal moves or expiring temporary contracts. Flexible workers, consisting mainly of non-guaranteed hours employees, are excluded from all employee turnover metrics. Number of employees by gender, NOEs 2025 2024 Men 15,567 16,128 Women 16,277 17,051 Not reported1 3 4 Total 31,847 33,183 1) Corresponds to system registrations that are neither men nor women. Number of employees by country 1, NOEs 2025 2024 Denmark 7,053 7,524 Estonia 1,068 1,155 Finland 6,576 6,885 Norway 3,356 3,486 Poland 5,922 6,040 Sweden 7,375 7,587 International offices 497 506 1) Includes all operating countries. Number of non-employees, FTEs 2025 2024 Number of non-employees 4,959 6,628 Employee turnover 2025 2024 Number of leavers (FTEs) 1,801 2,023 Employee turnover rate (%) 6.1% 6.8% Number of voluntary leavers (FTEs)* 1,218 1,468 Voluntary employee turnover rate (%)* 4.1% 4.9% * Entity-specific metric Number of employees by contract type, NOEs 2025 2024 Men Women Not reported1 Total Men Women Not reported1 Total Number of employees 15,567 16,277 3 31,847 16,128 17,051 4 33,183 Number of permanent employees 15,030 15,806 3 30,839 15,356 16,254 4 31,614 Number of temporary employees 537 471 0 1,008 772 797 0 1,569 Number of non-guaranteed hours employees 281 241 0 522 297 277 0 574 Number of full-time employees 2 14,857 14,754 3 29,614 15,267 15,369 4 30,640 Number of part-time employees 710 1,523 0 2,233 861 1,682 0 2,543 1) Consists of system registrations that are neither men nor women. 2) “Full-time employees” refers to the count of employees working full time. This figure does not equate to full-time equivalents (FTEs), which is a measure of work capacity. ===== SIDA 166 ===== Nordea Annual Report 2025 165 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Gender and age distribution The top management level corresponds to the Group Leadership Team (GLT). The metric is based on headcount and shows the percentage of women and men at the top management level as at the end of the reporting period. The top three leadership levels correspond to leader- ship level 1, which comprises the Group CEO and the lead- ers that report directly to him, including members of the GLT; leadership level 2, which comprises leaders reporting to leadership level 1; and leadership level 3, which com- prises leaders reporting to leadership level 2. The metric is based on headcount and shows the percentage of women and men at the top three leadership levels combined as at the end of the reporting period. The graduate programme gender split is based on headcount and shows the percentage of women and men hired for the Nordea Graduate Programme during the reporting period. The gender split for the core leadership programmes shows the percentage of women and men among the par- ticipants who completed the programmes during the reporting period. The age distribution of employees is reported based on the headcount as at the end of reporting period. Age distribution of employees 2025 2024 # % # % Under 30 years old 5,110 16 6,151 18 Between 30 and 50 years old 18,766 59 18,877 57 Over 50 years old 7,971 25 8,155 25 Gender distribution Gender1 2025 2024 # % # % Gender distribution at top management level2 Men 8 62 8 67 Women 5 38 4 33 Gender distribution at top three leadership levels combined* Men 359 57 378 59 Women 268 43 261 41 Graduate programme gender split* (%) Men – 53 – 47 Women – 47 – 53 Core leadership programmes gender split (%)* Men – 46 – 47 Women – 54 – 53 1) Gender categories include men and women only as “not reported” is not material to these metrics (<1). 2) “Top management” refers to the Group Leadership Team. * Entity-specific metric Health and safety metrics The information on employees covered by the operational health and safety (OH&S) management system derives from documents describing the OH&S risk assessment process. The sick leave rate is calculated as the total num- ber of sick leave days divided by the total number of planned working days during the reporting period. The calculation covers our six main operating countries: Denmark, Finland, Norway, Sweden, Poland and Estonia. Flexible workers, mainly non-guaranteed hours employ- ees, are excluded from the calculation. Health and safety metrics 2025 2024 Employees covered by the health and safety management system (%) 100 100 Sick leave rate (%)* 3.4 3.3 * Entity-specific metric Training and skills development Employees who participated in regular performance and career development reviews are calculated as the number of employees who received an assessment form for a per- formance review (based on the latest available data in the reporting period) divided by the total headcount. Percentages for men and women are calculated by divid- ing the number of male and female employees who received such a form by the headcount for male and female employees, respectively. Employees who are on long-term leave of absence or are working for Nordea for a short period of time, where an annual performance review is not possible, do not participate in the review. The average number of training hours is calculated as the total number of hours of training completed during the reporting period by employees employed at the end of the reporting period divided by the total headcount. The calculation of training hours covers formal documented training and does not include time spent on informal peer feedback, coaching or on-the-job learning. Employees with development plans are calculated as the number of employees with a development plan at the end of the reporting period divided by the total head- count. Flexible workers, mainly non-guaranteed hours employees, are excluded from the calculation. The internal hiring metric is calculated as the sum of positions filled via promotion or internal recruitment at leadership levels 1 and 2 divided by all positions filled both internally and externally at leadership levels 1 and 2 dur- ing the reporting period. The total headcounts and gender-specific headcounts used as the denominators are displayed in the table “Number of employees by gender” on page 164. Training and skills development Gender1 2025 2024 Employees who participated in regular performance and career development reviews (%) Men 95 92 Women 92 94 Total 93 93 Average number of training hours Men 16.2 16.1 Women 16.5 16.1 Per employee 16.3 16.1 Employees with development plans (%)* 82 73 Leadership level 1 and 2 positions filled by internal candidates (%)* 87 69 1) Gender categories include men and women only as “not reported” is not ma terial to these metrics (<1). *Entity-specific metric ===== SIDA 167 ===== Nordea Annual Report 2025 166 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S1 Own workforce, cont. Incidents, complaints and severe human rights impacts The key figures for the reporting year are presented on page 160. The data on incidents and complaints is calcu- lated as the total number of cases. For 2025, we present the figures in a way that more closely reflects our internal reporting processes for raising concerns and aims to pro- vide further clarity. We present the data according to three discrete categories: (1) substantiated incidents of discrimi- nation, (2) complaints involving discrimination, and (3) other complaints. Substantiated incidents are not counted among the complaints. A substantiated incident is one where a case investigation results in formal consequences according to our people disciplinary process or Raise Your Concern (RYC) process. To enable easy comparison, we have updated the clas- sification of the 2024 figures to match these categories. The total number of incidents and complaints reported in 2024 has not changed. We present the revised figures on page 160. The data is collected from a case management system by the RYC unit and from a dedicated dashboard by Group People. The data on severe human rights incidents is col- lected from the RYC unit’s case management system and includes cases of non- r espect of the UN Guiding Principles on Business and Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work or the OECD Guidelines for Multinational Enterprises. The data on fines, penalties and compensa- tion for damages is collected from relevant Group func- tions via email. Depending on the nature of the case, it may be transferred from the RYC unit to Group People or vice versa for handling. Therefore, reconciliation is per- formed when sourcing the data to avoid double counting. No reconciliation was required during the reporting period, as no fines, penalties or compensation for dam- ages needed to be paid. Gender pay gaps The unadjusted gender pay gap is a comparison of the average gross annual pay for all female employees with the average gross annual pay for all male employees expressed as a percentage of the average pay level for male employees. Pay corresponds to total direct compen- sation, including base salary, cash allowances, bonuses and long-term incentive rewards, as relevant. The adjusted gender pay gap is based on a comprehen- sive global pay equity analysis of our pay practices con- ducted by the external vendor Mercer on an annual basis. This is a regression model analysis, which controls for fac- tors that influence differences in pay in an objective way, including job complexity, experience, performance and location, and identifies pay differences between women and men in comparable positions that are not due to these factors. Gender pay gaps 2025 2024 Adjusted gender pay gap (%)* 1.43 1.75 Unadjusted gender pay gap (%) 21.48 22.90 * Entity-specific metric Remuneration ratio The annual total remuneration ratio is the remuneration of the highest paid individual divided by the average total remuneration of employees (excluding the highest paid individual). Remuneration ratio 2025 2024 Annual total remuneration ratio 40.7 45.7 ===== SIDA 168 ===== Nordea Annual Report 2025 167 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other SOCIAL INFORMATION S4 Consumers and end-users As the largest financial services group in the Nordics, we have the size and reach to ensure that individuals and households across the region can take part in the financial system in a way that is safe, fair and su pportive of their financial well-being. Financial decisions impact people’s exposure to risks and ability to capture opportunities, and are a crucial part of planning for the future. We are committed to supporting our customers in strengthening the positive impacts of their financial decisions, while addressing potential barriers that could limit their access to and trust in financial services. Our work is guided by internationally recognised frame- works and the OECD’s definition of financial well-being: being in control, feeling secure and having the freedom to make financial choices that support one’s goals. To embed this definition in practice, we contribute to supporting financial well-being through three enablers, informed by the United Nations Environment Programme Finance Initiative: financial inclusion, financial tools and insights, and financial skills. Together, these guide us in designing services, making decisions and engaging with society. Our approach is not only about enabling positive impacts but also about addressing customer vulnerabilities – which may be triggered by different circumstances – in a respon- sible and proactive way. We recognise that there are risks and barriers that can make financial well-being harder to achieve. Digital accessibility challenges, exposure to fraud and data privacy are critical issues that require continuous attention. In 2025 we published our financial well-being and inclu- sion commitment summary, which connects directly to our customer promise and our strategic sustainability priorities. The summary, which is available at nordea.com, includes examples of how we work to foster financial well-being and deliver on our commitment to fair and inclusive banking. Our next steps are to continue to develop initiatives related to our three key enablers and strengthen how we measure outcomes and follow up on results. Our key enablers to promote financial well-being Financial inclusion Ensure products and services are accessible and inclusive Financial tools and insights Provide insights and solutions that support confident financial decisions Financial skills Build knowledge and awareness that strengthen resilience and enable equal participation in society Community engagement Community engagement is integral to our work to sup- port financial well-being. It enables us to extend our reach beyond our existing customers and, in some cases, connect with people not yet fully included in the financial system, for example children or refugees. To support long-term positive impacts in society, our community engagement activities focus on building financial well-being, enabling entrepreneurship, and supporting social belonging. Activities are organised through our own initiatives as well as various partner- ships. We currently work with approximately 60 local and national partners. All our employees are invited to volunteer 16 hours a year, in person and/or online. ~1,500 employee volunteers in 2025 >1.2m participants in financial learning activities facilitated by us and our partners since 2016 ===== SIDA 169 ===== Nordea Annual Report 2025 168 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S4 Consumers and end-users, cont. Impacts, risks and opportunities overview for S4 Consumers and end-users Impact, risk or opportunity Title Value chain Time horizon Social inclusion of consumers and/or end-users Positive impact (potential) Financial inclusion based on (non-discriminatory) access to financial products and services Negative impact (potential) Exclusion of customers without digital literacy or internet access Information-related impacts for consumers and/or end users Positive impact (potential) Access to quality information Risk Data privacy Personal safety of consumers and/or end-users Positive impact (potential) Customer protection due to customers being made aware of fraud Negative impact (actual) Customer exposure to fraud on our platforms and through our products and services Upstream Own operations Downstream Short term Medium term Long term Very long term In this section We focus on how we manage the impacts of our prod- ucts and services on our customers, and how we miti- gate associated risks. We summarise the related mate- rial impacts and risks identified in our double material- ity assessment and explain why they are relevant for our strategy and business model. Then we present our policies that apply across the identified material impacts and risks. We organise the remainder of the section according to material impacts and risks, which are grouped where relevant to reflect the interconnected nature of certain topics. We present the disclosures under the following themes: • financial inclusion and digital accessibility challenges • access to quality information • data privacy • fraud awareness and exposure to fraud. For each theme, we explain how we are addressing the material impacts or risks through customer engage- ment, remediation processes and channels for raising concerns, and actions. We also describe how we moni- tor the effectiveness of our policies and actions, citing key figures where helpful. Material impacts and risks and their interaction with strategy and business model Matters concerning consumers and end-users, in particu- lar those related to customer financial well-being, are directly relevant for our strategy and business model. We view customer financial well-being as encompassing financial inclusion; financial safety, including protection against fraud; data privacy; and knowledge and skills regarding financial products, services, planning and decision-making. Two of the sustainability themes embedded in our busi- ness strategy are financial well-being and inclusive and safe societies. What is more, we wish to establish our- selves as a personal, accessible and inclusive adviser by 2030. In this respect, an inclusive product and service offering, tools and insights supporting financial know- ledge and skills, and fraud prevention measures are all important. As a financial services provider targeting a diverse range of customers, we have a business model that is reli- ant on individuals’ ability to participate in the financial system and access the Nordea products and services they need. Moreover, the nature and scale of our business mean that we process vast amounts of customer data. Failing to protect this data could entail not only risks to individuals’ privacy, but also operational disruption, repu- tational damage and financial penalties. Customer finan- cial safety is also essential as it can determine our ability to attract and retain customers. Given the relevance of financial well-being for the suc- cess of our strategy and business model, it is vital that we address related material impacts and risks. All consumers and end-users likely to be materially impacted by our business activities were included in the scope of our double materiality assessment (DMA). Those subject to the material impacts identified through the assessment are private individuals using our products and services, including individuals in vulnerable situations. These individuals are subsequently referred to as customers. To better reflect the overarching nature of financial well-being, in our 2025 disclosures the positive impact which in 2024 was referred to as “Financial well-being” is now referred to as “Access to quality information”. In addi- tion, commentary on community engagement is now included under different material impacts in acknowledge- ment of its relevance to multiple aspects of financial well-being. Policies related to consumers and end-users The following table provides a comprehensive overview of our policies related to customer well-being. Depending on the policy, it may be aimed at (i) supporting financial inclusion and/or addressing the potential exclusion of cus- tomers without digital literacy or internet access, (ii) sup- porting customers’ access to quality information, (iii) sup- porting customer data privacy, (iv) increasing awareness of fraud among customers, (v) helping to prevent and mit- igate the negative impacts of fraud on customers, or (vi) a combination of the above. Unless otherwise stated, the policies are available to all employees on our intranet. The internal rules listed in the table below form part of our internal rules framework, for which the Board of Directors is ultimately accountable. Several of the guide- lines presented in the table below form part of our con- duct and customer outcomes (C&CO) risk policy frame- work, which guides our work to ensure fair treatment of customers, accessibility and good customer outcomes, and safeguard the interests of vulnerable customers. ===== SIDA 170 ===== Nordea Annual Report 2025 169 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S4 Consumers and end-users, cont. Policy (entity) Relevance for S4 consumers and end-users Related S4 impacts, risks and opportunities Further details Code of Conduct (Nordea) • Outlines the ethical principles for conducting business at Nordea. Requires us to: • encourage feedback from our customers and identify and handle complaints in a timely, fair and consistent manner • reject all forms of discrimination • be open and transparent in our communication • respect customers’ right to data privacy. • All • The Code is overseen by the Board of Directors. • Among other things, the Code sets out the general principles included in the Customer Handling Guideline (see below) with respect to treating customers fairly. • The Code is available to all external stakeholders at nordea.com. • Read more on page 158 in “S1 Own workforce” and on page 177 in “G1 Business conduct”. Customer Handling Guideline (Nordea) • Governs the provision of all financial products and services offered to Nordea customers. Requires us to: • act honestly, fairly, professionally and in the best interests of our customers, and communicate in a way that is clear, fair and not misleading • consider customers’ vulnerability when providing products and services so we can ensure they receive a level of support proportionate to their needs and circumstances • categorise customers before providing investment services to ensure they receive an appropriate level of investor protection • assess the suitability of investment products before recommending them, based on information collected from customers, including their sustainability preferences. • Financial inclusion • Digital exclusion • Access to quality information • Data privacy • The Guideline forms part of the policy framework overseen by the Group Accountable Executive (GAE) for conduct and customer outcomes (C&CO) risk – a member of the Group Leadership Team (GLT). • The Guideline requires us to consider the need for alternative service channels or communication formats when customers are unable to access or use digital channels and tools. It also covers engagement with customers in payment difficulty to ensure they are treated responsibly, for example in the context of debt collection. • The Guideline covers requirements laid down in the European Union Accessibility Act (2016/2012), and the European Accessibility Act (2019/882), which entered into force in June 2025. Customer Complaints Handling Guideline (Nordea) • Provides guidance on how to manage the risk of inadequate complaint handling. • Explains what procedures should be in place for handling complaints, and the division of responsibilities within the Group. • All • The Guideline forms part of the policy framework overseen by the GAE for C&CO risk – a member of the GLT. Guidelines on the Product Approval Process (Nordea) • Set out the requirements for approving products and services so they are fit for purpose. • Require us to identify the target market for products and services based on their complexity and risk profile to ensure they are offered to the right customers through the right channels. • Financial inclusion • Digital accessibility challenges • The Guidelines are applicable to all products and services developed and offered by us. • The Guidelines form part of the policy framework overseen by the GAE for C&CO risk – a member of the GLT. Guidelines on Product Reviews (Nordea) • Set out requirements for reviewing products and services throughout their life cycle to ensure they remain appropriate for the target market and continue to meet customer needs. • As above • As above Non-discrimination procedure (Nordea) • States that we are obliged not to discriminate towards customers and defines non-discrimination as a basic right of every customer. • As above • Read more on page 159 in “S1 Own workforce”. Diversity & Inclusion Policy (Nordea) • Sets out our commitments to uphold human rights and ensure inclusivity and non-discrimination with regard to customers’ gender, ability variation, LGBTQ+ identity, cultural background and age. • Describes our aspiration regarding diversity and inclusion, which includes holding an inclusive dialogue with customers in an environment where everyone feels welcome and respected. • As above • The Policy is available to all external stakeholders at nordea.com. • Read more on page 158 in “S1 Own workforce”. Human Rights Policy (Nordea) • Outlines our commitment to respect human rights in all our business activities and relationships. • Provides information on processes to support the rights of customers, employees and other stakeholders in speaking up, including about potential breaches of human rights. • All • The Policy is overseen by the Board of Directors. • The Policy is available to all external stakeholders at nordea.com. • Read more on page 158 in “S1 Own workforce”. Guidelines on Community Engagement and Sponsoring (Nordea) • Outline how we help improve financial well-being, drive social inclusion and enable entrepreneurship through sponsorships, partnerships, donations and employee volunteering. • Financial inclusion • Digital accessibility challenges • The Guidelines form part of the policy framework overseen by the GAE for reputational risk – a member of the GLT. • To ensure we are meeting the requirements and objectives outlined in the Guidelines, we follow up on our community engagement activities internally at least once a year. Responsible Investment Product Distribution Policy (Nordea) • Sets out the minimum responsible investment requirements for financial products distributed by Nordea via advice. • Access to quality information • Read more on page 118 in “E1 Climate change”. ===== SIDA 171 ===== Nordea Annual Report 2025 170 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S4 Consumers and end-users, cont. Policy (entity) Relevance for S4 consumers and end-users Related S4 impacts, risks and opportunities Further details Responsible Marketing Policy Summary (Nordea) • Sets out our commitment to ensure we market our products and services in a responsible, transparent and accurate way. • Access to quality information • The Policy Summary is compiled from internal rules which form part of the policy frameworks overseen by (i) the GAE for reputational risk – a member of the GLT, and (ii) the GAE for ESG risk – the Chief of Staff. • Our minimum requirements for responsible marketing are to comply with relevant national and international laws and regulations and marketing standards and ensure that sustainability-related efforts are aligned with our Sustainability Policy. We must also adhere to the ICC Advertising and Marketing Communications Code. • The entire Nordea Group and all marketing and communication partners are responsible for adhering to the practices detailed in the Policy Summary. • The Policy Summary is available to all external stakeholders at nordea.com. Group Protocol on Data Privacy Risk (Nordea) • Sets the standards and requirements for our management of personal data and data privacy risks. • Includes guidance on how to help individuals exercise their rights in relation to their data. • Data privacy • The Protocol forms part of the policy framework overseen by the GAE for data privacy risk – a member of the GLT. The Protocol falls under the Group Board Directive on Compliance Risk and the Group Board Directive for Group Compliance. It is supplemented by additional guidelines that steer how we manage data privacy risk when processing individuals’ data. Group Protocol on Internal and External Fraud Risk (Nordea) • Highlights the key fraud risks we are exposed to. • Outlines the control objectives we must meet to mitigate both internal and external fraud risks. • Elaborates on the control capabilities that support us in detecting fraud and protecting our customers and society against it. • Defines appropriate fraud management governance. • Fraud protection • Exposure to fraud • The Protocol forms part of the policy frameworks overseen by the Chief Risk Officer and the GAE for fraud risk – a member of the GLT. • The Protocol sets the framework for how fraud risks are defined, and outlines overall fraud management roles and responsibilities. • While the Protocol is relevant to all employees, the target audience is employees with responsibilities related to the management, oversight and reporting of operational risk; members of operational risk governance fora; business risk managers; leaders of the above-mentioned employees; and leaders at leadership levels 2 and 3. • The Protocol is supported by associated Group internal rules. ===== SIDA 172 ===== Nordea Annual Report 2025 171 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S4 Consumers and end-users, cont. Financial inclusion and digital accessibility challenges We aim to provide services that are inclusive, intuitive and aligned with our ambition to make financial well-being more achievable for our customers. Our support should be fair and suited to our customers’ individual needs and circumstances. In recent years we have expanded our digital offering to make banking easier and more accessible, for example for customers in rural areas. At the same time, we have strengthened our focus on helping customers adapt to using digital services through our contact centres, physical premises and community engagement. In addition, we provide access to needed support and solutions for cus- tomers who are unable or do not wish to use digital offerings. Engagement processes We want to support our customers in accessing our offer- ing and provide them with the best experience possible. To this end, we continuously engage with them to ensure our services meet their needs. We conduct customer interviews and surveys to gather information on evolving needs and expectations so we can improve current services and define future interactions. Prior to releasing new digital services, we carry out user testing with customers to identify the most accessible and optimised solutions. Once a digital service is released, we track anonymised user behaviour and collect feedback to improve interactions where required. We also conduct surveys following interactions with customers and use quarterly relationship surveys to under- stand and monitor evolving needs. The responses help us address changing needs through improved processes and internal coaching and training, with actions taken at the country, regional and branch levels as relevant. In accordance with requirements in the EU Accessibility Act, our Danish, Finnish and Swedish websites have an accessibility statement, which includes information on how customers can provide feedback on the accessibility of our digital services. We engage with vulnerable groups such as the elderly population through several initiatives, for example in- person support meetings where customers can ask us questions and give feedback. In all countries, we also offer dedicated customer service phone lines for customers with specific needs. For example, in Finland, Norway and Sweden, the Senior Line is a way for older customers who do not use our digital services to receive extra guidance and advice from specially trained advisers. In Denmark, the Sunflower Line offers tail ored support to individuals with hidden disabilities. We encourage customers to contact us early if they are facing financial distress. When we identify that a customer needs support, we proactively reach out to them through appropriate channels. Whether the initial contact is made by the customer or by us, it is the starting point for explor- ing possible ways forward together. Remediation processes and channels for raising concerns We take customer complaints seriously and are committed to resolving them promptly and fairly. We view complaints as learning opportunities and input for improving the ser- vices we provide to our customers. Customers can make a complaint or provide other feedback by contacting our dedicated customer-facing employees or using the follow- ing channels: • online complaint form • mobile banking app • email • dedicated complaint mechanisms through affiliated branches • customer satisfaction surveys. Our customer-focused digital channels for making com- plaints are embedded in operational frameworks, such as the Customer Complaints Handling Guideline, which ensures their availability. We conduct employee training to promote the use of these channels and perform regular reviews to make sure they meet accessibility requirements and are functioning effectively. To ensure individuals can express their concerns without fear of consequences, we have confidentiality policies and safeguards against retali- ation, described in “S1 Own workforce” on page 160. Our complaint handling process Our complaint handling process is designed to ensure that every customer feels heard. Customer complaints are reg- istered and handled by our customer-facing employees. In cases where a complaint needs further investigation, for example if the customer is not satisfied with the decision of the customer service officer or adviser, we follow a clear escalation process. This includes obtaining a second opin- ion from our local customer ombudsman (in Finland, Norway and Sweden) or customer service manager (in Denmark). The local customer ombudsman or customer service manager investigates the case and assesses whether the complaint has been handled correctly and according to good banking practice. The customer is informed about the possibility to submit the complaint to the local financial complaint board or take it to court if they are dissatisfied with the outcome. Complaints tracking and analysis We analyse complaints to improve customer experience. When negative impacts are identified, the responsible group discusses the feedback and considers whether pro- cesses need to be revised. We also use complaints data to identify recurring issues that need addressing, which helps us continuously fine-tune our services. By tracking com- plaint developments and trends in the results of external customer satisfaction surveys (such as the annual EPSI survey), we can assess customers’ awareness of and satis- faction with our complaint handling processes. Our Group Leadership Team and business area management regu- larly receive complaint development reports from our internal customer complaint management function. Internal controls enable us to monitor and improve our complaint handling process. We perform regular audits to help us identify areas for improvement and ensure we are complying with regulatory standards. We also continu- ously train our customer-facing employees to equip them with the skills and knowledge needed to handle com- plaints in a timely, consistent and effective way. Human rights and grievance mechanisms Our approach to grievance mechanisms and remediation is guided by the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. In 2025 there were no reported severe human rights issues or inci- dents connected to our customers. Additionally, our Raise Your Concern (RYC) process did not capture any cases of non-respect of the UN Guiding Principles on Business and Human Rights, the International Labor Organization’s Declaration of Fundamental Principles and Rights at Work or the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct connected to consumers and/or end-users in the downstream value chain. Actions and resources We want to be a partner our customers can depend on to offer credit that is appropriate for their needs and to provide help when financial conditions change. We are mindful of the responsibility that comes with lending, and aim to offer credit that promotes long-term financial well- being and re flects customers’ individual situations. To support customers who are vulnerable as a consequence of financial difficulties, we have established specialised teams in each of the Nordic countries. For customers facing or in financial distress, our solutions could include temporary payment relief, a new repayment plan, or other adjustments depending on the cus- tomer’s situation. In all cases, we strive to prevent and miti- gate potential negative impacts on the customer. As part of our work to support accessibility, we have a dedicated programme spanning the Nordics to support our implementation of the European Accessibility Directive. Through this initiative, we have improved the accessibility of our banking services across our webpages, digital platforms and products. While some gaps remain, we are actively working to address them. In Denmark, Finland and Sweden, we give out our annual Abilitypreneur award to commend an entrepreneur, association or company that supports people’s differences and abilities through their business concept. In this way, we seek to contribute to more inclusive workplaces and socie- ties. In Denmark, we also participate in the Sunflower initi- ative, which focuses on inclusion and accessibility for peo- ple – both customers and employees – with hidden ability variations. By using the Sunflower lanyard, customers can signal a need for extra time, patience or support. ===== SIDA 173 ===== Nordea Annual Report 2025 172 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S4 Consumers and end-users, cont. Ac tions supporting financial inclusion in 2025 included: • launching an awareness e-learning for customer-facing staff on supporting customers in financial distress to complement our existing training in this area • expanding the Senior Line to Sweden, following pre- vious launches of the service in Finland and Norway. Related community engagement actions in 2025 • Piloting peer-guided sessions at our branches in Finland to support senior citizens in managing their personal finances and improving their digital skills. • Continuing our mentoring programme in Poland to support women from, for example, Ukraine and Poland in developing financial skills and empower them to return to professional activity after a break from work. In 2025 the number of Nordea mentors and attending mentees doubled compared with 2024. Monitoring the effectiveness of policies and actions While we have not published formal targets related to financial inclusion, we internally track the effectiveness of related policies and actions. We are also in the process of investigating relevant metrics that could be used to drive and measure the impact and progress of our financial well-being work, which includes financial inclusion. Customer satisfaction is a key measure we use to assess customer experience. Our internal surveys indicate contin- uous improvements in customer satisfaction. External benchmark surveys confirm our high rankings among large corporate and private banking customers (Prospera), while our rankings among personal and corporate custom- ers (EPSI) remain competitive. Access to quality information We are committed to ensuring that information related to our products and services is clear and accessible and meets regulatory requirements. We also aim to provide customers with high-quality and relevant advice, and ensure fair and responsible marketing practices. Engagement processes We engage with our customers to support their access to quality information in various ways. These include daily interactions in our branches and on our digital platforms, as well as targeted events such as live webinars on topics including savings and personal finances. We want every- one to be able to understand – and benefit from – the information and advice we provide. We consult customers when developing updates to information about our product offering so we can take their input into account in the revised version. Once the new product information has gone live, we monitor how it is being received by customers and, when necessary, make adjustments to make it clearer and more accessible. Our advisers engage with customers through different channels, for example our digital platforms and online meet- ings, to offer holistic (for example, portfolio level) and focused (for example, product level) advice depending on their needs. In addition to our human advisers, we have robo-adviser channels available in all the Nordic countries for customers who wish to receive advice online. Each chan- nel has built-in quality controls and is programmed to sup- port the advisory process, based on local requirements where relevant. Before providing investment advice, we engage with customers to obtain the information we need to be able to recommend suitable products. We conduct suitability assessments in accordance with applicable regulations, for example the Markets in Financial Instruments Directive and the Insurance Distribution Directive for insurance- based investment products. We also seek to capture cus- tomers’ sustainability preferences. To this end, we ask them how important it is for them that their investments (i) contribute positively to the environment and society and (ii) help reduce negative impacts on the environment and society. We then assess their preferences and assign them a sustainability profile so we can recommend a suit- able investment solution. Remediation processes and channels for raising concerns See “Remediation processes and channels for raising concerns” on page 171. Actions and resources To ensure our advisers have the knowledge and compe- tence necessary to be able to provide high-quality invest- ment advice to customers, we conduct training on sustain- ability topics in all the Nordic countries. We also focus on providing our customers with digital tools to help them visualise their financial situation and support better finan- cial decision-making. In our digital channels, we continue to develop the sustainability information available for funds to enable self-service customers to make informed decisions. For customers with a preference for sustainability, we offer a suite of products with enhanced sustainability cri- teria, labelled Nordea Sustainable Selection (NSS), to make it easier for them to navigate sustainability-focused investment products. Customers can access a summary of the requirements for NSS at nordea.com. See “General information” on page 84 for more information about NSS products. Actions supporting access to quality information in 2025 included the following. • Launching an e-learning series on sustainability in the investment advice context, which is available to advisers in all Nordic countries in all four Nordic languages and English. • Launching a new Financial Health Check feature in the mobile banking app in all Nordic markets. By answering a few questions, customers can receive suggestions on how to improve their financial situation. Going forward, we plan to develop the feature further, focusing on more personalised omnichannel experiences. • Partnering with Gimi, a pocket money app designed to support financial literacy by teaching children and young people about finances through interactive learn- ing. Our customers in Norway and Sweden can now con- nect the app to their Nordea accounts and access addi- tional features, such as educational material and savings goals. We plan to expand this partnership to Denmark and Finland in the coming year. During 2025 399,000 assessments were made of customer sustainability preferences 41% of these saw advised customers express a sustainability preference ===== SIDA 174 ===== Nordea Annual Report 2025 173 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S4 Consumers and end-users, cont. Related community engagement actions in 2025 • Participating in the Finnish government’s national financial literacy strategy taskforces, which aim to make Finland a world leader in financial literacy by 2030. • Continuing our collaboration with Large Ice Cream Company in Norway, which provides nearly 1000 summer jobs across the country for young people between the ages of 13 and 17. Nordea volunteers provided financial skills training for the young sum- mer employees. • Continuing training together with Mattecentrum and through our own maths challenge (Matteutmanin- gen) programme in Sweden, addressing the strong link between maths and financial skills. We ran an after-school programme with Mattecentrum to help 300 students between the ages of 14 and 19 sharpen their skills ahead of national maths tests. • Attending the EuroSkills competitive event in Den- mark, the biggest vocational education and skills excellence event in Europe. 100,000 young people from different parts of Europe competed, and Nordea volunteers had the opportunity to discuss dreams and entrepreneurship with attendees. Monitoring the effectiveness of policies and actions While we have not published formal targets related to access to quality information, we internally monitor the effectiveness of related policies and actions. For example, we have established a control framework to monitor the quality of our investment advice in each business area and country. We follow up on the results of this monitoring each quarter to identify actions and/or areas for improve- ment. Product distribution is also followed up via target market monitoring and internal reviews. Data privacy We are committed to protecting our customers’ privacy and personal data and managing risks to support individu- als’ data privacy rights. Engagement processes We have a customer-centric approach to data privacy and enable customers to control their personal data through the exercise of their individual rights. These include the right to access the personal data we process when provid- ing them with products and services. We inform our customers about their rights when we communicate privacy information to them as part of the product/service onboarding process. Our Privacy Policy is available on our website, and in our online bank and mobile app. Customers can manage their privacy preferences online. For example, they can specify the data they consent to us collecting for the purposes of providing them with rele- vant offers, personal advice and services online. Remediation processes and channels for raising concerns We have implemented appropriate measures, processes and tools to identify personal data breaches as soon as they have occurred so we can inform the supervisory authority and the customer without undue delay, as required. See also “Remediation processes and channels for raising concerns” on page 171. Actions and resources We are committed to continuously improving our data pri- vacy governance framework. Data protection officers and a separate Group Data Protection Office unit establish the compliance framework governing data privacy and advise on, monitor and report on data privacy. Our privacy poli- cies are reviewed annually to ensure they provide up-to- date information on how personal data is used. Actions supporting customer data privacy in 2025 included: • updating our Group Protocol on Data Privacy Risk and continuing to strengthen our policy framework through the creation of new guidelines • optimising our processes to ensure customers can easily access their personal data and exercise their data pri- vacy rights. Monitoring the effectiveness of policies and actions While we have not published formal targets related to data privacy, we use several metrics to monitor the effec- tiveness of related policies and actions. These metrics include the percentage of our workforce that has com- pleted mandatory training; the number of complaints made concerning breaches of customer privacy and losses of customer data; the number of internal privacy experts engaged in personal data protection matters; whistle- blower cases concerning severe personal data breaches; and legal actions concerning personal data breaches. Fraud awareness and exposure to fraud We are committed to continuously working to protect our customers, employees and society against fraud risks. We recognise that our platforms could be used to defraud our customers, and focus on both preventive and detective measures to keep them safe. Engagement processes We proactively engage with our customers and other stakeholders to promote fraud awareness in wider society. Engagement happens on a daily basis through several dif- ferent channels, including but not limited to: • our own websites • our social media channels • Nordea Netbank and authentication solutions used by customers • online advertising, including social media advertising • podcasts • print advertising and outdoor advertising • physical customer letters • online events • in-person events • one-to-one customer meetings • internal awareness activities for our employees. We tailor fraud awareness content to specific target groups that may be more vulnerable to fraud and choose appropriate channels. For example, we send physical let- ters to customers without access to digital tools. We also send direct messages through digital channels and run larger campaigns through multiple channels. Before implementing any new fraud prevention tech- nologies or processes, we assess the impact on customers. Our various customer segments have distinct fraud pre- vention needs. We gather feedback from relevant stake- holders through various channels to capture the perspec- tives and needs of our customers, and adapt our fraud prevention approaches accordingly. Here, key data includes customer claims regarding missed fraud cases and customer interactions during monitoring and alert handling. Remediation processes and channels for raising concerns Our fraud resolution process is designed to provide cus- tomers with a fair and timely resolution of their fraud claims, while ensuring compliance with local legislation and case law. The process involves reviewing fraud claims according to defined procedures, assigning liability for fraud losses, and performing actions to reimburse custom- ers who are entitled to a reimbursement. We have dedicated fraud claim handling teams in all the Nordic countries. Any customer who has become a victim of fraud is considered to be in a vulnerable situation and anyone who has experienced fraud must be paid particular care and attention. With this in mind, we focus on timely handling, clear communication and support for the cus- tomer throughout the claim handling process. The inten- tion is for customers to receive equal treatment regardless of age, nationality, customer segment or other factors. All claims are handled in accordance with our Guidelines on reimbursement of fraud claims, as well as applicable local reimbursement rules. Customers are always informed of grievance mechanisms related to reim- bursements in the decision. More information on grievance mechanisms can be found on page 171. ===== SIDA 175 ===== Nordea Annual Report 2025 174 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other S4 Consumers and end-users, cont. Actions and resources We are continuously developing our capabilities to miti- gate, to the extent possible, the risk that our platforms are used to defraud our customers. Actions include making improvements to authentication solutions and introducing additional appropriate product limitations and transaction limits. We are also improving our detection capabilities. For example, we have introduced real-time detection of unauthorised and authorised fraudulent transactions and deviations in customer behaviour, and detection of mal- ware on customers’ devices. Combating fraud requires collaboration between banks, authorities such as the police, and various industry sectors. We engage in collaborations in all our operating countries to gather intelligence, share insights regarding fraud trends, and identify specific actions to take. These collabo- rations include the countries’ banking associations. In 2025 we conducted around 340 different customer awareness activities, some of which were national cam- paigns with a reach that extended beyond our customers. We also raised awareness among our employees. Actions supporting fraud awareness and prevention in 2025 included: • introducing a new mandatory e-learning to increase employee knowledge and competence regarding internal and external fraud • organising meetings and seminars with customers in 40 branches in Denmark during a “Fraud Week” in June. Related community engagement actions in 2025 • Running our “Hard to fool” (Svårlurad) campaign in Sweden for the third consecutive year (in both the spring and the autumn). • Continuing with financial crime prevention educa- tion in Estonia for different age groups to share knowledge about how to prevent fraud. We con- ducted 61 lessons in 47 schools and held several sessions for adults. The actions we take to detect, prevent and address fraud are all part of our fraud management life cycle: Awareness Authentication Product features Detection Aftercare Intelligence Nordea Fraud Management Life Cycle Intelligence and awareness We gather intelligence on fraud trends and tactics, and use the insights gained to help design our fraud aware- ness initiatives. These include customer letters, media and events, and educational campaigns run either inde- pendently or in collaboration with external partners. Authentication and product features Our authentication solutions are key to securing the online services we offer. We also apply and maintain product features, for example transaction limits, to help make our products safer. Detection We detect fraud using solutions that help us identify and interrupt suspected fraudulent transactions and activities. Accurate data is key for fraud detection as it helps us secure a high detection rate while minimising friction for our customers. Our fraud monitoring and investigation processes involve manually handling and reviewing alerts and cases originating from automated fraud detection and other sources and taking reasonable steps to recover funds. When investigating a fraud case, we assess the customer’s information and evaluate the incident to understand the full context, why the alert was trig- gered, and the underlying circumstances and details of the incident. Aftercare We have a remediation process in place for when actual fraud cases materialise, described in more detail under “Remediation processes and channels for raising concerns” on page 173. Monitoring the effectiveness of policies and actions While we have not published formal targets related to fraud, we monitor the effectiveness of policies and actions internally to ensure our fraud prevention and detection measures are appropriate and to support the development of fraud awareness activities. Regular fraud risk assess- ments help us identify the threats to which we and our customers are exposed, learn about our strengths and weaknesses, and identify potential actions for improvement. In addition, internal reporting on fraud activity levels is provided each month to relevant senior managers, risk managers and other relevant stakeholders. The reporting helps us track our overall fraud risk exposure and the per- formance of our fraud management processes, and sup- ports us in taking relevant mitigating actions when needed. Internal and external fraud risk is also included in our Group Risk Report, which is shared with the Group Leadership Team, the Board Risk Committee and the Group Board of Directors. The Report provides information on our overall risk picture and on mitigating actions and key developments regarding risks in breach of the approved risk appetite limit. ===== SIDA 176 ===== Nordea Annual Report 2025 175 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other GOVERNANCE INFORMATION G1 Business conduct We earn our stakeholders’ trust through high ethical standards, strong corporate governance, regulatory compliance and effective risk management, means by which we also contribute to the safety, resilience and inclusivity of the societies in which we live. Our stakeholders expect us to have a sustainable business model, generate stable and positive financial results over time, and be a responsible financial services provider, man- aging cyber threats and financial crime risks while respect- ing human rights. Amid the geopolitical tensions and rapid technological development we are seeing today, meeting these expectations has taken on a new urgency. We have invested significantly in our financial crime pre- vention and cybersecurity capabilities in recent years – and will continue to make targeted investments to adapt to emerging risks and safeguard our customers and wider society. We currently have thousands of employees working solely on combatting money laundering, sanctions evasion, terrorist financing and fraud. Safe and resilient societies also rely on a stable financial system. We contribute to financial stability by conducting business to high ethical standards, managing risks compe- tently, and maintaining a well-diversified business model and solid levels of capital and liquidity. Ethical and professional business conduct is part of our corporate culture and is driven by our tone from the top and corporate governance. Strong corporate governance involves having clear and systematic decision-making pro- cesses, defining clear responsibilities, avoiding conflicts of interest, and ensuring satisfactory internal control, risk manage ment, transparency and accountability. All employees and other members of our workforce are required to undertake annual training to ensure proper awareness and knowledge of our ethical principles – enshrined in our Code of Conduct. We also continuously train our employees to ensure they have the competencies necessary to follow and act in accordance with laws, regula- tions and market standards as reflected in our internal rules. Going forward, we will continue to support safe and inclusive societies by embedding human rights due diligence into our culture and governance so we can proactively miti- gate and address potential harmful activities. We will also maintain constructive dialogue with employees, customers and partners to identify opportunities for positive change. “ We contribute to financial stability by conducting business to high ethical standards and managing risks competently.” Three lines of defence We manage risks, including those related to business conduct, through our three lines of defence model. The first line of defence is responsible for managing risks and complying with applicable rules in the course of day-to- day business. The second line of defence maintains and monitors the implementation of our risk management and compliance risk management frameworks. The third line of defence provides independent assurance and advice related to our internal control framework. 1st Daily risk management, operations and development 2nd Monitoring and reporting 3rd Internal audit ===== SIDA 177 ===== Nordea Annual Report 2025 176 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G1 Business conduct, cont. Impacts, risks and opportunities overview for G1 Business conduct Impact, risk or opportunity Title Value chain Time horizon Corporate culture Positive impact (potential) Good corporate conduct Risk Compliance risk related to remuneration Corruption and bribery Risk Corruption and bribery Financial crime and fraud prevention (entity-specific) Negative impact (potential) Criminals using products and services to facilitate criminal activities Risk Financial crime Risk Fraud Cybersecurity (entity-specific) Risk Cybersecurity Upstream Own oper ations Downstream Shor t term Medium t erm L ong term V ery long term In this section We look at the potential impacts of our business con- duct, and how our business conduct influences risks and opportunities for us. We start by explaining why matters concerning business conduct are relevant for our strategy and business model. Then we summarise the material impacts, risks and opportunities related to business conduct identified in our double materiality assessment, including those related to entity-specific topics, for example financial crime prevention and cybersecurity. We explain how we are addressing these impacts, risks and opportunities through our policies and actions. We also describe how we monitor the effectiveness of our business conduct, financial crime prevention practices and cybersecurity. Material impacts, risks and opportunities and their interaction with strategy and business model Matters concerning business conduct are directly relevant for our strategy and business model. Good business conduct – compliance with applicable regulations and standards; ethical business practices; and strong corporate governance – contributes to inclusive and safe societies, one of the sustainability themes embedded in our business strategy. Our ambition under this theme is to be well established as a responsible finan- cial services provider supporting human rights by 2030. Ethical and responsible business conduct will be key to achieving this. As a financial services group, we have a business model that is reliant on our ability to attract and retain customers, investors and employees, and mitigate both financial and non-financial risks. Preserving this ability requires us to pay continuous attention to ethics, corporate governance, regulatory compliance and risk management. Given the relevance of good business conduct for the success of our strategy and business model, it is vital that we address business conduct-related material impacts, risks and opportunities. Policies related to business conduct The table below provides a comprehensive overview of our policies related to business conduct. Our policies, procedures and controls designed to strengthen our financial crime prevention programme – which provides a uniform set of risk management princi- ples and mandatory standards for our organisation – are continuously evaluated and updated to ensure adequate defences against financial crime. Relevant financial crime policy statements are available to external stakeholders at nordea.com. Our information security policies, which include cyber- security, are integrated into our daily security practices and are aligned with our strategic goals. We regularly review and improve our cybersecurity policies and procedures to ensure strong protection across the organisation. Information security instructions and guidelines are inte- grated into our change and incident management pro- cesses, ensuring we always consider security when making changes to systems, processes or technologies, or when handling security incidents. The internal rules listed in the table below form part of our internal rules framework, for which the Board of Directors is ultimately accountable. Unless otherwise stated, the policies are available to all employees on our intranet. ===== SIDA 178 ===== Nordea Annual Report 2025 177 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G1 Business conduct, cont. Policy (entity) Relevance for G1 Business conduct Related G1 impacts, risks and opportunities Further details Code of Conduct (Nordea) • Outlines the ethical principles for conducting business at Nordea. • Addresses care for the environment; human rights; labour rights; the right to privacy; fair competition; and bribery and corruption, among other things. • Sets out general principles, while our internal rules provide specific guidance and advice. • All • The Code is overseen by the Board of Directors. • The Code is based on relevant legal requirements and internationally agreed standards, primarily the Ten Principles of the UN Global Compact. • Compliance with different sections of the Code is regularly monitored by the respective responsible functions and by Group Compliance. Each year, a Code of Conduct report is prepared and provided to the Sustainability and Ethics Committee, the Risk Committee, the Group Leadership Team, the Board Risk Committee and the Board of Directors, informing them about how well we are adhering to the Code and providing them with insights into our Group risk culture. • We maintain internal versions of the Code in English and in all four Nordic languages. The Code is available to all external stakeholders at nordea.com. • Read more on page 158 in “S1 Own workforce” and page 169 in “S4 Consumers and end-users”. Supplier Code of Conduct (Nordea) • Sets expectations regarding the social, ethical and environmental business practices of our suppliers. • Requires our suppliers to comply with this Code even if it sets a higher standard than required by national laws or regulations. • All except compliance risk related to remuneration • The Code is overseen by the Board of Directors. • The internal rules in our outsourcing and third parties risk policy framework require suppliers to comply with the Supplier Code of Conduct. • The Code is available to all external stakeholders at nordea.com. • Read more on page 118 in “E1 Climate change”. Group Board Directive on Financial Crime Risk Management (Nordea) • Requires us to perform risk-sensitive financial crime prevention controls. • Describes the commitment of the Group Leadership Team and the Group Board of Directors to prevent financial crime. • Sets out the high-level principles which form the basis for our risk management measures aimed at preventing financial crime. • Defines the financial crime prevention roles and responsibilities and the requirements for managing financial crime risks within our organisation. • Criminals using products and services to facilitate criminal activities • Financial crime • The Directive is overseen by the Board of Directors. • In designing the Directive, we considered compliance with regulatory requirements and effective prevention of financial crime for the benefit of wider society without unduly limiting or restricting customers’ access to banking services. Group Board Directive on Risk (Nordea) • Describes the commitment of our leadership to manage risks. • Outlines the principles, roles and processes for identifying, assessing, responding to, monitoring and reporting risks across the organisation. • Forms the basis for our risk management measures, including information security measures. • All • The Directive is overseen by the Board of Directors. Remuneration Policy (Nordea) • Describes the controls we must have in place to increase the effectiveness of the Board’s work related to remuneration. • Defines the rules, governance, roles and responsibilities related to remuneration. • Compliance risk related to remuneration • The Policy is overseen by the Board of Directors and is referred to internally as the Group Board Directive on Remuneration. • The Policy is based on relevant legal requirements. • The Policy sets the framework for how remuneration risk is defined and outlines overall roles and reponsibilities. • Read more on page 159 in “S1 Own workforce”. Group Protocol – Internal and External Fraud Risk (Nordea) • Highlights the key fraud risks to which we are exposed and the control objectives we must meet to mitigate them. • Describes the requirements related to the controls we must have in place to detect and prevent both internal and external fraud. • Defines appropriate fraud management governance. • Fraud • The Protocol forms part of the policy framework overseen by the Chief Risk Officer (CRO) and the Group Accountable Executive (GAE) for fraud risk – a member of the Group Leadership Team. • Read more on page 170 in ”S4 consumer and end-users”. Group Protocol – Information Security (Nordea) • Outlines the implementation of our information security risk framework. • Defines the rules, governance, roles and responsibilities for the management of information security risk within the Group. • Cybersecurity • The Protocol forms part of the policy framework overseen by the CRO and the GAE for information security – a member of the Group Leadership Team. • The objective of the Protocol is to preserve the confidentiality, integrity and availability of our business services and processes, information and information systems. • The internal version of the Protocol is available to all internal stakeholders on our intranet. Group CEO Instructions on Raising Your Concern (RYC) (Nordea) • Outline the rights, responsibilities and protection of individuals when they raise a concern. • Describe the responsibilities, rules and procedures for the RYC unit when handling such cases. • All • The Instructions are overseen by the Group CEO. • Read more on page 159 in “S1 Own workforce”. ===== SIDA 179 ===== Nordea Annual Report 2025 178 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G1 Business conduct, cont. Corporate culture As a financial services group, we are in the business of trust. We always strive to conduct business to high ethical and professional standards, driven by our strong tone from the top and corporate governance. Our culture finds expression in our values: collaboration, ownership, passion and courage. Everyone at Nordea should work together for the benefit of all stakeholders, take responsibility for their conduct, act in the best interests of our customers, and dare to do what is right. Channels for raising concerns Our whistleblowing function, Raise Your Concern (RYC), ensures that all internal and external stakeholders can safely exercise their right to speak up if they have con- cerns about suspected misconduct. This may include breaches of human rights or fraudulent, inappropriate, dis- honest, illegal or negligent behaviour in connection with our operations, products or services – including violations of laws, regulations or internal policies, instructions or guidelines. Concerns can be raised verbally or in writing in all the countries in which we operate. We treat all reporting with the strictest confidentiality to ensure that whistleblowers are adequately protected in accordance with our obligations under Directive (EU) 2019/1937. It is also possible to report anonymously via WhistleB, an electronic reporting channel. This platform, managed by an external party, is entirely separate from our IT systems and does not track IP addresses or other data that could be used to identify the message sender. All reporting is handled by our RYC team, which is an independent and autonomous unit within Group Compliance. This ensures that our investigators are sepa- rated from the chain of management that could be involved in a specific matter. Our RYC procedures also dic- tate how investigations should be monitored and finalised to ensure timeliness. Cases reported through RYC help us monitor compli- ance with our Code of Conduct. We report key case trends and statistics on a no-name basis to our Chief Compliance Officer, Chief People Officer and Chief Risk Officer, and include them in management reports and reports to the Board of Directors. Our RYC process and investigations are subject to regular quality controls, and we have defined escalation procedures in place should any process devia- tions be identified. In 2025 we reviewed the effectiveness of our RYC procedure regarding human rights grievances and identified areas for improvement. More information on RYC can be found on page 160 in “S1 Own workforce”. Training Our Board of Directors and senior management receive dedicated training in ESG topics to ensure they are suffi- ciently competent in sustainability matters, including busi- ness conduct matters. This includes periodic specialised financial crime training, which encompasses bribery and corruption. More information on the knowledge, skills and expertise of the Board of Directors and senior manage- ment can be found in “General information” on pages 88–89. All employees and other members of the workforce, including part-time employees and consultants, are required to undertake annual mandatory Code of Conduct training to ensure proper awareness and knowledge of our ethical prin- ciples. The training includes information on the Code and real-life scenarios showing how individuals can apply the ethical principles in their everyday work and decision-mak- ing. The 2025 course focused in particular on topics such as data privacy, social media guidelines, personal account deal- ing, incident management, and how to raise concerns. In addition to the Code of Conduct training, all our employees must complete other mandatory risk and compli- ance training courses as part of obtaining and renewing their “licence to work”. In 2025 these courses were as follows. • Anti-fraud – Foundations, new training which focuses on increasing knowledge and competence regarding internal and external fraud, and making employees aware of the most common fraud threats they may face both inside and outside the organisation. • Financial crime, which focuses on how to manage finan- cial crime risks in daily work and across the Group in line with our risk appetite and compliance culture. The course covers money laundering, terrorist financing, tax evasion, bribery and corruption, and sanctions. Where bribery and corruption are concerned, the course outlines key con- cepts, our potential exposure, our prevention programme, and requirements placed on all employees. It also pro- vides references to additional information as well as information about whistleblowing and employees’ rights and responsibility to use our RYC function. • Information security essentials, which is aimed at giv- ing our employees an overall understanding of impor- tant topics within the area of information security, including cybersecurity. • We are all risk managers, which enables employees to learn about our approach to risk management. While we have not published formal targets related to training, we monitor completion rates as a means to track effectiveness. 2025 course completion rates (%) Courses for all employees 2025 2024 Code of Conduct 98.1 97.4 Anti-fraud – Foundations (New) 97.3 – Financial crime 98.1 97.2 Information security essentials 98.4 97.3 We are all risk managers 98.4 97.5 As a supplement to the general Group-wide training, extensive specialised training programmes are conducted for all employees with financial crime prevention responsi- bilities, according to their roles and responsibilities. ===== SIDA 180 ===== Nordea Annual Report 2025 179 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G1 Business conduct, cont. Moreover, identified “functions at risk” are provided with further in-depth anti-bribery and corruption training tailored to their risk profiles. Functions qualify as at risk based on whether they have: • a high degree of customer, supplier or public official interaction • a senior leadership role • a supporting role in corporate events • responsibility for talent attraction and reward • a certain control function or a role in another niche group with unique exposure. Geography is not considered a deciding factor. Of the functions at risk that were provided with further in-depth anti-bribery and corruption training in 2025, 96.4% com- pleted the training (97.4% in 2024). This corresponds to 18.6% of our total workforce (4.1% in 2024). Mitigation of remuneration risk Remuneration risk is the risk that applicable laws, regula- tions or internal rules relating to remuneration are breached. The risk primarily arises when the relevant reg- ulatory requirements are not implemented adequately. Remuneration risk is considered to be subject to the risk appetite defined for operational risks. The regulatory requirements relating to remuneration cover both fixed and variable remuneration, with the majority relating to variable remuneration. Most of the requirements stem from European Union regulations. At Nordea, they are integrated in our internal rules, systems and processes. Actions and resources related to the mitigation of remuneration risk We assess remuneration risks on an ongoing basis within the framework of our Risk Committee. Our Risk and Remuneration Alignment Committee (RRAC) supports remuneration risk management by governing and over- seeing risk-adjusted remuneration assessments of the rel- evant employees eligible for significant variable remuner- ation in the first line of defence. The RRAC’s work is intended to strengthen personal accountability and develop a consistent approach to risk-adjusted remunera- tion assessments through a fair and transparent process based on clear criteria. Variable remuneration awarded under our main varia- ble remuneration plans is based on an assessment of the results of the Nordea Group, the relevant Nordea entity, the relevant business unit and the individual employee. Awards may be reduced, in part or in full, if the eligible employee has, for example, violated internal or external regulations or participated in an action leading to signifi- cant losses for Nordea. Awards may also be reduced in the event of a significant decrease in the financial results of the Nordea Group or the relevant business unit. The ESG targets included in variable pay plans derive from our externally communicated Group-level sustaina- bility targets. The Group-level targets, and regularly updated status information, can be viewed by all external stakeholders at nordea.com. We employ an external consultancy firm specialising in the implementation of long-term incentive plans in listed companies to support us in preparing our proposed Long Term Incentive Plan structure. This includes the targets ultimately approved by the Board of Directors. An external provider thus reviews the proposed metrics but does not evaluate performance against them. Monitoring the effectiveness of policies and actions While we have not published formal targets related to remuneration risk mitigation, we have integrated it into our remuneration risk framework by including risk, compli- ance and conduct goals directly in short-term variable pay plans as well as indirectly in the terms and conditions of the long-term variable pay plan. Prevention and detection of corruption and bribery At Nordea, we recognise the corrosive effect that bribery and corruption have on society, and are committed to pre- venting and detecting them. We do so by adhering to all applicable laws and regulations and following our anti-bribery and corruption (ABC) programme, which is outlined below. Actions and resources related to the prevention and detection of corruption and bribery We have a Group-wide ABC programme, covering all employees, which outlines how we prevent, detect and correct matters related to bribery and corruption. Key fea- tures of the programme include a clear tone from the top; a zero tolerance policy; a Group Accountable Executive for “anti-bribery and corruption”, who is a member of the Group Leadership Team; an extensive suite of internal poli- cies and procedures, including with respect to third parties such as suppliers and intermediaries, and gifts and hospi- tality; training programmes; a dedicated advisory function; and regular management reporting. Our annual Financial Crime Enterprise Risk Assessment is key to helping us address bribery and corruption risk. Here, Group Compliance assesses the financial crime risks to which we are exposed in a manner commensurate with our size, complexity, business operations and global presence. The results help us better understand our financial crime risk profile and implement adequate policies, procedures and controls to mitigate and manage the identified risks. Suspected bribery and corruption can be reported using our Raise Your Concern function, described above on page 178. Monitoring the effectiveness of policies and actions While we have not published formal targets related to the prevention and detection of corruption and bribery, we have a dedicated testing and monitoring function in Group Compliance, which supports and delivers various compo- nents of the Group Compliance risk management frame- work. This includes assessing risks, testing and monitoring processes and controls, and supporting the development of risk indicators and active risk management in the first line of defence. Financial crime prevention Countries across the world are facing rising economic and social costs due to human trafficking, terrorism, corruption, drug smuggling, tax evasion and other forms of illegal activity. At Nordea, we take our responsibility towards our customers and society seriously. We are committed to complying with all applicable regulation related to finan- cial crime prevention and have built strong defences to prevent our products and services from being used for unlawful purposes. Actions and resources related to financial crime prevention We are continuously developing and maintaining tools to manage financial crime risk, understand and monitor our customer relationships and behaviour, monitor suspicious activity and report to relevant authorities when red lines are crossed. Our annual Financial Crime Enterprise Risk Assessment helps us identify and assess the financial crime risks to which we are exposed. To ensure effective financial crime risk management and controls, we have clearly defined roles and responsibilities. Our customer-facing employees and financial crime domain expert units carry out daily risk management activities based on our policies, instructions and guidelines related to financial crime prevention. They also develop and maintain the controls required to carry out effective financial crime risk management. We have over 3,400 employees working on combatting money laundering, sanctions evasion, terrorist financing and fraud within our financial crime expertise domains: know your customer, transaction monitoring, sanctions, and fraud prevention. Our know your customer (KYC) framework ensures we know the customers with whom we have established a business relationship, what types of customers they are, the risk of conducting business with them, the nature of their business, their sources of wealth and funds, and the purpose of their transactions. A robust KYC process is key to securing strong anti-money laundering and counter ter- rorist financing capabilities. Our KYC functions enable us not only to know our customers but also – importantly – to provide them with products and services in a way that is safe, compliant and cost-effective, while delivering a good customer experience. ===== SIDA 181 ===== Nordea Annual Report 2025 180 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G1 Business conduct, cont. We have several million customers and, as such, handle billions of transactions every year. Our Transaction Monitoring function is tasked with detecting money laun- dering, terrorist financing and tax evasion through ongo- ing customer activity monitoring on behalf of our business units. In 2025 3.6 billion transactions were monitored. Any suspicious activity, transactions and/or behaviour identi- fied will trigger internal alerts, potentially followed by investigations and ultimate reporting to the authorities. Sanctions are foreign policy tools aimed at changing behaviour by putting pressure on political decision-mak- ers, increasing the cost of doing business or restricting business completely. They can be a response to threats to international peace and security; violations of human rights; acts of genocide; or the proliferation of weapons of mass destruction. They can also be a means to promote democratic principles. We are responsible for ensuring that we do not violate relevant sanctions laws and regula- tions and that our products and services are not, know- ingly or inadvertently, used in violation of these laws and regulations. As such, we adhere to the EU, UN, UK and US sanctions regimes, including sanctions programmes related to Russia, on a Group-wide basis. We have also adopted internal guidelines to address risks stemming from specific geographic areas, such as Afghanistan, Belarus, Crimea (including Sevastopol), the Democratic People’s Republic of North Korea, Donetsk, Iran, Kherson, Luhansk, Russia, Syria and Zaporizhzhia. Fraud prevention at Nordea focuses on safe and user- friendly authentication solutions for customers, safety limita- tions built into products and services, fraud detection tools development, and increasing fraud intelligence and aware- ness. Qualitative insights from customers and colleagues and data analysis continuously feed into our fraud preven- tion work, helping us to bolster our fraud detection strate- gies and improve customer awareness campaigns. More information on our work to increase fraud awareness and protect our customers and wider society against fraud can be found in “S4 Consumers and end users” on pages 173–174. We engage with authorities across the Nordics to share experience and support society in combatting financial crime. This engagement includes collaboration with the police and financial intelligence units, for example through the Operational Danish Intelligence Network (ODIN) in Denmark and the Swedish Anti-Money Laundering Intelligence Task Force (SAMLIT) in Sweden. Monitoring the effectiveness of policies and actions While we have not published formal targets related to financial crime prevention, we internally monitor (i) employee and third party awareness of our policies and (ii) the effectiveness of our actions in mitigating financial crime risk. We do so through our financial crime Maturity Framework Reporting approach. This is aimed at providing management with accurate status updates – via different sets of measures – on our financial crime defence so they can make informed decisions regarding any actions needed. The measures are shared with and can be chal- lenged by relevant decision-making bodies, including the Compliance, Conduct and Product Committee; the Group Leadership Team; the Board Risk Committee; and the Board of Directors. Cybersecurity Cybersecurity is a priority for us as the financial infrastruc- ture in the Nordics is increasingly subject to complex and targeted cyberattacks. These attacks are designed not only to disrupt digital services but also to create uncer- tainty and erode trust. With the rapidly evolving threat landscape and fast pace of technological change, a strong cybersecurity strategy is critical – not only to protect sys- tems and data, but also to safeguard customers and main- tain trust, resilience and the long-term operational conti- nuity of critical infrastructure. Actions and resources related to cybersecurity Our approach to cybersecurity involves developing and maintaining a strong information security management system (ISMS) to ensure the confidentiality, integrity and availability of proprietary information and information entrusted to us. Our ISMS is based on recognised industry best practices such as the ISO 27000 and the frameworks provided by the National Institute of Standards and Technology (NIST). We must also comply with financial industry regulations, including European Banking Authority guidelines, and other relevant European legislation introducing specific information security requirements. Our ISMS is supported by company-wide protocols, policies and guidelines, including supplier instructions, which ensure we meet reg- ulatory requirements and maintain effective risk control. Our security culture is built on clear accountabilities, ongoing awareness programmes, and well-defined proce- dures for gathering threat intelligence and detecting and responding to cybersecurity incidents. Where our cybersecurity strategy is concerned, we have defined three guiding principles to steer our decision-mak- ing and inform future initiatives supporting our security ambitions. These guiding principles are (i) advance with the implementation of our Zero Trust cybersecurity frame- work, (ii) increase cybersecurity maturity to reduce the risk of downtime and business disruption, and (iii) adopt AI and automation. The principles are interconnected and complement each other. While the guiding principles provide direction, threat themes help us prioritise future initiatives. We identify these by monitoring the existing threat landscape and analysing evolving threats. The landscape is constantly changing but the latest insights gained have enabled us to identify three main themes to focus on: distributed deni- al-of-service attacks, insider threats, and third party risk management. In 2025 we invested significant resources in maintaining and upgrading our security controls to keep pace with the evolving geopolitical situation and regulatory expectations and ensure a safe and secure service for customers. Monitoring the effectiveness of policies and actions While we have not published formal targets relating to cybersecurity, our three lines of defence regularly test whether the cyber controls we have implemented to ensure policy compliance and operational security are working as designed. These tests include simulated cyber- attacks. We also monitor the effectiveness of these con- trols and arrange regular independent external assess- ments to benchmark our control performance. Our three guiding principles for cybersecurity Advance Zero Trust Advance with the implementation of our Zero Trust framework to further improve overall security Increase cyber maturity Mature our capabilities to be within our risk appetite and on a par with EU peers or at Tier 3 in the NIST Cybersecurity Framework Adopt AI and automation Enhance our AI and automation capabilities to defend against growing threat actor capabilities ===== SIDA 182 ===== Nordea Annual Report 2025 181 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Appendix (EU Taxonomy) Table 4 – 1. Assets for the calculation of GAR (EURm) Stock Turnover The table provides information on the EU Taxonomy eligibility and alignment of our stock of assets within the scope of the GAR disclosures at the end of the year. Note: Cells shaded in grey represent information that is not subject to disclosure. 31 December 2025 Non- assessed exposures Stock EURm Total [gross] carrying amount1 Of which Taxonomy- eligible Of which Tax onomy- aligned Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Of which financing non-material activities of counterparties2 5 Of which exposures financing counterparties reporting in accordance with Article 7(9)5 Of which not assessed considered non-material by the credit institution3 Climate Change Miti- gation (CCM) Climate Change Adap- tation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosys- tems (BIO) 1 GAR – Covered assets in both numer ator and denominator 257,042 184,320 16,001 15,943 4 0 55 0 0 13,206 420 353 0 – – 0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 252,497 183,154 15,590 15,531 4 0 55 0 0 13,206 319 299 0 – – 0 3 Financial undertakings 29,586 13,509 1,307 1,302 4 0 0 0 0 0 78 18 0 – – 0 4 Loans and advances 5,847 1,637 115 114 1 0 0 0 0 0 16 4 0 – – 0 5 Debt securities, including UoP 23,677 11,858 1,190 1,187 3 0 0 0 0 0 62 14 0 – – 0 6 Equity instruments 61 15 1 1 0 0 0 0 0 0 0 0 – – 0 7 Non-financial undertakings 17,693 6,240 1,078 1,023 0 0 54 0 0 0 241 280 0 – 0 8 Loans and advances 17,458 6,160 1,051 997 0 0 54 0 0 0 241 273 0 – 0 9 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 – 0 10 Equity instruments 235 80 27 27 0 0 0 0 0 0 7 0 – 0 11 Households 197,357 163,406 13,206 13,206 0 0 13,206 0 0 0 – 0 12 of which loans collateralised by residential immovable property 174,742 159,488 13,194 13,194 0 0 13,194 0 0 0 – 0 13 of which building renovation loans 142 142 0 0 0 0 0 0 0 0 – 0 14 of which motor vehicle loans 4,048 3,653 0 0 0 0 0 0 – 0 15 Local governments financing 7,862 0 0 0 0 0 0 0 0 0 0 0 0 – 0 16 Housing financing 880 0 0 0 0 0 0 0 0 0 – 0 17 Other local government financing 6,981 0 0 0 0 0 0 0 0 0 0 0 0 – 0 18 Collateral obtained by taking possession: residential and commercial immovable properties 2 0 0 0 0 0 0 0 0 0 – 0 19 Exposures included on a voluntary basis4 4,543 1,165 411 411 0 0 0 0 0 0 101 55 0 20 Total GAR assets 257,042 21 Assets not covered for GAR calculation 298,875 22 Central governments and Supranational issuers 10,858 23 Central banks exposure 44,647 24 Trading book 95,902 25 Undertakings and entities not subject to CSRD 128,013 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 118,590 27 Loans and advances 109,536 28 of which loans collateralised by commercial immovable property 26,238 29 of which building renovation loans 0 30 Debt securities 6,403 31 Equity instruments 2,650 32 Non-EU country counterparties not subject to CSRD disclosure obligations 9,423 33 Loans and advances 8,632 34 Debt securities 791 35 Equity instruments 0 36 Derivatives 2,280 37 On demand interbank loans 0 38 Cash and cash-related assets 222 39 Other categories of assets (e.g. Goodwill, commodities etc.) 16,952 40 Total assets 555,917 Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 1,781 – – – – – – – – – – – 1,781 – – 1,781 42 Assets under management6 550 – – – – – – – – – – – 550 – – 550 43 Of which debt securities 0 – – – – – – – – – – – 0 – – 0 44 Of which equity instruments 550 – – – – – – – – – – – 550 – – 550 1) Exposur e is defined as exposure for on-balance sheet items, with an adjustment for exposures reported at fair value ( Nordea Realkreditaktieselskab). 2) In ac cordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 3) In ac cordance with Article 4(1a) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 4) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 5) At the time o f the 2025 disclosure, this data did not yet exist and so could not be included. 6) The se assets under management (AuM) represent mainly direct equity investments through our Private Banking Portfolio Management service (PBPM). PBPM primarily invests through funds, which are fully captured in the asset managers template. These AuM are thus deemed to be non-material. ===== SIDA 183 ===== Nordea Annual Report 2025 182 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 5 – 1. Assets for the calculation of GAR (EURm) Stock Capex The table provides information on the EU Taxonomy eligibility and alignment of our stock of assets within the scope of the GAR disclosures at the end of the year. 31 December 2025 Non- assessed exposures Stock EURm Total [gross] carrying amount1 Of which Taxonomy- eligible Of which Tax onomy- aligned Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Of which financing non-material activities of counterparties2 5 Of which exposures financing counterparties reporting in accordance with Article 7(9)5 Of which not assessed considered non-material by the credit institution3 Climate Change Miti- gation (CCM) Climate Change Adap- tation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosys- tems (BIO) 1 GAR – Covered assets in both numer ator and denominator 257,042 185,995 16,481 16,449 3 0 29 0 0 13,206 409 410 0 – – 0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 252,497 185,319 16,144 16,111 3 0 29 0 0 13,206 408 294 0 – – 0 3 Financial undertakings 29,586 13,758 1,307 1,307 0 0 0 0 0 0 76 21 0 – – 0 4 Loans and advances 5,847 2,364 115 114 0 0 0 0 0 0 15 4 0 – – 0 5 Debt securities, including UoP 23,677 11,381 1,191 1,191 0 0 0 0 0 0 60 17 0 – – 0 6 Equity instruments 61 13 1 1 0 0 0 0 0 0 0 0 – – 0 7 Non-financial undertakings 17,693 8,154 1,631 1,599 3 0 29 0 0 0 332 273 0 – 0 8 Loans and advances 17,458 8,005 1,599 1,567 3 0 29 0 0 0 329 264 0 – 0 9 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 – 0 10 Equity instruments 235 149 32 32 0 0 0 0 0 3 9 0 – 0 11 Households 197,357 163,406 13,206 13,206 0 0 13,206 0 0 0 – 0 12 of which loans collateralised by residential immovable property 174,742 159,488 13,194 13,194 0 0 13,194 0 0 0 – 0 13 of which building renovation loans 142 142 0 0 0 0 0 0 0 0 – 0 14 of which motor vehicle loans 4,048 3,653 0 0 0 0 0 0 – 0 15 Local governments financing 7,862 0 0 0 0 0 0 0 0 0 0 0 0 – 0 16 Housing financing 880 0 0 0 0 0 0 0 0 0 – 0 17 Other local government financing 6,981 0 0 0 0 0 0 0 0 0 0 0 0 – 0 18 Collateral obtained by taking possession: residential and commercial immovable properties 2 0 0 0 0 0 0 0 0 0 – 0 19 Exposures included on a voluntary basis4 4,543 676 337 337 0 0 0 0 0 0 2 115 0 20 Total GAR assets 257,042 21 Assets not covered for GAR calculation 298,875 22 Central governments and Supranational issuers 10,858 23 Central banks exposure 44,647 24 Trading book 95,902 25 Undertakings and entities not subject to CSRD 128,013 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 118,590 27 Loans and advances 109,536 28 of which loans collateralised by commercial immovable property 26,238 29 of which building renovation loans 0 30 Debt securities 6,403 31 Equity instruments 2,650 32 Non-EU country counterparties not subject to CSRD disclosure obligations 9,423 33 Loans and advances 8,632 34 Debt securities 791 35 Equity instruments 0 36 Derivatives 2,280 37 On demand interbank loans 0 38 Cash and cash-related assets 222 39 Other categories of assets (e.g. Goodwill, commodities etc.) 16,952 40 Total assets 555,917 Off-balance sheet exposures (stock) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 1,781 – – – – – – – – – – – 1,781 – – 1,781 42 Assets under management6 550 – – – – – – – – – – – 550 – – 550 43 Of which debt securities 0 – – – – – – – – – – – 0 – – 0 44 Of which equity instruments 550 – – – – – – – – – – – 550 – – 550 1) Exposur e is defined as exposure for on-balance sheet items, with an adjustment for exposures reported at fair value ( Nordea Realkreditaktieselskab). 2) In ac cordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 3) In ac cordance with Article 4(1a) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 4) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 5) At the time o f the 2025 disclosure, this data did not yet exist and so could not be included. 6) The se assets under management (AuM) represent mainly direct equity investments through our Private Banking Portfolio Management service (PBPM). PBPM primarily invests through funds, which are fully captured in the asset managers template. These AuM are thus deemed to be non-material. ===== SIDA 184 ===== Nordea Annual Report 2025 183 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 6 – 1. Assets for the calculation of GAR (EURm) Flow Turnover The table provides information on the EU Taxonomy eligibility and alignment of our assets within the scope of the GAR disclosures based on the flow of newly incurred exposures during the year. 31 December 2025 Non- assessed exposures Flow EURm Total [gross] carrying amount1 Of which Taxonomy- eligible Of which Tax onomy- aligned Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Of which financing non-material activities of counterparties2 5 Of which exposures financing counterparties reporting in accordance with Article 7(9)5 Of which not assessed considered non-material by the credit institution3 Climate Change Miti- gation (CCM) Climate Change Adap- tation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosys- tems (BIO) 1 GAR – Covered assets in both numer ator and denominator 59,649 38,455 3,059 3,016 2 0 41 0 0 1,957 169 156 0 – – 0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 58,906 38,227 2,942 2,899 2 0 41 0 0 1,957 169 156 0 – – 0 3 Financial undertakings 12,217 4,546 491 488 2 0 0 0 0 0 51 8 0 – – 0 4 Loans and advances 5,087 1,351 114 113 1 0 0 0 0 0 16 4 0 – – 0 5 Debt securities, including UoP 7,130 3,195 376 375 2 0 0 0 0 0 36 5 0 – – 0 6 Equity instruments 0 0 0 0 0 0 0 0 0 0 0 0 – – 0 7 Non-financial undertakings 9,283 3,043 495 455 0 0 40 0 0 0 118 148 0 – 0 8 Loans and advances 9,278 3,043 495 455 0 0 40 0 0 0 118 148 0 – 0 9 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 – 0 10 Equity instruments 4 0 0 0 0 0 0 0 0 0 0 0 – 0 11 Households 35,531 30,638 1,957 1,957 0 0 1,957 0 0 0 – 0 12 of which loans collateralised by residential immovable property 31,711 28,938 1,951 1,951 0 0 1,951 0 0 0 – 0 13 of which building renovation loans 36 36 0 0 0 0 0 0 0 0 – 0 14 of which motor vehicle loans 1,576 1,576 0 0 0 0 0 0 – 0 15 Local governments financing 1,875 0 0 0 0 0 0 0 0 0 0 0 0 – 0 16 Housing financing 821 0 0 0 0 0 0 0 0 0 – 0 17 Other local government financing 1,054 0 0 0 0 0 0 0 0 0 0 0 0 – 0 18 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 0 0 0 0 0 0 – 0 19 Exposures included on a voluntary basis4 743 228 117 117 0 0 0 0 0 0 0 0 0 20 Total GAR assets 59,649 21 Assets not covered for GAR calculation 69,230 22 Central governments and Supranational issuers 1,109 23 Central banks exposure 6,188 24 Trading book 7,700 25 Undertakings and entities not subject to CSRD 52,943 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 45,892 27 Loans and advances 44,858 28 of which loans collateralised by commercial immovable property 13,376 29 of which building renovation loans 0 30 Debt securities 747 31 Equity instruments 287 32 Non-EU country counterparties not subject to CSRD disclosure obligations 7,051 33 Loans and advances 7,020 34 Debt securities 31 35 Equity instruments 0 36 Derivatives 14 37 On demand interbank loans 0 38 Cash and cash-related assets 1 39 Other categories of assets (e.g. Goodwill, commodities etc.) 1,276 40 Total assets 128,879 Off-balance sheet exposures (flow) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 27 – – – – – – – – – – – 27 – – 27 42 Assets under management6 0 – – – – – – – – – – – 0 – – 0 43 Of which debt securities 0 – – – – – – – – – – – 0 – – 0 44 Of which equity instruments 0 – – – – – – – – – – – 0 – – 0 1) Exposur e is defined as exposure for on-balance sheet items, with an adjustment for exposures reported at fair value ( Nordea Realkreditaktieselskab). 2) In ac cordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 3) In ac cordance with Article 4(1a) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 4) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 5) At the time o f the 2025 disclosure, this data did not yet exist and so could not be included. 6) The se assets under management (AuM) represent mainly direct equity investments through our Private Banking Portfolio Management service (PBPM). PBPM primarily invests through funds, which are fully captured in the asset managers template. These AuM are thus deemed to be non-material. ===== SIDA 185 ===== Nordea Annual Report 2025 184 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 7 – 1. Assets for the calculation of GAR (EURm) Flow Capex The table provides information on the EU Taxonomy eligibility and alignment of our assets within the scope of the GAR disclosures based on the flow of newly incurred exposures during the year. 31 December 2025 Non- assessed exposures Flow EURm Total [gross] carrying amount1 Of which Taxonomy- eligible Of which Tax onomy- aligned Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Of which financing non-material activities of counterparties2 5 Of which exposures financing counterparties reporting in accordance with Article 7(9)5 Of which not assessed considered non-material by the credit institution3 Climate Change Miti- gation (CCM) Climate Change Adap- tation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosys- tems (BIO) 1 GAR – Covered assets in both numer ator and denominator 59,649 40,217 3,432 3,408 2 0 22 0 0 1,957 195 127 0 – – 0 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 58,906 39,989 3,327 3,303 2 0 22 0 0 1,957 193 127 0 – – 0 3 Financial undertakings 12,217 5,244 489 489 0 0 0 0 0 0 50 11 0 – – 0 4 Loans and advances 5,087 2,052 114 114 0 0 0 0 0 0 15 4 0 – – 0 5 Debt securities, including UoP 7,130 3,192 375 375 0 0 0 0 0 0 34 7 0 – – 0 6 Equity instruments 0 0 0 0 0 0 0 0 0 0 0 0 – – 0 7 Non-financial undertakings 9,283 4,107 881 857 2 0 22 0 0 0 144 117 0 – 0 8 Loans and advances 9,278 4,104 879 856 2 0 22 0 0 0 144 117 0 – 0 9 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 – 0 10 Equity instruments 4 3 2 2 0 0 0 0 0 0 0 0 – 0 11 Households 35,531 30,638 1,957 1,957 0 0 1,957 0 0 0 – 0 12 of which loans collateralised by residential immovable property 31,711 28,938 1,951 1,951 0 0 1,951 0 0 0 – 0 13 of which building renovation loans 36 36 0 0 0 0 0 0 0 0 – 0 14 of which motor vehicle loans 1,576 1,576 0 0 0 0 0 0 – 0 15 Local governments financing 1,875 0 0 0 0 0 0 0 0 0 0 0 0 – 0 16 Housing financing 821 0 0 0 0 0 0 0 0 0 – 0 17 Other local government financing 1,054 0 0 0 0 0 0 0 0 0 0 0 0 – 0 18 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 0 0 0 0 0 0 – 0 19 Exposures included on a voluntary basis4 743 228 106 105 0 0 0 0 0 0 2 0 0 20 Total GAR assets 59,649 21 Assets not covered for GAR calculation 69,230 22 Central governments and Supranational issuers 1,109 23 Central banks exposure 6,188 24 Trading book 7,700 25 Undertakings and entities not subject to CSRD 52,943 26 SMEs and undertakings (other than SMEs) not subject to CSRD disclosure obligations 45,892 27 Loans and advances 44,858 28 of which loans collateralised by commercial immovable property 13,376 29 of which building renovation loans 0 30 Debt securities 747 31 Equity instruments 287 32 Non-EU country counterparties not subject to CSRD disclosure obligations 7,051 33 Loans and advances 7,020 34 Debt securities 31 35 Equity instruments 0 36 Derivatives 14 37 On demand interbank loans 0 38 Cash and cash-related assets 1 39 Other categories of assets (e.g. Goodwill, commodities etc.) 1,276 40 Total assets 128,879 Off-balance sheet exposures (flow) to Undertakings subject to CSRD disclosure obligations and local governments 41 Financial guarantees 27 – – – – – – – – – – – 27 – – 27 42 Assets under management6 0 – – – – – – – – – – – 0 – – 0 43 Of which debt securities 0 – – – – – – – – – – – 0 – – 0 44 Of which equity instruments 0 – – – – – – – – – – – 0 – – 0 1) Exposur e is defined as exposure for on-balance sheet items, with an adjustment for exposures reported at fair value ( Nordea Realkreditaktieselskab). 2) In ac cordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 3) In ac cordance with Article 4(1a) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 4) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 5) At the time o f the 2025 disclosure, this data did not yet exist and so could not be included. 6) The se assets under management (AuM) represent mainly direct equity investments through our Private Banking Portfolio Management service (PBPM). PBPM primarily invests through funds, which are fully captured in the asset managers template. These AuM are thus deemed to be non-material. ===== SIDA 186 ===== Nordea Annual Report 2025 185 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 8 – 2. GAR sector information (EURm) Turnover The table provides information on the proportion of our Taxonomy-eligible and Taxonomy-aligned exposures in the banking book to sectors covered in the Taxonomy. The table includes the top 10 sectors based on total exposure. 31 December 2025 Breakdown by sector - NACE 4 digits level (code and label) Total [Gross] carrying amount Of which Taxonomy eligible Of which Taxonomy aligned Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Eco- systems (BIO) 1 L.68.20 – Renting and operating of own or leased real estate 2,344 2,070 231 231 0 0 0 0 0 2 C.26.51 – Manufacture of instruments and appliances for measuring, testing and navigation 953 58 0 0 0 0 0 0 0 3 C.29.10 – Manufacture of motor vehicles 675 519 0 0 0 0 0 0 0 4 C.26.60 – Manufacture of irradiation, electromedical and electrotherapeutic equipment 629 560 0 0 0 0 0 0 0 5 C.32.50 – Manufacture of medical and dental instruments and supplies 591 51 4 0 0 0 4 0 0 6 C.32.99 – Other manufacturing n.e.c. 409 188 0 0 0 0 0 0 0 7 J.62.02 – Computer consultancy activities 348 103 7 7 0 0 0 0 0 8 H.52.29 – Other transportation support activities 343 15 1 1 0 0 0 0 0 9 H.50.20 – Sea and coastal freight water transport 336 274 23 23 0 0 0 0 0 10 C.28.25 – Manufacture of non-domestic cooling and ventilation equipment 309 137 30 30 0 0 0 0 0 11 Nuclear activities 1 72 0 0 12 Fossil gas activities2 83 0 0 13 Of which non-assessed exposures3 0 1) R eferred to in Sections 4.26, 4,27, and 4.28 of Annexes I and II to Delegated Regulation 2021/2139 as amended by Delegated Regulation 2022/1214. 2) R eferred to in Sections 4.29, 4,30, and 4.31 of Annexes I and II to Delegated Regulation 2021/2139 as amended by Delegated Regulation 2022/1214. 3) In ac cordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. At the time of the 2025 disclosure, this data did not yet exist and so could not be included. Notes: Rows 1–10 include information on the Taxonomy-eligible and Taxonomy-aligned exposures of counterparties which have a principal NACE code identified in a delegated act to the Taxonomy Regulation. Rows 11 and 12 present the aggregate exposure to counterparties’ nuclear and gas activities and may include exposures that do not represent the counterparty’s principal activity. Exposures to financial counterparties are excluded from the scope of this template. Table 9 – 2. GAR sector information (EURm) Capex The table provides information on the proportion of our EU Taxonomy-eligible and EU Taxonomy-aligned exposures in the banking book to sectors covered in the Taxonomy. The table includes the top 10 sectors based on total exposure. 31 December 2025 Breakdown by sector - NACE 4 digits level (code and label) Total [Gross] carrying amount Of which Taxonomy eligible Of which Taxonomy aligned Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Eco- systems (BIO) 1 L.68.20 – Renting and operating of own or leased real estate 2,344 2,160 539 539 0 0 0 0 0 2 C.26.51 – Manufacture of instruments and appliances for measuring, testing and navigation 953 45 0 0 0 0 0 0 0 3 C.29.10 – Manufacture of motor vehicles 675 593 0 0 0 0 0 0 0 4 C.26.60 – Manufacture of irradiation, electromedical and electrotherapeutic equipment 629 534 0 0 0 0 0 0 0 5 C.32.50 – Manufacture of medical and dental instruments and supplies 591 213 55 51 2 0 2 0 0 6 C.32.99 – Other manufacturing n.e.c. 409 41 3 3 0 0 0 0 0 7 J.62.02 – Computer consultancy activities 348 134 31 31 0 0 0 0 0 8 H.52.29 – Other transportation support activities 343 166 4 4 0 0 0 0 0 9 H.50.20 – Sea and coastal freight water transport 336 289 99 99 0 0 0 0 0 10 C.28.25 – Manufacture of non-domestic cooling and ventilation equipment 309 127 33 33 0 0 0 0 0 11 Nuclear activities 1 72 0 0 12 Fossil gas activities2 83 0 0 13 Of which non-assessed exposures3 0 1) R eferred to in Sections 4.26, 4,27, and 4.28 of Annexes I and II to Delegated Regulation 2021/2139 as amended by Delegated Regulation 2022/1214. 2) R eferred to in Sections 4.29, 4,30, and 4.31 of Annexes I and II to Delegated Regulation 2021/2139 as amended by Delegated Regulation 2022/1214. 3) In ac cordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. At the time of the 2025 disclosure, this data did not yet exist and so could not be included. Notes: Rows 1–10 include information on the Taxonomy-eligible and Taxonomy-aligned exposures of counterparties which have a principal NACE code identified in a delegated act to the Taxonomy Regulation. Rows 11 and 12 present the aggregate exposure to counterparties’ nuclear and gas activities and may include exposures that do not represent the counterparty’s principal activity. Exposures to financial counterparties are excluded from the scope of this template. ===== SIDA 187 ===== Nordea Annual Report 2025 186 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 10 – 3. GAR KPI Stock (%) Turnover The table provides information on the proportions of our Taxonomy-eligible and Taxonomy-aligned assets relative to our total covered assets. The GAR KPI stock is based on the data disclosed in Template 1. 31 December 2025 Proportion of Taxonomy aligned in Taxonomy eligible Non-assessed exposures1 % (compared to corresponding total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 1 GAR – Covered assets in both numer ator and denominator 71.7% 6.2% 6.2% 0.0% 0.0% 0.0% 0.0% 0.0% 5.1% 0.2% 0.1% 8.7% 0.0% 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 72.5% 6.2% 6.2% 0.0% 0.0% 0.0% 0.0% 0.0% 5.2% 0.1% 0.1% 8.5% 0.0% 3 Financial undertakings 45.7% 4.4% 4.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 9.7% 0.0% 4 Loans and advances 28.0% 2.0% 1.9% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 7.0% 0.0% 5 Debt securities, including UoP 50.1% 5.0% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 10.0% 0.0% 6 Equity instruments 23.9% 2.0% 1.8% 0.2% 0.0% 0.0% 0.0% 0.0% 0.6% 0.1% 7.7% 0.0% 7 Non-financial undertakings 35.3% 6.1% 5.8% 0.0% 0.0% 0.3% 0.0% 0.0% 0.0% 1.4% 1.6% 17.3% 0.0% 8 Loans and advances 35.3% 6.0% 5.7% 0.0% 0.0% 0.3% 0.0% 0.0% 0.0% 1.4% 1.6% 17.1% 0.0% 9 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10 Equity instruments 33.9% 11.3% 11.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3.1% 33.3% 0.0% 11 Households 82.8% 6.7% 6.7% 0.0% 0.0% 6.7% 0.0% 0.0% 8.1% 0.0% 12 of which loans collateralised by residential immovable property 91.3% 7.6% 7.6% 0.0% 0.0% 7.6% 0.0% 0.0% 8.3% 0.0% 13 of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 14 of which motor vehicle loans 90.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15 Local governments financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 16 Housing financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 17 Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18 Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 19 Exposures included on a voluntary basis2 25.7% 9.1% 9.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.2% 1.2% 35.3% 20 GAR – Total GAR assets 71.7% 6.2% 6.2% 0.0% 0.0% 0.0% 0.0% 0.0% 5.1% 0.2% 0.1% 8.7% 0.0% 1) In ac cordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 2) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. Note: Figures are compared against the corresponding line item totals. ===== SIDA 188 ===== Nordea Annual Report 2025 187 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 11 – 3. GAR KPI Stock (%) Capex The table provides information on the proportions of our Taxonomy-eligible and Taxonomy-aligned assets relative to our total covered assets. The GAR KPI stock is based on the data disclosed in Template 1. 31 December 2025 Proportion of Taxonomy aligned in Taxonomy eligible Non-assessed exposures1 % (compared to corresponding total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 1 GAR – Covered assets in both numer ator and denominator 72.4% 6.4% 6.4% 0.0% 0.0% 0.0% 0.0% 0.0% 5.1% 0.2% 0.2% 8.9% 0.0% 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 73.4% 6.4% 6.4% 0.0% 0.0% 0.0% 0.0% 0.0% 5.2% 0.2% 0.1% 8.7% 0.0% 3 Financial undertakings 46.5% 4.4% 4.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 9.5% 0.0% 4 Loans and advances 40.4% 2.0% 2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 4.8% 0.0% 5 Debt securities, including UoP 48.1% 5.0% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 10.5% 0.0% 6 Equity instruments 21.8% 2.1% 1.9% 0.2% 0.0% 0.0% 0.0% 0.0% 0.6% 0.1% 9.5% 0.0% 7 Non-financial undertakings 46.1% 9.2% 9.0% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 1.9% 1.5% 20.0% 0.0% 8 Loans and advances 45.9% 9.2% 9.0% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 1.9% 1.5% 20.0% 0.0% 9 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10 Equity instruments 63.5% 13.6% 13.5% 0.1% 0.0% 0.0% 0.0% 0.0% 1.3% 3.7% 21.4% 0.0% 11 Households 82.8% 6.7% 6.7% 0.0% 0.0% 6.7% 0.0% 0.0% 8.1% 0.0% 12 of which loans collateralised by residential immovable property 91.3% 7.6% 7.6% 0.0% 0.0% 7.6% 0.0% 0.0% 8.3% 0.0% 13 of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 14 of which motor vehicle loans 90.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15 Local governments financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 16 Housing financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 17 Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18 Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 19 Exposures included on a voluntary basis2 14.9% 7.4% 7.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2.5% 49.9% 20 GAR – Total GAR assets 72.4% 6.4% 6.4% 0.0% 0.0% 0.0% 0.0% 0.0% 5.1% 0.2% 0.2% 8.9% 0.0% 1) In ac cordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 2) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. Note: Figures are compared against the corresponding line item totals. ===== SIDA 189 ===== Nordea Annual Report 2025 188 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 12 – 4. GAR KPI Flow (%) Turnover The table provides information on our GAR KPIs based on the flow of newly incurred exposures during the year relative to the total flow of new covered assets. The GAR KPI flow is based on the data disclosed in Template 1. 31 December 2025 Proportion of Taxonomy aligned in Taxonomy eligible Non-assessed exposures1 % (compared to corresponding total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 1 GAR - Covered assets in both numerator and denominator 64.5% 5.1% 5.1% 0.0% 0.0% 0.1% 0.0% 0.0% 3.3% 0.3% 0.3% 8.0% 0.0% 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 64.9% 5.0% 4.9% 0.0% 0.0% 0.1% 0.0% 0.0% 3.3% 0.3% 0.3% 7.7% 0.0% 3 Financial undertakings 37.2% 4.0% 4.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.4% 0.1% 10.8% 0.0% 4 Loans and advances 26.6% 2.2% 2.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 8.4% 0.0% 5 Debt securities, including UoP 44.8% 5.3% 5.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.1% 11.8% 0.0% 6 Equity instruments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 7 Non-financial undertakings 32.8% 5.3% 4.9% 0.0% 0.0% 0.4% 0.0% 0.0% 0.0% 1.3% 1.6% 16.3% 0.0% 8 Loans and advances 32.8% 5.3% 4.9% 0.0% 0.0% 0.4% 0.0% 0.0% 0.0% 1.3% 1.6% 16.3% 0.0% 9 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10 Equity instruments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 11 Households 86.2% 5.5% 5.5% 0.0% 0.0% 5.5% 0.0% 0.0% 6.4% 0.0% 12 of which loans collateralised by residential immovable property 91.3% 6.2% 6.2% 0.0% 0.0% 6.2% 0.0% 0.0% 6.7% 0.0% 13 of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 14 of which motor vehicle loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15 Local governments financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 16 Housing financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 17 Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18 Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 19 Exposures included on a voluntary basis 2 30.7% 15.8% 15.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 51.4% 20 GAR – Total GAR assets 64.5% 5.1% 5.1% 0.0% 0.0% 0.1% 0.0% 0.0% 3.3% 0.3% 0.3% 8.0% 0.0% 1) In ac cordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 2) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. Note: Figures are compared against the corresponding line item totals. ===== SIDA 190 ===== Nordea Annual Report 2025 189 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 13 – 4. GAR KPI Flow (%) Capex The table provides information on our GAR KPIs based on the flow of newly incurred exposures during the year relative to the total flow of new covered assets. The GAR KPI flow is based on the data disclosed in Template 1. 31 December 2025 Proportion of Taxonomy aligned in Taxonomy eligible Non-assessed exposures1 % (compared to corresponding total covered assets in the denominator) Taxonomy-eligible Taxonomy-aligned Breakdown per environmental objective Of which Use of Proceeds Of which transitional Of which enabling Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) 1 GAR - Covered assets in both numerator and denominator 67.4% 5.8% 5.7% 0.0% 0.0% 0.0% 0.0% 0.0% 3.3% 0.3% 0.2% 8.5% 0.0% 2 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 67.9% 5.6% 5.6% 0.0% 0.0% 0.0% 0.0% 0.0% 3.3% 0.3% 0.2% 8.3% 0.0% 3 Financial undertakings 42.9% 4.0% 4.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.4% 0.1% 9.3% 0.0% 4 Loans and advances 40.3% 2.2% 2.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.1% 5.5% 0.0% 5 Debt securities, including UoP 44.8% 5.3% 5.3% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.1% 11.8% 0.0% 6 Equity instruments 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 7 Non-financial undertakings 44.2% 9.5% 9.2% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 1.5% 1.3% 21.5% 0.0% 8 Loans and advances 44.2% 9.5% 9.2% 0.0% 0.0% 0.2% 0.0% 0.0% 0.0% 1.5% 1.3% 21.4% 0.0% 9 Debt securities, including UoP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10 Equity instruments 63.8% 37.8% 37.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 59.2% 0.0% 11 Households 86.2% 5.5% 5.5% 0.0% 0.0% 5.5% 0.0% 0.0% 6.4% 0.0% 12 of which loans collateralised by residential immovable property 91.3% 6.2% 6.2% 0.0% 0.0% 6.2% 0.0% 0.0% 6.7% 0.0% 13 of which building renovation loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 14 of which motor vehicle loans 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 15 Local governments financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 16 Housing financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 17 Other local government financing 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 18 Collateral obtained by taking possession: residential and commercial immovable properties 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 19 Exposures included on a voluntary basis 2 30.7% 14.2% 14.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 46.3% 20 GAR – Total GAR assets 67.4% 5.8% 5.7% 0.0% 0.0% 0.0% 0.0% 0.0% 3.3% 0.3% 0.2% 8.5% 0.0% 1) In ac cordance with Article 7(8) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 2) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. Note: Figures are compared against the corresponding line item totals. ===== SIDA 191 ===== Nordea Annual Report 2025 190 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other EU taxonomy, cont. Table 14 – Template for the KPI of Asset Managers This is a standard template for the disclosures required under Article 8 of Regulation (EU) 2020/852 (asset managers). Disclosure reference date Exposures % Million EUR 1 Total AUM 100% 255,999 2 Assets covered by the KPI 66.5% 170,260 % of covered assets % Turnover based % CapEx based 3 Taxonomy eligible 47.0% 21.7% 4 Nuclear activities1 0.5% 0.0% 5 Fossil gas activities2 0.3% 0.0% 6 Taxonomy aligned 5.9% 5.9% 7 Undertakings subject to Article 19a and 29a of Directive 2013/34/EU 3.3% 4.2% 8 of which Non-financial undertakings 2.4% 3.1% 9 of which Financial undertakings 0.9% 1.0% 10 Other covered counterparties and real estate assets 1.1% 1.1% 11 Exposures included on a voluntary basis3 1.6% 0.7% 12 Transitional activities 0.2% 0.2% 13 Enabling activities 1.9% 1.6% 14 Nuclear activities1 0.1% 0.0% 15 Fossil gas activities2 0.0% 0.0% Taxonomy aligned per objective % Turnover based % CapEx based 16 Climate Change Mitigation (CCM) 5.7% 5.8% 17 Climate Change Adaptation (CCA) 0.0% 0.0% 18 Water and marine resources (WTR) 0.0% 0.0% 19 Circular economy (CE) 0.2% 0.1% 20 Pollution (PPC) 0.0% 0.0% 21 Biodiversity and Ecosystems (BIO) 0.0% 0.0% 22 Non-assessed exposures 23 Exposures financing non-assessed non-material activities of counterparties6 0.0% 0.0% 24 Non-assessed exposures considered non-material by the reporting entity5 0.8% 0.8% 25 Exposures to counterparties reporting in accordance with Article 7(9) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/736 0.0% 0.0% Breakdown of covered assets % Million EUR 26 Undertakings subject to Article 19a and 29a of Directive 2013/34/EU 51.4% 87,547 27 of which Non-financial undertakings 26.1% 44,420 28 of which Financial undertakings 25.3% 43,128 29 Other covered counterparties and real estate assets 4.3% 7,339 30 Exposures included on a voluntary basis3 44.3% 75,373 1) R eferred to in Sections 4.26, 4.27, and 4.28 of Annexes I and II to Delegated Regulation 2021/2139 as amended by Delegated Regulation 2022/1214. 2) R eferred to in Sections 4.29, 4.30, and 4.31 of Annexes I and II to Delegated Regulation 2021/2139 as amended by Delegated Regulation 2022/1214. 3) In ac cordance with Article 7(3) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 4) in ac cordance with Article 7(8)(a) and (b) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 5) In ac cordance with Article 3(1a) of Delegated Regulation 2021/2178 as amended by Delegated Regulation 2026/73. 6) At the time o f the 2025 disclosure, this data did not yet exist and so could not be included. Note: In line with Regulation 2026/73, the methodology to calculate the GAR changed during 2025. Therefore, this KPI should not be compared with that of the previous year. For information, the 2024 reported KPIs were as follows: Turnover 2.2% and CapEx 2.8%. ===== SIDA 192 ===== Nordea Annual Report 2025 191 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Proposed distribution of earnings On 31 December 2025 Nordea Bank Abp’s distributable earnings, including profit for the financial year and after subtracting capitalised development expenses, were EUR 21,481,678,537.31, and other unrestricted equity, consisting of invested unrestricted equity, amounted to EUR 1,077,352,142.15. The Board of Directors proposes that the 24 March 2026 Annual General Meeting decide on a dividend payment of EUR 0.96 per share. The dividend would be paid from retained earnings. After a dividend payout of EUR 3,284,175,175.681, corresponding to approximately 68% of the net profit for the year, EUR 18,197,503,361.63 would be carried forward as distributable retained earnings. It is the assessment of the Board of Directors that the proposed div- idend is justifiable considering the demands with respect to the size of Nordea Bank Abp’s and the Group’s equity which are imposed by the nature, scope and risks associated with the business and Nordea Bank Abp’s and the Group’s need for consolidation, liquidity and financial position in general. The Board of Directors has also decided to propose that the Annual General Meeting authorise it to decide on the distribution of a mid-year dividend in 2026. The mid-year dividend amount is intended to be set at a level correspond- ing to approximately 50% of the Group’s net profit for the six-month period ending 30 June 2026, while being subject to a maximum total amount of EUR 3bn. The mid-year divi- dend is considered to form the first part of the total dividend distribution to be paid for the financial year 2026 under the company’s dividend policy. The intention is for the Group Board to decide on the mid-year dividend in conjunction with the interim report for the second quarter. The authori- sation for the payment of the mid-year dividend would remain in force until the beginning of the next Annual General Meeting. The dividends would be paid from retained earnings. Both payments would be distributed based on the annual accounts to be adopted for the financial year ended 31 December 2025. Dividends will not be paid to shares held by Nordea on each dividend record date, and therefore the final aggregate dividend payout will be determined by the number of outstanding shares in Nordea on the dividend record dates. For information on changes in the financial position of Nordea Bank Abp since the end of the financial period, see “Events after the financial period” below. No other signifi- cant events or material changes have taken place in the financial position of Nordea Bank Abp since the end of the financial period and the proposed dividend does not compromise Nordea Bank Abp’s solvency. According to the parent company’s balance sheet as at 31 December 2025 the unrestricted equity amounted to: EUR Invested unrestricted equity 1,077,352,142.15 Retained earnings2 16,740,125,857.80 Net profit for the year 4,741,552,679.51 Total 22,559,030,679.46 The Board of Directors proposes that earnings be distributed as follows (calculated based on the dividend of EUR 3,284,175,175.68 1): EUR Dividend paid to shareholders 3,284,175,175.68 Invested unrestricted equity 1,077,352,142.15 Retained earnings2 18,197,503,361.63 Total 22,559,030,679.46 1) Cal culated for Nordea Bank Abp’s outstanding shares and own shares bought and sold as part of market-making activities. Refer to Note P9.1. “Equity” for information on shares. 2) Capit alised development costs of EUR 1,600,019,874.55 have been subtracted from retained earnings. Invested unrestricted equity Retained earnings Net profit for the year Dividend paid to shareholders Retained earnings Invested unrestricted equity The dividend will be paid to shareholders who on the record date for dividend payment are recorded in Nordea’s shareholders’ register maintained by Euroclear Finland Oy in Finland, Euroclear Sweden AB in Sweden and VP Securities A/S in Denmark. Events after the financial period Share buy-backs and share cancellations Between 1 January 2026 and 31 January 2026, Nordea further acquired 8,063,849 shares, corresponding to a EUR 133,495,769.79 reduction of retained earnings, under its share buy-back programme which started on 18 December 2025 and will end no later than 8 May 2026. In February Nordea continued to acquire shares in accord- ance with the terms of the share buy-back programme. 6,187,862 treasury shares, which were held for capital optimisation purposes and acquired through share buy- backs, were cancelled in January. After the cancellation on 21 January 2026, the total number of shares in Nordea was 3,427,653,383. ===== SIDA 193 ===== Nordea Annual Report 2025 192 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Glossary Allocated equity Allocated Equity (AE) is a framework to allocate capital held by Nordea to its business areas. AE reflects Nordea’s anticipated equity in line with its capital policy to ensure sustainable, long-term capitalisation for the Nordea Group. To further align AE to accounting equity, CET1 deductions and other equity items are included in AE. Allowances in relation to credit-impaired loans (stage 3) Allowances for impaired loans (stage 3) divided by impaired loans measured at amortised cost (stage 3) before allowances. Allowances in relation to loans in stages 1 and 2 Allowances for non-impaired loans (stages 1 and 2) divided by non-impaired loans measured at amortised cost (stages 1 and 2) before allowances. Basic earnings per share Net profit for the year divided by the weighted average number of outstanding shares, non-controlling interests excluded. Cost-to-income ratio Total operating expenses divided by total operating income. CSRD Corporate Sustainability Reporting Directive (CSRD) modernises and strengthens the rules concerning the social and environmental information that companies have to report. EU law requires large companies and listed companies to publish regular reports on the social and environmental risks they face, and how their activities impact people and the environment. CVaR CVaR (Climate Value at Risk) is a methodology designed to provide a forward-looking and return-based valuation assessment to measure climate-related risks and opportu- nities in an investment portfolio. Diluted earnings per share Net profit for the year divided by the weighted average number of outstanding shares after full dilution, non- controlling interests excluded. EFRAG The European Financial Reporting Advisory Group (EFRAG) is a private association established in 2001 to serve the public interest. EFRAG plays a key role in developing European accounting standards and ensuring alignment with specific needs and concerns of European businesses and markets. The association’s role in sustaina- bility reporting has expanded with the introduction of CSRD and it acts as a technical adviser to the European Commission in the development of the European Sustainability Reporting Standards (ESRS). ENCORE ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) is a tool that helps organisations explore their exposure to nature-related risk and take the first steps to understand their dependencies and impacts on nature. EPC An energy performance certificate (EPC) is a rating scheme to summarise the energy efficiency of buildings or devices. In the European Union, EPCs are regulated by the Energy Performance of Buildings Directive 2010. Equity per share Equity as shown on the balance sheet after full dilution and non-controlling interests excluded divided by the number of shares after full dilution. Equity ratio Total equity as a percentage of total assets at the end of the year. ESRS The European Sustainability Reporting Standards (ESRS) were adopted under the Corporate Sustainability Reporting Directive (CSRD). They specify the information that an organisation must disclose about its material impacts, risks and opportunities as they relate to sustaina- bility topics. The ESRS are a core component of the EU’s sustainability agenda, intended to increase the transpar- ency and comparability of corporate sustainability reporting. GAR The Green Asset Ratio (GAR) KPI is the proportion of exposures which are taxonomy-aligned compared with Nordea’s total covered assets. The GAR is disclosed twice, once based on turnover and once based on CapEx. The turnover and CapEx KPIs represent the proportion of the exposure’s turnover/CapEx which is taxonomy-aligned. GDPR GDPR (the General Data Protection Regulation) is a regu- lation in EU law on data protection and privacy for all indi- vidual citizens of the EU and the European Economic Area (EEA). The GDPR primarily aims to provide individuals with control over their personal data and to simplify the regulatory environment for international business by uni- fying regulation within the EU. GHG Protocol GHG Protocol (the Greenhouse Gas Protocol) establishes global standardised frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations, value chains and mitigation actions. It is the most widely used GHG accounting standard in the world. Impairment rate (stage 3), gross Impaired loans (stage 3) before allowances divided by total loans measured at amortised cost before allowances. Impairment rate (stage 3), net Impaired loans (stage 3) after allowances divided by total loans measured at amortised cost before allowances. IPCC The Intergovernmental Panel on Climate Change (IPCC) is the United Nations body for assessing the science related to climate change. In October 2019 the IPCC released a special report on the impacts of global warming of 1.5°C above pre-industrial levels and related global GHG emis- sion pathways, in the context of strengthening the global response to the threat of climate change, sustainable development and efforts to eradicate poverty. Net loan loss ratio, amortised cost Net loan losses (annualised) divided by the closing balance of loans to the public (lending) measured at amortised cost. Non-employee A non-employee is a term used in the Sustainability Statement and refers to an individual indirectly working for the Nordea Group through an external resource sup- plier. This term derives from and is aligned with the ESRS, i.e. people provided by undertakings primarily engaged in “employment activities” (NACE Code N78). Employees and non-employees form Nordea’s own workforce. Non-servicing, not impaired Past due loans, not impaired due to future cash flows (included in loans, not impaired). ===== SIDA 194 ===== Nordea Annual Report 2025 193 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Glossary, cont. Own funds Own funds include the sum of Tier 1 capital and the sup- plementary capital consisting of subordinated loans, after deduction of the carrying amount of the shares in wholly- owned insurance companies and the potential deduction for expected shortfall. Paris Agreement At COP 21 in Paris, on 12 December 2015, parties to the United Nations Framework Convention on Climate Change (UNFCCC) reached a landmark agreement to combat climate change and to accelerate and intensify the actions and investments needed for a sustainable low-carbon future. The Paris Agreement brings all nations into a common cause to undertake ambitious efforts to combat climate change and adapt to its effects, with enhanced support to assist developing countries to do so. PCAF PCAF (Partnership for Carbon Accounting Financials) is a global partnership of financial institutions that work together to develop and implement a harmonised approach to assess and disclose the GHG emissions asso- ciated with the loans and investments. The harmonised accounting approach provides financial institutions with the starting point to set science-based targets and align portfolios with the Paris Agreement. Poseidon Principles The Poseidon Principles establish a framework for assess- ing and disclosing the climate alignment of ship finance portfolios. They set a benchmark for what it means to be a responsible bank in the maritime sector and provide actionable guidance on how to achieve this. PRI The PRI (Principles for Responsible Investment) is the world’s leading proponent of responsible investment, which provides understanding of the investment implications of ESG factors and supports incorporating these factors into investment and ownership decisions. Price to book Nordea’s stock market value relative to its book value of total equity. RCP Representative Concentration Pathways (RCP) are climate change scenarios to project future greenhouse gas con- centrations. These pathways (or trajectories) describe future greenhouse gas concentrations (not emissions) and have been formally adopted by the IPCC. Return on allocated equity Return on allocated equity (RoAE) is defined as operating profit after standard tax as a percentage of average allocated equity. Return on assets Net profit for the year as a percentage of total assets at the end of the year. Return on equity Net profit for the year as a percentage of average equity for the year. Additional Tier 1 capital, accounted for in equity, is classified as a financial liability in the calculation. Net profit for the period excludes non-controlling interests and interest expense on Additional Tier 1 capital (discre- tionary interest accrued). Average equity includes net profit for the year and dividend until paid, and excludes non-controlling interests and Additional Tier 1 capital. Risk exposure amount Total assets and off-balance sheet items valued on the basis of the credit and market risks as well as operational risks of the Group’s undertakings in accordance with regu- lations governing capital adequacy, excluding assets in insurance companies, the carrying amount of shares which have been deducted from the capital base and intangible assets. SBTi The Science Based Targets initiative (SBTi) is a corporate climate action organisation that enables companies and financial institutions worldwide to play their part in com- bating the climate crisis. SBTi defines and promotes best practice in emissions reductions and net zero targets in line with climate science. SFDR The EU Sustainable Finance Disclosure Regulation sets out how financial market participants have to disclose sustainability information. It is also designed to allow investors to properly assess how sustainability risks are integrated in the investment decision process, requiring asset managers to classify their funds depending on their level of sustainability. Tier 1 capital The Tier 1 capital of an institution consists of the sum of its Common Equity Tier 1 capital and Additional Tier 1 capital. Common Equity Tier 1 capital consists of share capital, invested unrestricted equity, retained earnings, other reserves and accumulated other comprehensive income, after considering regulatory deductions and adjustments. Additional Tier 1 capital consists of capital instruments that meet the applicable regulatory criteria after consider- ing regulatory deductions. Tier 1 capital ratio Tier 1 capital as a percentage of the risk exposure amount. The Common Equity Tier 1 capital ratio is defined as Common Equity Tier 1 capital as a percentage of the risk exposure amount. Total allowance rate (stages 1, 2 and 3) Total allowances divided by total loans measured at amortised cost before allowances. Total allowances in relation to impaired loans (provisioning ratio) Total allowances divided by impaired loans before allowances. Total capital ratio Own funds as a percentage of risk exposure amount. WACI Weighted average carbon intensity (WACI) is calculated as the greenhouse gas emissions of a debtor/issuer divided by the debtor’s/issuer’s total revenue and weighted by the value of the creditor’s/holder’s investment as a share of its total investment portfolio. ===== SIDA 195 ===== Nordea Annual Report 2025 194Nordea Annual Report 2025 Strategic report Our stakeholders Business areas OtherIntroduction Financial statementsBoard of Directors’ report TABLE OF CONTENTS Financial statements N ordea Group Financial statements Income statement ....................................................................................................195 Statement of comprehensive income .........................................................195 Balance sheet ............................................................................................................ 196 Statement of changes in equity ......................................................................197 Cash flow statement ..............................................................................................197 Notes to the financial statements G1 Accounting policies ............................................................................198 G2 Financial performance and returns ......................................... 200 G2.1 Segment reporting ..................................................................200 G2.2 Net interest income ................................................................. 202 G2.3 Net fee and commission income .................................... 202 G2.4 Net insurance result ................................................................204 G2.5 Total net result from items at fair value ....................204 G2.6 Other operating income .......................................................205 G2.7 Other expenses ..........................................................................205 G2.8 Regulatory fees ..........................................................................206 G2.9 Depreciation, amortisation and impairment charges of tangible and intangible assets ..............206 G2.10 Net loan losses ...........................................................................206 G2.11 Ta xes ................................................................................................. 207 G2.12 Earnings per share ...................................................................209 G3 Financial instruments .......................................................................210 G3.1 Recognition on and derecognition from the balance sheet .....................................................................210 G3.2 Transferred assets and obtained collateral .............210 G3.3 Classification and measurement .....................................211 G3.4 Fair value .........................................................................................215 G3.5 Offsetting ........................................................................................221 G3.6 Hedge accounting .................................................................... 222 G3.7 Financial instruments pledged as collateral ...........227 G3.8 Lo ans ..................................................................................................227 G3.9 Interest-bearing securities ................................................230 G3.10 S hares ...............................................................................................230 G3.11 Assets and deposits in pooled schemes and unit-linked investment contracts .........................230 G3.12 D erivatives ......................................................................................231 G3.13 Deposits by credit institutions ......................................... 232 G3.14 Deposits and borrowings from the public ............... 232 G3.15 Debt securities in issue ......................................................... 232 G3.16 Other liabilities ........................................................................... 232 G3.17 Subo rdinated liabilities ......................................................... 232 G4 Insurance contract liabilities ........................................................233 G5 Intangible and tangible assets ....................................................242 G5.1 Intangible assets ....................................................................... 242 G5.2 Properties and equipment ................................................. 243 G5.3 Investment properties ...........................................................244 G5.4 Leases................................................................................................247 G6 P rovisions ............................................................................................... 248 G7 Off-balance sheet items ..................................................................249 G7.1 Contingent liabilities ...............................................................249 G7.2 Commitments ..............................................................................249 G7.3 Assets pledged .........................................................................250 G8 Employee benefits and key management personnel remuneration ................................................................. 251 G8.1 Fixed and variable salaries .................................................251 G8.2 P ensions .......................................................................................... 252 G8.3 Share-based payment plans ............................................. 257 G8.4 Key management personnel remuneration ........... 262 G8.5 Gender distribution and number of employees ...265 G9 Scope of consolidation .................................................................... 266 G9.1 Consolidated entities .............................................................266 G9.2 Currency translation of foreign entities/ branches ......................................................................................... 267 G9.3 Investments in associated undertakings and joint ventures ..................................................................... 267 G9.4 Interest in structured entities ...........................................269 G9.5 Assets and liabilities held for sale ................................. 270 G9.6 A cquisitions .................................................................................. 270 G10 Other disclosures ................................................................................ 271 G10.1 Additional disclosures on the statement of changes in equity ................................................................271 G10.2 Additional disclosures on the cash flow statement ................................................................271 G10.3 Maturity analysis ....................................................................... 273 G10.4 Related party transactions .................................................275 G11 Risk and liquidity management ..................................................276 ===== SIDA 196 ===== Nordea Annual Report 2025 195 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Income statement EURm Note 2025 2024 Operating income Interest income calculated using the effective interest rate method 15,401 18,580 Other interest income 1,849 2,500 Interest expense -10,083 -13,486 Net interest income G2.2 7,167 7,594 Fee and commission income 4,216 4,064 Fee and commission expense -967 -907 Net fee and commission income G2.3 3,249 3,157 Insurance revenue 708 652 Insurance service expenses -460 -402 Net reinsurance result -6 -6 Net insurance revenue 242 244 Insurance finance income or expenses -2,299 -2,574 Return on assets backing insurance liabilities 2,299 2,583 Net insurance finance income or expenses 0 9 Net insurance result G2.4 242 253 Net result from items at fair value G2.5 1,045 1,023 Profit or loss from associated undertakings and joint ventures accounted for under the equity method G9.3 -2 10 Other operating income G2.6 42 47 Total operating income 11,743 12,084 Operating expenses Staff costs G8.1 -3,234 -3,106 Other expenses G2.7 -1,441 -1,530 Regulatory fees G2.8 -116 -117 Depreciation, amortisation and impairment charges of tangible and intangible assets G2.9 -614 -577 Total operating expenses -5,405 -5,330 Profit before loan losses 6,338 6,754 Net result on loans in hold portfolios mandatorily held at fair value G2.5 -1 -8 Net loan losses G2.10 -21 -198 Operating profit 6,316 6,548 Income tax expense G2.11 -1,476 -1,489 Net profit for the year 4,840 5,059 Attributable to: Shareholders of Nordea Bank Abp 4,814 5,033 Additional Tier 1 capital holders 26 26 Total 4,840 5,059 Basic earnings per share, EUR G2.12 1.39 1.44 Diluted earnings per share, EUR G2.12 1.39 1.44 Statement of comprehensive income EURm Note 2025 2024 Net profit for the year 4,840 5,059 Other comprehensive income Items that may be reclassified subsequently to the income statement Currency translation: Currency translation differences 316 -483 Tax on currency translation differences -3 -1 Hedging of net investments in foreign operations: G3.6 Valuation gains/losses -192 174 Fair value through other comprehensive income: G3.3 Valuation gains/losses 83 -65 Tax on valuation gains/losses -22 16 Transferred to the income statement 27 3 Tax on transfers to the income statement -7 -1 Cash flow hedges: G3.6 Valuation gains/losses -2,471 1,913 Tax on valuation gains/losses 496 -388 Transferred to the income statement 2,391 -1,862 Tax on transfers to the income statement -480 378 Items that may not be reclassified subsequently to the income statement Changes in own credit risk related to liabilities classified as fair value option: G3.3 Valuation gains/losses 2 -8 Tax on valuation gains/losses -1 2 Defined benefit plans: G8.2 Remeasurement of defined benefit plans -132 99 Tax on remeasurement of defined benefit plans 34 -23 Companies accounted for under the equity method: G9.3 Other comprehensive income from companies accounted for under the equity method -1 5 Tax on other comprehensive income from companies accounted for under the equity method 0 -1 Other comprehensive income, net of tax 40 -242 Total comprehensive income 4,880 4,817 Attributable to: Shareholders of Nordea Bank Abp 4,854 4,791 Additional Tier 1 capital holders 26 26 Total 4,880 4,817 ===== SIDA 197 ===== Nordea Annual Report 2025 196 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Balance sheet EURm Note 31 Dec 2025 31 Dec 2024 Assets G3.3 Cash and balances with central banks 38,206 46,562 Loans to central banks G3.8 6,947 4,075 Loans to credit institutions G3.8 4,038 2,950 Loans to the public G3.8 381,871 357,588 Interest-bearing securities G3.9 79,872 73,464 Shares G3.10 39,587 35,388 Assets in pooled schemes and unit-linked investment contracts G3.11 70,677 60,879 Derivatives G3.12 17,633 25,211 Fair value changes of hedged items in portfolio hedges of interest rate risk G3.6 -158 -243 Investments in associated undertakings and joint ventures G9.3 462 482 Intangible assets G5.1 4,088 3,882 Properties and equipment G5.2 1,564 1,661 Investment properties G5.3 2,215 2,132 Deferred tax assets G2.11 180 206 Current tax assets G2.11 383 364 Retirement benefit assets G8.2 334 360 Other assets 5,619 7,168 Prepaid expenses and accrued income 832 1,131 Assets held for sale G9.5 – 95 Total assets 654,350 623,355 EURm Note 31 Dec 2025 31 Dec 2024 Liabilities G3.3 Deposits by credit institutions G3.13 34,131 28,775 Deposits and borrowings from the public G3.14 242,874 232,435 Deposits in pooled schemes and unit-linked investment contracts G3.11 71,611 61,713 Insurance contract liabilities G4 33,097 30,351 Debt securities in issue G3.15 196,276 188,136 Derivatives G3.12 18,078 25,034 Fair value changes of hedged items in portfolio hedges of interest rate risk G3.6 -567 -458 Current tax liabilities G2.11 672 208 Other liabilities G3.16 14,406 14,196 Accrued expenses and prepaid income 1,298 1,638 Deferred tax liabilities G2.11 601 813 Provisions G6 348 396 Retirement benefit liabilities G8.2 296 272 Subordinated liabilities G3.17 8,810 7,410 Total liabilities 621,931 590,919 Equity G10.1 Additional Tier 1 capital holders – 750 Share capital 4,050 4,050 Invested unrestricted equity 1,077 1,053 Other reserves -2,550 -2,591 Retained earnings 29,842 29,174 Total equity 32,419 32,436 Total liabilities and equity 654,350 623,355 ===== SIDA 198 ===== Nordea Annual Report 2025 197 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Statement of changes in equity Attributable to shareholders of Nordea Bank Abp Other reserves: 2025, EURm Note Share capital1 Invested unre- stricted equity Translation of foreign ope ra tions2,3,4 Cash flow hedges2,4 Fair value through other compre- hensive in come2 De fined benefit plans Changes in own credit risk related to liabilities at fair value option Re tained earn ings Total Additional Tier 1 capi- tal holders Total equity Balance as at 1 Jan 2025 4,050 1,053 -2,582 107 -53 -60 -3 29,174 31,686 750 32,436 Net profit for the year – – – – – – – 4,814 4,814 26 4,840 Other comprehensive income, net of tax – – 121 -64 81 -98 1 -1 40 – 40 Total comprehensive income – – 121 -64 81 -98 1 4,813 4,854 26 4,880 Paid interest on Additional Tier 1 capital 5 G10.1 – – – – – – – 5 5 -26 -21 Change in Additional Tier 1 capital – – – – – – – – – -750 -750 Share-based payments G8.3 – – – – – – – 15 15 – 15 Dividend 6 – – – – – – – -3,268 -3,268 – -3,268 Sale/purchase of own shares7 – 24 – – – – – -897 -873 – -873 Balance as at 31 Dec 2025 4,050 1,077 -2,461 43 28 -158 -2 29,842 32,419 – 32,419 2024, EURm Balance as at 1 Jan 2024 4,050 1,063 -2,272 66 -6 -136 3 27,707 30,475 750 31,225 Net profit for the year – – – – – – – 5,033 5,033 26 5,059 Other comprehensive income, net of tax – – -310 41 -47 76 -6 4 -242 – -242 Total comprehensive income – – -310 41 -47 76 -6 5,037 4,791 26 4,817 Paid interest on Additional Tier 1 capital 5 G10.1 – – – – – – – 5 5 -26 -21 Share-based payments G8.3 – – – – – – – 15 15 – 15 Dividend6 – – – – – – – -3,218 -3,218 – -3,218 Purchase of own shares7 – -10 – – – – – -372 -382 – -382 Balance as at 31 Dec 2024 4,050 1,053 -2,582 107 -53 -60 -3 29,174 31,686 750 32,436 1) The t otal number of shares registered was 3,434 million (3,503 million). The number of own shares was 14.0 million (17.1 million), representing 0.4% (0.5%) of the total number of shares in Nordea. Each share carries one voting right. 2) It ems that may be reclassified subsequently to the income statement. 3) R elates to foreign exchange risk. Of the balance as at 31 December, EUR 759m (EUR 939m) related to hedging relationships for which hedge accounting is applied and EUR –m (EUR –m) related to hedging relationships for which hedge accounting is no longer applied. 4) F or more detailed information, see Note G3.6 “Hedge accounting”. 5) C onsists of interest paid of EUR -26m (EUR -26m) on Additional Tier 1 capital and the related tax effect of EUR 5m (EUR 5m). 6) Dividends r ecognised as distributions to owners amounted to EUR 0.94 (EUR 0.92) per share. 7) The change in the hol ding of own shares related to treasury shares held for remuneration purposes and to the trading portfolio was accounted for as an increase/decrease in “Invested unrestricted equity”. At the end of the year the number of treasury shares held for remuneration purposes was 10.3 million (11.5 million). The separately announced share buy-back amounted to EUR 896m (EUR 372m) and was accounted for as a reduction in “Retained earnings”. The transaction cost in relation to the share buy-back amounted to EUR 1m (EUR 0m). Cash flow statement1 EURm Note 2025 2024 Operating activities Operating profit 6,316 6,548 Adjustment for items not included in cash flow G10.2 2,787 2,306 Income taxes paid G2.11 -1,223 -1,418 Cash flow from operating activities before changes in operating assets and liabilities 7,880 7,436 Changes in operating assets Change in loans to central banks G3.8 -2,898 -2,263 Change in loans to credit institutions G3.8 -1,430 -384 Change in loans to the public G3.8 -18,709 -10,506 Change in interest-bearing securities G3.9 -6,221 -7,153 Change in shares G3.10 -4,103 -13,101 Change in derivatives, net G3.12 -1,343 -3,645 Change in investment properties G5.3 -193 78 Change in other assets -3,863 -748 Dividends received from associates G9.3 5 33 Changes in operating liabilities Change in deposits by credit institutions G3.13 5,642 -765 Change in deposits and borrowings from the public G3.14 8,025 16,272 Change in insurance contract liabilities G4 8,187 5,590 Change in debt securities in issue G3.15 7,795 2,168 Change in other liabilities G3.16 -1,938 7,894 Cash flow from operating activities -3,164 906 Investing activities Acquisition of business operations G9.6 – -2,393 Acquisition of associated undertakings and joint ventures G9.3 -48 – Sale of associated undertakings and joint ventures G9.3 98 – Acquisition of property and equipment G5.2 -79 -91 Sale of property and equipment G5.2 27 37 Acquisition of intangible assets G5.1 -577 -469 Cash flow from investing activities -579 -2,916 Financing activities Issued subordinated liabilities G3.17 1,776 2,192 Amortised subordinated liabilities G3.17 -839 -762 Repurchase of own shares incl. change in trading portfolio -873 -382 Dividend paid -3,268 -3,218 Paid interest on Additional Tier 1 capital -26 -26 Principal portion of lease payments -111 -151 Cash flow from financing activities -3,341 -2,347 Cash flow for the year -7,084 -4,357 1) F or more information regarding the cash flow statement, see Note G10.2 “Additional disclosures on the cash flow statement”. ===== SIDA 199 ===== Nordea Annual Report 2025 198 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G1 Accounting policies Corporate information Nordea Bank Abp, together with its consolidated subsidi- aries (the Nordea Group), is a leading universal bank in the Nordic markets. The parent company, Nordea Bank Abp, has its head office in Helsinki, Finland, and is organ- ised under the laws of Finland. Nordea Bank Abp’s ordi- nary shares are listed on Nasdaq Nordic and the stock exchanges in Helsinki (in euro), Stockholm (in Swedish kronor) and Copenhagen (in Danish kroner); its American Depository Receipts are traded in the US in US dollars. The Nordea Group (hereafter “Nordea”) offers a com- prehensive range of banking and financial products and services for household and corporate customers, including financial institutions. Nordea’s products and services com- prise a broad range of household banking services, includ- ing mortgages and consumer loans; credit and debit cards; and a wide selection of savings, life insurance and pension products. In addition, Nordea offers a wide range of cor- porate banking services, including business loans; cash management services; payment and account services; risk management products and advisory services; debt and equity-related products for liquidity and capital raising purposes; corporate finance; institutional asset manage- ment services; and corporate life and pension products. The Group also distributes general insurance products. Corporate information Name of reporting entity Nordea Group Domicile of entity Helsinki, Finland Legal form of entity Public limited company Country of incorporation Finland Address of entity’s registered office Hamnbanegatan (Satamaradankatu) 5, FI-00020, Helsinki, Finland Principal place of business Nordic markets Description of nature of entity’s operations and principal activities Banking and financial products and services for household and corporate customers, including financial institutions Name of parent entity Nordea Bank Abp (Business ID 2858394-9) Basis of presentation Nordea’s consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted by the European Union (EU). In addition, certain comple- mentary rules in the Finnish Accounting Act, the Finnish Act on Credit Institutions, the Finnish Financial Supervisory Authority’s regulations and guidelines and the Decree of the Finnish Ministry of Finance on the financial statements and consolidated financial statements of credit institutions and investment firms have also been applied. The disclosures required under the standards, recom- mendations and laws above have been included in the notes or in other parts of the financial statements. On 17 February 2026 the Board of Directors approved the financial statements, subject to final adoption by the Annual General Meeting on 24 March 2026. The accounting policies, methods of computation and presentation are unchanged from the 2024 Annual Report, except for those relating to the items presented in “Changed accounting policies and presentation” below. All amounts are in EUR million unless otherwise stated. Changed accounting policies and presentation New accounting policies and changes to presentation were implemented in 2025. Impacts on Nordea’s financial statements are described below. Changes to IFRS Accounting Standards The International Accounting Standards Board (IASB) has published Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, which were implemented by Nordea on 1 January 2025 but have not had any significant impact on its financial statements. There have not been any changes to the Finnish Accounting Act, the Finnish Act on Credit Institutions, the Finnish Financial Supervisory Authority’s regulations and guide- lines, or the Decree of the Finnish Ministry of Finance on the financial statements and consolidated financial statements of credit institutions and investment firms. Changes to IFRS Accounting Standards not yet applied IFRS 18 Presentation and Disclosure in Financial Statements In April 2024 the IASB published the new standard IFRS 18 Presentation and Disclosure in Financial Statements, which will replace IAS 1 Presentation of Financial Statements. IFRS 18 sets out the requirements for the presentation and disclosure of financial performance in financial statements, focusing on a more structured income statement, with defined subtotals. Income and expense items are split into five categories, based on main business activities. Of these, the categories operating, investing and financing are new. The categories income taxes and discontinued operations are as before. The aim is to ensure a structured summary of companies’ primary financial statements and reduce variation in the reporting of financial performance, enabling users to better under- stand the information and more easily compare compa- nies. IFRS 18 also introduces enhanced requirements for the aggregation and disaggregation of financial informa- tion in the primary financial statements and the notes, which may also impact the presentation on the balance sheet. In addition, the standard introduces new disclosures in a single note on certain profit or loss measures outside the financial statements (management-defined perfor- mance measures). IFRS 18 will be effective for annual reporting periods beginning on or after 1 January 2027, with earlier applica- tion permitted. The standard is endorsed by the EU. Nordea is currently considering the classification of the items in the income statement into the three categories and expects to include the majority in the operating cate- gory, with a few items still subject to assessment. The aggregation and disaggregation of financial information in the income statement and on the balance sheet is also considered, but no significant impacts are expected. Furthermore, disclosures of management-defined perfor- mance measures will be added. This tentative conclusion remains subject to further analysis. As IFRS 18 will not change Nordea’s recognition and measurement, it is not expected to have any signifi- cant impact on its financial statements or capital ade- quacy in the period of initial application. Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) In May 2024 the IASB published Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7). The amendments clarify whether contractual cash flows of financial assets with contingent features, e.g. ESG-linked features, represent solely payments of princi- pal and interest (SPPI), which is a condition for being measured at amortised cost. Under the amendments, cer- tain financial assets, including those with ESG-linked fea- tures, can meet the SPPI criterion at initial recognition, provided that their cash flows are not significantly differ- ent from the cash flows of identical financial assets with- out such features. Additional disclosures on financial assets and financial liabilities with contingent features will also be required. The new requirements support Nordea’s current accounting treatment of loans with ESG-linked features. The amendments will not have any significant impact on Nordea’s financial statements or capital ade- quacy in the period of initial application, other than the introduction of the additional disclosures. The amendments also clarify the characteristics of contractually linked instruments and non-recourse fea- tures. These clarifications will not significantly impact the classification of financial assets or capital adequacy in the period of initial application. ===== SIDA 200 ===== Nordea Annual Report 2025 199 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G1 A ccounting policies, cont. Moreover, the amendments address the recognition and derecognition of financial assets and financial liabilities, including an optional exception relating to the derecogni- tion of financial liabilities settled using an electronic pay- ment system. This amendment will not significantly impact Nordea’s financial statements or capital adequacy in the period of initial application. The amendments are effective for annual reporting periods beginning on or after 1 January 2026. Other amendments The following changes in IFRS Accounting Standards not yet applied by Nordea are not assessed to have any signif- icant impact on its financial statements or capital ade- quacy in the period of their initial application. • Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7). • Annual Improvements – Volume 11. • The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21). Critical judgements and estimation uncertainty The preparation of financial statements in accordance with generally accepted accounting principles requires, in some cases, the use of judgements and estimates by man- agement. The actual outcome may, to some extent, differ from the estimates and the assumptions made. Such judgements and estimates are disclosed under “Critical judgements and estimation uncertainty” in the relevant notes, including a description of: • the sources of estimation uncertainty at the end of the reporting period that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year • the judgements made when applying accounting poli- cies (apart from those involving estimations) that have the most significant impact on the amounts recognised in the financial statements. Critical judgements and estimates are in particular associated with: • total net result from items at fair value (Note G2.5) • taxes (Note G2.11) • recognition on and derecognition from the balance sheet (Note G3.1) • classification and measurement (Note G3.3) • fair value (Note G3.4) • hedge accounting (Note G3.6) • expected credit losses (Note G3.8) • insurance contract liabilities (Note G4) • impairment testing of intangible assets (Note G5.1) • investment properties (Note G5.3) • leases (Note G5.4) • provisions (Note G6) • pensions (Note G8.2) • consolidated entities (Note G9.1). Translation of assets and liabilities denominated in foreign currencies The functional currency of each entity (subsidiary or branch) is determined based on the primary economic environment in which the entity operates. Foreign cur- rency is defined as any currency other than the entity’s functional currency. Foreign currency transactions are recorded at the exchange rate on the date of the transac- tion. Monetary assets and liabilities denominated in for- eign currencies are translated at the exchange rate on the balance sheet date. Exchange differences arising on the settlement of trans- actions at rates different from those on the date of the transactions, and unrealised translation differences on monetary assets and liabilities, are recognised in the income statement under “Net result from items at fair value”. Exchange differences arising on internal long-term monetary items receivable from or payable to a foreign operation where settlement is neither planned nor likely to occur in the future (i.e. in substance part of Nordea’s net investment in that foreign operation) are recognised in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment. For translation of the financial statements of foreign entities and branches, see Note G9.2 “Currency translation of foreign entities/branches”. Exchange rates Jan–Dec 2025 Jan–Dec 2024 EUR 1 = SEK Income statement (average) 11.0675 11.4370 Balance sheet (at end of year) 10.8180 11.4485 EUR 1 = DKK Income statement (average) 7.4634 7.4587 Balance sheet (at end of year) 7.4686 7.4576 EUR 1 = NOK Income statement (average) 11.7223 11.6308 Balance sheet (at end of year) 11.8310 11.7810 ===== SIDA 201 ===== Nordea Annual Report 2025 200 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2 Financial performance and returns G2.1 Segment r eporting Accounting policies An operating segment is a part of Nordea that earns revenues and incurs expenses that are regularly reported to the Chief Operating Decision Maker (CODM) and the reported information is used to make decisions about operating matters. The measurement principles and allocation between operating segments follow the information reported to the CODM, as required by IFRS 8. At Nordea the CODM has been defined as the Chief Executive Officer (CEO), who is supported by the other members of the Group Leadership Team. Nordea discloses separately information about each operating segment that has been identified as an operating segment if it exceeds the following quantitative thresholds: • Segment revenue (internal and external) consti- tutes 10% or more of the combined revenue (inter- nal and external) of all operating segments. • Segment profit or loss constitutes 10% or more of the greater, in absolute amount, of: - the total profit of all profitable segments, or - the total loss of all segments that reported a loss. • Segment assets amount to 10% or more of the total assets of all operating segments. Two or more operating segments are aggregated into a single operating segment if the segments have simi- lar economic characteristics and are similar in respect of products and services, production processes, cus- tomers, distribution methods and regulations. Information about other business activities and operating segments that are not reported separately is combined and disclosed separately as “Other operating segments”. Income statement EURm Personal Banking Business Banking Large Corporates & Institutions Asset & Wealth Management Other operating segments Total oper ating segments Recon ciliation Total Group 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net interest income 3,189 3,405 2,101 2,290 1,270 1,417 287 320 99 -34 6,946 7,398 221 196 7,167 7,594 Net fee and commission income 1,202 1,132 601 586 514 523 920 915 -17 -15 3,220 3,141 29 16 3,249 3,157 Net insurance result 118 122 29 35 1 1 90 93 0 0 238 251 4 2 242 253 Net result from items at fair value 70 79 401 401 523 434 46 44 95 104 1,135 1,062 -90 -39 1,045 1,023 Profit from associated undertakings accounted for under the equity method 0 0 6 6 0 0 -2 -2 -3 5 1 9 -3 1 -2 10 Other income 4 11 31 31 2 -1 1 0 0 0 38 41 4 6 42 47 Total operating income 4,583 4,749 3,169 3,349 2,310 2,374 1,342 1,370 174 60 11,578 11,902 165 182 11,743 12,084 - of which internal transactions1 -1,703 -1,593 -629 -624 80 208 258 296 1,994 1,713 – – – – – – Staff costs -678 -636 -409 -404 -294 -306 -434 -415 -158 -169 -1,973 -1,930 -1,261 -1,176 -3,234 -3,106 Other expenses -1,563 -1,589 -969 -920 -598 -576 -148 -123 171 101 -3,107 -3,107 1,666 1,577 -1,441 -1,530 Regulatory fees -58 -59 -25 -27 -15 -14 -3 -3 -10 -13 -111 -116 -5 -1 -116 -117 Depreciation, amortisation and impair ment charges of tangible and intangible assets -41 -40 -29 -29 -20 -21 -24 -23 0 -2 -114 -115 -500 -462 -614 -577 Total operating expenses -2,340 -2,324 -1,432 -1,380 -927 -917 -609 -564 3 -83 -5,305 -5,268 -100 -62 -5,405 -5,330 Profit before loan losses 2,243 2,425 1,737 1,969 1,383 1,457 733 806 177 -23 6,273 6,634 65 120 6,338 6,754 Net result on loans in hold portfolios mandatorily held at fair value -1 -10 0 1 0 0 0 0 0 0 -1 -9 0 1 -1 -8 Net loan losses -26 -77 -4 -130 9 15 -4 0 0 3 -25 -189 4 -9 -21 -198 Operating profit 2,216 2,338 1,733 1,840 1,392 1,472 729 806 177 -20 6,247 6,436 69 112 6,316 6,548 Income tax expense -498 -516 -391 -415 -299 -318 -170 -189 -44 1 -1,402 -1,437 -74 -52 -1,476 -1,489 Net profit for the year 1,718 1,822 1,342 1,425 1,093 1,154 559 617 133 -19 4,845 4,999 -5 60 4,840 5,059 Balance sheet 31 Dec2, EURbn Loans to the public 176 175 92 87 58 54 13 12 – – 339 328 43 30 382 358 Deposits and borrowings from the public 93 89 57 52 48 48 13 12 – – 211 201 32 31 243 232 1) IFRS 8 requires information on revenues from transactions between operating segments. Nordea has defined intersegment revenues as internal interest income and expense rela ted to the funding of the operating segments by the internal bank in Group Finance. 2) The CODM reviews “Loans to the public” and “Deposits and borrowings from the public” as measures of reportable segments’ total assets and liabilities and these line items are cons equently reported separately. ===== SIDA 202 ===== Nordea Annual Report 2025 201 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.1 Segment reporting, cont. Reconciliation between total operating segments and financial statements Total operating income, EURm Operating profit, EURm Loans to the public, EURbn Deposits and borrowings from the public, EURbn 2025 2024 2025 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Total operating segments 11,578 11,902 6,247 6,436 339 328 211 201 Group functions1 -6 7 -42 -7 – – – – Unallocated items 9 98 2 51 36 26 28 29 Eliminations -29 -35 0 0 – – – – Differences in accounting policies2 191 112 109 68 7 4 4 2 Total 11,743 12,084 6,316 6,548 382 358 243 232 1) Consisting of Group Business Support, Group Internal Audit, Chief of Staff Office, Group People, Group Legal, Group Risk, Group Compliance and Group Brand, Communication and Marketing. 2) Impact from using plan exchange rates in the segment reporting. Measurement of operating segments’ performance The main difference between the segment reporting in Note G2.1 “Segment reporting” and “Business areas” pre- sented elsewhere in this report is that the information in the note follows the reporting prepared to the CODM and is prepared using plan exchange rates, while the reporting under “Business areas” is prepared using current FX rates. Nordea applies the use of static planning rates in order to avoid exchange rate fluctuations in the reporting to the CODM. The same exchange rates (e.g. SEK, NOK vs EUR) are used for the current and comparable year. The plan- ning rates used are set during December of the preceding year and calculated as the average spot rates the first five banking days of December. The comparatives are restated annually to reflect the same plan exchange rates as used for the current period as reflected in the internal reporting used by the CODM. Basis of segmentation Nordea’s main business areas, Personal Banking, Business Banking, Large Corporates & Institutions and Asset & Wealth Management, are identified as operating segments and reported separately as they are operating segments exceeding the quantitative thresholds in IFRS 8. Other operating seg- ments below the thresholds are included in “Other operating segments”. Group functions (and eliminations) as well as the result that is not fully allocated to any of the operating seg- ments are shown separately as reconciling items. There were no changes in the basis of segmentation during the year. Reportable segments Personal Banking serves Nordea’s household customers and offers a full range of financial services that fulfil the customers’ day-to-day financial needs. Personal Banking serves customers through Nordea Netbank, the mobile banking app, over the phone, via online meetings and at Nordea’s branch offices. The business area includes advisory and service staff, channels and product units under a com- mon strategy, operating model and governance framework across markets. Business Banking serves, advises and partners with cor- porate customers, covering all their business needs through a full range of services, including payments, cash management, cards, working capital management and financing solutions. Business Banking also provides ser- vices such as payments, cards and financing solutions to personal customers. Large Corporates & Institutions provides financial solu- tions to large Nordic and international corporates and institutional customers. The offering includes a diverse range of financing, cash management and pay- ment services, investment banking, capital markets prod- ucts and securities services. Asset & Wealth Management provides high-quality investment, savings and risk management solutions to high net worth individuals and institutional investors and delivers savings solutions to all Nordea’s customer segments. Total operating income split by product group EURm 2025 2024 Banking products 7,998 8,341 Capital markets products 1,313 1,272 Savings products and asset management 1,777 1,724 Life and pension 579 573 Other 76 174 Total 11,743 12,084 Banking products consist of three different product types. Account products include account-based products such as lending, deposits, cards and Nordea Netbank services. Transaction products consist of cash management as well as trade and project finance services. Financing products include asset-based financing through leasing, hire pur- chase and factoring as well as sales to finance partners such as dealers, vendors and retailers. Capital markets products comprise financial instru- ments, or arrangements for financial instruments, availa- ble in the financial marketplace, including currencies, commodities, stocks and bonds. Savings products and asset management include investment funds, discretionary management, portfolio advice, equity trading and pension accounts. An invest- ment fund is a bundled product where the fund company invests in stocks, bonds, derivatives or other standardised products on behalf of the fund’s shareholders. Discretionary management is a service involving the man- agement of an investment portfolio on behalf of the cus- tomer, and portfolio advice is a service provided to support customers’ investment decisions. Life and pension includes life insurance and pension products and services. Geographical information Total operating income, EURm Assets, EURbn Non-current assets, EURbn1 2025 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Sweden 3,426 3,401 214 188 1 1 Finland 2,526 2,603 124 133 2 2 Norway 2,287 2,384 124 119 2 2 Denmark 3,098 3,268 178 164 3 3 Other 406 428 14 19 1 0 Total 11,743 12,084 654 623 9 8 1) Excluding financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts. Nordea’s main geographical markets comprise the Nordic countries. Revenues and assets (current and non-current assets) are distributed to geographical areas based on the location of the customer operations. Goodwill is allocated to different countries based on the location of the business activities of the acquired entities. ===== SIDA 203 ===== Nordea Annual Report 2025 202 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.2 Net int erest income Accounting policies Interest consists of compensation for time value of money plus a margin. The effective interest rate equals the rate that discounts the estimated future cash flows to the net carrying amount of the finan- cial asset or financial liability at initital recognition. Interest income and expense are calculated and recognised using the effective interest rate method or, if considered appropriate, a method that provides a reasonable approximation in line with the effective interest rate method as the basis for the calculation. The effective interest rate includes fees considered to be an integral part of the effective interest rate of a financial instrument (generally fees received as compensation for risk). Interest income and expense from financial instruments are, with the exceptions described below, classified as “Net interest income”. Interest income and interest expense related to all balance sheet items held at fair value in Markets and Life & Pension are classified as “Net result from items at fair value” in the income statement. Also, interest on the net funding of operations in Markets and Life & Pension and on the net funding of fund investments in Treasury measured at amortised cost is recognised in “Net result from items at fair value” to ensure that income and expense within these operations are presented in a consistent manner. See Note G2.5 “Total net result from items at fair value”. The interest component of derivatives is classified as “Net result from items at fair value”, except for derivatives used for hedging purposes. In accounting hedges the interest component of derivatives is clas- sified as “Interest income calculated using the effec- tive interest rate method” if the derivative is used to hedge an asset and as “Interest expense” if the derivative is used to hedge a liability. In economic hedges the interest component of derivatives is clas- sified as “Other interest income” if the derivative is used to hedge an asset and as “Interest expense” if the derivative is used to hedge a liability. The yield on financial assets is presented in two line items in the income statement: “Interest income calculated using the effective interest rate method” and “Other interest income”. In the line item “Interest income calculated using the effective interest rate method”, Nordea presents interest income from financial assets measured at amortised cost or at fair value through other comprehensive income. The income statement line item “Other interest income” includes other interest income, such as interest income from loans measured at fair value through profit or loss due to the solely payments of principal and interest (SPPI) test failing. Net interest income EURm 2025 2024 Interest income calculated using the effective interest rate method1 15,401 18,580 Other interest income 1,849 2,500 Interest expense -10,083 -13,486 Net interest income 7,167 7,594 1) Interest income from net investment in finance leases amounted to EUR 478m (EUR 543m). Interest income calculated using the effective interest rate method EURm 2025 2024 Loans to credit institutions 1,658 2,359 Loans to the public 12,076 13,734 Interest-bearing securities 1,261 1,191 Yield fees 251 208 Net interest paid or received on derivatives in accounting hedges of assets 155 1,088 Interest income calculated using the effective interest rate method 15,401 18,580 Other interest income EURm 2025 2024 Loans at fair value to the public 1,515 1,721 Interest-bearing securities measured at fair value 337 541 Net interest paid or received on derivatives in economic hedges of assets -3 238 Other interest income 1,849 2,500 Interest expense EURm 2025 2024 Deposits by credit institutions -595 -849 Deposits and borrowings from the public -3,767 -5,107 Deposit guarantee fees -13 -79 Debt securities in issue -5,121 -5,167 Subordinated liabilities -343 -271 Other interest expense -54 -37 Net interest paid or received on derivatives in hedges of liabilities -190 -1,976 Interest expense -10,083 -13,486 Net interest income from categories of financial instruments EURm 2025 2024 Financial assets at fair value through other comprehensive income 1,227 1,168 Financial assets at amortised cost 14,019 16,324 Financial assets at fair value through profit or loss 2,004 3,588 Financial liabilities at amortised cost -8,798 -10,216 Financial liabilities at fair value through profit or loss -1,285 -3,270 Net interest income 7,167 7,594 Interest on impaired loans accounted for an insignificant portion of interest income. G2.3 Net fee and commission income Accounting policies Nordea earns commission income from different ser- vices provided to customers. The recognition of commission income depends on the purpose for which the fees are received. The majority share of the revenues classified as “Commission income” constitutes revenue from con- tracts with customers according to IFRS 15. Fee income is recognised when or as an entity satisfies the performance obligation, either over time or at a specific point of time. Lending fees that are not part of the effective interest rate of a financial instrument are recognised at a point of time when the performance obligation is satisfied. Fees received for bilateral transactions are generally amortised as part of the effective interest rate of the financial instruments recognised. Loan syndication fees are recognised either as part of the effective interest rate of the participation or, if Nordea is acting as an agent in the transaction, as lending fee income. When the fee income is related to both activities, the fee that is recognised as part of the effective interest rate is based on the margin received by the other parties in the arrangement. Variable fees, such as performance fees, are rec- ognised only to the extent that it is highly probable that a significant reversal in the cumulative recog- nised amount does not occur. Commission expenses covering a certain period are expensed over that period, whereas transac- tional fees are recognised when the services are received. Commission income and expense related to the fulfilment of insurance contracts accounted for under IFRS 17 are excluded from “Net fee and com- mission income” and instead accounted for in accordance with the accounting policies defined in Note G4 “Insurance contract liabilities” and Note G2.4 “Net insurance result”. ===== SIDA 204 ===== Nordea Annual Report 2025 203 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.3 Net f ee and commission income, cont. Net fee and commission income1 EURm 2025 2024 Asset management2 1,942 1,881 - of which income 2,219 2,153 - of which expense -277 -272 Deposit products 19 20 - of which income 19 20 Custody and issuer services 5 12 - of which income 55 60 - of which expense -50 -48 Brokerage and advisory 201 209 - of which income 334 335 - of which expense -133 -126 Payments and cards 608 583 - of which income 895 841 - of which expense -287 -258 Lending 460 429 - of which income 484 451 - of which expense -24 -22 Guarantees 33 37 - of which income 134 131 - of which expense -101 -94 Other -19 -14 - of which income 76 73 - of which expense -95 -87 Total 3,249 3,157 1) Net f ee and commission income previously presented in the line item “Life and pension” is included in the line item “Asset management” from 2025 as these items are similar in nature. Comparative figures have been restated accordingly. 2) F ee income, not included in determining the effective interest rate, from financial assets and liabilities not measured at fair value through profit or loss amounted to EUR 450m (EUR 426m). Asset management commissions are generally recognised over time as services are performed and are normally based on assets under management. These fees are recog- nised based on the passage of time as the amount (and the right to receive the fee) corresponds to the value received by the customer. The fees are recognised monthly when the market value of the assets under management is deter- mined. Variable fees based on the relative performance versus a benchmark are rare. The uncertainty relating to the variable consideration is normally resolved at least at each reporting date and the fee income can be recognised. The amount cannot generally be recognised if the outcome is still uncertain and subject to market developments. Fee income related to investment contracts in the life and pen- sion business is included in this category. Fees received on insurance contracts are reported in the line item ”Net insurance revenue”, see Note G2.4 ”Net insurance result”. Fees categorised as Deposit products, Custody and issuer services, Brokerage and advisory and Payments and cards are recognised both over time and at a point of time depending on when the performance obligations are sat- isfied. Brokerage and advisory commissions are mainly transaction-based in relation to advising customers or exe- cuting customer transactions in securities where the ser- vices are recognised at a point of time when the services related to the transactions are completed. Payment and card fee income includes fees for cash management and payment solutions that are recognised over time and transaction-based fees for services like domestic and foreign payments that are recognised at a point of time. Card-related fees are categorised as inter- change fees which are recognised at a point of time when the customer uses the services, or as cardholder fees which are recognised over time or at a point of time if the fee is transaction-based. Lending fees are recognised at a point of time when the performance obligation is satisfied, i.e. when the transac- tion has been performed, unless they are part of the effec- tive interest rate of the financial instrument. Income from issued financial guarantees and expenses for bought financial guarantees are amortised over the duration of the instruments and classified as “Fee and commission income” and “Fee and commission expense”, respectively. Other fee income is generally transaction-based. For transactional services performed at a point of time, payments are generally made instantly when the services are performed. For services performed over time, the period of the services is normally short. Examples of such services are monthly payment services and monthly or quarterly asset management services. For the services per- formed over time, the right to payment generally arises at the end of the period of the services when the performance obligations are satisfied and it is highly probable that no significant reversal of the consideration will occur. Account receivables are recognised in “Other assets”, while unbilled receivables for satisfied performance obli- gations and contract assets are recognised in “Prepaid expenses and accrued income”. Short-term advances received where the performance obligations have not yet been satisfied are recognised in “Accrued expenses and prepaid income”. Commission expenses are normally transaction-based and recognised in the period in which the services are received. Breakdown by business area EURm Personal Banking Business Banking Large Corporates & Institutions Asset & Wealth Management Group Finance Other & elimination Nordea Group 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Asset management 811 765 162 159 70 66 909 902 0 0 -10 -11 1,942 1,881 Deposit products 3 3 16 16 0 1 0 0 0 0 0 0 19 20 Custody and issuer services 3 3 4 3 4 5 5 5 -12 -13 1 9 5 12 Brokerage and advisory 14 11 29 32 132 139 35 33 -1 -2 -8 -4 201 209 Payments and cards 273 238 243 236 97 98 0 1 0 0 -5 10 608 583 Lending 98 96 162 147 195 182 5 4 2 1 -2 -1 460 429 Guarantees -6 -2 1 2 40 47 -1 0 -3 5 2 -15 33 37 Other 29 27 -4 -3 -11 -8 -32 -26 -3 -6 2 2 -19 -14 Total 1,225 1,141 613 592 527 530 921 919 -17 -15 -20 -10 3,249 3,157 ===== SIDA 205 ===== Nordea Annual Report 2025 204 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.4 Net insur ance result Accounting policies The net insurance result can be divided into four main parts: • Insurance revenue, which represents the provision of services arising from insurance contracts at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those services. • Insurance service expenses, which include incurred claims, acquisition expenses and other operating expenses related to insurance contracts. • Insurance finance income or expenses, which include the changes in discount rates, the unwind of discount and the unwind of the risk adjustment. The line item also includes changes to insurance liabilities under the variable fee approach related to changes in corresponding assets. • Return on assets backing insurance liabilities, which includes the income on the assets backing the insurance contract liabilities. More detailed accounting policies covering the accounting for insurance contracts can be found in Note G4 “Insurance contract liabilities”. Net insurance result EURm 2025 2024 Insurance revenue 708 652 Insurance service expenses -460 -402 Net reinsurance result -6 -6 Net insurance revenue 242 244 Insurance finance income or expenses -2,299 -2,574 Return on assets backing insurance liabilities 2,299 2,583 Net insurance finance income and expenses 0 9 Net insurance result 242 253 The table below shows the return on assets in the Nordea Life & Pension operations. The majority is related to assets backing insurance liabilities. Internal transactions are not eliminated in this note and consequently provide the true impact from the life insurance business. Nordea Life & Pension – income recognition EURm 2025 2024 Equity-related instruments 1,564 2,223 Interest-related instruments and foreign exchange gains/losses 555 310 Investment properties1 184 69 Total 2,303 2,602 Return on assets backing insurance liabilities 2,299 2,583 Return on other assets 4 19 Total 2,303 2,602 1) Incl uding revaluation of associated property companies held at fair value, EUR 50m (EUR 19m). G2.5 T otal net result from items at fair value Accounting policies Net result from items at fair value Realised and unrealised gains and losses on finan- cial instruments and investment properties held at fair value are generally presented in “Net result from items at fair value”. The accounting policies used when estimating fair value can be found in Note G3.4 “Fair value”. The following items are moreover presented in “Net result from items at fair value”: • Interest on the net funding of operations in Mar- kets and Life & Pension and on the net funding of fund investments in Treasury measured at amor- tised cost. • Realised gains/losses on assets and liabilities measured at amortised cost. • The revaluation of the hedged risks of hedged items under hedge accounting. • Foreign exchange gains/losses. The following items are not presented in “Net result from items at fair value”: • The interest component of derivatives used for hedge accounting and economic hedges. These components are presented in “Net interest income” to ensure consistent accounting treat- ment with the hedged items. • Return on assets backing insurance liabilities is included gross in this note, but included in “Net insurance result” (Note G2.4) and thus not in “Net result from items at fair value” in the income statement. • Losses from counterparty risk on loans in hold portfolios mandatorily held at fair value (the solely payments of principal and interest (SPPI) test fails), are presented in the separate line item “Net result on loans in hold portfolios mandatorily held at fair value”. For more information on accounting policies related to foreign exchange gains/losses, see Note G1 “Accounting policies” and Note G9.2 “Currency translation of foreign entities/branches”. Net result on loans in hold portfolios mandatorily held at fair value The item “Net result on loans in hold portfolios man- datorily held at fair value” consists of fair value adjust- ments of the margin component of loans in hold port- folios mandatorily held at fair value (the SPPI test fails). The loans are classified in the category “Financial assets at fair value through profit or loss” and presented in the line item “Loans to the public” on the balance sheet. Fair value adjustments of the margin are largely driven by changes in credit risk. Losses from counterparty risk on other instru- ments classified in the category “Financial assets at fair value through profit or loss” are presented in “Net result from items at fair value”. Impairment of expected credit losses on instru- ments within other categories than the category “Financial assets at fair value through profit or loss” is recognised in the line item “Net loan losses”. For more information, see Note G2.10 “Net loan losses”. Critical judgements and estimation uncertainty Estimation uncertainty exists in the valuation of financial instruments, in particular for instruments that lack quoted prices or where recently observed market prices are not available (Level 3 instru- ments). See Note G3.4 “Fair value”. Total net result from items at fair value EURm 2025 2024 Net result from items at fair value1 1,045 1,023 Net result on loans in hold portfolios mandatorily held at fair value -1 -8 Total excluding assets backing insurance liabilities 1,044 1,015 Return on assets backing insurance liabilities (Note G2.4) 2,299 2,583 Total 3,343 3,598 1) Of which hedge ac counting ineffectiveness was EUR 37m (EUR -5m). For more information, see Note G3.6 “Hedge accounting”. The breakdown by products of the total excluding assets backing insurance liabilities is shown in the table below. Breakdown by product EURm 2025 2024 Equity-related instruments 353 529 Interest-related instruments and foreign exchange gains/losses 683 687 Other financial instruments (including credit and commodities) 4 -220 Return on other assets in Nordea Life & Pension1 4 19 Total 1,044 1,015 1) See No te G2.4 for more information. ===== SIDA 206 ===== Nordea Annual Report 2025 205 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.5 T otal net result from items at fair value, cont. Total net result from c ategories of financial instruments EURm 2025 2024 Financial assets at fair value through other comprehensive income 50 224 Financial assets designated at fair value through profit or loss 251 534 Financial liabilities designated at fair value through profit or loss -4,685 -9,182 Financial assets and liabilities mandatorily held at fair value through profit or loss 1 7,767 13,596 Financial assets at amortised cost2 84 579 Financial liabilities at amortised cost3 -848 -2,241 Foreign exchange gains/losses excluding currency hedges 755 301 Non-financial assets and liabilities -31 -213 Total 3,343 3,598 1) Of which amor tised deferred Day 1 profit amounted to EUR 43m (EUR 45m). 2) This line it em includes gains arising from derecognition of financial assets meas- ured at amortised cost of EUR 5m (EUR 3m) and losses of EUR -5m (EUR -2m). The reason for derecognition is that the assets were prepaid by the customer or sold. This line item also includes fair value changes of hedged amortised cost assets in hedges of interest rate risk of EUR 84m (EUR 578m). 3) This line it em mainly includes fair value changes of hedged amortised cost liabil- ities in hedges of interest rate risk of EUR -268m (EUR -1,422m). G2.6 Other oper ating income Accounting policies Net gains from divestment of shares in group under- takings, associated undertakings and joint ventures and net gains from the sale of tangible assets as well as other transactions not related to any other income line are generally presented in “Other operating income” and recognised when it is probable that the benefits associated with the transaction will flow to Nordea. This generally occurs when the significant risks and rewards have been transferred to the buyer (generally when the transaction is finalised). Other operating income EURm 2025 2024 Income from real estate 2 1 Sale of tangible and intangible assets 25 27 Other 15 19 Total 42 47 G2.7 Other e xpenses Accounting policies Transactions not related to any other expense line are generally presented in “Other expenses”. The majority of the expenses are related to acquired ser- vices, primarily within information technology (IT). The expenses for acquired services are normally transaction-based and recognised in the period in which the services are received. Net losses from divestment of shares in group undertakings, associated undertakings and joint ventures and net losses from the sale of tangible assets are generally recognised in “Other expenses” when risks and rewards have been transferred to the buyer (generally when the transaction is finalised). Expenses related to the fulfilment of insurance contracts accounted for under IFRS 17 are included gross in this note but under “Insurance service expenses” in the income statement. For more infor- mation, see Note G4 “Insurance contract liabilities” and Note G2.4 “Net insurance result”. Expenses that fulfil the capitalisation require- ments defined in the accounting policies in Note G5.1 “Intangible assets” are included gross in this note but capitalised and added to “Intangible assets” on the balance sheet. Other expenses EURm 2025 2024 Information technology1 -1,140 -1,070 Marketing and representation -68 -80 Postage, transport, telephone and office expenses -47 -50 Rent, premises and real estate -119 -109 Professional services2 -200 -220 Market data services -93 -95 Other -202 -265 Total gross -1,869 -1,889 Expenses to fulfil insurance contracts in scope of IFRS 17 89 70 Expenses capitalised for IT development projects3 339 289 Total -1,441 -1,530 1) “In formation technology” includes IT consultancy fees. 2) “Pr ofessional services” includes the fees for the auditor. 3) See No te G5.1 “Intangible assets”. Auditor’s fees1 EURm 2025 2024 PricewaterhouseCoopers Auditing assignments -9 -9 Audit-related services2 -1 -1 Other assignments3 -1 -2 Total -11 -12 1) Audit or´s fees in the table are disclosed excluding non-deductible VAT. 2) Pric ewaterhouseCoopers Oy accounted for EUR -0.8m (EUR -0.2m) of which EUR -0.6m (EUR -m) refers to CSRD Assurance. 3) Pric ewaterhouseCoopers Oy accounted for EUR -0.4m (EUR -1.2m) of which EUR -m (EUR -0.6m) refers to CSRD Assurance. Neither Pricewaterhouse- Coopers Oy nor any other firm of PricewaterhouseCoopers Network has pro- vided any tax advisory services. ===== SIDA 207 ===== Nordea Annual Report 2025 206 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.8 R egulatory fees Accounting policies Regulatory fees consist of levies imposed by a gov- ernment. The expenses for such levies are recog- nised when the obligating event that gives rise to a liability to pay a levy has occurred. Resolution fees are not refundable if Nordea discontinues its operations, and the obligating event is consequently assessed to occur on the first day of the year and the fee is recognised in full in the first quarter. The Swedish risk tax (previously referred to as Bank tax) is refundable for the period during which Nordea does not operate, and the obligating event is therefore assessed to occur continuously over the year with the risk tax being amortised on a straight-line basis over the course of the year. Starting from 2025 the Swedish central bank may each year require interest-free deposits from credit institutions with operations in Sweden. Nordea recognises a regula- tory fee representing the interest that would otherwise have been received on the deposit over its lifetime (usually one year). The regulatory fee is recognised in full on the date of the deposit that is assessed to constitute the obli- gating event. The regulatory fee is amortised as interest income over the lifetime of the deposit as part of the effective interest on the deposit which is presented under “Loans to central banks”. Regulatory fees EURm 2025 2024 Resolution fees -35 -45 Risk tax -76 -72 Interest-free deposit in the Swedish central bank -5 – Total -116 -117 G2.9 Depreciation, amortisation and impairment charges of tangible and intangible assets Accounting policies Tangible and intangible assets (except goodwill) are depreciated on a straight-line basis over the esti- mated useful life of the assets. An intangible asset with an indefinite useful life (goodwill) is not amor- tised, but is tested annually for impairment. All intangible assets with definite useful lives, including IT development taken into use, are reviewed for indications of impairment. The impairment charge is calculated as the difference between the carrying amount and the recoverable amount. Accounting policies for intangible and tangible assets, and critical judgements applied, can be found in Note G5 “Intangible and tangible assets”. Depreciation and amortisation related to the ful- filment of insurance contracts are not presented in this line item but instead accounted for and pre- sented as defined in Note G2.4 “Net insurance result” and Note G4 “Insurance contract liabilities“. EURm 2025 2024 Depreciation/amortisation Properties and equipment -218 -218 Intangible assets -401 -352 Total depreciation/amortisation -619 -570 Impairment charges, net Intangible assets -4 -15 Total impairment charges -4 -15 Total before transfer of insurance expenses -623 -585 Transfer of expenses to fulfil insurance contracts in scope of IFRS 17 9 8 Total -614 -577 G2.10 Net l oan losses Accounting policies Impairment losses on financial assets classified in the categories “Amortised cost” and “Fair value through other comprehensive income” (see Note G3.3 “Classification and measurement”) are reported as ”Net loan losses” in the income statement. The table shows the loan losses by line item in the bal- ance sheet. The losses from financial guarantees are also included in “Net loan losses”. The losses are reported net of the impact from any collateral and other credit enhancements. Nordea’s accounting policies covering the calculation of impairment losses on loans, and critical judgements applied, can be found in Note G3.8 “Loans”. Counterparty losses on instruments classified in the category “Financial assets at fair value through profit or loss”, including credit derivatives but excluding loans held at fair value, are reported under “Net result from items at fair value”. Losses on loans held at fair value in hold portfolios (failing the test for solely payments of principal and interest) are reported in the line item “Net result on loans in hold portfolios mandatorily held at fair value”. For more information see Note G2.5 “Total net result from items at fair value”. More information on credit risk can be found in Note G11 “Risk and liquidity management“. Net loan losses EURm Loans to central banks and credit institutions2 Loans to the public2 Interest- bearing securities3 Off-balance sheet items4 Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net loan losses, stage 1 2 0 59 22 0 3 29 -11 90 14 Net loan losses, stage 2 0 0 85 47 0 0 4 -24 89 23 Net loan losses, not credit- impaired assets 2 0 144 69 0 3 33 -35 179 37 Stage 3, credit-impaired assets Net loan losses, individually assessed, collectively calculated1 0 1 24 -19 – – -2 0 22 -18 Realised loan losses – – -360 -227 – – – -4 -360 -231 Decrease in provisions to cover realised loan losses – – 166 85 – – – – 166 85 Recoveries of previously realised loan losses 1 2 38 38 – – – – 39 40 Reimbursement right – – – – – – 24 7 24 7 New/increase in provisions – – -266 -294 – – -20 -6 -286 -300 Reversals of provisions – – 185 175 – – 10 7 195 182 Net loan losses, credit-impaired assets 1 3 -213 -242 – – 12 4 -200 -235 Net loan losses 3 3 -69 -173 0 3 45 -31 -21 -198 1) Incl udes individually identified assets for which the provision has been calculated based on statistical models. 2) Pr ovisions included in Note G3.8 “Loans”. 3) Pr ovisions included in Note G3.9 “Interest-bearing securities”. 4) Pr ovisions included in Note G6 “Provisions”. ===== SIDA 208 ===== Nordea Annual Report 2025 207 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.11 Taxes Accounting policies The line item “Income tax expense” in the income statement consists of the total current tax and deferred tax movements recognised in the income statement. Current and deferred taxes are recog- nised in the income statement unless the tax effects relate to items recognised in other comprehensive income or in equity, in which case the tax effects are recognised in other comprehensive income or in equity, respectively. Current tax is the expected tax expense on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities are recognised for temporary differences between the carrying amounts of assets and liabilities for financial report- ing purposes and the tax base of the same assets and liabilities. Deferred tax assets are recognised for the carry forward of unused tax losses and unused tax credits if the relevant recognition criteria in IAS 12 are met. Deferred tax is not recognised for taxable temporary differences arising on the initial recogni- tion of goodwill. Deferred tax is measured at the tax rates that are expected to be applied when the temporary differ- ences reverse, based on the laws that have been enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are not dis- counted. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which temporary differences, tax losses carried forward and unused tax credits can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Current tax assets and current tax liabilities are offset when the legal right to offset exists and Nordea intends to either settle the tax asset and the tax liability net or recover the asset and settle the liability simultaneously. Deferred tax assets and deferred tax liabilities are generally offset if there is a legally enforceable right to offset current tax assets and current tax liabilities. Nordea applies a temporary mandatory relief from deferred tax accounting under IAS 12 Income Taxes related to the Global Anti-Base Erosion (Pillar Two) Rules. When recognising deferred tax assets and liabilities, any Pillar Two jurisdictional impact is not taken into account but is accounted for as cur- rent tax if incurred. Critical judgements and estimation uncertainty Tax positions are regularly reviewed to identify situ- ations where it is not probable that the relevant tax authorities will accept the treatment used in the tax filings. Uncertain tax positions are considered inde- pendently or as a group, depending on which approach better predicts the resolution of the uncer- tainty. If Nordea concludes that it is not probable that the tax authorities will accept an uncertain tax treatment, the effect of uncertainty is reflected when determining the related taxable result, tax bases, unused tax losses, unused tax credits or tax rates. This is done by using either the most likely amount or the expected value, depending on which method better predicts the outcome of the uncer- tainty. Uncertain tax treatment can affect both cur- rent tax and deferred tax. The valuation of deferred tax assets is influenced by management’s assessment of Nordea’s future profitability and sufficiency of future taxable profits and future reversals of existing taxable temporary differences. These assessments are updated and reviewed at each balance sheet date and are, if nec- essary, revised to reflect the current situation. The carrying amount of deferred tax assets was EUR 180m (EUR 206m) at the end of the year. Income tax expense EURm 2025 2024 Current tax -1,642 -1,168 Deferred tax 166 -321 Total -1,476 -1,489 For total tax recognised in other comprehensive income, see “Statement of comprehensive income”. For taxes rec- ognised directly in equity see “Statement of changes in equity”. The tax on the Group’s operating profit differs from the theoretical amount that would arise using the tax rate in Finland as follows: EURm 2025 2024 Profit before tax 6,316 6,548 Tax calculated at a tax rate of 20.0% -1,263 -1,310 Effect of different tax rates in other countries -226 -216 Income from associated undertakings 0 2 Tax-exempt income 36 36 Income subject to yield taxation 21 16 Non-deductible expenses -20 -23 Prior year adjustments, current tax -46 4 Prior year adjustments, deferred tax 42 5 Change of tax rate1 3 – Non-creditable foreign tax -23 -19 Tax incentive machinery and equipment – 16 Tax charge -1,476 -1,489 Effective tax rate 23.4% 22.7% 1) In November 2025 the Polish Parliament introduced an amendment to the Polish Corporate Income Tax (CIT) Act, changing CIT rates for banks and credit institu- tions to 30% in 2026, 26% in 2027 and 23% from 2028 onwards. Relevant deferred tax assets and liabilities have been remeasured to reflect these new rates. ===== SIDA 209 ===== Nordea Annual Report 2025 208 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.11 Taxes, cont. Movement of deferred tax assets and liabilities EURm 2025 2024 1 Jan Charged to income statement Charged to other comprehensive income Charged directly to equity Acquisitions and disposals Translation differences 31 Dec 1 Jan Charged to income statement Charged to other comprehensive income Charged directly to equity Acquisitions and disposals Translation differences 31 Dec Deferred tax assets Tax losses carried forward 246 -198 – – – 1 49 58 201 – -7 – -6 246 Intangible assets 31 -11 – – – – 20 – 31 – – – – 31 Loans to the public 34 44 -12 – – 0 66 70 -38 2 – – – 34 Derivatives/bonds 17 -13 0 – – 0 4 – 17 – – – – 17 Investment properties 59 19 – – – – 78 1 58 – – – – 59 Retirement benefits 56 1 30 – – 0 87 75 -2 -15 – – -2 56 Liabilities/provisions 218 -25 – – – -1 192 236 -13 – – – -5 218 Lease liabilities 232 -12 – – -1 3 222 230 -12 – – 14 – 232 Other 15 -2 0 – – 0 13 16 -10 1 – – 8 15 Netting between deferred tax assets and liabilities -702 178 -23 – 1 -5 -551 -432 -256 1 – -14 -1 -702 Total 206 -19 -5 – – -2 180 254 -24 -11 -7 0 -6 206 Deferred tax liabilities Loans to the public 348 -87 0 – – 3 264 366 -12 – – – -6 348 Shares 22 6 – – – – 28 15 7 – – – – 22 Derivatives/bonds 587 -368 2 – – 1 222 86 505 7 – – -11 587 Intangible assets 103 -11 – – – – 92 91 12 – – – – 103 Properties and equipment/right-of-use assets 238 66 – – 2 4 310 230 -5 – – 14 -1 238 Investment properties 66 20 – – – -1 85 6 60 – – – – 66 Retirement benefits 95 35 -35 – – 2 97 50 20 24 – – 1 95 Liabilities/provisions 13 0 – – – – 13 19 -6 – – – – 13 Other 18 -12 – – – – 6 17 1 – – – – 18 Elimination of temporary differences existing in multiple jurisdictions 25 -12 22 – – 0 35 57 -29 -6 – – 3 25 Netting between deferred tax assets and liabilities -702 178 -23 – 1 -5 -551 -432 -256 1 – -14 -1 -702 Total 813 -185 -34 – 3 4 601 505 297 26 – 0 -15 813 ===== SIDA 210 ===== Nordea Annual Report 2025 209 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G2.11 Taxes, cont. Unrecognised deferred tax assets EURm 31 Dec 2025 31 Dec 2024 Unused foreign tax credits Expiring within 12 months 2 2 Expiring after 12 months 1,118 563 Total 1,120 565 Unrecognised deferred tax assets relating to foreign tax credits may be recovered in the event of unexpected dif- ferences in the timing of taxation or the tax base between the head office and branches. Global Anti-Base Erosion tax reform (Pillar Two) In December 2022 the European Union member states adopted a directive to implement the Pillar Two Rules. Most jurisdictions in which Nordea operates enacted the Pillar Two legislation as of 1 January 2024, including Finland where the ultimate parent company is incorpo- rated. Nordea is required to determine whether it meets the Pillar Two minimum effective tax rate of 15% in each jurisdiction in which it operates. Full Pillar Two calculations and filings will not be required for the financial years 2024–2026 for jurisdictions meeting the requirements of the transitional safe har- bours. Based on Nordea’s assessment, the requirements in all significant jurisdictions are expected to be met. Consequently, the preparation of full Pillar Two calcula- tions is expected to be postponed and no current tax impact is recognised for the financial year 2025. Nordea’s assessments for the most significant entities indicate that no material top-up tax exposures are expected. However, it is not possible to fully conclude on the final impact until the practical implementation of the OECD Pillar Two rules has been completed by the local legislators and tax authorities. G2.12 Earnings per share Accounting policies Basic earnings per share is calculated by dividing the profit or loss attributable to shareholders of Nordea Bank Abp by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is determined by adjusting the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, consisting of rights to per- formance shares under the Long Term Incentive Plans and contracts that can be settled in Nordea shares, i.e. derivatives such as options and warrants and their equivalents. Such contracts affect diluted earnings per share when (and only when) the aver- age price of ordinary shares during the period exceeds the exercise price of the options or warrants (i.e. they are in the money). The potential ordinary shares are only considered to be dilutive on the balance sheet date if all perfor- mance conditions are fulfilled and if a conversion to ordinary shares would decrease earnings per share. The rights are furthermore considered dilutive only when the exercise price, with the addition of future services, is lower than the period’s average share price. Earnings per share 2025 2024 Earnings: Profit attributable to shareholders of Nordea Bank Abp, EURm 4,814 5,033 Number of shares (millions): Number of shares outstanding at beginning of year 3,503 3,528 Average number of repurchased shares under the share buy-back programme -34 -19 Average number of shares held for remuneration purposes or in the trading portfolio -15 -8 Weighted average number of basic shares outstanding 3,454 3,501 Adjustment for diluted weighted average number of additional ordinary shares outstanding 1 4 4 Weighted average number of diluted shares outstanding 3,458 3,505 Basic earnings per share, EUR 1.39 1.44 Diluted earnings per share, EUR 1.39 1.44 1) Related to the Nordea Incentive Plan (NIP) and to the Long Term Incentive Plans (LTIPs). For further information on these plans, see Note G8.3 “Share-based pay- ment plans”. ===== SIDA 211 ===== Nordea Annual Report 2025 210 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3 Financial instruments G3.1 Recognition on and derecognition from the balance sheet Accounting policies Derivative instruments, quoted securities and foreign exchange spot transactions are recognised on and derecognised from the balance sheet on the trade date. A corresponding asset or liability is then recog- nised in “Other assets” or “Other liabilities” on the balance sheet between the trade date and the set- tlement date. Other financial instruments are recog- nised on the balance sheet on the settlement date. Financial assets, other than those for which trade date accounting is applied, are derecognised from the balance sheet when the contractual rights to the cash flows from the financial assets expire or are transferred to another party. The rights to the cash flows normally expire or are transferred when the counterparty has performed for example by repay- ing a loan to Nordea, i.e. on the settlement date. Rights to cash flows may also expire when loans are rolled over or modified. The rights to cash flows are generally considered to have expired if the change is at market rates and no payment-related concession has been provided. In some cases, Nordea enters into transactions where it transfers assets that are recognised on the balance sheet but retains either all or a portion of the risks and rewards of the transferred assets. If all or substantially all risks and rewards are retained, the transferred assets are not derecognised from the balance sheet. If Nordea’s counterparty can sell or repledge the transferred assets, the assets are dis- closed in Note G3.7 “Financial instruments pledged as collateral”. Transfers of assets with retention of all or substantially all risks and rewards include securities lending agreements and repurchase agreements. Financial liabilities are derecognised from the bal- ance sheet when the liability is extinguished. Normally this occurs when Nordea fullfils its part of the agreement, for example when Nordea returns a deposit to the counterparty, i.e. on the settlement date. Financial liabilities where the cash flows are modified or rolled over are also derecognised if the new terms are substantially different from the terms of the original liabilities. This is the case if the pres- ent value of the cash flows under the new terms dis- counted by the original interest rate differs by 10% or more from the discounted present value of the remaining expected cash flows of the original finan- cial liability. Qualitative factors are also considered. A sale of a security not owned by Nordea is defined as a short sale and triggers the recognition of a trading liability (sold, not held, securities) pre- sented in “Other liabilities” on the balance sheet. The short sale is generally covered through a securities financing transaction, normally a reverse repurchase agreement or other forms of securities borrowing agreements. Critical judgements and estimation uncertainty Loans and other financial assets where cash flows are modified, or part of a restructuring, are derecog- nised and a new loan recognised if the terms and conditions of the new loan are substantially different from the terms of the old loan. Nordea applies judgements to determine if the terms of the new loan are substantially different from the terms of the old loan. It is generally Nordea’s judgement that if a new credit assessment results in a change in the interest rate and/or maturity, this is considered a substantial change and as such qualifies as a derecognition event. G3.2 Transferred assets and obtained collateral Accounting policies Assets are considered to be transferred from Nordea if Nordea either transfers the contractual right to receive the cash flows from the assets or retains that right but has a contractual obligation to pay the cash flows to one or more parties. All assets transferred continue to be recognised on the balance sheet if Nordea is still exposed to changes in the fair value of the assets. Collateral received is not recognised on the bal- ance sheet if Nordea is not exposed to changes in the fair value of the assets. For information about financial instruments pledged as collateral, see Note G3.7 “Financial instruments pledged as collateral”. Transferred assets that are not derecognised in their entirety and associated liabilities Repurchase agreements are a form of collateral borrowing where Nordea sells securities with an agreement to repur- chase them at a later date at a fixed price. Securities lending agreements are transactions where Nordea lends securities to a counterparty and receives a fee. Generally, securities lending agreements are entered into on a collateralised basis. As both repurchase agreements and securities lending agreements result in the securities being returned to Nordea, all risks and rewards associated with the instru- ments transferred are retained by Nordea although the instruments are not available to Nordea during the period during which they are transferred. The counterparties to the transactions hold the securities as collateral but have no recourse to other assets in Nordea. For this reason securities delivered under repurchase agreements and securities lending agreements are not derecognised from the balance sheet. In cases where the counterparty has the right to resell or repledge the securities, the securities are disclosed in Note G3.7 “Financial instruments pledged as collateral”. Securities delivered under repurchase agree- ments and securities lending agreements are also disclosed in Note G7.3 “Assets pledged”. Cash received under repurchase agreements and securities lending agreements is recognised on the balance sheet in “Deposits by credit institutions” or “Deposits and borrow- ings from the public”. In derivative transactions Nordea delivers collateral which, under the terms of the agreements, can be sold or repledged. Such transactions are mainly related to collat- eral delivered under credit support annex agreements. Transferred assets not derecognised from the balance sheet EURm 31 Dec 2025 31 Dec 2024 Repurchase agreements Interest-bearing securities 1,290 1,503 Securities lending agreements Interest-bearing securities 1,588 392 Shares 1,910 511 Derivative agreements Interest-bearing securities 486 27 Total 5,274 2,433 Liabilities associated with the assets 1 EURm 31 Dec 2025 31 Dec 2024 Repurchase agreements 1,290 1,503 Securities lending agreements 3,498 903 Derivative agreements 486 27 Total 5,274 2,433 Net 0 0 1) Liabilities before offsetting between assets and liabilities on the balance sheet. Obtained collateral permitted to be sold or repledged Nordea obtains collateral under reverse repurchase and securities borrowing agreements which, under the terms of the agreements, can be sold or repledged. The transac- tions are conducted under standard agreements employed by financial market participants. Generally, the agree- ments require additional collateral to be provided if the value of the securities falls below a predetermined level. ===== SIDA 212 ===== Nordea Annual Report 2025 211 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.2 Transferred assets and obtained collateral, cont. Under the standard terms of most repurchase transac- tions, the recipient of collateral has an unrestricted right to sell or repledge it, subject to returning equivalent securi- ties on settlement of the transactions. Securities received under reverse repurchase and secu- rities borrowing agreements are not recognised on the balance sheet. Cash delivered under reverse repurchase and securities borrowing agreements is recognised on the balance sheet in “Loans to central banks”, “Loans to credit institutions” or “Loans to the public”. The fair value of the securities obtained as collateral under reverse repurchase and securities borrowing agree- ments is disclosed below. Nordea also obtains collateral under other agreements which, under the terms of the agreements, can be sold or repledged. Such collateral is mainly received under credit support annex agreements covering derivative transactions. The received collateral presented in the table below is not recognised on the bal- ance sheet and includes collateral issued by Nordea. Obtained collateral permitted to be sold or repledged EURm 31 Dec 2025 31 Dec 2024 Reverse repurchase agreements Collateral received that can be repledged or sold 38,203 30,774 - of which repledged or sold 11,526 15,870 Securities borrowing agreements Collateral received that can be repledged or sold 5,838 4,174 - of which repledged or sold 1,774 493 Derivative agreements Collateral received that can be repledged or sold 1,581 3,310 - of which repledged or sold 575 673 Other agreements Collateral received that can be repledged or sold 16 4 - of which repledged or sold – – Total 45,638 38,262 G3.3 Classification and measurement Accounting policies Each financial instrument has been classified in one of the following categories: Financial assets: • Amortised cost • Fair value through profit or loss: - Mandatorily measured at fair value through profit or loss - Designated at fair value through profit or loss (fair value option) • Financial assets at fair value through other comprehensive income. Financial liabilities: • Amortised cost • Fair value through profit or loss: - Mandatorily measured at fair value through profit or loss - Designated at fair value through profit or loss (fair value option). The classification of a financial asset is dependent on the business model for the portfolio in which the instrument is included and on whether the cash flows are solely payments of principal and interest (SPPI). Contractual cash flows that are SPPI are consist- ent with a basic lending arrangement. In a basic lending arrangement, interest can include compen- sation for the time value of money, credit risk, liquid- ity risk, costs and profit margin. Financial assets with contractual cash flows that are not SPPI are measured at fair value through profit or loss. All other assets are classified based on the business model. Instruments included in a portfolio with a business model where the intention is to keep the instruments and collect contractual cash flows are measured at amortised cost. Instruments included in a business model where the intention is both to keep the instruments to collect the contractual cash flows and to sell the instruments are measured at fair value through other comprehensive income. Financial assets included in any other business model are measured at fair value through profit or loss. In order to determine the business model, Nordea has divided its financial assets into portfolios and/or sub-portfolios based on how groups of financial assets are managed together to achieve a particular business objective. When determining the right level for the portfolios, Nordea has taken the current busi- ness area structure into account. When determining the business model for each portfolio, Nordea has analysed the objective of the financial assets as well as, for instance, past sales behaviour and manage- ment compensation. All financial assets and liabilities are initially meas- ured at fair value. The classification of financial instru- ments into different categories forms the basis for how each instrument is subsequently measured on the balance sheet and how changes in its value are recognised. The classification of the financial instru- ments on Nordea’s balance sheet into the different categories under IFRS 9 is presented in the table “Classification of financial instruments”. Amortised cost Financial assets and liabilities measured at amortised cost are initially recognised on the balance sheet at fair value, including transaction costs. Subsequent to initial recognition, the instruments within this cate- gory are measured at amortised cost. In an amortised cost measurement, the difference between acquisi- tion cost and redemption value is amortised in the income statement over the remaining term using the effective interest rate method. Amortised cost is defined as the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortisation of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The cumulative amortisation is calculated using the effec- tive interest rate method. For more information about the effective interest rate method, see Note G2.2 “Net interest income”. For information about impairment under IFRS 9, see Note G3.8 “Loans”. Interest on assets and liabilities classified at amortised cost is generally recognised under “Interest income calculated using the effective inter- est method” and “Interest expense” in the income statement. Financial assets and financial liabilities at fair value through profit or loss Financial assets and financial liabilities at fair value through profit or loss are measured at fair value, excluding transaction costs. Changes in fair value are generally recognised directly in the income statement under “Net result from items at fair value”. However, fair value adjustments of the margin com- ponent of loans in hold portfolios mandatorily held at fair value (the SPPI test fails) are recognised in the income statement in the line item “Net result on loans in hold portfolios mandatorily held at fair value”. For more information, see Note G2.5 “Total net result from items at fair value”. For estimation of fair value, see Note G3.4 “Fair value”. Furthermore, the return on assets backing insurance contracts is included in the line item “Return on assets backing insurance contracts”. See Note G2.4 “Net insurance result”. The category consists of two sub-categories: “Mandatorily measured at fair value through profit or loss” and “Designated at fair value through profit or loss (fair value option)”. The sub-category “Designated at fair value through profit or loss (fair value option)” is an option to measure financial assets and liabilities at fair value with the changes in fair value recognised in profit or loss. This option can be used if it eliminates or significantly reduces an accounting mismatch and for liabilities if they are managed on a fair value basis. Changes in credit risk ===== SIDA 213 ===== Nordea Annual Report 2025 212 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.3 Classification and measurement, cont. related to liabilities designated at fair value through profit or loss are recognised in other comprehensive income unless it creates an accounting mismatch. Interest income and interest expenses related to balance sheet items held at fair value through profit or loss are generally classified as “Net result from items at fair value”. For more information, including exceptions from this general rule, see Note G2.5 “Total net result from items at fair value” and Note G2.2 “Net interest income”. Financial assets at fair value through other comprehensive income Financial assets at fair value through other compre- hensive income are initially measured at fair value plus transaction costs. Changes in fair value, except for interest, foreign exchange effects and impair- ment losses, are recognised in the fair value reserve in equity through other comprehensive income. Interest is recognised under “Interest income”, for- eign exchange effects under “Net result from items at fair value” and impairment losses under “Net loan losses” in the income statement. When an instru- ment is disposed of, the fair value changes previ- ously accumulated in the fair value reserve in other comprehensive income are removed from equity and recognised in the income statement under “Net result from items at fair value”. For information about impairment under IFRS 9, see Note G3.8 “Loans”, and about estimation of fair value, see Note G3.4 “Fair value”. Hybrid (combined) financial instruments Hybrid (combined) financial instruments are con- tracts containing a host contract and an embedded derivative instrument. Such combinations arise pre- dominantly from the issuance of structured debt instruments, such as issued index-linked bonds and loans with embedded collars and caps. For structured bonds issued by Markets, Nordea applies the fair value option, and the entire combined instrument, the host contract together with the embedded derivative, is measured at fair value through profit or loss and presented in “Debt securi- ties in issue” on the balance sheet. Changes in fair value are recognised in the income statement under “Net result from items at fair value” except for changes in Nordea’s own credit risk which is recog- nised in other comprehensive income. Issued debt and equity instruments A financial instrument issued by Nordea is either classified as a financial liability or equity. Issued financial instruments are classified as financial liabilities if the contractual arrangements result in Nordea having a present obligation to either deliver cash or another financial asset or a variable number of equity instruments to the holder of the instrument. If this is not the case, the instrument is generally an equity instrument and classified as equity, net of transaction costs. If issued financial instruments contain both liability and equity components, these are accounted for separately. Critical judgements and estimation uncertainty Nordea classifies financial assets based on Nordea’s business model for managing the assets. When determining the business model for bonds within the liquidity buffer, Nordea performs critical judge- ments. The bonds within the liquidity buffer are split into three portfolios. For the first portfolio, Nordea has determined that the business model is to keep the bonds and collect contractual cash flows and to sell financial assets. For the second portfolio, Nordea has determined that the business model is to man- age the bonds with the objective of realising cash flows through sale. For the third portfolio, Nordea has determined that the business model is to keep the bonds and collect contractual cash flows. The bonds within the first portfolio are measured at fair value through other comprehensive income, the bonds within the second portfolio are measured at fair value through profit or loss and the third portfo- lio is measured at amortised cost. Interest-bearing securities in the liquidity buffer measured at fair value through other comprehensive income (the first portfolio), fair value through profit or loss (the sec- ond portfolio) and amortised cost (the third portfo- lio) amounted to EUR 43,104m (EUR 40,188m), EUR 6,817m (EUR 10,803m) and EUR 4,922m (EUR 50m), respectively, at the end of the year. Nordea also performs critical judgement when assessing if contingent features only have a de mini- mis effect on the contractual cash flows of a finan- cial asset. The gross carrying amount of such finan- cial assets on the balance sheet amounted to EUR 9,091m (EUR 9,264m) at the end of the year. ===== SIDA 214 ===== Nordea Annual Report 2025 213 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.3 Classification and measurement, cont. Classification of financial instruments Assets 31 Dec, EURm Financial assets at fair value through profit or loss Fair value through other comprehensive income Total financial assetsAmortised cost Manda torily Designated at fair value through profit or loss (fair value option) 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Cash and balances with central banks 38,206 46,562 – – – – – – 38,206 46,562 Loans to central banks 5,911 3,100 1,036 975 – – – – 6,947 4,075 Loans to credit institutions 1,903 1,949 2,135 1,001 – – – – 4,038 2,950 Loans to the public 292,692 276,204 89,179 81,384 – – – – 381,871 357,588 Interest-bearing securities 5,597 1,094 25,254 25,112 5,917 7,070 43,104 40,188 79,872 73,464 Shares – – 39,587 35,388 – – – – 39,587 35,388 Assets in pooled schemes and unit-linked investment contracts – – 68,752 59,318 1,049 809 – – 69,801 60,127 Derivatives – – 17,633 25,211 – – – – 17,633 25,211 Fair value changes of hedged items in portfolio hedges of interest rate risk -158 -243 – – – – – – -158 -243 Other assets1 926 768 3,983 5,833 – – – – 4,909 6,601 Prepaid expenses and accrued income 457 807 – – – – – – 457 807 Total 345,534 330,241 247,559 234,222 6,966 7,879 43,104 40,188 643,163 612,530 1) Of which cash/margin receivables amounted to EUR 3,248m (EUR 5,176m). Liabilities 31 Dec, EURm Financial liabilities at fair value through profit or loss Total financial liabilitiesAmortised cost Manda torily Designated at fair value through profit or loss (fair value option) 2025 2024 2025 2024 2025 2024 2025 2024 Deposits by credit institutions 11,041 8,040 23,090 20,735 – – 34,131 28,775 Deposits and borrowings from the public 221,744 215,405 21,130 17,030 – – 242,874 232,435 Deposits in pooled schemes and unit-linked investment contracts – – – – 71,611 61,713 71,611 61,713 Debt securities in issue 141,390 133,740 – – 54,886 54,396 196,276 188,136 Derivatives – – 18,078 25,034 – – 18,078 25,034 Fair value changes of hedged items in portfolio hedges of interest rate risk -567 -458 – – – – -567 -458 Other liabilities1 3,759 4,219 8,175 7,749 – – 11,934 11,968 Accrued expenses and prepaid income 8 6 – – – – 8 6 Subordinated liabilities 8,810 7,410 – – – – 8,810 7,410 Total 386,185 368,362 70,473 70,548 126,497 116,109 583,155 555,019 1) Of which lease liabilities classified in the category “Amortised cost” amounted to EUR 1,045m (EUR 1,103m). Amortised cost This category mainly consists of all loans (including those with embedded collars and caps) and deposits, except for reverse repurchase/repurchase agreements and securities borrowing/lending agreements in Markets and mortgage loans in Nordea Kredit Realkreditaktieselskab. This cate- gory also includes interest-bearing securities in hold-to- collect portfolios in Group Treasury and Life & Pension in Norway, subordinated liabilities and debt securities in issue, except for bonds issued by Nordea Kredit Realkreditaktieselskab and structured bonds issued by Markets. Some loan contracts at Nordea, measured at amortised cost on the balance sheet, include terms linking contractual cash flows to the customers’ achievement of environmen- tal, social and governance (ESG) goals (sustainabili- ty-linked loans). The ESG goals are entity specific and the most common goals for these sustainability-linked loans are of an environmental nature, such as the reduction of CO2 equivalents (C02e). At the end of the year the gross carrying amount of the sustainability-linked loans recog- nised on the balance sheet amounted to EUR 9,091 (EUR 9,264m). These loans are presented in the balance sheet item “Loans to the public”. The total exposure to sustaina- bility-linked loans, including off-balance sheet commit- ments, was EUR 18,436m (EUR 17,853m) at the end of the year. 69.9% (98.1%) of the gross carrying amount is linked to KPIs related to climate transition risk, meaning risk asso- ciated with the transition to a net zero society. The most common transition risk KPI is the customers’ ability to reduce CO2e. The effect on the contractual cash flows of the sustainability-linked loans – if the KPIs are met – is de minimis as the change to the annual interest rate is up to 10bp (up to 10bp). The average contractual term of these loans is 3 years (3 years). For more information about the risk associated with these loans, see section 2.1 “ESG- related credit risk” in Note G11 “Risk and liquidity management”. Nordea also issues green mortgage loans, presented in the balance sheet item “Loans to the public”, where the customer gets a discount of 10bp if they fulfil specific energy requirements. The gross carrying amount of these loans was EUR 2,487m (EUR 1,750m) at the end of the year. The volatility of the cash flows during the term of the loans is expected to be insignificant. ===== SIDA 215 ===== Nordea Annual Report 2025 214 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.3 Classification and measurement, cont. Nordea has also issued financial liabilities in the form of Additional Tier 1 (AT1) instruments with contractual terms that could change the amount of the contractual cash flows based on the occurrence (or non-occurrence) of a contingent event that does not relate directly to changes in basic lending risk and costs (such as the time value of money or credit risk). These AT1 instruments are measured at amortised cost and presented in the balance sheet item “Subordinated liabilities”. The interest payments are fully discretionary and mandatorily cancelled under certain cir- cumstances. For more information about the terms of these AT1 instruments, see Note P3.14 “Subordinated liabilities”. Mandatorily measured at fair value through profit or loss The sub-category “Mandatorily measured at fair value through profit or loss” mainly contains all assets and trad- ing liabilities in Markets, interest-bearing securities in the liquidity buffer, derivatives, shares, mortgage loans in Nordea Kredit Realkreditaktieselskab and financial assets under “Assets in pooled schemes and unit-linked invest- ment contracts”. Deposits in pooled schemes and unit- linked investment contracts are contracts with customers and policyholders where most or all of the risk is borne by the policyholders. The deposits are invested in different types of financial assets on behalf of customers and policyholders. Financial assets designated at fair value through profit or loss (fair value option) Most interest-bearing securities in Life & Pension backing insurance contracts, EUR 5,917m (EUR 7,070m), are desig- nated at fair value through profit or loss to eliminate or sig- nificantly reduce an accounting mismatch with the insur- ance contract liabilities. Assets in pooled schemes and unit-linked investment contracts in Life & Pension which are not mandatorily measured at fair value through profit or loss, EUR 1,049m (EUR 809m), are designated at fair value through profit or loss to avoid an accounting mis- match with the related deposits. Nordea does not disclose the effect of changes in credit risk on the fair values of these assets as any such change in value will directly result in essentially the opposite change in the carrying amount of the corresponding insurance contract liabilities. There is thus no significant impact on the income statement or equity due to changes in the credit risk on these assets in Life & Pension. Financial assets designated at fair value through profit or loss EURm 2025 2024 Carrying amount at end of year 6,966 7,879 Maximum exposure to credit risk at end of year 6,966 7,879 Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income mainly consist of interest-bearing securities in the liquidity buffer. Financial liabilities designated at fair value through profit or loss 2025 2024 EURm Liabilities for which changes in credit risk are presented in other comprehensive income Liabilities for which changes in credit risk are presented in profit or loss Total Liabilities for which changes in credit risk are presented in other comprehensive income Liabilities for which changes in credit risk are presented in profit or loss Total Carrying amount at end of year 1,680 124,817 126,497 1,508 114,601 116,109 Amount to be paid at maturity1 1,657 127,989 129,646 1,508 118,401 119,909 Changes in fair value due to changes in own credit risk, during the year 2 89 91 -8 37 29 Changes in fair value due to changes in own credit risk, accumulated -2 -359 -361 -4 -448 -452 1) Insurance contract liabilites have no fixed maturities and there is no fixed amount to be paid. For these liabilities, the amount disclosed to be paid at maturity has been set at the carrying amount. Financial liabilities designated at fair value through profit or loss (fair value option) Nordea has classified all bonds issued by the Danish group undertaking Nordea Kredit Realkreditaktieselskab, EUR 53,206m (EUR 52,888m), as financial liabilities designated at fair value through profit or loss to eliminate or signifi- cantly reduce an accounting mismatch. When Nordea grants mortgage loans to customers in accordance with Danish mortgage legislation, Nordea at the same time issues bonds with matching terms, also called match fund- ing. The customers can repay the loans either through repayment of the principal or by purchasing the issued bonds and returning them to Nordea settling the loan. The bonds play an important part in the Danish market and Nordea consequently buys and sells own bonds in the mar- ket. The loans are measured at fair value through profit or loss because they fail the SPPI criteria, and if the bonds were measured at amortised cost, this would give rise to an accounting mismatch. To avoid such an accounting mis- match, Nordea measures the bonds at fair value with all changes in fair value, including changes in credit risk, rec- ognised in profit or loss. Changes in fair value due to changes in own credit risk on bonds issued by Nordea Kredit Realkredit-aktieselskab are calculated by determin- ing the amount of fair value changes that is not attributa- ble to changes in market conditions. The method used to estimate the amount of changes in market conditions is based on relevant benchmark interest rates which are the average yields on Danish and German (EUR) government bonds. This model is assessed to provide the best estimate of the impact of own credit risk. The changes in own credit risk on mortgage bonds issued by Nordea Kredit Realkreditaktieselskab are not recognised in other compre- hensive income as that would create an accounting mis- match with the corresponding change in the fair value of the mortgage loans that are recognised in profit or loss. Nordea also applies the fair value option to structured bonds issued by Markets, EUR 1,680m (EUR 1,508m), as these hybrid instruments, such as issued index-linked bonds, include embedded derivatives not closely related to the host contract. The host contract together with the embedded derivative is measured at fair value through profit or loss and presented in “Debt securities in issue” on the balance sheet. The change in the fair value of these ===== SIDA 216 ===== Nordea Annual Report 2025 215 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.3 Classification and measurement, cont. issued structured bonds is recognised in the income state- ment under “Net result from items at fair value” except for the changes in own credit risk, which are recognised in other comprehensive income. Nordea calculates the change in its own credit spread as the change in its total funding spread, thus assuming a constant issuance pre- mium on all issues over time. The change in the credit spread is estimated by comparing the value of the trades using the initial funding spread on the issuance date and the actual funding spread on the reporting date. This model is assessed to provide the best estimate of the impact of own credit risk. Also deposits in pooled schemes and unit-linked invest- ment contracts, EUR 71,611m (EUR 61,713m), of which EUR 67,604m (EUR 57,396m) relates to Life & Pension, are desig- nated at fair value through profit or loss as they are man- aged at fair value. The value of these deposits is directly linked to the fair value of the underlying assets, and changes in own credit risk consequently have no net impact. G3.4 Fair value Accounting policies Fair value is defined as the price that at the meas- urement date would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value meas- urement assumes that the transaction takes place under current market conditions in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous mar- ket for the asset or liability. The existence of published price quotations in an active market is the best evidence of fair value and when they exist, they are used to measure financial assets and financial liabilities. An active market for the asset or liability is a market in which transac- tions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The absolute level of liquidity and volume required for a market to be considered active varies depending on the class of instruments. The trade frequency and volume are monitored regularly in order to assess if markets are active or not active. If quoted prices for a financial instrument fail to represent actual and regularly occurring mar- ket transactions or if quoted prices are not available, fair value is established by using an appropriate val- uation technique. The adequacy of the valuation technique, including an assessment of whether to use quoted prices or theoretical prices, is monitored on a regular basis. Valuation techniques can range from a simple dis- counted cash flow analysis to complex option pricing models. Valuation techniques are designed to apply observable market prices and rates as input when- ever possible but can also make use of unobservable model parameters. The adequacy of the valuation technique is assessed by measuring its ability to match market prices. This is done by comparing cal- culated prices with relevant benchmark data, e.g. quoted prices from exchanges, the counterparty’s valuations, price data from consensus services etc. For financial instruments whose fair value is esti- mated by a valuation technique, it is investigated whether the variables used are predominantly based on data from observable markets. Nordea considers data from observable markets to be data that can be collected from generally available external sources and which is deemed to represent realistic market prices. If unobservable data has a significant impact on the valuation, the instrument cannot be recognised initially at the fair value estimated by the valuation technique and any upfront gains are thereby deferred and amortised through the income statement over the contractual life of the instrument. The deferred upfront gains are subsequently released to income if the unobservable data becomes observable. Fair value measurements of assets and liabilities are categorised under the three levels of the IFRS fair value hierarchy. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The categorisation of these instruments is based on the lowest level input that is significant to the fair value measurement in its entirety. Level 1 in the fair value hierarchy consists of assets and liabilities valued using unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 in the fair value hierarchy consists of assets and liabilities where directly quoted market prices are not available in active markets. The fair values are based on quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active. Alternatively, the fair values are estimated using valuation techniques based on mar- ket prices or inputs prevailing at the balance sheet date and where unobservable inputs have not had a significant impact on the fair values. Level 3 in the fair value hierarchy consists of assets and liabilities for which fair values cannot be obtained directly from quoted market prices or indi- rectly using valuation techniques or models sup- ported by observable market prices or rates. Critical judgements and estimation uncertainty Critical judgements that have a significant impact on the recognised amounts for financial instruments are exercised when determining the fair value of OTC derivatives and other financial instruments that lack quoted prices or where recently observed mar- ket prices are not available, such as unlisted equities. The judgements relate to the following areas: • The choice of valuation techniques. • The determination of when quoted prices fail to represent fair value (including the judgement of whether markets are active). • The calculation of fair value adjustments in order to incorporate relevant risk factors such as credit risk, model risk and liquidity risk. • The judgement of which market parameters are observable. The critical judgements required when determining the fair value of financial instruments that lack quoted prices or where recently observed market prices are not available also introduce a high degree of estimation uncertainty. In all of these instances, decisions are based on professional judgement in accordance with Nordea’s accounting and valuation policies. The fair value of financial assets and liabilities measured at fair value using a valuation technique, Levels 2 and 3 in the fair value hierarchy, was EUR 169,291m (EUR 166,185m) and EUR 192,421m (EUR 182,865m), respectively, at the end of the year. Valuation adjustments (CVA, DVA, FFVA, NFVA, close-out cost adjustment, model risk adjustment and IPV variance) made when deter- mining the fair value of financial instruments (including those measured at fair value through other comprehensive income) had a negative impact on equity of EUR -74m (EUR -62m). Sensitivity analysis disclosures covering the fair value of financial instruments with significant unob- servable inputs can be found in the table “Valuation techniques and inputs used in fair value measure- ments of financial instruments in Level 3” in this note. Estimation uncertainty also arises at initial recog- nition of financial instruments that are part of larger structural transactions. Although subsequently not necessarily held at fair value, such instruments are initially recognised at fair value, and as there is nor- mally no separate transaction price or active market for such individual instruments, the fair value has to be estimated. ===== SIDA 217 ===== Nordea Annual Report 2025 216 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.4 Fair value, cont. Fair value of financial assets and liabilities 31 Dec 2025 31 Dec 2024 EURm Carrying amount Fair value Carrying amount Fair value Financial assets Cash and balances with central banks 38,206 38,206 46,562 46,562 Loans 392,698 394,083 364,370 365,451 Interest-bearing securities 79,872 79,834 73,464 73,464 Shares 39,587 39,587 35,388 35,388 Assets in pooled schemes and unit- linked investment contracts 69,801 69,801 60,127 60,127 Derivatives 17,633 17,633 25,211 25,211 Other assets 4,909 4,909 6,601 6,601 Prepaid expenses and accrued income 457 457 807 807 Total 643,163 644,510 612,530 613,611 Financial liabilities Deposits and debt instruments 481,524 482,529 456,298 456,869 Deposits in pooled schemes and unit- linked investment contracts 71,611 71,611 61,713 61,713 Derivatives 18,078 18,078 25,034 25,034 Other liabilities1 10,889 10,889 10,865 10,865 Accrued expenses and prepaid income 8 8 6 6 Total 582,110 583,115 553,916 554,487 1) Lease liabilities presented in the line item “Other liabilities“ in Note G3.3 “Classification and measurement“ are not included in this table. Fair value of items measured at fair value on the balance sheet Determination of fair value The pricing models applied by Nordea are consistent with accepted economic methodologies for pricing financial instruments and incorporate the factors that market par- ticipants consider when setting a price. New pricing mod- els are subject to approval by the Model Risk Committee and all pricing models are reviewed on a regular basis. Complex valuation techniques are generally character- ised by the use of unobservable and model-specific inputs. All valuation techniques, both simple and complex models, make use of market prices and inputs, which comprise interest rates, volatilities, correlations etc. Some of these prices and inputs are observable while others are not. For most non-exotic currencies, the interest rates are all observable, and implied volatilities and the correlations of the interest rates and FX rates may be observable through option prices up to a certain maturity. Implied volatilities and correlations may also be observable for the most liq- uid equity instruments. For less liquid equity names, the option market is fairly illiquid, and hence implied volatili- ties and correlations are unobservable. Nordea predominantly uses published price quotations to establish the fair value of items disclosed under the fol- lowing balance sheet items: • Interest-bearing securities • Shares (listed) • Derivatives (listed) • Debt securities in issue (mortgage bonds issued by Nordea Kredit Realkreditaktieselskab). Nordea predominantly uses valuation techniques to estab- lish the fair value of items disclosed under the following balance sheet items: • Loans to the public (mortgage loans in Nordea Kredit Realkreditaktieselskab) • Interest-bearing securities (when quoted prices in an active market are not available) • Shares (when quoted prices in an active market are not available) • Deposits • Derivatives (OTC derivatives). For interest-bearing securities, the valuation can either be based on direct quotes in active markets or measured using a valuation technique. For OTC derivatives, valuation techniques are usually developed in-house and based on assumptions about the behaviour of the underlying asset and on statistical sce- nario analysis. Most OTC derivatives are categorised as Level 2 in the fair value hierarchy, implying that all signifi- cant model inputs are observable in active markets. Valuations of private equity funds, credit funds and unlisted equity instruments are by nature more uncertain than valuations of more actively traded equity instru- ments. Emphasis is put on using a consistent approach across all assets and over time. The methods used are con- sistent with the International Private Equity and Venture Capital Valuation Guidelines issued by the IPEV Board. The guidelines are considered as best practice in the industry. For US-based funds, similar methods are applied. Furthermore, Nordea holds loans and issued debt secu- rities in the subsidiary Nordea Kredit Realkreditaktie- selskab at fair value. When Nordea grants mortgage loans to borrowers, in accordance with the Danish mortgage legislation, Nordea at the same time issues debt securities with matching terms, also called match funding. The fair value of the debt securities issued is based on quoted prices. As borrowers have the right to purchase debt secu- rities issued by Nordea in the market and return these as repayment for their loans, the fair value of the loans is the same as the fair value of the bonds issued (due to the revaluation of the repayment option embedded in the loan) adjusted for changes in the credit risk of the bor- rower and the fair value of the margin associated with each loan. Deposits held at fair value primarily relate to assets in pooled schemes and unit-linked investment contracts where the fair value of the deposits equal the fair value of the assets held on behalf of customers. The fair value of financial assets and liabilities is gener- ally calculated as the theoretical net present value of the individual instruments. This calculation is supplemented by portfolio adjustments. Nordea incorporates credit valuation adjustments (CVAs) and debit valuation adjustments (DVAs) into deriv- ative valuations. CVAs and DVAs reflect the impact on fair value from the counterparty´s credit risk and Nordea’s own credit quality, respectively. Calculations are based on esti- mates of exposure at default, probability of default (PD) and recovery rates on a counterparty basis. Generally, exposure at default for CVAs and DVAs is based on the expected exposure and estimated through the simulation of underlying risk factors. Where possible, Nordea obtains credit spreads from the credit default swap (CDS) market, and PD is inferred from this data. For counterparties that do not have a liquid CDS, the PD is estimated using a cross-sectional regression model, which calculates an appropriate proxy CDS spread based on each counterpar- ty’s rating, region and industry. The impact of funding costs and funding benefits on the valuation of uncollateralised and imperfectly collater- alised derivatives is partly reflected in the calculated net present value through the applied discounting curve and partly through the addition of a separate funding fair valu- ation adjustment (FFVA). In addition, Nordea applies close-out cost valuation adjustments, model risk adjust- ments for identified model deficiencies and adjustments for independent price verification (IPV) to its fair value measurement. Nordea’s pricing models are calibrated to the market, and if climate risk has any impact on a particular market, it will already have been taken into consideration by other market participants. Hence, Nordea has not implemented any changes to its pricing models to take climate risk into account and no critical valuation adjustments have been made. In the below table, fair value measurements of financial assets and liabilities carried at fair value on the balance sheet have been categorised under the three levels of the IFRS fair value hierarchy: quoted prices in active markets for the same instrument (Level 1), a valuation technique using observable data (Level 2) and a valuation technique using unobservable data (Level 3). The Level 1 category includes listed derivatives, listed equities, government bonds in developed countries as well as the most liquid mortgage bonds and corporate bonds where direct tradable price quotes exist. The Level 2 cate- gory includes the majority of Nordea’s OTC derivatives, securities purchased/sold under resale/repurchase agree- ments, securities borrowed/lent, deposits in pooled ===== SIDA 218 ===== Nordea Annual Report 2025 217 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.4 Fair value, cont. schemes and unit-linked investment contracts and other instruments where active markets supply the input to the valuation techniques or pricing models. The Level 3 cate- gory includes investments in unlisted securities, private equity funds, hedge funds, more complex OTC derivatives where unobservable input has a significant impact on fair value, certain complex or structured financial instruments and illiquid interest-bearing securities. Transfers between Levels 1 and 2 During the year Nordea transferred items recognised in the line item “Interest-bearing securities“ of EUR 2,657m (EUR 1,804m) from Level 1 to Level 2 and of EUR 1,889m (EUR 693m) from Level 2 to Level 1 in the fair value hierarchy. Furthermore, Nordea transferred items recognised in the line item “Debt securities in issue“ of EUR 3,695m (EUR 4,556m) from Level 1 to Level 2 and of EUR 1,960m (EUR 2,123m) from Level 2 to Level 1. Nordea also transferred items recognised in the line item “Other liabilities“ of EUR 119m (EUR 150m) from Level 1 to Level 2 and of EUR 71m (EUR 342m) from Level 2 to Level 1. The transfers from Level 1 to Level 2 were due to the instruments ceasing to be actively traded during the year, which meant that fair values were obtained using valuation techniques with observable market inputs. The transfers from Level 2 to Level 1 were due to the instruments again being actively traded during the year, which meant that reliable quoted prices were obtained in the market. Transfers between lev- els are considered to have occurred at the end of the year. Financial assets and liabilities held at fair value on the balance sheet Categorisation in the fair value hierarchy EURm Quoted prices in active markets for the same instrument (Level 1) - of which Life & Pension Valuation technique using observable data (Level 2) - of which Life & Pension Valuation technique using unobservable data (Level 3) - of which Life & Pension Total 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Assets at fair value on the balance sheet1 Loans to central banks – – – – 1,036 975 – – – – – – 1,036 975 Loans to credit institutions – – – – 2,135 1,001 – – – – – – 2,135 1,001 Loans to the public – – – – 89,179 81,384 – – – – – – 89,179 81,384 Interest-bearing securities 22,967 24,581 1,257 1,072 50,099 45,747 4,800 5,026 1,209 2,042 382 1,005 74,275 72,370 Shares 37,268 32,907 23,269 19,953 187 173 108 77 2,132 2,308 801 920 39,587 35,388 Assets in pooled schemes and unit-linked investment contracts 68,032 58,561 64,189 54,394 1,287 1,205 1,287 1,205 482 361 482 361 69,801 60,127 Derivatives 71 55 – – 16,213 24,209 18 7 1,349 947 – – 17,633 25,211 Other assets – – – – 3,982 5,821 – – 1 12 1 12 3,983 5,833 Total 128,338 116,104 88,715 75,419 164,118 160,515 6,213 6,315 5,173 5,670 1,666 2,298 297,629 282,289 Liabilities at fair value on the balance sheet1 Deposits by credit institutions – – – – 23,090 20,735 – – – – – – 23,090 20,735 Deposits and borrowings from the public – – – – 21,130 17,030 – – – – – – 21,130 17,030 Deposits in pooled schemes and unit-linked investment contracts – – – – 71,611 61,713 67,604 57,396 – – – – 71,611 61,713 Debt securities in issue 2,829 2,522 – – 50,615 50,669 – – 1,442 1,205 – – 54,886 54,396 Derivatives 202 118 – – 16,810 24,332 46 49 1,066 584 – – 18,078 25,034 Other liabilities 1,518 1,152 – – 6,493 6,512 – 2 164 85 – – 8,175 7,749 Total 4,549 3,792 – – 189,749 180,991 67,650 57,447 2,672 1,874 – – 196,970 186,657 1) All items are measured at fair value on a recurring basis at the end of each reporting period. ===== SIDA 219 ===== Nordea Annual Report 2025 218 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.4 Fair value, cont. Fair value gains/losses recognised in the income statement during the year Recognised in other compre hensive income Transfers into Level 3 Transfers out of Level 3EURm 1 Jan Realised Unrealised Purchases/ issues Sales Settlements Reclassifi- cation1 Translation differences 31 Dec 2025 Interest-bearing securities 2,042 35 138 – 405 -448 -50 183 -1,090 – -6 1,209 - of which Life & Pension 1,005 29 3 – 71 -286 -44 84 -476 – -4 382 Shares 2,308 48 -31 – 129 -314 -35 1 -2 – 28 2,132 - of which Life & Pension 920 45 -93 – 52 -111 -34 – – – 22 801 Assets in pooled schemes and unit-linked investment contracts 361 10 -4 – 133 -20 -7 7 -9 – 11 482 - of which Life & Pension 361 10 -4 – 133 -20 -7 7 -9 – 11 482 Derivatives (net) 363 79 -336 – – – -79 227 29 – – 283 Other assets 12 – – – – – -11 – – – – 1 - of which Life & Pension 12 – – – – – -11 – – – – 1 Debt securities in issue 1,205 -2 -60 -1 713 – -201 23 -235 – – 1,442 Other liabilities 85 – -14 – 119 -36 – 11 -1 – – 164 2024 Loans to credit institutions – – – – 16 – -16 – – – – 0 Loans to the public 2 – – – 23 – -25 – – – – 0 Interest-bearing securities 1,736 32 -118 – 313 -218 -60 579 -166 – -56 2,042 - of which Life & Pension 1,214 39 -35 – 21 -144 -42 76 -70 – -54 1,005 Shares 2,321 57 121 – 180 -275 -56 3 -39 -11 7 2,308 - of which Life & Pension 1,041 47 11 – 56 -125 -46 – -39 – -25 920 Assets in pooled schemes and unit-linked investment contracts 436 26 -34 – 154 -159 -7 4 -50 – -9 361 - of which Life & Pension 436 26 -34 – 154 -159 -7 4 -50 – -9 361 Derivatives (net) 167 -2 194 – – – 2 26 -24 – – 363 Other assets 19 – – – – – -7 – – – – 12 - of which Life & Pension 18 – – – – – -6 – – – – 12 Deposits by credit institutions – – – – 136 – -136 – – – – 0 Debt securities in issue 1,292 65 -177 5 640 – -371 8 -257 – – 1,205 Other liabilities 145 – 46 – 3 -118 – 9 – – – 85 1) Reclassification related to conversion of Visa C-shares to Visa A-shares. Movements in Level 3 Unrealised gains and losses relate to assets and liabilities held at the end of the year. The transfers out of Level 3 during the year were due to observable market data becoming available. The transfers into Level 3 during the year were due to observable market data no longer being available. Transfers between levels are considered to have occurred at the end of the year. Fair value gains and losses in the income statement during the year are included in “Net result from items at fair value” (see Note G2.5 “Total net result from items at fair value”). Assets and liabilities related to derivatives are presented net in the table. The valuation process for Level 3 fair value measurements The valuation process at Nordea consists of several steps. The first step is to determine the end-of-day mid-prices. It is the responsibility of the business areas to determine the cor- rect prices for the valuation process. These prices are either internally marked prices set by a trading unit or externally sourced prices. The valuation prices are then controlled and tested by a valuation control function within the first line of defence, which is independent from the risk-taking units of the front office. The cornerstone of the control process is the independent price verification (IPV). The IPV test comprises verification of the correctness of valuations by comparing end-of-day mid-prices to independently sourced data. The result of the IPV is analysed and any findings are escalated as appropriate. Also, adjustments for IPV variances are included in fair value. The verification of the correctness of prices and inputs is as a minimum carried out on a monthly basis and is carried out daily for many products. Third-party information, such as broker quotes and pricing services, is used as benchmark data in the verification. The quality of the benchmark data is assessed on a regular basis. The valuation adjustment at portfolio level and the deferred Day 1 profit/loss on Level 3 transactions are cal- culated and reported on a monthly basis. The actual assessment of instruments in the fair value hierarchy is performed on a continuous basis. Specialised teams within the risk organisation are responsible for second line of defence oversight of valua- tions and controls performed by the business areas and Group Finance (the first line of defence). ===== SIDA 220 ===== Nordea Annual Report 2025 219 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.4 Fair value, cont. Valuation techniques and inputs used in fair value measurements of financial instruments in Level 3 31 Dec 2025 31 Dec 2024 EURm Fair value Of which Life & Pension1 Valuation techniques Unobservable input Range of fair value Fair value Of which Life & Pension1 Valuation techniques Unobservable input Range of fair value Loans Loans to the public – – Discounted cash flows Interest rate – – – Discounted cash flows Interest rate – Total – – – – – – Interest-bearing securities Public bodies 26 24 Discounted cash flows Credit spread -1/1 118 105 Discounted cash flows Credit spread -5/5 Mortgage and other credit institutions 813 193 Discounted cash flows Credit spread -68/68 1,467 622 Discounted cash flows Credit spread -103/103 Corporates2 370 165 Discounted cash flows Credit spread -23/23 457 278 Discounted cash flows Credit spread -23/23 Total 1,209 382 -92/92 2,042 1,005 -131/131 Shares Private equity funds 1,333 481 Net asset value3 -145/145 1,404 566 Net asset value3 -155/155 Hedge funds 129 129 Net asset value3 -12/12 151 150 Net asset value3 -14/14 Credit funds 450 53 Net asset value/market consensus3 -43/43 482 36 Net asset value/market consensus3 -47/47 Other funds 125 115 Net asset value/fund prices3 -9/9 166 157 Net asset value/fund prices3 -11/11 Other4 577 505 – -50/50 466 372 – -40/40 Total 2,614 1,283 -259/259 2,669 1,281 -267/267 Derivatives Interest rate derivatives 197 – Option model Correlations -8/8 180 – Option model Correlations -9/11 Volatilities Volatilities Equity derivatives -19 – Option model Correlations -7/3 12 – Option model Correlations -6/3 Volatilities Volatilities Dividend Dividend Foreign exchange derivatives 133 – Option model Correlations -3/3 144 – Option model Correlations -1/1 Volatilities Volatilities Credit derivatives -28 – Credit derivative model Correlations -3/3 27 – Credit derivative model Correlations -9/10 Recovery rates Recovery rates Volatilities Volatilities Total 283 – -21/27 363 – -25/25 Debt securities in issue Issued structured bonds -1,442 – Credit derivative model Correlations -7/7 -1,205 – Credit derivative model Correlations -6/6 Recovery rates Recovery rates Volatilities Volatilities Total -1,442 – -7/7 -1,205 – -6/6 Other, net Other assets and other liabilities, net -163 1 – – -16/16 -73 12 – – -8/8 Total -163 1 -16/16 -73 12 -8/8 1) Investments in financial instruments are a major part of the life insurance business. The financial instruments are acquired to fulfil the obligations under the insurance and investment contracts. The gains or losses on these instruments are almost exclusively allocated to policyholders and consequently do not affect Nordea’s equity. 2) Of which EUR 150m (EUR 150m) is priced at a credit spread (the difference between the discount rate and XIBOR) of 1.45% (1.45%). A reasonable change in this credit spread would not affect the fair value due to callability features. 3) Fair values are based on prices and net asset values provided by external suppliers/custodians. The prices are fixed by the suppliers/custodians on the basis of the performance of the assets underlying the investments. For private equity funds, the dominant measurement methodology used by the suppliers/custodians is consistent with the International Private Equity and Venture Capital Valuation (IPEV) Guidelines issued by Invest Europe (formerly EVCA). Approximately 65% (60%) of the private equity fund investments are internally adjusted/valued based the IPEV Guidelines. The carrying amounts are in a range of 1% to 100% (1% to 100%) compared with the values received from suppliers/custodians. 4) Of which EUR 482m (EUR 361m) relates to assets in pooled schemes and unit-linked investment contracts. ===== SIDA 221 ===== Nordea Annual Report 2025 220 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.4 Fair value, cont. The table above shows, for each class of assets and liabili- ties categorised in Level 3, the fair value, the valuation techniques used to estimate the fair value, significant unobservable inputs used in the valuation techniques and the fair value sensitivity to changes in key assumptions. The column “Range of fair value” in the table above shows the sensitivity of the fair value of Level 3 financial instruments to changes in key assumptions. In case the exposure to an unobservable parameter is offset across dif- ferent instruments, only the net impact is disclosed in the table. The range disclosed is likely to be greater than the true uncertainty in determining the fair value of these instruments as all unobservable parameters are in practice unlikely to be simultaneously at the extremes of their ranges of reasonably possible alternatives. The disclosure is neither predictive nor indicative of future movements in fair value. The reported sensitivity (range) of the fair value of derivatives follows the same methodologies as applied to the reporting of the model risk and market price uncer- tainty additional valuation adjustments (AVAs) as defined in Commission Delegated Regulation (EU) No 2016/101 of 26 October 2015 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for prudent valuation under Article 105(14). In order to calculate the sensitivity (range) of the fair value of shares and interest-bearing securities, the fair value is increased and decreased within a total range of 2–10 percentage points depending on the valuation uncer- tainty and underlying assumptions. Higher ranges are applied to instruments with more uncertain valuations rel- ative to actively traded instruments and underlying uncer- tainties in individual assumptions. Movement of deferred Day 1 profit In some cases, the transaction price for financial instru- ments differs from the fair value at initial recognition measured using a valuation technique, mainly due to the fact that the transaction price is not established in an active market. If there are significant unobservable inputs used in the valuation technique (Level 3), the financial instrument is recognised at the transaction price and any difference between the transaction price and the fair value at initial recognition measured using a valuation technique (Day 1 profit) is deferred. The table below shows the aggregated difference yet to be recognised in the income statement at the beginning and end of the period. The table also shows a reconciliation of how this aggregated difference changed during the year. Deferred Day 1 profit – derivatives, net EURm 2025 2024 Amount at beginning of year 70 73 Deferred profit/loss on new transactions 45 42 Recognised in the income statement during the year1 -43 -45 Amount at end of year 72 70 1) Of which EUR -4m (EUR -5m) due to transfers of derivatives from Level 3 to Level 2. Financial assets and liabilities not held at fair value on the balance sheet 31 Dec 2025 31 Dec 2024 EURm Carrying amount Fair value Carrying amount Fair value Level in fair value hierarchy3 Assets not held at fair value on the balance sheet Cash and balances with central banks 38,206 38,206 46,562 46,562 1 Loans 300,348 301,733 281,010 282,091 3 Interest-bearing securities 5,597 5,559 1,094 1,094 1,2,3 Other assets 926 926 768 768 3 Prepaid expenses and accrued income 457 457 807 807 3 Total 345,534 346,881 330,241 331,322 Liabilities not held at fair value on the balance sheet Deposits and debt instruments1 382,418 383,423 364,137 364,708 3 Other liabilities2 2,714 2,714 3,116 3,116 3 Accrued expenses and prepaid income 8 8 6 6 3 Total 385,140 386,145 367,259 367,830 1) For non-maturing deposits fair value equals the nominal amount, whereas the carrying amount also includes the revaluation for the hedged items presented on the balance sheet row “Fair value of hedged items in portfolio hedges of intrest rate risk”. 2) Lease liabilities presented in the line item “Other liabilities” in Note G3.3 “Classification and measurement” are not included in this table. 3) Covers both 31 December 2025 and 31 December 2024. Cash and balances with central banks Fair value measurement of cash is based on quoted prices (unadjusted) in active markets for identical assets and there- fore categorised into Level 1. Balances with central banks are due to its short-term nature considered to be equivalent to cash and therefore also categorised into Level 1. Loans The fair value of “Loans to central banks”, “Loans to credit institutions” and “Loans to the public” has been estimated by discounting the expected future cash flows with an assumed customer interest rate that would have been used in the market if the loans had been issued at the time of the measurement. The assumed customer interest rate is calculated as the benchmark interest rate plus the aver- age margin on new lending in Personal Banking, Business Banking and Large Corporates & Institutions, respectively. The fair value measurement is categorised into Level 3 in the fair value hierarchy. Interest bearing-securities The fair value is EUR 5,559m (EUR 1,094m), of which EUR 3,586m (EUR 0m) is categorised into level 1 and EUR 1,947m (EUR 772m) into Level 2 and EUR 26m (EUR 322m) into Level 3. The measurement principles follow those for similar instruments that are held at fair value on the bal- ance sheet. Other assets and prepaid expenses and accrued income The balance sheet line items “Other assets” and “Prepaid expenses and accrued income” consist of short-term receivables. The fair value is therefore considered to equal the carrying amount and is categorised into Level 3 in the fair value hierarchy. Deposits and debt instruments The fair value of the balance sheet line items “Deposits by credit institutions”, “Deposits and borrowings from the public”, “Debt securities in issue” and “Subordinated ===== SIDA 222 ===== Nordea Annual Report 2025 221 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.4 Fair value, cont. liabilities” has been calculated as the carrying amount adjusted for fair value changes in interest rate risk and in own credit risk. However, for non-maturing deposits the fair value equals the nominal amount. The fair value is cat- egorised into Level 3 in the fair value hierarchy. The fair value changes related to interest rate risk are based on changes in relevant interest rates compared with the corresponding nominal interest rates of the portfolios. The fair value changes in credit risk are calculated as the difference between the credit spread of the nominal interest rate and the current spread observed in the mar- ket. This calculation is performed on an aggregated level for all long-term issuance recognised in the balance sheet items “Debt securities in issue” and “Subordinated liabili- ties”. As the contractual maturity is short for “Deposits by credit institutions” and “Deposits and borrowings from the public”, the changes in Nordea´s own credit risk related to these items are assumed not to be significant. This is also the case for short-term issuance recognised in the balance sheet line item “Debt securities in issue”. Other liabilities and accrued expenses and prepaid income The balance sheet items “Other liabilities” and “Accrued expenses and prepaid income” consist of short-term liabil- ities, mainly liabilities related to securities traded but not settled. The fair value is therefore considered to be equal to the carrying amount and is categorised into Level 3 in the fair value hierarchy. G3.5 Offsetting Accounting policies Nordea offsets financial assets and liabilities on the balance sheet if there is a legal right to offset and if the intent is to settle the items net or realise the asset and settle the liability simultaneously. The legal right to offset should exist both in the ordinary course of business and in case of the default, bank- ruptcy and insolvency of Nordea and its counterparties. Financial instruments set off on the balance sheet or subject to netting agreements 31 Dec 2025 31 Dec 2024 Amounts not set off but subject to master netting agreements and similar agreements Amounts not set off but subject to master netting agreements and similar agreements EURm Gross recognised financial assets1 Gross recognised financial liabilities set off on balance sheet Net carrying amount on balance sheet2 Financial instruments Financial collateral received Cash collateral received Net amount Gross recognised financial assets1 Gross recognised financial liabilities set off on balance sheet Net carrying amount on balance sheet2 Financial instruments Financial collateral received Cash collateral received Net amount Assets Derivatives3 163,686 -146,053 17,633 -13,127 – -3,367 1,139 139,246 -114,035 25,211 -18,403 – -4,221 2,587 Reverse repurchase agreements 41,763 -7,980 33,783 – -33,783 – 0 33,381 -5,488 27,893 – -27,893 – 0 Securities borrowing agreements 5,555 – 5,555 – -5,555 – 0 2,789 – 2,789 – -2,789 – 0 Variation margin 3,932 -3,932 0 – – – 0 1,904 -1,904 0 – – – 0 Total 214,936 -157,965 56,971 -13,127 -39,338 -3,367 1,139 177,320 -121,427 55,893 -18,403 -30,682 -4,221 2,587 31 Dec 2025 31 Dec 2024 Amounts not set off but subject to master netting agreements and similar agreements Amounts not set off but subject to master netting agreements and similar agreements EURm Gross recognised financial liabilities1 Gross recognised financial assets set off on balance sheet Net carrying amount on balance sheet2 Financial instruments Financial collateral pledged Cash collateral pledged Net amount Gross recognised financial liabilities1 Gross recognised financial assets set off on balance sheet Net carrying amount on balance sheet2 Financial instruments Financial collateral pledged Cash collateral pledged Net amount Liabilities Derivatives3 167,062 -148,984 18,078 -13,127 – -3,029 1,922 139,829 -114,795 25,034 -18,403 – -5,167 1,464 Repurchase agreements 40,912 -7,980 32,932 – -32,932 – 0 31,120 -5,488 25,632 – -25,632 – 0 Securities lending agreements 11,339 – 11,339 – -11,339 – 0 12,203 – 12,203 – -12,203 – 0 Variation margin 1,001 -1,001 0 – – – 0 1,144 -1,144 0 – – – 0 Total 220,314 -157,965 62,349 -13,127 -44,271 -3,029 1,922 184,296 -121,427 62,869 -18,403 -37,835 -5,167 1,464 1) All amounts are measured at fair value, except for reverse repurchase agreements of EUR 4,465m (EUR 2,804m) and repurchase agreements of EUR 4,473m (EUR 2,812m) which are measured at amortised cost. 2) Reverse repurchase agreements and securities borrowing agreements are classified as “Loans to central banks“, “Loans to credit institutions“ or “Loans to the public“ on the balance sheet. Repurchase agreements and securities lending agreements are classified as “Deposits by credit institutions“ or “Deposits and borrowings from the public“ on the balance sheet. 3) Excluding derivatives in pooled schemes and unit-linked investment contracts as most or all of the risk in those contracts is borne by the customers or the policyholders. ===== SIDA 223 ===== Nordea Annual Report 2025 222 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.5 Offsetting, cont. Exchanged-traded derivatives are generally accounted for and settled on a daily basis when cash is paid or received (variation margin), and the instrument is reset to market terms. Derivative assets, derivative liabilities, cash collat- eral receivables and cash collateral liabilities against cen- tral counterparty clearing houses are set off on the bal- ance sheet if the assets and liabilities are settled in the same transaction currency and relate to the same central counterparty. Derivative assets, derivative liabilities, cash collateral receivables and cash collateral liabilities related to bilateral OTC derivative transactions are not set off on the balance sheet. In addition, loans and deposits related to repurchase and reverse repurchase transactions with central counter- party clearing houses are set off on the balance sheet if the assets and liabilities relate to the same central coun- terparty, are settled in the same currency and have the same maturity date. Loans and deposits related to repur- chase and reverse repurchase transactions that are made in accordance with the Global Master Repurchase Agreement are set off on the balance sheet if the assets and liabilities relate to the same counterparty, are settled in the same currency, have the same maturity date and are settled through the same settlement institution. The fact that a financial instrument is accounted for on a gross basis on the balance sheet does not imply that the financial instruments are not subject to master netting agreements or similar arrangements. Generally, financial instruments (derivatives, repurchase agreements and securities lending transactions) are subject to master net- ting agreements, and Nordea is consequently able to ben- efit from netting in any calculations involving counterparty credit risk in the event of the default of its counterparties. For a description of counterparty risk, see also Note G11 “Risk and liquidity management”, section 3 “Counterparty credit risk“. G3.6 Hedge accounting Accounting policies When a hedging relationship meets the specified hedge accounting criteria set out in IAS 39, Nordea applies one of three types of hedge accounting: • fair value hedge accounting • cash flow hedge accounting • net investment hedges. Nordea has chosen, as a policy choice permitted under IFRS 9, to continue to apply hedge accounting in accordance with the carve-out version of IAS 39. Under the EU carve-out version of IAS 39, fair value macro hedge accounting may for instance, in comparison with IAS 39 as issued by the IASB, be applied to on-demand (core) deposits, and hedge ineffectiveness in a hedge of assets with prepay- ment options is only recognised when the revised estimate of the amount of cash flows falls below the designated bottom layer. The application of hedge accounting requires the hedge to be highly effective. A hedge is regarded as highly effective if, at inception and throughout its life, changes in the fair value of the hedged item, as regards the hedged risk, can be expected to be essentially offset by changes in the fair value of the hedging instrument. The result should be within a range of 80–125%. Transactions that are entered into in accordance with Nordea’s hedging objectives but do not qualify for hedge accounting are economic hedge relationships. Fair value hedge accounting Fair value hedge accounting is applied when deriva- tives are hedging changes in the fair value of a rec- ognised asset or liability attributable to a specific risk. Fair value hedge accounting can be performed at both micro level (single assets/liabilities or closed portfolios of assets/liabilities where one or more hedged items are hedged using one or more hedg- ing instruments) and macro level (open portfolios where groups of items are hedged using multiple hedging instruments). Changes in the fair value of derivatives (hedging instruments), as well as changes in the fair value of the hedged item attributable to the risks being hedged, are recognised separately in the income statement under “Net result from items at fair value”. Given that the hedge is effective, the change in the fair value of the hedged item will be offset by the change in the fair value of the hedging instrument. The changes in the fair value of the hedged item, attributable to the risks being hedged with the derivative instrument, are reflected in an adjustment to the carrying amount of the hedged item, which is also recognised in the income statement. The fair value changes of the hedged items held at amor- tised cost in hedges of interest rate risks in macro hedges are reported separately in the balance sheet item “Fair value changes of hedged items in portfo- lio hedges of interest rate risk”. Any ineffectiveness is recognised in the income statement under the item “Net result from items at fair value”. If the hedging relationship does not meet the hedge accounting requirements, hedge accounting is discontinued. The hedging instrument is measured at fair value through profit or loss and the change in the fair value of the hedged item, up to the point when the hedge relationship is terminated, is amor- tised to the income statement on a straight-line basis over the remaining maturity of the hedged item. Cash flow hedge accounting Cash flow hedge accounting is applied when hedg- ing the exposure to variability in future cash flows. The portion of the gain or loss on the hedging instrument, determined to be an effective hedge, is recognised in other comprehensive income and accumulated in the cash flow hedge reserve in equity. The ineffective portion of the gain or loss on the hedging instrument is recognised in the item “Net result from items at fair value” in the income statement. The hedge is considered to be ineffective to the extent that the cumulative change in fair value from the inception of the hedge is larger for the hedging instrument than for the hedged item. Gains or losses on hedging instruments recog- nised in the cash flow hedge reserve in equity through other comprehensive income are recycled and recognised in the income statement in the same period as the hedged item affects profit or loss, nor- mally in the period in which interest income or inter- est expense is recognised. A hedged item in a cash flow hedge can be highly probable cash flows from recognised assets or liabil- ities or from future assets or liabilities. Derivatives used as hedging instruments are always measured at fair value. If the hedging relationship does not meet the hedge accounting requirements, hedge accounting is discontinued. Changes in the unrealised value of the hedging instrument will prospectively from the last time it was proven effective be accounted for in the income statement. The cumulative gain or loss on the hedging instrument that has been recognised in the cash flow hedge reserve in equity through other comprehensive income from the period when the hedge was effective is reclassified from equity to “Net result from items at fair value” in the income statement if the expected transaction is no longer expected to occur. If the expected transaction is no longer highly probable but is still expected to occur, the cumula- tive gain or loss on the hedging instrument that has been recognised in other comprehensive income from the period when the hedge was effective will remain in other comprehensive income until the transaction occurs or is no longer expected to occur. Net investment hedges Net investment hedges are used to hedge the for- eign currency risk of net investments in foreign ===== SIDA 224 ===== Nordea Annual Report 2025 223 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.6 Hedge accounting, cont. operations. Foreign currency risk is defined as the risk of loss on investments in foreign operations which have a functional currency different from that of the Group reporting currency. The foreign exchange spot risk component of financial instruments that are designated as hedging instruments in a hedge of a net investment in a group undertaking is recognised in other compre- hensive income, to the extent that the hedge is effective. This is to offset the translation differences affecting other comprehensive income when consol- idating the group undertaking into Nordea, including the revaluation of any extended net investments. Any ineffectiveness is recognised in the income statement under “Net result from items at fair value”. See also section “Translation of assets and liabili- ties denominated in foreign currencies” in Note G1 “Accounting policies”. Critical judgements and estimation uncertainty One important judgement in connection with cash flow hedge accounting is the choice of method used for effectiveness testing. Where Nordea applies cash flow hedge account- ing, the hedging instruments used are cross-cur- rency interest rate swaps (for mid-term or long-term maturities) or FX swaps/FX forwards (for short-term maturities) which are always held at fair value. The currency component is designated as a cash flow hedge of the currency risk (including cross-currency basis margin and swap points) and the interest com- ponent as a fair value hedge of the interest rate risk. The hypothetical derivative method is used when measuring the effectiveness of these cash flow hedges, meaning that the change in a perfect hypo- thetical swap is used as proxy for the present value of the cumulative change in expected future cash flows on the hedged transaction (the currency com- ponent). Critical judgement has to be exercised when defining the characteristics of the perfect hypothetical swap. Derivatives used for hedge accounting Fair value Nominal amountEURm Positive Negative 31 Dec 2025 Fair value hedges1 1,731 2,336 191,700 Cash flow hedges1 794 551 33,533 Net investment hedges 215 280 10,106 Total 2,740 3,167 235,339 31 Dec 2024 Fair value hedges1 2,162 2,986 210,990 Cash flow hedges1 2,265 72 34,093 Net investment hedges 134 141 8,165 Total 4,561 3,199 253,248 1) Some cross-currency interest rate swaps are used as both fair value hedges and cash flow hedges. The nominal amounts of these instruments have been split between the lines “Fair value hedges“ and “Cash flow hedges“ in the table above based on the relative fair value of these hedging instruments. As at 31 December 2025 the total nominal amount of cross-currency interest rate swaps amounted to EUR 33,086m (EUR 32,593m). The table above shows the fair value of derivatives used for hedge accounting together with their nominal amounts. The nominal amounts indicate the volume of transactions outstanding at year end and are neither indic- ative of market risk nor credit risk. The fair value and nomi- nal amount of derivatives in this note represent derivatives before offsetting between assets and liabilities on the bal- ance sheet (gross amount) as the gross amount better reflects Nordea’s exposure in relation to the hedged risk. Risk management As part of its risk management policy, Nordea has identi- fied a series of risk categories with corresponding hedging strategies using derivative instruments, as set out in sec- tion 4 “Market risk” in Note G11 “Risk and liquidity management”. Nordea classifies its exposures to market risk into either trading (the trading book) or non-trading (the banking book) portfolios which are managed separately. The trading book consists of all positions in financial instruments held by Nordea either with trading intent or in order to hedge positions held with trading intent. Positions held with trading intent are those held intentionally for short-term resale or with the intention of benefiting from actual or expected short-term price differences between buying and selling prices or from other price or interest rate variations. The banking book comprises all positions not held in the trading book. All hedges qualifying for hedge account- ing are treated as banking book instruments. The hedging instruments and risks hedged are further described below by risk and hedge accounting type. At inception, Nordea formally documents how the hedging relationship meets the hedge accounting criteria, including the economic relationship between the hedged item and the hedging instrument, the nature of the risk, the risk management objective and strategy for undertak- ing the hedge and the method used to assess the effec- tiveness of the hedging relationship on an ongoing basis. Interest rate risk Nordea’s primary business model is to collect deposits and use these funds to provide loans and other funding prod- ucts and debt instruments to its customers. Interest rate risk is the impact that changes in interest rates could have on Nordea’s margins, profit or loss and equity. Interest rate risk arises from mismatches between interest-bearing assets and interest-bearing liabilities. As part of Nordea’s risk management strategy, the Board has established limits on the non-trading interest rate gaps for interest rate sensitivities. These limits are consistent with Nordea’s risk appetite and Nordea aligns its hedge accounting objectives to keep exposures within those limits. Nordea’s policy is to monitor positions on a daily basis. For further information on measurement of risks, see section 4 “Market risk“ in Note G11 “Risk and liquidity management”. For hedge accounting relationships related to interest rate risk, the hedged risk is the change in the fair value of the hedged item due to changes in benchmark interest rates. The hedge ratio is established by matching the nom- inal amount of the derivatives with the principal of the hedged items. In order to hedge and manage the risk and limit the impact on Nordea’s margins, profit or loss and equity, Nordea uses hedging instruments to swap interest rate exposures into either fixed or variable rates. The risk components of hedged items designated by the Group consist of: • Benchmark interest rate risk as a component of interest rate risk, i.e. IBORs. Using the benchmark interest rate risk can result in other risks, such as credit risk and liquidity risk, being excluded from the hedge accounting relationship. • Components of cash flows of hedged items. The benchmark rate is determined as a change in the present value of the future cash flows using benchmark discount curves. The benchmark rate is separately identifi- able and reliably measurable and is typically the most sig- nificant component of the overall change in fair value or cash flows. Fair value hedges Nordea enters into interest rate swaps and cross-currency interest rate swaps in order to reduce or eliminate changes in the fair value of the hedged items due to interest rate risk. Hedged items are fixed-rate financial assets and liabili- ties in both local and foreign currencies such as loans, debt securities classified in the category “Fair value through other comprehensive income”, deposits and debt securities in issue. Hedging instruments are interest rate swaps and cross-currency interest rate swaps (the portion related to interest rate risk is designated in fair value hedge relationships). Nordea applies fair value hedge accounting both at micro and macro level. The micro level is applied for hedg- ing fixed-rate debt securities classified in the category “Fair value through other comprehensive income” and fixed-rate debt securities in issue. The macro level is applied for hedging loans and deposits where fixed-rate loans and term deposits are initially offset and the residual exposure hedged using a portfolio of interest rate swaps up to the designated portion of either the net asset or lia- bility in a given time bucket. For hedge effectiveness testing Nordea uses both criti- cal terms matching (for prospective effectiveness testing) and regression analysis (for retrospective effectiveness testing). When assessing hedge effectiveness ===== SIDA 225 ===== Nordea Annual Report 2025 224 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.6 Hedge accounting, cont. retrospectively, Nordea measures the fair value of a hedg- ing instrument and compares the change in the fair value of the hedging instrument with the change in the fair value of the hedged item. The effectiveness measurement is made on a cumulative basis. Hedge ineffectiveness can arise from: • differences in timing of cash flows of hedged items and hedging instruments • different interest rate curves applied to discount the hedged items and hedging instruments • the effect of changes in Nordea’s or a counterparty’s credit risk on the fair value of the hedging instruments • the disparity between expected and actual prepayments on the loan portfolio. Nordea has an established hedging programme for non-maturing core deposits (NMD) and applies hedge accounting in accordance with the EU carve-out version of IAS 39. The behavioural model is subject to regular semi-annual reviews and/or recalibration of risk parame- ters. The most recent review of the model performed in 2025 addressed the changes in the behavioural pass- through sensitivities of market to customer rates in relation to the increased interest rate environment, which impacted the expected repricing profile (modelled maturity) of the non-maturing deposits (modelled split of NMDs into an interest sensitive and non-interest sensitive portion). The hedging approach is based on a target hedge ratio and deviation band set by the Asset & Liability Committee (ALCO) commensurate with Nordea’s risk appetite limits for Interest Rate Risk in the Banking Book (IRRBB). The overall hedging strategy assumes that a conservative buffer of the eligible and unhedged portion of non-maturing deposits is maintained above the hedged bottom layer. The average volume of the hedged portion amounted to EUR 33.6bn (EUR 32.3bn), as of 31 December the hedged portion amounted to EUR 36.5bn (EUR 31.1bn) and as of 31 December the hedge ratio was 73% (57%). Nordea’s assess- ment is that the risk of unanticipated deposit withdrawals by bank customers that would have significant impact on, or lead to discontinuation of, the NMD hedging relationships is low. Nordea assesses the risk and potential impact of deposit outflow that could lead to a discontinuation of the hedging relationship in the reverse stress testing program. The table below presents the accumulated fair value adjustments arising from continuing and discontinued hedging. Hedged items Interest rate risk 31 Dec 2025 Interest rate risk 31 Dec 2024 EURm Carrying amount of hedged assets/ liabilities Of which accumulated amount of fair value hedge adjustment2 Carrying amount of hedged assets/ liabilities Of which accumulated amount of fair value hedge adjustment2 Fair value hedges – micro level Interest-bearing securities 26,904 0 26,129 0 Assets 26,904 0 26,129 0 Debt securities in issue 68,768 -450 70,539 -662 Subordinated liabilities 7,190 -170 6,350 -328 Liabilities 75,958 -620 76,889 -990 Interest rate risk 31 Dec 2025 Interest rate risk 31 Dec 2024 EURm Carrying amount of hedged assets/ liabilities Accumulated amount of fair value hedge adjustment1, 2 Carrying amount of hedged assets/ liabilities Accumulated amount of fair value hedge adjustment1, 2 Fair value hedges – macro level Loans to the public 43,851 – 66,599 – Assets 43,851 -158 66,599 -243 Deposits by credit institutions 2,948 – 3,071 – Deposits and borrowings from the public 36,193 – 31,145 – Liabilities 39,141 -567 34,216 -458 1) Accumulated fair value adjustment for macro hedges is presented in the line item “Fair value changes of hedged items in portfolio hedges of interest rate risk“ on the balance sheet. 2) Of which EUR 26m (EUR 35m) is related to discontinued hedges of interest rate risk. The following table provides information about the hedging instruments. Hedging instruments Fair value EURm Positive Negative Nominal amount 31 Dec 2025 Fair value hedges Interest rate risk 1,731 2,336 191,700 31 Dec 2024 Fair value hedges Interest rate risk 2,162 2,986 210,990 The table below presents the changes in the fair value of the hedging instruments and the changes in the value of hedged items used as the basis for recognising ineffective- ness. These changes are recognised in the line item “Net result from items at fair value” in the income statement. Hedge ineffectiveness Interest rate risk EURm 2025 2024 Fair value hedges Changes in fair value of hedging instruments 188 616 Changes in value of hedged items used as basis for recognising hedge ineffectiveness -146 -621 Hedge ineffectiveness recognised in the income statement1,2 42 -5 1) Recognised in the line item “Net result from items at fair value“. 2) When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Sources of ineffectiveness include mismatches between the reset frequency of the swap and the benchmark fre- quency and the fair value of the floating leg of the swap on a date other than the reset date. Cash flow hedges Nordea uses cash flow hedges when hedging interest rate risk on lending and borrowing at floating interest rates. Nordea’s cash flow hedges of interest rate risk relate to exposures to the variability in future interest payments and receipts due to the movement of benchmark interest rates on forecast transactions and on recognised financial assets and financial liabilities. This variability in cash flows is hedged by interest rate swaps and cross-currency inter- est rate swaps, fixing the hedged cash flows according to Nordea’s policies and risk management strategy described in section 4 “Market risk“ in Note G11 “Risk and liquidity management”. The hypothetical derivative method is used when meas- uring the effectiveness of cash flow hedges retrospec- tively, meaning that the change in a perfect hypothetical swap is used as proxy for the present value of the cumula- tive change in expected future cash flows from the hedged transaction. The hypothetical derivative represents ===== SIDA 226 ===== Nordea Annual Report 2025 225 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.6 Hedge accounting, cont. the characteristics of the hedged items (variable rate loans) in terms of hedged volume, repricing and interest payment periods. Hedge effectiveness is calculated on a cumulative basis by comparing changes in a portfolio of interest rate swaps (hedging instruments) and hypothetical derivatives. Changes in the valuation of the hedging instru- ments that are part of effective cash flow hedge relation- ships are recognised in the cash flow hedge reserve accu- mulated in equity through other comprehensive income. The possible sources of ineffectiveness in cash flow hedges can generally be the same as those in fair value hedges described above. However, for cash flow hedges, prepayment risk is less relevant. The main causes of hedge ineffectiveness arise from the changes in the timing and the amount of forecast future cash flows. The table below provides information about the hedg- ing instruments in hedges of interest rate risk, including the nominal amount and the fair value of the hedging instruments. Hedging instruments Fair value EURm Positive Negative Nominal amount 31 Dec 2025 Cash flow hedges Interest rate risk 0 0 725 31 Dec 2024 Cash flow hedges Interest rate risk 1 2 1,858 The table below specifies changes in the fair value of hedging instruments arising from continuing hedging rela- tionships, irrespective of whether there has been a change in hedge designation during the year. The table also pre- sents changes in the value of hedged items used to meas- ure hedge ineffectiveness, separately showing the effec- tive and ineffective portions. Hedge ineffectiveness Interest rate risk EURm 2025 2024 Cash flow hedges Changes in fair value of hedging instruments -2 1 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 2 -1 Hedge ineffectiveness recognised in the income statement1,2 – – Hedging gains or losses recognised in other comprehensive income -2 1 1) Recognised in the line item “Net result from items at fair value”. 2) When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Cash flow hedge reserve Interest rate risk EURm 2025 2024 Balance as at 1 Jan -3 -22 Valuation gains/losses -2 1 Tax on valuation gains/losses 0 0 Transferred to the income statement 6 22 Tax on transfers to the income statement -1 -4 Other comprehensive income, net of tax 3 19 Balance as at 31 Dec 0 -3 Of which relates to continuing hedges for which hedge accounting is applied 0 -3 Of which relates to hedging relationships for which hedge accounting is no longer applied – – Maturity profile of the nominal amount of hedging instruments hedging interest rate risk EURm Payable on demand Maximum 3 months 3–12 months 1–5 years More than 5 years Total 31 Dec 2025 Instruments hedging interest rate risk – 15,375 46,050 104,157 26,843 192,425 Total – 15,375 46,050 104,157 26,843 192,425 31 Dec 2024 Instruments hedging interest rate risk – 22,751 58,833 102,685 28,579 212,848 Total – 22,751 58,833 102,685 28,579 212,848 The average interest rate on the fixed leg of instruments hedging interest rate risk was 2.41% (2.41%) as at 31 December 2025. Currency risk Currency risk is the risk that the value of a financial instru- ment will fluctuate due to changes in foreign exchange rates. Foreign exchange risk from trading activities is limited through a VaR limit. Foreign exchange risk from structural exposures (as described below) is limited through a stress loss limit for the CET1 ratio impact from foreign exchange fluctuations in a severe but plausible stress scenario. See section 4 “Market risk“ in Note G11 “Risk and liquidity management”. Nordea’s issuance of credits and borrowing can be denominated in the currency of the borrower or investor. Borrowing, investing and lending are not always executed in the same currency, thus exposing Nordea to a foreign exchange risk. Differences in exposures to individual cur- rencies that exist between different transactions are pre- dominantly matched by entering into cross-currency inter- est rate swaps (for maturities below one year FX swaps/ FX forwards are used). The currency component is desig- nated as a cash flow hedge of the currency risk and the interest component as a fair value hedge of the interest rate risk. In addition to the above, Nordea also has exposure to structural foreign currency risk through its foreign opera- tions that have a functional currency other than Nordea’s presentation currency, EUR (i.e. a translation risk). Fluctuations in spot exchange rates will cause Nordea’s reported net investments in foreign operations to vary and the CET1 ratio to fluctuate due to the currency mismatch between equity and risk exposure amounts. Nordea applies hedge accounting when hedging its investments in fully consolidated foreign operations whose functional currency is not EUR. For hedge accounting relationships related to currency risk, the hedged item is a foreign currency component. The hedge ratio is established by matching the nominal amounts of the derivatives with the principals of the hedged items. The currency component is determined as the change in the present value of the future cash flows using foreign exchange curves. The foreign currency component is sepa- rately identifiable and reliably measurable and is typically the most significant component of the overall change in fair value or cash flows. Cash flow and net investment hedges Hedged items in cash flow hedges of currency risk are future payments of interest and the nominal amount from (1) issuance in foreign currencies (bonds issued, certifi- cates of deposits and commercial paper) as well as (2) intra-group lending in foreign currencies where the for- eign exchange impact is not eliminated on consolidation. For shorter maturities (below one year) Nordea uses FX-swaps/FX forwards as hedging instruments. For longer maturities (above one year) Nordea uses cross-currency interest rate swaps, both float to float and fixed to float, of which the portion related to foreign currency risk, includ- ing the cross-currency basis impact, is designated as a ===== SIDA 227 ===== Nordea Annual Report 2025 226 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.6 Hedge accounting, cont. cash flow hedge. Hedging relationships are established at micro or macro level. For net investment hedges, Nordea uses short-term for- eign exchange swaps as hedging instruments, and changes to the spot rate are designated as the hedged risk. Hedge ineffectiveness can arise to the extent that the hedging instruments exceed in nominal terms the risk exposure from foreign operations. The tables below provide information about the hedg- ing instruments in hedges of currency risks, including the nominal amount and the fair value of the hedging instruments. Hedging instruments Fair value EURm Positive Negative Nominal amount 31 Dec 2025 Cash flow hedges Foreign exchange risk 794 551 32,808 Net investment hedges Foreign exchange risk 215 280 10,106 Total derivatives used for hedge accounting 1,009 831 42,914 31 Dec 2024 Cash flow hedges Foreign exchange risk 2,264 70 32,235 Net investment hedges Foreign exchange risk 134 141 8,165 Total derivatives used for hedge accounting 2,398 211 40,400 The table below specifies changes in the fair value of hedging instruments arising from continuing hedging rela- tionships, irrespective of whether there has been a change in hedge designation during the year. The table also pre- sents changes in the value of hedged items used to meas- ure hedge ineffectiveness, separately showing the effec- tive and ineffective portions. Hedge ineffectiveness Foreign exchange risk EURm 2025 2024 Cash flow hedges Changes in fair value of hedging instruments -2,474 1,912 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 2,469 -1,912 Hedge ineffectiveness recognised in the income statement1, 2 -5 0 Hedging gains or losses recognised in other comprehensive income -2,469 1,912 Net investment hedges Changes in fair value of hedging instruments -192 174 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 192 -174 Hedge ineffectiveness recognised in the income statement1, 2 – – Hedging gains or losses recognised in other comprehensive income -192 174 1) Recognised in the line item “Net result from items at fair value“. 2) When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Cash flow hedge reserve Foreign exchange risk EURm 2025 2024 Balance as at 1 Jan 110 88 Valuation gains/losses -2,469 1,912 Tax on valuation gains/losses 496 -388 Transferred to the income statement 2,385 -1,884 Tax on transfers to the income statement -479 382 Other comprehensive income, net of tax -67 22 Balance as at 31 Dec 43 110 Of which relates to continuing hedges for which hedge accounting is applied 43 110 Of which relates to hedging relationships for which hedge accounting is no longer applied – – Maturity profile of the nominal amount of hedging instruments hedging foreign exchange risk EURm Payable on demand Maximum 3 months 3–12 months 1–5 years More than 5 years Total 31 Dec 2025 Instruments hedging foreign exchange risk – 14,456 13,885 12,898 1,675 42,914 Total – 14,456 13,885 12,898 1,675 42,914 31 Dec 2024 Instruments hedging foreign exchange risk – 15,588 10,953 12,520 1,339 40,400 Total – 15,588 10,953 12,520 1,339 40,400 The average forward exchange rates of instruments hedg- ing foreign exchange risk as at 31 December are presented in the table below. Average forward exchange rates of instruments hedging foreign exchange risk 31 Dec 2025 NOK SEK USD EUR 11.05 10.61 1.14 31 Dec 2024 EUR 11.05 10.69 1.10 ===== SIDA 228 ===== Nordea Annual Report 2025 227 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.7 Financial instruments pledged as collateral Accounting policies In repurchase transactions, securities lending trans- actions and derivative transactions, non-cash assets are transferred as collateral. When the counterparty receiving the collateral has the right to sell or repledge the assets, the assets are presented in this note. For more information about accounting policies, see Note G3.1 “Recognition on and derecognition from the balance sheet“, Note G3.2 “Transferred assets and obtained collateral“, Note G3.3 “Classification and measurement” and Note G3.4 “Fair value”. Financial instruments pledged as collateral EURm 31 Dec 2025 31 Dec 2024 Interest-bearing securities 3,364 1,922 Shares 1,910 511 Total 5,274 2,433 For information on transferred assets and reverse repur- chase agreements, see Note G3.2 “Transferred assets and obtained collateral”. G3.8 Loans Accounting policies Loans are financial instruments with fixed or deter- minable payments that are not readily transferable without the consent of the debtor. Loans are classi- fied and measured in accordance with the descrip- tion in Note G3.3 “Classification and measurement”. Nordea’s accounting policies covering expected credit losses follow below. Additional information on the credit risk on loans is disclosed in Note G11 “Risk and liquidity management”. Financial instruments classified as “Amortised cost” or “Fair value through other comprehensive income” are subject to impairment testing due to credit risk. This includes assets recognised on the balance sheet in “Loans to central banks”, “Loans to credit institutions”, “Loans to the public” and “Interest- bearing securities”. “Loans to the public” includes finance leases, which are also subject to impairment testing. These balance sheet line items also include assets classified as “Fair value through profit or loss”, which are not subject to impairment testing. See also Note G3.3 “Classification and measurement”. Off-balance sheet commitments, contingent lia- bilities and loan commitments are also subject to impairment testing. Recognition and presentation Amortised cost assets are recognised gross with an offsetting allowance for the expected credit losses if the loss is not regarded as final. The allowance account is netted against the loan balance on the face of the balance sheet, but the allowance account is disclosed separately in this note. Changes in the allowance account are recognised in the income statement and classified as “Net loan losses”. If the impairment loss is regarded as final, it is reported as a realised loss and the carrying amount of the loan and the related allowance for impairment loss are derecognised. An impairment loss is regarded as final when the obligor has filed for bankruptcy and the administrator has declared the financial outcome of the bankruptcy procedure, or when Nordea waives its claims either through a legally based or voluntary reconstruction, or when Nordea, for other reasons, deems it unlikely that the claim will be recovered. See also the section “Write-offs” below. Provisions for off-balance sheet exposures are classified as “Provisions” on the balance sheet, with changes in provisions classified as “Net loan losses”. Assets classified as “Fair value through other comprehensive income” are recognised at fair value on the balance sheet. Impairment losses calculated in accordance with IFRS 9 are recognised in the income statement and classified as “Net loan losses”. Any fair value adjustments are recognised in “Other comprehensive income”. Impairment testing Nordea classifies all exposures into stages on an individual basis. Stage 1 includes assets where there has been no significant increase in credit risk since initial recognition. Stage 2 includes assets where there has been a significant increase in credit risk. Stage 3 (impaired loans) includes defaulted assets. Nordea monitors whether there are indicators of exposures being credit impaired (stage 3) by identi- fying events that have a detrimental impact on the estimated future cash flows. Nordea applies the same definition of default as the Capital Requirements Regulation. The definition of default applied by Nordea was last updated in 2024 in con- nection with the implementation of new retail inter- nal ratings-based (IRB) models. More information on credit risk can be found in Note G11 “Risk and liquidity management”. Exposures without individu- ally calculated allowances are covered by the mod- el-based impairment calculation. For significant exposures where a credit event has been identified, the exposure is tested for impair- ment on an individual basis. If the exposure is con- sidered impaired, an individual provision is recog- nised. The carrying amount of the exposure is com- pared with the net present value of expected future cash flows. If the carrying amount is higher, the dif- ference is recognised as an impairment loss. The expected cash flows include the fair value of collat- eral and other credit enhancements and are dis- counted at the original effective interest rate. The estimate is based on three different forward-looking scenarios that are probability weighted to derive the net present value. For insignificant exposures that have been indi- vidually identified as credit impaired, the impairment loss is measured using the model described below but based on the fact that the exposures are already in default. Nordea uses the “low credit risk exemption” for retail exposures and non-retail exposures issued after transition to IFRS 9 on 1 January 2018. Such exposures with a 12-month probability of default (PD) below 0.3% are classified as stage 1. Nordea also applies this exception to a minor portfolio of interest-bearing securities in its insurance operations. Model-based allowance calculation For exposures not impaired on an individual basis, a statistical model is used for calculating impairment losses. The provisions are calculated as the exposure at default (EAD) times the probability of default (PD) times the loss given default (LGD). The provi- sions for exposures for which there has been no sig- nificant increase in credit risk since initial recognition are based on the 12-month expected loss (stage 1). The provisions for exposures for which there has been a significant increase in credit risk since initial recognition, but which are not credit impaired, are based on the lifetime expected losses (stage 2). This is also the case for the individuallly immaterial cred- it-impaired exposures in stage 3. Nordea uses different models to identify whether there has been a significant increase in credit risk or not. For non-retail assets held on transition to IFRS 9, the change in internal rating and scoring data is used to determine whether there has been a significant increase in credit risk or not. Internal rating/scoring information is used to assess the risk of the custom- ers and a deterioration in rating/scoring indicates an increase in the credit risk of the customer. Nordea has concluded that it is not possible to calculate the ===== SIDA 229 ===== Nordea Annual Report 2025 228 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.8 Loans, cont. lifetime PD at origination without the use of hindsight for non-retail assets already recognised on the bal- ance sheet at transition. Changes to the lifetime PD are used as the trigger for non-retail assets recog- nised after transition and for retail assets recognised both before and after transition. For assets evaluated based on lifetime PD, Nordea uses a mix of absolute and relative changes in PD as the transfer criterion. • Retail customers with a relative increase in lifetime PD above 200% are transferred to stage 2. • Non-retail customers with an initial 12-month PD below 0.5%: Exposures with a relative increase in lifetime PD above 150% and an absolute increase in 12-month PD above 20bp are transferred to stage 2. • Non-retail customers with an initial 12-month PD above or equal to 0.5%: Exposures with a relative increase in lifetime PD above 150% or an absolute increase in 12-month PD above 400bp are transferred to stage 2. For non-retail assets recognised on the balance sheet before transition to IFRS 9, the change in rating/scor- ing notches is used as the stage transfer criterion. The number of notches is calibrated to match the signifi- cant increase in credit risk based on lifetime PD. In addition, Nordea applies the following back- stops for transfers between stages: • Customers with forbearance measures and cus- tomers with payments more than thirty days past due are transferred to stage 2, unless already iden- tified as credit impaired (stage 3). Exposures with forbearance measures will stay in stage 2 for a pro- bation period of 24 months from when the meas- ures were introduced. Once transferred back to stage 1, after the probation period, the exposures are treated as any other stage 1 exposure on the assessment of significant increase in credit risk. • Exposures more than 90 days past due are normally classified as stage 3, but this classification will be rebutted if there is evidence that the customer is not in default. Such exposures are c lassified as stage 2. • Non-retail exposures with a relative change in annualised lifetime PD exceeding 200% and with at least one rating grade of deterioration are trans- ferred to stage 2. • Retail exposures classified as high risk, i.e. with a PD above 5.83%, are transferred to stage 2. • Non-retail exposures classified as high risk, i.e. with a rating grade of 2 or below, are transferred to stage 2. • Retail and Non-retail exposures with 12-month PD below 0.3% use a low credit risk exemption, which prevents movement to stage 2 from absolute or relative changes in PD. The exemption does not prevent stage movement from the other backstop triggers listed. When calculating provisions, including the staging assessment, the calculation is based on both histori- cal data and probability-weighted forward-looking information. Nordea applies three macroeconomic scenarios to address the non-linearity in expected credit losses. The different scenarios are used to adjust the relevant parameters for calculating expected losses and a probability-weighted average of the expected losses under each scenario is recog- nised as provisions. The model is based on data col- lected before the reporting date, requiring Nordea to identify events that could affect the provisions after the data is sourced to the model calculation. Management evaluates these events and adjusts the provisions if deemed necessary. Write-offs A write-off is a derecognition of a loan or receivable from the balance sheet and a final realisation of a credit loss provision. When assets are considered uncollectible, they should be written off as soon as possible, regardless of whether the legal claim remains or not. A write-off can take place before legal actions against the borrower to recover the debt have been concluded in full. Although an uncollectible asset is removed or written off from the balance sheet, the customer remains legally obligated to pay the outstanding debt. When assessing the recovera- bility of non-performing loans and determining if write-offs are required, exposures with the following characteristics are in particular focus (the list is not exhaustive): • Exposures past due more than 90 days. If, following this assessment, an exposure or part of an expo- sure is deemed as unrecoverable, it is written off. • Exposures under insolvency procedures where the collateralisation of the exposure is low. • Exposures where legal expenses are expected to absorb the proceeds from the bankruptcy proce- dure and estimated recoveries are therefore expected to be low. • A partial write-off may be warranted where there is reasonable financial evidence to demonstrate an inability of the borrower to repay the full amount, i.e. a significant level of debt which cannot be rea- sonably demonstrated to be recoverable following forbearance treatment and/or the execution of collateral. • Restructuring cases. Discount rate The discount rate used to measure impairment is the original effective interest rate for loans attached to an individual customer or, if applicable, to a group of loans. If considered appropriate, the discount rate can be based on a method that results in an impairment that is a reasonable approximation using the effective interest rate method as basis for the calculation. Restructured loans and modifications In this context a restructured loan is defined as a loan where Nordea has granted concessions to the obli- gor due to their financial difficulties and where such concessions have resulted in an impairment loss for Nordea. After restructuring, the loan is normally regarded as not impaired if it performs according to the new terms and conditions. In the event of recov- ery, the payment is reported as recovery of loan losses. Modifications of the contractual cash flows of loans to customers in financial difficulties (forbear- ance) reduce the gross carrying amount of the loan. Normally this reduction is less than the existing pro- vision and no loss is recognised in the income state- ment due to modifications. If significant, the gross amounts (loan and allowance) are reduced. Assets taken over for protection of claims In a financial reconstruction the creditor may con- cede loans to the obligor and in exchange for this concession acquires an asset pledged for the con- ceded loans, shares issued by the obligor or other assets. Assets taken over for protection of claims are reported on the same balance sheet line as similar assets already held by Nordea. For example, a prop- erty taken over, not held for Nordea’s own use, is reported together with other investment properties. At initial recognition, all assets taken over for pro- tection of claims are recognised at fair value and the possible difference between the carrying amount of the loan and the fair value of the assets taken over is recognised in “Net loan losses”. The fair value of the asset on the date of recognition becomes its cost or amortised cost value, as applicable. In subsequent periods, assets taken over for protection of claims are valued in accordance with the valuation principles for the appropriate type of asset. Investment proper- ties are then measured at fair value. Financial assets that are foreclosed are generally classified in the cat- egory “Fair value through profit or loss” and meas- ured at fair value. Changes in fair value are recog- nised in the income statement under “Net result from items at fair value”. Any change in value, after the initial recognition of the asset taken over, is presented in the income statement in line with the Group’s presentation poli- cies for the appropriate asset. The item “Net loan losses” in the income statement is, after the initial ===== SIDA 230 ===== Nordea Annual Report 2025 229 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.8 Loans, cont. recognition of the asset taken over, consequently not affected by any subsequent remeasurement of the asset. Critical judgements and estimation uncertainty Management is required to exercise critical judge- ments and estimates when calculating loan impair- ment allowances. Nordea’s total lending at amortised cost before impairment allowances was EUR 301,880m (EUR 282,858m) at the end of the year. When calculating allowances for individually sig- nificant impaired loans, judgement is exercised to estimate the amount and timing of the expected cash flows to be received from the customers under different scenarios, including the valuation of any collateral received. Judgement is also applied when assigning the likelihood of the different scenarios occurring. Judgement is exercised to assess when an expo- sure has experienced a significant increase in credit risk. If this is the case, the provision should reflect the lifetime expected losses as opposed to a 12-month expected loss amount for exposures that have not increased significantly in credit risk. Judgement is also exercised in the choice of modelling approaches covering other parameters used when calculating the expected losses, such as the expected lifetime used in stage 2, as well as in the assessment of whether the parameters based on historical experi- ence are relevant for estimating future losses. The statistical models used to calculate provisions are based on macroeconomic scenarios, which requires management to exercise judgement when identifying such scenarios and when assigning the likelihood of the different scenarios occurring. Judgement is also exercised in the assessment of to what extent the parameters for the different scenar- ios, based on historical experience, are relevant for estimating future losses. The model is based on data collected before the reporting date, requiring Nordea to identify events that could affect the provisions after the data is sourced to the model calculation. Nordea adjusts its collectively calculated provisions if the historical data does not adequately reflect man- agement’s view regarding expected credit losses. Adjustments to the model-based expected credit losses are made to reflect the estimation uncertainty. For more information on adjustments to credit losses, see Note G11. Loans and impairment EURm 31 Dec 2025 31 Dec 2024 Loans measured at fair value 92,350 83,360 Loans measured at amortised cost, not credit impaired (stages 1 and 2) 298,745 279,913 Credit impaired loans (stage 3) 3,135 2,945 - of which servicing 1,228 1,133 - of which non-servicing 1,907 1,812 Loans before allowances 394,230 366,218 - of which central banks and credit institutions 10,990 7,035 Allowances for loans that are credit impaired (stage 3) -977 -1,069 - of which servicing -402 -439 - of which non-servicing -575 -630 Allowances for loans that are not credit impaired (stages 1 and 2) -397 -536 Allowances -1,374 -1,605 - of which central banks and credit institutions -5 -10 Loans, carrying amount 392,856 364,613 Nordea has granted EUR 177bn (EUR 172bn) in mortgage credits. No intermediary credits or public sector credits have been granted. ===== SIDA 231 ===== Nordea Annual Report 2025 230 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.9 Interest-bearing securities Accounting policies Instruments that are readily transferable and where the holder of the instrument receives the nominal amount at maturity are normally reported in the bal- ance sheet line item “Interest-bearing securities”. Instruments that cannot be transferred or sold with- out the consent of the holder of the instrument are normally reported as loans, see Note G3.8 “Loans”. In repurchase transactions and in securities lend- ing transactions, non-cash assets are transferred as collateral. When the counterparty receiving the col- lateral has the right to sell or repledge the assets, the assets are disclosed in Note G3.7 “Financial instruments pledged as collateral”. Investments in interest-bearing securities on behalf of customers (see Note G3.11 “Assets and deposits in pooled schemes and unit-linked investment contracts”) are not presented in “Interest-bearing securities”. For more information about accounting policies, see Note G3.1 “Recognition on and derecognition from the balance sheet“, Note G3.2 “Transferred assets and obtained collateral“, Note G3.3 “Classification and measurement” and Note G3.4 “Fair value”. Interest-bearing securities EURm 31 Dec 2025 31 Dec 2024 State, municipalities and other public bodies 20,949 19,926 Mortgage institutions 23,733 20,311 Other credit institutions 25,340 24,499 Corporates 7,063 5,823 Other 2,787 2,905 Total 79,872 73,464 Provisions for credit risks amounted to EUR 2m (EUR 2m). G3.10 Shares Accounting policies The balance sheet line item “Shares” includes equity instruments, i.e. contracts that evidence a residual interest in the assets of an entity after deducting all of its liabilities, including holdings in different funds such as a unit in an investment fund or private equity fund. However, investments in associated undertakings and joint ventures (see Note G9.3 “Investments in associated undertakings and joint ventures”), investments in group undertakings (see Note G9.1 “Consolidated entities”) and investments in shares and fund units on behalf of customers (see Note G3.11 “Assets and deposits in pooled schemes and unit-linked investment contracts”) are not included in “Shares”. In repurchase transactions and in securities lend- ing transactions, non-cash assets are transferred as collateral. When the counterparty receiving the col- lateral has the right to sell or repledge the assets, the assets are disclosed in Note G3.7 “Financial instruments pledged as collateral”. For more information about accounting policies, see Note G3.1 “Recognition on and derecognition from the balance sheet“, Note G3.2 “Transferred assets and obtained collateral”, Note G3.3 “Classification and measurement” and Note G3.4 “Fair value”. Shares EURm 31 Dec 2025 31 Dec 2024 Shares 12,320 12,884 Fund units, equity related 20,763 16,493 Fund units, interest related 6,504 6,011 Total 39,587 35,388 G3.11 Assets and deposits in pooled schemes and unit-linked investment contracts Accounting policies Assets and deposits in pooled schemes and unit- linked investment contracts are contracts with cus- tomers and policyholders where most or all of the risk of the assets is borne by the customers or the policyholders. Unit-linked contracts with investment guarantees or contracts which transfer significant insurance risk are classified as insurance contracts. The deposits received from customers are invested in different types of financial assets on behalf of the customers and policyholders. Since the assets and liabilities legally belong to Nordea, these assets and liabilities are recognised on Nordea’s balance sheet. The assets and deposits under these contracts are measured at fair value as described in Note G3.4 “Fair value”. For more information on the difference between insurance contracts and investment con- tracts, see Note G4 “Insurance contract liabilities”. Assets and deposits in pooled schemes and unit-linked investment contracts EURm 31 Dec 2025 31 Dec 2024 Assets Interest-bearing securities1 2,082 2,043 Shares 67,388 57,895 Investment properties 876 751 Other assets 331 190 Total 70,677 60,879 Liabilities Pooled schemes 4,007 4,317 Unit-linked investment contracts 67,604 57,396 Total 71,611 61,713 1) Including interest related fund units. Nordea Life & Pension and Nordea Danmark, filial af Nordea Bank Abp, Finland, have assets and liabilities rec- ognised on their balance sheets for which customers bear most or all of the risk. For information about the fair value of investment prop- erties in pooled schemes and unit-linked investment con- tracts, see Note G5.3 “Investment properties”. ===== SIDA 232 ===== Nordea Annual Report 2025 231 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.12 Derivatives Accounting policies A derivative is a financial instrument or other con- tract with all three of the following characteristics: • Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (so-called “underlying”). • It requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors. • It is settled at a future date. Contracts that fulfil the above requirements of being derivatives but where Nordea is to take delivery of a non-financial item for own use are not derivatives. All derivatives are recognised on the balance sheet and measured at fair value. Derivatives with a positive fair value, including any accrued interest, are recognised as assets in the line item “Derivatives” on the asset side. Derivatives with a negative fair value, including any accrued interest, are recognised as liabilities in the line item “Derivatives” on the liability side. Nordea incorporates credit valuation adjustments (CVAs) and debit valuation adjustments (DVAs) into derivative valuations as well as other valuation adjustments (XVAs). CVAs and DVAs reflect the impact on fair value from the counterparty’s credit risk and Nordea’s own credit quality, respectively. For more information about the calculation and other XVAs, see Note G3.4 “Fair value”. Realised and unrealised gains and losses from derivatives are recognised in the income statement under “Net result from items at fair value”. For more information about accounting policies and critical judgements, see Note G3.4 “Fair value”. Nordea enters into derivatives for trading and risk man- agement purposes. Nordea may take positions with the expectation of profiting from favourable movements in prices, rates or indices. The trading portfolio is treated as trading risk for risk management purposes. Derivatives held for risk management purposes include hedges that meet the hedge accounting requirements and hedges that are economic hedges but do not meet the hedge account- ing requirements. The table below shows the fair value of derivative financial instruments not used for hedge accounting together with their nominal amounts. The nominal amounts indicate the volume of transactions outstanding at year end and are neither indicative of market risk nor credit risk. For more information about derivatives used for hedge accounting, see Note G3.6 “Hedge accounting”. The fair value and nominal amount of derivatives in this note represent derivatives before offsetting between assets and liabilities on the balance sheet (gross amount) as the gross amount better reflects Nordea’s exposure. Derivatives 31 Dec 2025 31 Dec 2024 Fair value Nominal amount Fair value Nominal amountEURm Positive Negative Positive Negative Derivatives not used for hedge accounting 160,946 163,895 11,480,563 134,685 136,630 7,874,424 Derivatives used for hedge accounting 2,740 3,167 235,339 4,561 3,199 253,248 Total gross derivatives 163,686 167,062 11,715,902 139,246 139,829 8,127,672 Derivatives offset on the balance sheet -146,053 -148,984 -114,035 -114,795 Total derivatives 17,633 18,078 11,715,902 25,211 25,034 8,127,672 Derivatives not used for hedge accounting 31 Dec 2025 31 Dec 2024 Fair value Nominal amount Fair value Nominal amountEURm Positive Negative Positive Negative Interest rate derivatives Interest rate swaps 147,985 150,531 8,517,590 118,410 118,799 5,309,744 FRAs 428 444 1,551,754 919 938 1,327,480 Futures and forwards 6 5 131,154 5 6 120,899 Options 1,692 1,600 178,558 2,450 2,401 228,060 Total 150,111 152,580 10,379,056 121,784 122,144 6,986,183 Equity derivatives Equity swaps 265 467 29,705 442 270 31,678 Futures and forwards 2 9 421 3 1 901 Options 122 411 4,085 112 397 4,214 Other 0 21 – – – – Total 389 908 34,211 557 668 36,793 Foreign exchange derivatives Currency and interest rate swaps 2,884 2,793 253,200 5,436 7,395 267,148 Currency forwards 2,188 2,281 435,666 3,808 3,409 387,345 Options 80 1 3,309 114 0 2,250 Total 5,152 5,075 692,175 9,358 10,804 656,743 Other derivatives Credit default swaps (CDS) 5,294 5,306 374,055 2,984 2,988 194,530 Commodity derivatives 0 26 1,040 0 9 136 Other derivatives 0 0 26 2 17 39 Total 5,294 5,332 375,121 2,986 3,014 194,705 Total derivatives not used for hedge accounting 160,946 163,895 11,480,563 134,685 136,630 7,874,424 ===== SIDA 233 ===== Nordea Annual Report 2025 232 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G3.13 Deposits by credit institutions Accounting policies Deposits by credit institutions include liabilities towards central banks, banks, credit market compa- nies, credit companies, finance companies and mort- gage institutions. Deposits are classified in accordance with Note G3.3 “Classification and measurement”. For additional accounting policies, see Note G3.1 “Recognition on and derecognition from the balance sheet”, Note G3.2 “Transferred assets and obtained collateral” and Note G3.4 “Fair value”. Deposits by credit institutions EURm 31 Dec 2025 31 Dec 2024 Central banks 7,460 5,757 Banks 24,836 21,062 Other credit institutions 1,835 1,956 Total 34,131 28,775 G3.14 Deposits and borrowings from the public Accounting policies Deposits from the public are defined as funds in deposit accounts covered by the government deposit guarantee but also include amounts in excess of the individual amount limits. Individual pension savings are also included, but deposits in pooled schemes are presented as “Assets in pooled schemes and unit- linked investment contracts“, see Note G3.11 “Assets and deposits in pooled schemes and unit-linked investment contracts”. Borrowings are other liabilities to the public that are not in the form of debt securi- ties. Deposits and borrowings are classified into the different categories of financial instruments defined in Note G3.3 “Classification and measurement”. For additional accounting policies, see Note G3.1 “Recognition on and derecognition from the balance sheet”, Note G3.2 “Transferred assets and obtained collateral” and Note G3.4 “Fair value”. Deposits and borrowings from the public EURm 31 Dec 2025 31 Dec 2024 Deposits1 225,808 223,243 Repurchase agreements 17,066 9,192 Total 242,874 232,435 1) Deposits related to individual pension savings are also included. G3.15 Debt securities in issue Accounting policies Debt securities are instruments issued by Nordea that are readily transferable without the consent of Nordea. Debt securities are classified into the differ- ent categories in accordance with Note G3.3 “Classification and measurement”. For hedged items in fair value hedges at micro level, the hedged risk is measured at fair value and presented in the line item “Fair value changes in micro hedges of interest rate risk” in the table below (for more information, see Note G3.6 “Hedge accounting”). For additional accounting policies, see Note G3.1 “Recognition on and derecognition from the balance sheet” and Note G3.4 “Fair value”. Debt securities in issue EURm 31 Dec 2025 31 Dec 2024 Certificates of deposit 38,220 29,713 Commercial paper 10,591 9,980 Covered bonds 119,299 121,380 Senior non-preferred bonds 14,689 14,703 Senior unsecured bonds 13,903 12,997 Other 24 25 Fair value changes in micro hedges of interest rate risk -450 -662 Total 196,276 188,136 G3.16 Other liabilities Accounting policies Other liabilities are liabilities that do not qualify for any of the other line items covering liabilities. For additional accounting policies, see Note G3.1 “Recognition on and derecognition from the balance sheet”, Note G3.3 ”Classification and measurement” and Note G3.4 “Fair value”. Other liabilities EURm Financial liabilities Non- financial liabilities Total 31 Dec 2025 Liabilities on securities settlement proceeds 1,069 – 1,069 Sold, not held, securities 3,964 – 3,964 Accounts payable 181 – 181 Cash/margin payables 3,535 – 3,535 Lease liabilities 1,045 – 1,045 Other 2,140 2,472 4,612 Total 11,934 2,472 14,406 31 Dec 2024 Liabilities on securities settlement proceeds 957 – 957 Sold, not held, securities 2,980 – 2,980 Accounts payable 215 – 215 Cash/margin payables 4,222 – 4,222 Lease liabilities 1,103 – 1,103 Other 2,491 2,228 4,719 Total 11,968 2,228 14,196 G3.17 Subordinated liabilities Accounting policies Subordinated liabilities are financial liabilities for which it has been contractually agreed that they are not to be repaid in the event of liquidation or bank- ruptcy until all obligations towards other creditors have been fulfilled. For additional accounting policies, see Note G3.1 “Recognition on and derecognition from the balance sheet” and Note G3.3 “Classification and measurement”. For hedged items in fair value hedges at micro level, the hedged risk is measured at fair value and presented in the line item “Fair value changes in micro hedges of interest rate risk” in the table below (for more information, see Note G3.6 “Hedge accounting”). For more information on the critical judgement needed to assess whether a subordi- nated loan is classified as a liability or equity, see Note G3.3 “Classification and measurement”. Subordinated liabilities EURm 31 Dec 2025 31 Dec 2024 Additional Tier 1 4,367 3,436 Tier 2 4,613 4,302 Fair value changes in micro hedges of interest rate risk -170 -328 Total 8,810 7,410 For more information, see Note P3.14 “Subordinated liabilities”. ===== SIDA 234 ===== Nordea Annual Report 2025 233 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insurance contract liabilities Accounting policies IFRS 17 is applicable to insurance contracts issued, reinsurance contracts held and investment contracts with discretionary participation features (DPF) issued. An insurance contract is defined as “a contract under which one party (the insurer) accepts significant insurance risks from another party (the policyholder) by agreeing to compensate the policyholder if a spec- ified uncertain future event (the insured event) adversely affects the policyholder”. DPF contracts give the policyholder the contractual right to receive, as a supplement to an amount not subject to the dis- cretion of the issuer, significant additional amounts where the timing or amount is contractually at the discretion of Nordea and the investment returns are linked to a specified pool of assets held by Nordea. Insurance contracts, reinsurance contracts and invest- ment contracts with DPF are below referred to as “insurance contracts”. For Nordea, issued contracts accounted for under IFRS 17 include: • Life insurance. • Pension plans with or without guaranteed returns, but with additional bonus. • Combined insurance pensions plans with signifi- cant additional death benefits. • Health and personal accident insurance. Unit of account For most contracts, the legal contract is the basis for accounting. Unit-linked contracts and Traditional contracts in Sweden are considered to be two sepa- rate contracts, a saving contract and a risk contract, for accounting purposes. The unit-linked saving con- tracts are accounted for under IFRS 9 and IFRS 15 and the other contracts are accounted for under IFRS 17. The death cover and other risk covers of the Finnish contracts are regarded as separate account- ing contracts, accounted for under IFRS 17. Recognition and derecognition Insurance contracts are recognised from the earliest of: • the beginning of the coverage period of the group of contracts, • the date when the first payment from a policy- holder in the group becomes due, and • for a group of onerous contracts, when the group becomes onerous. Investment contracts with DPF are recognised from the date the entity becomes party to the contract. Insurance contracts are derecognised when they are extinguished, which means when the obligation spec- ified in the insurance contract expires or is discharged or cancelled. Insurance contracts are also derecog- nised when substantially modified, in which case a new contract is recognised with new terms. General measurement model The general measurement model (GMM) is used for an individual risk product in Norway (endowment con- tracts) and different risk insurance products in Finland. Insurance contracts are aggregated into portfolios of insurance contracts with similar risks and managed together. For each portfolio, contracts issued in one calendar year are further grouped into annual cohorts. Each of these sets of contracts is then broken down into groups of onerous and profitable contracts. At ini- tial recognition, fulfilment cash flows are estimated for all groups of insurance contracts. For groups of con- tracts with net positive cash flows (profitable con- tracts), the contractual service margin (CSM) is an equal and opposite value on initial recognition to the expected net positive cash flows and is recognised as an insurance liability. This is because the entire value of the contracts relates to services to be provided in the future and, therefore, profit to be earned in the future. For groups of contracts with negative fulfil- ment cash flows (onerous contracts), the negative amount is considered the loss component of the liabil- ity for remaining coverage and is recognised as a loss in the income statement. The fulfilment cash flows consist of the following components: • Unbiased and Nordea-specific estimates of expected cash flows that will arise as the entity fulfils the contracts. The estimates are updated at each reporting date. • An adjustment to reflect the time value of money, in other words the effect of discounting. This also includes the financial risks to the future cash flows, to the extent that the financial risks are not reflected in the estimates of future cash flows. • An explicit risk adjustment for non-financial risk to reflect the compensation that the entity requires for bearing the uncertainty about the amount and timing of cash flows that arise from non-financial risk. In subsequent periods, the fulfilment cash flows are reassessed and remeasured at each reporting date, using current assumptions. The CSM is released to the income statement as services are provided. For investment contracts with DPF, the release is based on when investment services are provided and for the remaining contracts it is based on when insur- ance contract services are provided. Variable fee approach The variable fee approach (VFA) is used for all con- tracts with direct participation features. These con- tracts are at inception accounted for in the same way as under the general measurement model. Nordea provides investment- and insurance- r elated services and is compensated for the services by a fee that is determined with reference to the underly- ing assets. The CSM is adjusted after initial recogni- tion, where changes related to Nordea’s share of the fair value of the underlying assets also adjust the CSM liability. The adjusted CSM is the basis for the future release to the income statement. Premium allocation approach The premium allocation approach (PAA) is used for short-term contracts (with a coverage period of less than one year), normally related to health and disa- bility risks, although some such contracts in Finland are measured under the general measurement model. The liability consists of two parts: • Liability for remaining coverage. • Liability for incurred claims. The liability for remaining coverage is measured based on unearned premiums received and released to the income statement based on the amount of expected premium receipts allocated to the period on the basis of passage of time. The liability for incurred claims is measured in the same way as under the general measurement model. Nordea has chosen to recognise the acquisition cash flows as expenses when they occur under the PAA model. Under this model when measuring the liability for incurred claims, Nordea adjusts future cash flows for the time value of money if those cash flows are expected to be paid or received more than one year from the date the claims are incurred. Insurance acquisition cash flows Insurance acquisition cash flows (IACF), relating to insurance contracts measured under the GMM and VFA models, are allocated to groups of insurance contracts at initial recognition and amortised as ser- vices are provided. IACF allocated to groups with a short contract boundary measured under the GMM and VFA recognise an asset for IACF for each related group of insurance contracts before the related group of insurance contracts is recognised. The asset for IACF is derecognised when the IACF are included in the cash flows and measurement of the related group of insurance contracts. There is an assessment of the recoverability of the asset for IACF if facts and cir- cumstances indicate that the asset may be impaired. If an impairment loss is identified, the carrying amount of the asset is adjusted and an impairment loss in profit or loss is recognized. The PAA is used for insurance contracts with a coverage period of one ===== SIDA 235 ===== Nordea Annual Report 2025 234 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insur ance contract liabilities, cont. year or less. Under the PAA measurement model, the IACF are recognised as an expense when incurred. Critical judgements and estimation uncertainty A valuation of insurance liabilities includes estima- tions and assumptions, both financial and actuarial, that affect the present value of future cash flows. For most of the products risk-neutral stochastic modelling techniques are used, while for some prod- ucts deterministic models are used. The methods and processes used were stable during the year. The main assumptions used when calculating the insurance liabilities are explained below. In scope of IFRS 17 Nordea applies IFRS 17 to insurance contracts issued, reinsurance contracts held and investment contracts with discretionary participation features (DPF) issued. Insurance contracts are, as stated in the account- ing policies above, contracts under which Nordea accepts significant insurance risk from the policy- holder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder. If the contract does not transfer any significant insur- ance risk but contains DPF, it is accounted for under IFRS 17 since Nordea also issues insurance contracts. Thus there is a necessity to determine if an investment contract is to be classified as comprising DPF. The evaluation of the existence of significant insurance risk is made on a contract-by-contract basis and given that the contract exposes Nordea to insurance risk, further investigation is performed to assess if significant insurance risk exists. A contract transfers significant insurance risk if there exists any scenario of commercial substance at initial recognition in which the policyholder receives additional amounts (5%-10%) that exceed the investment component. The investment component is defined as the amount that an insurance contract requires Nordea to repay to a policyholder even if an insured event does not occur. An investment contract with DPF is defined as a financial instrument that provides a particular inves- tor with the contractual right to receive, as a supple- ment to an amount not subject to the discretion of Nordea, additional amounts: • that are expected to be a significant portion (>10%) of the total contractual benefits, • the timing or amount of which are contractually at the discretion of Nordea (profit sharing, mutualis- ation elements exists and/or Board decided return allocation), and • that are contractually based on: - the returns on a specified pool of contracts or a specified type of contract, - realised and/or unrealised investment returns on a specified pool of assets held by Nordea, or - the profit or loss of Nordea. Release of CSM An amount of CSM is recognised as profit or loss in each period and the amount reflects the service pro- vided. The release-pattern of the CSM is determined by first identifying coverage units for the group of contracts, representing the quantity of benefits under the expected coverage duration, and secondly release coverage units for each period reflecting the service provided. For investment contracts with DPF, the release is based on when investment services are provided and for the remaining contracts it is based on when insurance contract services are provided. Expenses Operating expenses are part of future cash flows and correspond to the costs of maintaining the cur- rent in-force business, adjusted for inflation. Increased expected expenses reduce future expected profits. Expenses are allocated to groups of contracts using well-defined methodologies that are consistent over time. Surrender rates Partial and full surrender and transfers of capital affect the insurance liabilities and profits. Surrender assumptions are derived using trends in historical data and vary by e.g. product type and type of con- tract. Higher surrender rates than assumed will reduce profits if the underlying contracts are profitable. Mortality, longevity and morbidity Standard industry tables are used when setting the assumptions for mortality, longevity and morbidity. The assumptions vary with e.g. the policyholder’s gender and age, product type and class. Deviations from the assumed rates will affect the expected future profits. Risk adjustment for non-financial risk The risk adjustment aims to capture the compensa- tion required by Nordea for bearing the uncertainty around the amount and timing of the cash flows that arises from non-financial risk. Nordea determines the risk adjustment using a single equivalent scenario stress approach, which has a confidence level of 79% (78% in 2024). The stress parameters are updated on a yearly basis. The entire change in risk adjustment is fully presented in the line item “Net insurance reve- nue” and relates to both current and future services. Discount rates Methods and assumptions used to derive the dis- count rates are applied consistently within Nordea Life & Pension. Further, for each jurisdiction, the dis- count rate is consistently applied for all products. The discount rate is determined using a bot- tom-up approach as the sum of a risk-free compo- nent and an illiquidity component. The risk-free component ensures that the discount rate reflects the time value of money and is consistent with observable market prices. The illiquidity component reflects the characteristics of the liabilities. The discount rates used to calculate the present value of future cash flows are presented in the table below. 1 year 3 years 5 years 10 years 20 years 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 EUR 2.1% 2.3% 2.5% 1.9% 2.8% 2.0% 3.4% 2.2% 3.4% 2.0% SEK 2.0% 2.3% 2.3% 2.3% 2.5% 2.4% 2.9% 2.6% 3.1% 2.9% NOK 4.2% 4.7% 4.2% 4.6% 4.2% 4.4% 4.2% 4.3% 4.1% 4.2% DKK 2.2% 2.4% 2.4% 2.3% 2.6% 2.3% 3.0% 2.4% 3.4% 2.4% ===== SIDA 236 ===== Nordea Annual Report 2025 235 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insurance contract liabilities, cont. Insurance contract liabilities EURm 31 Dec 2025 31 Dec 2024 General measurement model (GMM) 167 147 Variable fee approach (VFA) 32,578 29,854 Subtotal 32,745 30,001 Premium allocation approach (PAA) 455 434 Asset for insurance acquisition cash flows -103 -84 Total insurance contract liabilities 33,097 30,351 Life and disability insurance is mainly measured under the measurement model GMM. Insurance contracts with direct participation features are measured under the measurement model VFA. For some life and disability insurance contracts, with a coverage period of one year or less, the PAA model is used instead. More information regarding the measurement models can be found in the accounting policies. See also Note G2.4 “Net insurance result”. Analysis by remaining coverage and incurred claims – contracts measured under GMM and VFA 31 Dec 2025 31 Dec 2024 Liabilities for remaining coverage Liabilities for incurred claims Liabilities for remaining coverage Liabilities for incurred claimsEURm Excluding loss component Loss component Total Excluding loss component Loss component Total Opening balance 29,761 23 217 30,001 26,971 16 215 27,202 Changes through the income statement Insurance revenue Contracts under the modified retrospective approach -35 – – -35 -32 – – -32 Contracts under the fair value approach -360 – – -360 -341 – – -341 Other contracts -127 – – -127 -98 – – -98 Insurance revenue -522 – – -522 -471 – – -471 Insurance service expenses Incurred claims and other expenses – -21 252 231 0 -12 223 211 Changes to liabilities for incurred claims – – 2 2 – – 5 5 Amortisation of insurance acquisition cash flows 14 – – 14 13 – – 13 Losses and reversal of losses on onerous contracts – 24 – 24 – 20 – 20 Insurance service expenses 14 3 254 271 13 8 228 249 Net insurance revenue -508 3 254 -251 -458 8 228 -222 Insurance finance income or expenses 2,311 – -2 2,309 2,561 – 3 2,564 Total changes through the income statement 1,803 3 252 2,058 2,103 8 231 2,342 Investment components -2,631 – 2,631 0 -2,229 – 2,229 0 Cash flows Premiums received 3,417 – – 3,417 3,276 – – 3,276 Claims and other insurance service expenses paid, including investment components – – -2,773 -2,773 – – -2,459 -2,459 Insurance acquisition cash flows -24 – – -24 -24 – – -24 Total cash flows 3,393 – -2,773 620 3,252 – -2,459 793 Other movements 27 – -123 -96 – – – – Translation differences 162 – – 162 -336 -1 1 -336 Closing balance 32,515 26 204 32,745 29,761 23 217 30,001 ===== SIDA 237 ===== Nordea Annual Report 2025 236 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insurance contract liabilities, cont. Analysis by measurement component – contracts measured under GMM and VFA 31 Dec 2025 31 Dec 2024 Contractual service margin (CSM) Contractual service margin (CSM) EURm Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective approach Contracts under fair value approach Other contracts Subtotal Total Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective approach Contracts under fair value approach Other contracts Subtotal Total Opening balance 28,059 225 167 1,398 152 1,717 30,001 25,443 187 168 1,300 104 1,572 27,202 Changes through the income statement Changes that relate to future services Changes in estimates that adjust CSM -103 2 22 63 16 101 0 -415 46 17 314 38 369 0 Changes in estimates that result in losses on groups of onerous contracts and reversals of such losses 18 3 – – – – 21 17 1 – – – – 18 Effects of contracts initially recognised during the year -72 17 7 – 51 58 3 -77 17 5 – 57 62 2 Changes that relate to current services CSM recognised for services provided – – -26 -196 -57 -279 -279 – – -22 -167 -50 -239 -239 Risk adjustment recognised for risk expired – -27 – – – – -27 – -26 – – – – -26 Experience adjustments 30 – – – – – 30 19 -1 – – – – 18 Changes that relate to past services Adjustment to liabilities for incurred claims 1 0 – – – – 1 4 1 – – – – 5 Net insurance revenue -126 -5 3 -133 10 -120 -251 -452 38 0 147 45 192 -222 Insurance finance income or expenses 2,307 – – – 2 2 2,309 2,563 – 0 0 1 1 2,564 Total changes through the income statement 2,181 -5 3 -133 12 -118 2,058 2,111 38 0 147 46 193 2,342 Cash flows Premiums received 3,417 – – – – – 3,417 3,276 – – – – – 3,276 Claims and other insurance service expenses paid, including investment components -2,773 – – – – – -2,773 -2,459 – – – – – -2,459 Insurance acquisition cash flows -24 – – – – – -24 -24 – – – – – -24 Total cash flows 620 – – – – – 620 793 – – – – – 793 Other movements -96 – – – – – -96 14 4 – -21 3 -18 0 Translation differences 158 1 – 2 1 3 162 -302 -4 -1 -28 -1 -30 -336 Closing balance 30,922 221 170 1,267 165 1,602 32,745 28,059 225 167 1,398 152 1,717 30,001 ===== SIDA 238 ===== Nordea Annual Report 2025 237 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insurance contract liabilities, cont. Analysis by remaining coverage and incurred claims – contracts measured under PAA 31 Dec 2025 31 Dec 2024 Liabilities for remaining coverage Liabilities for incurred claims Liabilities for remaining coverage Liabilities for incurred claims EURm Excluding loss component Loss component Estimates of present value of future cash flows Risk adjustment for non-financial risk Total Excluding loss component Loss component Estimates of present value of future cash flows Risk adjustment for non-financial risk Total Opening balance 21 4 404 5 434 25 8 402 2 437 Changes through the income statement Insurance revenue -186 – – – -186 -181 – – – -181 Insurance service expenses – 9 174 2 185 0 -7 157 0 150 Net insurance revenue -186 9 174 2 -1 -181 -7 157 0 -31 Insurance finance income or expenses – -3 -6 – -9 – 1 9 – 10 Total changes through the income statement -186 6 168 2 -10 -181 -6 166 0 -21 Cash flows Premiums received 188 – – – 188 177 – – – 177 Claims and other insurance service expenses paid – – -158 – -158 – – -157 – -157 Total cash flows 188 – -158 – 30 177 – -157 – 20 Other movements – – – – – – 2 -5 3 0 Translation differences 0 0 1 0 1 0 0 -2 0 -2 Closing balance 23 10 415 7 455 21 4 404 5 434 Insurance contracts issued during the period – measured under GMM and VFA 2025 2024 EURm Non-onerous contracts issued Onerous contracts issued Total Non-onerous contracts issued Onerous contracts issued Total Claims and other insurance service expenses paid including investment components 1,623 32 1,655 1,478 26 1,504 Insurance acquisition cash flows 8 2 10 5 1 6 Estimates of the present value of future cash outflows 1,631 34 1,665 1,483 27 1,510 Estimates of the present value of future cash inflows -1,704 -33 -1,737 -1,561 -26 -1,587 Risk adjustment for non-financial risk 15 2 17 16 1 17 Contractual service margin (CSM) 58 0 58 62 0 62 Increase in insurance contract liabilities from contracts recognised in the period 0 3 3 0 2 2 ===== SIDA 239 ===== Nordea Annual Report 2025 238 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insurance contract liabilities, cont. The following table sets out when the Group expects to recognise the remaning CSM in profit or loss after the reporting date for contracts measured under the GMM and the VFA. Remaining contractual service margin (CSM) from insurance contracts Insurance contracts EURm 1 year or less 1–2 years 2–3 years 3–4 years 4–5 years 5–10 years More than 10 years Total 31 Dec 2025 Traditional insurance 78 71 66 62 54 225 366 922 Unit-linked insurance 71 55 49 43 38 133 143 532 Life and disability insurance 31 10 9 8 8 30 52 148 Total 180 136 124 113 100 388 561 1,602 31 Dec 2024 Traditional insurance 69 63 59 55 49 214 387 896 Unit-linked insurance 80 67 60 53 45 166 213 684 Life and disability insurance 30 9 8 7 7 28 48 137 Total 179 139 127 115 101 408 648 1,717 Expected derecognition of the assets for insurance acquisition cash flows 31 Dec 2025 31 Dec 2024 EURm Unit-linked insurance Life and disability insurance Total Unit-linked insurance Life and disability insurance Total 1 year or less 10 – 10 8 – 8 1–2 years 14 7 21 10 3 13 2–3 years 13 4 17 10 3 13 3–4 years 11 1 12 9 3 12 4–5 years 11 1 12 9 2 11 5–10 years 29 0 29 26 1 27 Total 88 13 101 72 12 84 Asset for insurance acquisition cash flows EURm 31 Dec 2025 31 Dec 2024 Opening balance 84 71 Amounts incurred during the year 42 37 Amounts derecognised and included in the measurement of insurance contracts -19 -20 Impairment losses -4 -3 Translation difference 0 -1 Closing balance 103 84 Fair value of underlying assets backing insurance contract liabilities measured under the VFA model EURm 31 Dec 2025 31 Dec 2024 Interest-bearing securities 5,809 6,132 Shares 23,592 20,623 Investment properties 2,203 2,121 Other 764 682 Total 32,368 29,558 The return on assets backing insurance liabilities is disclosed in Note G2.4 ”Net insurance result”. Nature and extent of risk that arise from contracts within the scope of IFRS 17 Nordea is exposed to a variety of risks through insurance activities. These include market, default, liquidity, opera- tional, business, strategic, regulatory, ESG and underwrit- ing risks. Market and underwriting risks being the most relevant from a capital and profit perspective. More infor- mation on these risks, reinsurance and the main sensitivi- ties follows below. Operational risks are described in Note G11 “Risk and liquidity management”, section 5. In addition to compliance with IFRS 17, adherence to Solvency II is crucial for regulatory compliance and financial stability. More details on Solvency II can be found in the Solvency and Financial Condition report, which is available on nordea.com. Market risk Measurement and analysis of market risk Market risk arises mainly due to the mismatch between assets and liabilities and the sensitivity of the values of these assets and liabilities to changes in the level or in the volatility of market prices or rates. Market risk mainly orig- inates from investments in products with embedded guarantees. Nordea carries the risk of fulfilling these guarantees to policyholders. Market risks are measured via exposure measurement on investment assets, forward-looking bal- ance sheet projections and stress and sensitivity analysis. The results prove that Nordea is resilient to the stresses performed. Market risks are monitored against the risk appetite and risk limits. Equity risk Nordea is exposed to decreases in equity prices impacting financial guarantees in traditional insurance products. Credit spread risk Nordea is exposed to movements in credit spreads via the credit portfolios within the traditional insurance products. The widening of credit spreads reduces market values and thus the expectations of future profits. The following table shows the exposure to different credit ratings and how it has changed since last year. Fixed income exposures, including fixed income funds EURm 31 Dec 2025 31 Dec 2024 AAA 5,167 5,590 AA 1,605 1,152 A 1,322 1,393 BBB 1,427 1,179 BB and below 1,164 614 Not rated 1,471 1,847 Total 12,156 11,775 Market concentration risk Nordea is exposed to the concentration of market risks by e.g. counterparty, guarantee levels, region and industry. ===== SIDA 240 ===== Nordea Annual Report 2025 239 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insurance contract liabilities, cont. Concentration risk is both addressed in each investment mandate and on an aggregated level. Nordea manages concentration risk by setting upper limits for the size of indi- vidual investments and for aggregate investments by cate- gory. Concentration risks are also addressed on an aggre- gated level and managing these risks is an integrated part of the investment strategy. Nordea reduces concentration risk on an ongoing basis in the revision and adjustment of asset portfolios. Due to the diversification across the portfolios in the local entities Nordea has no significant unmanaged concentration of market risk at Nordea Life & Pension Group level. Guarantee levels, estimates of present value of future cash flows EURm 31 Dec 2025 31 Dec 2024 0% 370 378 0–2% 4,665 4,137 2–3% 3,132 2,933 3–4% 1,924 2,143 Over 4% 1,242 1,349 Total 11,333 10,940 Interest rate risk Nordea is exposed to movements in interest rates, mainly through the duration mismatch between assets and liabili- ties within traditional insurance products. Also life and dis- ability insurance products come with interest rate risk due to the discounting of future cash flows. Property risk Nordea holds commercial, industrial and residential prop- erties and is exposed to falls in their prices. Currency risk Nordea actively invests in global assets. Virtually all of the currency exposure in the local entities is hedged against the local reporting currencies. Management of market risk Business decisions are formed balancing short-term and long-term objectives, customers, considerations for compet- itiveness, legal requirements, profitability, liquidity and capi- tal. At the same time, the liability-driven investment strat- egy, risk considerations and the Prudent Person Principle must be observed. In order to ensure that all aspects are considered con- tinuously, market risks are monitored regularly against the risk appetite and risk limits. Counterparty default risk Counterparty default risk reflects potential losses from unexpected default of Nordea’s counterparties and debt- ors, taking into account risk-mitigating contracts, reinsur- ance, securitisations and derivatives as well as receivables from intermediaries. Nordea is exposed to counterparty default through cash and deposits held by counterparties as well as the derivatives used to hedge portfolios. Nordea monitors counterparty derivative exposures on a daily basis. The results prove that Nordea is resilient to the stresses performed. To mitigate the exposure to unex- pected defaults, Nordea ensures diversification by coun- terparty. Concentrations to individual counterparties are mitigated through the investment limit framework. Nordea has bilateral agreements with derivative coun- terparties which define the nature, timing and quality of eligible collateral. Nordea manages and monitors collat- eral for derivatives on a weekly and ad hoc basis as necessary. Liquidity risk Liquidity risk is the risk of being able to meet liquidity commitments only at increased cost or, ultimately, being unable to meet obligations as they fall due. Liquidity risk arises both from illiquidity of investment assets (market liquidity risk) and from changed cash flows on liabilities as a result of changed claims and/or lapses (funding liquidity risk). Liquidity risk can also arise from short-term pay- ments affecting the short-term liquidity need. Liquidity risk derives primarily from traditional insurance products. Management and measurement of liquidity risk Nordea’s exposure to liquidity risk is managed based on local liquidity rules, investment guidelines and limits. Liquidity risk is monitored through: • liquidity scoring of current investment assets, • calculation of forward-looking liquidity risk indicators under both normal and stressed conditions, and • calculation of a liquidity ratio for the traditional insur- ance portfolios. Liquidity risk is monitored as part of the Risk Appetite Framework of Nordea Life & Pension Group and its local entities. Moreover, the liquidity risk indicators are integrated into the Nordea Group’s overall monitoring of liquidity risk. Expected yearly net cash flows, undiscounted EURm 31 Dec 2025 31 Dec 2024 1 year or less 2,621 2,297 1–2 years 2,950 2,609 2–3 years 2,577 2,329 3–4 years 2,382 2,136 4–5 years 2,231 1,991 More than 5 years 30,513 26,843 Total 43,274 38,205 Amounts payable on demand EURm 31 Dec 2025 31 Dec 2024 Amounts payable on demand 31,381 28,653 Assets backing insurance contract liabilities 32,845 30,040 Business, strategic and regulatory risk Business risk is defined as the risk associated with uncer- tainty over business conditions such as market environ- ment, customer behaviour and technological progress as well as the financial effects of reputational risk. Strategic risk is defined as the long-term implications associated with the selected business strategy such as product range, customer segments, markets, distribution channels and technological platforms. These may arise due to improper implementation of decisions or lack of responsiveness to industry changes. Risks related to regulatory changes arise as a result of inadequate or imperfect implementation of new or changed regulation. This could potentially impact reputa- tion, processes and costs. Business and strategic risks are mitigated through actions such as monitoring sales, costs and risk results regularly and analysing the drivers of profit. Risks related to the legal environment are mitigated through continuous monitoring of the regulatory develop- ments and through establishing specific programmes to handle the implementation. The compliance function at Nordea Life & Pension monitors compliance with existing laws, regulations and internal rules applicable to Nordea Life & Pension. Environmental, social and governance (ESG) risk ESG risk is a risk category that has gained importance in recent years. Nordea Life & Pension Group considers the double materiality of ESG, i.e. the fact that Nordea Life & Pension Group is exposed to ESG risk while its own actions and investment decisions impact ESG factors, and has developed a consistent approach to sustainability risk and the consideration of ESG factors in the investment process. The perception of ESG risk at Nordea Life & Pension Group comprises: • the physical impact of climate change, • the transition to a low-carbon and climate resilient economy, ===== SIDA 241 ===== Nordea Annual Report 2025 240 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insurance contract liabilities, cont. • an increasing awareness of social objectives, working and safety conditions and human rights, and • an increasing importance of good governance practices within companies, anti-bribery and corruption practices and compliance with relevant laws and regulations. Nordea Life & Pension Group has established a compre- hensive database for ESG risk indicators such as green- house gas emissions (GHG emissions), the Climate Value at Risk (Climate VaR), ESG ratings and many others. The database is updated regularly and developed continuously in order to achieve a good coverage of assets with availa- ble best practice indicators of ESG risk. ESG risks may materialise through other risk types. The table below shows how material the impact may be on the different risk types: Risk type Impact of ESG factors Market Risk High Underwriting Risk Low Operational and Compliance Risk Medium Reputational Risk High ESG factors are considered to have a high impact on mar- ket risk. Market risk may arise from disruptions and shifts associated with the transition to a low-carbon and climate resilient economy. Those risks may be motivated by policy changes, market dynamics, technological innovation or reputational factors. Key examples of transition risks include wrong assessments of climate-induced risks and opportunities, policy changes and regulatory reforms, which affect carbon-intensive sectors. Policy and regula- tory measures may affect specific classes of financial assets (such as real estate portfolios), in addition to those affecting capital markets. Climate risks related to investments are in general assumed to be captured in the market value of the assets. An asset composition heavily weighted towards sectors that are vulnerable to climate changes will however repre- sent concentration risk that requires awareness. The graph below shows the insurance contracts’ equity and corporate bond exposure towards different sectors. The largest exposures are found within financials, technol- ogy and non-cyclical consumer products and services. ESG data concentration 0 5 10 15 20 25 30 % 2025 2024 OtherUtilities Basic Materials TechnologyIndustrialsFinancials Energy Consumer, non-cyclical Consumer, cyclicalCommu- nications While these are not necessarily industries which are asso- ciated with heavy scope 1 emissions (direct carbon emis- sions), scope 2 (indirect carbon emissions) and scope 3 emissions (carbon emissions in the full value chain) must also be taken into consideration. Overall, the equity and corporate bond investments managed by Nordea Life & Pension Group have a scope 1 and 2 carbon intensity aver- aging at 58 tons of CO2 per EURm of sales, compared to the MSCI World average of 112 tons of CO2 per EURm of sales. This underlines that while investing in a similar mix of industrial sectors, Nordea Life & Pension Group makes investment choices within the sectors that underpin the overall net zero emission target. Despite the overall small investments in the utility, industrials and basic materials industries, these sectors contribute significantly to the scope 1 and scope 2 emissions profile of the equity invest- ments. Those sectors in which Nordea Life & Pension Group makes most of its investments contribute compara- tively little to its emissions profile. Nordea Life & Pension Group uses scenario data from the Network for Greening the Financial System as the basis for the forward-looking analysis of climate-related risks. Forward-looking analysis is facilitated by the MSCI Climate VaR which enables analyses of policy-related risks, technological opportunities and physical risks across different scenarios associated with a variety of tempera- ture outcomes and transition narratives. The Climate VaR quantifies these risks in terms of a return-based valuation of companies. The industry sectors that currently have the highest GHG emissions also are the ones that are expected to incur negative effects on their market values due to regu- lation and policy changes. The upside is, however, that these sectors also provide opportunities for developing more GHG efficient technological solutions. The challenge is therefore not to avoid these industry sectors altogether, but to reduce ESG-induced market risk from these sectors, to carefully select the leading companies in terms of ESG- driven development potential and to engage with compa- nies, industry associations and policy makers. Based on the current assessments, ESG-induced market risk is con- sidered as immaterial for Nordea Life & Pension Group. Reputational risk can arise due to failure to deliver on internal and external promises and expectations can lead to negative attention from customers and media, claims and law suits, which in turn can increase lapses and reduce new business. To understand the impact of ESG- related reputational risk different scenarios are analysed where lapses increase. The outcome of the scenarios is that there is a negative profit effect which may affect prof- its in the longer run and also business plans. ESG-related reputational risk can therefore not be dismissed as immaterial. Underwriting risk Underwriting risk is defined as the risk of loss, or of adverse change in the value of insurance liabilities, result- ing from changes in the level, trend, or volatility of mortal- ity rates, longevity rates, disability rates and surrenders and lapses, with such a change leading to an increase in the value of insurance liabilities. Measurement and analysis of underwriting risk Underwriting risks are primarily controlled using actuarial methods, i.e. through tariffs, rules for acceptance of cus- tomers, reinsurance contracts, stress testing and setting adequate provisions for risks. Experience analyses and benchmarking are performed at least annually for each underwriting risk. Nordea measures underwriting risks by measuring the sensitivity of the balance sheet to stressed underwriting scenarios via regular stress and scenario testing. The results prove that Nordea is resilient to the stresses per- formed. Neither Nordea’s underwriting risk exposures nor the approach to measurement changed materially over the reporting period. Lapse risk Lapse risk includes partial and full surrender, transfers of capital and transition to paid-up policies. Exposure to lapse risk is due to the potential deviation between the actual lapse rates and expected lapse rates. Lapse risk is linked to policyholder behaviour. It is miti- gated by ensuring that products meet customers’ needs. Lapses are stress tested, monitored and reported regularly. Monitoring helps Nordea to identify and address emerg- ing trends. ===== SIDA 242 ===== Nordea Annual Report 2025 241 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G4 Insurance contract liabilities, cont. Longevity Longevity risk arises from the annuities in payment and in deferral within Nordea’s traditional insurance products. Mortality rates and life expectancies are updated and benchmarked annually. Concentration of underwriting risks Nordea’s insurance portfolios comprise individual and group policies, all of which are well diversified by industry, geography and demography as well as by product type and risk. Within Nordea’s insurance portfolios, large com- panies may pose a geographic risk concentration. Concentration risk is managed on local entity level and mitigated by reinsurance wherever deemed necessary. Management of underwriting risk Management of underwriting risk includes, among others, underwriting procedures, reinsurance programme and product approval processes. Underwriting procedures Underwriting is performed in compliance with the local entity’s strategic documents for underwriting and insur- ance risks. These documents are established to ensure strong underwriting processes and sound advice to customers. Underwriting procedures intend to ensure the fair and ethical treatment of all new customers and the acceptance or rejection of individual risks on an informed basis. Sound underwriting ensures that the right products are offered to the customers to meet their needs. Individual underwrit- ing is used for life and health policies. Depending on the nature of the risk coverage and the level of benefits, underwriting may include a health assessment. The Actuarial function highlights risks and makes rec- ommendations regarding underwriting in its annual report. The Actuarial function reviews the strategic docu- ments governing underwriting annually and ad hoc when- ever deemed necessary. Reinsurance Nordea’s reinsurance programme covers individual and aggregate mortality and disability risks, including mortal- ity catastrophe cover in Finland and Norway. It includes individual risk retention limits and aggregate stop loss cover. Reinsured risks include mortality, disability and mortality catastrophe. The aim of the reinsurance pro- gramme is to minimise claims volatility, stabilise annual results and protect Nordea from underwriting risk concen- trations and catastrophes. New business with large indi- vidual risk exposures is underwritten with facultative reinsurance. The reinsurance programme is monitored monthly via the risk result by product line. The Actuarial Function is responsible for reviewing the reinsurance strategy and programme as a minimum once a year. Sensitivities Nordea regularly performs stress tests of the contractual service margin (CSM) and profit to assess the impact of various scenarios. The stress tests are conducted by apply- ing overnight market stresses and changes to underwrit- ing assumptions. Due to the long-term nature of the life and pension business Nordea is sensitive to interest rate movements, which in combination with lower equity prices and wider spreads would have a significant impact on profit and the CSM. The methodologies used are aligned with other stress tests carried out and have been developed for IFRS 17 purposes. The relevant sensitivities and their effect on profit and CSM are shown in the table below. Impact on profit Impact on CSM EURm 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Equities -20%1 -32 -29 -216 -230 Interest rates -50bp 0 0 -96 -111 Interest rates +50bp 0 0 83 98 Spread +50bp -3 -3 -13 -13 Combined market stress2 -46 -44 -327 -362 Lapses +10% -6 -5 -21 -21 Expenses +10% -15 -14 -95 -88 Mortality +10% 1 2 3 7 Disability +10% -15 -13 -3 -3 Longevity +10% -3 -5 -10 -21 1) Including alternative investments and -5% on properties. 2) Interest rates -50bp, Equities -20% and Spread +50bp. ===== SIDA 243 ===== Nordea Annual Report 2025 242 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G5 Intangible and tangible assets G5.1 Intangible assets Accounting policies Intangible assets are identifiable, non-monetary assets without physical substance. The assets are under Nordea’s control, which means that Nordea has the power and rights to obtain the future eco- nomic benefits flowing from the underlying resource. Nordea’s intangible assets mainly consist of goodwill, IT development/computer software and customer-related intangible assets. Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of Nordea’s share of net identifiable assets of the acquired group under- taking/associated undertaking/joint venture at the date of acquisition. Goodwill on acquisitions of group undertakings is included in “Intangible assets”. Goodwill on acquisitions of associated undertakings and joint ventures is not recognised as a separate asset but included in “Investments in associated undertakings and joint ventures”. Goodwill is tested annually for impairment or more frequently if events or changes in circumstances indicate that it might be impaired. Goodwill is carried at cost less accumu- lated impairment losses. Impairment losses on good- will cannot be reversed in subsequent periods. Goodwill related to associated undertakings and joint ventures is not tested for impairment separately but included in the total carrying amount of the asso- ciated undertakings and the joint ventures. The poli- cies covering impairment testing of associated undertakings and joint ventures are disclosed in Note 9.3 “Investments in associated undertakings and joint ventures”. IT development/computer software Costs associated with maintaining computer software programs are expensed as incurred. Costs directly associated with major software development invest- ments, with the ability to generate future economic benefits, are recognised as intangible assets. These costs include software development staff costs and overhead expenditures directly attributable to prepar- ing the asset for use. Computer software also includes acquired software licences not related to the function of a tangible asset. Amortisation is calculated on a straight-line basis over the useful life of the software, generally a period of three to five years, and in some circum- stances for strategic infrastructure up to a maximum of ten years. Customer-related intangible assets In business combinations a portion of the purchase price is normally allocated to a customer-related intangible assets if the asset is identifiable and under Nordea’s control. An intangible asset is identifiable if it arises from contractual or legal rights or can be separated from the entity and sold, transferred, licensed, rented or exchanged. The asset is amortised over its useful life, generally over ten years. Impairment Goodwill and IT development not yet taken into use are not amortised but tested for impairment annu- ally irrespective of any indications of impairment. Impairment testing is also performed more fre- quently if required due to any indication of impair- ment. Intangible assets in use and amortised are also evaluated for indications of impairment and if such indications are found, the assets are tested for impairment. The impairment charge is calculated as the difference between the carrying amount and the recoverable amount. The recoverable amount is the higher of fair value less costs to sell and the value in use of the asset or the cash- generating unit ( CGU), which is defined as the smallest identifiable group of assets that generate largely independent cash flows in relation to other assets. For goodwill and IT development not yet taken into use, the CGUs are defined as the oper- ating segments. The value in use is the present value of the cash flows expected to be realised from the asset or the CGU. Critical judgements and estimation uncertainty The identification of CGUs and to what extent they can be aggregated to groups that are tested together requires judgement. Internally developed software is included in the impairment test and allocated to the CGUs. Nordea’s total goodwill amounted to EUR 2,185m (EUR 2,180m) at the end of the year. Internally developed software amounted to EUR 1,696m (EUR 1,530m) at the end of the year. The estimation of future cash flows and the calcu- lation of the rate used to discount those cash flows are subject to estimation uncertainty. The forecast of future cash flows is sensitive to the cash flow projec- tions for the near future (generally 3–5 years) and to the estimated sector growth rate for the period beyond 3–5 years. The growth rates are based on historical data, updated to reflect the current situa- tion, which implies estimation uncertainty. Also, the estimate for the long-term growth rate requires criti- cal judgement. The derived cash flows are discounted at a rate based on the market’s long-term risk-free rate of interest and yield requirements. Impairment testing The impairment test is performed for each CGU by com- paring the carrying amount of the net assets, including goodwill, with the recoverable amount. The recoverable amount is the value in use and is estimated based on the discounted cash flows. Due to the long-term nature of the investments, cash flows are expected to continue indefinitely. Cash flows for the coming three years are based on financial forecasts. The forecasts are based on Nordea’s macroeconomic outlook, including information on GDP growth, inflation and benchmark rates for the relevant countries. Based on these macroeconomic forecasts, the business areas project how margins, volumes, sales and costs will develop over the coming years. Credit losses are estimated using the long-term average for the different business areas. This results in an income statement for each year. The projected cash flow for each year is the forecast net result in these income statements, reduced by the regulatory capital needed to grow the business in accordance with the long-term growth assumptions. For CGUs with more capital than the Group’s CET1 target, the expected dividends are included in the cash flows gener- ated by the CGUs until these meet the Group’s CET1 target over a three-year period. The projections take into consideration the major pro- jects initiated at Nordea. There is also an allocation of cen- tral costs to business areas to make sure that the cash flows for the CGUs include all indirect costs. Tax costs are estimated based on the standard tax rate. Cash flows for the period beyond the forecasting period are based on estimated sector growth rates. Growth rates are based on historical data, updated to reflect the current situation. The derived cash flows are discounted at a rate based on the market’s long-term risk-free rate of interest and yield requirements. The discount rate used in 2025 was 9.0% (8.5%) post-tax, corresponding to a pre-tax rate of 11.7% (11.0%). The estimated growth rate was 2.0% (2.0%). The CGUs cover all Nordic currencies and Nordea dis- counts the future estimated cash flows using one EUR rate for all CGUs. The impairment tests conducted in 2025 did not indi- cate any need for goodwill impairment. Both an increase in the discount rate of 1 percentage point and a reduction in the future growth rate of 1 per- centage point are considered to be reasonably possible ===== SIDA 244 ===== Nordea Annual Report 2025 243 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G5.1 Intangible assets, cont. changes in the key assumptions. Such a change would not result in any impairment. In addition to the cash flow test for CGUs, internally developed IT systems are qualitatively assessed for indica- tions of impairment. If such indications exist, an analysis is performed to assess whether the carrying amount of the assets is fully recoverable. This is assessed on an individual asset level based on a qualitative analysis. Both external and internal impairment triggers are reviewed. External impairment triggers could be that the market is moving to new cloud solutions that are significantly more cost efficient compared to an on-premise solution. Another trigger could be that a product that is supported by the development becomes redundant or replaced by another product in the market, indicating that the value of the development may be impaired. Internal impairment triggers are internal decisions indi- cating that products supported by the functionality will be discontinued, that a line of business will be discontinued, that it is expected/decided internally that the functionality will be moved to cloud or replaced by new on-premise functionality, etc. Intangible assets Cash-generating units, EURm Goodwill1 31 Dec 2025 Internally developed software 31 Dec 2025 Total 31 Dec 2025 Goodwill1 31 Dec 2024 Internally developed software 31 Dec 2024 Total 31 Dec 2024 Personal Banking 1,084 549 1,633 1,081 484 1,565 Business Banking 882 570 1,452 881 508 1,389 Large Corporates & Institutions 151 359 510 151 327 478 Asset & Wealth Management 68 218 286 67 211 278 Total 2,185 1,696 3,881 2,180 1,530 3,710 Other intangible assets2 – – 207 – – 172 Total intangible assets 2,185 1,696 4,088 2,180 1,530 3,882 1) Excluding goodwill in associated undertakings. 2) Including bought software licences outside internal development projects of EUR 136m (EUR 106m). Movements in goodwill, EURm 31 Dec 2025 31 Dec 2024 Acquisition value at beginning of year 2,180 2,227 Translation differences 5 -47 Acquisition value at end of year 2,185 2,180 Total 2,185 2,180 Movements in internally developed software, EURm 31 Dec 2025 31 Dec 2024 Acquisition value at beginning of year 2,554 2,503 Acquisitions 474 407 Sales/disposals -15 -313 Reclassifications 3 -3 Translation differences 49 -40 Acquisition value at end of year 3,065 2,554 Accumulated amortisation at beginning of year -942 -911 Amortisation according to plan -337 -296 Accumulated amortisation on sales/disposals 5 251 Translation differences -20 14 Accumulated amortisation at end of year -1,294 -942 Accumulated impairment charges at beginning of year -82 -135 Accumulated impairment charges on sales/disposals 10 62 Impairment charges -2 -12 Translation differences -1 3 Accumulated impairment charges at end of year -75 -82 Total 1,696 1,530 G5.2 Properties and equipment Accounting policies Properties and equipment consist of properties for own use, leasehold improvements, IT equipment, fur- niture and other equipment. Right-of-use assets under leasing agreements are presented in this item; see Note G5.4 “Leases” for more information. Items of properties and equipment are measured at cost less accumulated depreciation and accumulated impair- ment losses. The cost of an item of property and equipment comprises its purchase price as well as any directly attributable costs of bringing the asset to the working condition for its intended use. Parts of an item of property and equipment are accounted for as separate items if they have different useful lives. Owner-occupied properties backing issued insur- ance contracts with direct participation features are measured using the fair value model in accordance with IAS 40. For more information about valuation and processes, see Note G5.3 “Investment properties”. Improvements are recognised as assets if they pro- vide an improved function of the asset, while mainte- nance does not improve the function of the assets and is expensed as incurred. Properties and equipment are depreciated on a straight-line basis over the estimated useful life of the assets as specified below. The estimates of the useful life of different assets are reassessed on a yearly basis. Buildings 30–75 years Equipment 3–5 years Leasehold improvements For changes within buildings, the shorter of 10 years and the remaining lease term. For new construction, the shorter of the principles used for owned buildings and the remaining lease term. Fixtures installed in leased properties are depreciated over the shorter of 10–20 years and the remaining lease term. At each balance sheet date, Nordea assesses whether there is any indication that an item of prop- erty and equipment may be impaired. If any such indication exists, the recoverable amount of the asset is estimated, and any impairment loss is recognised. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. ===== SIDA 245 ===== Nordea Annual Report 2025 244 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G5.2 Pr operties and equipment, cont. Properties and equipment 31 Dec 2025 31 Dec 2024 EURm Owned assets measured at cost Owned assets measured at fair value Right- of-use assets Total Owned assets measured at cost Owned assets measured at fair value Right- of-use assets Total Equipment 354 – 6 360 349 – 7 356 Land and buildings 26 35 1,143 1,204 26 36 1,243 1,305 Total 380 35 1,149 1,564 375 36 1,250 1,661 Equipment Acquisition value at beginning of year 621 – 16 637 1,074 – 15 1,089 Acquisitions 81 – 3 84 91 – 4 95 Sales/disposals -42 – -3 -45 -530 – -3 -533 Reclassifications -5 – – -5 -3 – – -3 Translation differences 1 – -2 -1 -11 – 0 -11 Acquisition value at end of year 656 – 14 670 621 – 16 637 Accumulated depreciation at beginning of year -271 – -9 -280 -723 – -9 -732 Accumulated depreciation on sales/disposals 40 – 3 43 518 – 3 521 Reclassifications 2 – – 2 – – – – Depreciation according to plan -72 – -3 -75 -72 – -3 -75 Translation differences -1 – 1 0 6 – 0 6 Accumulated depreciation at end of year -302 – -8 -310 -271 – -9 -280 Accumulated impairment charges at beginning of year -1 – – -1 -4 – – -4 Accumulated impairment charges on sales/disposals – – – – 3 – – 3 Translation differences 1 – – 1 0 – – 0 Accumulated impairment charges at end of year 0 – – 0 -1 – – -1 Total 354 – 6 360 349 – 7 356 Land and buildings Acquisition value at beginning of year 30 27 2,030 2,087 32 28 1,924 1,984 Acquisitions – – 36 36 0 – 159 159 Sales/disposals – – -28 -28 -2 – -45 -47 Translation differences – -1 11 10 0 -1 -8 -9 Acquisition value at end of year 30 26 2,049 2,105 30 27 2,030 2,087 Accumulated depreciation at beginning of year -4 – -777 -781 -4 – -676 -680 Accumulated depreciation on sales/disposals – – 28 28 0 – 38 38 Depreciation according to plan – – -143 -143 0 – -143 -143 Translation differences 0 – -4 -4 0 – 4 4 Accumulated depreciation at end of year -4 – -896 -900 -4 – -777 -781 Accumulated impairment charges at beginning of year – – -10 -10 – – -15 -15 Reclassifications – – – – – – 5 5 Translation differences – – 0 0 – – 0 0 Accumulated impairment charges at end of year – – -10 -10 – – -10 -10 Fair value adjustment at beginning of year – 9 – 9 – 11 – 11 Fair value adjustment – 0 – 0 – -1 – -1 Translation differences – 0 – 0 – -1 – -1 Fair value adjustment at end of year – 9 – 9 – 9 – 9 Total 26 35 1,143 1,204 26 36 1,243 1,305 G5.3 In vestment properties Accounting policies Investment property is property (land or a building or part of a building or both) held to earn rentals or for capital appreciation or both, rather than for Nordea’s own use in the ordinary course of business. Investment properties are recognised on the bal- ance sheet when it is probable that the future eco- nomic benefits from the asset will flow to the com- pany and the cost of the investment property can be measured reliably. An investment property is initially measured at its cost. Transaction costs are included in the initial measurement. The cost of a purchased investment property comprises its purchase price and any directly attributable expenses. Directly attributable expenses include, for example, professional fees for legal services, property transfer taxes and other transaction costs. Nordea applies the fair value model for subsequent measurement of investment properties. The best evi- dence of fair value is normally quoted prices in an active market for similar properties in the same loca- tion and condition. As these prices are rarely availa- ble, discounted cash flow projection models based on reliable estimates of future cash flows are also used. The fair value measurement of investment properties takes into account a market participant’s ability to generate economic benefits through the highest and best use of the property, i.e. taking into account the use of the property in a way that is physically possi- ble, legally permissible and financially feasible. Net rental income, gains and losses as well as fair value adjustments are recognised directly in the income statement as “Net result from items at fair value”. Fair value measurements of investment proper- ties are categorised under the three levels of the IFRS fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices ===== SIDA 246 ===== Nordea Annual Report 2025 245 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G5.3 In vestment properties, cont. (unadjusted) in active markets for identical invest- ment properties (Level 1) and the lowest priority to unobservable inputs (Level 3). The categorisation of the investment properties is based on the lowest level input that is significant to the fair value meas- urement in its entirety. For more information about the estimation of fair value and the fair value hierarchy, see Note G3.4 “Fair value”. Critical judgements and estimation uncertainty Investment properties are measured at fair value. As there are normally no active markets for investment properties, the fair value is estimated based on dis- counted cash flow models. These models are based on assumptions about future rents, vacancy levels, operating and maintenance costs, yield require- ments and interest rates. The carrying amount of investment properties was EUR 3,091m (EUR 2,883m) at the end of the year. Amounts recognised in the income statement 1 EURm 2025 2024 Fair value adjus tments2 55 -16 Rental income 114 108 Direct operating expenses that generated rental income -33 -40 Direct operating expenses that did not generate rental income -2 -2 Total 134 50 1) Incl uded in “Net result from items at fair value“. 2) Ex cluding fair value adjustments on investment properties presented as “Assets in pooled schemes and unit-linked investments contracts” on the balance sheet. Categorisation in the fair value hierarchy All investment properties in Nordea are categorised as Level 3 in the fair value hierarchy. The fair value of these investment properties are presented in the table below. Level 3 - Fair value of investment properties1, EURm 31 Dec 2025 31 Dec 2024 Investment properties 2,215 2,132 - of which Life & Pension 2,209 2,125 Investment properties in pooled schemes and unit-linked investment contracts 2 876 751 - of which Life & Pension 876 751 Total 3,091 2,883 1) All it ems are measured at fair value on the balance sheet on a recurring basis at the end of each reporting period. 2) F or further information, see Note G3.11 “Assets and deposits in pooled schemes and unit-linked investment contracts“. Determination of fair value The valuation of the investment properties takes into account the purpose and the nature of the properties by using the most appropriate valuation methods to derive fair value. The primary valuation approach is a discounted cash flow model using current cash flows, market interest rates and the current yield requirements for the respective properties. Fair value is based on external independent valuers for 100% (100%) of the total fair value of invest- ment properties on the balance sheet. Movements in Level 3 The tables below present the movements in Level 3. Unrealised gains and losses relate to the investment prop- erties held at the end of the year. Fair value gains and losses in the income statement during the year are included in “Net result from items at fair value” (see Note G2.5 “Total net result from items at fair value”). Fair value gains/losses recognised in the income statement during the y ear EURm 1 Jan Realised Unrealised Purchases/ issues Sales Reclassifi- cation2 Translation differences 31 Dec 2025 Investment properties 2,132 -3 58 130 -56 -63 17 2,215 - of which Life & Pension 2,125 -3 59 129 -55 -63 17 2,209 Investment properties in assets in pooled schemes and unit-linked investment contracts1 751 – 9 59 -7 63 1 876 - of which Life & Pension 751 – 9 59 -7 63 1 876 2024 Investment properties 2,199 7 -23 43 -24 -35 -35 2,132 - of which Life & Pension 2,191 7 -22 42 -23 -35 -35 2,125 Investment properties in assets in pooled schemes and unit-linked investment contracts1 729 – -43 67 -25 35 -12 751 - of which Life & Pension 729 – -43 67 -25 35 -12 751 1) F or further information, see Note G3.11 “Assets and deposits in pooled schemes and unit-linked investment contracts”. 2) R eclassification from/to the balance sheet item “Properties and equipment” (see Note G5.2 “Properties and equipment”) due to changed use of properties. The valuation process for fair value measurements The main part of the investment properties of Nordea is held by Life & Pension entities. The valuation of the invest- ment properties is performed at least quarterly by external valuers throughout all Life & Pension entities. The princi- ples used by all entities are in accordance with regulations issued by the local financial supervisory authorities as well as with international valuation principles and the IFRS. In addition, there is an internal joint Nordic committee that focuses on the pricing and valuation of the balance sheet items and regularly monitors price deviations and the correctness of valuations. Life & Pension’s investment properties are backing the insurance and investment contracts. This means that the impact on Nordea’s income statement and on sharehold- ers’ equity is based on the profit structure of the portfolio of contracts backed by the investments. The significant unobservable inputs used in the fair value measurement of the investment properties are mar- ket rent and yield requirement. Significant increases (decreases) in the market rate or yield requirement would in isolation result in a significantly lower (higher) fair value. ===== SIDA 247 ===== Nordea Annual Report 2025 246 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G5.3 In vestment properties, cont. Valuation techniques and inputs used in fair value measurements in Level 3 31 Dec 2025 31 Dec 2024 EURm Fair value1 Of which Life & Pension Valuation techniques Unobservable input Range of unobservable input Weighted average of unobservable input Fair value1 Of which Life & Pension Valuation techniques Unobservable input Range of unobservable input Weighted average of unobservable input Norway 937 937 Discounted cash flows Market rent 778 778 Discounted cash flows Market rent - Commercial EUR 125–149/m2 130 EUR/m2 - Commercial EUR 119–144/m2 123 EUR/m2 - Office EUR 158–534/m2 282 EUR/m2 - Office EUR 104–556/m2 255 EUR/m2 - Other EUR 128–509/m2 355 EUR/m2 - Other EUR 119–490/m2 341 EUR/m2 Yield requirement Yield requirement - Commercial 6.5–6.5% 6.5% - Commercial 6.5–6.5% 6.5% - Office 4.5–6.3% 5.2% - Office 4.5–6.8% 5.4% - Other 4.8–6.0% 4.9% - Other 4.9–6.0% 5.1% Finland2 853 853 Discounted cash flows Market rent 906 906 Discounted cash flows Market rent - Commercial EUR 144–366/m2 255 EUR/m2 - Commercial EUR 144–370/m2 257 EUR/m2 - Office EUR 144–579/m2 362 EUR/m2 - Office EUR 144–579/m2 362 EUR/m2 - Flat EUR 183–324/m2 254 EUR/m2 - Flat EUR 186–312/m2 249 EUR/m2 - Other EUR 120–306/m2 213 EUR/m2 - Other EUR 122–321/m2 222 EUR/m2 Yield requirement Yield requirement - Commercial 4.8–8.5% 6.6% - Commercial 4.8–8.5% 6.6% - Office 4.8–13.0% 8.9% - Office 4.8–12.5% 8.6% - Flat 4.2–5.8% 5.0% - Flat 4.3–5.5% 4.9% - Other 5.3–8.8% 7.0% - Other 4.8–8.3% 6.5% Sweden 417 417 Discounted cash flows Market rent 366 366 Discounted cash flows Market rent - Commercial EUR 146–252/m2 200 EUR/m2 - Commercial EUR 140–206/m2 167 EUR/m2 - Office EUR 275–631/m2 418 EUR/m2 - Office EUR 268–570/m2 383 EUR/m2 - Flat EUR 196–206/m2 200 EUR/m2 - Flat EUR 178–184/m2 181 EUR/m2 - Other EUR 82–119/m2 97 EUR/m2 - Other EUR 80–113/m2 93 EUR/m2 Yield requirement Yield requirement - Commercial 5.7–6.8% 6.4% - Commercial 5.7–6.8% 6.4% - Office 4.3–5.6% 4.9% - Office 4.3–5.7% 4.9% - Flat 4.3–4.4% 4.3% - Flat 4.2–4.4% 4.2% - Other 5.3–6.7% 5.5% - Other 5.3–6.7% 5.5% Denmark 878 878 Discounted cash flows Market rent 826 826 Discounted cash flows Market rent - Commercial – – - Commercial – – - Office EUR 83–206/m2 161 EUR/m2 - Office EUR 57–260/m2 140 EUR/m2 - Flat EUR 155–302/m2 247 EUR/m2 - Flat EUR 124–348/m2 213 EUR/m2 Yield requirement Yield requirement - Commercial – – - Commercial – – - Office 4.0–7.9% 6.0% - Office 5.0–8.0% 6.0% - Flat 3.1–5.0% 4.0% - Flat 3.0–6.0% 4.0% Other 6 – Discounted cash flows 7 – Discounted cash flows Total 3,091 3,085 2,883 2,876 1) Split bas ed on the valuation methodologies used in different countries. 2) Of which EUR 87 6m (EUR 751m) is related to investment properties in pooled schemes and unit-linked investments in Life & Pension. For more information, see Note G3.11 “Assets and deposits in pooled schemes and unit-linked investment contracts“. ===== SIDA 248 ===== Nordea Annual Report 2025 247 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G5.4 Leases Accounting policies A lease is a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Nordea as lessor Finance leases are reported as receivables from the lessee and included in “Loans to the public” (see Note G3.8 “Loans”) at an amount equal to the net investment in the lease. The lease payment, exclud- ing cost of services, is recorded as repayment of principal and interest income. The income allocation is based on a pattern reflecting a constant periodic return on the net investment outstanding in respect of the finance lease. Nordea as lessee At inception Nordea assesses whether a contract is or contains a lease. The right to use an asset in a lease contract is rec- ognised on the commencement date as a right-of- use (ROU) asset and the obligation to pay lease pay- ments is recognised as a lease liability. The ROU asset is initially measured as the present value of the lease payments plus initial direct costs and the cost of obligations to refurbish the asset less any lease incentives received. Non-lease components are sep- arated. The discount rate used to calculate the lease liability for each contract is the incremental borrow- ing rate at commencement of the contract. In signifi- cant premises contracts the rate implicit in the con- tract may be used if available. The ROU assets are presented as similar owned assets and the lease liabilities as “Other liabilities” on the balance sheet. The depreciation policy is con- sistent with that of similar owned assets, but the depreciation period is capped at the end of the lease term. Impairment testing of the ROU assets is per- formed according to the same principles that apply to similar owned assets. Interest expense on lease liabilities is presented as “Interest expense” in the income statement. The assets are classified as “Land and buildings” and “Equipment”. Equipment mainly comprises vehi- cles and IT hardware. Nordea applies the practical expedient for short-term contracts (with a contract term of 12 months or less) both for “Land and build- ings” and for “Equipment”. The practical expedient for low-value assets is applied to “Equipment”. Short-term and low-value contracts are not recog- nised on the balance sheet and the payments are recognised as “Other expenses” in the income state- ment on a straight-line basis over the lease term unless another systematic way better reflects the time pattern of Nordea’s benefit. The lease term is the expected lease term. This comprises the non-cancellable period of lease con- tracts and any options that Nordea is reasonably certain to exercise. The length of contracts with no end date is estimated by considering all facts and circumstances. Embedded leases Agreements can contain a right to use an asset in return for a payment or a series of payments although the agreement is not in the legal form of a lease contract. If applicable, these assets are sepa- rated from the contract and accounted for as leased assets. Critical judgements and estimation uncertainty For a lessee, critical judgement has to be exercised when estimating the expected lease term by consid- ering all facts and circumstances that create an eco- nomic incentive to exercise an extension or termina- tion option. The expected lease term for contracts with no end date is estimated in the same way. Backstop rules on the average expected lifetime of different types of real estate contracts are used as a guidance when making the estimate for branch offices. A more detailed analysis is performed for more significant contracts. Head office contracts are estimated to be more long term in nature than branch office contracts where the business environ- ment is changing at a more rapid pace. The back- stop rule covering branch offices is currently limiting the expected lease term of contracts with no end date and contracts with extension options to five years. It is possible to deviate from the backstop rule if the circumstances show that Nordea is likely to stay for a longer/shorter period. The carrying amount of ROU assets was EUR 1,149m (EUR 1,250m) at the end of the year. For a lessor, critical judgement has to be exercised when classifying lease contracts. A lease is classified as a finance lease if it transfers substantially all the risks and rewards related to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards related to ownership. Nordea as lessor Nordea’s leasing operations comprise finance leases. The leased assets mainly comprise vehicles, machinery and other equipment. The table below shows a reconciliation of gross invest- ments and the present value of future minimum lease payments. EURm 31 Dec 2025 31 Dec 2024 Gross investments 10,118 10,349 Less unearned finance income -1,623 -1,715 Net investments in finance leases 8,495 8,634 Less unguaranteed residual values accruing to the benefit of the lessor -2 -2 Present value of future minimum lease payments receivable 8,493 8,632 Accumulated allowance for uncollectible minimum lease payments receivable -12 -16 The residual value risk of finance leases is carried by the vendor or by the lessee according to the terms of the contract. As at 31 December 2025 the gross investment and the net investment by remaining maturity were distributed as follows: 31 Dec 2025 EURm Gross investment Net investment 2026 2,684 2,178 2027 2,392 1,976 2028 1,889 1,574 2029 1,143 993 2030 788 674 Later years 1,222 1,100 Total 10,118 8,495 ===== SIDA 249 ===== Nordea Annual Report 2025 248 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G5.4 L eases, cont. Nordea as lessee Leases are mainly related to office premises contracts but also to company cars, IT hardware and other assets normal to the business. The premises contracts are actively man- aged with focus on the effective use of the premises and changes in the business environment. The lease payments generally include fixed payments and especially in premises contracts also variable payments that depend on an index. Residual value guarantees or purchase options are gener- ally not used. Lease expenses are disclosed in the table below. EURm 2025 2024 Expense related to short-term leases -15 -11 Expense related to low-value leases -1 0 Expense related to variable payments -13 -13 Interest expense -19 -17 Sub-lease income 2 1 Total cash outflow for leases -160 -192 The table below shows the contractual maturity of undis- counted cash flows on lease liabilities. EURm 31 Dec 2025 31 Dec 2024 Less than one year 125 129 1–2 years 111 118 2–5 years 277 281 5–10 years 343 345 10–15 years 265 292 15–20 years 67 92 20–25 years – – Total 1,188 1,257 More information on right-of-use assets and the maturity profile can be found in Note G5.2 “Properties and equip- ment” and in Note G10.3 “Maturity analysis“. There are no significant lease commitments for leases that have not yet commenced at the end of the year. Nordea operates from leased premises. The premises are mainly divided into head office contracts, branch office contracts and other contracts. The expected lease term in most of the premises con- tracts is 1–10 years, whereas the expected lease term of the main head office contracts in the Nordic countries is 10–20 years. These contracts usually have renewal options. The head office contracts generally have fixed lease terms, whereas branch office contracts either have fixed lease terms or are without an end date with the right to terminate. The termination clauses are generally 6–12 months. The main principle is that premises contracts do not contain purchase options. Company car contracts generally have a fixed lease term of less than five years. G6 Provisions Accounting policies Provisions (which are presented as a liability) are rec- ognised when Nordea has a present obligation (legal or constructive) as a result of a past event if it is prob- able (i.e. more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation, where a reliable esti- mate can be made of the amount of the obligation. The amount recognised as a provision is the best esti- mate of the expenditure required to settle the present obligation at the end of the reporting period. Accounting policies relating to employee benefits are further described in Note G8 “Employee benefits and key management personnel remuneration” and relating to financial guarantee contracts and credit commitments in Note G7 “Off-balance sheet items”. Accounting policies for provisions for off-balance sheet items can be found in Note G3.8 “Loans”. Critical judgements and estimation uncertainty Within the framework of normal business opera- tions, Nordea faces a number of operational and legal risks potentially resulting in reputational impacts, fines, sanctions, disputes, remediation costs, losses and/or litigation. Specifically, Nordea faces potential claims related to the provision of banking and investment services and other areas in which it operates. Currently, such claims are mainly related to lending and insolvency situations, various investment services, and sub-custody and withhold- ing taxation matters. At present, none of the current claims are considered likely to have any significant adverse effect on Nordea or its financial position. As previously stated, Nordea has expected to be fined in Denmark for weak AML processes and procedures in the past and has made a provision for ongoing AML-related matters. Nordea cannot exclude the possibility of fines which could impact the bank’s financial performance. In addition, some of these proceedings could lead to litigation. See also section 6 “Compliance Risk” in Note G11 “Risk and liquidity management”. Provisions EURm 31 Dec 2025 31 Dec 2024 Restructuring 44 64 Guarantees/commitments 158 193 Other 146 139 Total 348 396 Provisions for restructuring costs consist of staff-related restructuring of EUR 33m (EUR 47m) and premises-related obligations of EUR 11m (EUR 17m). The staff-related provision is related to contracts entered into, or activities communicated but not yet exe- cuted, where payments have not been made. These con- tracts are entered into in the ordinary course of business. Approximately EUR 25m (EUR 28m) out of the total restructuring provision is expected to be utilised/paid out in 2026. All staff-related activities are expected to be exe- cuted on in 2026, but payments are expected to extend into 2027. As for any other provision, there is uncertainty surrounding the timing and the amount to be finally paid. The uncertainty is expected to decrease as the plans are executed. Loan loss provisions for off-balance sheet items amounted to EUR 158m (EUR 193m). More information on these provisions can be found in section 2 “Credit risk“ in Note G11 “Risk and liquidity management” and Note G7 “Off-balance sheet items”. More information on the provision for AML-related mat- ters can be found in section 6.3 “Financial crime preven- tion“ in Note G11 “Risk and liquidity management”. Restruc turing Other EURm 2025 2024 2025 2024 At beginning of year 64 75 139 128 New provisions made 24 32 113 98 Provisions utilised -39 -42 -88 -88 Reversals -6 -3 -18 0 Reclassifications – 4 – 2 Translation differences 1 -2 0 -1 At end of year 44 64 146 139 ===== SIDA 250 ===== Nordea Annual Report 2025 249 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G7 Off-balance sheet items G7.1 C ontingent liabilities Accounting policies A contingent liability is: • a possible obligation whose existence will be con- firmed only by future event(s) not wholly within Nordea’s control, or • a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured with suffi- cient reliability. Contingent liabilities are not recognised as liabilities on the balance sheet but disclosed as an off-balance sheet item unless the possibility of an outflow is remote. When an outflow is more likely than not, a provi- sion is recognised on the balance sheet. The accounting policies covering provisions can be found in Note G6 “Provisions”. Guarantees and documentary credits are recog- nised on the balance sheet under the expected credit loss requirements as further defined in Note G3.8 “Loans”. Changes in provisions are recognised in the income statement in the line item “Net loan losses“. Premiums received for financial guarantees are amortised over the guarantee period and recognised as “Fee and commission income” in the income state- ment. The contractual amounts are recognised off bal- ance sheet, net of any provisions. Critical judgements and estimation uncertainty See also ”Critical judgements and estimation uncer- tainty” in Note G6. The table below includes all issued guarantees, also those for which the possibility of an outflow of resources is con- sidered remote. Contingent liabilities EURm 31 Dec 2025 31 Dec 2024 Loan guarantees 1,995 1,834 Other guarantees 17,550 18,503 Documentary credits 451 434 Other contingent liabilities 13 70 Total 20,009 20,841 In its normal business, Nordea issues various forms of guarantees in favour of its customers. Loan guarantees are provided for customers to guarantee obligations in other credit and pension institutions. Other guarantees mainly consist of commercial guarantees such as bid guarantees, advance payment guarantees, warranty guarantees and export-related guarantees. Contingent liabilities also include unutilised irrevocable import documentary credits and confirmed export documentary credits. These transac- tions are part of the bank´s services and support Nordea´s customers. The 2025 Annual General Meeting decided that Nordea Bank Abp will cover or reimburse the members of the Board of Directors all costs and expenses related to or arising from the Board membership, including travel, logis- tics and accommodation as well as consultative, legal and administrative costs. The legal costs can e.g. include required costs of legal defence and claims made (during and after their period of office) against Board members in cases where Board members are not found liable or guilty of any intentional wrongdoing or grossly negligent behaviour. The members of the GLT are afforded coverage and reimbursement corresponding to that of the Board in instances related to or arising from their GLT membership. In addition, since 2019 and until 2025 Nordea Bank Abp had undertaken to indemnify the members of the GLT against legal expenses incurred in relation to certain claims or investigations by third parties based on circum- stances or events which occurred during the members’ respective terms of office, excluding crimes or actions made with intent or gross negligence, up to a capped aggregate amount of EUR 37.5m, unless the Board decides otherwise on a case-by-case basis. Nordea Bank Abp has undertaken, in relation to certain individuals and on certain conditions, to be responsible for the potential payment liability against these individuals in their capacity of managing directors or board members of group undertakings of Nordea Bank Abp. Nordea Bank Abp purchases directors and officers lia- bility insurance, which provides cover for personal liabili- ties of its Board of Directors and management as well as liability assumed by the bank to a certain extent following indemnification undertakings. The terms and conditions including the total limit of liability of the directors and officers liability insurance programme are in line with large European banks. A limited number of employees are entitled to sever- ance pay if they are dismissed before reaching their nor- mal retirement age. For further information, see Note G8.4 “Key management personnel remuneration”. Within the framework of normal business operations, Nordea faces a number of operational and legal risks potentially resulting in reputational impacts, fines, sanc- tions, disputes, remediation costs, losses and/or litigation. Specifically, Nordea faces potential claims related to the provision of banking and investment services and other areas in which it operates. See the section “Critical judge- ments and estimation uncertainty” in Note G6 “Provisions”. G7.2 Commitments Accounting policies Commitments are irrevocable promises to extend credit or make other types of payments in the future. Unutilised credit facilities are also disclosed as commitments. Irrevocable commitments are recognised on the balance sheet under the expected credit loss requirements as further defined in Note G3.8 “Loans”. Changes in provisions are recognised in “Net loan losses” in the income statement. Premiums received on credit commitments are generally amortised over the loan commitment period. The contractual amounts are recognised off balance sheet, net of any provisions. Commitments EURm 31 Dec 2025 31 Dec 2024 Unutilised overdraft facilities 28,876 28,325 Loan commitments 66,134 58,623 Future payment obligations 767 817 Other commitments 2,030 1,986 Total 97,807 89,751 Reverse repurchase agreements are recognised on and derecognised from the balance sheet on the settlement date. As at 31 December 2025 Nordea had signed reverse repurchase agreements that have not yet been settled and consequently are not recognised on the balance sheet. On the settlement date, these reverse repurchase agreements will, as far as possible, replace existing reverse repurchase agreements not yet derecognised as at 31 December 2025. The net impact on the balance sheet is minor. These instruments have not been disclosed as commitments. For more information on reverse repurchase agree- ments, see Note G3.2 “Transferred assets and obtained collateral”. ===== SIDA 251 ===== Nordea Annual Report 2025 250 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G7.3 Assets pledged Accounting policies Assets recognised on the balance sheet and pledged as security for Nordea’s own liabilities are disclosed as “Assets pledged as security for own liabilities”. Assets recognised on the balance sheet and pledged for other than own liabilities are disclosed as “Assets pledged as security for other than own liabilities”. Securities borrowed and then used as collateral are presented as “Transferred assets and obtained collat- eral” (see Note G3.2 “Transferred assets and obtained collateral” for accounting policies). Assets pledged EURm 31 Dec 2025 31 Dec 2024 Assets pledged as security for own liabilites 248,530 216,648 Assets pledged as security for other than own liabilities 169 236 Total 248,699 216,884 Assets pledged as security for own liabilities EURm 31 Dec 2025 31 Dec 2024 Assets pledged as security for own liabilities Securities etc. 4,800 2,415 Loans to the public 185,536 163,058 Other assets pledged 58,194 51,175 Total 248,530 216,648 The above pledges pertain to the following liabilities1 Deposits by credit institutions 5,174 3,663 Deposits and borrowings from the public 4,164 1,022 Derivatives 4,341 5,532 Debt securities in issue2 117,619 124,355 Other liabilities and commitments 54,035 45,776 Total 185,333 180,348 1) Liabilitie s after offsetting between assets and liabilities on the balance sheet. 2) Ex cluding fair value hedge adjustment. Assets pledged as security for own liabilities comprise securities pledged as security under repurchase agree- ments and under securities lending agreements. The transactions are conducted under standard agreements employed by financial market participants. Counterparties to the transactions are credit institutions and the public. The transactions are typically short term and mature within three months. Securities related to life operations are also pledged as security for the corresponding insur- ance liabilities. Loans to the public have been registered as collateral for issued covered bonds and mortgage bonds in line with local legislation. In the event of the company´s insolvency, the holders of these bonds have priority to the assets reg- istered as collateral. Other assets pledged relate to certificates of deposit pledged by Nordea to comply with the authorities’ requirements. Assets pledged as security for other than own liabilities Assets pledged as security for other than own liabilities mainly relate to interest-bearing securities pledged as security for payment settlements with central banks and clearing institutions. Only securities pledged overnight are disclosed (securities pledged intraday are excluded). Collateral pledged for items other than Nordea’s own lia- bilities, e.g. for a third party or for Nordea’s own contin- gent liabilities, is also presented under this item. ===== SIDA 252 ===== Nordea Annual Report 2025 251 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8 Employee benefits and key management personnel remuneration All forms of consideration given by Nordea to its employees as compensation for services performed are employee ben- efits. Employee benefits consist of short-term benefits, post-employment benefits and share-based payment plans. Short-term benefits are to be settled within twelve months after the reporting period when the services have been performed. Short-term benefits consist mainly of fixed and variable salary. For more information, see Note 8.1 “Fixed and variable salaries”. Post-employment benefits are benefits payable after termination of the employment. Post-employment bene- fits in Nordea consist only of pensions. For more informa- tion, see Note 8.2 “Pensions”. Share-based payment plans cover share-based pay- ments for services from employees. For more information, see Note G8.3 “Share-based payment plans”. In addition, remuneration to key management person- nel is disclosed in Note G8.4 “Key management personnel remuneration”. Additional disclosures on remuneration The Board of Directors’ report includes a separate section on remuneration. Further, in accordance with the Finnish Corporate Governance Code 2025 the Remuneration Report for Governing Bodies 2025 will be prepared for the Annual General Meeting on 24 March 2026. Finally, aggre- gated disclosures for key management personnel and material risk takers (Pillar III, CRR article 450) will be pub- lished on nordea.com ahead of the Annual General Meeting. G8.1 Fix ed and variable salaries Accounting policies Short-term benefits Short-term benefits consist mainly of fixed and vari- able salary. Both fixed and variable salaries are expensed in the period when the employees per- form services for Nordea. Short-term benefits related to the fulfilment of insurance contracts accounted for under IFRS 17 are included gross in this note. In the income statement those costs are presented as part of the accounting for insurance contracts and not as “Staff costs”, see Note G4 “Insurance contract liabilities” and Note G2.4 “Net insurance result”. Short-term benefits that fulfil the capitalisation requirements defined in the accounting policies in Note G5.1 “Intangible assets” are included gross in this note, but capitalised and added to “Intangible assets” on the balance sheet. Termination benefits Termination benefits normally arise if employment is terminated before the normal retirement date or if an employee accepts an offer of voluntary redundancy. Termination benefits are expensed when Nordea has an obligation to make the payment. An obligation arises when a formal plan has been committed to on the appropriate organisational level and when Nordea is without realistic possibility of withdrawal, which nor- mally occurs when the plan has been communicated to the affected individual or employee(s) or their representatives. Termination benefits can include both short-term benefits, for instance a number of months’ salary, and post-employment benefits, normally in the form of early retirement benefits. Nordea’s Short Term Incentive Plans Nordea operates Short Term Incentive Plans (STIPs). These are the Nordea Incentive Plan (NIP), which is offered to the CEO and members of the Group Leadership Team (GLT) and, subject to invitation, to other employees, or bonus schemes (bonus) for selected employees in spe- cific business areas or units as approved by the Board of Directors (Board). The NIP should primarily be used for roles where variable remuneration is a widespread market practice and makes up a significant part of the total remu- neration package. STIPs have been offered for several years primarily as the Executive Incentive Programme (EIP) and since 2022 as the NIP with similar terms and conditions. The STIPs cover a performance period of one year and deliver cash to the participants and if they are material risk takers also share awards. Deferral is applied for material risk takers to part of the award for delivery annually in equal instalments over the following four or five years and subject to a 12-month retention period. Variable remunera- tion paid in cash and not linked to Nordea’s share price performance is expensed when earned and included in “Fixed and variable salaries” below. Amounts earned and deferred in shares or linked to Nordea’s share price perfor- mance, also expensed as “Fixed and variable salaries” in the below table, are disclosed in the separate Note G8.3 “Share-based payment plans”. Staff costs EURm 2025 2024 Fixed and variable salaries1 -2,569 -2,452 Pension costs (specification in Note G8.2) -300 -288 Social security c ontributions -486 -457 Other staff costs -104 -108 Total gross -3,459 -3,305 Expenses to fulfil insurance contracts in scope of IFRS 17 90 81 Expenses capitalised in IT development projects2 135 118 Total -3,234 -3,106 1) Of which all ocation to profit sharing for 2025 amounted to EUR 65m (EUR 64m), consisting of a new allocation of EUR 62m (EUR 64m) and an adjustment related to prior years of EUR 3m (EUR 0m). 2) See No te G5.1 “Intangible assets”. ===== SIDA 253 ===== Nordea Annual Report 2025 252 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 Pensions Accounting policies Defined contribution plans Pension plans that are based on defined contribution arrangements hold no pension liability for Nordea. Pension costs for defined contribution plans are rec- ognised as an expense as the employee renders ser- vices to the entity and the contribution payable in exchange for that service becomes due. In general, the payment is associated with and settled through regular salary payments. Nordea also contributes to state pension plans. Pension costs for defined contribution plans related to the fulfilment of insurance contracts accounted for under IFRS 17 are included gross in this note. In the income statement those costs are presented as part of the accounting for insurance contracts and not as “Staff costs”, see Note G8.1 “Fixed and variable salaries”. Pension costs for defined contribution plans that fulfil the capitalisation requirements defined in the accounting policies in Note G5.1 “Intangible assets” are included gross in this note, but capitalised and added to “Intangible assets” on the balance sheet. Defined benefit plans IAS 19 ensures that the pension obligations net of plan assets backing these obligations are reflected on the Group’s balance sheet. The major defined benefit plans are funded, covered by assets in pen- sion funds/foundations. If the fair value of plan assets associated with a specific pension plan is lower than the gross present value of the defined benefit obligation determined using the projected unit credit method, the net amount is recognised as a liability (“Retirement benefit liabilities”). If not, the net amount is recognised as an asset (“Retirement benefit assets”). Non-funded pension plans are rec- ognised as “Retirement benefit liabilities”. Also plans that fulfil the accounting requirements for defined contribution plans are accounted for as defined ben- efit plans if the payment obligations have not been transferred. Nordea’s net obligation for defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned for their service in the current period and prior periods. That benefit is discounted to deter- mine its present value. Actuarial calculations, includ- ing the projected unit credit method, are applied to assess the present value of defined benefit obliga- tions and related costs, based on several actuarial and financial assumptions. Current service cost and past service cost are recognised in the income state- ment in the current year. Current service cost is defined as the increase in the present value of the defined benefit obligation resulting from employee service in the current period. Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods trig- gered by plan amendments or curtailments. The present value of the obligation and the fair value of any plan assets are impacted by changes in actuarial assumptions (discount rates (interest rates and credit spreads), inflation, salary increases, turn- over and mortality) and experience effects, including actual outcome compared to assumptions. The remeasurement effects are recognised immediately in equity through other comprehensive income. The discount rate is determined by reference to high-quality corporate bonds where a deep enough market for such bonds exists. Covered bonds are in this context considered to be corporate bonds. In Sweden, Norway and Denmark, the discount rate is determined with reference to covered bonds, whereas in Finland and the UK it is determined with reference to corporate bonds. In Sweden, Norway, Finland and Denmark, the observed bond credit spreads over the swap curve are derived from long- dated covered or corporate bonds and extrapolated to the same duration as the pension obligations using the relevant swap curves. In the UK, the cor- porate bond credit spread over the government bond rate is extrapolated to the same duration as the pension obligations using the government bond curve. When the calculation results in a net asset, the recognised asset is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan. Social security contributions are calculated and accounted for based on the net recognised surplus or deficit by plan and are included on the balance sheet as “Retirement benefit liabilities” or “Retirement benefit assets”. Pension costs for defined benefit plans related to the fulfilment of insurance contracts accounted for under IFRS 17 are included gross in this note. In the income statement those costs are presented as part of the accounting for insurance contracts and not as “Staff costs”, see Note G8.1 “Fixed and variable salaries”. Pension costs for defined benefit plans that fulfil the capitalisation requirements defined in the accounting policies in Note G5.1 “Intangible assets” are included gross in this note, but capitalised and added to “Intangible assets” on the balance sheet. Critical judgements and estimation uncertainty The defined benefit obligation for major pension plans is calculated by external actuaries using demo- graphic assumptions based on the current popula- tion. As a basis for these calculations a number of actuarial and financial parameters are used. The estimation of the discount rate is subject to uncertainty about whether corporate bond markets are deep enough and of high quality. There is also uncertainty about the extrapolation of yield curves to relevant maturities. Other parameters, like assumptions about salary increases and inflation, are based on the expected long-term development of these parameters and also subject to estimation uncertainty. The main parameters used at year end are disclosed together with a description of the sen- sitivity to changes in assumptions. The defined ben- efit obligation was EUR 2,753m (EUR 2,651m) at the end of the year. Pension costs The companies within Nordea have various pension plans. They consist of both defined benefit plans and defined contribution plans, reflecting national practices and condi- tions in the countries where Nordea operates. Pension costs EURm 2025 2024 Defined contribution plans -280 -263 Defined benefit plans1 -14 -19 Defined contribution plans where payment obligations have not been transferred1 -6 -6 Total gross -300 -288 1) Excluding special wage tax (SWT) in Sweden and social security contributions (SSC) in Norway totalling EUR -5m (EUR -7m). Defined contribution plans All new employees have been offered defined contribution plans since 2013 when the defined benefit plan in Sweden was closed for new members. The defined contribution plans follow the local collective agreements and regulations in each country. In Norway, Nordea is part of a collectively agreed multi- employer pension plan in the private sector (AFP), provid- ing entitled employees with an additional life annuity to their regular pensions. As no information is available on Nordea’s share of the liabilities/assets and pension cost, the AFP is accounted for as a defined contribution plan in accordance with IAS 19. The AFP plan is financed by an annual premium, for 2025 equal to 2.7% of employees’ salary between 1 and 7.1 times the Norwegian social security base amount (“G”). The premium amounted to EUR 4m (EUR 3m). Defined benefit plans The plans are operated in accordance with local regula- tory requirements, collective agreements and local prac- tice and are generally employer-financed final salary and service-based pension plans providing pension benefits in addition to the statutory systems. All defined benefit plans are closed for new entrants; new employees are offered defined contribution plans. ===== SIDA 254 ===== Nordea Annual Report 2025 253 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 P ensions, cont. In Sweden, 2,420 (2,565) employees earn defined bene- fit pension rights as the primary pension plan. In Finland, 968 (1,084) employees earn defined benefit pension rights as a supplementary pension to the statutory pension plan (TyEL). In Norway, 153 (175) employees earn defined benefit pension rights as the primary pension plan. Further, 1,118 (1,194) employees and 14 (0) retired employees have defined contribution plans where the pension obligations have not been transferred, which means that they are accounted for as retirement benefit liabilities. Retirement benefit assets and liabilities EURm 31 Dec 2025 31 Dec 2024 Funded defined benefit plans with net asset positions 334 360 Funded defined benefit plans with net liability positions -18 -16 Unfunded defined benefit plans -227 -213 Defined contribution plans where payment obligations have not been transferred -51 -43 Net liability (-)/asset (+) 38 88 In general, the liabilities are safeguarded by assets in dedi- cated pension funds or foundations or alternatively by credit insurance (Sweden only). Pension funds and foun- dations hold both the assets and the pension liabilities, except for Sweden where the pension foundation serves as collateral for the pension liabilites held by Nordea. Minimum funding requirements differ between the pension funds and foundations according to local regula- tory requirements. The funding requirement is generally that the pension obligations measured using local require- ments must be covered in full by a local predefined sur- plus. Other pension plans are not covered by funding requirements and are generally unfunded. The respective Nordea entities issuing the defined pension benefit serve as the sponsoring undertaking in accordance with the EU IORP II Directive. IAS 19 pension calculations and assumptions Defined benefit plans impact Nordea via changes in the net present value of obligations and/or changes in the market value of plan assets. Calculations are performed by external actuaries and are based on actuarial assumptions reflecting long-term expectations. The assumptions disclosed for 2025 impact the liability calculations by year-end 2025, while assumptions dis- closed for 2024 impact the calculations of 2025 pension expenses. Assumptions SE NO FI DK UK 2025 Discount rate 3.53% 4.39% 3.67% 2.94% 5.57% Salary increase 2.70% 3.75% 2.50% 2.25% –2 Inflation 1.70% –3 2.00% –1 3.15% Mortality DUS23 K2013FT TyEl 2016 FSA 25 CMI 2025 2024 Discount rate 3.26% 4.24% 3.26% 2.47% 5.46% Salary increase 2.60% 3.25% 2.50% 2.25% –2 Inflation 1.60% –3 2.00% –1 3.50% Mortality DUS23 K2013FT TyEl 2016 FSA 24 CMI 2024 1) In flation has no impact on the defined benefit obligation in Denmark, as the benefits are salary indexed. 2) No ac tive employees in the UK, no impact from salary increases. 3) In flation has no impact on the defined benefit obligation in Norway. The indexation is rather dependent on the return on the plan assets. Sensitivities – impact on defined benefit obligations % SE NO FI DK UK Discount rate - Increase 50bp -8.22% -6.50% -4.59% -3.55% -5.60% Discount rate - Decrease 50bp 9.36% 7.20% 5.01% 3.79% 6.16% Salary increase - Increase 50bp 1.85% 0.10% 0.16% 4.93% – Salary increase - Decrease 50bp -1.47% -0.10% -0.16% -4.66% – Inflation - Increase 50bp 9.19% – 4.60% – 0.58% Inflation - Decrease 50bp -8.12% – -4.25% – -0.55% Mortality - Increase 1 year 4.76% 3.43% 4.29% 6.55% 2.96% Mortality - Decrease 1 year -4.60% -4.55% -4.22% -6.35% -3.64% The sensitivity analyses are prepared by changing one actuarial assumption while keeping the other assumptions unchanged. This is a simplified approach as the actuarial assumptions are usually correlated. However, it makes it possible to isolate one effect from another. The method used for calculating the impact on the obligations is the same as when calculating the obligations accounted for in the financial statements. The sensitivity analyses include the impact on the liabilities held for future special wage tax (SWT) in Sweden and social security contributions (SSC) in Norway. Net retirement benefit liabilities/assets EURm Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Obligations 1,434 1,385 723 615 477 526 66 70 53 55 2,753 2,651 Plan assets 1,505 1,416 571 576 569 591 81 86 65 70 2,791 2,739 Net liability( -)/asset(+) 71 31 -152 -39 92 65 15 16 12 15 38 88 - of which plans with net assets 167 126 44 133 93 66 18 20 12 15 334 360 - of which plans with net liabilities 96 95 196 172 1 1 3 4 – – 296 272 ===== SIDA 255 ===== Nordea Annual Report 2025 254 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 P ensions, cont. Movements in obligations EURm Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Opening balance 1,385 1,447 615 689 526 584 70 71 55 58 2,651 2,849 Current service cost 16 15 5 4 1 1 – – – – 22 20 Interest cost 47 43 25 24 16 17 2 2 3 3 93 89 Pensions paid -75 -73 -31 -32 -39 -40 -7 -7 -3 -2 -155 -154 Past service cost and settlements 0 1 – 1 1 0 – – – – 1 2 Remeasurement from changes in demographic assumptions – 4 – 35 – – 1 -1 1 0 2 38 Remeasurement from changes in financial assumptions -35 -46 99 -69 -20 -35 -2 1 -1 -5 41 -154 Remeasurement from experience adjustments 23 25 -5 5 -8 -1 2 4 0 -1 12 32 Translation differences 80 -41 -4 -33 – – 0 0 -2 2 74 -72 Change in provision for SWT/SSC1 -7 10 19 -9 – – – – – – 12 1 Closing balance 1,434 1,385 723 615 477 526 66 70 53 55 2,753 2,651 - of which relates to the active population 20% 19% 9% 9% 9% 10% – – – – 15% 14% 1) Change in the pr ovision for SWT in Sweden and SSC in Norway. The average duration of the obligations is 14 (15) years in Sweden, 13 (11) years in Norway, 10 (10) years in Finland, 8 (8) years in Denmark and 12 (13) years in the UK based on discounted cash flows. Movements in the fair value of plan assets EURm Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Opening balance 1,416 1,411 576 586 591 629 86 88 70 73 2,739 2,787 Interest income (calculated using the discount rate) 48 42 24 21 18 18 2 2 4 3 96 86 Pensions paid – – -24 -24 -39 -40 -7 -7 -3 -3 -73 -74 Contributions/refunds by/to employer 0 0 3 4 -1 0 1 2 – – 3 6 Remeasurement (actual return less interest income) -41 3 -6 18 0 -16 -1 1 -2 -7 -50 -1 Translation differences 82 -40 -2 -29 – – 0 0 -4 4 76 -65 Closing balance 1,505 1,416 571 576 569 591 81 86 65 70 2,791 2,739 ===== SIDA 256 ===== Nordea Annual Report 2025 255 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 P ensions, cont. Asset composition Assets are invested in diversified portfolios as further dis- closed below, with bond exposures mitigating the interest rate risk related to the obligations and a fair amount of real assets reducing the long-term inflationary risk related to the liabilities. The asset return in 2025 was positive in all countries. Results were primarily driven by strong equity perfor- mance while increasing discount rates during the period decreased the overall return to 1.7% (3.0%). At the end of the year, the equity exposure in Nordea´s pension funds/foundations represented 22% (22%) of total assets. The Group expects to contribute EUR 2m to its funded defined benefit plans in 2026. Asset composition in funded schemes % Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Bonds 87% 86% 71% 71% 60% 60% 85% 85% 100% 96% 79% 77% - sovereign 35% 35% 33% 32% 24% 28% 22% 21% 100% 96% 34% 34% - covered bonds 34% 33% 30% 31% 8% 7% 63% 64% – – 28% 27% - corporate bonds 18% 18% 8% 8% 28% 25% – – – – 17% 16% - issued by Nordea entities 2% 2% 7% 5% – – – – – – 2% 2% - with quo ted market price in an active market 87% 86% 71% 71% 60% 60% 85% 85% 100% 96% 79% 77% Equities 28% 28% 15% 14% 20% 20% 8% 9% – 4% 22% 22% - domestic 5% 5% 5% 4% 5% 5% – 9% – 3% 5% 5% - European 4% 4% 5% 5% – 5% 4% – – – 3% 4% - US 5% 5% 5% 5% 10% 5% 4% – – 1% 6% 5% - emerging 5% 5% – – 5% 5% – – – – 3% 3% - private equity 9% 9% – – – – – – – – 5% 5% - Nordea shares – – – – – – – – – – – – - with quo ted market price in an active market 19% 18% 15% 14% 20% 20% 8% 9% – 4% 17% 17% Real estate 1% 1% 11% 9% 19% 19% – – – – 7% 7% - occupied by Nordea – – – – 10% 11% – – – – 2% 2% Interest rate swaps -11% -10% – – 0% – – – – – -6% -5% Insurance contracts – – 2% – 0% 1% 0% 6% – – 0% 1% Cash and cash equivalents -5% -5% 1% 6% 1% 0% 7% 0% 0% 0% -2% -2% ===== SIDA 257 ===== Nordea Annual Report 2025 256 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 P ensions, cont. Defined benefit pension cost The total net pension cost related to defined benefit plans (DBPs) recognised in the Group’s income statement (as staff costs) for the year amounted to EUR 25m (EUR 32m). EUR 132m (EUR -99m) was recognised in other compre- hensive income. The amounts include SWT in Sweden and SSC in Norway (see specification of total pension costs recognised in the income statement in the table “Pension costs”). Recognised in the income statement EURm Sweden Norway1 Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Current service cost 16 15 5 4 1 1 – – – – 22 20 Net interest -1 1 1 3 -2 -1 0 0 -1 0 -3 3 Past service cost and settlements 0 1 – 1 1 0 – – 0 0 1 2 SWT/SSC 3 6 2 1 – – – – – – 5 7 Pension costs related to DBPs (expense+/income-) 18 23 8 9 0 0 0 0 -1 0 25 32 1) “Curr ent service cost” of EUR 5m (EUR 4m) and “Net interest” of EUR 1m (EUR 1m) related to defined contribution plans where payment obligations have not been transferred . Recognised in other comprehensive income EURm Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Remeasurement from changes in demographic assumptions – 4 – 35 – – 1 -1 1 0 2 38 Remeasurement from changes in financial assumptions -35 -46 99 -69 -20 -35 -2 1 -1 -5 41 -154 Remeasurement from experience adjustments 23 25 -5 5 -8 -1 2 4 0 -1 12 32 Remeasurement of plan assets (actual return less interest income) 41 -3 6 -18 0 16 1 -1 2 7 50 1 SWT/SSC 8 -8 19 -8 – – – – – – 27 -16 Pension costs related to DBPs (expense+/income-) 37 -28 119 -55 -28 -20 2 3 2 1 132 -99 ===== SIDA 258 ===== Nordea Annual Report 2025 257 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Shar e-based payment plans Accounting policies Equity-settled plans An equity-settled share-based payment transaction occurs when Nordea receives goods or services and uses its own equity instruments as consideration. Such transactions are recognised as a staff expense and a corresponding increase in equity. The expense is measured at the fair value of the goods or services received unless that fair value cannot be estimated reliably. In such cases, the expense is measured by reference to the fair value of the equity instruments awarded, which is the method used by Nordea. When Nordea issues such instruments, the award date fair value of these rights is expensed on a straight-line basis over the vesting period. The fair value per right is estimated at award date and not subsequently updated. The vesting period is the period over which the employees have to remain in service at Nordea in order for their rights to vest. For rights with non-market performance conditions, the amount expensed is the award date fair value per right multiplied by the best estimate of rights that will eventually vest, which is reassessed at each reporting date. For rights with market performance conditions, the total fair value is estimated based on the fair value of each right times the maximum number of rights at award date. Market conditions are taken into account when estimating the fair value of the equity instru- ments awarded. Therefore, if all other vesting condi- tions (e.g. service conditions) are met, Nordea recog- nises the expense for awards of equity instruments with market conditions over the vesting period irre- spective of whether that market condition is satisfied. Social security costs are also allocated over the vesting period. The provision for social security costs is reassessed on each reporting date to ensure that the provision is based on the rights’ fair value at the reporting date. Cash-settled plans A cash-settled share-based payment transaction occurs when Nordea acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or services for amounts that are based on the price of equity instruments of Nordea . For cash-settled share-based payment transactions, the goods or services acquired and the liability incurred are measured at the fair value of the liability. The liability is remeasured at fair value at the end of each reporting period, with any changes in fair value recognised in the line item “Net result from items at fair value” in the income statement. Nordea’s share-based remuneration plans Nordea has several variable pay plans for selected Nordea employees (participants). The terms of the plans vary depending on the target group. Disclosures related to the share-based plans can be found below. All remuneration plans are also described in the section “Remuneration” in the Board of Directors’ report. Until the end of the performance/financial year 2018, Nordea’s share-based variable remuneration plans were partly in the form of equity-linked total shareholders’ return indexation (excluding dividends) and partly in the form of cash. The plans were consequently generally settled in cash and the portion indexed with Nordea’s total shareholders’ return was accounted for as a cash-settled share-based payment plan. The total shareholders’ return indexation resulted in a loss of EUR 0.8m in 2025 related to the remaining deferred payments stemming from these plans. Starting from the 2019 performance year, share-based variable pay plans are partly in the form of cash not linked to the Nordea share and partly in the form of Nordea shares, which makes the portion paid in Nordea shares equity-settled share-based plans. Total shareholders’ return indexation may be used for share-based variable pay plans, subject to operational, administrative or tax issues as well as regulations that apply to certain legal entities. The table below covers all plans with share-based plan expenses recognised in 2025 as well as the comparative figures for 2024. Figures for 2025 are based on the expected outcome and all figures are excluding social security expenses. The expense for 2025 is based on an assumption about the number of shares that will be awarded and deferred for delivery in later years. Share-based payment plans Plan year Equity-settled or cash-settled Delivery period Expense 2025 Expense 2024 Liability 31 Dec 2025 Liability 31 Dec 2024 Outstanding rights 2025 - LTIP 2025–2027 Equity-settled 2028–2033 2 – – – Yes1 - NIP and bonus Equity-settled 2026–2031 12 – – – Yes2 - Buy-outs etc. Equity-settled 2025–2029 – – – – Yes 2024 - LTIP 2024–2026 Equity-settled 2027–2032 2 2 – – Yes3 - NIP and bonus Equity-settled 2025–2030 5 11 – – Yes - Buy-outs etc. Equity-settled 2024–2028 0 0 – – Yes 2023 - LTIP 2023–2025 Equity-settled 2026–2031 3 3 – – Yes4 - NIP and bonus Equity-settled 2024–2029 -2 4 – – Yes - Buy-outs etc. Equity-settled 2023–2027 0 0 – – Yes Previous years Cash-settled 2022–2027 1 0 2 3 No Equity-settled 2022–2030 -7 -5 – – Yes Total 16 15 2 3 1) Righ ts will be awarded following the end of the three-year performance period (2025–2027) over the delivery period (2028–2033). 2) Righ ts will be awarded in 2026 based on the performance in 2025. 3) Righ ts will be awarded following the end of the three-year performance period (2024–2026) over the delivery period (2027–2032). 4) Righ ts will be awarded following the end of the three-year performance period (2023–2025) over the delivery period (2026–2031). Nordea’s Long Term Incentive Plans Nordea operates Long Term Incentive Plans (LTIP) for the Chief Executive Officer (CEO), members of the Group Leadership Team (GLT) in the first line of defence and approximately 60 additional senior leaders each year. The LTIP has been in place in Nordea since 2020. On 29 January 2025 the Board decided to launch an LTIP (LTIP 2025–2027) to the same target group as in 2024. The LTIPs cover a performance period of three years, respectively, from when they were launched, and are fully equity-settled. The LTIPs deliver conditional shares to the participants, i.e. a promise for the participant to receive shares if certain performance criteria are met. The maximum number of shares allocated to the partic- ipants is decided when the LTIPs are launched and the final number of shares to be awarded to each participant will be determined after the end of the three-year perfor- mance period. No shares are awarded at the time when the LTIPs are launched and the conditional shares allo- cated to the participants. After the end of the performance period and once the Board has decided on the share award from the LTIP, deferral is applied to part of the share award for delivery annually in equal instalments over the following five-year period. Shares delivered to the participants are subject to a 12-month retention period during which the participants cannot sell them or perform any other transactions. The LTIPs are expensed in line with IFRS2 on a straight- line basis over the vesting period, as outlined on the fol- lowing pages covering each of the LTIPs. ===== SIDA 259 ===== Nordea Annual Report 2025 258 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. LTIP LTIP 2021–2023 LTIP 2022–2024 LTIP 2023–2025 LTIP 2024–2026 LTIP 2025–2027 Launch decision by the Board 31 March 2021 31 March 2022 1 February 2023 2 February 2024 29 January 2025 Performance period 1 January 2021–31 December 2023 1 January 2022–31 December 2024 1 January 2023–31 December 2025 1 January 2024–31 December 2026 1 January 2025–31 December 2027 Target group CEO and members of the GLT in first line of defence and up to 50 additional senior leaders CEO and members of the GLT in first line of defence and up to 50 additional senior leaders CEO and members of the GLT in first line of defence and approximately 50 senior leaders CEO and members of the GLT in first line of defence and approximately 50 senior leaders CEO and members of the GLT in first line of defence and approximately 60 senior leaders Maximum num ber of shares expected to be allocated at origination 1,397,500 1,535,000 1,769,622 1,748,731 1,847,120 Award date First quarter of 2024 First quarter of 2025 First quarter of 2026 First quarter of 2027 First quarter of 2028 Performance criteria Equally weighted: Absolute total shareholder return (aTSR) Relative total shareholder return (rTSR) Cumulative earnings per share (EPS) Equally weighted: Absolute total shareholder return (aTSR) Relative total shareholder return (rTSR) Cumulative earnings per share (EPS) Absolute total shareholder return (aTSR) - 20% Relative total shareholder return (rTSR) - 20% Cumulative earnings per share (EPS) - 40% ESG scorecard - 20% Absolute total shareholder return (aTSR) - 20% Relative total shareholder return (rTSR) - 20% Cumulative earnings per share (EPS) - 40% ESG scorecard - 20% Absolute total shareholder return (aTSR) - 20% Relative total shareholder return (rTSR) - 20% Cumulative earnings per share (EPS) - 40% ESG scorecard - 20% Service condition Employment is not terminated before the confirmation of the award Employment is not terminated before the confirmation of the award Employment is not terminated before the confirmation of the award Employment is not terminated before the confirmation of the award Employment is not terminated before the confirmation of the award Performance condition aTSR Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 13.10. No allotment for aTSR below EUR 7.60 Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 14.97. No allotment for aTSR below EUR 9.84 Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 15.62. No allotment for aTSR below EUR 10.27 Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 16.91. No allotment for aTSR below EUR 11.12 Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 16.60. No allotment for aTSR below EUR 10.91 Performance condition rTSR Growth in the Nordea share price (with dividends reinvested) compared with a group of nine peers Maximum allotment for rTSR if Nordea is first among peers. No allotment for rTSR if Nordea is sixth or lower among peers Growth in the Nordea share price (with dividends reinvested) compared with a group of five peers Maximum allotment for rTSR if Nordea is first among peers. No allotment for rTSR if Nordea is fifth or lower among peers Growth in the Nordea share price (with dividends reinvested) compared with a group of five peers Maximum allotment for rTSR if Nordea is first among peers. No allotment for rTSR if Nordea is fifth or lower among peers Growth in the Nordea share price (with dividends reinvested) compared with a group of five peers Maximum allotment for rTSR if Nordea is first among peers. No allotment for rTSR if Nordea is fifth or lower among peers Nordea’s total shareholder return relative to the STOXX Europe 600 banks index (gross return) in the period 2025–2027. Maximum allotment for rTSR if Nordea out-performs index by 20%. No allotment for rTSR if Nordea’s rTSR is below index Performance condition EPS Total earnings per share for the period 2021–2023 Maximum allotment for EPS above EUR 2.56. No allotment for EPS below EUR 2.00 Total earnings per share for the period 2022–2024 Maximum allotment for EPS above EUR 3.20. No allotment for EPS below EUR 2.40 Total earnings per share for the period 2023–2025 Maximum allotment for EPS above EUR 3.95. No allotment for EPS below EUR 3.11 Total earnings per share for the period 2024–2026 Maximum allotment for EPS above EUR 4.61. No allotment for EPS below EUR 3.63 Total earnings per share for the period 2025–2027 Maximum allotment for EPS above EUR 4.65. No allotment for EPS below EUR 3.65 LTIP LTIP 2021–2023 LTIP 2022–2024 LTIP 2023–2025 LTIP 2024–2026 LTIP 2025–2027 Performance condition ESG – – 7 equally weighted KPIs related to ESG targets. Maximum allotment if all 7 targets are reached. No allotment if no targets are reached 6 equally weighted KPIs related to ESG targets. Maximum allotment if all 6 targets are reached. No allotment if no targets are reached 6 equally weighted KPIs related to ESG targets. Maximum allotment if all 6 targets are reached. No allotment if no targets are reached Risk-adjustment underpin rTSR No payout occurs if Nordea average ROE (as reported) 2021–2023 is below 3% or absolute TSR 2021–2023 is not at least 0% No payout occurs if Nordea average ROE (as reported) 2022–2024 is below 3% or absolute TSR 2022–2024 is not at least 0% No payout occurs if Nordea average ROE (as reported) 2023–2025 is below 3% or absolute TSR 2023–2025 is not at least 0% No payout occurs if Nordea average ROE (as reported) 2024–2026 is below 3% or absolute TSR 2024–2026 is not at least 0% No payout occurs if Nordea average ROE (as reported) 2025–2027 is below 3% or absolute TSR 2025–2027 is not at least 0% Cap Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Delivery mechanism 40% of the potential share award is delivered to the participant in the second quarter of 2024. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2025 to the second quarter of 2029 40% of the potential share award is delivered to the participant in the second quarter of 2025. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2026 to the second quarter of 2030 40% of the potential share award is delivered to the participant in the second quarter of 2026. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2027 to the second quarter of 2031 40% of the potential share award is delivered to the participant in the second quarter of 2027. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2028 to the second quarter of 2032 40% of the potential share award is delivered to the participant in the second quarter of 2028. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2029 to the second quarter of 2033 Leaver rules Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Ex-ante adjustment mechanism If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled Ex-post adjustment mechanism Clawback can be applied in similar situations to ex-ante adjustments Clawback can be applied in similar situations to ex-ante adjustments Clawback can be applied in similar situations to ex-ante adjustments Clawback can be applied in similar situations to ex-ante adjustments Clawback can be applied in similar situations to ex-ante adjustments ===== SIDA 260 ===== Nordea Annual Report 2025 259 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. General conditions for the LTIPs The ex-ante and ex-post adjustment conditions stated in the overview above are assessed to not affect the valuation of the issued rights or the date when the rights are awarded as the likelihood is low and all participants are aware of these conditions from the start. General conditions LTIP 2021–2023 LTIP 2022–2024 LTIP 2023–2025 LTIP 2024–2026 LTIP 2025–2027 Ordinary share per right 1.0 1.0 1.0 1.0 1.0 Allocation date 31 Mar 2021 31 Mar 2022 1 Feb 2023 2 Feb 2024 29 Jan 2025 Vesting period 3 years 3 years 3 years 3 years 3 years Contractual life 8 years 8 years 8 years 8 years 8 years First day of access for the first portion Q2 2025 Q1 2026 Q1 2027 Q1 2028 Q1 2029 General conditions for calculating value at allocation date The fair value of the rights is calculated using a Monte Carlo simulation (rTSR and aTSR) and the Black & Scholes formula (EPS) based on the parameters presented below. The tables have been updated to reflect the LTIP structure and the actual outstanding number of conditional shares or shares that are awarded after the end of the perfor- mance period. General conditions LTIP 2021–2023 LTIP 2022–2024 LTIP 2023–2025 LTIP 2024–2026 LTIP 2025–2027 Weighted average share price at allocation date, EUR 8.41 9.38 10.62 11.33 11.58 Exercise price, EUR – – – – – Expected volatility 31.3%1 33.3%1 33.3%1 27.1%1 21.4%1 Award life See above See above See above See above See above Expected dividends 6.6% 4.2% 6.3% 8.1% 7.9% Risk-free interest rate 0.0% 0.28% 2.49% 2.80% 2.80% 1) The expected volatility is based on Nordea’s historical daily share price volatility over a period of three years. LTIP 2021–2023 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2024 Q2 2025 Q2 2026 Q2 2027 Q2 2028 Q2 2029 Max number of shares at origination 559,000 167,700 167,700 167,700 167,700 167,700 Number of shares awarded 472,323 139,099 139,099 139,099 139,099 139,103 Award life years 3 4 5 6 7 8 aTSR 2.90 2.77 2.64 2.52 2.41 2.30 rTSR 2.38 2.27 2.16 2.06 1.97 1.88 EPS 6.45 6.16 5.89 5.62 5.37 5.13 aTSR rTSR EPS Conditional rights 2025 2024 2025 2024 2025 2024 Outstanding at beginning of year 274,226 431,667 274,226 431,667 274,226 431,667 Allotted -46,366 -157,441 -46,366 -157,441 -46,367 -157,441 Expired – – – – – – Forfeited -42,393 – -42,393 – -42,393 – Outstanding at end of year 185,467 274,226 185,467 274,226 185,466 274,226 LTIP 2022–2024 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2025 Q2 2026 Q2 2027 Q2 2028 Q2 2029 Q2 2030 Max number of shares at origination 614,000 184,200 184,200 184,200 184,200 184,200 Number of shares awarded 307,626 92,287 92,287 92,287 92,287 92,291 Award life years 3 4 5 6 7 8 aTSR 3.11 2.98 2.86 2.74 2.62 2.52 rTSR 2.58 2.47 2.37 2.27 2.17 2.08 EPS 7.23 6.93 6.65 6.38 6.12 5.87 aTSR rTSR EPS Conditional rights 2025 2024 2025 2024 2025 2024 Outstanding at beginning of year 470,556 470,556 470,556 470,556 470,556 470,556 Allotted -102,542 – -102,542 – -102,542 – Expired -214,201 – -214,201 – -214,201 – Forfeited – – – – – – Outstanding at end of year 153,813 470,556 153,813 470,556 153,813 470,556 ===== SIDA 261 ===== Nordea Annual Report 2025 260 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. LTIP 2023–2025 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2026 Q2 2027 Q2 2028 Q2 2029 Q2 2030 Q2 2031 Max number of shares at origination 707,849 212,354 212,354 212,354 212,354 212,357 Max number of shares outstanding 568,165 170,449 170,449 170,449 170,449 170,453 Award life years 3 4 5 6 7 8 aTSR 4.25 3.98 3.73 3.49 3.27 3.07 rTSR 3.36 3.15 2.95 2.76 2.59 2.43 EPS 7.73 7.26 6.81 6.40 6.01 5.64 ESG 7.73 7.26 6.81 6.40 6.01 5.64 aTSR rTSR EPS ESG Conditional rights 2025 2024 2025 2024 2025 2024 2025 2024 Outstanding at beginning of year 335,924 336,924 335,924 336,924 671,849 673,849 335,924 336,924 Expired -46,674 – -46,674 – -93,350 – -46,674 – Forfeited -5,167 -1,000 -5,167 -1,000 -10,334 -2,000 -5,167 -1,000 Outstanding at end of year 284,083 335,924 284,083 335,924 568,165 671,849 284,083 335,924 LTIP 2024–2026 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2027 Q2 2028 Q2 2029 Q2 2030 Q2 2031 Q2 2032 Max number of shares at origination 699,491 209,848 209,848 209,848 209,848 209,848 Max numbers of shares outstanding 573,479 172,043 172,043 172,043 172,043 172,048 Award life years 3 4 5 6 7 8 aTSR 3.92 3.60 3.31 3.04 2.80 2.57 rTSR 3.87 3.56 3.27 3.01 2.76 2.54 EPS 3.99 3.68 3.39 3.13 2.89 2.66 ESG 3.99 3.68 3.39 3.13 2.89 2.66 aTSR rTSR EPS ESG Conditional rights 2025 2024 2025 2024 2025 2024 2025 2024 Outstanding at beginning of year 336,484 – 336,484 – 672,969 – 336,484 – Allocated – 349,746 – 349,746 – 699,493 – 349,746 Expired – – – – – – – – Forfeited -49,744 -13,262 -49,744 -13,262 -99,490 -26,524 -49,744 -13,262 Outstanding at end of year 286,740 336,484 286,740 336,484 573,479 672,969 286,740 336,484 ===== SIDA 262 ===== Nordea Annual Report 2025 261 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. LTIP 2025–2027 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2028 Q2 2029 Q2 2030 Q2 2031 Q2 2032 Q2 2033 Max number of shares at origination 738,848 221,654 221,654 221,654 221,654 221,654 Max number of shares outstanding 656,959 197,087 197,087 197,087 197,087 197,090 Award life years 3.00 4.00 5.00 6.00 7.00 8.00 aTSR 4.12 3.79 3.49 3.21 2.96 2.73 rTSR 3.40 3.13 2.89 2.66 2.45 2.25 EPS 8.39 7.75 7.16 6.62 6.11 5.65 ESG 8.39 7.75 7.16 6.62 6.11 5.65 Conditional rights aTSR 2025 rTSR 2025 EPS 2025 ESG 2025 Allocated 348,768 348,768 697,536 348,768 Forfeited -20,289 -20,289 -40,576 -20,289 Outstanding at end of year 328,479 328,479 656,960 328,479 Long Term Incentive Plan 2020–2022 The LTIP 2020–2022 was fully expensed in 2024. 60% of the awarded shares were deferred in 2023 with ex-post risk adjustment clauses as per regulatory requirements, with annual vesting pro rata over the five-year period. The last portion vests in 2028. The conditional shares that did not vest expired. The total number of outstanding shares from the LTIP 2020–2022 end of year is 194,929 (2024: 259,894). Expired Long Term Incentive Plans – 2012 The LTIP 2012 was fully expensed in May 2015. All shares in the LTIP 2012 are fully vested and consequently not condi- tional. 60% of the vested shares were deferred with forfei- ture clauses in line with regulatory requirements and allotted over a five-year period, for the LTIP 2012 starting in May 2015. The share balance outstanding is 3,015 matching shares, 9,045 performance shares I and 3,015 performance shares II at the end of the year. Share-based variable remuneration plans other than LTIP plans This section covers the variable share-based plans where TSR indexation (cash-settled plan up until 2018) and shares (equity-settled plans as from 2019) are used for deferral/retention. For the 2025 performance year, the plans are classified as the Nordea Incentive Plan (NIP) and bonus schemes (bonus). The plans are annual plans with a service condition for the respective years and are fully expensed in the year when they are earned (one-year vesting period). The indi- vidual allocations are awarded at the beginning of the subsequent year. The aim of the NIP is to strengthen Nordea’s capability to recruit, motivate and retain the GLT, senior leaders as well as selected people leaders and specialists, and to reward strong performance. The NIP 2025 rewards perfor- mance meeting agreed predetermined targets on Group, business unit and individual level. The effect on the long- term results is to be considered when determining the tar- gets. NIP awards will not exceed the fixed salary and are subject to deferral for material risk takers. It includes ex-ante and ex-post risk adjustment clauses and retention applies in line with relevant remuneration regulations. In 2025 bonus was offered only to selected groups of employees in specific business areas or units as approved by the Board, e.g. in Large Corporates & Institutions, Nordea Asset Management, Nordea Funds and within Treasury in Group Finance. The aim is to ensure strong performance and maintain cost flexibility for Nordea. Individual awards are determined based on detailed per- formance assessments covering a range of financial and non-financial goals. 2025 bonus awards will be paid in cash. For material risk takers, awards are partly delivered in shares with subsequent retention. Parts of the bonus awards for material risk takers are subject to a four- to five-year pro rata deferral period with forfeiture conditions applying during the deferral period. Deferrals from the NIP, Executive Incentive Programme (EIP), VSP and bonus plans not yet delivered to the partic- ipants as of 31 December 2025 are summarised in the fol- lowing tables, including deferrals from the Leaders of Transformation Variable plan (offered in 2018–2019) and deferrals stemming from compensation for contracts in previous employments (buy-outs). Such agreements can be offered only in exceptional cases, in the context of hir- ing new staff, limited to the first year of employment. ===== SIDA 263 ===== Nordea Annual Report 2025 262 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. Share-linked deferrals (cash-settled) The table below shows the remaining liabilities for the cash-settled share-based plans, mainly used 2014–2018. EURm 2025 2024 Opening balance 3 6 Deferred/earned during the year – 0 TSR indexation during the year 1 0 Payments during the year -2 -3 Translation differences – 0 Closing balance 2 3 The closing balances are expected to be settled the following years: EURm 2025 2024 2025 – 2 2026 1 1 2027 1 0 2028 – 0 2029 – 0 2030 – 0 Total 2 3 2019–2024 share-linked deferrals (equity-settled) Starting from the 2019 performance year, share-based var- iable pay plans are partly in the form of cash and partly in the form of Nordea shares, which makes the portion paid in Nordea shares an equity-settled share-based plan. In the Nordea Incentive Plan (NIP) 2024, EUR 32m was expensed for variable remuneration to be paid in cash and EUR 11m to be paid in shares. In 2025 these were adjusted to EUR 9m for the portion delivered in shares and an addi- tional expense of EUR 6m in cash, while the bonus plans added an additional equity-settled expense of EUR 7m. In 2025 2,368,139 shares in Nordea were allotted to the par- ticipants in these plans, corresponding to EUR 27m based on the share price at the award date. In total 2,628,957 shares were awarded to the participants. These shares had a fair value of EUR 30m based on the share price at the award date. The awarding of shares in the plans for 2025 is decided during spring 2026 and thus not included in the below tables but in full recognised as an expense in the income statement in 2025. Number of shares 2025 2024 Outstanding at beginning of year 3,779,376 3,090,368 Awarded1 2,628,957 3,246,800 Forfeited – – Allotted2 -2,368,139 -2,557,792 Outstanding at end of year 4,040,194 3,779,376 - of which currently exercisable – – 1) Awarded rights in 2025 are the number of shares from 2024 variable pay plans awarded in 2025. Allotment of rights has been deferred following retention requirements by the Nordic FSAs. There is no exercise price for the deferred rights. 2) Allotted rights are subject to a one-year retention period after allotment to par- ticipants. Includes shares that have been allotted to participants but withheld to cover income taxes or social charges. The outstanding rights are expected to be allotted the following years: 2025 2024 2025 – 1,217,987 2026 1,434,659 1,096,049 2027 1,080,339 747,347 2028 849,278 516,986 2029 527,058 201,007 2030 148,860 – Total 4,040,194 3,779,376 G8.4 Key management personnel remuneration Accounting policies For information about the accounting policies see Note G8.1 “Fixed and variable salaries”, Note G8.2 “Pensions” and Note G8.3 “Share-based payment plans”. For definition of key management personnel see Note G10.4 “Related party transactions”. Board remuneration The 2025 Annual General Meeting (AGM) decided on annual remuneration for the Board of Directors (Board), for the Chair amounting to EUR 400,000, for the Vice Chair EUR 180,000 and for other members EUR 112,000. Annual remuneration for Board committee work on the Board Remuneration and People Committee amounts to EUR 54,500 for the committee chair and EUR 31,000 for the other members. For all other committee chairs the annual remuneration paid for Board committee work amounts to EUR 71,500 and for other members EUR 35,500. In addition, a meeting fee of EUR 1,000 will be paid for each Board meeting and a meeting fee of EUR 500 will be paid for each Board committee meeting and any meeting in subcommittees established by the Board. No remuneration is paid to members who are employed by the Nordea Group. In addition, Nordea covers or reimburses the members of the Board all costs and expenses related to or arising from the Board membership. Any benefits are included at taxable values. There are no commitments for severance pay, pension or other remuneration for the members of the Board at 31 December 2025. No Board member earns variable remuneration and employee representatives are not included in the table below. Remuneration of the Board of Directors EUR 2025 2024 Chair of the Board: Sir Stephen Hester 452,875 413,875 Vice Chair of the Board: Lene Skole 222,000 203,875 Other Board members: Arja Talma 187,750 172,125 Birger Steen1 – 43,125 John Maltby 227,500 211,250 Jonas Synnergren 155,500 142,375 Kjersti Wiklund 229,500 211,250 Lars Rohde2 170,313 107,625 Per Strömberg 187,250 172,125 Petra von Hoeken 229,500 211,250 Risto Murto 155,500 142,375 Total 2,217,688 2,031,250 1) Resigned as a member of the Board as from the 2024 AGM. 2) New member of the Board as from the 2024 AGM. ===== SIDA 264 ===== Nordea Annual Report 2025 263 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.4 Key management personnel remuneration, cont. Remuneration of the Chief Executive Officer, the Deputy Managing Director and the Group Leadership Team The Board Remuneration and People Committee prepares changes in the remuneration package for the Chief Executive Officer (CEO), the Deputy Managing Director and the other members of the Group Leadership Team (GLT), for resolution by the Board. This includes the fixed remuneration, the outcome of the 2025 Nordea Incentive Plan (NIP), the allocation of conditional shares under the Long Term Incentive Plan (LTIP) and subsequent awarding of shares from the LTIP, as well as other changes. See Note G8.3 “Share-based payment plans” for further details on the Short Term Incentive Plans (STIPs) (NIP/ EIP) and the LTIPs. The presentation of remuneration used in the Remuneration Report for Governing Bodies is different from the presentation and accounting policies under IFRS applied in the Annual Report, especially related to the Long Term Incentive Plan. Fixed remuneration The fixed salary is paid in local currencies and converted into euro based on the average exchange rate each year. The fixed salary includes holiday pay and car allowance where applicable. Benefits primarily include car benefits, tax consultation and housing. Benefits are included at taxable values after salary deductions (if any). The pension expense is related to pension premiums paid under defined contribution plans and pension rights earned during the year under defined benefit plans (“Current service cost” as well as “Past service cost and settlements” as defined in IAS 19). EUR 2,694,876 (EUR 2,550,694) of the total pension expense relates to defined contribution plans, correspond- ing to 100.0% (98.4%). Remuneration of the Chief Executive Officer, the Deputy Managing Director and the Group Leadership Team Fixed remuneration Variable remuneration Fixed salary Pension expense (DCP & DBP) Benefits Total fixed remuneration STIP (NIP) LTIP Total variable remuneration Total remuneration EUR 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 20251 20242, 2025 2024 2025 2024 Chief Executive Officer: Frank Vang-Jensen 1,617,868 1,611,650 489,387 460,482 181,309 189,813 2,288,564 2,261,945 914,698 1,002,281 720,746 934,207 1,635,444 1,936,488 3,924,008 4,198,433 Deputy Managing Director: Jussi Koskinen 607,964 595,109 229,929 223,221 23,576 19,062 861,469 837,392 345,550 396,327 270,636 331,775 616,186 728,102 1,477,655 1,565,494 Group Leadership Team: 11 (10) individuals excluding Chief Executive Officer and Deputy Managing Director 8,299,728 7,047,978 1,975,560 1,907,841 219,934 201,505 10,495,222 9,157,324 4,429,578 4,467,169 2,082,508 3,324,737 6,512,086 7,791,906 17,007,308 16,949,230 Total3 10,525,560 9,254,737 2,694,876 2,591,544 424,819 410,380 13,645,255 12,256,661 5,689,826 5,865,777 3,073,890 4,590,719 8,763,716 10,456,496 22,408,971 22,713,157 1) Defined as the expense calculated under IFRS 2 for LTIP 2022–2024, LTIP 2023–2025, LTIP 2024–2026, LTIP 2025–2027. 2) Defined as the expense calculated under IFRS 2 for LTIP 2020–2022, LTIP 2021–2023, LTIP 2022–2024, LTIP 2023–2025, LTIP 2024–2026. 3) Committed and expensed remuneration of EUR 1,196,728 payable 2025-2027 to one GLT member leaving Nordea in 2025 is not included in the table above (in 2024 EUR 4,248,759 for two members). Variable remuneration The STIP 2025 (NIP) award for the CEO, the Deputy Managing Director and the GLT is based on specific goals and targets and is capped at maximum 75% of the fixed base salary, except for the Chief Risk Officer and the Chief Compliance Officer, who have a cap of 100% as these roles do not participate in the LTIP. 40% of the NIP 2025 award will be paid out in 2026. The remaining 60% will be paid annually on a pro rata basis over five years with 12% vesting each year. 50% of the 2025 NIP award is delivered in Nordea shares (excluding divi- dends) at each transfer event. The shares are subject to retention for 12 months when the deferral period ends. The award from the NIP 2025 has been expensed in full in 2025. Further, the CEO, the Deputy Managing Director and the GLT members participate in the share-based LTIPs as decided by the Board and launched in accordance with the Remuneration Policy for Governing Bodies adopted by an advisory vote at Nordea’s 2020 AGM and 2024 AGM and applicable until the 2028 AGM. Remuneration of the Chief Executive Officer Frank Vang-Jensen was appointed CEO on 5 September 2019. The annual fixed base salary (not including holiday pay etc.) for the CEO amounts to EUR 1,551,928 as from 1 January 2025. The CEO is covered by a defined contribution plan with a pension contribution amounting to 8.5% of the fixed base salary in addition to the Finnish statutory pension scheme. According to the statutory pension rules, the part of the NIP 2025 for the GLT outcome paid in cash in 2026 must be included in pensionable income. Benefits primarily included car, housing, security and travelling-related benefits as well as cross-border tax compliance advice, amounting to EUR 181,309. The NIP 2025 was based on specific targets and capped at a maximum of 75% of the fixed base salary. For 2025 the award from the NIP amounted to EUR 914,698. For 2025 the IFRS 2 expense amounted to EUR 50,048 for the LTIP 2022–2024, EUR 282,478 for the LTIP 2023– 2025, EUR 202,886 for the LTIP 2024–2026 and EUR 185,334 for the LTIP 2025–2027. The CEO must hold a significant number of the shares awarded under the LTIPs until the total value of share- holdings corresponds to 100% of the CEO’s annual gross salary. Such shares must be held until the CEO steps down. The total expensed remuneration for 2025 amounted to EUR 3,924,008. Remuneration of the Deputy Managing Director Jussi Koskinen was appointed Deputy Managing Director on 10 September 2019. The annual fixed base salary (not including holiday pay etc.) for the Deputy Managing Director amounts to EUR 604,799 as from 1 January 2025. The Deputy Managing Director is covered by a defined contribution plan with a pension contribution amounting to 8.5% of the fixed base salary in addition to the Finnish statutory pension scheme. According to the statutory pen- sion rules, the part of the NIP 2025 for the GLT outcome paid in cash in 2026 must be included in pensionable income. The benefits for 2025 amounted to EUR 23,576 and pri- marily included car benefits. ===== SIDA 265 ===== Nordea Annual Report 2025 264 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.4 Key management personnel remuneration, cont. The NIP 2025 was based on specific targets and could amount to a maximum of 75% of the fixed base salary. For 2025 the award from the NIP amounted to EUR 345,550. For 2025 the IFRS 2 expense amounted to EUR 25,024 for the LTIP 2022–2024, EUR 108,258 for the LTIP 2023– 2025, EUR 73,794 for the LTIP 2024–2026 and EUR 63,560 for the LTIP 2025–2027. The Deputy Managing Director must hold a significant number of the shares awarded under the LTIPs until the total value of shareholdings corresponds to 100% of the Deputy Managing Director’s annual gross salary. Such shares must be held until the Deputy Managing Director steps down from the Group Leadership Team position. The total earned remuneration for 2025 amounted to EUR 1,477,655. Remuneration of the Group Leadership Team Remuneration for other GLT members is included for the period they have been appointed and eligible for the NIP 2025 and LTIPs. On 1 January 2025 a new GLT member was appointed. Additionally, two new GLT members were appointed on 1 February 2025. Two GLT members stepped down in 2024 and related committed remuneration was expensed and disclosed in 2024. On 13 October 2025 one new GLT mem- ber was appointed and one GLT member stepped down. No sign-on or buy-out payments were agreed in 2025. The NIP 2025 was based on specific targets and capped at a maximum of 75% of the fixed base salary for the GLT members offered the LTIP 2025–2027 and 100% for other members. For 2025 the award from the NIP amounted to EUR 4,429,578. For 2025 the IFRS 2 expense amounted to EUR 158,485 for the LTIP 2022–2024, EUR 764,055 for the LTIP 2023– 2025, EUR 505,268 for the LTIP 2024–2026 and EUR 654,700 for the LTIP 2025–2027. The GLT members must hold a significant number of the shares awarded under the LTIPs until the total value of shareholdings corresponds to 100% of the GLT member’s annual gross salary. Such shares must be held until the GLT member steps down from the GLT position. The pension agreements for the 11 GLT members vary according to local country practices. Pension agreements are defined contribution plans, for one member combined with a paid-up defined benefit pension plan. As of 31 December 2025 two members had pension schemes in accordance with the Swedish collective agree- ment, BTP1 (defined contribution plan), with complement- ing defined contribution plans on top of the collective agreement. The pension contributions totalled 30% of their fixed salaries Two members had a defined contribution plan, in accordance with local practices in Denmark. The pension contribution totalled 30% of the fixed base salary. Five members were covered by the Finnish statutory pension scheme and in addition had a defined contribution plan corresponding to 8.5% of their fixed base salaries. Two members did not have a pension scheme agree- ment paid by Nordea. Deferred variable remuneration in Nordea shares Part of the award from the EIP 2020, EIP 2021, NIP 2022, NIP 2023, NIP 2024, LTIP 2020–2022, LTIP 2021–2023, LTIP 2022–2024 and buy-outs for the GLT has been deferred and will be paid in the future by delivering Nordea shares. Any Nordea shares to be awarded from the NIP 2025 as well as the LTIP 2023–2025 conditional share award as of 31 December 2025 are not included in the table below. Nordea shares – awarded and deferred 2025 2024 Chief Executive Officer: Frank Vang-Jensen 234,202 222,057 Deputy Managing Director: Jussi Koskinen 81,465 79,189 Group Leadership Team: 11 (10) individuals excl. Chief Executive Officer and Deputy Managing Director: 780,381 843,394 Total 1,096,048 1,144,640 Former Chief Executive Officer: Casper von Koskull – 10,242 Former Deputy Chief Executive Officer: Torsten Hagen Jørgensen – 6,499 Total 1,096,048 1,161,381 Defined benefit pension obligations The pension plans are funded, meaning that the pension plan obligations are backed by plan assets with the fair value generally being at a level similar to that of the obligations. The pension obligations (value of defined benefit plan liabilities) are calculated in accordance with IAS 19. For further details see Note G8.2 “Pensions”. There was no Defined benefit pension costs related to key management personnel in 2025 (EUR 0m). The pension obligations in the below table reflect the valuation under IAS 19 as of 31 December 2025 and 2024, respectively. The decrease compared with 2024 is mainly due to two GLT members have stepped down, pension payments to retired executives during the year, changes in the discount rates used in the measurement of the obliga- tions at the end of 2025. There are no defined benefit pension obligations towards the CEO and the Deputy Managing Director. Defined benefit pension obligations EUR 2025 2024 Group Leadership Team: 1 (3) individual(s) in Sweden 18,058 986,796 Former Chairman of the Board, former CEOs and Deputy CEOs: Lars G Nordström 224,898 234,610 Casper von Koskull 364,147 309,118 Total 607,102 1,530,524 Notice period and severance pay In accordance with the service contract, the CEO has a notice period of 12 months and Nordea a notice period of 12 months. The CEO is subject to payment of severance equal to 12 months’ salary, to be reduced by any salary received from other employment during these 12 months. Further, non-competition clauses apply. The Deputy Managing Director and 11 GLT members have a notice period of 6 months and Nordea a notice period of 12 months. Severance pay of up to 12 months’ salary is provided and will be reduced by any salary received from other employment during the severance pay period. Further, non-competition clauses apply. In 2025, in relation to one member leaving the GLT, remuneration payments during notice and non-compete periods in 2025-2027 were committed. The provision rec- ognised in 2025 amounted to EUR 1.2m (EUR 4.2m) and has been excluded from the tables in this note. Indemnification For indemnification of members of the Board and mem- bers of the GLT, see Note G7.1 “Contingent liabilities”. ===== SIDA 266 ===== Nordea Annual Report 2025 265 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.5 Gender distribution and number of employees Gender distribution In the parent company’s Board of Directors, 60% (60%) of the AGM elected Board members are men and 40% (40%) are women. In the Board of Directors of Nordea Group companies, 53% (62%) are men and 47% (38%) are women. The corresponding numbers for other executives are 53% (53%) men and 47% (47%) women. Internal boards mainly consist of Nordea´s management, employee representatives excluded. Average number of employees, full-time equivalents Total Of which women 2025 2024 2025 2024 Denmark 6,603 6,808 2,788 2,897 Sweden 6,446 6,430 3,236 3,263 Finland 6,331 6,378 3,568 3,637 Poland 5,688 5,599 2,775 2,746 Norway 3,150 2,971 1,479 1,400 Estonia 1,053 1,096 739 770 Luxembourg 126 138 55 60 United States 88 93 43 49 United Kingdom 64 64 21 21 China 26 26 15 14 Germany 11 12 2 3 Portugal 118 101 56 44 Italy 10 9 1 1 Spain 4 4 2 2 Switzerland 8 7 2 1 France 4 2 1 0 Singapore 7 6 4 5 Belgium 3 2 1 1 Chile 2 2 0 0 Austria 0 1 0 0 Total average 29,742 29,749 14,788 14,914 Total number of employees (FTEs), end of period 28,989 30,157 ===== SIDA 267 ===== Nordea Annual Report 2025 266 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9 Scope of consolidation G9.1 Consolidated entities Accounting policies The consolidated financial statements include the accounts of the parent company, Nordea Bank Abp and those entities that the parent company controls. Control exists when Nordea is exposed to variability in returns from its investments in another entity and has the ability to affect those returns through its power over the other entity. Control is generally achieved when the parent company owns, directly or indirectly through group undertakings, more than 50% of the voting rights. For entities where voting rights do not give control, see the section “Structured entities” below. All group undertakings are consolidated using the acquisition method. Under the acquisition method, the acquisition is regarded as a transaction whereby the parent company indirectly acquires the assets of the group undertaking and assumes its liabilities and contingent liabilities. The group’s acquisition cost is established using a purchase price allocation analysis. In such analysis, the cost of the business combination is the aggregate of the fair value, at the date of exchange, of assets given, liabilities incurred or assumed and equity instruments issued by the acquirer in exchange for the identifiable net assets acquired. Costs directly attributable to the business combination are expensed. As at the acquisition date Nordea recognises the identifiable assets acquired and the liabilities assumed at their acquisition date fair values. For each business combination Nordea measures the non-controlling interests in the acquired busi- ness either at fair value or at its proportionate share of the acquired identifiable net assets. When the aggregate of the consideration trans- ferred in a business combination and the amount recognised for non-controlling interests exceeds the net fair value of the identifiable assets, liabilities and contingent liabilities, the excess is reported as good- will. If the difference is negative, such difference is recognised immediately in the income statement. Equity and net income attributable to non-con- trolling interests are separately disclosed on the bal- ance sheet as well as in the income statement and the statement of comprehensive income. Intra-group transactions and balances between the consolidated group undertakings are eliminated. The group undertakings are included in the con- solidated accounts as from the date on which con- trol is transferred to Nordea and are no longer con- solidated as from the date on which control ceases. In the consolidation process the reporting of the group undertakings is adjusted to ensure consist- ency with the IFRS principles applied by Nordea. Critical judgements and estimation uncertainty One decisive variable when assessing if Nordea con- trols another entity is whether Nordea is exposed to variability in returns from the investment. For struc- tured entities where voting rights are not the domi- nant factor when determining control, critical judge- ment has to be exercised when defining when Nordea is exposed to significant variability in returns. Nordea’s critical judgement is that Nordea is normally exposed to variability in returns when Nordea receives more than 30% of the return pro- duced by the structured entity. This is only relevant for structured entities if Nordea is also the invest- ment manager and thus has influence over the return produced by the structured entity. Moreover, judgement relating to control is whether Nordea acts as an agent or as a principal. For investments relating to unit-linked and other contracts where the policyholder/depositor decides both the amount and in which assets to invest, Nordea is considered to act as an agent, and such holdings are thus not included in the control assessment. Judgement also has to be exercised when assess- ing if a holding of a significant, but less than a majority, share of voting rights constitute so-called de facto control and to what extent potential voting rights need to be considered in the control assess- ment. Nordea’s assessment is that Nordea does not currently control any entities where the share of vot- ing rights is below 50%. Parent company including branches, major directly owned subsidiaries and major subsidiaries of the directly owned companies Company Domicile Shareholding, % Voting power of holding, % Nordea Bank Abp Helsinki N/A N/A Denmark branch Copenhagen N/A N/A Estonia branch Tallinn N/A N/A London branch London N/A N/A New York branch New York N/A N/A Norway branch Oslo N/A N/A Poland branch Łódź N/A N/A Shanghai branch Shanghai N/A N/A Sweden branch Stockholm N/A N/A Nordea Kredit Realkreditaktieselskab Copenhagen 100.0 100.0 Nordea Hypotek AB (publ) Stockholm 100.0 100.0 Nordea Eiendomskreditt AS Oslo 100.0 100.0 Nordea Mortgage Bank Plc Helsinki 100.0 100.0 Nordea Finance Finland Ltd Helsinki 100.0 100.0 Nordea Finans Danmark A/S Høje Taastrup 100.0 100.0 Nordea Finans Sverige AB (publ) Stockholm 100.0 100.0 Nordea Finans Norge AS Oslo 100.0 100.0 Nordea Funds Ltd Helsinki 100.0 100.0 Nordea Asset Management Holding AB Stockholm 100.0 100.0 Nordea Investment Funds S.A. Luxembourg 100.0 100.0 Nordea Investment Management AB Stockholm 100.0 100.0 Nordea Life Holding AB Stockholm 100.0 100.0 Nordea Pension, Livsforsikringsselskab A/S Copenhagen 100.0 100.0 Nordea Life Assurance Finland Ltd Helsinki 100.0 100.0 Nordea Liv Forsikring AS Bergen 100.0 100.0 Nordea Livförsäkring Sverige AB (publ) Stockholm 100.0 100.0 ===== SIDA 268 ===== Nordea Annual Report 2025 267 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9.1 Consolidated entities, cont. There are different types of restrictions on how Nordea can access and transfer assets within the Group. Dividends are used to transfer excess capital from the parent’s subsidiaries to the parent company, Nordea Bank Abp. The specific dividend amount is determined for each legal entity based on distributable funds, capital adequacy regulations and ratios, capital and business planning, local tax considerations and Group-internal policies. Regulatory restrictions, both general and local, on dividends as well as projected changes in the entities’ capital requirements and risk exposure amounts are incorporated into the anal- ysis regarding the dividend decisions. The CRR requires credit institutions to hold liquid assets, the sum of the values of which covers the liquidity outflows less the liquidity inflows under stressed condi- tions so as to ensure that institutions maintain levels of liquidity buffers which are adequate. There are also local liquidity requirements that restrict the movement of funds between legal entities. The Group has pledged assets to collateralise its obliga- tions under repurchase agreements, securities financing transactions, collateralised loan obligations and for mar- gining purposes of OTC derivative liabilities. Further infor- mation is disclosed in Note G7.3 “Assets pledged”. For banks under resolution, which was not applicable to Nordea at the balance sheet date, there are potential restrictions as the regulators have far-reaching resolution tools they can impose if deemed necessary. Statutory, contractual or regulatory requirements as well as protective rights of non-controlling interests might restrict the ability of the Group to access and transfer assets freely to or from other entities within the Group and to settle liabilities of the Group. Since the Group did not have any material non-controlling interests at the balance sheet date, any protective rights associated with these did not give rise to significant restrictions. G9.2 Currency translation of foreign entities/branches Accounting policies The consolidated financial statements are presented in euro (EUR). When translating the financial state- ments of foreign entities and branches into EUR from their functional currency, the assets and liabili- ties of foreign entities and branches have been translated at the closing rates, while items in the income statement and the statement of comprehen- sive income are translated at the average exchange rate for the year. The average exchange rate is calcu- lated based on daily exchange rates divided by the number of business days in the period. Translation differences are recognised in other comprehensive income and are accumulated in the translation reserve in equity. Goodwill and fair value adjustments arising from the acquisition of foreign operations are treated as items in the same functional currency as the cash-generating unit to which they belong and are also translated at the closing rate. Any remaining equity in foreign branches is con- verted at the closing rates with translation differ- ences recognised in other comprehensive income. On the disposal of a foreign operation, the cumu- lative amount for the exchange difference relating to that foreign operation, recognised in other compre- hensive income and accumulated in the translation reserve in equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognised. G9.3 Investments in associated undertakings and joint ventures Accounting policies Associated undertakings are undertakings where the share of voting rights is between 20% and 50% and/or where Nordea has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Joint ventures are entities where Nordea has joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties shar- ing control. Associated companies and joint ventures are included in the consolidated financial statements using the equity method. At initial recognition the investment is recognised at acquisition cost. Fair value is allocated to the identifiable assets, liabilities and contingent liabilities of associated undertakings and joint ventures. Any difference between Nordea’s share of the fair value of the acquired identifiable net assets and the purchase price is goodwill or neg- ative goodwill. Goodwill is included in the carrying amount of the associated undertakings and joint ventures. Profit from companies accounted for under the equity method is defined as the post-acquisition change in Nordea’s share of net assets in associated undertakings and joint ventures. Nordea’s share of items accounted for in other comprehensive income in associated undertakings and joint ventures is accounted for in other comprehensive income in Nordea. Profit from companies accounted for under the equity method is reported post taxes in the income statement. Consequently, the tax expense related to this profit is excluded from the income tax expense for Nordea. Dividends received are accounted for as a reduction in the carrying amount. If observable indicators (loss events) indicate that an associated undertaking or a joint venture is impaired, an impairment test is performed to assess whether there is objective evidence of impairment. The carrying amount of the investment in the associ- ated undertaking or joint venture is compared with the recoverable amount (higher of value in use and fair value less cost to sell) and the carrying amount is written down to the recoverable amount if required. Impairment of investments in associated undertakings and joint ventures is classified as “Profit from associated undertakings and joint ven- tures accounted for under the equity method” in the income statement. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. Nordea is not generally involved in any sale or contribution of assets to or from associated under- takings or joint ventures, but if such transactions occur, Nordea’s share of any profit recognised in the associate or joint venture is eliminated. Other trans- actions between Nordea and its associated under- takings or joint ventures are not eliminated. For some associated undertakings and joint ven- tures not individually significant, the change in Nordea’s share of the net assets is based on the external reporting of the associated undertakings and joint ventures and affects the financial state- ments of Nordea in the period in which the informa- tion is available. The reporting from the associated undertakings and joint ventures is, if applicable, adjusted to comply with Nordea’s accounting policies. Some investments within Nordea’s investment activities in Treasury and Nordea Life & Pension (classified as part of Nordea’s venture capital organ- isation) are measured at fair value in accordance with the rules set out in IAS 28 and IFRS 9. ===== SIDA 269 ===== Nordea Annual Report 2025 268 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9.3 Investments in associated undertakings and joint ventures, cont. Investments in associated undertakings and joint ventures EURm 31 Dec 2025 31 Dec 2024 Acquisition value at beginning of year 527 541 Acquisitions 48 14 Sales1 -121 – Share in earnings 6 8 Share of other comprehensive income -1 4 Share in net result from items at fair value 35 18 Dividend received -5 -33 Reclassifications -4 -16 Translation differences 3 -9 Acquisition value at end of year 488 527 Accumulated impairment charges at beginning of year -45 -60 Accumulated impairment charges on sales1 23 – Impairment charges2 -8 -2 Reversed impairment charges2 – 4 Reclassifications 4 12 Translation differences 0 1 Accumulated impairment charges at end of year -26 -45 Total 462 482 1) Refers to the sale of Eksportfinans ASA. 2) Refers to Finansinfrastruktur i Sverige AB (former P27). Nordea’s share of the associated undertakings’ aggre- gated balance sheets and income statements can be summarised as follows: EURm 31 Dec 2025 31 Dec 2024 Total assets 767 860 Net profit for the year 42 26 Other comprehensive income -1 4 Total comprehensive income 41 30 Nordea’s share of the joint ventures’ aggregated balance sheets and income statements can be summarised as follows: EURm 31 Dec 2025 31 Dec 2024 Total assets 7 8 Net profit for the year -1 0 Total comprehensive income -1 0 For information about investments in group undertakings and companies for which Nordea has unlimited responsi- bility, see Note G9.1 “Consolidated entities”. Associated undertakings and joint ventures Registration number Domicile Carrying amount 2025, EURm Carrying amount 2024, EURm Voting power of holding % Ownership % Udviklingsselskabet Carlsberg Byen P/S1 33648499 Copenhagen 107 112 23 23 Havneholmen P/S1 38036572 Kongens Lyngby 88 84 50 50 Margretheholmen P/S1 34609829 Valby 84 65 50 50 P/S Ottilia Copenhagen1 40087095 Copenhagen 41 39 50 50 K/S Ejendomsholding Banemarksvej1 43125834 Nordhavn 40 26 40 40 Eksportfinans ASA 816521432 Oslo – 94 – – Eiendomsverdi AS 881971682 Oslo 11 12 25 25 Getswish AB 556913-7382 Stockholm 10 10 20 20 NF Fleet AB 556692-3271 Taeby 8 6 20 20 NF Fleet Oy 2006935-5 Espoo 7 7 20 20 NF Fleet A/S 29185263 Copenhagen 4 3 20 20 NF Fleet AS 988906808 Oslo 3 2 20 20 Bankomat AB 556817-9716 Stockholm 6 8 20 20 Trill Impact AB 559196-0827 Stockholm 6 4 5 30 E-nettet A/S 21270776 Copenhagen 3 3 17 17 CrediWire ApS 37264628 Copenhagen 2 2 7 7 OPEN POS Nordic Group AB 559063-2369 Gothenburg 2 2 46 46 Svenska e-fakturabolaget AB 556563-0596 Stockholm 2 1 50 50 Subaio ApS 37766585 Aalborg 1 1 20 20 Others 1 1 Total associated undertakings 426 482 Finansinfrastruktur i Sverige AB (former P27) 559198-9610 Stockholm 31 – 23 23 Siirto Brand Oy 3102648-1 Helsinki 4 0 50 50 Tibern AB 559384-3542 Stockholm 1 0 14 14 Invidem AB 559210-0779 Stockholm – – 17 17 Total joint ventures 36 0 Total associated undertakings and joint ventures 462 482 1) Measured at fair value. ===== SIDA 270 ===== Nordea Annual Report 2025 269 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9.4 Interest in structured entities Accounting policies A structured entity is an entity created to accomplish a narrow and well-defined objective where voting rights are not the dominant factor in determining control. Often legal arrangements impose strict lim- its on the decision-making powers of management over the ongoing activities of a structured entity. The same consolidation requirements apply to these entities, but as voting rights do not determine whether control exists, other factors are used to determine control. Power can exist due to agreements or other types of influence over a structured entity. This is normally the case when Nordea has sponsored or established a structured entity or when Nordea is the investment manager and has sole discretion as to investments and other administrative decisions. Variability in returns is also a prerequisite for con- solidation. Service and commission fees in connec- tion with the establishment of the structured entity are normally not significant enough to trigger con- solidation, nor is acting as an investment manager or as a custodian. Funding in the form of fund units, loans or credit commitments can result in significant variability in returns. If Nordea is exposed to varia- bility in returns and has power to affect the returns of the entity, it is consolidated. Nordea normally con- siders a share of more than 30% of the return pro- duced by a structured entity to give rise to variability and thus to give control. Variability is measured as the sum of fees received and revaluation of assets held. For unit-linked and other contracts where the policyholder/depositor decides both the amount and in which assets to invest, Nordea is considered to act as an agent, and such holdings are thus not included in the control assessment. Consolidated structured entities Viking ABCP Conduit (Viking) has been established with the purpose of supporting trade receivable or accounts payable securitisation transactions to core Nordic custom- ers. The SPE purchases trade receivables from approved sellers and funds the purchases either by issuing commer- cial paper (CP) via the established asset-backed commer- cial paper programme or by drawing funds under the liquidity facilities available. Nordea has provided liquidity facilities to a maximum of EUR 856m (EUR 856m) and at year end EUR 578m (EUR 668m) was utilised. The total assets of the conduit amounted to EUR 691m (EUR 758m) at year end. The SPE is consolidated as Nordea manages the entity and is exposed to variability in returns through the liquidity facil- ity. There are no significant restrictions on repayment of loans from Viking apart from the payments being depend- ent on the rate at which Viking releases its assets. Unconsolidated structured entities Disclosures are provided for structured entities in which Nordea has an interest but over which Nordea has no con- trol. Nordea has holdings in investment funds that are unconsolidated structured entities. Such holdings are rec- ognised on Nordea’s balance sheet and relate to investments: • on behalf of policyholders in Nordea Life & Pension • on behalf of depositors where the return is based on the investment • to hedge exposures to structured products issued to customers • that are illiquid private equity and credit funds. As Nordea is exposed to variability in returns on a gross basis, information about these funds is disclosed although the net exposure is considerably less. Any change in the value of investment funds acquired on behalf of policyhold- ers and depositors where the policyholder/depositor bears the investment risk is reflected in the value of the related liability, and the maximum net exposure to losses is zero. The change in the value of investment funds held on behalf of other policyholders is largely passed on to the policyholders, but as Nordea has issued guarantees in respect of some of these products, Nordea is exposed to value changes. Investment funds acquired to hedge exposures to struc- tured products reduce the net exposures to the extent hedges are effective. Investments in illiquid private equity and credit funds are an integral part of managing balance sheet risks at Nordea. The maximum loss on private equity and credit funds is esti- mated at EUR 1,270m (EUR 1,316m), equal to the investments in the funds. Nordea has established and therefore sponsored one unconsolidated structured entity, Thulite. Currently, Nordea has neither control over nor an interest in the entity. During the year Nordea entered into two new trans- actions with Thulite where Nordea bought financial guar- antees on portfolios of loans. During the year Nordea received reimbursement of losses of EUR 15m on its loan portfolios guaranteed by Thulite. Nordea’s interests in unconsolidated structured entities and any related liability are disclosed in the table below. The carrying amount is the maximum exposure to credit loss before considering any hedges. Income related to these investments is recognised in “Net result from items at fair value”. Interest in unconsolidated structured entities EURm 31 Dec 2025 31 Dec 2024 Assets, carrying amount: Interest-bearing securities 246 910 Shares 27,267 22,518 Assets in pooled schemes and unit-linked investment contracts 63,868 55,820 Total assets 91,381 79,248 Liabilities, carrying amount: Deposits in pooled schemes and unit-linked investment contracts 63,868 55,820 Insurance contract liabilities 24,276 20,600 Total liabilities 88,144 76,420 Off-balance sheet, nominal amount: Loan commitments – – Nordea holds a large number of different funds that are classified as unconsolidated structured entities, some of which are managed by Nordea. These have different investment mandates and types of risk appetite, ranging from low-risk government bond funds to high-risk lever- aged equity funds. The total assets of funds managed by Nordea are EUR 256bn (EUR 230bn). All funds are financed by deposits from unitholders. The total assets of investment funds not managed by Nordea are not consid- ered meaningful for the purpose of understanding the related risks and are thus not disclosed. ===== SIDA 271 ===== Nordea Annual Report 2025 270 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9.5 Assets and liabilities held for sale Accounting policies Individual assets and disposal groups including assets and liabilities are presented in the separate balance sheet line items “Assets held for sale” and “Liabilities held for sale”, respectively, as from the classification date. This occurs when the following criteria are fulfilled: • The carrying amount will be recovered principally through a sale transaction rather than through continuing use. • A decision to sell has been made on the right level and the asset or disposal group is available for sale in its current condition. • The sale is highly probable and will be executed within 12 months. Financial instruments continue to be measured under IFRS 9, while non-financial assets are held at the lower of carrying amount and fair value. Comparative figures are not restated. Retail finance in Sweden In the fourth quarter of 2023 Nordea decided to wind down its operations in retail finance in the Swedish finance company and to sell the existing loan portfolio. By the end of 2024 the portfolio amounted to EUR 95m and was classifed as “Assets held for sale”. The sale was com- pleted in 2025. G9.6 Acquisitions Accounting policies In a business combination, the acquired identifiable assets and liabilities are recognised at fair value, including any intangible assets identified in the acquisition. The net fair value of identifiable assets and liabilities is compared with the consideration paid and any surplus is recognised as goodwill. See also Note G9.1 “Consolidated entities”. Acquisition of Danske Bank’s personal customer and private banking business in Norway On 18 November 2024 Nordea acquired the Norwegian personal customer and private banking business from Danske Bank. Nordea took over approx. 235,000 custom- ers and 236 employees, and the net purchase price amounted to EUR 2,375m. The net purchase price was largely equal to the carrying amount of the assets and lia- bilities of the seller, after fair value adjustments on loans with fixed interest rates. The transaction also included associated asset management portfolios of EUR 1.2bn, which have not been consolidated into the Nordea Group’s financial statements. The transaction did not include any transfer of equity interests. The acquisition is an important step in the execution of Nordea’s Nordic strategy, as it expands Nordea’s presence in Norway. It will also add significant scale to Nordea’s Personal Banking business in Norway and provide value creation opportunities through offering the new custom- ers a broader set of products and services. The purchase price allocation is disclosed below. EURm 18 November 2024 Loans to the public 8,904 Other assets and liabilities 23 Deposits and borrowings from the public -3,186 Debt securities in issue -3,390 Acquired net assets 2,351 Purchase price, settled in cash 2,375 Cost of combination 2,375 Surplus value 24 Allocation of surplus value: Customer relationship intangible asset 24 A customer relationship intangible asset was identified in the transaction, to which the entire surplus value has been allocated. It represents the value of the entire customer relationship, but is primarily driven by the net present value of the cash flows generated by the asset manage- ment portfolios. The customer relationship intangible asset is amortised over 10 years, which is the estimated useful life. The revenue and operating profit, excluding integration costs, for the period during which the portfolios were con- solidated were EUR 15m and EUR 2m, respectively. ===== SIDA 272 ===== Nordea Annual Report 2025 271 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10 Other disclosures G10.1 Additional disclosures on the statement of changes in equity Accounting policies Equity is the residual interest in recognised assets after deduction of recognised liabilities. For equity there are no requirements to distribute cash flows. Instruments are classified as financial liabilities if such genuine requirements exist, for instance to pay when a triggering event occurs that is beyond the control of both the issuer and the holder of the instruments. See Note G3.3 “Classification and meas- urement” for more information, including the critical judgements applied by Nordea. Any payments connected to instruments classi- fied as equity are accounted for directly in equity and presented as dividends. Nordea has determined that payments on financial instruments classified as equity (i.e. Additional Tier 1 instruments with write- down features) are distribution of profits and they are therefore accounted for as dividends. Dividends to shareholders are recognised as a reduction of equity when the Annual General Meeting has adopted the proposal. The reduction of equity is accounted for when the Board of Directors decides on dividends in situations where the Annual General Meeting has given the Board of Directors a mandate to make such a decision up to a certain cap. Investments in own shares are not accounted for as assets; instead, they are recognised as a reduction in equity net of any transaction costs. Acquisitions of treasury shares as part of the Markets trading oper- ations are recognised as a reduction in invested unrestricted equity. Treasury shares acquired to opti- mise the capital structure and Nordea’s buy-back programmes are recognised as a reduction in retained earnings. Transaction costs related to repurchasing of treasury shares are also recognised in equity. There is no impact on the financial state- ments when shares are cancelled. Sales of own shares in the trading operations are recognised as increases in invested unrestricted equity. Contracts on Nordea shares that can be settled net in cash, for instance derivatives such as options and warrants, are either presented as financial assets or liabilities, meaning that these are not equity instruments. Non-controlling interests comprise the portion of net assets of group undertakings not owned directly or indirectly by Nordea Bank Abp. For each business combination, Nordea measures the non-controlling interests in the acquiree either at fair value or at their proportionate share of the acquiree’s identifia- ble net assets. Other reserves comprise income and expenses, net of tax effects, which are reported in equity through other comprehensive income. Apart from undistributed profits from previous years, retained earnings include the equity portion of untaxed reserves. Untaxed reserves according to national rules are accounted for as equity net of deferred tax at prevailing tax rates in the respective country. In addition, Nordea’s share of the undistributed earnings in associated and joint ventures since the date of acquisition is included in retained earnings. Additional Tier 1 capital holders Nordea has issued perpetual subordinated instruments (Additional Tier 1 instruments) which are converted into a variable number of Nordea shares in case a pre-defined CET1 trigger level for either the Nordea Group or NBAbp is breached. Interest payments are fully discretionary and mandatorily cancelled in certain circumstances. As Nordea may be obliged to deliver a variable number of Nordea shares, these Additional Tier 1 instruments are classified as financial liabilities. Nordea has also issued perpetual subordinated instru- ments (Additional Tier 1 instruments) which will be writ- ten down instead of converted into Nordea shares in case a pre-defined CET1 trigger level for either the Nordea Group or NBAbp is breached. Interest payments are fully discretionary and mandatorily cancelled in certain circum- stances. These instruments are classified as equity as there is no requirement for Nordea to pay interest or principal to the holders of the instruments. By the end of 2025 no such instruments were outstanding. Non-controlling interests For information about non-controlling interests, see Note G9.1 “Consolidated entities”. Share capital The share capital amounts to EUR 4,049,951,919. The shares in Nordea have no nominal value. Each share car- ries one voting right. For more information about the num- ber of registered shares, see “Statement of changes in equity”. Invested unrestricted equity Invested unrestricted equity equals the amount of the share premium reserve of Nordea Bank AB (publ) before completion of the re-domiciliation by way of a cross-bor- der reversed merger. Invested unrestricted equity has also been impacted by acquisitions and sales of treasury shares as part of the Markets trading operations. Other reserves These reserves include reserves for cash flow hedges, financial assets classified in the category “Financial assets at fair value through other comprehensive income” and accumulated remeasurements of defined benefit pension plans as well as a reserve for translation differences. For an analysis of the row “Other comprehensive, net of tax” by item see “Statement of comprehensive income”. Retained earnings Retained earnings primarily comprise Nordea’s undistrib- uted profits from previous years. G10.2 Additional disclosures on the cash flow statement Accounting policies The cash flow statement shows inflows and out- flows of cash and cash equivalents during the year for total operations. Nordea’s cash flow statement has been prepared in accordance with the indirect method, whereby operating profit is adjusted for effects of non-cash transactions such as deprecia- tion and loan losses. Cash flows are classified by operating, investing and financing activities. Operating activities Cash flows from operating activities, which are the princi- pal revenue-producing activities, are mainly derived from profits during the year adjusted for items not included in cash flows and income taxes paid. Adjustment for items not included in cash flows includes: EURm 2025 2024 Depreciation 610 562 Impairment charges 4 15 Loan losses 60 238 Net result on loans in hold portfolios mandatorily held at fair value 1 8 Unrealised gains/losses 2,587 109 Capital gains/losses (net) -23 -30 Change in accruals and provisions 13 190 Translation differences -762 570 Change in insurance contract liabilities 4 -7 Change in fair value of hedged items, assets/liabilities (net) 231 664 Other 62 -13 Total 2,787 2,306 ===== SIDA 273 ===== Nordea Annual Report 2025 272 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10.2 A dditional disclosures on the cash flow statement, cont. Operating assets and liabilities consist of assets and liabili- ties that are part of normal business activities, such as loans, deposits and debt securities in issue. Changes in derivatives are reported on a net basis. Cash flows from operating activities include interest payments received and interest expenses paid in the fol- lowing amounts: EURm 2025 2024 Interest received 17,336 21,235 Interest paid -10,139 -13,444 Investing activities Investing activities include acquisition and disposal of non-current assets such as property and equipment and intangible and financial assets. Financing activities Financing activities are activities that result in changes in equity and subordinated liabilities such as new issues of shares, dividends and issued/amortised subordinated lia- bilities and the principal portion of lease payments. Cash and cash equivalents The following items are included in “Cash and cash equivalents”: EURm 31 Dec 2025 31 Dec 2024 Cash and balances with c entral banks 38,206 46,562 Loans to central banks payable on demand 4 4 Loans to credit institutions payable on demand 983 999 Total 39,193 47,565 Cash comprises legal tender and bank notes in foreign currencies. Balances with central banks consist of deposits in accounts with central banks and postal giro systems under government authority where the following condi- tions are fulfilled: • The central bank or the postal giro system is domiciled in the country where the institution is established. • The balance on the account is readily available at any time. Loans to central banks and credit institutions payable on demand include liquid assets not represented by bonds or other interest-bearing securities. Reconciliation of liabilities arising from financing activities The opening balance of subordinated liabilities was EUR 7,410m (EUR 5,720m). Cash flows during the period were EUR 937m (EUR 1,430m) and the effects of FX and other changes were EUR 463m (EUR 260m), resulting in a clos- ing balance of EUR 8,810m (EUR 7,410m). The opening balance of lease liabilities was EUR 1,103m (EUR 1,103m). During the period cash flows related to the liabilities amounted to EUR -112m (EUR -151m) and other changes from new, terminated and modified contracts and FX changes amounted to EUR 54m (EUR 151m), resulting in a closing balance of EUR 1,045m (EUR 1,103m). EURm 2025 2024 Cash and cash equivalents at beginning of year 47,565 51,362 Translation differences -1,288 560 Cash and cash equivalents at end of year 39,193 47,565 Change -7,084 -4,357 ===== SIDA 274 ===== Nordea Annual Report 2025 273 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10.3 Maturity analysis Accounting policies The table “Expected maturity” presents the expected maturities for the balance sheet items. The table “Contractual undiscounted cash flows” is based on contractual undiscounted maturities. For derivatives, the expected cash inflows and outflows are disclosed for both derivative assets and deriva- tive liabilities as derivatives are managed on a net basis. For contractual lease liabilities, see Note G5.4 “Leases”. For further information about remaining maturity, see also section 8 “Liquidity risk” in Note G11 “Risk and liquidity management”. Expected maturity 31 Dec 2025 Expected to be recovered or settled: 31 Dec 2024 Expected to be recovered or settled: EURm Note Within 12 months After 12 months Total Within 12 months After 12 months Total Cash and balances with central banks 38,206 – 38,206 46,562 – 46,562 Loans to central banks G3.8 6,947 – 6,947 4,075 – 4,075 Loans to credit institutions G3.8 3,367 671 4,038 2,388 562 2,950 Loans to the public G3.8 105,483 276,388 381,871 96,130 261,458 357,588 Interest-bearing securities G3.9 13,526 66,346 79,872 14,985 58,479 73,464 Shares G3.10 14,573 25,014 39,587 1,866 33,522 35,388 Assets in pooled schemes and unit-linked investment contracts G3.11 7,359 63,318 70,677 7,499 53,380 60,879 Derivatives G3.12 259 17,374 17,633 7,783 17,428 25,211 Fair value changes of hedged items in portfolio hedges of interest rate risk G3.6 -158 – -158 -243 – -243 Investments in associated undertakings and joint ventures G9.3 – 462 462 – 482 482 Intangible assets G5.1 – 4,088 4,088 21 3,861 3,882 Properties and equipment G5.2 – 1,564 1,564 145 1,516 1,661 Investment properties G5.3 – 2,215 2,215 22 2,110 2,132 Deferred tax assets G2.11 7 173 180 11 195 206 Current tax assets G2.11 383 – 383 364 – 364 Retirement benefit assets G8.2 – 334 334 – 360 360 Other assets 1,655 3,964 5,619 1,146 6,022 7,168 Prepaid expenses and accrued income 787 45 832 1,089 42 1,131 Assets held for sale G9.5 – – – 95 – 95 Total assets 192,394 461,956 654,350 183,938 439,417 623,355 Deposits by credit institutions G3.13 32,783 1,348 34,131 28,678 97 28,775 Deposits and borrowings from the public G3.14 224,392 18,482 242,874 224,008 8,427 232,435 Deposits in pooled schemes and unit-linked investment contracts G3.11 5,466 66,145 71,611 4,529 57,184 61,713 Insurance contract liabilities G4 2,314 30,783 33,097 1,910 28,441 30,351 Debt securities in issue G3.15 70,704 125,572 196,276 74,868 113,268 188,136 Derivatives G3.12 340 17,738 18,078 3,993 21,041 25,034 Fair value changes of hedged items in hedges of interest rate risk G3.6 -567 – -567 -458 – -458 Current tax liabilities G2.11 672 – 672 208 – 208 Other liabilities1 G3.16 5,658 8,748 14,406 4,544 9,652 14,196 Accrued expenses and prepaid income 1,256 42 1,298 1,582 56 1,638 Deferred tax liabilities G2.11 87 514 601 27 786 813 Provisions G6 85 263 348 113 283 396 Retirement benefit liabilities G8.2 – 296 296 – 272 272 Subordinated liabilities G3.17 921 7,889 8,810 93 7,317 7,410 Total liabilities 344,111 277,820 621,931 344,095 246,824 590,919 1) Of which lease liabilities 106 939 1,045 109 994 1,103 ===== SIDA 275 ===== Nordea Annual Report 2025 274 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10.3 Maturity analysis, cont. Contractual undiscounted cash flows 31 Dec 2025 31 Dec 2024 EURm < 1 month 1–3 months 3–12 months 1–2 years 2–5 years 5–10 years >10 years Total < 1 month 1–3 months 3–12 months 1–2 years 2–5 years 5–10 years >10 years Total Cash and balances with central banks and loans to central banks 45,005 148 – – – – – 45,153 50,475 162 – – – – – 50,637 Loans to credit institutions 4,470 456 398 408 219 – – 5,951 2,892 422 298 26 230 – – 3,868 Loans to the public 69,157 18,907 43,257 41,539 77,637 62,845 207,341 520,683 61,399 22,283 40,731 40,586 71,973 70,367 197,332 504,671 Interest-bearing securities 1,193 1,317 15,544 23,996 36,318 9,491 10,877 98,736 1,777 791 14,589 17,115 38,363 9,476 5,254 87,365 Other non-derivative financial assets – – – – – – 115,084 115,084 – – – – – – 102,791 102,791 Total non-derivative financial assets 119,825 20,828 59,199 65,943 114,174 72,336 333,302 785,607 116,543 23,658 55,618 57,727 110,566 79,843 305,377 749,332 Deposits by credit institutions 19,205 15,875 4,258 – – – – 39,338 25,520 3,945 895 3 65 – – 30,428 Deposits and borrowings from the public 226,572 12,223 5,366 131 8 – – 244,300 212,565 15,267 4,935 56 70 1 0 232,894 Debt securities in issue 5,926 18,036 57,624 40,962 71,424 21,114 19,492 234,578 3,940 23,033 64,907 33,295 72,169 16,908 20,330 234,582 - of which CDs and CPs 885 14,078 30,070 4,463 43 – – 49,539 1,025 17,000 22,297 27 51 – – 40,400 - of which covered bonds 5,041 3,650 23,877 28,702 57,859 15,357 19,197 153,683 2,915 3,438 35,780 29,303 58,495 12,608 20,061 162,600 - of which other bonds – 308 3,677 7,797 13,522 5,757 295 31,356 – 2,595 6,830 3,965 13,623 4,300 269 31,582 Subordinated liabilities 1,180 1,547 810 4,908 1,781 – – 10,226 – 125 255 2,798 3,129 2,377 184 8,868 Other non-derivative financial liabilities 84,169 21 94 111 277 344 331 85,347 74,016 21 97 118 281 345 384 75,262 Total non-derivative financial liabilities 337,052 47,702 68,152 46,112 73,490 21,458 19,823 613,789 316,041 42,391 71,089 36,270 75,714 19,631 20,898 582,034 Derivatives, cash inflows 253,542 271,418 189,529 130,229 246,366 161,573 104,231 1,356,888 241,710 239,182 181,085 102,525 204,988 122,543 72,563 1,164,596 Derivatives, cash outflows 253,641 272,044 189,519 129,964 246,994 162,096 104,591 1,358,849 241,705 239,103 182,027 102,898 205,436 123,562 72,701 1,167,432 Derivatives, net cash flows -99 -626 10 265 -628 -523 -360 -1,961 5 79 -942 -373 -448 -1,019 -138 -2,836 Credit commitments 95,010 – – – – – – 95,010 86,948 – – – – – – 86,948 Issued guarantees 19,545 – – – – – – 19,545 20,337 – – – – – – 20,337 ===== SIDA 276 ===== Nordea Annual Report 2025 275 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10.4 R elated party transactions Accounting policies Related parties A related party is a person or entity that is related to Nordea. Related parties are grouped in the following categories: • Shareholders with significant influence • Associated undertakings and joint ventures • Key management personnel • Other related parties. Shareholders with significant influence Shareholders with significant influence are share- holders that have the power to participate in the financial and operating policy decisions of Nordea but do not control those policies. Associated undertakings and joint ventures For the definition of associated undertakings and joint ventures, see Note G9.3 “Investments in associ- ated undertakings and joint ventures”. Key managment personnel Key management personnel are the persons having authority and responsibility for planning, directing and controlling the activities in Nordea, directly or indirectly, including any director of the entity. Other related parties Other related parties comprise subsidiaries of share- holders with significant influence, close family mem- bers of key management personnel and companies controlled or jointly controlled by key management personnel or by close family members of key man- agement personnel. Related party transactions A related party transaction is a transfer of resources, services or obligations between Nordea and a related party, regardless of whether a price is charged. See also Accounting policies in Note G8.4 “Key management personnel remuneration”. Related party transactions Associated undertakings1 Other related parties2 EURm 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Assets Loans 116 137 2 2 Other assets 0 1 – – Total assets 116 138 2 2 Liabilities Deposits 0 1 38 11 Derivatives – 3 – – Other liabilities 2 0 0 0 Total liabilities 2 4 38 11 Off-balance sheet items – – 5 5 Associated undertakings1 Other related parties2 EURm 2025 2024 2025 2024 Net interest income 4 4 0 0 Net fee and commission income 1 2 0 0 Net result from items at fair value – -1 0 0 Total operating expenses -1 0 – – Profit before loan losses 4 5 0 0 1) In formation about associated undertakings included in the Nordea Group is found in Note G9.3 “Investments in associated undertakings and joint ventures”. 2) This c olumn includes shareholders with significant influence (including their subsidiaries), close family members of key management personnel at Nordea, companies controlled or jointly controlled by key management personnel or by close family members of key management personnel at Nordea. It also includes Nordea’s pension foundations. All transactions with related parties are made on the same criteria and terms as those of comparable transactions with external parties of similar standing, apart from loans granted to employees as well as certain other commit- ments to key management personnel, see Note G8.4 “Key management personnel remuneration” and Note G7.1 “Contingent liabilities”. The information above is presented from Nordea’s per- spective, meaning that the information shows the effect of related party transactions on the Nordea figures. In Nordea key management personnel includes the f ollowing positions: • Board of Directors • Chief Executive Officer (CEO) • Deputy Managing Director • Group Leadership Team. Loans to key management personnel amounted to EUR 5.0m (EUR 2.4m) and interest income on these loans amounted to EUR 0.1m (EUR 0.1m). Deposits from key management personnel amounted to EUR 1.2m (EUR 5.7m) and interest on these deposits amounted to EUR -0.0m (EUR -0.1m). Loan commitments to key manage- ment personnel amounted to EUR 4.0m (EUR 0.3m). For key management personnel employed by Nordea the same credit terms apply as for other employees. In Finland, the employee interest rate for mortgage loans cor- responds to Nordea Bank Abp’s funding cost with a margin of 30bp and for other loans the employee interest rate cor- responds to Nordea Bank Abp’s funding cost with a margin of 45–500bp. In Denmark, the employee interest rate for loans is variable and between 2.50–4.45% depending of the type of mortgage. In Norway, the variable interest rate on loans to employees is 4.44%. Mortgage loans with fixed interest rates are offered with the same rates as mortgage loans to Premium customers. In Sweden, loans approved with employee conditions are a maximum amount at SEK 3m for any type of loan and a maximum amount at SEK 0.4m for car loans. The interest rate for these loans is 215bp lower than the corresponding interest rate for external cus- tomers. For interest on loans above SEK 3m and SEK 0.4m respectively, the employees receive the same maximal dis- count as Nordea’s best external customers. Loans to family members of key management person- nel who do not live in the same household as key manage- ment personnel are granted on normal market terms, as are loans to key management personnel who are not employed by Nordea. For more information about transac- tions with key management personnel, see Note G8.4 “Key management personnel remuneration”. ===== SIDA 277 ===== Nordea Annual Report 2025 276 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management 1. Risk governance ..................................................................................276 1.1 Internal Control Framework ..............................................276 1.2 Decision-making bodies for risk, liquidity and capital management ...................................................276 1.3 Governance of risk management and compliance ..........................................................................277 1.4 Disclosure requirements of the Capital Requirements Regulation – Capital and Risk Management Report 2025 ......................................278 2. Credit risk ................................................................................................278 2.1 ESG-related credit risk ..........................................................278 2.2 Credit risk definition and identification .....................279 2.3 Credit risk mitigation ..............................................................279 2.4 Exposures, allowances and provisions ......................279 2.5 Sensitivities ...................................................................................292 2.6 Forward-looking information ...........................................293 2.7 Management judgements ..................................................298 2.8 Rating and scoring distribution ......................................298 3. Counterparty credit risk ..................................................................301 4. Market risk ..............................................................................................301 4.1 Traded market risk ...................................................................301 4.2 Non-traded market risk ........................................................301 4.3 Measurement of market risk .............................................301 4.4 Market risk analysis.................................................................302 4.5 Net interest income risk and Economic Value risk ........................................................................................302 4.6 Other market risks/pension risk .....................................302 5. Operational risk ................................................................................... 303 5.1 Management of operational risk ...................................303 5.2 Model risk ......................................................................................304 6. Compliance risk ...................................................................................304 6.1 Code of Conduct .......................................................................304 6.2 Raise your Concern .................................................................304 6.3 Financial crime prevention .................................................305 7. Life insurance risk and market risks in the Life & Pension operations .............................................................305 8. Liquidity risk .........................................................................................305 8.1 Liquidity risk definition and identification ...............305 8.2 Management principles and control ...........................305 8.3 Funding and liquidity strategy ........................................305 8.4 Liquidity risk measurement ...............................................306 8.5 Liquidity risk analysis .............................................................306 1. Risk governance Maintaining organisational risk awareness is an integral part of Nordea’s business strategy. Nordea has defined clear risk management frameworks, policies and instruc- tions for different risk types covering all risk exposures. 1.1 Internal Control Framework The Internal Control Framework covers the whole Group and includes the Board of Directors, Group Chief Executive Officer (Group CEO) and senior executive management responsibilities regarding internal control, all Group func- tions and business areas including outsourced activities and distribution channels. Under the Internal Control Framework, all business areas, Group functions and units are responsible for managing the risks they incur when conducting their activities and to have controls in place that aim to ensure compliance with internal and external requirements. As part of the Internal Control Framework, Nordea has established Group control functions with appropriate and sufficient authority, independence and access to the Group Board to fulfil their mission. Within the Internal Control Framework the Group Board has established Nordea’s Risk Management Framework and Compliance Risk Management Framework. The Internal Control Framework ensures effective and efficient operations, adequate identification, measurement and mitigation of risks, prudent conduct of business, sound administrative and accounting procedures, reliabil- ity of financial and non-financial information (both inter- nal and external) and compliance with applicable laws, regulations, standards, supervisory requirements and Group internal rules. 1.2 Decision-making bodies for risk, liquidity and capital management The Group Board, the Board Risk Committee, the Group CEO in the GLT, the Asset and Liability Committee (ALCO) and the Risk Committee (RC) are the key decision-making bodies for risk and capital management at Nordea. In addition, the CEO Credit Committee, the Executive Credit Committee and Business Area Credit Committees are the key bodies for credit decision-making. Group Board The Group Board has the following overarching risk man- agement responsibilities: • Decide on the Group’s risk strategy and the Risk Appetite Framework, including the Risk Appetite Statement, with at least annual reviews and additional updates when needed. • Oversee and monitor the implementation of the risk strategy, Risk Appetite Framework and Risk Manage- ment Framework and regularly evaluate whether the Group has effective and appropriate controls to manage the risks. • Monitor and oversee the development of the Group’s risk profile against the Group Board-approved Risk Appetite Statements. • Set expectations and oversee the implementation of the Group’s risk culture, including approval of the Code of Conduct and values. • Monitor the presence of a sound risk culture consistently and consider the impact of the risk culture on the finan- cial stability risk profile and governance. The Group Board decides on capital policy, including divi- dend policy, to ensure adequate capital and liquidity levels within the Group and on an ongoing forward-looking basis, consistent with Nordea’s business model, risk appe- tite and regulatory requirements and expectations. Board Risk Committee The Board Risk Committee assists the Group Board in ful- filling its oversight responsibilities concerning manage- ment and control of the risks, risk frameworks, controls and processes associated with the Group’s operations. Group CEO The Group CEO is responsible to the Group Board for the overall management of the Group’s operations and risks. Responsibilities include ensuring that the risk strategy and risk management framework decided by the Group Board is implemented, the necessary practical measures are taken and risks are monitored and limited. The Group CEO is supported in decision-making by sen- ior management within the GLT. Matters that are to be decided by the Group Board and matters of principle or otherwise of particular importance that are to be decided by the boards of directors of the major subsidiaries of Nordea Bank Abp must first be presented to the Group CEO for discussion and recommendation. ===== SIDA 278 ===== Nordea Annual Report 2025 277 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Group-wide committees have been established by the Group CEO to promote coordination within the Group, thus ensuring commitment to and ownership of Group-wide pri- oritisations, decisions and implementation. The composition and areas of responsibility of each committee are estab- lished in the Group CEO Instructions for the respective committees. Asset and Liability Committee The Asset and Liability Committee (ALCO) is subordinated to the Group CEO in GLT and chaired by the Group Chief Financial Officer (CFO). ALCO decides on changes to the financial operations and the risk profile of the balance sheet, including asset and liability management (ALM), balance sheet management and liquidity management. ALCO also decides on certain issuances and capital injec- tions for all wholly owned legal entities within the Group. ALCO has established sub-committees for its work and decision-making within specific risk areas. Risk Committee The Risk Committee is subordinated to the Group CEO in the GLT and chaired by the Group Chief Risk Officer (CRO). The Risk Committee serves as a decision-making and/or pre- paratory body on risk, while promoting interaction and coor- dination within the Group on risk topics across the first and second lines of defence. It prepares or provides guidance regarding proposals to the Group CEO in the GLT and/or the Group Board on issues of major importance concerning Nordea’s Risk Management Framework. The Group Board decides on the Risk Appetite Framework. The Risk Committee allocates the risk appetite to the risk-taking units, and the first line of defence is responsible for ensuring that limits are further cascaded and operationally implemented. The Risk Committee has established sub-committees for its work and decision-making within specific risk areas. Credit decision-making bodies The Group Board and the subsidiaries’ boards of directors delegate credit decision-making according to the Power to Act as described in the Group Board Directive on Risk. • The CEO Credit Committee is chaired by the Group CEO and the members of the Executive Credit Committee are included. • The Executive Credit Committee is chaired by the Head of Group Credit Management. The Group CEO appoints the members of the Executive Credit Committee. • Business Area Credit Committees: The Executive Credit Committee establishes credit committees for each business area as required by organisational and customer segmentation. Subsidiary governance The subsidiaries’ boards of directors are responsible for approving risk appetite limits and capital actions in line with the overarching framework set by the Group Board of Directors. The proposals for such items are the responsibil- ity of the relevant subsidiary management which is sup- ported by Group functions. Subsidiaries must adhere to the Internal Control Framework of the Group including Nordea’s Risk Management and Compliance Risk Management Frameworks, unless local legal or supervisory require- ments determine otherwise. The subsidiaries’ boards of directors have oversight responsibilities for management and control of risk and for the implementation of risk man- agement frameworks as well as the processes associated with the subsidiaries’ operations. In addition, there are risk management functions accountable for the risk manage- ment frameworks and processes within the subsidiaries. The subsidiaries’ CEOs are part of the decision-making process at the subsidiary level and are responsible for the daily operations. 1.3 Governance of risk management and compliance Group Risk and Group Compliance constitute Nordea’s independent second line of defence functions. The second line of defence is organised to ensure that adequate resources are allocated to support processes and to cover the business organisation, legal structure and country dimensions. Group Risk oversees the implementation of the Group risk policies (excluding compliance risk) and, following a risk-based approach, monitors and controls the Risk Management Framework. Group Compliance oversees the implementation of the Compliance Risk Management Framework, which is a part of the overarch- ing Risk Management Framework. The Risk Management Framework ensures consistent processes for identifying, assessing and measuring, responding to and mitigating, controlling and monitoring and reporting risks. This enables informed decisions on risk-taking. The Risk Management Framework encom- passes all risks to which Nordea is or could be exposed, including ESG as drivers of existing risks, off-balance sheet risks and risks in a stressed situation. Detailed risk infor- mation covering all risks is regularly reported to the Risk Committee, the GLT, the Board Risk Committee and the Group Board. In addition to this, Nordea’s compliance with regulatory requirements is reported to the Risk Committee, the GLT, the Board Risk Committee and the Group Board. The Group Board and the CEO in each legal entity regularly receive local risk reporting. The Risk Identification and Materiality Assessment Process starts with identifying risks to which Nordea is or could be exposed. Risks are then assessed for relevance, classified and included in the Common Risk Taxonomy. All risks within the Nordea Common Risk Taxonomy need to be classified as material or not material for risk management and capital purposes. Material risks are those assessed as having a potential material impact on Nordea’s current and future financial position, its customers and stakeholders. These risks will typically refer to a higher level risk within the risk taxonomy that captures a number of underlying risks where losses arise from a common source. Risk appetite The Risk Appetite Framework (RAF) supports effective risk management and fosters a sound risk culture by ena- bling informed decision-making and risk-taking activities. Its primary objective is to ensure that all risk-taking remains within the boundaries of the risk appetite defined by the Board of Directors. Risk appetite refers to the overall level and type of risk that Nordea is willing to accept, in alignment with its busi- ness model, to achieve its strategic objectives. The Risk Appetite Statement articulates the Group Board-approved risk appetite and includes both qualitative statements and quantitative limits and triggers by key risk type. These ele- ments are designed to ensure that Nordea operates with a prudent and sustainable risk profile. Risk appetite processes The Risk Appetite Framework contains all processes and controls to establish, monitor and communicate Nordea’s risk appetite: • Risk capacity setting based on capital and liquidity posi- tion: On an annual basis, the Group’s overall risk capacity is aligned with the financial and capital planning pro- cess, based on Nordea’s risk strategy. The risk capacity is set in line with Nordea’s capital and liquidity position, including an appropriate shock-absorbing capacity. • Risk appetite allocation by risk type: Risk appetite includes risk appetite limits for the main risk types that Nordea is exposed to. Risk appetite triggers are also set for these main risk types, to act as early indicators for key decision-makers that the risk profile for a particular risk type is approaching its risk appetite limit. • Risk limit setting: Measurable risk limits are established and set at an appropriate level to manage risk-taking effectively. Risk appetite limits are set by the Board Risk Committee. These form the basis for setting the risk lim- its which are established and approved at lower deci- sion-making levels. The RAF is calibrated to ensure con- sistency throughout the framework. Subsidiary risk appetite limits must be set by the appropriate governing body in alignment with local regulatory requirements and consistent with the Group risk limits. • Controlling and monitoring risk exposures against risk limits: Regular controlling and monitoring of risk expo- sures compared to risk limits are carried out to ensure that risk-taking activity remains within the risk appetite. • Risk appetite limit breach management process: Group Risk and Group Compliance oversee that risk appetite limit breaches are appropriately escalated to the Risk Committee and the Board Risk Committee. Group Risk and Group Compliance report monthly on any breaches of the risk appetite to the Group Board and other rele- vant governing bodies including a follow-up on the sta- tus of actions to be taken, until the relevant risk exposure is within the risk appetite. The reporting includes a con- sistent status indicator to communicate the current risk exposure compared to the risk appetite limit for all risk types covered by the Risk Appetite Statements. ===== SIDA 279 ===== Nordea Annual Report 2025 278 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Embedding risk appetite in business processes The end-to-end risk appetite process is closely aligned with other strategic processes, including the Internal Capital Adequacy Assessment Process (ICAAP), the Internal Liquidity Adequacy Assessment Process (ILAAP), and the Group Recovery Plan. Risk appetite is embedded within core business pro- cesses and communicated throughout the organisation to support Nordea’s objective of maintaining a strong risk culture. This includes, but is not limited to, ensuring a clear connection between the assessed risk appetite and busi- ness plans, budgets and the capital and liquidity position. Risk appetite is also integrated into the Group’s recovera- bility and resolvability assessments as well as into the incentive structures and remuneration framework. 1.4 Disclosure requirements of the Capital Requirements Regulation – Capital and Risk Management Report 2025 Additional information on risk and capital management is presented in the Capital and Risk Management Report 2025, in accordance with the Capital Requirements Regulation. 2. Credit risk Credits granted within the Group must conform to the common principles established for the Group. Nordea strives to have a well-diversified credit portfolio that is adapted to the structure of its home markets and econo- mies. Nordea’s loan portfolio is split by type of exposure classes (corporate and retail) or by sector, then further broken down by segment, industry and geography and reported monthly, quarterly and annually. The key principles for managing Nordea’s risk exposures are: • risk-based approach, i.e. the risk management functions should be aligned to the nature, size and complexity of Nordea’s business, ensuring that efforts undertaken are proportional to the risks in question • independence, i.e. the risk control function should be independent of the business it controls • three lines of defence, as further described in the Group Board Directive on Internal Governance. Group Credit Management is the first line of defence and is responsible for the credit process and Industry Credit Policies. Group Credit Risk Control is the second line of defence and is responsible for the credit risk framework, consisting of instructions and guidelines for the Group. Group Credit Risk Control is also responsible for con- trolling and monitoring the quality of the credit portfolio and the credit process. The basis of credit risk management at Nordea is allocat- ing limits to customers and customer groups which are aggregated and assigned to units responsible for their con- tinuous monitoring and development. In addition to the pro- cedures for allocating customer and customer group limits, Nordea’s credit risk management framework also includes the credit risk appetite framework, which provides a com- prehensive and risk-based portfolio perspective through rel- evant asset quality and concentration risk measures. Each division/unit is primarily responsible for managing the credit risks in its operations within the applicable framework and limits, including identification, control and reporting. Within the powers to act granted by the Board of Direc- tors, internal credit risk limits are approved by credit deci- sion-making authorities on different levels of the organisa- tion constituting the maximum risk appetite in relation to the customer in question. Individual credit decisions within the approved internal credit risk limit are taken within the customer responsible unit. The risk categorisation together with the exposure of the customer decides at what level the credit decision will be made. Responsibility for a credit risk lies with the customer responsible unit. Customers are classified according to risk and assigned a rating or a score in accordance with Nordea’s rating and scoring guidelines. The rating and scoring of customers aim to predict their probability of default and consequently rank them accord- ing to their respective default risk. Rating and scoring are used as integrated parts of credit risk management and the credit decision-making process. Representatives from the first line of defence credit organisation approve the rating independently. 2.1 ESG-related credit risk Some climate and environmental (C&E) risk drivers are assessed as a material or potentially material driver of (additional) credit risk. Nordea has in place a Group-wide taxonomy of C&E risk drivers (i.e. hazards) and a list of transmission channels. The C&E materiality assessment (MA) performed in 2025 covers various geographies, eco- nomic sectors and portfolios using different time horizons (short, medium, long and very long term). Nordea pro- vides an in-depth summary of the materiality assessment outcomes and identification, mitigation, management, capital adequacy and response to C&E risk drivers in the Capital and Risk Management Report. For existing and new corporate borrowers, depending on the size and internal segmentation, ESG credit risk driv- ers are investigated and any identified ESG risks are assessed further, either on an industry basis (inherent risks) or on customer level. Risks that are material to the borrower’s credit risk are treated as a credit risk driver and further integrated into the credit risk assessment. ESG- related risks identified as material at customer level pro- vide input to the credit risk assessment to reach conclu- sions on the customer group’s risk level included in the credit memorandum. Approvals are made according to the established credit decision-making process. For customers associated with high ESG-related risk levels, decisions are escalated to higher-level credit committees in line with the Group’s Credit Governance where relevant. When conducting the ESG assessments related to credit risks, as part of the credit risk assessment, a dedicated process which includes identifying both a customer’s vul- nerability and resilience towards material ESG issues is used. A semi-automated tool supplemented by human oversight is used to flag customers that require enhanced assessment by dedicated ESG analysts. To support these analyses, external databases are used to monitor perfor- mance on specific ESG-related risks and to assess whether the company has been or is involved in ESG-related con- troversies. Risks that are material to the borrower’s credit risk are treated as any other risk driver and further inte- grated into the credit risk assessment. When the impact from ESG-related risks is so severe that it causes misalign- ment with the rating, an ESG rating override can be applied. Climate-related transition and physical risks are assessed with an enhanced focus for larger customers. The key components of the assessment include counter- parties’ greenhouse gas (GHG) emissions intensity developments, the corresponding quality of their transi- tion planning and the resulting impact of climate-related transition and physical risks on customer repayment capacity. This analysis is aligned with the Group targets on financed GHG emissions reductions and transition plan coverage. Credit risk is also the risk type most affected by nature-related transition risk arising via Nordea’s lending activities. Overall, Nordea has low exposure to industries assessed as highly vulnerable to nature-related risks, with the highest vulnerability within primary production seg- ments, such as agriculture. For certain customers, there is an enhanced focus on ESG risks. The process includes ensuring that sufficient policies and programmes are in place to reduce potential harmful impacts on, for example, the environment, com- munities, health and safety issues and indigenous rights. Additionally, Nordea follows applicable valuation stand- ards and regulatory requirements, which includes taking ESG factors into account in applying market values for col- lateralised real estate assets, when available and relevant. ESG-related considerations in the credit process are fur- ther guided by the internal Industry Credit Policies (ICPs), which include ESG-related exclusion criteria from expo- sure to harmful or controversial economic activities and requirements on engagement and monitoring of cli- mate-related and nature-related transition plans. In addition to these processes, where relevant, Nordea carries out an ESG impact assessment when financing large infrastructure and industrial projects, as part of its commitment to the Equator Principles. The overall credit risk assessment is a combined risk conclusion on the borrower’s repayment capacity and recovery position. The risk assessment conclusion must be sufficiently forward-looking in relation to the risk profile of the customer and the maturity of the transaction. In addition to the credit risk assessment made in con- nection with a new or changed exposure in relation to a customer, an annual or ongoing (i.e. business as usual) credit review process is in place. The review process is an important part of the ongoing credit assessment process. In general, if credit weakness is identified in relation to a customer exposure, the customer is classified as “high risk” and receives special attention in terms of more fre- quent reviews and testing the need for individual ===== SIDA 280 ===== Nordea Annual Report 2025 279 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. provisions. When credit events are identified, in addition to the ongoing monitoring, an action plan is established out- lining how to minimise the potential credit loss. If neces- sary, a work-out team is established to support the cus- tomer responsible unit. 2.2 Credit risk definition and identification Credit risk is defined as the potential for loss due to failure of a borrower to meet its obligations to pay a debt in accordance with the agreed terms and conditions. The potential for loss is lowered by credit risk mitigation tech- niques. Credit risk mainly stems from various forms of lending as well as from issued guarantees and documen- tary credits and includes counterparty credit risk, transfer risk and settlement risk. Nordea’s loan portfolio is furthermore broken down by segment, industry and geography. Industry credit policies are established for those industries that have a significant weight in the portfolio and/or are either highly cyclical or volatile or assessed as vulnerable to climate-related risks or require special industry competencies. Credit decisions are reached after a credit risk assess- ment, based on principles that are defined consistently across the Group. These principles emphasise the need to adjust the depth and scope of the assessment according to the risk. The same credit risk assessments are used as input for determining the internal ratings. Credit decisions at Nordea reflect Nordea’s view of both the customer rela- tionship and the credit risk. 2.3 Credit risk mitigation Credit risk mitigation is an inherent part of the credit deci- sion process. In every credit decision and review, the valu- ation of collateral is considered as well as the adequacy of covenants and other risk mitigations. A fundamental credit risk mitigation technique used by Nordea is to obtain col- lateral. Collateral is always required, when reasonable and possible, to minimise the risk of credit losses. At Nordea, the main collateral types are residential real estate, commercial real estate and other physical collateral. Collateral coverage should generally be higher for Credit committee structure Level 1 Board of Directors/Board Risk Committee Level 2 Chief Executive Officer (CEO) Credit Committee/Executive Credit Committee Level 3 Leveraged Buyout and Mergers and Acquisitions Credit Committee Real Estate Management Industry and Construction Credit Committee Corporate Large Corporations and Institutions Credit Committee Corporate Business Banking Credit Committee Int. Banks Countries, and Financial Institutions Credit Committee Shipping and Offshore Credit Committee Nordic Household Credit Committee Level 4 Six eyes decisions (rated customers) Four eyes decisions (scored customers) – two senior decision-makers from Group Credit Management Level 5 Four eyes decisions Level 6 Personal powers to act exposures of financially weaker customers than for those who are financially strong. Independently of the strength of the collateral position, the repayment capacity is the starting point for the credit assessment and the assignment of credit limits. Regarding large exposures, syndication of loans is the primary tool for managing concentration risk, while credit risk mitiga- tion using credit default swaps is applied to a limited extent. Covenants included in credit agreements are com- plementary to collateral protection. Most exposures of substantial size and complexity include appropriate covenants. Covenants provide early warning signs that enable Nordea to detect, and react on, a deterio- ration in the borrower’s credit quality or overall perfor- mance. Covenant breaches allow Nordea to cancel the credit facility and demand repayment of the outstanding credits. The collateral value should always be based on the market value. The market value is defined as the estimated amount for which the asset or liability could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowl- edgeably, prudently and without compulsion. From this market value, a haircut is applied. The haircut is defined as a percentage by which the asset’s market value is reduced ensuring a margin against loss. The haircut should reflect the volatility of the market value of the asset, liquidity and cost of liquidation. A minimum haircut is set for each col- lateral type. In addition to the haircut, potential high- er-ranking claims are also deducted from the market value when calculating the maximum collateral value. The same principles of calculation must be used for all exposures. 2.4 Exposures, allowances and provisions The maximum exposure to credit risk includes the carrying amount of loans and interest-bearing securities, accounted for at amortised cost and fair value, the counterparty credit risk in derivatives (see also section 3 ”Counterparty credit risk”) and nominal amounts of off-balance sheet commit- ments before loan loss allowances/provisions. The maxi- mum exposure to credit risk amounted to EUR 606bn at the end of the year (EUR 572bn). See Note 3.3. ”Classification and measurement” for relevant accounting policies. Nordea’s loans to the public increased by 6.8% to EUR 382bn during 2025 (EUR 358bn). The corporate portfolios increased by approximately 12.7%, while the household portfolios increased by 1.8%. The overall credit quality is solid with strongly rated customers, and with the macroe- conomic outlook improving during the year. However, close monitoring is performed due to uncertain macroeconomic developments and geopolitical changes. Of the lending to the public portfolio, corporate customers accounted for 49.5% (46.9%), household customers for 49.5% (51.9%) and the public sector for 1.0% (1.2%). Loans to central banks and credit institutions, mainly in the form of interbank deposits, increased to EUR 11bn at the end of 2025 (EUR 7bn). Credit-impaired loans held at amortised cost increased to EUR 3,135m (EUR 2,945m). The increase was mainly related to the household portfolios and to a lesser degree to the corporate porfolios. Credit-impaired loans for the household portfolios increased by 9% and EUR 123m and amounted to EUR 1,434m (EUR 1,311m). For the corporate portfolios, credit-impaired loans increased by 4% or EUR 62m and amounted to EUR 1,676m (EUR 1,614m). The largest increases were in the Consumer discretionary and services portfolio which increased by EUR 133m, driven by the Media and entertainment, Housing loans which increased by EUR 115m and Industrials which increased by EUR 86m, driven by Commercial and professional services. This was partly offset by minor reductions totalling EUR 130m in the Financial institutions, Maritime and Real estate portfolios. Net loan losses and similar net result for 2025 amounted to EUR 22m (EUR 206m), corresponding to an annual net loan loss ratio, including fair value mortgage loans, of 1bp (6bp). Individually calculated loan losses amounted to EUR 246m and were driven by lower than average provisions mainly for small and medium-sized companies, elevated write-offs and limited reversals. Moreover, model releases amounted to EUR 71m, mainly related to stage 2 and stage 3 exposures. Finally, manage- ment judgement allowances were reduced by EUR 138m during the year to EUR 276m by the end of 2025, driven by decreased uncertainty and lower credit risk due to lower interest rates and inflation. The management judgement ===== SIDA 281 ===== Nordea Annual Report 2025 280 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. allowances remain at a substantial level to address risks relating to the unstable geopolitical and macroeconomic environment. Total allowances were EUR 1,534m, down from EUR 1,800m in 2024. The allowances in relation to credit- impaired loans decreased from 36% to 31% with the corporate coverage ratio decreasing from 47% to 40% and the household coverage ratio from 23% to 21% in line with the updated assessment of the credit risk outlook for cor- porate and retail portfolios and Nordea’s sustained resil- ient credit quality. Stage 2 loans at amortised cost in the Group decreased to EUR 14,316m (EUR 16,366m). The decrease was mainly due to the improved economic environment and positive port- folio migration particularly in the second half of 2025, affecting both the household and corporate portfolios. The stage 2 coverage ratio decreased to 1.9% (2.2%). Forbearance is eased terms or restructuring due to the borrower experiencing or about to experience financial dif- ficulties. The intention of granting forbearance for a limited time period is to help the customer return to a sustainable financial situation ensuring full repayment of the outstand- ing debt. Examples of forbearance are changes in amorti- sation profile, repayment schedule, customer margin as well as easing of covenants. Forbearance is undertaken on a selective and individual basis followed by impairment testing. Forborne loans increased by EUR 326m during the year, with the household portfolios increasing by EUR 569m and the corporate portfolios decreasing by EUR 243m. The forbearance coverage ratio decreased from 15% to 14%. Maximum exposure to credit risk 31 Dec 2025 31 Dec 2024 EURm Note Amortised cost and fair value through other comprehensive income Financial assets at fair value through profit or loss Amortised cost and fair value through other comprehensive income Financial assets at fair value through profit or loss Loans to central banks and credit institutions G3.8 7,819 3,171 5,059 1,976 Loans to the public G3.8 294,061 89,179 277,799 81,384 Interest-bearing securities G3.9 48,703 31,171 41,284 32,182 Derivatives G3.12 – 17,633 – 25,211 Off-balance sheet items, nominal amounts G7.1, G7.2 114,321 234 107,036 249 Total 464,904 141,388 431,178 141,002 Collateral distribution 31 Dec 2025 31 Dec 2024 Financial collateral 0.9% 0.6% Receivables 0.9% 0.9% Residential real estate 74.8% 76.6% Commercial real estate 17.1% 16.8% Other physical collateral 6.3% 5.1% Total 100.0% 100.0% Allowances for credit risk EURm Note 31 Dec 2025 31 Dec 2024 Loans to central banks and credit institutions G3.8 5 10 Loans to the public G3.8 1,369 1,595 Interest-bearing securities measured at fair value through other compre hensive income or amortised cost G3.9 2 2 Off-balance sheet items G6 158 193 Total 1,534 1,800 Assets taken over for protection of claims 1 EURm 31 Dec 2025 31 Dec 2024 Current assets, carrying amount: Land and buildings 2 3 Shares and other participations 2 2 Other assets 2 4 Total 6 9 1) In accordance with Nordea’s policy for taking over assets for protection of claims, which is in compliance with the local banking business acts wherever Nordea is located. Assets used as collateral for the loan are generally taken over when the customer is not able to fulfil its obligations to Nordea. The assets taken over are disposed at the latest when full recovery is reached. Loan-to-value 1 31 Dec 2025 31 Dec 2024 Retail mortgage exposure EURbn % EURbn % <50% 133.9 83 128.4 83 50–70% 20.8 13 19.5 13 71–80% 4.4 2 4.0 2 81–90% 1.4 1 1.2 1 >90% 1.2 1 1.2 1 Total 161.7 100 154.3 100 1) The amounts and percentages in the table include the relevant part of a loan, not the total loan. Excludes loans under the standardised approach in the CRR, primarily related to loans acquired from Danske Bank in 2024. Forbearance EURm 31 Dec 2025 31 Dec 2024 Forborne loans 3,350 3,024 - of which defaulted 1,329 1,209 Allowances for individually assessed credit-impaired and forborne loans 460 465 - of which defaulted 418 412 Key ratios 31 Dec 2025 31 Dec 2024 Forbearance ratio1 1.1% 1.1% Forbearance coverage ratio2 14% 15% - of which defaulted 31% 34% 1) Forborne loans/Loans held at amortised cost before allowances. 2) Individual allowances on forborne loans/Forborne loans. Loans to corporate customers, by size of loans 31 Dec 2025 31 Dec 2024 Size in EURm Loans EURbn % Loans EURbn % 0–10 67.0 35 65.1 39 11–50 45.1 24 40.8 24 51–100 25.6 14 24.4 15 101–250 34.7 18 24.8 15 251–500 10.7 6 7.2 4 501– 6.0 3 5.4 3 Total 189.1 100 167.7 100 Credit-impaired loans and ratios 2025 2024 Gross credit-impaired loans, amortised cost, EURm 3,135 2,945 - of which servicing 1,228 1,133 - of which non-servicing 1,907 1,812 Impairment ratio (stage 3), gross, bp 104 104 Impairment ratio (stage 3), net, bp 72 66 Allowances in relation to loans, stages 1 and 2, bp 13 19 Total allowance ratio (stages 1, 2 and 3), bp 46 57 Allowances in relation to credit-impaired loans (stage 3), % 31 36 Past due loans 31 Dec 2025 31 Dec 2024 EURm Corporate customers Household customers Corporate customers Household customers 6–30 days 358 570 338 752 31–60 days 108 232 83 274 61–90 days 25 97 38 115 >90 days 289 757 413 784 Total 780 1,656 872 1,925 Past due (incl. impaired) loans divided by loans to the public after allowances, % 0.4 0.9 0.5 1.0 ===== SIDA 282 ===== Nordea Annual Report 2025 281 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Net loan losses and loan loss ratios 2025 2024 Net loan losses, EURm 21 198 Net loan loss ratio, amortised cost, Group, bp 1 7 - of which stage 3 7 9 - of which stages 1 and 2 -6 -2 Net loan loss ratio, including fair value mortgage loans, Group, bp1 1 6 Net loan loss ratio, including fair value mortgage loans, Personal Banking, bp 1 5 Net loan loss ratio, including fair value mortgage loans, Business Banking, bp 0 14 Net loan loss ratio, including fair value mortgage loans, Large Corporates & Institutions, bp -1 -2 1) Net loan losses and net result on loans in hold portfolios mandatorily held at fair value divided by total lending at amortised cost and at fair value, bp. Loans to the public measured at amortised cost and fair value 31 Dec 2025, EURm Denmark Finland Norway Sweden Other Total Financial institutions 2,956 2,191 835 12,184 988 19,154 Agriculture 4,621 312 3,310 282 5 8,530 Crops, plantations and hunting 2,791 158 37 149 5 3,140 Animal husbandry 1,787 150 31 58 0 2,026 Fishing and aquaculture 43 4 3,242 75 0 3,364 Natural resources 349 1,066 608 660 77 2,760 Paper and forest products 249 693 274 510 77 1,803 Mining and supporting activities 14 365 92 149 0 620 Oil, gas and offshore 86 8 242 1 0 337 Consumer staples 3,094 856 994 1,895 48 6,887 Food processing and beverages 367 264 658 631 0 1,920 Household and personal products 276 102 130 447 1 956 Healthcare 2,451 490 206 817 47 4,011 Consumer discretionary and services 2,560 2,255 2,447 4,849 23 12,134 Consumer durables 161 272 248 1,883 22 2,586 Media and entertainment 493 329 118 733 0 1,673 Retail trade 873 1,307 912 1,602 1 4,695 Air transportation 291 13 34 53 0 391 Accommodation and leisure 684 245 598 380 0 1,907 Telecommunication services 58 89 537 198 0 882 Loans to the public measured at amortised cost and fair value, cont. 31 Dec 2025, EURm Denmark Finland Norway Sweden Other Total Industrials 8,072 6,698 9,388 10,572 202 34,932 Materials 862 681 269 523 38 2,373 Capital goods 669 1,655 242 1,798 41 4,405 Commercial and professional services 2,500 1,020 2,049 2,246 95 7,910 Construction 1,178 986 3,983 1,966 0 8,113 Wholesale trade 1,669 1,003 1,010 2,199 7 5,888 Land transportation 515 790 547 995 17 2,864 IT services 679 563 1,288 845 4 3,379 Maritime 372 169 3,985 56 81 4,663 Shipbuilding 0 15 30 0 0 45 Shipping 26 71 3,836 38 81 4,052 Maritime services 346 83 119 18 0 566 Utilities and public service 2,481 3,035 1,885 1,391 1 8,793 Utilities distribution 1,877 1,191 1,125 1,034 0 5,227 Power production 188 1,549 565 170 1 2,473 Public services 416 295 195 187 0 1,093 Real estate 10,488 9,892 9,338 22,977 0 52,695 Commercial real estate 4,907 5,287 8,047 11,740 0 29,981 Residential real estate companies 2,757 1,086 571 3,221 0 7,635 Tenant-owned associations 2,824 3,519 720 8,016 0 15,079 Other industries 341 7 70 54 1,924 2,396 Total corporate 35,334 26,481 32,860 54,920 3,349 152,944 Housing loans 38,764 33,191 41,969 56,956 0 170,880 Collateralised lending 3,285 6,093 1,900 2,100 0 13,378 Non-collateralised lending 669 1,958 322 1,918 0 4,867 Household 42,718 41,242 44,191 60,974 0 189,125 Public sector 624 832 228 1,992 3 3,679 Reverse repurchase agreements 0 36,123 0 0 0 36,123 Loans to the public by country 78,676 104,678 77,279 117,886 3,352 381,871 Of which loans at fair value 52,997 36,182 0 0 0 89,179 ===== SIDA 283 ===== Nordea Annual Report 2025 282 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans to the public measured at amortised cost and fair value 31 Dec 2024, EURm Denmark Finland Norway Sweden Other Total Financial institutions 2,964 1,899 825 9,343 980 16,011 Agriculture 4,454 347 2,996 216 4 8,017 Crops, plantations and hunting 2,677 174 103 130 4 3,088 Animal husbandry 1,743 169 142 53 0 2,107 Fishing and aquaculture 34 4 2,751 33 0 2,822 Natural resources 171 1,106 736 453 91 2,557 Paper and forest products 147 797 286 394 91 1,715 Mining and supporting activities 15 299 90 58 0 462 Oil, gas and offshore 9 10 360 1 0 380 Consumer staples 3,427 824 1,187 1,956 55 7,449 Food processing and beverages 282 286 858 509 8 1,943 Household and personal products 213 96 131 415 2 857 Healthcare 2,932 442 198 1,032 45 4,649 Consumer discretionary and services 2,323 2,191 2,724 4,720 24 11,982 Consumer durables 158 319 249 1,869 23 2,618 Media and entertainment 491 348 144 735 0 1,718 Retail trade 730 1,160 1,164 1,435 0 4,489 Air transportation 253 15 30 42 0 340 Accommodation and leisure 626 276 626 371 0 1,899 Telecommunication services 65 73 511 268 1 918 Industrials 6,781 6,484 8,682 9,065 342 31,354 Materials 676 576 280 585 50 2,167 Capital goods 665 1,555 192 1,308 49 3,769 Commercial and professional services 1,957 772 2,049 1,684 203 6,665 Construction 1,024 1,161 3,683 1,857 0 7,725 Wholesale trade 1,739 1,073 1,009 2,160 23 6,004 Land transportation 270 728 689 781 15 2,483 IT services 450 619 780 690 2 2,541 Maritime 230 180 4,197 57 155 4,819 Shipbuilding 0 15 118 0 0 133 Shipping 31 71 3,907 35 155 4,199 Maritime services 199 94 172 22 0 487 Loans to the public measured at amortised cost and fair value, cont. 31 Dec 2024, EURm Denmark Finland Norway Sweden Other Total Utilities and public service 2,008 2,880 1,902 1,149 0 7,939 Utilities distribution 1,502 1,252 1,094 763 0 4,611 Power production 124 1,331 596 213 0 2,264 Public services 382 297 212 173 0 1,064 Real estate 9,365 9,173 8,950 19,273 0 46,761 Commercial real estate 4,092 4,902 7,677 9,143 0 25,814 Residential real estate companies 2,499 902 462 2,726 0 6,589 Tenant-owned associations 2,774 3,369 811 7,404 0 14,358 Other industries 294 0 41 47 1,792 2,174 Total corporate 32,017 25,084 32,240 46,279 3,443 139,063 Housing loans 41,174 33,261 41,563 51,420 0 167,418 Collateralised lending 3,719 5,985 1,676 2,018 0 13,398 Non-collateralised lending 746 2,094 352 1,769 0 4,961 Household 45,639 41,340 43,591 55,207 0 185,777 Public sector 676 706 82 2,652 3 4,119 Reverse repurchase agreements 0 28,629 0 0 0 28,629 Loans to the public by country 78,332 95,759 75,913 104,138 3,446 357,588 Of which loans at fair value 52,696 28,688 0 0 0 81,384 ===== SIDA 284 ===== Nordea Annual Report 2025 283 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans measured at amortised cost, broken down by sector and industry Gross Allowances Loans carrying amount31 Dec 2025, EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net loan losses1 Financial institutions 18,413 323 20 6 10 13 18,727 21 Agriculture 4,525 175 68 6 6 27 4,729 11 Crops, plantations and hunting 695 82 35 1 5 13 793 3 Animal husbandry 507 56 30 1 1 14 577 9 Fishing and aquaculture 3,323 37 3 4 0 0 3,359 -1 Natural resources 2,246 303 25 2 3 11 2,558 3 Paper and forest products 1,406 272 20 1 2 10 1,685 -1 Mining and supporting activities 584 30 4 1 0 1 616 1 Oil, gas and offshore 256 1 1 0 1 0 257 3 Consumer staples 5,814 308 26 4 9 10 6,125 6 Food processing and beverages 1,744 142 14 2 5 5 1,888 2 Household and personal products 734 37 4 0 1 3 771 1 Healthcare 3,336 129 8 2 3 2 3,466 3 Consumer discretionary and services 9,233 882 603 6 25 241 10,446 -8 Consumer durables 2,178 309 84 1 4 41 2,525 5 Media and entertainment 1,108 144 155 1 6 24 1,376 6 Retail trade 3,774 333 301 3 12 149 4,244 -19 Air transportation 188 1 3 0 0 1 191 1 Accommodation and leisure 1,161 91 59 1 3 26 1,281 -3 Telecommunication services 824 4 1 0 0 0 829 2 Industrials 28,535 3,388 686 25 105 266 32,213 -35 Materials 1,961 329 72 2 13 14 2,333 -4 Capital goods 3,706 620 44 3 19 18 4,330 -2 Commercial and professional services 5,970 551 126 6 16 48 6,577 -22 Construction 6,580 776 190 7 17 93 7,429 11 Wholesale trade 4,898 743 132 2 31 53 5,687 -11 Land transportation 2,617 153 44 2 4 19 2,789 -2 IT services 2,803 216 78 3 5 21 3,068 -5 Maritime 4,497 53 2 2 1 0 4,549 5 Shipbuilding 34 11 0 0 0 0 45 2 Shipping 4,000 28 1 2 0 0 4,027 3 Maritime services 463 14 1 0 1 0 477 0 Loans measured at amortised cost, broken down by sector and industry, cont. Gross Allowances Loans carrying amount31 Dec 2025, EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net loan losses1 Utilities and public service 7,312 186 93 4 4 31 7,552 0 Utilities distribution 4,207 113 86 2 2 28 4,374 -4 Power production 2,429 11 1 1 0 0 2,440 3 Public services 676 62 6 1 2 3 738 1 Real estate 41,590 1,472 149 13 13 66 43,119 0 Other industries 2,217 117 4 1 0 0 2,337 2 Total corporate 124,382 7,207 1,676 69 176 665 132,355 5 Housing loans 132,451 5,342 832 29 51 132 138,413 -11 Collateralised lending 12,168 1,002 354 15 20 112 13,377 -18 Non-collateralised lending 4,027 691 248 6 28 64 4,868 4 Household 148,646 7,035 1,434 50 99 308 156,658 -25 Public sector 3,603 56 22 1 0 1 3,679 -1 Loans to the public 276,631 14,298 3,132 120 275 974 292,692 -21 Loans to credit institutions and central banks 7,798 18 3 2 0 3 7,814 0 Total 284,429 14,316 3,135 122 275 977 300,506 -21 1) The table shows net loan losses related to on- and off-balance sheet exposures for the full year 2025. ===== SIDA 285 ===== Nordea Annual Report 2025 284 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans measured at amortised cost, broken down by sector and industry Gross Allowances Loans carrying amount31 Dec 2024, EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net loan losses1 Financial institutions 14,941 534 59 7 16 30 15,481 -9 Agriculture 4,304 238 76 6 15 31 4,566 -7 Crops, plantations and hunting 900 105 24 2 11 9 1,007 -11 Animal husbandry 632 85 50 1 3 22 741 5 Fishing and aquaculture 2,772 48 2 3 1 0 2,818 -1 Natural resources 2,173 292 23 3 4 10 2,471 -8 Paper and forest products 1,371 259 18 1 3 9 1,635 -5 Mining and supporting activities 427 29 4 1 1 1 457 0 Oil, gas and offshore 375 4 1 1 0 0 379 -3 Consumer staples 6,612 333 24 9 8 13 6,939 18 Food processing and beverages 1,722 201 10 3 4 6 1,920 11 Household and personal products 697 39 8 1 1 4 738 1 Healthcare 4,193 93 6 5 3 3 4,281 6 Consumer discretionary and services 9,353 1,090 470 12 36 226 10,639 -29 Consumer durables 2,227 312 89 2 5 51 2,570 -7 Media and entertainment 1,285 191 58 2 3 31 1,498 -6 Retail trade 3,587 458 265 6 23 116 4,165 -17 Air transportation 199 8 5 0 0 2 210 -1 Accommodation and leisure 1,202 117 47 2 4 21 1,339 3 Telecommunication services 853 4 6 0 1 5 857 -1 Industrials 25,620 3,661 600 36 100 292 29,453 -78 Materials 1,865 219 78 3 5 22 2,132 -12 Capital goods 3,085 618 31 4 15 17 3,698 6 Commercial and professional services 5,137 607 54 4 12 26 5,756 -22 Construction 6,237 946 204 12 29 95 7,251 -23 Wholesale trade 4,955 846 119 6 27 56 5,831 -25 Land transportation 2,216 189 28 4 6 14 2,409 9 IT services 2,125 236 86 3 6 62 2,376 -11 Maritime 4,552 156 51 0 1 31 4,727 12 Shipbuilding 7 128 0 0 1 0 134 -1 Shipping 4,165 14 51 0 0 31 4,199 13 Maritime services 380 14 0 0 0 0 394 0 Loans measured at amortised cost, broken down by sector and industry, cont. Gross Allowances Loans carrying amount31 Dec 2024, EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net loan losses1 Utilities and public service 6,567 147 108 5 3 63 6,751 -56 Utilities distribution 3,634 75 104 2 1 61 3,749 -57 Power production 2,222 15 2 1 0 0 2,238 -1 Public services 711 57 2 2 2 2 764 2 Real estate 36,395 1,811 191 19 20 59 38,299 35 Other industries 1,899 149 12 2 0 2 2,056 1 Total corporate 112,416 8,411 1,614 99 203 757 121,382 -121 Housing loans 125,917 5,955 717 32 74 139 132,344 -24 Collateralised lending 12,030 1,142 365 23 30 86 13,398 -12 Non-collateralised lending 4,047 835 229 19 50 81 4,961 -40 Household 141,994 7,932 1,311 74 154 306 150,703 -76 Public sector 4,087 14 20 1 0 1 4,119 -1 Loans to the public 258,497 16,357 2,945 174 357 1,064 276,204 -198 Loans to credit institutions and central banks 5,050 9 0 5 0 5 5,049 0 Total 263,547 16,366 2,945 179 357 1,069 281,253 -198 1) The table shows net loan losses related to on- and off-balance sheet exposures for the full year 2024. ===== SIDA 286 ===== Nordea Annual Report 2025 285 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value) 31 Dec 2025, EURm Denmark Finland Norway Sweden Total Financial institutions 10 1 3 6 20 Agriculture 130 34 2 0 166 Crops, plantations and hunting 82 18 1 0 101 Animal husbandry 48 15 0 0 63 Fishing and aquaculture 0 1 1 0 2 Natural resources 5 14 6 1 26 Paper and forest products 5 14 2 1 22 Mining and supporting activities 0 0 4 0 4 Oil, gas and offshore 0 0 0 0 0 Consumer staples 9 11 9 3 32 Food processing and beverages 2 5 8 0 15 Household and personal products 4 3 0 0 7 Healthcare 3 3 1 3 10 Consumer discretionary and services 193 171 26 230 620 Consumer durables 3 46 8 28 85 Media and entertainment 5 23 1 130 159 Retail trade 180 78 14 40 312 Air transportation 0 0 2 1 3 Accommodation and leisure 5 24 1 30 60 Telecommunication services 0 0 0 1 1 Industrials 162 174 189 206 731 Materials 14 8 6 45 73 Capital goods 16 25 1 5 47 Commercial and professional services 68 18 29 26 141 Construction 23 64 93 25 205 Wholesale trade 34 18 51 35 138 Land transportation 4 27 5 11 47 IT services 3 14 4 59 80 Maritime 0 2 0 0 2 Shipbuilding 0 0 0 0 0 Shipping 0 1 0 0 1 Maritime services 0 1 0 0 1 Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value), cont. 31 Dec 2025, EURm Denmark Finland Norway Sweden Total Utilities and public service 72 7 0 18 97 Utilities distribution 64 6 0 16 86 Power production 0 1 0 0 1 Public services 8 0 0 2 10 Real estate 28 108 28 10 174 Other industries 3 0 0 1 4 Total corporate 612 522 263 475 1,872 Housing loans 321 506 186 102 1,115 Collateralised lending 75 184 85 10 354 Non-collateralised lending 26 135 12 75 248 Household 422 825 283 187 1,717 Public sector 22 0 0 0 22 Total impaired loans 1,056 1,347 546 662 3,611 of which fair value 479 0 0 0 479 ===== SIDA 287 ===== Nordea Annual Report 2025 286 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value) 31 Dec 2024, EURm Denmark Finland Norway Sweden Total Financial institutions 50 3 5 2 60 Agriculture 146 24 14 1 185 Crops, plantations and hunting 64 7 5 1 77 Animal husbandry 80 17 9 0 106 Fishing and aquaculture 2 0 0 0 2 Natural resources 7 9 7 0 23 Paper and forest products 7 8 4 0 19 Mining and supporting activities 0 1 3 0 4 Oil, gas and offshore 0 0 0 0 0 Consumer staples 4 13 6 3 26 Food processing and beverages 1 7 1 1 10 Household and personal products 1 5 3 0 9 Healthcare 2 1 2 2 7 Consumer discretionary and services 146 142 30 165 483 Consumer durables 3 50 2 34 89 Media and entertainment 4 19 1 35 59 Retail trade 131 50 24 68 273 Air transportation 0 2 2 1 5 Accommodation and leisure 8 21 1 20 50 Telecommunication services 0 0 0 7 7 Industrials 134 174 170 146 624 Materials 59 5 8 6 78 Capital goods 7 23 1 3 34 Commercial and professional services 15 16 21 9 61 Construction 14 89 83 25 211 Wholesale trade 33 15 46 28 122 Land transportation 3 13 5 9 30 IT services 3 13 6 66 88 Maritime 0 0 51 0 51 Shipbuilding 0 0 0 0 0 Shipping 0 0 51 0 51 Maritime services 0 0 0 0 0 Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value), cont. 31 Dec 2024, EURm Denmark Finland Norway Sweden Total Utilities and public service 99 8 1 1 109 Utilities distribution 99 5 0 0 104 Power production 0 2 0 0 2 Public services 0 1 1 1 3 Real estate 26 123 49 13 211 Other industries 5 0 7 0 12 Total corporate 617 496 340 331 1,784 Housing loans 352 439 148 98 1,037 Collateralised lending 83 180 82 20 365 Non-collateralised lending 24 130 10 64 228 Household 459 749 240 182 1,630 Public sector 21 0 0 0 21 Total impaired loans 1,097 1,245 580 513 3,435 of which fair value 490 0 0 0 490 ===== SIDA 288 ===== Nordea Annual Report 2025 287 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans to the public measured at amortised cost 31 Dec 2025, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio, %2 Loans measured at amortised cost Financial institutions 21 11 20 11 29 6 10 13 65 18,727 Agriculture 11 23 68 143 39 6 6 27 40 4,729 Crops, plantations and hunting 3 38 35 431 19 1 5 13 37 793 Animal husbandry 9 156 30 506 16 1 1 14 47 577 Fishing and aquaculture -1 -3 3 9 4 4 0 0 0 3,359 Natural resources 3 12 25 97 16 2 3 11 44 2,558 Paper and forest products -1 -6 20 118 13 1 2 10 50 1,685 Mining and supporting activities 1 16 4 65 2 1 0 1 25 616 Oil, gas and offshore 3 117 1 39 1 0 1 0 0 257 Consumer staples 6 10 26 42 23 4 9 10 38 6,125 Food processing and beverages 2 11 14 74 12 2 5 5 36 1,888 Household and personal products 1 13 4 52 4 0 1 3 75 771 Healthcare 3 9 8 23 7 2 3 2 25 3,466 Consumer discretionary and services -8 -8 603 563 272 6 25 241 40 10,446 Consumer durables 5 20 84 327 46 1 4 41 49 2,525 Media and entertainment 6 44 155 1,102 31 1 6 24 15 1,376 Retail trade -19 -45 301 683 164 3 12 149 50 4,244 Air transportation 1 52 3 156 1 0 0 1 33 191 Accommodation and leisure -3 -23 59 450 30 1 3 26 44 1,281 Telecommunication services 2 24 1 12 0 0 0 0 0 829 Loans to the public measured at amortised cost, cont. 31 Dec 2025, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio, %2 Loans measured at amortised cost Industrials -35 -11 686 210 396 25 105 266 39 32,213 Materials -4 -17 72 305 29 2 13 14 19 2,333 Capital goods -2 -5 44 101 40 3 19 18 41 4,330 Commercial and professional services -22 -33 126 190 70 6 16 48 38 6,577 Construction 11 15 190 252 117 7 17 93 49 7,429 Wholesale trade -11 -19 132 229 86 2 31 53 40 5,687 Land transportation -2 -7 44 156 25 2 4 19 43 2,789 IT services -5 -16 78 252 29 3 5 21 27 3,068 Maritime 5 11 2 4 3 2 1 0 0 4,549 Shipbuilding 2 444 0 0 0 0 0 0 0 45 Shipping 3 7 1 2 2 2 0 0 0 4,027 Maritime services 0 0 1 21 1 0 1 0 0 477 Utilities and public service 0 0 93 123 39 4 4 31 33 7,552 Utilities distribution -4 -9 86 195 32 2 2 28 33 4,374 Power production 3 12 1 4 1 1 0 0 0 2,440 Public services 1 14 6 81 6 1 2 3 50 738 Real estate 0 0 149 34 92 13 13 66 44 43,119 Other industries 2 9 4 17 1 1 0 0 0 2,337 Total corporate 5 0 1,676 126 910 69 176 665 40 132,355 Housing loans -11 -1 832 60 212 29 51 132 16 138,413 Collateralised lending -18 -13 354 262 147 15 20 112 32 13,377 Non-collateralised lending 4 8 248 499 98 6 28 64 26 4,868 Household -25 -2 1,434 91 457 50 99 308 21 156,658 Public sector -1 -3 22 60 2 1 0 1 5 3,679 Loans to the public -21 -1 3,132 107 1,369 120 275 974 31 292,692 1) Including provisions for off-balance sheet exposures. 2) Allowances for stage 3 divided by exposures in stage 3. ===== SIDA 289 ===== Nordea Annual Report 2025 288 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans to the public measured at amortised cost 31 Dec 2024, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio, %2 Loans measured at amortised cost Financial institutions -9 -6 59 38 53 7 16 30 51 15,481 Agriculture -7 -15 76 165 52 6 15 31 41 4,566 Crops, plantations and hunting -11 -109 24 233 22 2 11 9 38 1,007 Animal husbandry 5 67 50 652 26 1 3 22 44 741 Fishing and aquaculture -1 -4 2 7 4 3 1 0 0 2,818 Natural resources -8 -32 23 92 17 3 4 10 43 2,471 Paper and forest products -5 -31 18 109 13 1 3 9 50 1,635 Mining and supporting activities 0 0 4 87 3 1 1 1 25 457 Oil, gas and offshore -3 -79 1 26 1 1 0 0 0 379 Consumer staples 18 26 24 34 30 9 8 13 54 6,939 Food processing and beverages 11 57 10 52 13 3 4 6 60 1,920 Household and personal products 1 14 8 108 6 1 1 4 50 738 Healthcare 6 14 6 14 11 5 3 3 50 4,281 Consumer discretionary and services -29 -27 470 431 274 12 36 226 48 10,639 Consumer durables -7 -27 89 339 58 2 5 51 57 2,570 Media and entertainment -6 -40 58 378 36 2 3 31 53 1,498 Retail trade -17 -41 265 615 145 6 23 116 44 4,165 Air transportation -1 -48 5 236 2 0 0 2 40 210 Accommodation and leisure 3 22 47 344 27 2 4 21 45 1,339 Telecommunication services -1 -12 6 70 6 0 1 5 83 857 Loans to the public measured at amortised cost, cont. 31 Dec 2024, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio, %2 Loans measured at amortised cost Industrials -78 -26 600 201 428 36 100 292 49 29,453 Materials -12 -56 78 361 30 3 5 22 28 2,132 Capital goods 6 16 31 83 36 4 15 17 55 3,698 Commercial and professional services -22 -38 54 93 42 4 12 26 48 5,756 Construction -23 -32 204 276 136 12 29 95 47 7,251 Wholesale trade -25 -43 119 201 89 6 27 56 47 5,831 Land transportation 9 37 28 115 24 4 6 14 50 2,409 IT services -11 -46 86 351 71 3 6 62 72 2,376 Maritime 12 25 51 107 32 0 1 31 61 4,727 Shipbuilding -1 -75 0 0 1 0 1 0 0 134 Shipping 13 31 51 121 31 0 0 31 61 4,199 Maritime services 0 0 0 0 0 0 0 0 0 394 Utilities and public service -56 -83 108 158 71 5 3 63 58 6,751 Utilities distribution -57 -152 104 273 64 2 1 61 59 3,749 Power production -1 -4 2 9 1 1 0 0 0 2,238 Public services 2 26 2 26 6 2 2 2 100 764 Real estate 35 9 191 50 98 19 20 59 31 38,299 Other industries 1 5 12 58 4 2 0 2 17 2,056 Total corporate -121 -10 1,614 132 1,059 99 203 757 47 121,382 Housing loans -24 -2 717 54 245 32 74 139 19 132,344 Collateralised lending -12 -9 365 270 139 23 30 86 24 13,398 Non-collateralised lending -40 -81 229 448 150 19 50 81 35 4,961 Household -76 -5 1,311 87 534 74 154 306 23 150,703 Public sector -1 -2 20 49 2 1 0 1 5 4,119 Loans to the public -198 -7 2,945 106 1,595 174 357 1,064 36 276,204 1) Including provisions for off-balance sheet exposures. 2) Allowances for stage 3 divided by exposures in stage 3. ===== SIDA 290 ===== Nordea Annual Report 2025 289 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans to the public measured at amortised cost, geographical breakdown 1 Gross Allowances EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net 31 Dec 2025, EURm Denmark 24,232 1,404 547 12 84 219 25,868 Finland 61,116 6,182 1,350 31 101 456 68,060 Norway 68,255 3,865 539 37 40 118 72,464 Sweden 104,745 2,676 626 36 45 153 107,813 Russia 1 0 0 0 0 0 1 US 3,087 9 1 1 1 0 3,095 Other 15,195 162 69 3 4 28 15,391 Total 276,631 14,298 3,132 120 275 974 292,692 31 Dec 2024, EURm Denmark 24,274 1,425 585 33 94 283 25,874 Finland 59,238 6,704 1,235 36 134 405 66,602 Norway 66,233 4,805 563 52 55 149 71,345 Sweden 92,626 3,243 497 49 68 202 96,047 Russia 1 0 0 0 0 0 1 US 2,837 5 1 0 1 0 2,842 Other 13,288 175 64 4 5 25 13,493 Total 258,497 16,357 2,945 174 357 1,064 276,204 1) Based on the customer’s country of domicile. ===== SIDA 291 ===== Nordea Annual Report 2025 290 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Carrying amount of loans measured at amortised cost, before allowances Central banks and credit institutions The public Total EURm Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2025 Opening balance at 1 Jan 2025 5,050 9 0 5,059 258,497 16,357 2,945 277,799 263,547 16,366 2,945 282,858 Origination and acquisition 5,701 3 – 5,704 77,824 1,330 127 79,281 83,525 1,333 127 84,985 Transfers between stage 1 and stage 2 (net) -1 1 – – -795 795 – – -796 796 – – Transfers between stage 2 and stage 3 (net) – 0 0 – – -312 312 – – -312 312 – Transfers between stage 1 and stage 3 (net) 0 – 0 – -196 – 196 – -196 – 196 – Repayments and disposals -7,618 -4 0 -7,622 -65,669 -3,602 -641 -69,912 -73,287 -3,606 -641 -77,534 Write-offs – – – – – – -360 -360 – – -360 -360 Other changes1 4,581 9 3 4,593 3,459 -377 530 3,612 8,040 -368 533 8,205 Translation differences 85 0 0 85 3,511 107 23 3,641 3,596 107 23 3,726 Closing balance at 31 Dec 2025 7,798 18 3 7,819 276,631 14,298 3,132 294,061 284,429 14,316 3,135 301,880 2024 Opening balance at 1 Jan 2024 3,079 8 4 3,091 254,282 16,199 2,453 272,934 257,361 16,207 2,457 276,025 Origination and acquisition 4,154 4 – 4,158 77,885 1,524 94 79,503 82,039 1,528 94 83,661 Transfers between stage 1 and stage 2 (net) -7 7 – – -1,586 1,586 – – -1,593 1,593 – – Transfers between stage 2 and stage 3 (net) – 0 0 – – -371 371 – – -371 371 – Transfers between stage 1 and stage 3 (net) 2 – -2 – -377 – 377 – -375 – 375 – Repayments and disposals -5,938 -6 -2 -5,946 -63,050 -3,560 -553 -67,163 -68,988 -3,566 -555 -73,109 Write-offs – – – – – – -226 -226 – – -226 -226 Other changes1 3,235 -4 0 3,231 -5,152 1,164 447 -3,541 -1,917 1,160 447 -310 Translation differences 525 0 0 525 -3,505 -185 -18 -3,708 -2,980 -185 -18 -3,183 Closing balance at 31 Dec 2024 5,050 9 0 5,059 258,497 16,357 2,945 277,799 263,547 16,366 2,945 282,858 1) Other changes are mainly related to increased utilisation of credits granted in earlier years and revolving products. ===== SIDA 292 ===== Nordea Annual Report 2025 291 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Movements in allowance accounts for loans measured at amortised cost Central banks and credit institutions The public Total EURm Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2025 Opening balance at 1 Jan 2025 -5 0 -5 -10 -174 -357 -1,064 -1,595 -179 -357 -1,069 -1,605 Origination and acquisition 0 0 0 0 -32 -9 -12 -53 -32 -9 -12 -53 Transfers from stage 1 to stage 2 0 0 – 0 6 -72 – -66 6 -72 – -66 Transfers from stage 1 to stage 3 0 – 0 0 1 – -54 -53 1 – -54 -53 Transfers from stage 2 to stage 1 0 0 – 0 -4 55 – 51 -4 55 – 51 Transfers from stage 2 to stage 3 – 0 0 0 – 38 -112 -74 – 38 -112 -74 Transfers from stage 3 to stage 1 0 – 0 0 -1 – 5 4 -1 – 5 4 Transfers from stage 3 to stage 2 – 0 0 0 – -7 28 21 – -7 28 21 Changes in credit risk without stage transfer 0 0 2 2 42 30 23 95 42 30 25 97 Repayments and disposals 3 0 0 3 43 49 52 144 46 49 52 147 Write-off through decrease in allowance account – – 0 0 – – 166 166 – – 166 166 Translation differences 0 0 0 0 -1 -2 -6 -9 -1 -2 -6 -9 Closing balance at 31 Dec 2025 -2 0 -3 -5 -120 -275 -974 -1,369 -122 -275 -977 -1,374 2024 Opening balance at 1 Jan 2024 -5 0 -16 -21 -201 -410 -1,021 -1,632 -206 -410 -1,037 -1,653 Origination and acquisition -1 0 0 -1 -50 -22 -11 -83 -51 -22 -11 -84 Transfers from stage 1 to stage 2 0 0 – 0 9 -143 – -134 9 -143 – -134 Transfers from stage 1 to stage 3 0 – 0 0 1 – -145 -144 1 – -145 -144 Transfers from stage 2 to stage 1 0 0 – 0 -8 75 – 67 -8 75 – 67 Transfers from stage 2 to stage 3 – 0 0 0 – 27 -155 -128 – 27 -155 -128 Transfers from stage 3 to stage 1 0 – 0 0 0 – 6 6 0 – 6 6 Transfers from stage 3 to stage 2 – 0 0 0 – -11 36 25 – -11 36 25 Changes in credit risk without stage transfer -1 0 10 9 20 30 34 84 19 30 44 93 Repayments and disposals 2 0 1 3 52 95 97 244 54 95 98 247 Write-off through decrease in allowance account – – – – – – 85 85 – – 85 85 Translation differences 0 0 0 0 3 2 10 15 3 2 10 15 Closing balance at 31 Dec 2024 -5 0 -5 -10 -174 -357 -1,064 -1,595 -179 -357 -1,069 -1,605 The tables show the changes in exposure/allowances for each stage during the year. If an exposure is moved to e.g. stage 2 from stage 1, there will be a reversal in stage 1 and an increase in stage 2. ===== SIDA 293 ===== Nordea Annual Report 2025 292 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Movements in provisions for off-balance sheet items EURm Stage 1 Stage 2 Stage 3 Total 2025 Opening balance at 1 Jan 2025 58 114 21 193 Origination and acquisition 3 2 0 5 Transfers from stage 1 to stage 2 -2 28 – 26 Transfers from stage 1 to stage 3 0 – 4 4 Transfers from stage 2 to stage 1 0 -13 – -13 Transfers from stage 2 to stage 3 – -3 6 3 Transfers from stage 3 to stage 1 0 – 0 0 Transfers from stage 3 to stage 2 – 1 -2 -1 Changes in credit risk without stage transfer -14 0 4 -10 Repayments and disposals -17 -29 -4 -50 Write-off through decrease in allowance account – – 0 0 Translation differences 0 1 0 1 Closing balance at 31 Dec 2025 28 101 29 158 2024 Opening balance at 1 Jan 2024 52 94 22 168 Origination and acquisition 12 17 0 29 Transfers from stage 1 to stage 2 -2 47 – 45 Transfers from stage 1 to stage 3 0 – 4 4 Transfers from stage 2 to stage 1 1 -33 – -32 Transfers from stage 2 to stage 3 – -2 4 2 Transfers from stage 3 to stage 1 0 – -1 -1 Transfers from stage 3 to stage 2 – 1 -2 -1 Changes in credit risk without stage transfer 9 6 -4 11 Repayments and disposals -13 -15 -2 -30 Write-off through decrease in allowance account – – 0 0 Translation differences -1 -1 0 -2 Closing balance at 31 Dec 2024 58 114 21 193 2.5 Sensitivities One important factor in estimating expected credit losses in accordance with IFRS 9 is to assess what constitutes a significant increase in credit risk. To understand the sensi- tivities to these triggers, Nordea has calculated model-based provisions under two different scenarios: Triggers Scenario 1 Scenario 2 Retail portfolios Relative threshold 200% 150% 250% Non-retail portfolios Relative threshold 150% 100% 200% Absolute 12-month threshold 20bp 15bp 25bp Absolute lifetime threshold 400bp 350bp 450bp Notching1 1–6 1 less 1 more 1) For exposures with initial recognition before the transition to IFRS 9 (1 Jan 2018), stage classification is decided based on changes in rating grades. The trigger in scenario 1 is set at one notch less than in the model actually used and in scenario 2 the trigger is set at one notch more than in the model used. The provisions would have increased by EUR 12m (EUR 11m) in scenario 1 and decreased by EUR 9m (EUR 12m) in scenario 2. For more information on the rating scale and average PDs, see the tables “Rating/scoring information on loans measured at amortised cost”. The provisions are sensitive to rating migration even if the triggers are not reached. The table below shows the impact on provisions from a one notch downgrade of all Nordea’s exposures. It includes both the impact of the higher risk for all exposures and the impact of transferring exposures from stage 1 to stage 2 that reach the trigger. It also includes the impact of exposures with one rating grade above default going into default, which is estimated at EUR 30m (EUR 44m). This figure is based on calcula- tions with the statistical model rather than individual esti- mates that would be the case in reality for material defaulted loans. Sensitivities 31 Dec 2025 31 Dec 2024 EURm Recognised provisions Provisions if one notch downgrade Recognised provisions Provisions if one notch downgrade Personal Banking 371 447 388 457 Business Banking 840 958 1,040 1,155 Large Corporates & Institutions 295 328 348 376 Other 28 33 24 31 Total 1,534 1,766 1,800 2,019 ===== SIDA 294 ===== Nordea Annual Report 2025 293 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. 2.6 Forward-looking information Forward-looking information is used for both assessing significant increases in credit risk and calculating expected credit losses. Nordea uses three macroeconomic scenarios: a baseline scenario, a favourable scenario and an adverse scenario. During the first half of 2025, in response to esca- lated trade tensions and heightened macroeconomic uncertainty, Nordea temporarily applied a 100% weighting to the adverse scenario in its expected credit loss (ECL) calculations. As uncertainty diminished in the third quar- ter, Nordea reverted to its standard scenario weightings: baseline 60%, adverse 20% and favourable 20% (the same weightings as at the end of 2024). The macroeconomic scenarios are provided by Group Risk in Nordea, based on the Oxford Economics Model. The forecast is a combination of modelling and expert judgement, subject to thorough checks and quality control processes. The model has been built to give a good description of the historical relationships between eco- nomic variables and to capture the key linkages between those variables. The forecast period in the model is ten years. For periods beyond, a long-term average is used in the ECL calculations. The macroeconomic scenarios reflect Nordea’s view of how the Nordic economies might develop in the light of continued geopolitical uncertainty, trade conflicts and weak growth in major European economies. When devel- oping the scenarios and determining the relative weight- ing between them, Nordea took into account projections made by Nordic central banks, Nordea Research and the European Central Bank. The baseline scenario foresees moderate growth in the Nordic economies in 2026, supported by lower inflation and lower interest rates. The uncertainty around foreign trade has receded with the conclusion of the EU-US trade agreement. The expansion is expected to continue in Denmark, Finland and Sweden in 2027 and 2028. The exception is Norway, where economic growth in the com- ing years is expected to be near zero due to falling invest- ment in the offshore sector. Growth in the Norwegian mainland economy will continue at a modest pace. The accelerating pace of growth is expected to drive unemployment down in Finland and Sweden, while unem- ployment in Denmark and Norway will remain largely unchanged. Home prices are expected to continue grow- ing in the coming years, supported by lower interest rates. The risks around the baseline forecast are tilted to the downside, with the upside scenario deviating less from the baseline than the adverse. Nordea’s two alternative macroeconomic scenarios cover a range of plausible risk factors which may cause growth to deviate from the baseline scenario. A renewed escalation of the trade conflict between the US and sev- eral countries could trigger a European and Nordic reces- sion as firms postpone investments, exports slow down and households cut spending due to weakening labour markets. Growth may also be depressed by escalating hybrid warfare, which could weigh on business and con- sumer confidence. Central banks may regard the inflation- ary impulse from higher tariffs as temporary and continue cutting interest rates, with rates moving lower than in the baseline scenario. Lower tariffs and an unwinding of trade policy uncertainty, on the other hand, may lead to a stronger recovery than assumed in the baseline scenario. ===== SIDA 295 ===== Nordea Annual Report 2025 294 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scenarios and provisions 2025 2026 2027 2028 Unweighted ECL, EURm Probability weight Model-based allowances/ provisions, EURm Adjustment model- based allowances/ provisions, EURm Individual allowances/ provisions, EURm Total allowances/ provisions, EURm Denmark Favourable scenario GDP growth, % 3.6 2.1 1.9 102 20% Unemployment, % 2.5 2.4 2.4 Change in household consumption, % 2.3 2.4 2.1 Change in house prices, % 4.6 3.6 2.0 Baseline scenario GDP growth, % 2.0 1.7 1.7 107 60% 109 65 202 376 Unemployment, % 2.9 2.9 2.9 Change in household consumption, % 2.0 2.0 2.0 Change in house prices, % 3.6 3.3 2.0 Adverse scenario GDP growth, % -0.9 1.0 1.6 120 20% Unemployment, % 4.6 4.7 4.7 Change in household consumption, % 0.5 1.0 1.6 Change in house prices, % -5.4 1.1 2.0 Finland Favourable scenario GDP growth, % 2.2 2.3 2.0 285 20% Unemployment, % 9.6 8.8 8.8 Change in household consumption, % 1.7 1.9 1.8 Change in house prices, % 3.8 2.8 2.0 Baseline scenario GDP growth, % 1.3 1.7 1.7 287 60% 288 107 228 623 Unemployment, % 9.7 9.1 9.1 Change in household consumption, % 1.5 1.7 1.7 Change in house prices, % 2.0 2.0 2.0 Adverse scenario GDP growth, % -1.7 1.0 1.1 296 20% Unemployment, % 11.2 10.9 10.8 Change in household consumption, % -0.7 1.8 1.1 Change in house prices, % -2.2 1.0 2.0 ===== SIDA 296 ===== Nordea Annual Report 2025 295 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scenarios and provisions 2025, cont. 2026 2027 2028 Unweighted ECL, EURm Probability weight Model-based allowances/ provisions, EURm Adjustment model- based allowances/ provisions, EURm Individual allowances/ provisions, EURm Total allowances/ provisions, EURm Norway Favourable scenario GDP growth, % 3.0 -0.4 0.1 86 20% Unemployment, % 3.8 3.9 3.9 Change in household consumption, % 2.6 1.9 1.7 Change in house prices, % 5.2 4.9 4.0 Baseline scenario GDP growth, % 1.2 0.2 -0.3 88 60% 88 59 71 218 Unemployment, % 4.3 4.2 4.2 Change in household consumption, % 2.5 1.8 1.5 Change in house prices, % 4.6 4.1 2.0 Adverse scenario GDP growth, % -0.8 0 0.5 92 20% Unemployment, % 5.5 5.5 5.3 Change in household consumption, % 2.2 1.1 1.1 Change in house prices, % -6.4 0.5 1.9 Sweden Favourable scenario GDP growth, % 3.6 3.0 2.2 89 20% Unemployment, % 8.1 7.5 7.0 Change in household consumption, % 3.2 2.9 2.6 Change in house prices, % 5.6 4.7 2.3 Baseline scenario GDP growth, % 2.5 2.1 2.1 91 60% 92 76 141 309 Unemployment, % 8.4 7.9 7.5 Change in household consumption, % 2.9 2.5 2.5 Change in house prices, % 2.7 4.6 2.0 Adverse scenario GDP growth, % -1.5 1.6 1.6 99 20% Unemployment, % 11.4 11.1 10.6 Change in household consumption, % 0.8 0.9 1.6 Change in house prices, % -4.1 0.6 1.9 Non-Nordic 1 3 4 8 Total 578 310 646 1,534 ===== SIDA 297 ===== Nordea Annual Report 2025 296 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scenarios and provisions 2024 2025 2026 2027 Unweighted ECL, EURm Probability weight Model-based allowances/ provisions, EURm Adjustment model- based allowances/ provisions, EURm Individual allowances/ provisions, EURm Total allowances/ provisions, EURm Denmark Favourable scenario GDP growth, % 3.6 1.8 1.7 118 20% Unemployment, % 2.5 2.5 2.4 Change in household consumption, % 2.1 2.1 1.9 Change in house prices, % 5.0 3.8 2.0 Baselin e scenario GDP growth, % 2.3 1.5 1.5 123 60% 125 112 236 473 Unemployment, % 2.9 2.9 2.9 Change in household consumption, % 1.8 1.8 1.8 Change in house prices, % 3.2 3.2 2.0 Adverse scenario GDP growth, % -0.7 0.8 1.5 137 20% Unemployment, % 4.6 4.7 4.7 Change in household consumption, % 0.2 0.7 1.6 Change in house prices, % -4.3 1.1 2.0 Finland Favourable scenario GDP growth, % 3.0 2.2 1.2 293 20% Unemployment, % 7.8 7.4 7.5 Change in household consumption, % 0.8 1.5 1.2 Change in house prices, % 3.8 2.6 2.0 Baseline scenario GDP growth, % 1.1 1.8 1.8 297 60% 297 130 189 616 Unemployment, % 8.1 7.8 7.8 Change in household consumption, % 0.5 1.3 1.3 Change in house prices, % 2.4 2.2 2.0 Adverse scenario GDP growth, % -1.7 0.8 1.3 303 20% Unemployment, % 9.2 9.1 9.1 Change in household consumption, % -0.4 0.5 0.8 Change in house prices, % -2.5 1.0 2.0 ===== SIDA 298 ===== Nordea Annual Report 2025 297 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scenarios and provisions 2024, cont. 2025 2026 2027 Unweighted ECL, EURm Probability weight Model-based allowances/ provisions, EURm Adjustment model- based allowances/ provisions, EURm Individual allowances/ provisions, EURm Total allowances/ provisions, EURm Norway Favourable scenario GDP growth, % 2.2 1.4 0.8 84 20% Unemployment, % 3.8 3.8 3.6 Change in household consumption, % 2.7 2.3 1.9 Change in house prices, % 4.2 2.8 2.6 Baseline scenario GDP growth, % 1.8 0.5 0.5 85 60% 86 108 99 293 Unemployment, % 4.0 4.1 4.0 Change in household consumption, % 2.7 2.2 1.9 Change in house prices, % 2.8 2.5 2.6 Adverse scenario GDP growth, % -1.7 0.2 0.5 91 20% Unemployment, % 4.8 5.0 4.8 Change in household consumption, % 2.4 1.6 1.5 Change in house prices, % -5.8 0.5 1.9 Sweden Favourable scenario GDP growth, % 3.5 2.6 1.8 90 20% Unemployment, % 8.0 7.6 7.6 Change in household consumption, % 3.1 3.2 3.0 Change in house prices, % 5.1 2.9 2.0 Baseline scenario GDP growth, % 2.1 2.3 1.8 92 60% 93 138 179 410 Unemployment, % 8.4 8.0 8.0 Change in household consumption, % 2.8 2.9 2.9 Change in house prices, % 3.6 2.6 2.0 Adverse scenario GDP growth, % -1.8 1.3 1.8 100 20% Unemployment, % 10.7 10.6 10.4 Change in household consumption, % 1.1 1.5 2.3 Change in house prices, % -3.2 0.6 2.0 Non-Nordic 11 -3 0 8 Total 612 485 703 1,800 ===== SIDA 299 ===== Nordea Annual Report 2025 298 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. 2.7 Management judgements At the end of the year adjustments to model-based allow- ances/provisions amounted to EUR 310m, including man- agement judgement allowances of EUR 276m. The management judgement allowances of EUR 276m are intended to cover excess losses from macroeconomic shocks and uncertainties that are regarded as extraordi- nary in relation to a normal contraction in the economic cycle and are therefore not adequately captured by the existing IFRS 9 ECL modelling as well as known IFRS 9 model and data issues to be captured in later model updates. The uncertainties are mainly related to geopolitical and macroeconomic conditions. The level at the end of 2025 compared to the end of 2024 was reduced by EUR 138m, reflecting a continued decline in the financial and economic risks influencing loan losses, driven by decreased uncertainty and the per- sistence of strong credit quality. Management judgement allowances coverage EURm 31 Dec 2025 31 Dec 2024 Related to corporate exposures in BB 98 151 Related to corporate exposures in LC&I 79 111 Related to household exposures 99 152 Total management judgement allowances 276 414 2.8 Rating and scoring distribution One way of assessing credit quality is through an analysis of the distribution across rating grades for rated corporate customers and institutions as well as across risk grades for scored household and small business customers, that is, retail exposures. The average credit quality was roughly sta- ble in both the corporate and retail portfolios in 2025. Exposure-wise, 12% (10%) of corporate customer exposures migrated upwards, while 13% (18%) was downrated. 91% (91%) of performing corporate exposures were rated 4- or higher, with an average rating for the portfolio of 4+. 91% (89%) of the performing retail exposures were scored C- or higher, which indicates a probability of default of 1.9% or lower. The total effect on the credit risk exposure amount (REA) from migration was an increase of approximately 0.9% in 2025. Rating information for loans measured at amortised cost EURm Rating grade1 Average PD2 (%) Gross carrying amount Stage 1 Stage 2 Stage 3 Total Allowances 31 Dec 2025 7 0.00 9,872 51 0 9,923 1 6 0.02 21,075 43 0 21,118 2 5 0.07 40,436 159 1 40,596 13 4 0.29 53,823 1,258 3 55,084 43 3 3.43 7,732 2,253 4 9,989 77 2 15.61 406 1,665 11 2,082 58 1 55.49 1,872 1,065 18 2,955 44 Standardised/Unrated 0.14 3,614 802 267 4,683 53 0 (default) 100.00 88 62 1,497 1,647 668 Total 138,918 7,358 1,801 148,077 959 31 Dec 2024 7 0.00 7,218 11 0 7,229 1 6 0.02 19,157 56 0 19,213 4 5 0.07 37,462 129 0 37,591 21 4 0.29 46,191 1,286 1 47,478 54 3 3.63 6,228 2,715 1 8,944 68 2 14.32 59 1,988 33 2,080 102 1 48.31 1,747 1,205 15 2,967 59 Standardised/Unrated 0.10 7,227 1,166 428 8,821 115 0 (default) 100.00 11 43 1,329 1,383 718 Total 125,300 8,599 1,807 135,706 1,142 ===== SIDA 300 ===== Nordea Annual Report 2025 299 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scoring information for loans measured at amortised cost EURm Scoring grade1 Average PD2 (%) Gross carrying amount Stage 1 Stage 2 Stage 3 Total Allowances 31 Dec 2025 A 0.10 62,970 142 8 63,120 9 B 0.21 36,333 284 9 36,626 9 C 0.61 24,817 636 9 25,462 18 D 1.51 16,212 1,559 55 17,826 38 E 9.48 3,795 2,548 15 6,358 42 F 23.21 855 1,564 16 2,435 36 Standardised/Unrated N.A. 280 11 19 310 3 0 (default) 100.00 249 214 1,203 1,666 260 Total 145,511 6,958 1,334 153,803 415 31 Dec 2024 A 0.11 60,794 177 4 60,975 11 B 0.28 35,988 287 2 36,277 15 C 0.83 18,084 644 8 18,736 20 D 3.58 18,054 1,553 8 19,615 43 E 16.83 3,223 2,956 8 6,187 53 F 30.12 809 1,944 7 2,760 57 Standardised/Unrated N.A. 1,118 34 15 1,167 4 0 (default) 100.00 177 172 1,086 1,435 260 Total 138,247 7,767 1,138 147,152 463 1) The stage classification and calculated provision for each exposure are based on the situation as at the end of October 2025 (October 2024), while the exposure amount and rating grades are based on the situation as at the end of December 2025 (December 2024). Some of the exposures in default according to the rating grade as at the end of December were not in default as at the end of October, which is reflected in the stage classification. 2) Average PD excluding Nordea Finance Equipment AS. Rating information for off-balance sheet items EURm Rating grade Nominal amount Stage 1 Stage 2 Stage 3 Total Provisions 31 Dec 2025 7 10,661 0 0 10,661 0 6 13,260 0 0 13,260 1 5 38,259 20 0 38,279 7 4 23,179 725 0 23,904 13 3 2,878 1,614 1 4,493 19 2 0 723 111 834 20 1 1 496 1 498 2 Standardised/Unrated 1,056 429 10 1,495 9 0 (default) 0 0 363 363 14 Total 89,294 4,007 486 93,787 85 31 Dec 2024 7 9,203 0 0 9,203 2 6 11,301 301 0 11,602 5 5 37,990 148 0 38,138 16 4 21,160 368 0 21,528 16 3 3,521 1,319 4 4,844 20 2 44 808 0 852 23 1 1 503 0 504 3 Standardised/Unrated 1,113 351 4 1,468 14 0 (default) 6 2 323 331 13 Total 84,339 3,800 331 88,470 112 ===== SIDA 301 ===== Nordea Annual Report 2025 300 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scoring information for off-balance sheet items EURm Scoring grade Nominal amount Stage 1 Stage 2 Stage 3 Total Provisions 31 Dec 2025 A 6,415 257 0 6,672 1 B 8,087 36 0 8,123 3 C 2,676 204 0 2,880 5 D 1,329 229 1 1,559 10 E 657 560 2 1,219 30 F 8 83 1 92 5 Standardised/Unrated 172 3 0 175 0 0 (default) 0 0 48 48 19 Total 19,344 1,372 52 20,768 72 31 Dec 2024 A 7,547 24 0 7,571 1 B 6,619 33 0 6,652 5 C 1,926 135 0 2,061 5 D 1,034 181 0 1,215 7 E 17 669 0 686 38 F 3 104 0 107 5 Standardised/Unrated 20 447 0 467 1 0 (default) 2 6 48 56 19 Total 17,168 1,599 48 18,815 81 Rating distribution IRB corporate customers 1 0 5 10 15 1-11+2-22+3-33+4-44+5-55+6-66+ % 2025 2024 1) Defaulted loans are not included in the rating distribution. Risk grade distribution IRB retail customers 1 0 5 10 15 20 25 30 F-FF+E-EE+D-DD+C-CC+B-BB+A-AA+ % 2025 2024 1) Defaulted loans are not included in the risk grade distribution. Scoring grades have been converted to risk grades. ===== SIDA 302 ===== Nordea Annual Report 2025 301 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. 3. Counterparty credit risk Counterparty credit risk is the risk that Nordea’s counter- party in a derivative contract defaults prior to maturity of the contract and that Nordea at that time has a claim on the counterparty. In addition, counterparty credit risk also exists in repurchasing agreements and other securities financing contracts. Nordea trades derivative contracts based on customer demand and the banks’ balance sheet risks. Furthermore, Nordea may, within clearly defined risk limits, use deriva- tives to hedge or take open positions in the bank’s opera- tions. Derivatives affect counterparty credit risk, market risk as well as operational and liquidity risk. Counterparty credit risk, including that towards central counterparties (CCPs), is managed subject to credit limits like other credit exposures and is treated accordingly. To assess the counterparty credit risk towards CCPs, clearing limits are based on the potential size of the clearing related exposure on each CCP, taking regulatory require- ments and the market development into account. Nordea mostly clears OTC trades as a clearing member of qualify- ing central clearing parties (QCCP) that meet specific reg- ulatory and operational standards set by financial authori- ties, but also through clearing brokers if so required. For information about financial instruments subject to master netting agreements, see Note G3.5 “Offsetting”. 4. Market risk Market risk is the risk of loss on Nordea’s positions in either the trading book or the non-trading book as a result of changes in market rates and parameters that affect market values or net interest income flows. Market risk exists irrespective of the accounting treatment of the positions. The market risk appetite for the Group is expressed through risk appetite statements. In approving the risk appetite statements, the Group Board takes note of the Risk Appetite Limits and Triggers which is delegated by Group Board to the Board Risk Committee. The statements are defined for trading and banking books. The second line of defence ensures that the risk appe- tite is appropriately translated by the Risk Committee into specific risk appetite limits for the business areas and Group Treasury. As part of the overall Risk Appetite Framework (RAF), holistic and bespoke stress tests are used to measure the market risk appetite and calibrate limits to monitor and control the full set of material market risk factors to which Nordea is exposed. 4.1 Traded market risk Traded market risk mainly arises from customer-driven trading activities and related hedges in Nordea Markets, which is part of Large Corporates & Institutions. Nordea Markets takes on market risks as part of its business model when offering corporate and institutional customers a range of fixed income, equity, foreign exchange, commodity and structured products. The mar- ket risks to which Nordea Markets is exposed include interest rate risk, credit spread risk, equity risk, foreign exchange risk, commodity risk and inflation risk. Furthermore, Nordea is a major mortgage lender in the Nordic countries and a major market maker in Nordic cor- porate and government bonds. Holding inventory is neces- sary to be able to provide secondary market liquidity. As a result, Nordea’s business model gives rise to a concentra- tion of Nordic mortgage and corporate bonds as well as local market currencies. 4.2 Non-traded market risk The non-traded market risks that Nordea is exposed to are interest rate risk, customer behavioural risk, credit spread risk, foreign exchange risk (both structural and non-structural) and equity risk. Non-traded market risk arises from the core banking business of Nordea, related hedges and regulatory or other external requirements (e.g. the liquid asset buffer). Group Treasury is responsible for the risk management of all non-traded market risk exposures on the Group’s balance sheet. To ensure a clear division of responsibilities within Group Treasury the banking book risk management is divided across several frameworks – each with a clear risk mandate and specific limits and controls. Interest rate risk in the banking book (IRRBB) is the cur- rent or prospective risk to Nordea’s capital and/or income arising from adverse movements in interest rates and cus- tomer behaviour. Business areas transfer their banking book risk exposures to Group Treasury through an internal funds transfer pricing framework. Market risks are man- aged centrally and include gap risk, spread risks, basis risks, credit spread risk, behavioural risk and non-linear risks. The effectiveness of hedging risk exposures from core banking activities, e.g. loans and deposits, may be adversely impacted by the discretion held by customers in respect of their contractual obligations with Nordea. Liquid assets are managed in accordance with the liquidity buffer and pledge/collateral frameworks. Most of the directional interest rate risk arising from bond holdings is hedged primarily using maturity-matched Interest rate payer swaps and to a smaller degree overnight indexed payer swaps. Forward rate agreements and listed futures contracts can also be used to hedge credit spread and interest rate fixing risks. 4.3 Measurement of market risk Nordea uses several quantitative risk measurement meth- ods for traded market risk: Value-at-risk (VaR), stress test- ing, sensitivity analysis, parametric methods and Monte Carlo simulation. VaR is based on historical scenarios and is the primary market risk measurement, complemented by stress test- ing. Nordea calculates VaR using historical simulation. The current portfolio is revalued based on historical daily changes in market prices, rates and other market risk fac- tors observed during the last 500 business days and trans- lated into changes in current market risk factors. Nordea uses absolute, relative and mixed translation methods for different risk categories. The revaluation of the current portfolio is performed for each position using either a lin- ear approximation method or a full revaluation method, depending on the nature of the position. Parametric methods are used to capture equity event risk, including the impact of defaults on equity-related positions (these risks are part of the specific equity risk). Monte Carlo simulation is used in the incremental risk measure model and the comprehensive risk measure model to capture default and migration risks. The VaR, stressed VaR, equity event risk, incremental risk measure and comprehensive risk measure models are approved by Nordea’s regulator, the ECB, for use in calcu- lating market risk own funds requirements under the internal model approach (IMA). The same models, with the same calibration and settings as used for regulatory capital requirements, are used for internal risk manage- ment purposes. The standardised approach is applied to risk exposure which is not covered by the IMA. It is used to calculate the market risk exposures for commodity-related products, the specific risk for mortgage and government bonds, com- mercial paper, credit/rate hybrids and credit spread options. Furthermore, the standardised approach is used to cal- culate equity risk related to structured equity and Tier 1 and Tier 2 bonds. Non-Traded Market risk is measured, monitored and managed using three key risk metrics: • Economic Value Risk (IRRBB and CSRBB). • Net interest income risk (IRRBB and CSRBB). • Fair Value Stress Loss. The three different risk metrics are used to assess differing aspects of the manifestation of interest rate risk. These are described in more detail below. Economic Value (EV) of equity stress tests considers the change in the EV of banking book assets, liabilities and interest-bearing derivative exposures resulting from inter- est rate movements, independent of accounting classifica- tion and ignoring credit spreads and commercial margins. The model assumes a run-off balance sheet and includes behavioural modelling for non-maturing deposits and prepayments. The net interest income (NII) risk metric measures the change in net interest income relative to a baseline sce- nario, resulting in a NII risk value over a one-year horizon. The model uses a constant balance sheet assumption, implied forward rates and behavioural modelling for non-maturing deposits and prepayments. The Fair Value Stress Loss (FVSL) risk measure consid- ers the potential revaluation risk relating to positions held under fair value accounting classifications. EV and Earnings sensitivities are measured using parallel shocks, whereas FVSL sensitivities are measured using internally defined Risk Appetite Framework (RAF) scenar- ios. The exposure limit is measured against the worst events and designed to test specific exposures that are, or may be, ===== SIDA 303 ===== Nordea Annual Report 2025 302 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. held under the approved mandate. The scenarios are aligned across the risk types EV, NII and FVSL. The FVSL RAF scenarios are applied to the banking book and the trading book portfolios, and to the Defined Pension Schemes fair value, and the Board risk appetite limit are set on each of these metrics. The FVSL metrics are monitored daily. A range of EV risk scenarios are estimated daily for management information purposes, but fully calculated and monitored monthly against risk appetite limits. The NII and Earnings risk metrics are monitored monthly. The measurement of Interest Rate Risk in the Banking Book (IRRBB) is dependent on key assumptions applied in the models. The most material assumptions relate to the modelling of embedded behavioural options in both assets and liabilities. The behavioural option held by Nordea’s lending customers to execute early loan prepayments is estimated using prepayment models. On the liability side, Nordea has a choice to change deposit rates, and custom- ers have a choice to withdraw non-maturing deposits on any given day. Both embedded options are modelled using non-maturing deposit models. Both assumptions are calcu- lated based on the historical average by core asset and lia- bility class features. Assets and liabilities are grouped according to key metrics, including product type, geogra- phy and customer segment. Assumptions are based on his- torically observed values. Regular back-testing and model monitoring are performed for both prepayment models and non-maturing deposit models to ensure that the mod- els remain accurate. The Pillar 2 IRRBB capital is based on Earnings and EV risk, with net profit and dividends affecting the resulting capital change. Earnings risk captures the impact of inter- est rate and credit spread changes on future NII and gains, and the resulting implications for internal capital buffer levels. EV risk captures the adverse impact under Nordea’s Risk Appetite Framework or the regulatory Basel (com- bined with CS+50bp) scenarios when combined IRRBB EV and CSRBB EV results indicate a loss to avoid offsetting Earnings losses with EV gains that are not visible in the bank’s financial reports. Nordea is exposed to structural FX risk, defined as the mismatch between the currency composition of its Common Equity Tier 1 (CET1) capital and risk exposure amounts. The CET1 capital is largely denominated in euro with the only significant non-euro equity amounts stem- ming from mortgage subsidiaries. Therefore, changes in FX rates can negatively impact Nordea’s CET1 ratio. 4.4 Market risk analysis The market risk in Nordea’s trading book is presented in the table below. The average market risk measured by VaR was EUR 35.2m in 2025 (the average in 2024 was EUR 42.1m) and primarily driven by interest rate risk. Average stressed VaR was EUR 47.8m in 2025 (the average in 2024 was EUR 49.6m). The peak in VaR as well as stressed VaR was reached in the first quarter. VaR and stressed VaR are pri- marily driven by market risk in the Northern European and Nordic countries. At the end of 2025 the incremental risk charge (IRC) was higher than at the end of 2024. The lowest exposure occurred during the first quarter of 2025 and the highest occurred during the second quarter of 2025. The average IRC significantly increased compared with the previous year. At the end of 2025 the comprehensive risk charge (CRC) was significantly higher than at the end of 2024. Both the lowest and the highest exposure occurred during the first quarter of 2025. The average CRC for 2025 increased compared with 2024. At the end of the year the worst loss on the fair value part of the banking book portfolio according to the internal risk appetite scenarios for FV stress loss was driven by an inter- nal scenario of widening Scandinavian mortgages and gov- ernment spreads and falling equity prices, implying a loss of EUR 590m (EUR 546m on the previous year) on the banking book FV positions. The banking book is usually long mort- gages and government bonds in the liquidity buffer and long equity risk on the long-term illiquid expoures, which explains the loss in this worst-case scenario. The trading and banking book market risks remained within Nordea’s risk appetite throughout 2025. Market risk figures for the trading book 1 31 Dec high low avg EURm 2025 2024 2025 2024 2025 2024 2025 2024 Total VaR 43 42 59 61 16 29 35 42 Interest rate risk 44 39 57 60 16 29 35 41 Equity risk 2 3 9 11 1 2 4 3 Credit spread risk 5 5 8 13 2 2 4 4 Foreign exchange risk 4 1 6 3 1 1 3 2 Inflation risk 3 3 4 4 1 3 2 3 Diversification effect 23 19 47 36 13 13 27 21 Total stressed VaR 57 55 68 70 32 38 48 50 Incremental risk charge 24 10 35 24 12 10 20 14 Comprehensive risk charge 21 7 89 16 6 3 19 8 1) Equity event risk, corresponding to EUR 0.4m (0.5m) at the end of 2025. 4.5 Net interest income risk and Economic Value risk The market risk in Nordea’s banking book is presented in more detail in the Capital and Risk Management Report 2025. The risk measures presented show the change in the Economic Value of the banking book positions due to interest rate changes, assessed under the six regulatory interest rate shock scenarios, and the net interest income in the banking book over a 12-month period is assessed under the two parallel shifts, as defined by the European Banking Authority. At the end of the year the most adverse Economic Value stress loss was EUR 1,631m in the “paral- lel shock down“ scenario, and the most adverse one-year loss in net interest income was EUR 1,217m also in the “parallel shock down“ scenario. For most currencies, the “parallel shock down“ scenario includes a 200bp down- ward shift, but it can vary from -100 to -400bp depending on the currency. For more details on the results of different regulatory interest rate shock scenarios, see the Nordea Group Capital and Risk Management Report 2025. 4.6 Other market risks/pension risk Pension risks (including market and longevity risks) arise from Nordea-sponsored defined benefit pension schemes for past and current employees. The ability of the pension schemes to meet the projected pension payments is main- tained through investments and ongoing scheme contributions. Pension risks can manifest through increases in the value of liabilities or through falls in the values of assets. These risks are regularly reported and monitored and include market risk sub-components such as interest rate, inflation, credit spread, real estate and equity risk. To mini- mise the risks to Nordea, limits are imposed on potential losses under severe but plausible stress events as well as on capital drawdowns. In addition, regular reviews of the schemes’ strategic asset allocation are undertaken to ensure that the investment approach reflects Nordea’s risk appetite. See Note G8.2 ”Pensions” for more information. ===== SIDA 304 ===== Nordea Annual Report 2025 303 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. 5. Operational risk At Nordea operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events and includes legal risk. Operational risk is inherent in all Nordea’s businesses and operations. Managers throughout Nordea are accountable for the operational risks related to their man- date and for managing these risks within the risk appetite in accordance with the operational risk management framework. Operational risk management and oversight functions within Group Risk constitute the second line of defence for overall operational risk and are responsible for developing and maintaining the overall operational risk management framework as well as for monitoring and controlling the operational risk management of the first line of defence. The independent risk control functions are responsible for monitoring and overseeing that operational risks are appropriately identified, assessed and mitigated and for following up on risk exposures towards risk appetite and assessing the adequacy and effectiveness of the opera- tional risk management framework and the implementa- tion of the framework. The focus areas of the monitoring and oversight work are decided during an annual planning process that includes business areas and Group functions as well as key risk areas and operational risk processes. Group Risk is responsible for preparing and submitting regular risk reports on all material risk exposures, including risk appe- tite utilisation and incidents, to the Chief Risk Officer, who reports to the Chief Executive Officer in the Group Leadership Team, the Group Board and the relevant committees. Nordea is closely monitoring the geopolitical develop- ments, such as in Ukraine and the Middle East. Throughout the year Nordea has witnessed elevated threat levels for cyber security and also for physical secu- rity across the Nordics. Nordea has taken actions to address the increased risk. The risk appetite statement for operational risk sets the tone for effective risk management. Risk appetite is meas- ured using risk limits for (a) numbers and types of opera- tional risks and b) total loss amounts arising from opera- tional and compliance risk incidents. 5.1 Management of operational risk Management of operational risk includes all activities aimed at identifying, assessing and measuring, responding to and mitigating, controlling and monitoring as well as reporting on risks. Risk management is supported by vari- ous processes and instructions including Risk and Control Self-Assessment, Change Risk Management and Approval, Issue Management, Incident Management, Scenario Analysis, Business Continuity and Crisis Management, Information Security Management, Technology and Data Risk Management, Third Party Risk Management, insur- ance-related risk diversification and Significant Operating Processes. Some of these processes are described below and addi- tional details on processes for managing and controlling operational risk are included in the “Operational and Compliance Risk” section of the Capital and Risk Management Report 2025 published in accordance with the Capital Requirements Regulation. Risk and Control Self-Assessment The Risk and Control Self-Assessment process ensures an overview and assessment of operational and compliance risks across Nordea. The process improves risk awareness and enables the effective assessment, control and mitiga- tion of identified risks. Furthermore, the Risk and Control Self-Assessment process and its results provide the basis and input for risk reporting at Nordea. Change Risk Management and Approval The purpose of the Change Risk Management and Approval process is to ensure that risks arising from a change are identified, assessed and managed before a change is approved and implemented. This is to ensure that no unexpected incidents occur when going live with the change. The Change Risk Management and Approval process must be applied to all relevant types of change and devel- opment initiatives, including but not limited to, involving changes to new or changed processes, organisational changes, information and communication technology changes, new outsourcing arrangements and exceptional transactions. Issue Management Issues are defined as deficiencies in the control environ- ment, i.e. defects and/or quality matters within the internal control environment for managing risk. When such defi- ciencies are discovered, they must be reported as issues. The Issue Management Framework covers multiple pro- cesses across all three lines of defence. Incident Management The Incident Management Framework ensures appropri- ate handling and reporting of detected incidents to mini- mise the impact on Nordea and its customers, prevent reoccurrence and reduce the impact of future incidents. When incidents are detected, they are immediately assessed to determine their severity. Depending on the nature of the incident and the severity assessed, different requirements on stakeholder involvement and external reporting apply, including incident notification to relevant authorities. Scenario Analysis Scenario Analysis is performed in order to identify and assess operational and compliance risks with high finan- cial or non-financial impacts and low probability of mate- rialisation, so-called “tail risks”. Analysis of tail risks con- tributes to a better understanding, awareness and man- agement of forward-looking risk and remediation of possible identified control gaps/deficiencies. Business Continuity and Crisis Management The Business Continuity and Crisis Management frame- work at Nordea ensures the capability to handle extraordi- nary events and crises and assures the continued delivery and recovery of prioritised products, services and pro- cesses to predefined acceptable levels. Extraordinary events and crisis situations are timely and appropriately escalated and responded to through pre-established structures. The capabilities are validated by testing and exercising the organisation and established plans to ensure to protect its resources (e.g. people, premises, tech- nology and information), supply chain, interested parties and reputation, before a disruptive incident occurs. This includes ensuring that roles and responsibilities are clear, known and communicated to all involved. Third Party Risk Management The objective of Third Party Risk Management is to ensure that risks related to third parties and third party activities, including but not limited to outsourcing, are appropriately identified, assessed and managed before entering into, during as well as when exiting a third party arrangement. Third Party Risk Management ensures that risks associ- ated with third parties and third party activities are kept within risk appetite and risk limits. Information and Communication Technology Risk Management The objective of Information and Communication Technology Risk Management is to ensure that information and communication technology and data management risks are appropriately identified, assessed and managed. Nordea maintains an Information Security Management System for implementation of the principles and require- ments for information security, with the overall objective to preserve the confidentiality, integrity and availability of Nordea’s information and information entrusted to Nordea, by applying a risk-based methodology. Cyber security Introducing new technologies, exploring new ways of doing business and connecting with customers widen banks’ attack surface. At the same time, entities that pose cyber threats are becoming more organised, resourceful and experienced. Banks must also deal with the asymmetry of having to protect all assets while entities engaged in cyber threats merely need to find one weak spot. Combined, these factors pose an unprecedented risk to the banking industry. In the normal course of business, Nordea focuses not only on maintaining effective basic information security controls but also on enhancing its cyber defence with new tools and functions for security, detection and response. Nordea develops innovative security practices to meet new business demands, such as robust mobile banking applica- tions and proactive customer support for fraud detection and prevention. Nordea develops its information security practice based on recognised industry best practices such as the ISO 27000 series standards, the Information Security Forum (ISF) standards and the frameworks provided by the ===== SIDA 305 ===== Nordea Annual Report 2025 304 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. National Institute of Standards and Technology (NIST) in the US. Furthermore, Nordea needs to comply with financial industry legislation, for example European Banking Authority guidelines and other European legislation intro- ducing specific information security requirements. In addition, Nordea has teamed up with partners from governmental organisations, law enforcement agencies, intelligence networks, peers in the industry and others to share intelligence and experience. Financial Reporting Risk Management The Financial Reporting Risk Management Framework determines overall how to identify and report financial reporting risks across the Group and is designed to provide reasonable assurance about the reliability of financial reporting for external purposes in accordance with gener- ally accepted accounting principles, applicable laws and regulations as well as other requirements for listed and reg- ulated companies. 5.2 Model risk Model risk is the potential for adverse consequences from model errors or the inappropriate use of modelled outputs to inform business decisions. Adverse consequences can include financial loss, poor or sub-optimal business and strategic decision-making, deterioration in Nordea’s pru- dential position, non-compliance with applicable laws and/or regulations or damage to Nordea’s reputation. Model risk occurs primarily for two reasons: • Fundamental model errors which may produce inaccu- rate outputs when viewed against the model’s design objective and/or business uses. • Incorrect or inappropriate use of model outputs. Models are used in both financial and non-financial con- texts, encompassing a diverse range of applications such as customer selection, product pricing, transaction moni- toring for financial crime, creditworthiness assessment and financial reporting. Evaluating model performance is an ongoing process involving continuous monitoring as well as comprehensive reviews of model structure and data integrity. Model Risk Management Model risk is managed through a set of policies, proce- dures and guidelines aligned with Nordea’s general risk management framework following the three lines of defence model where: • the first line of defence consists of model developers, model owners and model users • the second line of defence assesses whether model development and use controls meet policy standards as and evaluates the adequacy of model risk procedures • the third life defence is the internal audit function. Model risk is overseen through a risk appetite statement for model risk which is implemented through risk appetite metrics. Models are developed using a variety of techniques, including AI and machine learning models, where rapid technological advancement – such as generative AI – is transforming modelling approaches. Nordea has estab- lished a new governance framework for AI models and is ensuring compliance with the EU Artificial Intelligence Act in deploying these models. 6. Compliance risk Nordea defines compliance risk as the risk of failure to comply with applicable regulations and related internal rules. Management of compliance risk is governed by Nordea’s compliance risk appetite statement as well as its compliance policy which also sets out the framework for the management of compliance risks. Employees through- out Nordea are accountable for the compliance risks related to their mandate and for managing these risks in accordance with the established frameworks. Group Compliance is the independent second line of defence function responsible for developing and maintaining the compliance policy and for guiding the business in its implementation of and adherence to the policy. Compliance activities are presented in the form of an annual compliance plan to the Group CEO of Nordea and the Board Risk Committee. The annual compliance plan provides an overview of Nordea’s planned compliance activities, combining Group Compliance’s overall approach to key risk areas. The plan consists of detailed plans for the business areas, the Group functions, the con- solidated Group subsidiaries, the branches and for each risk area. Group Compliance is responsible for the regular reporting on its plans to the Group Board, the CEO in the Group Leadership Team (the GLT), branch management and the relevant committees, at least quarterly. The uncertainty in the geopolitical and macroeconomic environment continued in 2025 with conflicts escalating in the Middle East and the invasion of Ukraine continuing for a fourth year. Despite the turbulence in the macroeco- nomic environment, no visible adverse impact on the financial health of household customers has been observed. The impact on the financial situation of Nordea’s corporate customers has been limited, and the situation is in general stable with a positive outlook. In light of the continuously challenging external environment for some of its customers, Nordea continues to focus on ensuring that its processes adequately assess the suitability and affordability of the products for all customer segments. In 2025 the interest and customer demand for ESG-related products remained stable with cautious optimism indi- cated, whilst market practices also developed further. Nordea actively supports its advisory customers in estab- lishing investment strategies that are also aligned to their sustainability preferences. Nordea is subject to various legal regimes and require- ments, including but not limited to those of the Nordic countries, the European Union and the United States. The supervisory and governmental authorities administering and enforcing these regimes make regular enquiries and conduct investigations with regard to Nordea’s compli- ance. Areas subject to investigation may include invest- ment advice, anti-money laundering (AML), trade regula- tion and sanctions adherence, tax rules, competition law, consumer protection, governance, risk management and control. The outcome and timing of these enquiries and investigations are unclear and pending. Accordingly, it cannot be ruled out that these enquiries and investigations could lead to criticism against the bank, reputation loss, fines, sanctions, disputes and/or litigation. 6.1 Code of Conduct The Code of Conduct (the ”Code”) defines high-level busi- ness principles that guide the business of Nordea in how Nordea treats customers and how employees are expected to conduct themselves. The principles underpin Nordea’s culture and set the parameters for conduct in areas such as care for the environment, human rights, labour rights, the right to privacy, fair competition, anti-bribery and anti-corruption. The Code is reviewed annually and was last updated in July 2025. Compliance with the Code is reg- ularly monitored by the functions responsible for each sec- tion of the Code and by Group Compliance. Annual report- ing to the relevant Group committees, the Group CEO and the Group Board informs how well Nordea is adhering to the Code and provides an insight into the Group’s risk cul- ture. All employees, including part-time employees and consultants, are required to undertake annual Code of Conduct training as part of their Licence to Work to ensure proper awareness and knowledge of the ethical principles. The 2025 training included more detailed focus e.g. on external engagements, internal fraud and how to raise a concern. 98.1% of all employees (excluding those on long- term leave) completed the training. 6.2 Raise your Concern Nordea’s whistleblowing function Raise Your Concern (RYC) ensures that all stakeholders, including customers, partners, affected communities as well as employees, have the right to speak up and always feel safe in doing so if they have concerns about suspected misconduct such as breaches of human rights, or irregularities such as fraudulent, inappro- priate, dishonest, illegal or negligent activity or behaviour in operations, products or services. This includes any action that constitutes a violation of laws or regulations or of Nordea’s internal policies, instructions or guidelines. Reporting can be made orally or in writing and Nordea ensures that all reporting is treated with the strictest confi- dentiality. Reports can be made in all countries in which Nordea operates. Furthermore, it is also possible to report anonymously via the electronic reporting channel WhistleB. This platform is managed by an external party, is entirely separate from Nordea’s IT systems and does not track IP addresses or other data that could identify the sender of a message. Cases reported through RYC form part of the monitoring of compliance with the Code of Conduct. A sum- mary of key trends and statistics on cases are also reported on a no names basis to the Chief Compliance Officer, the ===== SIDA 306 ===== Nordea Annual Report 2025 305 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Chief People Officer and the Chief Risk Officer in addition to being included in management reports and reports to the Board. Furthermore, the RYC process and investigations are subject to regular quality controls with defined escalation procedures to report any process deviations. 6.3 Financial crime prevention Nordea takes its responsibility to society and its customers seriously and has over the years built strong defences to prevent its products, services and systems from being used for unlawful purposes. Nordea handles and monitors on an annual basis several billion transactions from a wide customer base. Nordea continued to strengthen its financial crime defences in 2024 within areas such as customer due diligence, transaction monitoring and economic sanctions. Nordea’s close cooper- ation with regulators continued during 2024 with ongoing engagement with all four Nordic regulators covering vari- ous aspects of Nordea’s financial crime prevention work. Following the invasion of Ukraine by Russian forces in February 2022, a number of countries and international bodies have introduced sanctions. Nordea complies with all applicable EU, US, UN and UK sanctions programmes, including Russian sanctions programmes. The Russian sanctions currently include freezing of assets, deposit restrictions, restrictions on economic relations with certain regions in Ukraine, restrictions focusing on the energy and finance sectors, import and export restrictions and over- flight bans. As a consequence of the current sanctions regime and the increasing breadth and complexity of sanc- tions in force, in 2022 Nordea decided not to conduct any business activities that relate to the regions of Donetsk, Luhansk, Zaporizhzhia and Kherson. A similar policy was already in place with respect to Crimea and Sevastopol. Furthermore, due to the sanctions regime and the restric- tions in force, in April 2022 Nordea stopped the processing of payments to and from Russia and Belarus (potentially processed in exceptional circumstances if confirmed that no regulatory/sanctions breach exists and with relevant approvals. In addition to the previous policy decision, fur- ther internal restrictions on Russia-related customer rela- tionships, among others, were introduced in July 2024. As sanctions measures continue to curb the ability to support and finance the war in the Ukraine, sanctioned parties and facilitators are seeking alternative ways to cir- cumvent sanctions. In addition to traditional techniques, such as wire stripping, the regulators highlight an increased use of cryptocurrencies and third countries as common cir- cumvention methods. In particular the US and EU have identified certain countries that are being used to facilitate the circumvention of sanctions measures imposed in rela- tion to Russia. While Nordea does not apply a blanket pro- hibition on activities concerning the countries it considers to pose a high cirumvention and evasion risk, Nordea remains vigilant to the risk of the bank’s products and services being used to evade sanctions and continues to enhance its con- trols to mitigate the risks. During 2025 the potential for both international and domestic terrorist attacks within the Nordics remained high driven by the escalating geopolitical conflicts stem- ming from the situation in Gaza. This is in parallel with the continued concerns of lone-actor terrorist incidents evolv- ing into actions conducted by increasingly younger people who do not necessarily have any political affiliations. Nordea continues to strengthen its controls to remain responsive to increased inherent risks of terrorist financing. In June 2015 the Danish Financial Supervisory Authority investigated how Nordea Bank Danmark A/S had followed the regulations regarding AML. The outcome resulted in criti- cism and, in accordance with Danish administrative practice, the matter was handed over to the police for further han- dling and possible sanctions. On 5 July 2024 the Danish National Special Crime Unit filed a formal indictment against Nordea in the matter. As previously stated, Nordea has expected to be fined in Denmark for weak AML processes and procedures in the past and has made a provision for ongoing AML-related matters. There is a risk that, in the event fines are issued by authori- ties or by final court decisions, the related costs could be higher (or potentially lower) than the current provision, and this could also impact Nordea’s financial performance. Nordea believes that the current provision is adequate to cover these matters. Since 2015 Nordea has made significant investments to address the deficiencies highlighted by the investigations. 7. Life insurance risk and market risks in the Life & Pension operations For infomation on risk in the Life & Pension operations, see Note G4 “Insurance contract liabilities“. 8. Liquidity risk During 2025 Nordea continued to benefit from its prudent liquidity risk management in terms of maintaining a diver- sified and strong funding base and a diversified liquidity buffer. Nordea maintained a strong liquidity position throughout the year despite the continued volatility in global markets driven by geopolitical and macroeconomic uncertainty. Nordea issued approximately EUR 21.5bn (EUR 19.4bn) in long-term funding (excluding Long CDs, Danish covered bonds and capital instruments), of which approximately EUR 12.7bn (EUR 14.0bn) was issued in the form of cov- ered bonds and EUR 8.8bn (EUR 5.4bn) as senior debt. Throughout 2025 Nordea remained compliant with the liquidity coverage ratio (LCR) requirement in all currencies on a combined basis as well as the net stable funding ratio (NFSR). 8.1 Liquidity risk definition and identification Liquidity risk is the risk that Nordea can only meet its liquidity commitments at an unsustainably high price or, ultimately, is unable to meet its obligations as they come due. Nordea is exposed to liquidity risk in its lending, investments, funding, off-balance sheet exposures or other activities which could result in a negative cash flow mismatch and an inability to liquidate assets or obtain adequate funding. Cash flow mismatches can occur at the end of a day or intraday. 8.2 Management principles and control Liquidity risk at Nordea is managed across three lines of defence: • The first line of defence consists of Group Treasury and the business areas. Group Treasury is responsible for the day-to-day management of the Group’s liquidity posi- tions, liquidity buffers, external and internal funding, including the mobilisation of cash across the Group, and funds transfer pricing. • The second line of defence, Group Risk, is responsible for providing independent oversight of and challenge to the first line of defence. • The third line of defence includes Group Internal Audit, which is responsible for providing independent over- sight of the first and second lines of defence. The Board of Directors defines the liquidity risk appetite by setting limits for the liquidity risk metrics applied. The risk appetite is anchored to liquidity stress testing results over specified time horizons as well as regulatory requirements and has implications for the nature and scope of activities undertaken by Nordea. The risk appetite framework and supporting liquidity risk limits and thresholds will ensure prudent hedging activities and mitigate the overall liquidity risk of Nordea. A funds transfer pricing (FTP) framework is in place which takes into account that liquidity is a scarce and costly resource. By quantifying and allocating liquidity and fund- ing costs and benefits to the respective business areas, behaviours and strategic decisions are appropriately incentivised. 8.3 Funding and liquidity strategy Nordea’s funding and liquidity strategy is based on policy statements resulting in various liquidity risk measures, limits and organisational procedures. The objective of liquidity risk management is to ensure that Nordea can always meet its cash flow obligations, including on an intraday basis, across market cycles and dur- ing periods of stress. Nordea strives to diversify its sources of funding and seeks to establish and maintain relationships with investors in order to ensure market access. A broad and diversified funding structure is reflected by the strong pres- ence in the Group’s four domestic markets in the form of a strong and stable retail customer base and a variety of fund- ing programmes. The funding consists of both short-term (US and European commercial paper as well as certificates of deposit) and long-term (covered bonds, European and Global Medium-Term Notes) programmes and covers a range of currencies. Trust is fundamental in the funding market. Therefore, Nordea periodically publishes information on the Group’s liquidity situation. Furthermore, Nordea regularly performs ===== SIDA 307 ===== Nordea Annual Report 2025 306 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. stress testing of its liquidity risk position to capture relevant risk drivers and has put contingency plans in place for liquid- ity crisis management. 8.4 Liquidity risk measurement To ensure funding at all times or in situations where normal funding sources would not suffice, Nordea holds a liquidity buffer. The liquidity buffer consists of central bank eligible, high credit quality and liquid securities as well as central bank cash that can be readily sold or used as collateral in funding operations. Liquidity risk management focuses on both short-term liquidity risk and long-term structural liquidity risk. Liquidity risk is limited by the Board of Directors via the liquidity stress coverage ratio and liquidity coverage ratio (LCR) stip- ulating that Nordea must maintain overall liquidity levels in support of its business strategy and to maintain the confi- dence of markets both in normal and dislocated markets. Similarly, structural liquidity risk is limited by the Board of Directors via the net stable funding ratio (NSFR) stipulating that Nordea should target an appropriate structural compo- sition of its assets, liabilities and off-balance sheet commit- ments in support of its business strategy and regulatory requirements. The internal stress metric Liquidity Stress Coverage measures peak cumulative stressed outflows experienced over the first 90 days of a combined stress event, whereby Nordea is subject to market-wide stress similar to that experienced by many banks in 2007–08 as well as idiosyncratic stress corresponding to a three-notch credit rating downgrade. This metric, together with the reg- ulatory LCR and NFSR, forms the basis for Nordea’s liquidity risk appetite, which is reviewed and approved by the Board at least annually. Short-term funding risk is measured via the LCR and internal stress test metrics. The LCR is measured and limited for major currencies and as a total figure for all currencies combined. Nordea’s structural liquidity risk is measured by many metrics of which the NSFR is the main metric. The NSFR is complemented with the internally defined metrics. Furthermore, the loan to deposit ratio is closely monitored together with the wholesale funding refinancing profile and rating agency metrics. 8.5 Liquidity risk analysis Nordea continues to have a strong and prudent liquidity risk profile with a strong funding base. At the end of 2025 the total volume utilised under CD and CP programmes was EUR 48.8bn (EUR 39.7bn) with an average maturity of 0.4 (0.3) year. The total volume under long-term programmes was EUR 156.3bn (EUR 156.5bn) with an average maturity of 5.7 (5.8) years. Nordea’s funding sources are presented in the table below. The liquidity risk position remained strong throughout 2025. Nordea’s liquidity buffer ranged between EUR 102.8bn and EUR 134.6bn throughout 2025 (EUR 98.0bn and EUR 129.2bn) with an average liquidity buffer of EUR 118.5bn (EUR 111.7bn). The combined LCR for the Nordea Group was 171% at the end of 2025 (157%) with an annual average of 154% (153%). At the end of 2025 the LCR in EUR was 262% (137%) and in USD 210% (219%) with annual averages of 182% (193%) and 174% (175%), respectively. At the end of 2025 Nordea’s NSFR was 123.7% (124.0%). Funding sources, 31 December 2025 Liability type Interest rate base Average maturity (years) EURm Deposits by credit institutions Shorter than 3 months Euribor etc. 0.0 32,024 Longer than 3 months Euribor etc. 0.5 2,107 Deposits and borrowings from the public Deposits payable on demand Administrative 0.0 174,022 Other deposits Euribor etc. 0.1 68,852 Debt securities in issue Certificates of deposit Euribor etc. 0.4 38,220 Commercial paper Euribor etc. 0.3 10,591 Mortgage covered bond loans Fixed rate, market-based 6.5 119,299 Other bond loans Fixed rate, market-based 3.3 28,616 Fair value changes of hedged items -450 Derivatives 18,078 Other non-interest-bearing items 88,665 Subordinated debt Tier 2 subordinated bond loans Fixed rate, market-based 4.2 4,613 Additional Tier 1 subordinated bond loans (undated) Fixed rate, market-based 4,367 Fair value changes of hedged items -170 Equity 32,419 Total 621,253 Insurance contract liabilities 33,097 Total, including life insurance operations 654,350 Net stable funding ratio EURbn 31 Dec 2025 31 Dec 2024 Available stable funding 297.4 283.3 Required stable funding 240.4 228.5 Net stable funding 57.0 54.8 Net stable funding ratio1 123.7% 124.0% 1) According to CRR2 regulation. ===== SIDA 308 ===== Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other 307Nordea Annual Report 2025 TABLE OF CONTENTS Financial statements Parent company Financial statements Income statement ..........................................................................................308 Balance sheet ................................................................................................... 309 Cash flow statement .....................................................................................310 Notes to the financial statements P1 A ccounting policies .............................................................................311 P2 Fi nancial performance and returns ...........................................311 P2.1 B usiness area and geographical information .........311 P2.2 N et interest income ..................................................................313 P2.3 N et fee and commission income .....................................313 P2.4 T otal net result from items at fair value .....................314 P2.5 In come from equity investments ....................................314 P2.6 O ther operating income ........................................................315 P2.7 O ther expenses ...........................................................................315 P2.8 Re gulatory fees ...........................................................................315 P2.9 D epreciation, amortisation and impairment charges .............................................................................................316 P2.10 N et loan losses ............................................................................316 P2.11 Taxes ..................................................................................................317 P3 F inancial instruments .......................................................................318 P3.1 Re cognition on and derecognition from t he balance sheet ......................................................................318 P3.2 T ransferred assets and obtained collateral .............318 P3.3 C lassification and measurement ....................................319 P3.4 F air value ........................................................................................ 322 P3.5 H edge accounting .....................................................................327 P3.6 C ash and balances with central banks ......................330 P3.7 Lo ans .................................................................................................330 P3.8 Int erest-bearing securities ................................................. 332 P3.9 Shares ............................................................................................... 332 P3.10 Derivatives ..................................................................................... 332 P3.11 D eposits by credit institutions and c entral banks ...............................................................................333 P3.12 D eposits and borrowings from the public ...............334 P3.13 D ebt securities in issue .........................................................334 P3.14 Sub ordinated liabilities .........................................................334 P4 I ntangible and tangible assets ................................................... 336 P4.1 Int angible assets .......................................................................336 P4.2 T angible assets .......................................................................... 337 P4.3 Leases............................................................................................... 337 P5 Provisions ............................................................................................... 338 P6 O ff-balance sheet items ................................................................. 338 P6.1 C ontingent liabilities ...............................................................338 P6.2 Commitments ..............................................................................339 P6.3 A ssets pledged ..........................................................................339 P7 E mployee benefits and key management p ersonnel remuneration ................................................................340 P7.1 F ixed and variable salaries ................................................340 P7.2 Pensions ..........................................................................................340 P7.3 S hare-based payment plans ..............................................341 P7.4 K ey management personnel remuneration ...........342 P7.5 N umber of employees ...........................................................342 P8 I nvestments in group undertakings, associated u ndertakings and joint ventures ............................................... 343 P8.1 In vestments in group undertakings .............................343 P8.2 In vestments in associated undertakings a nd joint ventures .....................................................................343 P8.3 C urrency translation of foreign entities ....................344 P9 O ther disclosures ............................................................................... 345 P9.1 Equity ................................................................................................345 P9.2 A dditional disclosures on the cash flow statement ....................................................................................... 347 P9.3 M aturity analysis .......................................................................348 P9.4 A ssets and liabilities in EUR and other currencies.......................................................................................349 P9.5 O ther assets .................................................................................349 P9.6 O ther liabilities ...........................................................................349 P9.7 C ustomer assets under management ........................350 P9.8 Re lated party transactions ................................................350 P10 R isk and liquidity management ..................................................352 ===== SIDA 309 ===== Nordea Annual Report 2025 308 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Income statement EURm Note 2025 2024 Operating income Interest income 12,257 15,321 Interest expense -7,086 -9,777 Net interest income P2.2 5,171 5,544 Fee and commission income 2,515 2,404 Fee and commission expense -636 -566 Net fee and commission income P2.3 1,879 1,838 Net result from securities at fair value through profit or loss P2.4 1,018 990 Net result from securities at fair value through fair value reserve P2.4 28 5 Income from equity investments P2.5 1,739 958 Other operating income P2.6 756 764 Total operating income 10,591 10,099 Operating expenses Staff costs P7 -2,731 -2,619 Other administrative expenses P2.7 -1,134 -1,104 Other operating expenses P2.7 -482 -630 Regulatory fees P2.8 -60 -52 Depreciation, amortisation and impairment charges P2.9 -428 -385 Total operating expenses -4,835 -4,790 Profit before loan losses 5,756 5,309 Net loan losses P2.10 -23 -83 Operating profit 5,733 5,226 Income tax expense P2.11 -991 -1,037 Net profit for the year 4,742 4,189 ===== SIDA 310 ===== Nordea Annual Report 2025 309 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Balance sheet EURm Note 31 Dec 2025 31 Dec 2024 Assets Cash and balances with central banks P3.6 36,338 44,862 Debt securities eligible for refinancing with central banks P3.8 78,724 71,349 Loans to credit institutions P3.7 87,447 75,139 Loans to the public P3.7 168,467 151,977 Interest-bearing securities P3.8 10,145 9,630 Shares P3.9 18,280 17,491 Investments in group undertakings P8.1 15,981 15,656 Investments in associated undertakings and joint ventures P8.2 71 74 Derivatives P3.10 18,241 26,054 Fair value changes of hedged items in portfolio hedges of interest rate risk P3.5 -56 -69 Intangible assets P4.1 1,749 1,570 Tangible assets P4.2 233 224 Deferred tax assets P2.11 25 25 Current tax assets P2.11 256 249 Retirement benefit assets P7.2 328 351 Other assets P9.5 5,361 6,896 Prepaid expenses and accrued income P9.5 599 987 Total assets 442,189 422,465 EURm Note 31 Dec 2025 31 Dec 2024 Liabilities Deposits by credit institutions and central banks P3.11 42,027 36,306 Deposits and borrowings from the public P3.12 250,302 240,106 Debt securities in issue P3.13 78,991 70,127 Derivatives P3.10 18,857 25,927 Fair value changes of hedged items in portfolio hedges of interest rate risk P3.5 -567 -458 Current tax liabilities P2.11 456 18 Other liabilities P9.6 13,554 12,659 Accrued expenses and prepaid income P9.6 882 1,257 Deferred tax liabilities P2.11 208 377 Provisions P5 346 376 Retirement benefit liabilities P7.2 251 234 Subordinated liabilities P3.14 8,810 7,410 Total liabilities 414,117 394,339 Equity Share capital 4,050 4,050 Additional Tier 1 capital holders – 750 Invested unrestricted equity 1,077 1,053 Other reserves -137 -37 Retained earnings 18,340 18,121 Net profit for the year 4,742 4,189 Total equity P9.1 28,072 28,126 Total liabilities and equity 442,189 422,465 Off-balance sheet commitments Commitments given to a third party on behalf of customers P6.1 - Guarantees and pledges 54,325 54,380 - Other 454 483 Irrevocable commitments in favour of customers, other P6.2 105,179 99,530 ===== SIDA 311 ===== Nordea Annual Report 2025 310 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Cash flow statement EURm Note1 2025 2024 Operating activities Operating profit 5,733 5,226 Adjustment for items not included in cash flow P9.2 2,509 1,982 Income taxes paid P2.11 -730 -1,001 Cash flow from operating activities before changes in operating assets and liabilities 7,512 6,207 Changes in operating assets Change in debt securities eligible for refinancing with central banks P3.8 -3,314 -3,120 Change in loans to credit institutions P3.7 -7,866 -6,499 Change in loans to the public P3.7 -14,762 -4,615 Change in interest-bearing securities P3.8 -7,299 -8,012 Change in shares P3.9 -561 -7,500 Change in derivatives, net P3.10 -1,247 -3,919 Change in other assets P9.5 1,562 2,404 Changes in operating liabilities Change in deposits by credit institutions and central banks P3.11 5,951 -176 Change in deposits and borrowings from the public P3.12 7,616 21,646 Change in debt securities in issue P3.13 10,102 -2,924 Change in other liabilities P9.6 -1,006 2,651 Cash flow from operating activities -3,312 -3,857 EURm Note1 2025 2024 Investing activities Investment in and capital contributions to group undertakings P8.1 -61 -1,771 Acquisition of assets and liabilities P9.2 – 3,079 Investments in associated undertakings and joint ventures P8.2 -46 -13 Sale of associated undertakings and joint ventures P8.2 98 4 Acquisition of property and equipment P4.2 -40 -41 Sale of property and equipment P4.2 0 0 Acquisition of intangible assets P4.1 -537 -438 Cash flow from investing activities -586 820 Financing activities Issued subordinated liabilities P3.14 1,776 2,192 Amortised subordinated liabilities P3.14 -839 -762 Sale/repurchase of own shares incl. changes in trading portfolio P9.1 -873 -382 Paid interest on Additional Tier 1 capital P9.1 -26 -26 Dividend paid P9.1 -3,268 -3,218 Cash flow from financing activities -3,230 -2,196 Cash flow for the year -7,128 -5,233 Cash and cash equivalents at beginning of year 45,215 49,840 Translation differences -1,344 608 Cash and cash equivalents at end of year 36,743 45,215 Change -7,128 -5,233 1) F or more information regarding the cash flow statement, see Note P9.2 “Additional disclosures on the cash flow statement”. ===== SIDA 312 ===== Nordea Annual Report 2025 311 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P1 Accounting policies Corporate information Nordea Bank Abp (Business ID 2858394-9) is the parent company of the Nordea Group. Nordea Bank Abp is a pub- lic limited liability company organised under the laws of Finland with its head office located in Helsinki, Finland at the following address: Hamnbanegatan (Satamaradankatu) 5, FI-00020 Nordea Bank Abp, Helsinki, Finland. Nordea Bank Abp’s ordinary shares are listed on Nasdaq Nordic, the stock exchanges in Helsinki (in euro), Stockholm (in Swedish kronor) and Copenhagen (in Danish kroner), and its American Depository Receipts are traded in the US in US dollars. The Nordea Group is hereafter referred to as the Group. Basis of preparation The financial statements of the parent company, Nordea Bank Abp, are prepared in accordance with the Finnish Accounting Act, the Finnish Act on Credit Institutions, the Decree of the Finnish Ministry of Finance on the financial statements and consolidated financial statements of credit institutions and investment firms, and the regulations and guidelines of the Finnish Financial Supervisory Authority. Nordea Bank Abp applies IFRS accounting standards as adopted by the European Union (EU) for recognition, measurement and presentation of financial instruments in accordance with the Finnish Act on Credit Institutions. The accounting policies are unchanged from the 2024 Annual Report. For more information about accounting policies, see the respective notes. All amounts are in euro million unless otherwise stated. On 17 February 2026 the Board of Directors approved the financial statements, subject to final adoption by the Annual General Meeting on 24 March 2026. Changes to accounting policies not yet applied IFRS 16 Leases As of 1 January 2026 Nordea Bank Abp will adopt IFRS 16 Leases, as permitted under the Finnish Accounting Standards, to align the accounting policy and presentation of leases with the consolidated financial statements of the Group, which adopted IFRS 16 in 2019. Nordea Bank Abp’s leases are mainly related to office premises contracts but also to company cars and IT hardware. In accordance with IFRS 16, at the commencement date each lease should be accounted for on the balance sheet of the lessee as a right-of-use asset at cost and as a lease liability at the net present value of the future lease pay- ments discounted by using the lessee’s incremental bor- rowing rate at the commencement date of the lease con- tract. The right-of-use assets are subsequently depreci- ated on a straight-line basis over the lease term, and the lease liability is measured using the effective interest rate method and decreased by lease payments made. See the Group’s Note G5.4 “Leases” for more information on the accounting policies. At the transition date, the estimated impact on 1 January 2025 right-of-use assets is EUR 1,257m, on lease liabilities EUR 1,101m and on retained earnings EUR -14m. Translation of assets and liabilities denominated in foreign currencies Nordea Bank Abp presents its financial statements in euro (EUR). Foreign currency is defined as any currency other than euro. Foreign currency transactions are recorded at the exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate on the bal- ance sheet date. The table below shows the exchange rates used for translating the income statements and balance sheets of the Nordic branches from the local functional currencies into the presentation currency. Jan–Dec 2025 Jan–Dec 2024 EUR 1 = SEK Income statement (average) 11.0675 11.4370 Balance sheet (at end of year) 10.8180 11.4485 EUR 1 = DKK Income statement (average) 7.4634 7.4587 Balance sheet (at end of year) 7.4686 7.4576 EUR 1 = NOK Income statement (average) 11.7223 11.6308 Balance sheet (at end of year) 11.8310 11.7810 Exchange differences arising on the settlement of transac- tions at rates different from those on the date of the trans- actions, and unrealised translation differences on unset- tled foreign currency monetary assets and liabilities, are recognised in the income statement under “Net result from securities at fair value through profit or loss”. P2 Financial performance and returns P2.1 Busine ss area and geographical information Business area information Nordea Bank Abp presents the financial results of the three main business areas: Personal Banking, Business Banking and Large Corporates & Institutions. Group func- tions and eliminations as well as the results not fully allo- cated to any of the main business areas are shown sepa- rately as reconciling items. Personal Banking serves Nordea Bank Abp’s household customers and offers a full range of financial services that fulfil the customers’ day-to-day financial needs. Personal Banking serves customers through Nordea Netbank, the mobile banking app, over the phone, via online meetings and at Nordea’s branch offices. The business area includes advisory and service staff, channels and product units under a common strategy, operating model and govern- ance framework across markets. Business Banking serves, advises and partners with corporate customers, covering all their business needs through a full range of services, including payments, cash management, cards, working capital management and financing solutions. Business Banking also provides ser- vices such as payments, cards and financing solutions to personal customers. Large Corporates & Institutions provides financial solutions to large Nordic and international corporates and institutional customers. The offering includes a diverse range of financing, cash management and payment services, investment banking, capital markets products and securities services. ===== SIDA 313 ===== Nordea Annual Report 2025 312 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.1 Busine ss area and geographical information, cont. Income statement 2025, EURm Personal Banking Business Banking Large Corporates & Institutions Total business areas Recon­ ciliation Total Net interest income 1,943 1,660 1,285 4,888 283 5,171 Net fee and commission income 1,287 580 525 2,392 -513 1,879 Net result from securities at fair value through profit or loss 76 410 517 1,003 15 1,018 Net result from securities at fair value through fair value reserve – – – – 28 28 Other income 1 367 93 1 461 2,034 2,495 Total operating income 3,673 2,743 2,328 8,744 1,847 10,591 Staff costs -658 -300 -298 -1,256 -1,475 -2,731 Other expenses2 -1,556 -960 -605 -3,121 1,505 -1,616 Regulatory fees -43 -20 -15 -78 18 -60 Depreciation, amortisation and impairment charges -42 -19 -20 -81 -347 -428 Total operating expenses ­2, 299 ­1, 299 ­938 ­4,536 ­299 ­4, 835 Profit before loan losses 1,374 1,444 1,390 4,208 1,548 5,756 Net loan losses -29 -2 10 -21 -2 -23 Operating profit 1,345 1,442 1,400 4,187 1,546 5,733 1) Incl uding “Income from equity investments” and “Other operating income”. 2) Incl uding “Other administrative expenses” and “Other operating expenses”. Balance sheet 31 Dec 2025, EURbn Personal Banking Business Banking Large Corporates & Institutions Total business areas Recon­ ciliation Total Loans to the public 20 52 91 163 5 168 Deposits and borrowings from the public 97 54 75 226 24 250 Income statement 2024, EURm Personal Banking Business Banking Large Corporates & Institutions Total business areas Recon­ ciliation Total Net interest income 2,155 1,764 1,423 5,342 202 5,544 Net fee and commission income 1,203 540 478 2,221 -383 1,838 Net result from securities at fair value through profit or loss 203 442 432 1,077 -87 990 Net result from securities at fair value through fair value reserve – – – – 5 5 Other income 1 465 53 -1 517 1,205 1,722 Total operating income 4,026 2,799 2,332 9,157 942 10,099 Staff costs -611 -285 -309 -1,205 -1,414 -2,619 Other expenses2 -1,562 -877 -537 -2,976 1,242 -1,734 Regulatory fees -38 -21 -14 -73 21 -52 Depreciation, amortisation and impairment charges -41 -19 -20 -80 -305 -385 Total operating expenses ­2,252 ­1, 202 ­880 ­4,334 ­456 ­4, 790 Profit before loan losses 1,774 1,597 1,452 4,823 486 5,309 Net loan losses -34 -70 18 -86 3 -83 Operating profit 1,740 1,527 1,470 4,737 489 5,226 1) Incl uding “Income from equity investments” and “Other operating income”. 2) Incl uding “Other administrative expenses” and “Other operating expenses”. Balance sheet 31 Dec 2024, EURbn Personal Banking Business Banking Large Corporates & Institutions Total business areas Recon­ ciliation Total Loans to the public 20 49 77 146 6 152 Deposits and borrowings from the public 90 52 72 214 26 240 Geographical information Total operating income, EURm Operating profit, EURm Assets, EURbn Liabilities, EURbn 2025 2024 2025 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Finland 3,349 2,810 2,049 1,527 102 110 114 106 Sweden 3,066 2,945 1,723 1,581 130 109 116 102 Denmark 2,220 2,427 776 972 114 108 95 96 Norway 1,781 1,732 1,065 1,045 82 76 75 71 Other 175 185 120 101 14 19 14 19 Total 10,591 10,099 5,733 5,226 442 422 414 394 Nordea Bank Abp’s main geographical markets comprise the Nordic countries. ===== SIDA 314 ===== Nordea Annual Report 2025 313 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.2 Net in terest income Accounting policies Interest consists of compensation for time value of money plus a margin. The effective interest rate equals the rate that discounts the estimated future cash flows to the net carrying amount of the finan- cial asset or financial liability at initial recognition. Interest income and expense are calculated and recognised using the effective interest rate method or, if considered appropriate, a method that provides a reasonable approximation in line with the effective interest rate method as the basis for the calculation. The effective interest rate includes fees considered to be an integral part of the effective interest rate of a financial instrument (generally fees received as compensation for risk). Interest income and interest expense from financial instruments are, with the exceptions described below, classified as “Net inter- est income”. Interest income and interest expense related to all balance sheet items held at fair value in Markets are classified as “Net result from securities at fair value through profit or loss” in the income statement. Also, interest on the net funding of operations in Markets, and on the net funding of fund investments in Treasury, measured at amortised cost is recognised in this line item to ensure that income and expense within these operations are presented in a consistent manner. See Note P2.4 “Total net result from items at fair value”. The interest component of derivatives is classified as “Net result from securities at fair value through profit or loss”, except for derivatives used for hedging purposes. In accounting hedges the interest compo- nent of derivatives is classified as “Interest income calculated using the effective interest rate method” if the derivative is used to hedge an asset and as “Interest expense” if the derivative is used to hedge a liability. In economic hedges the interest component of derivatives is classified as “Interest income” if the derivative is used to hedge an asset and as “Interest expense” if the derivative is used to hedge a liability. Interest income EURm 2025 2024 Interest income calculated using the effective interest rate method1 11,976 14,703 Financial assets at fair value through profit or loss 252 452 Net interest paid or received on derivatives in economic hedges of assets 29 166 Interest income 2 12,257 15,321 EURm 2025 2024 Cash and balances with central banks 146 214 Debt securities eligible for refinancing with central banks 1,393 1,310 Loans to credit institutions 3,796 4,805 Loans to the public 5,957 7,146 Interest-bearing securities 525 766 Derivatives 128 665 Yield fees 262 246 Other interest income 21 3 Net interest paid or received on derivatives in economic hedges of assets 29 166 Interest income 2 12,257 15,321 Interest expense EURm 2025 2024 Deposits by credit institutions and central banks -729 -1,058 Deposits and borrowings from the public -3,838 -5,205 Debt securities in issue -1,998 -2,100 Derivatives -181 -1,207 Subordinated liabilities -343 -271 Other interest expense -43 -44 Net interest paid or received on derivatives in economic hedges of liabilities 46 108 Interest expense ­7 ,086 ­9,777 Net interest income 5,171 5,544 1) Incl udes interest income from financial assets measured at amortised cost or at fair value through other comprehensive income. 2) In terest on impaired loans (stage 3) accounted for an insignificant share of interest income. P2.3 Net f ee and commission income Accounting policies Nordea Bank Abp earns commission income from different services provided to customers and group undertakings. Fee income is recognised as revenue when services are provided or in connection with the execution of a significant act. Fees received in connection with performed services are recognised as income in the period when these services are provided. Asset management commissions and Life & Pension commissions are mainly generated from the services provided to group undertakings. The recog- nition of commission income depends on the pur- pose for which the fees are received. Lending fees that are not part of the effective interest rate of a financial instrument are recognised at a point of time when the services are provided. Fees received for bilateral transactions are generally amortised as part of the effective interest rate of the financial instruments recognised. Loan syndication fees are recognised either as part of the effective interest rate of the participation or, if Nordea Bank Abp is acting as an agent in the transaction, as lend- ing fee income. When the fee income is related to both activities, the fee that is recognised as part of the effective interest rate is based on the margin received by the other parties in the arrangement. Variable fees, such as performance fees, are rec- ognised only to the extent that it is highly probable that a significant reversal in the cumulative recog- nised amount does not occur. Commission expenses covering a certain period are expensed over that period whereas transactional fees are recognised when the services are received. Net fee and commission income 2 EURm 2025 2024 Asset management1 480 475 - of which income 487 482 - of which expense -7 -7 Deposit products 19 20 - of which income 19 20 Custody and issuer services 10 16 - of which income 55 60 - of which expense -45 -44 Brokerage and advisory services 205 210 - of which income 338 336 - of which expense -133 -126 Payments and cards 596 560 - of which income 874 810 - of which expense -278 -250 Lending 399 364 - of which income 405 367 - of which expense -6 -3 Guarantees 173 188 - of which income 269 261 - of which expense -96 -73 Other -3 5 - of which income 68 68 - of which expense -71 -63 Total 1,879 1,838 1) Net f ee and commission income previously presented in the line item “Life and pension” is included in the line item “Asset management” from 2025 as these items are similar in nature. Comparative figures have been restated accordingly. 2) F ee income, not included in determining the effective interest rate, from financial assets and liabilities not measured at fair value through profit or loss amounted to EUR 424m (EUR 387m). Asset management commissions include commission or fee income which is generally recognised over time as the services are performed. Fees categorised as “Deposit products”, “Brokerage and advisory services”, “Custody and issuer services” and “Payments and cards” are recognised both over time and at a point of time depending on when the services are pro- vided. Brokerage and advisory fee and commission income ===== SIDA 315 ===== Nordea Annual Report 2025 314 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.3 Net f ee and commission income, cont. is mainly transaction-based in relation to advising custom- ers or executing customer transactions in securities where the services are recognised at a point of time when the services related to the transactions are completed. Payment and cards fee income includes fees for cash management and payment solutions that are recognised over time and transaction-based fees for services like domestic and foreign payments that are recognised over time. Card-related fees are categorised as interchange fees which are recognised at a point of time when the cus- tomer uses the services, or as cardholder fees which are recognised over time or at a point of time if the fee is transaction-based. Lending fees are recognised at a point of time when the performance obligation is satisfied, i.e. when the transac- tion has been performed, unless the fees are part of the effective interest rate of the financial instrument. Income from issued financial guarantees and expenses for bought financial guarantees are amortised over the duration of the instruments and classified as “Fee and commission income” and “Fee and commission expense”, respectively. Other fee income is generally transaction-based. For transactional services performed at a point of time, payments are generally made instantly when the services are performed. For services performed over time, the period of the services is normally short. Examples of such services are monthly payment services and monthly or quarterly asset management services. For the services performed over time, the right to payment generally arises at the end of the period of the services when the perfor- mance obligations are satisfied and it is highly probable that no significant reversal of the consideration will occur. Account receivables are recognised in “Other assets”, while unbilled receivables for satisfied performance obli- gations and contract assets are recognised in “Prepaid expenses and accrued income”. Short-term advances received where the performance obligations have not yet been satisfied are recognised in “Accrued expenses and prepaid income”. Commission expenses are normally transaction-based and recognised in the period in which the services are received. P2.4 T otal net result from items at fair value Accounting policies Net result from securities at fair value through profit or loss Realised and unrealised gains and losses on finan- cial instruments are generally presented in “Net result from securities at fair value through profit or loss”. The accounting policies used when estimating fair value can be found in Note P3.4 “Fair value”. The following items are moreover presented in “Net result from securities at fair value through profit or loss”: • Interest on the net funding of operations in Mar- kets and on the net funding of fund investments in Treasury measured at amortised cost. • Realised gains/losses on assets and liabilities measured at amortised cost. • The revaluation of the hedged risks of hedged items under hedge accounting. • Foreign exchange gains/losses. • Dividends received from shares held for trading. The following item is not presented as “Net result from securities at fair value through profit or loss”: • The interest component of derivatives used for hedge accounting and economic hedges. These components are presented in “Net interest income” to ensure consistent accounting treat- ment with the hedged items. For more information on accounting policies related to foreign exchange gains/losses, see Note P1 “Accounting policies” and Note P8.3 “Currency trans- lation of foreign entities”. Hedge accounting is described in Note P3.5 “Hedge accounting”. Net result from securities at fair value through fair value reserve Recycled gains and losses on financial instruments classified in the category “Financial assets at fair value through other comprehensive income” are rec- ognised in “Net result from securities at fair value through fair value reserve”. Net result from items at fair value through profit or loss EURm 2025 Of which unrealised Of which realised Equity-related instruments1 335 -291 626 Interest-related instruments 250 -2,112 2,362 Foreign exchange gains/losses 426 -4,492 4,918 Other 7 -43 50 Total 1,018 ­6,938 7,956 - of which held for trading 1,173 -2,420 3,593 EURm 2024 Of which unrealised Of which realised Equity-related instruments1 522 539 -17 Interest-related instruments 209 -604 813 Foreign exchange gains/losses 479 5,868 -5,389 Other -220 -75 -145 Total 990 5,728 ­4, 738 - of which held for trading 1,366 -217 1,583 1) Dividends f rom shares held for trading amounted to EUR 198m (EUR 180m). P2.5 Inc ome from equity investments Accounting policies Dividends received from other investments than trading shares as well as group contributions are recognised in the income statement as “Income from equity investments”. Income is recognised in the period in which the right to receive payment is established. Income from equity investments EURm 2025 2024 Dividends from group undertakings 1,476 753 Dividends from associated undertakings and joint ventures 4 28 Group contributions 256 174 Dividends from shares measured at fair value through profit or loss, non-trading 3 3 Total 1,739 958 ===== SIDA 316 ===== Nordea Annual Report 2025 315 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.6 Other oper ating income Accounting policies Net gains from divestment of shares in group under- takings, associated undertakings and joint ventures and net gains from the sale of tangible assets as well as other transactions not related to any other income line are generally presented in “Other oper- ating income” and recognised when it is probable that the benefits associated with the transaction will flow to Nordea Bank Abp. This generally occurs when the significant risks and rewards have been transferred to the buyer (generally when the trans- action is finalised). Other operating income EURm 2025 2024 Income from services provided to group undertakings 663 729 Gain on sales of group undertakings and associated undertakings 55 – Income from real estate 23 18 Other 15 17 Total 756 764 P2.7 Other expenses Accounting policies Transactions not related to any other expense line are generally presented in the line item “Other administrative expenses” or “Other operating expenses” depending on the nature of the transac- tion. The majority of the ”Other administrative expenses” are related to acquired services, primarily within information technology (IT), and personnel related expenses that are not presented in “Staff costs”. Other expenses than administrative expenses are presented in “Other operating expenses”. Net losses from divestment of shares in group undertakings, associated undertakings and joint ventures and net losses from the sale of tangible assets are generally recognised in “Other operating expenses” when risks and rewards have been trans- ferred to the buyer (generally when the transaction is finalised). Expenses that fulfil the capitalisation require- ments defined in the accounting policies in Note P4.1 “Intangible assets” are included gross in this note but subsequently capitalised and added to “Intangible assets” on the balance sheet. This note includes the specifications for the income state- ment line items “Other administrative expenses” and “Other operating expenses”. Other administrative expenses EURm 2025 2024 Information technology1 -1,081 -1,019 Marketing and representation -58 -68 Postage, transport, telephone and office expenses -38 -42 Market data services -65 -67 Other personnel expenses -97 -98 Travelling -22 -28 Other -95 -62 Total ­1,456 ­1,384 Expenses capitalised for IT development projects 2 322 280 Total ­1, 134 ­1, 104 1) “In formation technology” includes IT consultancy. 2) See No te P4.1 “Intangible assets”. Other operating expenses EURm 2025 2024 Rent, premises and real estate -270 -258 Fees to authorities1 -59 -123 Professional services2 -157 -180 Other 4 -69 Total ­482 ­630 1) “F ees to authorities” includes deposit guarantee fees, supervisory fees, adminis - trative fees to authorities as well as membership fees to banking associations. 2) “Pr ofessional services” includes the fees for the auditor. Auditor’s fees1 EURm 2025 2024 PricewaterhouseCoopers Auditing assignments -6 -7 Audit-related services2 0 0 Other assignments2 -1 -1 Total ­7 ­8 1) Audit or’s fees in the table are disclosed excluding non-deductible VAT. 2) Pric ewaterhouseCoopers Oy accounted for EUR -0.8m (EUR -0.1m) of “Audit- related services”, of which EUR -0.6m refers to CSRD Assurance, and for EUR -0.4m (EUR -1.2m, of which EUR -0.6m refers to CSRD Assurance) of “Other assignments”. Neither PricewaterhouseCoopers Oy nor any other firm of PricewaterhouseCoopers Network has provided any tax advisory services. P2.8 Regulatory fees Accounting policies Regulatory fees consist of levies imposed by a gov- ernment. The expenses for such levies are recog- nised when the obligating event that gives rise to a liability to pay a levy has occurred. Regulatory fees EURm 2025 2024 Risk tax -56 -52 Interest-free deposit in the Swedish central bank -4 – Total ­60 ­52 Resolution fees are not refundable if Nordea discontinues its operations, and the obligating event is consequently assessed to occur on the first day of the year and the fee is recognised in full in the first quarter. The Single Resolution Fund reached its target level of at least 1% of covered deposits held in EU member states. As a result, no resolu- tion fee was collected by the Single Resolution Board in 2025 and 2024. The Swedish risk tax (previously referred to as Bank tax) is refundable for the period during which Nordea does not operate, and the obligating event is therefore assessed to occur continuously over the year and the risk tax being amortised on a straight-line basis over the course of the year. Starting from 2025 the Swedish Central Bank can each year request interest-free deposits from credit institutions with operations in Sweden. Nordea recognises a regula- tory fee representing the interest that would otherwise have been received on the deposit over its lifetime (usually one year). The regulatory fee is recognised in full on the date of the deposit that is assessed to constitute the obli- gating event. The regulatory fee is amortised as interest income over the lifetime of the deposit as part of the effective interest on the deposit which is presented under “Loans to central banks”. ===== SIDA 317 ===== Nordea Annual Report 2025 316 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.9 Depreciation, amortisation and impairment charges Accounting policies Intangible and tangible assets are depreciated/ amortised on a straight-line basis over the estimated useful life of the assets. All intangible assets are also reviewed for indications of impairment and if such indications are found, the assets are tested for impairment. IT development not yet taken into use is not amortised but tested for impairment annually irrespective of any indications of impairment. Impairment testing is also performed more fre- quently if required due to any indication of impair- ment. The impairment charge is calculated as the difference between the carrying amount and the recoverable amount. Accounting policies for intangible and tangible assets can be found in Note P4 “Intangible and tan- gible assets”. Impairment of investments in group undertakings, associated undertakings and joint ventures is also presented in the line item “Depreciation, amortisa- tion and impairment charges” in the income state- ment. Further information on group undertakings owned by Nordea Bank Abp can be found in Note P8.1 “Investments in group undertakings”, and infor- mation on associated undertakings and joint ven- tures can be found in Note P8.2 “Investments in associated undertakings and joint ventures”. Depreciation, amortisation and impairment charges EURm 2025 2024 Amortisation of intangible assets Goodwill -13 -18 Customer-related intangible assets -2 – Internally developed software -318 -280 Software licences -51 -43 Total amortisation ­384 ­341 Depreciation of tangible assets Equipment -13 -12 Leasehold improvements -21 -21 Total depreciation ­34 ­33 Impairment of intangible assets Internally developed software -2 -13 Total impairment charges ­2 ­13 Impairment of investments in group undertakings, associated undertakings and joint ventures Associated undertakings and joint ventures -8 2 Total impairment charges ­8 2 Total ­4 28 ­385 P2.10 Net l oan losses Accounting policies Impairment losses on financial assets classified in the category “Amortised cost” (see Note P3.3 “Classification and measurement”), in the line items “Loans to credit institutions”, “Loans to the public” and “Interest-bearing securities” on the balance sheet, are reported as “Net loan losses” in the income statement. The table shows the loan losses by line item in the balance sheet. The losses from financial guarantees are also included in “Net loan losses”. The losses are reported net of the impact from any collateral and other credit enhancements. Nordea Bank Abp’s accounting policies for the calcu- lation of impairment losses on loans can be found in Note P3.7 “Loans”. Counterparty losses on financial instruments clas- sified in the category “Financial assets at fair value through profit or loss”, including credit derivatives but excluding loans held at fair value, are reported under “Net result from securities at fair value, through profit or loss”. For more information see Note P2.4 “Total net result from items at fair value”. More information on credit risk can be found in Note P10 “Risk and liquidity management“. Net loan losses Loans to credit institutions2 Loans to the public2 Interest­bearing securities3 Off­ balance sheet items4 Total EURm 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net loan losses, stage 1 2 0 36 32 0 2 26 -12 64 22 Net loan losses, stage 2 0 0 59 55 0 – 2 -22 61 33 Net loan losses, not credit­ impaired assets 2 0 95 87 0 2 28 ­34 125 55 Stage 3, credit­impaired assets Net loan losses, individually assessed, collectively calculated1 0 1 22 34 – – -3 -5 19 30 Realised loan losses – – -277 -139 – – 0 – -277 -139 Decrease in provisions to cover realised loan losses – – 162 77 – – – – 162 77 Reimbursement right – – – – – – 24 7 24 7 Recoveries of previously realised loan losses 1 3 14 17 – – – – 15 20 New/increase in provisions – – -240 -281 – – -29 -10 -269 -291 Reversals of provisions – – 163 146 – – 15 12 178 158 Net loan losses, credit­impaired assets 1 4 ­156 ­146 – – 7 4 ­148 ­138 Net loan losses1 3 4 ­61 ­59 0 2 35 ­30 ­23 ­83 1) Incl udes individually identified assets for which the provision has been calculated based on statistical models. 2) Pr ovisions included in Note P3.7 “Loans”. 3) Pr ovisions included in Note P3.8 “Interest-bearing securities”. 4) Pr ovisions included in Note P5 “Provisions”. ===== SIDA 318 ===== Nordea Annual Report 2025 317 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.11 Taxes Accounting policies The line item “Income tax expense” in the income statement consists of the total current tax and deferred tax movements recognised in the income statement. Current and deferred taxes are recog- nised in the income statement unless the tax effects relate to items recognised directly in equity, in which case the tax effects are recognised in equity. Current tax is the expected tax expense on the tax- able income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities are recognised for temporary differences between the carrying amounts of assets and liabilities for financial report- ing purposes and the tax base of the same assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied when the tem- porary differences reverse, based on the laws that have been enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are not discounted. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which temporary differ- ences, tax losses carried forward and unused tax credits can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Current tax assets and current tax liabilities are offset when the legal right to offset exists and Nordea Bank Abp intends to either settle the tax asset and the tax liability net or recover the asset and settle the liability simultaneously. Deferred tax assets and deferred tax liabilities are generally off- set if there is a legally enforceable right to offset current tax assets and current tax liabilities. Tax positions are regularly reviewed to identify situations where it is not probable that the relevant tax authorities will accept the treatment used in the tax filings. Uncertain tax positions are considered independently or as a group, depending on which approach better predicts the resolution of the uncer- tainty. If Nordea Bank Abp concludes that it is not probable that the tax authorities will accept an uncertain tax treatment, the effect of uncertainty is reflected when determining the related taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates. This is done by using either the most likely amount or the expected value, depending on which method better predicts the out- come of the uncertainty. Uncertain tax treatment can affect both current tax and deferred tax. When recognising deferred tax assets and liabili- ties, any jurisdictional impact of Global Anti-Base Erosion (Pillar Two) Rules is not taken into account but is accounted for as a current tax if incurred. Income tax expense EURm 2025 2024 Current tax -1,136 -752 Deferred tax 145 -285 Total ­991 ­1,037 The tax on operating profit differs from the theoretical amount that would arise using the tax rate in Finland as follows: EURm 2025 2024 Profit before tax 5,733 5,227 Tax calculated at a tax rate of 20.0% -1,147 -1,045 Effect of different tax rates in other countries -119 -121 Tax-exempt income 317 162 Non-deductible expenses -52 -43 Prior year adjustments 4 8 Change of tax rate1 3 1 Other 3 1 Tax charge ­991 ­1,037 Effective tax rate 17.3% 19.8% 1) In November 2025 the Polish Parliament introduced an amendment to the Polish Corporate Income Tax (CIT) Act, changing CIT rates for banks and credit institu- tions to 30% in 2026, 26% in 2027 and 23% from 2028 onwards. Relevant deferred tax assets and liabilities have been remeasured to reflect these new rates. Deferred tax assets and liabilities EURm Deferred tax assets Deferred tax liabilities 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Tax losses carried forward2 – 194 – – Loans to the public 52 64 0 1 Derivatives/bonds – – 189 530 Properties and equipment – – 22 9 Intangible assets 10 20 42 52 Retirement benefits 81 52 96 94 Liabilities/provisions 50 57 – – Elimination of temporary differences existing in multiple jurisdictions – – 35 49 Other 9 4 1 8 Netting between deferred tax assets and liabilities -177 -366 -177 -366 Total1 25 25 208 377 1) Deferred tax assets recognised through the fair value reserve totalled EUR 75m (EUR 71m). Deferred tax liabilities recognised through the fair value reserve totalled EUR 43m (EUR 69m). 2) Tax losses carried forward arising from temporary differences in branch jurisdictions. Global Anti­Base Erosion tax reform (Pillar Two) In December 2022 the European Union member states adopted a directive to implement the Pillar Two Rules. Most jurisdictions in which Nordea operates enacted the Pillar Two legislation as of 1 January 2024, including Finland where Nordea Bank Abp is incorporated. For more information on the implementation of the Pillar Two Rules, see the Group’s Note G2.11 “Taxes”. ===== SIDA 319 ===== Nordea Annual Report 2025 318 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3 Financial instruments P3.1 Recognition on and derecognition from the balance sheet Accounting policies Derivative instruments, quoted securities and foreign exchange spot transactions are recognised on and derecognised from the balance sheet on the trade date. A corresponding asset or liability is then recog- nised in “Other assets” or “Other liabilities” on the balance sheet between the trade date and the set- tlement date. Other financial instruments are recog- nised on the balance sheet on the settlement date. An asset or a liability is recognised in “Other assets” or “Other liabilities” on the balance sheet between the trade date and the settlement date. Financial assets, other than those for which trade date accounting is applied, are derecognised from the balance sheet when the contractual rights to the cash flows from the financial assets expire or are transferred to another party. The rights to the cash flows normally expire or are transferred when the counterparty has performed by e.g. repaying a loan to Nordea Bank Abp, i.e. on the settlement date. Rights to cash flows may also expire when loans are rolled over or modified. The rights to cash flows are generally considered to have expired if the change is at market rates and no payment-related concession has been provided. In some cases, Nordea Bank Abp enters into agreements where it transfers assets that are recog- nised on the balance sheet but retains either all or a portion of the risks and rewards of the transferred assets. If all or substantially all risks and rewards are retained, the transferred assets are not derecognised from the balance sheet. If Nordea Bank Abp’s coun- terparty can sell or repledge the transferred assets, the assets are disclosed. Transfers of assets with retention of all or substantially all risks and rewards include securities lending agreements and repur- chase agreements. Financial liabilities are derecognised from the bal- ance sheet when the liability is extinguished. Nor- mally this occurs when Nordea Bank Abp fulfils its part of the agreement, for example when Nordea Bank Abp returns a deposit to the counterparty, i.e. on the settlement date. Financial liabilities where the cash flows are modified or rolled over are also derec- ognised if the new terms are substantially different from the terms of the original liabilities. This is the case if the present value of the cash flows under the new terms discounted by the original interest rate dif- fers by 10% or more from the discounted present value of the remaining expected cash flows of the original financial liability. Qualitative factors also considered. A sale of a security not owned by Nordea Bank Abp is defined as a short sale and triggers the rec- ognition of a trading liability (sold, not held, securi- ties) presented in “Other liabilities” on the balance sheet. The short sale is generally covered through a securities financing transaction, normally a reverse repurchase agreement or other forms of securities borrowing agreements. P3.2 Transferred assets and obtained collateral Accounting policies Assets are considered to be transferred from Nordea Bank Abp if Nordea Bank Abp either transfers the contractual right to receive the cash flows from the assets or retains that right but has a contractual obli- gation to pay the cash flows to one or more parties. All assets transferred continue to be recognised on the balance sheet if Nordea Bank Abp is still exposed to changes in the fair value of the assets. Collateral received is not recognised on the bal- ance sheet if Nordea Bank Abp is not exposed to changes in the fair value of the assets. Transferred assets that are not derecognised in their entirety and associated liabilities Repurchase agreements are a form of collateral borrowing where Nordea Bank Abp sells securities with an agree- ment to repurchase them at a later date at a fixed price. Securities lending agreements are agreements where Nordea Bank Abp lends securities to a counterparty and receives a fee. Generally, securities lending agreements are entered into on a collateralised basis. As both repurchase agreements and securities lending agreements result in the securities being returned to Nordea Bank Abp, all risks and rewards associated with the instruments transferred are retained by Nordea Bank Abp although the instruments are not available to Nordea Bank Abp during the period during which they are transferred. The counterparties to the agreements hold the securities as collateral but have no recourse to other assets in Nordea Bank Abp. For this reason securities delivered under repur- chase agreements and securities lending agreements are not derecognised from the balance sheet. Securities deliv- ered under repurchase agreements and securities lending agreements are also disclosed in Note P6.3 “Assets pledged”. Cash received under repurchase agreements and securities lending agreements is recognised on the balance sheet in “Deposits by credit institutions and central banks” or “Deposits and borrowings from the public”. In derivative agreements Nordea Bank Abp delivers col- lateral which, under the terms of the agreements, can be sold or repledged. Such agreements are mainly related to collateral delivered under credit support annex agreements. Transferred assets not derecognised from the balance sheet EURm 31 Dec 2025 31 Dec 2024 Repurchase agreements Interest-bearing securities 10,813 9,504 Securities lending agreements Interest-bearing securities 1,658 392 Shares 1,910 511 Derivatives agreements Interest-bearing securities 486 27 Total 14,867 10,435 Liabilities associated with the assets 1 EURm 31 Dec 2025 31 Dec 2024 Repurchase agreements 10,813 9,504 Securities lending agreements 3,568 904 Derivative agreements 486 27 Total 14,867 10,435 Net 0 0 1) Liabilities before offsetting between assets and liabilities on the balance sheet. Obtained collateral permitted to be sold or repledged Nordea Bank Abp obtains collateral under reverse repur- chase and securities borrowing agreements which, under the terms of the agreements, can be sold or repledged. The transactions are conducted under standard agree- ments employed by financial market participants. Generally, the agreements require additional collateral to be provided if the value of the securities falls below a pre- determined level. Under the standard terms of most repur- chase transactions, the recipient of collateral has an unre- stricted right to sell or repledge it, subject to returning equivalent securities on settlement of the transactions. Securities received under reverse repurchase and secu- rities borrowing agreements are not recognised on the balance sheet. Cash delivered under reverse repurchase and securities borrowing agreements is recognised on the balance sheet in “Loans to central banks”, “Loans to credit institutions” or “Loans to the public”. The fair value of the securities obtained as collateral under reverse repurchase and securities borrowing agree- ments is disclosed below. Nordea Bank Abp also obtains collateral under other agreements which, under the terms of the agreements, can be sold or repledged. Such collateral is mainly received under credit support annex agreements covering derivative agreements. The received collateral pre- sented in the table below is not recognised on the balance sheet and includes collateral issued by Nordea Bank Abp. ===== SIDA 320 ===== Nordea Annual Report 2025 319 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.2 T ransferred assets and obtained collateral, cont. Obtained collateral permitted to be sold or repledged EURm 31 Dec 2025 31 Dec 2024 Reverse repurchase agreements Collateral received that can be repledged or sold 34,333 31,067 - of which repledged or sold 10,709 16,163 Securities borrowing agreements Collateral received that can be repledged or sold 5,838 4,174 - of which repledged or sold 1,774 493 Derivative agreements Collateral received that can be repledged or sold 1,581 3,309 - of which repledged or sold 575 673 Other agreements Collateral received that can be repledged or sold 0 4 - of which repledged or sold – – Total 41,752 38,554 Receivables related to reverse repurchase agreements recognised on the balance sheet and liabilities related to repurchase agreements recognised on the balance sheet are presented in the table below. Receivables related to reverse repurchase agreements EURm 31 Dec 2025 31 Dec 2024 Loans to credit institutions 4,467 2,330 Loans to the public 30,573 25,858 Total 35,040 28,188 Liabilities related to repurchase agreements EURm 31 Dec 2025 31 Dec 2024 Deposits by credit institutions and central banks 20,932 21,298 Deposits and borrowings from the public 17,066 9,192 Total 37,998 30,490 P3.3 Classifica tion and measurement Accounting policies Each financial instrument has been classified in one of the following categories: Financial assets: • Amortised cost • Financial assets at fair value through profit or loss: - Mandatorily measured at fair value through profit or loss - Designated at fair value through profit or loss (fair value option) • Financial assets at fair value through other comprehensive income. Financial liabilities: • Amortised cost • Financial liabilities at fair value through profit or loss: - Mandatorily measured at fair value through profit or loss - Designated at fair value through profit or loss (fair value option). The classification of a financial asset is dependent on the business model for the portfolio in which the instrument is included and on whether the contractual cash flows are solely payments of principal and inter- est (SPPI). Contractual cash flows that are SPPI are consistent with a basic lending arrangement. In a basic lending arrangement, interest can include compensation for the time value of money, credit risk, liquidity risk, costs and profit margin. Financial assets with contractual cash flows that are not SPPI are measured at fair value through profit or loss. All other assets are classified based on the busi- ness model. Instruments included in a portfolio with a business model where the intention is to keep the instruments and collect contractual cash flows are measured at amortised cost. Instruments included in a business model where the intention is both to keep the instruments to collect the contractual cash flows and to sell the instruments are measured at fair value through the fair value reserve in equity. Financial assets included in any other business model are meas- ured at fair value through profit or loss. In order to determine the business model, Nordea Bank Abp has divided its financial assets into portfolios and/or sub-portfolios based on how groups of finan- cial assets are managed together to achieve a particu- lar business objective. When determining the right level for the portfolios, Nordea Bank Abp has taken the current business area structure into account. When determining the business model for each portfolio, Nordea Bank Abp has analysed the objective of the financial assets as well as, for instance, past sales behaviour and management compensation. All financial assets and liabilities are initially meas- ured at fair value. The classification of financial instru- ments into different categories forms the basis for how each instrument is subsequently measured on the bal- ance sheet and how changes in its value are recog- nised. The classification of the financial instruments on Nordea Bank Abp’s balance sheet into the different categories under IFRS 9 is presented in the table “Classification of financial instruments” in Note P3.3 “Classification and measurement”. Amortised cost Financial assets and liabilities measured at amortised cost are initially recognised on the balance sheet at fair value, including transaction costs. Subsequent to initial recognition, the instruments within this category are measured at amortised cost. In an amortised cost meas- urement, the difference between acquisition cost and redemption value is amortised in the income statement over the remaining term using the effective interest rate method. Amortised cost is defined as the amount at which the financial asset or financial liability is meas- ured at initial recognition minus the principal repay- ments, plus or minus the cumulative amortisation of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The cumulative amortisation is calculated using the effective interest rate method. For more infor- mation about the effective interest rate method, see Note P2.2 “Net interest income”. For information about impairment under IFRS 9, see Note P3.7 “Loans”. Interest on assets and liabilities classified at amortised cost is generally recognised under “Interest income” and “Interest expense” in the income statement. Financial assets and financial liabilities at fair value through profit or loss Financial assets and financial liabilities at fair value through profit or loss are measured at fair value, excluding transaction costs. Changes in fair value are generally recognised directly in the income statement under “Net result from securities at fair value through profit or loss”. For estimation of fair value, see Note P3.4 “Fair value”. The category consists of two sub-categories: “Mandatorily measured at fair value through profit or loss” and “Designated at fair value through profit or loss (fair value option)”. The sub-category “Designated at fair value through profit or loss (fair value option)” is an option to measure financial assets and liabilities at fair value with the changes in fair value recognised in profit or loss. This option can be used if it eliminates or significantly reduces an accounting mismatch and for liabilities if they are managed on a fair value basis. Changes in credit risk related to liabilities designated at fair value through profit or loss are recognised in the fair value reserve unless it creates an accounting mismatch. Interest income and interest expense related to bal- ance sheet items held at fair value through profit or loss are generally classified as “Net result from securi- ties at fair value through profit or loss”. For more infor- mation, including exceptions from this general rule, see Note P2.4 “Total net result from items at fair value” and Note P2.2 “Net interest income”. ===== SIDA 321 ===== Nordea Annual Report 2025 320 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.3 Classifica tion and measurement, cont. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehen- sive income are initially measured at fair value plus transaction costs. Changes in fair value, except for inter- est, foreign exchange effects and impairment losses, are recognised in the fair value reserve in equity. Interest is recognised under “Interest income”, foreign exchange effects under “Net result from securities at fair value through profit or loss” and impairment losses under ”Net loan losses” in the income statement. When an instrument is disposed of, the fair value changes previ- ously accumulated in the fair value reserve are removed from equity and recognised in the income statement under “Net result from securities at fair value through fair value reserve”. For information about impairment under IFRS 9, see Note P3.7 “Loans”, and about estima- tion of fair value, see Note P3.4 “Fair value”. Hybrid (combined) financial instruments Hybrid (combined) financial instruments are contracts containing a host contract and an embedded deriva- tive instrument. Such combinations arise predomi- nantly from the issuance of structured debt instru- ments, such as issued index-linked bonds and loans with embedded collars and caps. For structured bonds issued by Markets, Nordea Bank Abp applies the fair value option, and the entire combined instrument, the host contract together with the embedded derivative, is measured at fair value through profit or loss and presented in “Debt securities in issue” on the balance sheet. Changes in fair value are recognised in the income statement under “Net result from securities at fair value through profit or loss” except for changes in Nordea Bank Abp’s own credit risk which is recognised in fair value reserve. Issued debt and equity instruments A financial instrument issued by Nordea Bank Abp is either classified as a financial liability or equity. Issued financial instruments are classified as financial liabili- ties if the contractual arrangements result in Nordea Bank Abp having a present obligation to either deliver cash or another financial asset or a variable number of equity instruments to the holder of the instrument. If this is not the case, the instrument is generally an equity instrument and classified as equity, net of trans- action costs. If issued financial instruments contain both liability and equity components, these are accounted for separately. Offsetting of financial assets and liabilities Nordea Bank Abp offsets financial assets and liabilities on the balance sheet if there is a legal right to offset and if the intent is to settle the items net or realise the asset and settle the liability simultaneously. The legal right to offset should exist both in the ordinary course of business and in case of the default, bankruptcy and insolvency of Nordea Bank Abp and its counterparties. Exchanged-traded derivatives are generally accounted for and settled on a daily basis when cash is paid or received, and the instrument is reset to market terms. Derivative assets, derivative liabilities, cash col- lateral receivables and cash collateral liabilities against central counterparty clearing houses are set off on the balance sheet if the assets and liabilities are settled in the same transaction currency and relate to the same central counterparty. Derivative assets, derivative liabil- ities, cash collateral receivables and cash collateral lia- bilities related to bilateral OTC derivative agreements are not set off on the balance sheet. In addition, loans and deposits related to repurchase and reverse repurchase agreements with central coun- terparty clearing houses are set off on the balance sheet if the assets and liabilities relate to the same cen- tral counterparty, are settled in the same currency and have the same maturity date. Loans and deposits related to repurchase and reverse repurchase agree- ments that are made in accordance with the Global Master Repurchase Agreement are set off on the bal- ance sheet if the assets and liabilities relate to the same counterparty, are settled in the same currency, have the same maturity date and are settled through the same settlement institution. The fact that financial instruments are accounted for on a gross basis on the balance sheet does not imply that the financial instruments are not subject to master netting agreements or similar arrangements. Generally, financial instruments (derivatives, repurchase agree- ments and securities lending agreements) are subject to master netting agreements, and Nordea Bank Abp is consequently able to benefit from netting any calcu- lations involving counterparty credit risk in the event of the default of its counterparties. For a description of counterparty credit risk, see also Note P10 “Risk and liquidity management”, section 3 “Counterparty credit risk“. Classification of financial instruments Assets 31 Dec 2025, EURm Amortised cost Financial assets at fair value through profit or loss mandatorily Fair value through other comprehensive income Total financial assets Cash and balances with central banks 36,338 – – 36,338 Loans to credit institutions 84,209 3,238 – 87,447 Loans to the public 132,343 36,124 – 168,467 Interest-bearing securities1 11,355 26,172 51,342 88,869 Shares – 18,280 – 18,280 Derivatives – 18,241 – 18,241 Fair value changes of hedged items in portfolio hedges of interest rate risk -56 – – -56 Other assets 748 4,001 – 4,749 Prepaid expenses and accrued income 171 – – 171 Total 265,108 106,056 51,342 422,506 1) Incl uding the balance sheet line item “Debt securities eligible for refinancing with central banks” amounting to EUR 78,724m. Liabilities 31 Dec 2025, EURm Amortised cost Financial liabilities at fair value through profit or loss Total financial liabilities Mandatorily Designated at fair value through profit or loss (fair value option) Deposits by credit institutions and central banks 18,936 23,091 – 42,027 Deposits and borrowings from the public 225,165 21,130 4,007 250,302 Debt securities in issue 77,060 – 1,931 78,991 Derivatives – 18,857 – 18,857 Fair value changes of hedged items in portfolio hedges of interest rate risk -567 – – -567 Other liabilities 2,551 9,304 – 11,855 Accrued expenses and prepaid income 22 1 – 23 Subordinated liabilities 8,810 – – 8,810 Total 331,977 72,383 5,938 410,298 ===== SIDA 322 ===== Nordea Annual Report 2025 321 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.3 Classification and measurement, cont. Classification of financial instruments Assets 31 Dec 2024, EURm Amortised cost Financial assets at fair value through profit or loss mandatorily Fair value through other comprehensive income Total financial assets Cash and balances with central banks 44,862 – – 44,862 Loans to credit institutions 73,163 1,976 – 75,139 Loans to the public 123,348 28,629 – 151,977 Interest-bearing securities1 9,502 26,114 45,363 80,979 Shares – 17,491 – 17,491 Derivatives – 26,054 – 26,054 Fair value changes of hedged items in portfolio hedges of interest rate risk -69 – – -69 Other assets 639 5,840 – 6,479 Prepaid expenses and accrued income 557 0 – 557 Total 252,002 106,104 45,363 403,469 1) Including the balance sheet line item “Debt securities eligible for refinancing with central banks” amounting to EUR 71,349m. Liabilities 31 Dec 2024, EURm Amortised cost Financial liabilities at fair value through profit or loss Total financial liabilities Mandatorily Designated at fair value through profit or loss (fair value option) Deposits by credit institutions and central banks 15,570 20,736 – 36,306 Deposits and borrowings from the public 218,759 17,030 4,317 240,106 Debt securities in issue 68,418 – 1,709 70,127 Derivatives – 25,927 – 25,927 Fair value changes of hedged items in portfolio hedges of interest rate risk -458 – – -458 Other liabilities 2,935 8,017 – 10,952 Accrued expenses and prepaid income 15 0 – 15 Subordinated liabilities 7,410 – – 7,410 Total 312,649 71,710 6,026 390,385 Amortised cost This category mainly consists of all loans (including those with embedded collars and caps) and deposits, except for reverse repurchase/repurchase agreements and securities borrowing/lending agreements in Markets. This category also includes interest-bearing securities in hold-to-collect portfolios in Group Treasury, subordinated liabilities and debt securities in issue, except for structured bonds issued by Markets. Nordea Bank Abp has issued financial assets with con- tractual terms that could change the amount of the con- tractual cash flows based on the occurrence (or non-oc- currence) of a contingent event that does not relate directly to changes in basic lending risk and costs (such as the time value of money or credit risk). This covers loans and bonds with terms linking contractual cash flows to the customers’ achievement of environmental, social and gov- ernance (ESG) targets, so called sustainability-linked loans and bonds. At the end of the year the carrying amount of the sustainability-linked loans recognised on the balance sheet amounted to EUR 9,091m (EUR 9,264m). Nordea Bank Abp has also issued financial liabilities in the form of Additional Tier 1 (AT1) instruments with con- tractual terms that could change the amount of the con- tractual cash flows based on the occurrence (or non-oc- currence) of a contingent event that does not relate directly to changes in basic lending risk and costs (such as the time value of money or credit risk). These AT1 instru- ments are measured at amortised cost and presented in the balance sheet line item “Subordinated liabilities”. The interest payments are fully discretionary and mandatorily cancelled under certain circumstances. For more informa- tion about the terms of these AT1 instruments, see Note P3.14 “Subordinated liabilities”. For more information about the risk associated with sustainability-linked loans see section 2.1 “Credit risk defi- nition and identification” in Note G11 “Risk and liquidity management”. Mandatorily measured at fair value through profit or loss The sub-category “Mandatorily measured at fair value through profit or loss” mainly contains all assets and trad- ing liabilities in Markets, interest-bearing securities in the liquidity buffer, derivatives, shares and financial assets in pooled schemes. Deposits in pooled schemes are contracts with customers where most or all of the risk is borne by the policyholders. The deposits are invested in different types of financial assets on behalf of customers. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income mainly consist of the interest-bearing securities in the liquidity buffer. Financial liabilities designated at fair value through profit or loss (fair value option) Nordea Bank Abp applies the fair value option to struc- tured bonds issued by Markets, EUR 1,931m (EUR 1,709m), as these hybrid instruments, such as issued index-linked bonds, include embedded derivatives not closely related to the host contract. The host contract together with the embedded derivative is measured at fair value through profit or loss and presented in “Debt securities in issue” on the balance sheet. The change in the fair value of these issued structured bonds is recognised in the income state- ment under “Net result from securities at fair value through profit or loss” except for the changes in own credit risk, which are recognised in equity. Nordea Bank Abp calculates the change in its own credit spread as the change in its total funding spread, thus assuming a con- stant issuance premium on all issues over time. The change in the credit spread is estimated by comparing the value of the trades using the initial funding spread on the issuance date and the actual funding spread on the reporting date. This model is assessed to provide the best estimate of the impact of own credit risk. Deposits in pooled schemes, EUR 4,007m (EUR 4,318m), are designated at fair value through profit or loss as they are managed at fair value. The value of these deposits is directly linked to the fair value of the underlying assets, and changes in own credit risk consequently have no net impact. ===== SIDA 323 ===== Nordea Annual Report 2025 322 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.3 Classification and measurement, cont. Financial liabilities designated at fair value through profit or loss 31 Dec 2025, EURm Liabilities for which changes in credit risk are presented in fair value reserve Liabilities for which changes in credit risk are presented in profit or loss Total Carrying amount at end of year 1,931 4,007 5,938 Amount to be paid at maturity 1,891 4,007 5,898 Changes in fair value due to changes in own credit risk, during the year 2 – 2 Changes in fair value due to changes in own credit risk, accumulated -3 – -3 31 Dec 2024, EURm Liabilities for which changes in credit risk are presented in fair value reserve Liabilities for which changes in credit risk are presented in profit or loss Total Carrying amount at end of year 1,709 4,318 6,027 Amount to be paid at maturity 1,697 4,318 6,015 Changes in fair value due to changes in own credit risk, during the year -8 – -8 Changes in fair value due to changes in own credit risk, accumulated -4 – -4 P3.4 Fair value Accounting policies Fair value is defined as the price that at the meas- urement date would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value meas- urement assumes that the transaction takes place under current market conditions in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous mar- ket for the asset or liability. The existence of published price quotations in an active market is the best evidence of fair value and when they exist, they are used to measure financial assets and financial liabilities. An active market for the asset or liability is a market in which transac- tions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The absolute level of liquidity and volume required for a market to be considered active varies depending on the class of instruments. The trade frequency and volume are monitored regularly in order to assess if markets are active or not active. If quoted prices for a financial instrument fail to represent actual and regularly occurring mar- ket transactions or if quoted prices are not available, fair value is established by using an appropriate val- uation technique. The adequacy of the valuation technique, including an assessment of whether to use quoted prices or theoretical prices, is monitored on a regular basis. Valuation techniques can range from a simple dis- counted cash flow analysis to complex option pric- ing models. Valuation techniques are designed to apply observable market prices and rates as input whenever possible but can also make use of unob- servable model parameters. The adequacy of the valuation technique is assessed by measuring its ability to match market prices. This is done by com- paring calculated prices with relevant benchmark data, e.g. quoted prices from exchanges, the coun- terparty’s valuations, price data from consensus ser- vices etc. For financial instruments whose fair value is esti- mated by a valuation technique, it is investigated whether the variables used are predominantly based on data from observable markets. Nordea Bank Abp considers data from observable markets to be data that can be collected from generally available exter- nal sources and which is deemed to represent realis- tic market prices. If unobservable data has a signifi- cant impact on the valuation, the instrument cannot be recognised initially at the fair value estimated by the valuation technique and any upfront gains are thereby deferred and amortised through the income statement over the contractual life of the instrument. The deferred upfront gains are subsequently released to income if the unobservable data becomes observable. Fair value measurements of assets and liabilities are categorised under the three levels of the IFRS fair value hierarchy. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The categorisation of these instruments is based on the lowest level input that is significant to the fair value measurement in its entirety. Level 1 in the fair value hierarchy consists of assets and liabilities valued using unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 in the fair value hierarchy consists of assets and liabilities where directly quoted market prices are not available in active markets. The fair values are based on quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active. Alternatively, the fair values are estimated using valuation techniques or valuation models based on market prices or inputs prevailing at the balance sheet date and where unobservable inputs have not had a significant impact on the fair values. Level 3 in the fair value hierarchy consists of assets and liabilities for which fair values cannot be obtained directly from quoted market prices or indi- rectly using valuation techniques or models sup- ported by observable market prices or rates. ===== SIDA 324 ===== Nordea Annual Report 2025 323 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.4 Fair value, cont. Fair value of financial assets and liabilities EURm 31 Dec 2025 31 Dec 2024 Financial assets Carrying amount Fair value Carrying amount Fair value Cash and balances with central banks 36,338 36,338 44,862 44,862 Loans1 255,858 256,671 227,047 227,991 Interest-bearing securities2 88,869 88,820 80,979 80,941 Shares 18,280 18,280 17,491 17,491 Derivatives 18,241 18,241 26,054 26,054 Other assets 4,749 4,749 6,479 6,479 Prepaid expenses and accrued income 171 171 557 557 Total 422,506 423,271 403,469 404,375 EURm 31 Dec 2025 31 Dec 2024 Financial liabilities Carrying amount Fair value Carrying amount Fair value Deposits and debt securities in issue3 379,563 380,343 353,491 354,083 Derivatives 18,857 18,857 25,927 25,927 Other liabilities 11,855 11,855 10,952 10,952 Accrued expenses and prepaid income 23 23 15 15 Total 410,298 411,078 390,385 390,977 1) Consists of the balance sheet line items “Loans to the public”, “Loans to credit institutions” and “Fair value changes of hedged items in portfolio hedges of interest rate risk”. 2) Including the balance sheet line item “Debt securities eligible for refinancing with central banks” amounting to EUR 78,724m (EUR 71,349m). 3) Consists of the balance sheet line items “Deposits and borrowings from the public”, “Deposits by credit institutions and central banks “, “Debt securities in issue” and “Subordinated liabilities”. For non-maturing deposits fair value equals the nominal amount, whereas the carrying amount also includes the revaluation for the hedged items presented on the balance sheet row “Fair value of hedged items in portfolio hedges of intrest rate risk”. Fair value of items measured at fair value on the balance sheet Determination of fair value For information about determination of the fair value of items measured at fair value on the balance sheet, see the section “Determination of the fair value of items measured at fair value on the balance sheet” in the Group’s Note G3.4 “Fair value”. However, the section concerning loans and issued debt securities in the subsidiary Nordea Kredit Realkredit aktieselskab is not applicable to Nordea Bank Abp. For information about the valuation of items measured at fair value on the balance sheet, see the section “Accounting policies“ in this note and the section “Determination of the fair value” in the Group’s Note G3.4 “Fair value”. For information about the valuation of items not measured at fair value on the balance sheet, see the section “Financial assets and liabilities not held at fair value on the balance sheet” in the Group’s Note G3.4 “Fair value”. Financial assets and liabilities held at fair value on the balance sheet Categorisation in the fair value hierarchy 31 Dec 2025, EURm Quoted prices in active markets for the same instrument (Level 1) Valuation technique using observable data (Level 2) Valuation technique using unobservable data (Level 3) Total Assets at fair value on the balance sheet1 Loans to credit institutions – 3,238 – 3,238 Loans to the public – 36,124 – 36,124 Interest-bearing securities2 22,821 50,789 3,904 77,514 Shares 16,848 79 1,353 18,280 Derivatives 71 16,813 1,357 18,241 Other assets 20 3,981 – 4,001 Total 39,760 111,024 6,614 157,398 Liabilities at fair value on the balance sheet1 Deposits by credit institutions – 23,091 – 23,091 Deposits and borrowings from the public – 25,137 – 25,137 Debt securities in issue – 279 1,652 1,931 Derivatives 202 17,585 1,070 18,857 Other liabilities 2,447 6,693 164 9,304 Total 2,649 72,785 2,886 78,320 1) All items are measured at fair value on a recurring basis at the end of each reporting period. 2) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. 31 Dec 2024, EURm Quoted prices in active markets for the same instrument (Level 1) Valuation technique using observable data (Level 2) Valuation technique using unobservable data (Level 3) Total Assets at fair value on the balance sheet1 Loans to credit institutions – 1,976 – 1,976 Loans to the public – 28,629 – 28,629 Interest-bearing securities2 24,787 45,518 1,172 71,477 Shares 15,972 96 1,423 17,491 Derivatives 55 25,038 961 26,054 Other assets 15 5,825 – 5,840 Total 40,830 107,081 3,556 151,467 Liabilities at fair value on the balance sheet1 Deposits by credit institutions – 20,735 – 20,735 Deposits and borrowings from the public – 21,347 – 21,347 Debt securities in issue 1 356 1,352 1,709 Derivatives 118 25,219 590 25,927 Other liabilities 1,153 6,621 243 8,017 Total 1,272 74,279 2,185 77,736 1) All items are measured at fair value on a recurring basis at the end of each reporting period. 2) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. ===== SIDA 325 ===== Nordea Annual Report 2025 324 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.4 Fair value, cont. Transfers between Levels 1 and 2 During the year Nordea Bank Abp transferred items recog- nised in the line item “Interest-bearing securities” (includ- ing financial instruments pledged as collateral) of EUR 2,632m (EUR 1,682m) from Level 1 to Level 2 and of EUR 1,795m (EUR 717m) from Level 2 to Level 1 in the fair value hierarchy. Nordea Bank Abp also transferred items recog- nised in the line item “Other liabilities” of EUR 231m (EUR 150m) from Level 1 to Level 2 and of EUR 134m (EUR 342m) from Level 2 to Level 1. The transfer of “Interest- bearing securities” from Level 1 to Level 2 was mainly due to a reassessment of trading activity. Other transfers from Level 1 to Level 2 were due to the instruments ceasing to be actively traded during the year, which meant that fair values were obtained using valuation techniques with observable market inputs. The transfers from Level 2 to Level 1 were due to the instruments again being actively traded during the year, which meant that reliable quoted prices were obtained in the market. Transfers between levels are considered to have occurred at the end of the year. Movements in Level 3 Unrealised gains and losses relate to assets and liabilities held at the end of the year. The transfers out of Level 3 were due to observable market data becoming available. The transfers into Level 3 were due to observable market data no longer being available. Transfers between levels are considered to have occurred at the end of the year. Fair value gains and losses in the income statement during the year are included in “Net result from securities at fair value through profit or loss” (see Note P2.4 “Total net result from items at fair value”). Assets and liabilities related to derivatives are presented net. Movements in Level 3 2025, EURm 1 Jan 2025 Adjustments to the opening balance Fair value gains/losses recognised in the income statement during the year Recognised in fair value reserve Purchases/ issues Sales Settle- ments Transfers into Level 3 Transfers out of Level 3 Reclassifi- cation Translation differences 31 Dec 2025Realised Unrealised Loans to the public – – – – – – – – – – – – – Interest-bearing securities 1,172 – 7 119 – 353 -177 -7 3,127 -689 – -1 3,904 Shares 1,423 – 3 49 – 78 -203 0 1 -2 – 4 1,353 Derivatives (net) 371 – 79 -339 – – – 79 227 29 – 0 288 Other assets – – – – – – – – – – – – – Debt securities in issue 1,352 – -2 -59 -1 564 – -216 17 -2 – – 1,652 Other liabilities 243 -158 – -14 – 119 -36 – 11 -1 – -0 164 2024, EURm 1 Jan 2024 Adjustments to the opening balance Fair value gains/losses recognised in the income statement during the year Recognised in fair value reserve Purchases/ issues Sales Settle- ments Transfers into Level 3 Transfers out of Level 3 Reclassifi- cation Translation differences 31 Dec 2024Realised Unrealised Loans to the public 2 – – – – 23 – -25 – – – – – Interest-bearing securities 542 – -7 -126 – 547 -76 -18 412 -101 – -1 1,172 Shares 1,313 – 10 112 – 124 -150 -10 3 – -11 32 1,423 Derivatives (net) 176 – -2 193 – – – 2 26 -24 – -0 371 Other assets 1 – – – – – – -1 – – – – – Debt securities in issue 1,389 – 65 -193 5 505 – -417 – -2 – – 1,352 Other liabilities 145 – – 46 – 3 -118 – 167 – – – 243 ===== SIDA 326 ===== P3.4 F air value, cont. Nordea Annual Report 2025 325 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other The valuation process for Level 3 fair value measurements For information about the valuation process for fair value measurements, see the section “The valuation process for fair value measurements” in the Group’s Note G3.4 “Fair value”. Valuation techniques and inputs used in fair value measurements of financial instruments in Level 3 31 Dec 2025, EURm Fair value Valuation techniques Unobservable input Range of fair value Interest-bearing securities Public bodies 2 Discounted cash flows Credit spread 0/0 Mortgage and other credit institutions 3,697 Discounted cash flows Credit spread -370/370 Corporates1 205 Discounted cash flows Credit spread -20/20 Total 3,904 Shares Unlisted shares 64 Net asset value2 -6/6 Private equity funds 874 Net asset value2 -87/87 Hedge funds 0 Net asset value2 0/0 Credit funds 397 Net asset value/market consensus2 -40/40 Other funds 10 Net asset value/fund prices2 -1/1 Other 8 – -1/1 Total 1,353 Derivatives Interest rate derivatives 203 Option model Correlations, Volatilities -8/8 Equity derivatives -19 Option model Correlations, Volatilities, Dividend -7/3 Foreign exchange derivatives 132 Option model Correlations, Volatilities -3/3 Credit derivatives -28 Credit derivative model Correlations, Volatilities, Dividend -3/3 Other 0 Option model Correlations, Volatilities -0/0 Total 288 Debt securities in issue Issued structured bonds 1,652 Credit derivative model Correlations, Recovery rates, Volatilities -8/8 Total 1,652 Other, net Other assets and other liabilities, net 164 -16/16 Total 164 1) Of which EUR 150m is pric ed at a credit spread (the difference between the discount rate and XIBOR) of 1.45% and a reasonable change in this credit spread would not affect the fair value due to callability features. 2) F air values are based on prices and net asset values provided by external suppliers/custodians. The prices are fixed by the suppliers/custodians on the basis of the perfor - mance of the assets underlying the investments. For private equity funds, the dominant measurement methodology used by the suppliers/custodians is consistent with the International Private Equity and Venture Capital Valuation (IPEV) Guidelines issued by Invest Europe (formerly EVCA). The carrying amounts are in a range of 1% to 100% compared with the values received from suppliers/custodians. Valuation techniques and inputs used in fair value measurements of financial instruments in Level 3, cont. 31 Dec 2024, EURm Fair value Valuation techniques Unobservable input Range of fair value Interest-bearing securities Public bodies 13 Discounted cash flows Credit spread -1/1 Mortgage and other credit institutions 779 Discounted cash flows Credit spread -78/78 Corporates1 380 Discounted cash flows Credit spread -38/38 Total 1,172 Shares Unlisted shares 87 Net asset value2 -9/9 Private equity funds 874 Net asset value2 -87/87 Hedge funds 0 Net asset value2 -0/0 Credit funds 446 Net asset value/market consensus2 -45/45 Other funds 9 Net asset value/fund prices2 -1/1 Other 7 – -1/1 Total 1,423 Derivatives Interest rate derivatives 188 Option model Correlations, Volatilities -9/11 Equity derivatives 12 Option model Correlations, Volatilities, Dividend -6/3 Foreign exchange derivatives 144 Option model Correlations, Volatilities -1/1 Credit derivatives 27 Credit derivative model Correlations, Volatilities, Dividend -9/10 Other 0 Option model Correlations, Volatilities -0/0 Total 371 Debt securities in issue Issued structured bonds 1,352 Credit derivative model Correlations, Recovery rates, Volatilities -7/7 Total 1,352 Other, net Other assets and other liabilities, net 243 -24/24 Total 243 1) Of which EUR 35 1m is priced at a credit spread (the difference between the discount rate and XIBOR) of 1.45% and a reasonable change in this credit spread would not affect the fair value due to callability features. 2) F air values are based on prices and net asset values provided by external suppliers/custodians. The prices are fixed by the suppliers/custodians on the basis of the perfor - mance of the assets underlying the investments. For private equity funds, the dominant measurement methodology used by the suppliers/custodians is consistent with the International Private Equity and Venture Capital Valuation (IPEV) Guidelines issued by Invest Europe (formerly EVCA). The carrying amounts are in a range of 1% to 100% compared with the values received from suppliers/custodians. ===== SIDA 327 ===== P3.4 Fair value, cont. Nordea Annual Report 2025 326 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other The tables above show, for each class of assets and liabili- ties categorised in Level 3, the fair value, the valuation techniques used to estimate the fair value, significant unobservable inputs used in the valuation techniques and, for financial assets and liabilities, the fair value sensitivity to changes in key assumptions. The column “Range of fair value” in the tables above shows the sensitivity of the fair value of Level 3 financial instruments to changes in key assumptions. In case the exposure to an unobservable parameter is offset across different instruments, only the net impact is disclosed in the table. The range disclosed is likely to be greater than the true uncertainty in determining the fair value of these instruments as all unobservable parameters are in practice unlikely to be simultaneously at the extremes of their ranges of reasonably possible alternatives. The disclosure is neither predictive nor indicative of future movements in fair value. The reported sensitivity (range) of the fair value of derivatives follows the same methodologies as applied to the reporting of the model risk and market price uncer- tainty additional valuation adjustments (AVAs) as defined in Commission Delegated Regulation (EU) No 2016/101 of 26 October 2015 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for prudent valuation under Article 105(14). In order to calculate the sensitivity (range) of the fair value of shares and interest-bearing securities, the fair value is increased and decreased within a total range of 2–10 percentage points depending on the valuation uncer- tainty and underlying assumptions. Higher ranges are applied to instruments with more uncertain valuations rel- ative to actively traded instruments and underlying uncer- tainties in individual assumptions. Movement of deferred Day 1 profit For information about movement of deferred Day 1 profit, see the section “Movement of deferred Day 1 profit” in the Group’s Note G3.4 “Fair value”. The table to the right shows the aggregated difference yet to be recognised in the income statement at the begin- ning and end of the period. The table also shows reconcili- ation of how this aggregated difference changed during the year. Deferred Day 1 profit – derivatives, net EURm 2025 2024 Amount at beginning of year 70 73 Deferred profit/loss on new transactions 44 42 Recognised in the income statement during the year1 -44 -45 Amount at end of year 70 70 1) Of which EUR -4m (EUR -5m) due to transfers of derivatives from Level 3 to Level 2. Financial assets and liabilities not held at fair value on the balance sheet EURm 31 Dec 2025 31 Dec 2024 Level in fair value hierarchy4 Carrying amount Fair value Carrying amount Fair value Assets not held at fair value on the balance sheet Cash and balances with central banks 36,338 36,338 44,862 44,862 1 Loans1 216,496 217,309 196,442 197,386 3 Interest-bearing securities2 11,355 11,306 9,502 9,464 2, 3 Other assets 748 748 639 639 3 Prepaid expenses and accrued income 171 171 557 557 3 Total 265,108 265,873 252,002 252,908 Liabilities not held at fair value on the balance sheet Deposits and debt securities in issue3 329,404 330,184 309,699 310,291 3 Other liabilities 2,551 2,551 2,935 2,935 3 Accrued expenses and prepaid income 23 23 15 15 3 Total 331,978 332,758 312,649 313,241 1) Consists of the balance sheet line items “Loans to the public”, “Loans to credit institutions” and “Fair value changes of hedged items in portfolio hedges of interest rate risk”. 2) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. 3) Consists of the balance sheet line item “Loans to the public” and “Loans to the credit institutions”. For non-maturing deposits fair value equals the nominal amount, whereas the carrying amount also includes the revaluation for the hedged items presented on the balance sheet row “Fair value of hedged items in portfolio hedges of intrest rate risk”. 4) Covers both 31 December 2025 and 31 December 2024. For information about financial assets and liabilities not held at fair value on the balance sheet, see the section “Financial assets and liabilities not held at fair value on the balance sheet” in the Group’s Note G3.4 “Fair value”. However, the fair value of the interest-bearing securities of Nordea Bank Abp is EUR 11,306m (EUR 9,464m), of which EUR 1,270m (EUR 22m) is categorised in Level 2 and EUR 6,451m (EUR 9,443m) in Level 3. ===== SIDA 328 ===== Nordea Annual Report 2025 327 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.5 Hedge ac counting Accounting policies When a hedging relationship meets the specified hedge accounting criteria set out in IAS 39, Nordea Bank Abp applies two types of hedge accounting: • fair value hedge accounting • cash flow hedge accounting. Nordea Bank Abp has chosen, as a policy choice permitted under IFRS 9, to continue to apply hedge accounting in accordance with the carve-out version of IAS 39. Under the EU carve-out version of IAS 39, fair value macro hedge accounting may for instance, in comparison with IAS 39 as issued by the IASB, be applied to on-demand (core) deposits, and hedge ineffectiveness in a hedge of assets with prepay- ment options is only recognised when the revised estimate of the amount of cash flows falls below the designated bottom layer. The application of hedge accounting requires the hedge to be highly effective. A hedge is regarded as highly effective if, at inception and throughout its life, changes in the fair value of the hedged item, as regards the hedged risk, can be expected to be essentially offset by changes in the fair value of the hedging instrument. The result should be within a range of 80–125%. Transactions that are entered into in accordance with Nordea Bank Abp’s hedging objectives but do not qualify for hedge accounting are economic hedge relationships. Fair value hedge accounting Fair value hedge accounting is applied when deriva- tives are hedging changes in the fair value of a rec- ognised asset or liability attributable to a specific risk. Fair value hedge accounting can be performed at both micro level (single assets/liabilities or closed portfolios of assets/liabilities where one or more hedged items are hedged using one or more hedg- ing instruments) and macro level (open portfolios where groups of items are hedged using multiple hedging instruments). Changes in the fair value of derivatives (hedging instruments), as well as changes in the value of the hedged item attributable to the risks being hedged, recognised in the income statement under “Net result from securities at fair value through profit or loss”. Given that the hedge is effective, the change in the fair value of the hedged item will be offset by the change in the fair value of the hedging instrument. The changes in the fair value of the hedged item, attributable to the risks being hedged with the derivative instrument, are reflected in an adjustment to the carrying amount of the hedged item, which is also recognised in the income statement. The fair value changes of the hedged items held at amor- tised cost in hedges of interest rate risks in macro hedges are reported separately in the balance sheet item “Fair value changes of hedged items in portfo- lio hedges of interest rate risk”. Any ineffectiveness is recognised in the income statement under the item “Net result from securities at fair value through profit or loss”. If the hedging relationship does not meet the hedge accounting requirements, hedge accounting is discontinued. The hedging instrument is measured at fair value through profit or loss and the change in the fair value of the hedged item, up to the point when the hedge relationship is terminated, is amortised to the income statement on a straight-line basis over the remaining maturity of the hedged item. Nordea Bank Abp applies fair value hedge accounting to the foreign exchange risk in its invest- ments in foreign operations and internal long-term loans to foreign operations for which settlement is neither planned nor likely to occur in the future. Exchange differences arising on these internal long- term loans are recognised in equity and reclassified from equity to profit or loss on disposal of the investment. Cash flow hedge accounting Cash flow hedge accounting is applied when hedg- ing the exposure to variability in future cash flows. The portion of the gain or loss on the hedging instrument, determined to be an effective hedge, is recognised in equity and accumulated in the cash flow hedge reserve in equity. The ineffective portion of the gain or loss on the hedging instrument is recyled in the item “Net result from securities ar fair value through profit or loss” in the income state- ment. The hedge is considered to be ineffective to the extent that the cumulative change in fair value from the inception of the hedge is larger for the hedging instrument than for the hedged item. Gains or losses on hedging instruments recog- nised in the cash flow hedge reserve in equity are recycled and recognised in the income statement in the same period as the hedged item affects profit or loss, normally in the period in which interest income or interest expense is recognised. A hedged item in a cash flow hedge can be highly probable cash flows from recognised assets or liabil- ities or from future assets or liabilities. Derivatives used as hedging instruments are always measured at fair value. If the hedging relationship does not meet the hedge accounting requirements, hedge accounting is discontinued. Changes in the unrealised value of the hedging instrument will prospectively from the last time it was proven effective be accounted for in the income statement. The cumulative gain or loss on the hedging instrument that has been recognised in the cash flow hedge reserve in equity from the period when the hedge was effective is reclassified from equity to “Net result from securities at fair value through profit or loss” in the income statement if the expected transaction is no longer expected to occur. If the expected transaction is no longer highly probable but is still expected to occur, the cumula- tive gain or loss on the hedging instrument that has been recognised in equity from the period when the hedge was effective will remain in equity until the transaction occurs or is no longer expected to occur. Derivatives used for hedge accounting 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Fair value hedges1 1,223 2,074 116,182 Cash flow hedges1 783 539 33,097 Total derivatives 2,006 2,613 149,279 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Fair value hedges1 1,406 2,360 128,874 Cash flow hedges1 2,241 70 33,105 Total derivatives 3,647 2,430 161,979 1) Some cr oss-currency interest rate swaps are used as both fair value hedges and cash flow hedges. The nominal amounts of these instruments have been split between the lines “Fair value hedges” and “Cash flow hedges” in the table above based on the relative fair value of these hedging instruments. As at 31 December 2025 the total nominal amount of cross-currency interest rate swaps amounted to EUR 17,677m (EUR 19,095m). The table above shows the fair value of derivatives used for hedge accounting together with their nominal amounts. The nominal amounts indicate the volume of transactions outstanding at year end and are neither indic- ative of market risk nor credit risk. The fair value and nom- inal amount of derivatives in this note represent deriva- tives before offsetting between assets and liabilities on the balance sheet (gross amount) as the gross amount better reflects Nordea Bank Abp’s exposure in relation to the hedged risk. Risk management For more information on risk management, see the section “Risk management” in the Group’s Note G3.6 “Hedge accounting”. As part of its risk management policy, Nordea Bank Abp has identified a series of risk categories with corresponding hedging strategies using derivative instru- ments, as set out in section 4 “Market risk” in the Group’s Note G11 “Risk and liquidity management”. ===== SIDA 329 ===== Nordea Annual Report 2025 328 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.5 Hedge accounting, cont. Interest rate risk For more information on interest rate risk, see the section “Interest rate risk”, sub-sections “Fair value hedges” and “Cash flow hedges” in the Group’s Note G3.6 “Hedge accounting”. Fair value hedges The table below presents the accumulated fair value adjustments arising from continuing and discontinued hedging relationships. Hedged items EURm Interest rate risk 2025 Interest rate risk 2024 Carrying amount of hedged assets/liabilities Of which accumulated amount of fair value hedge adjustment3 Carrying amount of hedged assets/liabilities Of which accumulated amount of fair value hedge adjustment3 Fair value hedges – micro level Interest-bearing securities1 26,220 0 25,566 0 Assets 26,220 0 25,566 0 Debt securities in issue 22,154 -367 25,958 -502 Subordinated liabilities 7,190 -170 6,350 -328 Liabilities 29,344 -537 31,478 -830 EURm Interest rate risk 2025 Interest rate risk 2024 Carrying amount of hedged assets/liabilities Of which accumulated amount of fair value hedge adjustment2,3 Carrying amount of hedged assets/liabilities Of which accumulated amount of fair value hedge adjustment2,3 Fair value hedges – macro level Loans to the public 10,102 – 27,184 – Assets 10,102 -56 27,184 -69 Deposits by credit institutions 2,948 – 3,071 – Deposits and borrowings from the public 36,193 – 31,145 – Liabilities 39,141 -567 34,216 -458 1) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. 2) Accumulated fair value adjustment for macro hedges is presented in the line item “Fair value changes of hedged items in portfolio hedges of interest rate risk“ on the balance sheet. 3) Of which EUR 26m (EUR 35m) is related to discontinued hedges of interest rate risk. The following table provides information about the hedging instruments. Hedging instruments 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Fair value hedges Interest rate risk 1,007 1,794 106,075 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Fair value hedges Interest rate risk 1,272 2,219 120,708 The table below presents the changes in the fair value of the hedging instruments and the changes in the value of hedged items used as the basis for recognising ineffective- ness. These changes are recognised in the line item “Net result from securities at fair value through profit or loss” in the income statement. Hedge ineffectiveness EURm Interest rate risk 2025 2024 Fair value hedges Changes in fair value of hedging instruments 172 408 Changes in value of hedged items used as basis for recognising hedge ineffectiveness -139 -411 Hedge ineffectiveness recognised in the income statement1 33 -3 1) Recognised in the line item “Net result from securities at fair value through profit or loss”. When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Cash flow hedges The table below provide information about the hedging instruments in hedges of interest rate risk, including the nominal amount and the fair value of the hedging instruments. Hedging instruments 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Cash flow hedges Interest rate risk – 0 725 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Cash flow hedges Interest rate risk – 0 1,298 The next table specifies changes in the fair value of hedg- ing instruments arising from continuing hedging relation- ships, irrespective of whether there has been a change in hedge designation during the year. The table also presents changes in the value of the hedged items used to measure hedge ineffectiveness sep- arately showing the effective and ineffective portions. Hedge ineffectiveness EURm Interest rate risk 2025 2024 Cash flow hedges Changes in fair value of hedging instruments -2 5 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 2 -5 Hedge ineffectiveness recognised in the income statement1 – – Hedging gains or losses recognised in fair value reserve -2 5 1) Recognised in the line item “Net result from securities at fair value through profit or loss”. When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Cash flow hedge reserve EURm Interest rate risk 2025 2024 Balance as at 1 Jan -1 -7 Cash flow hedges Valuation gains/losses -2 5 Tax on valuation gains/losses 0 -1 Transferred to the income statement 2 4 Tax on transfers to the income statement -0 -1 Through cash flow hedge reserve, net of tax 0 7 Balance as at 31 Dec -1 -1 - Of which relates to continuing hedges for which hedge accounting is applied -1 -1 - Of which relates to hedging relationships for which hedge accounting is no longer applied – – Average interest rate on instruments hedging interest rate risk The average interest rate on the fixed leg of instruments hedging interest rate risk as at 31 December 2025 was 2,50% (2,52%). ===== SIDA 330 ===== Nordea Annual Report 2025 329 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.5 Hedge accounting, cont. The maturity profile of Nordea Bank Abp’s hedging instruments used to hedge interest rate risk (both fair value and cash flow hedge accounting) is shown below: Maturity profile of the nominal amount of hedging instruments hedging interest rate risk EURm Payable on demand Maximum 3 months 3–12 months 1–5 years More than 5 years Total 31 Dec 2025 – 7,370 21,691 57,270 20,469 106,800 31 Dec 2024 – 16,578 28,780 56,950 19,699 122,007 Currency risk For more information on currency risk, see the section “Currency risk” in the Group’s Note G3.6 “Hedge account- ing”. The sub-section “Cash flow and net investment hedges” is not applicable to Nordea Bank Abp. The table below presents the accumulated fair value adjustments arising from continuing hedge relationships, irrespective of whether or not there has been a change in hedge designation during the year. Hedged items EURm Foreign exchange risk 2025 Foreign exchange risk 2024 Carrying amount of hedged assets Of which accumulated amount of fair value hedge adjustment Carrying amount of hedged assets Of which accumulated amount of fair value hedge adjustment Fair value hedges Investments in foreign operations 10,258 -564 7,980 -828 The tables below provide information about the hedging instruments in hedges of currency risks, including the nominal amount and the fair value of the hedging instruments. Hedging instruments 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Foreign exchange risk Fair value hedges 215 280 10,106 Cash flow hedges 783 539 32,372 Total derivatives used for hedge accounting 998 819 42,478 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Foreign exchange risk Fair value hedges 134 141 8,165 Cash flow hedges 2,241 70 31,807 Total derivatives used for hedge accounting 2,375 211 39,972 The table below specifies changes in the fair value of hedging instruments arising from continuing hedging rela- tionships, irrespective of whether there has been a change in hedge designation during the year. The table also pre- sents changes in the value of hedged item used to meas- ure hedge ineffectiveness, separately showing the effec- tive and ineffective portions. Hedge ineffectiveness EURm Foreign exchange risk 2025 2024 Fair value hedges Changes in fair value of hedging instruments -262 205 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 262 -205 Hedge ineffectiveness recognised in the income statement1 – – Cash flow hedges Changes in fair value of hedging instruments -2,453 1,860 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 2,447 -1,860 Hedge ineffectiveness recognised in the income statement1 -5 – Hedging gains or losses recognised in fair value reserve -2,447 1,860 1) Recognised in the line item “Net result from securities at fair value through profit or loss”. When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Cash flow hedge reserve EURm Foreign exchange risk 2025 2024 Balance as at 1 Jan 112 89 Cash flow hedges Valuation gains/losses -2,447 1,860 Tax on valuation gains/losses 492 -377 Transferred to the income statement 2,363 -1,831 Tax on transfers to the income statement -475 371 Through cash flow hedge reserve, net of tax -67 23 Balance as at 31 Dec 45 112 - Of which relates to continuing hedges for which hedge accounting is applied 45 112 - Of which relates to hedging relationships for which hedge accounting is no longer applied – – The average forward exchange rates of instruments hedg- ing foreign exchange risk as at 31 December are presented in the table below. Average forward exchange rates of instruments hedging foreign exchange risk EUR NOK SEK USD 31 Dec 2025 11.05 10.60 1.14 31 Dec 2024 11.06 10.69 1.10 Maturity profile of the nominal amount of hedging instruments Instruments hedging foreign exchange risk, EURm Payable on demand Maximum 3 months 3–12 months 1–5 years More than 5 years Total 31 Dec 2025 – 14,313 13,885 12,898 1,383 42,479 31 Dec 2024 – 15,572 10,953 12,389 1,059 39,972 ===== SIDA 331 ===== Nordea Annual Report 2025 330 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.6 Cash and balanc es with central banks Accounting policies Cash comprises legal tender and bank notes in for- eign currencies. Balances with central banks consist of deposits in accounts with central banks and postal giro systems under government authority when the following conditions are fulfilled: • The central bank or the postal giro system is domi- ciled in the country where the institutions are established. • The balance on the account is readily available at any time. P3.7 Loans Accounting policies Loans are financial instruments with fixed or deter- minable payments that are not readily transferable without the consent of the debtor. Loans are classi- fied in accordance with the description in Note P3.3 “Classification and measurement”. Nordea Bank Abp’s accounting policies covering expected credit losses follow below. Additional information on credit risk on loans is disclosed in Note P10 “Risk and liquidity management”. Financial instruments classified as “Amortised cost” or “Fair value through other comprehensive income” are subject to impairment testing due to credit risk. This includes assets recognised on the balance sheet in “Cash and balances with central banks”, “Debt securities eligible for refinancing with central banks”, “Loans to credit institutions”, “Loans to the public” and “Interest-bearing securities”. These balance sheet line items include assets classi- fied as “Fair value through profit or loss”, which are not subject to impairment testing. See also Note P3.3 “Classification and measurement”. Off-balance sheet commitments, contingent lia- bilities and loan commitments are also subject to impairment testing. Recognition and presentation Amortised cost assets are recognised gross with an offsetting allowance for the expected credit losses if the loss is not regarded as final. The allowance account is netted against the loan balance on the face of the balance sheet, but the allowance account is disclosed separately in this note. Changes in the allowance account are recognised in the income statement and classified as “Net loan losses”. If the impairment loss is regarded as final, it is reported as a realised loss and the carrying amount of the loan and the related allowance for impair- ment loss are derecognised. An impairment loss is regarded as final when the obligor has filed for bankruptcy and the administrator has declared the financial outcome of the bankruptcy procedure, or when Nordea Bank Abp waives its claims either through a legally based or voluntary reconstruction, or when Nordea Bank Abp, for other reasons, deems it unlikely that the claim will be recovered. See also the section “Write-offs” on the following page. Provisions for off-balance sheet exposures are classified as “Provisions” on the balance sheet, with changes in provisions classified as “Net loan losses”. Assets classified as “Fair value through other comprehensive income” are recognised at fair value on the balance sheet. Impairment losses calculated in accordance with IFRS 9 are recognised in the income statement and classified as “Impairment of other financial assets”. Any fair value adjustments are recognised in equity. Impairment testing Nordea Bank Abp classifies all exposures into stages on an individual basis. Stage 1 includes assets where there has been no significant increase in credit risk since initial recognition. Stage 2 includes assets where there has been a significant increase in credit risk. Stage 3 (impaired loans) includes defaulted assets. Nordea Bank Abp monitors whether there are indicators of exposures being credit impaired (stage 3) by identifying events that have a detrimental impact on the estimated future cash flows. Nordea Bank Abp applies the same definition of default as the Capital Requirements Regulation. The definition of default applied by Nordea was last updated in 2024 in connection with the implementation of new retail internal ratings-based (IRB) models. More information on the identification of loss events can be found in the Group’s Note G11 “Risk and liquidity management”. Exposures without individually calcu- lated allowances are covered by the model-based impairment calculation. For significant exposures where a credit event has been identified, the exposure is tested for impairment on an individual basis. If the exposure is considered impaired, an individual provision is recognised. The carrying amount of the exposure is compared with the sum of the net present value of expected future cash flows. If the carrying amount is higher, the difference is recognised as an impairment loss. The expected cash flows include the fair value of collateral and other credit enhancements and are discounted at the original effective interest rate. The estimate is based on three different forward-looking scenarios that are probability weighted to derive the net present value. For insignificant exposures that have been individu- ally identified as credit impaired, the impairment loss is measured using the model described below but based on the fact that the exposures are already in default. Nordea Bank Abp uses the “low credit risk exemption” for retail exposures and non-retail expo- sures issued after transition to IFRS 9 on 1 January 2018. Such exposures with a 12-month probability of default (PD) below 0.3% are classified as stage 1. Model-based allowance calculation For exposures not impaired on an individual basis, a statistical model is used for calculating impairment losses. The provisions are calculated as the exposure at default (EAD) times the probability of default (PD) times the loss given default (LGD). For assets in stage 1 this calculation is only based on the coming 12 months, while for assets in stages 2 and 3 it is based on the expected lifetime of the assets. The provisions for exposures for which there has been no significant increase in credit risk since initial recognition are based on the 12-month expected loss (stage 1). The provisions for exposures for which there has been a significant increase in credit risk since initial recognition, but which are not credit impaired, are based on the lifetime expected losses (stage 2). This is also the case for the insignificant credit impaired exposures in stage 3. Nordea Bank Abp uses two different models to identify whether there has been a significant increase in credit risk or not. For non-retail assets held on transition to IFRS 9 on 1 January 2018, the change in internal rating and scoring data is used to determine whether there has been a significant increase in credit risk or not. Internal rating/scoring information is used to assess the risk of the customers and a deterioration in rating/scoring indicates an increase in the credit risk of the customer. Nordea Bank Abp has concluded that it is not possible to calculate the lifetime PD at origination without the use of hind- sight for assets already recognised on the balance sheet at transition. Changes to the lifetime PD are used as the trigger for non-retail assets recognised after transition and for retail assets recognised both before and after transition. For assets evaluated based on lifetime PD, Nordea Bank Abp uses a mix of absolute and relative changes in PD as the transfer criterion. • Retail customers with a relative increase in lifetime PD above 200% are transferred to stage 2. • Non-retail customers with an initial 12-month PD below 0.5%: • Exposures with a relative increase in lifetime PD above 150% and an absolute increase in 12-month PD above 20bp are transferred to stage 2. • Non-retail customers with an initial 12-month PD above or equal to 0.5%: • Exposures with a relative increase in lifetime PD above 150% or an absolute increase in 12-month PD above 400bp are transferred to stage 2. For non-retail assets recognised on the balance sheet before transition to IFRS 9, the change in rating/scor- ing notches is used as the stage transfer criterion. The number of notches is calibrated to match the signifi- cant increase in credit risk based on lifetime PD. In addition, Nordea Bank Abp applies the follow- ing backstops for transfers between stages: • Customers with forbearance measures and cus- ===== SIDA 332 ===== Nordea Annual Report 2025 331 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.7 Loans, cont. tomers with payments more than thirty days past due are also transferred to stage 2 unless already identified as credit impaired (stage 3). Exposures with forbearance measures will stay in stage 2 for a probation period of 24 months from when the measures were introduced. Once transferred back to stage 1, after the probation period, the exposures are treated as any other stage 1 exposure on the assessment of significant increase in credit risk. • Exposures more than 90 days past due are nor- mally classified as stage 3, but this classification will be rebutted if there is evidence that the cus- tomer is not in default. Such exposures are classi- fied as stage 2. • Non-retail exposures with a relative change in annualised lifetime PD exceeding 200% and with at least one rating grade of deterioration are trans- ferred to stage 2. • Retail exposures classified as high risk, i.e. with a PD above 5.83%, are transferred to stage 2. • Non-retail exposures classified as high-risk, i.e. with a rating grade of 2 or below, are transferred to stage 2. • Retail and Non-retail exposures with 12-month PD below 0.3% use a low credit risk exemption, which prevents movement to stage 2 from absolute or relative changes in PD. The exemption does not prevent stage movement from the other backstop triggers listed. When calculating provisions, including the staging assessment, the calculation is based on both histori- cal data and probability-weighted forward-looking information. Nordea Bank Abp applies three macro- economic scenarios to address the non-linearity in expected credit losses. The different scenarios are used to adjust the relevant parameters for calculat- ing expected losses and a probability-weighted average of the expected losses under each scenario is recognised as provisions. The model is based on data collected before the reporting date requiring Nordea Bank Abp to identify events that could affect the provisions after the data is sourced to the model calculation. Management evaluates these events and adjusts the provisions if deemed necessary. Write-offs A write-off is a derecognition of a loan or receivable from the balance sheet and a final realisation of a credit loss provision. When assets are considered uncollectible, they should be written off as soon as possible, regardless of whether the legal claim remains or not. A write-off can take place before legal actions against the borrower to recover the debt have been concluded in full. Although an uncollectible asset is removed or written off from the balance sheet, the customer remains legally obligated to pay the outstanding debt. When assess- ing the recoverability of non-performing loans and determining if write-offs are required, exposures with the following characteristics are in particular focus (the list is not exhaustive): • Exposures past due more than 90 days. If, following this assessment, an exposure or part of an expo- sure is deemed as unrecoverable, it is written off. • Exposures under insolvency procedures where the collateralisation of the exposure is low. • Exposures where legal expenses are expected to absorb the proceeds from the bankruptcy proce- dure and estimated recoveries are therefore expected to be low. • A partial write-off may be warranted where there is reasonable financial evidence to demonstrate an ina- bility of the borrower to repay the full amount, i.e. a significant level of debt which cannot be reasonably demonstrated to be recoverable following forbear- ance treatment and/or the execution of collateral. • Restructuring cases. Discount rate The discount rate used to measure impairment is the original effective interest rate for loans attached to an individual customer or, if applicable, to a group of loans. If considered appropriate, the discount rate can be based on a method that results in an impairment that is a reasonable approximation using the effective interest rate method as basis for the calculation. Restructured loans and modifications In this context a restructured loan is defined as a loan where Nordea Bank Abp has granted conces- sions to the obligor due to their financial difficulties and where such concessions have resulted in an impairment loss for Nordea Bank Abp. After restructing the loan is normally regarded as not impaired if it performs according to the new terms and conditions. In the event of recovery, the pay- ment is reported as recovery of loan losses. Modifications of the contractual cash flows of loans to customers in financial difficulties (forbear- ance) reduce the gross carrying amount of the loan. Normally this reduction is less than the existing pro- vision and no loss is recognised in the income state- ment due to modifications. If significant, the gross amounts (loan and allowance) are reduced. Assets taken over for protection of claims In a financial reconstruction the creditor may con- cede loans to the obligor and in exchange for this concession acquires an asset pledged for the con- ceded loans, shares issued by the obligor or other assets. Assets taken over for protection of claims are reported on the same balance sheet line as similar assets already held by Nordea Bank Abp. For exam- ple, a property taken over, not held for Nordea Bank Abp’s own use, is reported together with other investment properties. At initial recognition, all assets taken over for pro- tection of claims are recognised at fair value and the possible difference between the carrying amount of the loan and the fair value of the assets taken over is recognised in “Net loan losses”. The fair v alue of the asset on the date of recognition becomes its cost or amortised cost value, as applicable. In subsequent periods, assets taken over for protection of claims are valued in accordance with the valuation principles for the appropriate type of asset. Investment proper- ties are then measured at fair value. Financial assets that are foreclosed are generally classified in the cat- egory “Fair value through profit or loss” and meas- ured at fair value. Changes in fair value are recog- nised in the income statement under “Net result from securities trading and foreign exchange dealing”. Any change in value, after the initial recognition of the asset taken over, is presented in the income state- ment in line with the presentation policies for the appropriate asset. The line item “Net loan losses” in the income statement is, after the initial recognition of the asset taken over, consequently not affected by any subsequent remeasurement of the asset. Loans to credit institutions EURm 31 Dec 2025 31 Dec 2024 Central banks Payable on demand 4 4 Not payable on demand 6,840 4,071 Total 6,844 4,075 Other credit institutions Payable on demand 401 349 Not payable on demand 80,202 70,715 Total 80,603 71,064 Total loans to credit institutions 1 87,447 75,139 1) Including accrued interest of EUR 309m (EUR 333m). Loans to the public 1 EURm 31 Dec 2025 31 Dec 2024 Payable on demand 4,897 5,251 Not payable on demand 163,570 146,726 Total loans to the public2 168,467 151,977 1) For breakdowns by sector and industry, see Note P10 “Risk and liquidity management”. 2) Including accrued interest of 463m (EUR 497m). ===== SIDA 333 ===== Nordea Annual Report 2025 332 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.7 Loans, cont. Loans and impairment EURm 31 Dec 2025 31 Dec 2024 Loans measured at fair value 39,361 30,605 Loans measured at amortised cost, not credit-impaired (stages 1 and 2) 215,594 195,801 Credit-impaired loans (stage 3) 1,957 1,889 - of which servicing 913 877 - of which non-servicing 1,044 1,012 Loans before allowances 256,912 228,295 - of which credit institutions 87,449 75,144 Allowances for loans that are credit- impaired (stage 3) -753 -840 - of which servicing -341 -376 - of which non-servicing -412 -464 Allowances for loans that are not credit- impared (stages 1 and 2) -245 -339 Allowances 1 -998 -1,179 - of which credit institutions -2 -5 Loans, carrying amount 255,914 227,116 1) F or information on loan loss provisions on off-balance sheet items, see Note P5 “Provisions”. P3.8 Interest-bearing securities Accounting policies Instruments that are readily transferable and where the holder of the instrument receives the nominal amount at maturity are normally reported in the bal- ance sheet line item “Interest-bearing securities”. Instruments that cannot be transferred or sold without the consent of the holder of the instrument are nor- mally reported as loans, see Note P3.7 “Loans”. In repurchase transactions and in securities lending transactions, non-cash assets are transferred as collateral. For more information about accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet“, Note P3.2 “Transferred assets and obtained collateral“, Note P3.3 “Classification and measurement” and Note P3.4 “Fair value”. The tables include the breakdown of the balance sheet line items “Interest-bearing securities” and “Debt securi- ties eligible for refinancing with central banks” by type of security. Interest-bearing securities EURm 31 Dec 2025 - of which held for trading States, municipalities and other public bodies 20,093 3,676 Banks and other credit institutions 55,839 13,862 Other 12,937 2,577 Total1 88,869 20,115 EURm 31 Dec 2024 - of which held for trading States, municipalities and other public bodies 18,569 2,665 Banks and other credit institutions 50,530 11,939 Other 11,880 1,450 Total 1 80,979 16,054 1) Incl uding accrued interest of EUR 337m (EUR 321m). As at 31 December 2025 the securities that were publicly listed amounted to EUR 21,763 (EUR 24,787m). Subordinated securities amounted to EUR 180m (EUR 49m). Provisions for credit risks amounted to EUR 2m (EUR 2m). Debt securities eligible for refinancing with central banks EURm 31 Dec 2025 31 Dec 2024 Treasury bonds, notes and bills 8,302 7,668 Other bonds 70,422 63,681 Total 78,724 71,349 P3.9 Shares Accounting policies The balance sheet line item “Shares” includes equity instruments, i.e. contracts that evidence a residual inter- est in the assets of an entity after deducting all of its liabilities, including holdings in different funds such as a unit in an investment fund or private equity fund. However, investments in associated undertakings and joint ventures (see Note P8.2 “Investments in associ- ated undertakings and joint ventures”) and investments in group undertakings (see Note P8.1 “Investments in group undertakings”) not included in “Shares”. In repurchase transactions and in securities lend- ing transactions, non-cash assets are transferred as collateral. For more information about accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet“, Note P3.2 “Transferred assets and obtained collateral”, Note P3.3 “Classification and measurement” and Note P3.4 “Fair value”. Shares EURm 31 Dec 2025 - of which held for trading Shares 18,280 15,270 Total 18,280 15,270 EURm 31 Dec 2024 - of which held for trading Shares 17,493 14,267 Total 17,493 14,267 As at 31 December 2025 the shares that were publicly listed amounted to EUR 16,848m (EUR 15,973m). EUR 935m (EUR 382m) of the shares relate to credit institutions. Shares lent to other counterparties in the form of securities lending transactions amounted to EUR 1,910m (EUR 511m). Shares borrowed amounted to EUR 2,967m (EUR 4,359m) and are not recognised on the balance sheet and thus not included in the total amount presented in the table above. P3.10 Derivatives Accounting policies A derivative is a financial instrument or other con- tract with all three of the following characteristics: • Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (so-called ‘underlying’). • It requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors. • It is settled at a future date. Contracts that fulfil the above requirements of being derivatives but where Nordea Bank Abp is to take delivery of a non-financial item for own use are not derivatives. All derivatives are recognised on the balance sheet and measur ed at fair value. Derivatives with a positive fair value, including any accrued interest, are recognised as assets in the line item “Derivatives” on the asset side. Derivatives with a negative fair value, including any accrued interest, are recognised as liabilities in the line item “Derivatives” on the liability side. Nordea Bank Abp incorporates credit valuation adjustments (CVAs) and debit valuation adjustments (DVAs) into derivative valuations as well as other val- uation adjustments (XVAs). CVAs and DVAs reflect the impact on fair value from the counterparty’s credit risk and Nordea Bank Abp’s own credit quality, respectively. For more information about the calcula- tion and other XVAs, see Note P3.4 “Fair value”. Realised and unrealised gains and losses from derivatives are recognised in the income statement under “Net result from securities at fair value ===== SIDA 334 ===== Nordea Annual Report 2025 333 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.10 Deriv atives, cont. through profit or loss”. For more information about accounting policies, see Note P3.4 “Fair value”. Nordea Bank Abp enters into derivatives for trad- ing and risk management purposes. Nordea Bank Abp may take positions with the expectation of prof- iting from favourable movements in prices, rates or indices. The trading portfolio is treated as trading risk for risk management purposes. Derivatives held for risk management purposes include hedges that meet the hedge accounting requirements and hedges that are economic hedges but do not meet the hedge accounting requirements. The table below shows the fair value of derivative financial instruments not used for hedge accounting together with their nominal amounts. The nominal amounts indicate the volume of transactions out- standing at year end and are neither indicative of market risk nor credit risk. The derivatives are divided into derivatives not used for hedge account- ing and derivatives used for hedge accounting. For more information about derivatives used for hedge accounting, see Note P3.5 “Hedge accounting”. The fair value and nominal amount of derivatives in this note represent derivatives before offsetting between assets and liabilities on the balance sheet (gross amount) as the gross amount better reflects Nordea Bank Abp’s exposure. Derivatives 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Derivatives not used for hedge accounting 162,288 165,228 11,669,459 Derivatives used for hedge accounting 2,006 2,613 149,279 Gross amount 164,294 167,841 11,818,738 Derivatives offset on the balance sheet -146,053 -148,984 – Total derivatives 18,241 18,857 11,818,738 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Derivatives not used for hedge accounting 136,442 138,292 8,062,543 Derivatives used for hedge accounting 3,647 2,430 161,979 Gross amount 140,089 140,722 8,224,522 Derivatives offset on the balance sheet - 114,035 -114,795 – Total derivatives 26,054 25,927 8,224,522 Derivatives not used for hedge accounting EURm 31 Dec 2025 31 Dec 2024 Fair value Nominal amount Fair value Nominal amountPositive Negative Positive Negative Interest rate derivatives Interest rate swaps 149,251 151,641 8,684,467 120,065 120,259 5,483,562 FRAs 428 444 1,551,754 919 938 1,327,480 Futures and forwards 6 5 131,154 5 6 120,899 Options 1,711 1,716 193,176 2,484 2,572 240,433 Total 151,396 153,806 10,560,551 123,473 123,775 7,172,374 Equity derivatives Equity swaps 265 467 29,705 442 270 31,677 Futures and forwards 2 9 421 3 1 901 Options 122 411 4,085 112 397 4,214 Other 0 21 0 – – – Total 389 908 34,211 557 668 36,792 Foreign exchange derivatives Currency and interest rate swaps 2,907 2,816 254,125 5,463 7,422 268,089 Currency forwards 2,222 2,361 442,143 3,849 3,408 388,347 Options 80 1 3,309 114 0 2,250 Total 5,209 5,178 699,577 9,426 10,830 658,686 Other derivatives Credit default swaps (CDS) 5,294 5,306 374,055 2,984 2,987 194,530 Commodity derivatives 0 26 1,039 0 9 136 Other derivatives – 4 26 2 23 25 Total 5,294 5,336 375,120 2,986 3,019 194,691 Total derivatives not used for hedge accounting 162,288 165,228 11,669,459 136,442 138,292 8,062,543 - o f which transactions between Nordea Bank Abp and group undertakings 626 822 103,945 848 943 98,499 P3.11 Deposits b y credit institutions and central banks Accounting policies Deposits by credit institutions include liabilities towards central banks, banks, credit market compa- nies, credit companies, finance companies and mort- gage institutions. Deposits are classified in accord- ance with Note P3.3 “Classification and measurement”. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet”, Note P3.2 “Transferred assets and obtained collateral” and Note P3.4 “Fair value”. Deposits by credit institutions and central banks EURm 31 Dec 2025 31 Dec 2024 Central banks Payable on demand 7,460 5,757 Total 7,460 5,757 Credit institutions Payable on demand 6,283 5,754 Not payable on demand 28,284 24,795 Total 34,567 30,549 Total deposits by credit institutions and central banks 1 42,027 36,306 1) Incl uding accrued interest of EUR 136m (EUR 131m). ===== SIDA 335 ===== Nordea Annual Report 2025 334 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.12 Deposits and borrowings from the public Accounting policies Deposits from the public are defined as funds in deposit accounts covered by the government deposit guarantee but also include amounts in excess of the individual amount limits. Borrowings are other liabilities to the public that are not in the form of debt securities. Deposits and borrowings are classified into the different categories of financial instruments defined in Note P3.3 “Classification and measurement”. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet”, Note P3.2 “Transferred assets and obtained collateral” and Note P3.4 “Fair value”. Deposits and borrowings from the public EURm 31 Dec 2025 31 Dec 2024 Deposits Payable on demand 176,167 181,574 Not payable on demand1 57,069 49,340 Total 233,236 230,914 Repurchase agreements Not payable on demand 17,066 9,192 Total 17,066 9,192 Total deposits and borrowings from the public2 250,302 240,106 1) Long-term savings accounts held by customers (PS accounts) amounted to EUR 6m (EUR 5m) as at 31 December 2025. Investments from long-term savings accounts held by customers amounted to EUR 111m (EUR 98m). 2) Including accrued interest of EUR 316m (EUR 368m). P3.13 Debt securities in issue Accounting policies Debt securities are instruments issued by Nordea Bank Abp that are readily transferable without the consent of Nordea Bank Abp. Debt securities are classified into different categories in accordance with Note P3.3 “Classification and measurement”. For hedged items in fair value hedges at micro level, the hedged risk is measured at fair value and presented in the line item “Fair value changes in micro hedges of interest rate risk” in the table below (for more information, see Note P3.5 “Hedge accounting”). For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet” and Note P3.4 “Fair value”. Bonds are transferable debt securities which are normally issued off an issuance programme. A bond’s term to matu- rity can range from about one month to several years. A bond is a debt obligation issued by the borrower to the investor or lender. The investor is normally entitled to a cash payment from the issuer on the maturity date. During the term to maturity, coupon payments are normally made at fixed intervals, but a bond can be issued as a zero- coupon debt instrument or be subject to other terms as agreed between the issuer and the investor. Bonds are often listed for trading on a stock exchange. There are sen- ior bonds and subordinated bonds. In the event that an issuer defaults, the issuer will be required to pay the inves- tors of senior bonds and meet all other creditor obliga- tions in full before the issuer can make any payments on the subordinated bonds. Bonds can be issued as secured or unsecured debt. For information on subordinated bonds, see Note P3.14 Subordinated liabilities. Certificates of deposit (CDs) are transferable debt secu- rities issued by the borrower to the investor who is entitled to a cash payment from the issuer on the maturity date. CDs are not issued off an issuance programme and are not listed on a stock exchange. CDs usually have maturities ranging from one week to three years or longer. CDs can be issued with coupon payments or without coupon pay- ments. CDs are issued as unsecured debt. Commercial paper (CP) is a transferable debt instru- ment and issued off an issuance programme. CP is issued with maturities ranging from overnight to about one year. CP is debt owed by the issuer to the investor who is enti- tled to a cash payment from the issuer on the maturity date. CP is normally issued as zero-coupon debt instru- ments with coupon payments or without coupon pay- ments during the maturity of the CP. Typically CP is not listed for trading on a stock exchange. CP is usually issued as unsecured debt. Negotiable European Union CP can be listed. Debt securities in issue EURm Carrying amount Nominal value 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Certificates of deposit 38,220 29,714 38,412 30,285 Commercial paper 10,591 9,981 10,643 10,041 Bonds1 30,523 30,910 30,184 30,531 Other 24 24 24 25 Fair value changes in micro hedges of interest rate risk -367 -502 – – Total2 78,991 70,127 79,263 70,882 1) Including eligible liabilities of EUR 14,689m (EUR 14,696m) under the Finnish Act on the Resolution of Credit institutions and Investment Firm. 2) Including accrued interest of EUR 366m (EUR 444m). P3.14 Subordinated liabilities Accounting policies Subordinated liabilities are financial liabilities for which it has been contractually agreed that they are not to be repaid in the event of liquidation or bank- ruptcy until all obligations towards other creditors have been fulfilled. For more information on classification of instru- ments as a liability or equity instrument, see Note P9.1 “Equity”. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet” and Note P3.3 “Classification and measurement”. For hedged items in fair value hedges at micro level, the hedged risk is measured at fair value and presented in the line item “Fair value changes in micro hedges of interest rate risk” in the table below (for more information, see Note P3.5 “Hedge accounting”). Subordinated liabilities EURm 31 Dec 2025 31 Dec 2024 Additional Tier 1 4,367 3,436 Tier 2 4,613 4,302 Fair value changes in micro hedges of interest rate risk -170 -328 Total1 8,810 7,410 1) Including accrued interest of EUR 109m (EUR 104m). ===== SIDA 336 ===== Nordea Annual Report 2025 335 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.14 Subordinated liabilities, cont. The Additional Tier 1 conversion notes issued in 2019, 2021, 2024 and 2025 by Nordea Bank Abp automatically convert into an aggregated maximum number of 194,099,378, 121,802,679, 160,642,952 and 133,314,074, respectively, newly issued Nordea shares if the CET1 ratio of either Nordea Bank Abp on a solo basis or the Nordea Group on a consolidated basis falls below 5.125%. The notes will be convertible into shares at a price not exceeding a specific nominal amount applicable to the respective notes, subject to adjustments. Upon conversion of the notes into shares, Nordea’s exist- ing shareholders have preferential rights to all newly issued Nordea shares. The key terms of the Additional Tier 1 and Tier 2 instruments are specified in the table to the right. Subordinated liabilities 31 Dec 2025 Classification of Tier 1 and Tier 2 instruments Nominal, value in millions Nominal currency Carrying amount in EURm Of which used for capital adequacy in EURm Interest rate (coupon) Original maturity date First optional call date Additional Tier 1 1,250 USD 1,080 1,080 Fixed 6.625% until first call date, thereafter fixed 5-year US Treasury rate +4.11% No maturity 26 Mar 2026 Additional Tier 1 1,000 USD 784 784 Fixed 3.75% until 1 September 2029, thereafter fixed 5-year CMT rate +2.602% No maturity 1 Mar 2029 – 1 Sep 2029 Additional Tier 1 3,750 SEK 347 347 Floating 3-month STIBOR +2.80% No maturity 6 Sep 2029 – 6 Mar 2030 Additional Tier 1 1,600 NOK 135 135 Floating 3-month NIBOR +2.85% No maturity 6 Sep 2029 – 6 Mar2030 Additional Tier 1 800 USD 673 673 Fixed 6.30% until 25 March 2032, thereafter fixed 5-year CMT rate +2.66% No maturity 25 Sep 2031 – 25 Mar 2032 Additional Tier 1 2,500 SEK 231 231 Floating 3-month STIBOR +2.50% No maturity 27 Nov 2030 Additional Tier 1 3,500 NOK 295 295 Floating 3-month NIBOR +2.55% No maturity 27 Nov 2030 Additional Tier 1 850 USD 716 716 Fixed 6.75% until first call date, thereafter fixed 5-year CMT rate +2.72% No maturity 10 Nov 2033 Tier 2 10,000 JPY 57 57 Fixed USD 4.51% until first call date, thereafter floating 6-month JPY deposit rate +1.10% 26 Feb 2034 26 Feb 2029 Tier 2 20,000 JPY 98 98 Fixed USD 3.75% until first call date, thereafter floating 6-month JPY deposit rate +1.2% 4 Mar 2040 4 Mar 2035 Tier 2 10,000 JPY 52 52 Fixed USD 3.84% until first call date, thereafter floating 6-month JPY deposit rate +1.2% 12 Oct 2040 12 Oct 2035 Tier 2 500 USD 424 424 Fixed 4.625% until first call date, thereafter fixed 5-year mid-swap rate +1.69% 13 Sep 2033 13 Sept 2028 Tier 2 1,000 EUR 986 986 Fixed 0.625% until 18 Aug 2026, thereafter fixed 5-year mid-swap rate +0.92% 18 Aug 2031 18 May 2026 – 18 Aug 2026 Tier 2 3,000 SEK 278 278 Floating 3-month STIBOR +0.98% 18 Aug 2031 18 May 2026 – 18 Aug 2026 Tier 2 1,000 SEK 92 92 Fixed 1.385% until 18 Aug 2026, thereafter floating 3-month STIBOR +0.98% 18 Aug 2031 18 May 2026 – 18 Aug 2026 Tier 2 500 GBP 539 539 Fixed 1.625% until 9 Dec 2027, thereafter fixed 5-year UK Treasury rate +1.30% 9 Dec 2032 9 Sep 2027 – 9 Dec 2027 Tier 2 500 EUR 528 528 Fixed 4.875% until 23 Feb 2029, thereafter fixed 5-year mid-swap rate +1.85% 23 Feb 2034 23 Nov 2028 – 23 Feb 2029 Tier 2 750 EUR 772 772 Fixed 4.125% until 29 May 2030, thereafter fixed 5-year mid-swap rate +1.35% 29 May 2035 28 Feb 2030 – 29 May 2030 Tier 2 2,750 NOK 233 233 Floating 3-month NIBOR +1.50% 21 May 2035 21 Feb 2030 – 21 May 2030 Tier 2 500 EUR 490 490 Fixed 3.25% until first call date, thereafter fixed 5-year mid-swap +0.98% 19 Nov 2035 19 Nov 2030 ===== SIDA 337 ===== Nordea Annual Report 2025 336 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P4 Intangible and tangible assets P4.1 Intangible assets Accounting policies Intangible assets are identifiable, non-monetary assets without physical substance. The assets are under Nordea Bank Abp’s control, which means that Nordea Bank Abp has the power and rights to obtain the future economic benefits flowing from the underlying resource. Nordea Bank Abp’s intangi- ble assets mainly consist of goodwill, internally developed software and software licences. Goodwill Goodwill is recognised at cost less amortisation and any write-downs. Goodwill is amortised on a straight-line basis over its useful economic life, which is normally 5–10 years. Goodwill is typically recognised when Nordea Bank Abp acquires an asset or business or in connection with the merger of a subsidiary. Customer-related intangible assets In business combinations a portion of the purchase price is normally allocated to a customer-related intangible assets if the asset is identifiable and under Nordea’s control. An intangible asset is identifiable if it arises from contractual or legal rights or can be separated from the entity and sold, transferred, licensed, rented or exchanged. The asset is amortised over its useful life, generally over ten years. IT development and computer software Costs associated with maintaining computer soft- ware programs are expensed as incurred. Costs directly associated with major software develop- ment investments, with the ability to generate future economic benefits, are recognised as intangible assets. These costs include software development staff costs and overhead expenditures directly attributable to preparing the asset for use. Computer software also includes acquired software licences not related to the function of a tangible asset. Amortisation is calculated on a straight-line basis over the useful life of the software, generally a period of three to five years, and in some circum- stances for strategic infrastructure up to a maximum of ten years. Intangible assets EURm 31 Dec 2025 31 Dec 2024 Goodwill Customer-related intangible assets1 Internally developed software Software licences Total Goodwill Internally developed software Software licences Total Acquisition value at beginning of year 245 – 2,328 222 2,795 348 2,275 447 3,070 Acquisitions – 1 454 82 537 – 397 60 457 Sales/disposals – – -16 0 -16 -100 -313 -279 -692 Reclassifications – 16 – -16 – – 0 – 0 Translation differences 0 0 45 3 48 -3 -31 -6 -40 Acquisition value at end of year 245 17 2,811 291 3,364 245 2,328 222 2,795 Accumulated amortisation and impairment at beginning of year -218 – -889 -118 -1,225 -302 -923 -357 -1,582 Accumulated amortisation and impairment on sales/disposals – – 15 0 15 100 313 277 690 Amortisation according to plan -13 -2 -318 -51 -384 -18 -280 -43 -341 Impairment charges – – -2 – -2 – -11 -2 -13 Translation differences 0 0 -17 -2 -19 2 12 7 21 Accumulated amortisation and impairment at end of year -231 -2 -1,211 -171 -1,615 -218 -889 -118 -1,225 Total 14 15 1,600 120 1,749 27 1,439 104 1,570 1) R eclassified from Software licenses and presented as a separate category. ===== SIDA 338 ===== Nordea Annual Report 2025 337 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P4.2 Tangible assets Accounting policies Properties and equipment Properties and equipment consist of properties for own use, leasehold improvements, IT equipment, fur- niture and other equipment. Items of properties and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of property and equipment com- prises its purchase price as well as any directly attrib- utable costs of bringing the asset to the working condition for its intended use. Parts of an item of property and equipment are accounted for as sepa- rate items if they have different useful lives. Improvements are recognised as assets if they provide an improved function of the asset, while maintenance does not improve the function of the assets and is expensed as incurred. Properties and equipment are depreciated on a straight-line basis over the estimated useful life of the assets. The estimates of the useful life of differ- ent assets are reassessed on a yearly basis. The estimated useful lives of the assets are specified below: Buildings 30–75 years Equipment 3–5 years Leasehold improvements For changes within buildings, the shorter of 10 years and the remaining lease term. For new construction, the shorter of the principles used for owned buildings and the remaining lease term. Fixtures installed in leased properties are depreciated over the shorter of 10–20 years and the remaining lease term. At each balance sheet date, Nordea Bank Abp assesses whether there is any indication that an item of prop- erty and equipment may be impaired. If any such indi- cation exists, the recoverable amount of the asset is estimated, and any impairment loss is recognised. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. Properties and equipment EURm 31 Dec 2025 31 Dec 2024 Equipment1 Leasehold improvements Total Equipment1 Leasehold improvements Total Acquisition value at beginning of year 104 290 394 364 484 848 Acquisitions 11 29 40 6 36 42 Sales/disposals -2 -2 -4 -273 -215 -488 Reclassifications 7 -7 – 6 -7 -1 Translation differences 0 5 5 1 -8 -7 Acquisition value at end of year 120 315 435 104 290 394 Accumulated depreciation and impairment at beginning of year -58 -112 -170 -318 -303 -621 Accumulated depreciation and impairment charges on sales/disposals 2 1 3 271 208 479 Depreciation according to plan -13 -21 -34 -12 -21 -33 Translation differences 0 -1 -1 1 4 5 Accumulated depreciation and impairment at end of year -69 -133 -202 -58 -112 -170 Total 51 182 233 46 178 224 1) Incl uding buildings of EUR 2m (EUR 2m) and investment properties of EUR 0m (EUR 0m). Amounts related to investment properties recognised in the income statement were insignificant. P4.3 Leases Accounting policies A lease is a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Leases are not recognised on Nordea Bank Abp’s balance sheet. Lease payments are recognised as “Other operating expenses” in the income statement on a straight-line basis over the lease term unless another systematic way better reflects the time pat- tern of Nordea Bank Abp’s benefit. The lease terms normally range between 3 and 20 years. Leases are mainly related to office premises contracts and office equipment contracts normal t o the business. Non-cancellable operating leases EURm 31 Dec 2025 31 Dec 2024 Less than one year 121 145 1–2 years 108 135 2–5 years 276 330 5–10 years 352 354 10–15 years 270 300 15–20 years 66 92 Total 1,193 1,356 Nordea Bank Abp operates from leased premises. The premises are mainly divided into head office contracts, branch office contracts and other contracts. Future mini- mum lease payments under non-cancellable operating leases which are payable by Nordea Bank Abp are pre- sented in the table above. The head office contracts in the different Nordic coun- tries generally have a fixed lease term of 10–20 years. Usually these contracts either have continuation options or are automatically prolonged unless separately terminated at the end of the lease term. Branch office contracts generally have fixed lease term of 1–10 years or are without an end date with the right to terminate. The termination clauses are generally 6–24 months. The main principle is that the premises contracts do not contain purchase options. Company car contracts generally have a fixed lease term of less than five years. ===== SIDA 339 ===== Nordea Annual Report 2025 338 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P5 Provisions Accounting policies Provisions (which are presented as a liability) are recognised when Nordea Bank Abp has a present obligation (legal or constructive) as a result of a past event if it is probable (i.e. more likely than not) that an outflow of resources embodying economic bene- fits will be required to settle the obligation, where a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the expenditure required to set- tle the present obligation at the end of the reporting period. Accounting policies relating to employee benefits are further described in Note P7 “Employee benefits and key management personnel remuneration” and relating to financial guarantee contracts and credit commitments in Note P6 “Off-balance sheet items”. Accounting policies for provisions for off-balance sheet items can be found in Note P3.7 “Loans”. Provisions EURm 31 Dec 2025 31 Dec 2024 Restructuring 50 68 Guarantees/commitments 188 214 Other 108 94 Total 346 376 Movements in restructuring and other provisions EURm Restructuring Other 2025 2024 2025 2024 At beginning of year 68 78 94 116 New provisions made 23 27 108 57 Provisions utilised -37 -34 -83 -79 Reversals -4 -5 -11 – Reclassifications – 3 – – Translation differences 0 -1 0 0 At end of year 50 68 108 94 Provisions for restructuring costs consist of staff-related restructuring of EUR 30m (EUR 47m) and premises-re- lated obligations of EUR 20m (EUR 16m). The staff-related provision is related to contracts entered into, or activities communicated but not yet exe- cuted, where payments have not been made. These con- tracts are entered into in the ordinary course of business. Approximately EUR 27m (EUR 27m) out of the total restructuring provision is expected to be utilised/paid out in 2026. All staff-related activities are expected to be exe- cuted on in 2026, but payments are expected to extend into 2027. As for any other provision, there is uncertainty surrounding the timing and the amount to be finally paid. The uncertainty is expected to decrease as the plans are executed. Loan loss provisions for off-balance sheet items amounted to EUR 188m (EUR 215m). More information on these provisions can be found in section 2 “Credit risk” in Note P10 “Risk and liquidity management” and Note P6 “Off-balance sheet items”. More information on AML-related matters can be found in section 6.3 “Financial crime prevention” in the Group’s Note G11 “Risk and liquidity management”. P6 Off-balance sheet items P6.1 Contingent liabilities Accounting policies A contingent liability is: • a possible obligation whose existence will be confirmed only by future event(s) not wholly within Nordea Bank Abp’s control or • a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured with suffi- cient reliability. Contingent liabilities are not recognised as liabilities on the balance sheet but disclosed as an off-balance sheet item unless the possibility of an outflow is remote. When an outflow is more likely than not, a provision is recognised on the balance sheet. The accounting policies covering provisions can be found in Note P5 “Provisions”. Guarantees and documentary credits are recog- nised on the balance sheet under the expected credit loss requirements as further defined in Note P3.7 “Loans”. Changes in provisions are recognised in the income statement in the line item “Net loan losses”. Premiums received for financial guarantees are amortised over the guarantee period and recognised as “Fee and commission income” in the income statement. The contractual amounts are recognised off balance sheet, net of any provisions. The table below includes all issued guarantees, also those for which the possibility of an outflow of resources is con- sidered remote. Contingent liabilities EURm 31 Dec 2025 Of which on behalf of group undertakings Loan guarantees 33,684 31,688 Other guarantees 20,641 3,095 Documentary credits 450 – Other contingent liabilities 4 – Total 54,779 34,783 EURm 31 Dec 2024 Of which on behalf of group undertakings Loan guarantees 35,260 33,426 Other guarantees 19,120 618 Documentary credits 433 0 Other contingent liabilities 50 – Total 54,863 34,044 In its normal business, Nordea Bank Abp issues various forms of guarantees in favour of its customers. Loan guar- antees are provided for customers to guarantee obliga- tions in other credit and pension institutions. Other guar- antees mainly consist of commercial guarantees such as bid guarantees, advance payment guarantees, warranty guarantees and export-related guarantees. Contingent lia- bilities also include unutilised irrevocable import docu- mentary credits and confirmed export documentary cred- its. These transactions are part of the bank´s services and support Nordea Bank Abp´s customers. The 2025 Annual General Meeting decided that Nordea Bank Abp will cover or reimburse the members of the Board of Directors all costs and expenses related to or arising from the Board membership, including travel, logis- tics and accommodation as well as consultative, legal and administrative costs. The legal costs can e.g. include required costs of legal defence and claims made (during and after their period of office) against Board members in cases where Board members are not found liable or guilty of any intentional wrongdoing or grossly negligent behaviour. ===== SIDA 340 ===== Nordea Annual Report 2025 339 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P6.1 Contingent liabilities, cont. As of 2023 members of the GLT are afforded coverage and reimbursement corresponding to that of the Board in instances related to or arising from their GLT membership. In addition, as of 2019 Nordea Bank Abp has undertaken to indemnify the members of the GLT against legal expenses incurred in relation to certain claims or investi- gations by third parties based on circumstances or events which occurred during the members’ respective terms of office, excluding crimes or actions made with intent or gross negligence, up to a capped aggregate amount of EUR 37.5m, unless the Board decides otherwise on a case- by-case basis. Nordea Bank Abp has undertaken, in relation to certain individuals and on certain conditions, to be responsible for the potential payment liability against these individuals in their capacity of managing directors or board members of group undertakings of Nordea Bank Abp. Nordea Bank Abp purchases directors and officers lia- bility insurance, which provides cover for personal liabili- ties of its Board of Directors and management as well as liability assumed by the bank to a certain extent following indemnification undertakings. The terms and conditions including the total limit of liability of the directors and officers liability insurance programme are in line with large European banks. A limited number of employees are entitled to sever- ance pay if they are dismissed before reaching their nor- mal retirement age. For further information, see Note P7.4 “Key management personnel remuneration”. P6.2 Commitments Accounting policies Commitments are irrevocable promises to extend credit or make other types of payments in the future. Unutilised credit facilities are also disclosed as commitments. Irrevocable commitments are recognised on the balance sheet under the expected credit loss requirements as further defined in Note P3.7 “Loans”. Changes in provisions are recognised in “Net loan losses” in the income statement. Premiums received on credit commitments are generally amortised over the loan commitment period. The contractual amounts are recognised off balance sheet, net of any provisions. Commitments EURm 31 Dec 2025 Of which to group undertakings Unutilised overdraft facilities 33,335 6,877 Loan commitments 71,359 19,358 Future payment obligations 482 – Other commitments 3 – Total 105,179 26,235 EURm 31 Dec 2024 Of which to group undertakings Unutilised overdraft facilities 32,082 6,353 Loan commitments 66,900 20,743 Future payment obligations 545 – Other commitments 3 – Total 99,530 27,096 Reverse repurchase agreements are recognised on and derecognised from the balance sheet on the settlement date. As at 31 December 2025 Nordea Bank Abp had signed reverse repurchase agreements that have not yet been settled and consequently are not recognised on the balance sheet. On the settlement date these reverse repurchase agreements will, as far as possible, replace existing reverse repurchase agreements that were not derecognised as at 31 December 2025. The net impact on the balance sheet is minor. These instruments have not been disclosed as commitments. For more information on reverse repurchase agree- ments, see Note P3.2 “Transferred assets and obtained collateral”. P6.3 Assets pledged Accounting policies Assets recognised on the balance sheet and pledged as security for Nordea Bank Abp’s own liabilities are disclosed as “Assets pledged as security for own lia- bilities”. Assets recognised on the balance sheet and pledged for other than own liabilities are disclosed as “Assets pledged as security for other than own liabilities”. Securities borrowed and then used as col- lateral are presented as “Transferred assets and obtained collateral” (see Note P3.2 “Transferred assets and obtained collateral” for accounting policies). Assets pledged EURm 31 Dec 2025 31 Dec 2024 Assets pledged as security for own liabilities 18,972 16,240 Assets pledged as security for other than own liabilities 169 236 Total 19,141 16,476 Assets pledged as security for own liabilities EURm 31 Dec 2025 31 Dec 2024 Assets pledged as security for own liabilities Securities etc. 14,380 10,408 Other assets pledged 4,592 5,832 Total 18,972 16,240 EURm 31 Dec 2025 31 Dec 2024 The above pledges pertain to the following liabilities1 Deposits by credit institutions 10,241 8,522 Deposits and borrowings from the public 4,164 1,022 Derivatives 4,341 5,532 Other liabilities and commitments 224 257 Total 18,970 15,333 1) Liabilities after offsetting between assets and liabilities on the balance sheet. Assets pledged as security for own liabilities comprise securities pledged as security under repurchase agree- ments and insecurities lending. The transactions are con- ducted under standard agreements employed by financial market participants. Counterparties in those transactions are credit institutions and the public. The transactions are typically short term and mature with three months. Other assets pledged relate to certificates of deposit pledged by Nordea Bank Abp to comply with the authori- ties’ requirements. Nordea Bank Abp has not provided any pledges or mortgages on behalf of its customers. Assets pledged as security for other than own liabilities Assets pledged as security for other than own liabilities mainly relate to interest-bearing securities pledged as security for payment settlements with central banks and clearing institutions and amounted to EUR 169m (EUR 236m). Only securities pledged overnight are disclosed (securities pledged intraday are excluded). Collateral pledged for items other than Nordea Bank Abp’s own lia- bilities, e.g. for a third party or for Nordea Bank Abp’s own contingent liabilities, is also presented under this item. Nordea Bank Abp has not pledged any assets on behalf of group undertakings or associated undertakings. ===== SIDA 341 ===== Nordea Annual Report 2025 340 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P7 Employee benefits and key management personnel remuneration All forms of consideration given by Nordea Bank Abp to its employees as compensation for services performed are employee benefits. Employee benefits consist of short- term benefits, post-employment benefits and share-based payment plans. Short-term benefits are to be settled within twelve months after the reporting period when the services have been performed. Short-term benefits consist mainly of fixed and variable salary. For more information, see Note P7.1 “Fixed and variable salaries”. Post-employment benefits are benefits payable after termination of the employment. Post-employment bene- fits in Nordea Bank Abp consist only of pensions. For more information, see Note P7.2 “Pensions”. Share-based payment plans cover share-based pay- ments for services from employees. For more information, see Note P7.3 “Share-based payment plans”. In addition, remuneration to key management person- nel is disclosed in Note P7.4 “Key management personnel remuneration”. Additional disclosures on remuneration The Board of Directors’ report includes a separate section on remuneration. Further, in accordance with the Finnish Corporate Governance Code 2025 the Remuneration Report for Governing bodies 2025 will be prepared for the Annual General Meeting on 24 March 2026. Finally aggre- gated disclosures for key management personnel and material risk takers (Pillar III, CRR article 450) will be pub- lished on nordea.com ahead of the Annual General Meeting. P7.1 Fix ed and variable salaries Accounting policies Short-term benefits Short-term benefits consist mainly of fixed and vari- able salar y. Both fixed and variable salaries are expensed in the period when the employees per- form services for Nordea Bank Abp. Short-term benefits that fulfil the capitalisation requirements defined in the accounting policies in Note P4.1 “Intangible assets” are included gross in this note, but subsequently capitalised and added to “Intangible assets” on the balance sheet. Termination benefits Termination benefits normally arise if employment is terminated before the normal retirement date or if an employee accepts an offer of voluntary redundancy. Termination benefits are expensed when Nordea Bank Abp has an obligation to make the payment. An obligation arises when a formal plan has been committed to on the appropriate organisational level and when Nordea Bank Abp is without realistic possibility of withdrawal, which normally occurs when the plan has been communicated to the affected individual or employee(s) or their representatives. Termination benefits can include both short-term benefits, for instance a number of months’ salary, and post-employment benefits, normally in the form of early retirement benefit. Nordea Bank Abp’s Short Term Incentive Plans Nordea Bank Abp operates Short Term Incentive Plans (STIPs). These are the Nordea Incentive Plan (NIP), which is offered to the CEO and members of the Group Leadership Team (GLT) and subject to invitation, to other employees, or bonus schemes (bonus) for selected employees in specific business areas or units as approved by the Board of Directors (Board). For more information, see section “Nordea’s Short Term Incentive Plans” in the Group’s Note G8.1. Staff costs EURm 2025 2024 Fixed and variable salaries1 -2,186 -2,093 Pension costs (specification in Note P7.2) -256 -244 Social security contributions -422 -400 Total -2,864 -2,737 Expenses capitalised in IT development projects2 133 118 Total -2,731 -2,619 1) Of which all ocation to profit sharing for 2025 amounted to EUR -54m (EUR -55m), consisting of a new allocation of EUR -51m (EUR -55m) and an adjustment related to prior years of EUR -3m (EUR 0m). 2) See No te P4.1 “Intangible assets”. P7.2 Pensions Accounting policies Defined contribution plans Pension plans that are based on defined contribution arrangements hold no pension liability for Nordea Bank Abp. Pension costs for defined contribution plans are recognised as an expense as the employee renders services to the entity and the contribution payable in exchange for that service becomes due. In general, the payment is associated with and settled through regular salary payments. Nordea Bank Abp also contributes to state pension plans. Pension costs for defined contribution plans that fulfil the capitalisation requirements defined in the accounting policies in Note P4.1 “Intangible assets” are included gross in this note, but subsequently capitalised and added to “Intangible assets” on the balance sheet. Defined benefit plans The major defined benefit plans are funded, covered by assets in pension funds/foundations. If the fair value of plan assets associated with a specific pen- sion plan is lower than the gross present value of the defined benefit obligation determined using the projected unit credit method, the net amount is rec- ognised as a liability (“Retirement benefit liabili- ties”). If not, the net amount is recognised as an asset (“Retirement benefit assets”). Non-funded pension plans are recognised as “Retirement benefit liabilities”. Nordea Bank Abp’s net obligation for defined ben- efit plans is calculated separately for each plan by estimating the amount of future benefit that employ- ees have earned for their service in the current period and prior periods. That benefit is discounted to determine its present value. Actuarial calculations, including the projected unit credit method, are applied to assess the present value of defined bene- fit obligations and related costs, based on several actuarial and financial assumptions. Current and past service cost is recognised in the income statement in the current year. Current service cost is defined as the increase in the present value of the defined ben- efit obligation resulting from employee service in the current period. Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods triggered by plan amendments or curtailments. The present value of the obligation and the fair value of any plan assets are impacted by changes in actuarial assumptions (discount rates (interest rates and credit spreads), inflation, salary increases, turn- over and mortality) and experience effects, including actual outcome compared to assumptions. The remeasurement effects are recognised immediately in equity through the fair value reserve. The discount rate is determined by reference to high-quality corporate bonds where a deep enough market for such bonds exists. Covered bonds are in this context considered to be corporate bonds. In Sweden, Norway and Denmark, the discount rate is determined with reference to covered bonds, whereas in Finland and the UK it is determined with reference to corporate bonds. In Sweden, Norway, Finland and Denmark, the observed bond credit spreads over the swap curve are derived from long- dated covered or corporate bonds and extrapolated to the same duration as the pension obligations using the relevant swap curves. In the UK, the corpo- rate bond credit spread over the government bond ===== SIDA 342 ===== Nordea Annual Report 2025 341 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P7.2 Pensions, cont. rate is extrapolated to the same duration as the pen- sion obligations using the government bond curve. When the calculation results in a net asset, the recognised asset is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan. Social security contributions are calculated and accounted for based on the net recognised surplus or deficit by plan and are included on the balance sheet as “Retirement benefit liabilities” or “Retirement benefit assets”. Pension costs to defined benefit plans that fulfil the capitalisation requirements defined in the accounting policies in Note P4.1 “Intangible assets” are included gross in this note, but subsequently capitalised and added to “Intangible assets” on the balance sheet. Pension costs The companies within Nordea Bank Abp have various pension plans. They consists of both defined benefit plans and defined contribution plans, reflecting national prac- tices and conditions in the countries where Nordea Bank Abp operates. Pension costs EURm 2025 2024 Defined contribution plans -240 -226 Defined benefit plans1 -16 -18 Total -256 -244 1) Ex cluding special wage tax (SWT) in Sweden and social security contributions (SSC) in Norway totalling of EUR -4m (EUR -7m). Defined contribution plans All new employees have been offered defined contribution plans since 2013 when the defined benefit plan in Sweden was closed for new members. The defined contribution plans follow the local collective agreements and regula- tions in each country. In Norway, Nordea Bank Abp is part of a collectively agreed multi-employer pension plan in the private sector (AFP), providing entitled employees with a lifelong addition to their regular pensions. As no information is available on Nordea Bank Abp’s share of the liabilities/ assets and pension costs, the AFP is accounted for as a defined contribution plan. The AFP plan is financed by an annual premium, for 2025 equal to 2.7% of employees’ salary between 1 and 7.1 times the Norwegian social security base amount (“G”). The premium amounted to EUR 4m (EUR 3m). Defined benefit plans The plans are operated in accordance with local regula- tory requirements, collective agreements and local prac- tice and are generally employer-financed final salary and service-based pension plans providing pension benefits in addition to the statutory systems. All defined benefit plans are closed for new entrants; new employees are offered defined contribution plans. Retirement benefit assets and liabilities EURm 31 Dec 2025 31 Dec 2024 Plans with net retirement benefit assets 328 351 Plans with net retirement benefit liabilities 251 234 Net liability(-)/asset(+) 77 117 In general, the liabilities are safeguarded by assets in dedi- cated pension funds or foundations or alternatively by credit insurance (Sweden only). Pension funds and founda- tions hold both the assets and the pension liabilities, except for Sweden where the pension foundation serves as collat- eral for the pension liabilities held by Nordea Bank Abp. Minimum funding requirements differ between the pension funds and foundations according to local regula- tory requirements. The funding requirement is generally that the pension obligations measured using local require- ments must be covered in full by a local predefined sur- plus. Other pension plans are not covered by funding requirements and are generally unfunded. The respective Nordea Bank Abp entities issuing the defined pension benefit serve as the sponsoring undertaking in accordance with the EU IORP II Directive. Defined benefit plans impact Nordea Bank Abp via changes in the net present value of obligations and/or changes in the market value of plan assets. P7.3 Shar e-based payment plans Accounting policies Equity-settled plans An equity-settled share-based payment transaction occurs when Nordea Bank Abp receives goods or services and uses its own equity instruments as con- sideration. Such transactions are recognised as a staff expense and a corresponding increase in equity. The expense is measured at the fair value of the goods or services received unless that fair value cannot be estimated reliably. In such cases, the expense is measured by reference to the fair value of the equity instruments awarded, which is the method used by Nordea Bank Abp. When Nordea Bank Abp issues such instruments, the award date fair value of these rights is expensed on a straight-line basis over the vesting period. The fair value per right is estimated at award date and not subsequently updated. The vesting period is the period over which the employees have to remain in service at Nordea in order for their rights to vest. For rights with non-market performance condi- tions, the amount expensed is the award date fair value per right multiplied by the best estimate of rights that will eventually vest, which is reassessed at each reporting date. For rights with market per- formance conditions, the total fair value is estimated based on the fair value of each right times the maxi- mum number of rights at award date. Market condi- tions are taken into account when estimating the fair value of the equity instruments awarded. Therefore, if all other vesting conditions (e.g. service condi- tions) are met, Nordea Bank Abp recognises the expense for awards of equity instruments with mar- ket conditions over the vesting period irrespective of whether that market condition is satisfied. Social security costs are also allocated over the vesting period. The provision for social security costs is reassessed on each reporting date to ensure that the provision is based on the rights’ fair value at the reporting date. Cash-settled plans A cash-settled share-based payment transaction occurs when Nordea Bank Abp acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or ser- vices for amounts that are based on the price of equity instruments of Nordea Bank Abp. For cash-settled share-based payment transactions, the goods or services acquired and the liability incurred are measured at the fair value of the liability. The lia- bility is remeasured at fair value at the end of each reporting period, with any changes in fair value rec- ognised in the line item “Net result from securities at fair value through profit or loss” in the income statement. Nordea Bank Abp’s share-based remuneration plans Nordea Bank Abp has several variable pay plans for selected Nordea Bank Abp employees (participants). The terms of the plans vary depending on the target group. Disclosures related to the share-based plans can be found below. All remuneration plans are also described in the section “Remuneration” of the Board of Directors’ report. Until the end of the performance/financial year 2018, Nordea Bank Abp’s share-based variable remuneration plans were partly in the form of equity-linked total shareholders’ return indexation (excluding dividends) and partly in the form of cash. The plans were consequently generally settled in cash and the portion indexed with Nordea’s total share- holders’ return was accounted for as a cash-settled share- based payment plan. The total shareholders’ return indexa- tion resulted in a loss of EUR 0.7m in 2025 related to the remaining deferred payments s temming from these plans. Starting from the 2019 performance year, share-based variable pay plans are partly in the form of cash not linked to the Nordea share and partly in the form of Nordea shares, which makes the portion paid in Nordea shares an equity-settled share-based plan. Total shareholders’ return indexation may be used for share-based variable pay plans, subject to operational, administrative or tax issues as well as applicable regulation in certain legal entities. ===== SIDA 343 ===== Nordea Annual Report 2025 342 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P7.3 Share-based payment plans, cont. The table below covers all plans with share-based plan expenses recognised in 2025 as well as the comparative figures for 2024. Figures for 2025 are based on the expected outcome and all figures are excluding social security expenses. The expense for 2025 is based on an assumption about the number of shares that will be awarded and deferred for delivery in later years. Nordea Bank Abp’s Long Term Incentive Plans See the, section “Nordea’s Long Term Incentive Plans” in the Group’s Note G8.3. Share-based variable remuneration plans other than LTIP plans See section “Share-based variable remuneration plans other than LTIP plans” in the Group’s Note G8.3. The table below shows the remaining liabilities for the cash-settled share-based plans used 2014–2018. The table only includes deferred amounts indexed with Nordea TSR. Share-linked deferrals (cash-settled) EURm 2025 2024 Opening balance 3 6 Deferred/earned during the period 0 – TSR indexation during the period 1 – Payments during the period -2 -3 Translation differences 0 – Closing balance 2 3 Share-based payment plans Plan year Equity-settled or cash-settled Delivery period Expense 2025 Expense 2024 Liability 31 Dec 2025 Liability 31 Dec 2024 Outstanding rights 2025 - LTIP 2025–2027 Equity-settled 2028–2033 2 – – – Yes1 - NIP and bonus Equity-settled 2026–2031 10 – – – Yes2 - Buy-outs etc. Equity-settled 2025–2029 – – – – Yes 2024 - LTIP 2024–2026 Equity-settled 2027–2032 2 2 – – Yes3 - NIP and bonus Equity-settled 2025–2030 5 10 – – Yes - Buy-outs etc. Equity-settled 2024–2028 0 0 – – Yes 2023 - LTIP 2023–2025 Equity-settled 2026–2031 3 3 – – Yes4 - NIP and bonus Equity-settled 2024–2029 -2 5 – – Yes - Buy-outs etc. Equity-settled 2023–2027 0 0 – – Yes Previous years Cash-settled 2022–2027 1 0 2 3 No Equity-settled 2022–2030 -7 -4 – – Yes Total 14 16 2 3 1) Rights will be awarded following the end of the three-year performance period (2025–2027) over the delivery period (2028–2033). 2) Rights will be awarded in 2026 based on the performance in 2025. 3) Rights will be awarded following the end of the three-year performance period (2024–2026) over the delivery period (2027–2032). 4) Rights will be awarded following the end of the three-year performance period (2023–2025) over the delivery period (2026–2031). P7.4 Key management personnel remuneration Accounting policies For information about the accounting policies, see Note P7.1 “Fixed and variable salaries”, Note P7.2 “Pensions” and Note P7.3 “Share-based payment plans”. For definition of key management personnel, see Note P9.8 “Related party transactions”. Board remuneration For board remuneration, see section “Board remuneration” in the Group’s Note G8.4 Key management personnel remuneration. Remuneration of the Chief Executive Officer, the Deputy Managing Director and the Group Leadership Team For the Group Leadership Team remuneration, see section “Remuneration of the Chief Executive Officer, the Deputy Managing Director and the Group Leadership Team” in the Group’s Note G8.4 Key management personnel remuneration. P7.5 Number of employees The table below presents the number of employees by type of employment at the end period. Number of employees 31 Dec 2025 31 Dec 2024 Change Permanent full-time 24,801 25,593 -791 Permanent part-time 921 999 -78 Fixed term 171 291 -120 Total number of employees end of period 25,893 26,883 -989 ===== SIDA 344 ===== Nordea Annual Report 2025 343 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P8 Investments in group undertakings, associated undertakings and joint ventures P8.1 Investments in group undertakings Accounting policies Group undertakings are the entities that Nordea Bank Abp controls. Control is generally achieved when Nordea Bank Abp holds, directly or indirectly through group undertakings, more than 50% of the voting rights. Nordea Bank Abp’s investments in group under- takings are recognised under the cost model. At each balance sheet date, all shares in group under- takings are reviewed for indications of impairment. If such indication exists, an analysis is performed to assess whether the carrying amount of each holding of shares is fully recoverable. The recoverable amount is the higher of fair value less costs to sell and the value in use. Any impairment charge is calculated as the difference between the carrying amount and the recoverable amount and is pre- sented in the line item “Depreciation, amortisation and impairment charges” in the income statement. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. Group undertakings This specification includes all directly owned group under takings. Registration number Domicile Number of shares Carrying amount 31 Dec 2025 EURm Carrying amount 31 Dec 2024, EURm Shareholding, % Nordea Kredit Realkreditaktieselskab1 15134275 Copenhagen 17,172,500 2,951 2,950 100.0 Nordea Hypotek AB (publ)1 556091-5448 Stockholm 100,000 3,323 3,083 100.0 Nordea Eiendomskreditt AS1 971227222 Oslo 16,781,828 2,899 2,926 100.0 Fionia Asset Company A/S 31934745 Copenhagen 148,742,586 1,185 1,185 100.0 Nordea Finance Finland Ltd1 0112305-3 Helsinki 1,000,000 1,067 1,067 100.0 Nordea Baltic AB 559220-4688 Stockholm 1,000 8 8 100.0 Nordea Mortgage Bank Plc1 2743219-6 Helsinki 257,700,000 1,341 1,281 100.0 Nordea Life Holding AB 556742-3305 Stockholm 1,000 722 722 100.0 Nordea Finance Equipment AS3 987664398 Oslo – – 685 – LLC Promyshlennaya Kompaniya Vestkon2 1027700034185 Moscow 4,601,942,680 72 59 100.0 Nordea Finans Norge AS3 924507500 Oslo 63,000 1,141 635 100.0 Nordea Funds Ltd 1737785-9 Helsinki 3,350 385 385 100.0 Nordea Asset Management Holding AB 559104-3301 Stockholm 500 265 245 100.0 Nordea Finans Danmark A/S3 89805910 Høje Taastrup 20,006 271 177 100.0 Nordea Finans Sverige AB (publ)1, 3 556021-1475 Stockholm 1,000,000 215 111 100.0 Nordea Essendropsgate Eiendomsforvaltning AS 986610472 Oslo 7,500 33 34 100.0 Nordea Markets Holding Company INC 36-468-1723 New York 1,000 91 91 100.0 Nordic Baltic Holding (NBH) AB 556592-7950 Stockholm 1,000 1 1 100.0 Privatmegleren AS 986386661 Oslo 12,000,000 9 9 100.0 Danbolig A/S 13186502 Copenhagen 1 1 1 100.0 Structured Finance Servicer A/S 24606910 Copenhagen 2 1 1 100.0 Nordea Hästen Fastighetsförvaltning AB 556653-6800 Stockholm 1,000 0 0 100.0 First Card AS 963215371 Oslo 200 0 0 100.0 Nordea Vallila Fastighetsförvaltning Ab 1880368-8 Helsinki 1,000 0 0 100.0 Kiinteistö Oy Kaarenritva 0362827-4 Vantaa 100 0 0 100.0 Nordea Limited 03051044 London 2 – – 100.0 Total 15,981 15,656 1) Credit institutions. 2) In accordance with its strategy, Nordea is focusing on its business in the Nordic region. This has entailed the Group winding down its operations in Russia. The liquidation of the remaining Russian subsidiary is pending finalisation. 3) In 2025 Nordea Finance Equipment AS was merged into Nordea Finans Sverige AB (publ), Nordea Finans Norge AS and Nordea Finans Danmark A/S. P8.2 Investments in associated undertakings and joint ventures Accounting policies Associated undertakings are the entities where Nordea Bank Abp’s share of voting rights is between 20% and 50% and/or where Nordea Bank Abp has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Joint ventures are the entities where Nordea Bank Abp has joint control. Joint control is the contractu- ally agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the par- ties sharing control. Nordea Bank Abp’s investments in associated undertakings and joint ventures are recognised under the cost model. At each balance sheet date, all shares in associated undertakings and joint ven- tures are reviewed for indications of impairment. If such indication exists, an analysis is performed to assess whether the carrying amount of each holding of shares is fully recoverable. The recoverable amount is the higher of fair value less costs to sell and the value in use. Any impairment charge is cal- culated as the difference between the carrying amount and the recoverable amount and is pre- sented in the line item “Depreciation, amortisation and impairment charges” in the income statement. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. ===== SIDA 345 ===== Nordea Annual Report 2025 344 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P8.2 Investments in associated undertakings and joint ventures, cont. Associated undertakings and joint ventures 1 Associated undertakings Registration number Domicile Carrying amount Shareholding, %2025, EURm 2024, EURm Eksportfinans ASA2,3 816521432 Oslo – 42 – Eiendomsverdi AS 881971682 Oslo 10 10 25 Suomen Luotto-osuuskunta 0201646-0 Helsinki 1 1 28 Bankomat AB 556817-9716 Stockholm 5 5 20 OPEN POS Nordic Group AB 559063-2369 Gothenburg 2 2 46 Subaio ApS 37766585 Aalborg 2 2 20 CrediWire ApS 37264628 Copenhagen 2 2 7 Getswish AB 556913-7382 Stockholm 8 8 20 Svenska e-fakturabolaget AB 556563-0596 Stockholm 2 1 50 Other 0 0 Total 32 73 Joint ventures Siirto Brand Oy 3102648-1 Helsinki 6 0 50 Tibern AB 559384-3542 Stockholm 1 1 14 Invidem AB 559210-0779 Stockholm – – 17 Finansinfrastruktur i Sverige AB4 559198-9610 Stockholm 32 0 23 Total 39 1 Total investments in associated undertakings and joint ventures 71 74 1) All shares in associated undertakings and joint ventures are unlisted. 2) Credit institutions. 3) Eksportfinans ASA was sold in 2025. 4) In 2025 P27 Nordic Payments Platform AB changed its name to Finansinfrastruktur i Sverige AB. P8.3 Currency translation of foreign entities Accounting policies The financial statements are presented in euro (EUR). When translating the financial statements of foreign branches into EUR from their functional cur- rency, the assets and liabilities of foreign branches in Nordea Bank Abp have been translated at the clos- ing rates, while items in the income statement are translated at the average exchange rate for the year. The average exchange rates are calculated based on daily exchange rates divided by the number of busi- ness days in the period. Translation differences are recognised in the retained earnings in equity. Any remaining equity in foreign branches is con- verted at the closing rates with translation differ- ences recognised in equity. Information on the most important exchange rates is disclosed in the section “Exchange rates” in P1 “Accounting policies”. ===== SIDA 346 ===== Nordea Annual Report 2025 345 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9 Other disclosures P9.1 Equity Accounting policies Equity is the residual interest in recognised assets after deduction of recognised liabilities. For equity, there are no requirements to distribute cash flows. Instruments are classified as financial liabilities if such genuine requirements exist, for instance to pay when a triggering event occurs that is beyond the control of both the issuer and the holder of the instruments. Any payments connected to instruments classified as equity are accounted for directly in equity and presented as dividends. Nordea Bank Abp has deter- mined that payments on financial instruments classi- fied as equity (i.e. Additional Tier 1 instruments with write-down features) are distribution of profits and they are therefore accounted for as dividends. Dividends to shareholders are recognised as a reduc- tion of equity when the Annual General Meeting has adopted the proposal. The reduction of equity is accounted for when the Board of Directors decides on dividends in situations where the Annual General Meeting has given the Board of Directors a mandate to make such a decision up to a certain cap. Investments in own shares are not accounted for as assets; instead, they are recognised as a reduction in equity net of any transaction costs. Acquisitions of treasury shares as part of the Markets trading oper- ations are recognised as a reduction in invested unrestricted equity. Treasury shares acquired to opti- mise the capital structure and Nordea Bank Abp’s buy-back programmes are recognised as a reduction in retained earnings. Transaction costs related to repurchasing of treasury shares are also recognised in equity. There is no impact on the financial state- ments when shares are cancelled. Sales of own shares in the trading operations are recognised as increases in invested unrestricted equity. Contracts on Nordea shares that can be settled net in cash, for instance derivatives such as options and warrants, are either presented as financial assets or liabilities, meaning that these are not equity instruments. Additional Tier 1 capital holders Nordea Bank Abp has issued perpetual subordinated instruments (Additional Tier 1 instruments) which are con- verted into a variable number of Nordea shares in case a pre-defined CET1 trigger level for either the Nordea Group or Nordea Bank Abp is breached. Interest payments are fully discretionary and mandatorily cancelled in certain cir- cumstances. As Nordea Bank Abp may be obliged to deliver a variable number of Nordea shares, these Additional Tier 1 instruments are classified as financial liabilities. Nordea Bank Abp has also issued perpetual subordi- nated instruments (Additional Tier 1 instruments) which will be written down instead of converted into Nordea shares in case a pre-defined CET1 trigger level for either the Nordea Group or Nordea Bank Abp is breached. Interest payments are fully discretionary and mandatorily cancelled in certain circumstances. These instruments are classified as equity as there is no requirement for Nordea Bank Abp to pay interest or principal to the holders of the instruments. By the end of 2025 no such instruments were outstanding. Share capital The share capital amounts to EUR 4,049,951,919. The shares in Nordea Bank Abp have no nominal value. Each share carries one voting right. For more information about the number of registered shares, see section “Nordea shares” below. Invested unrestricted equity Includes the reserve for invested unrestricted equity which consists of the subscription price of the shares in Nordea Bank Abp’s share issue or rights issue which has not been recorded in share capital. The reserve for invested unre- stricted equity has also been impacted by acquisitions and sales of treasury shares as part of the Markets trading operations. Other reserves Consist of a fair value reserve including reserves for cash flow hedges, financial assets classified in the category “Financial assets at fair value through other comprehen- sive income”, accumulated remeasurements of defined benefit pension plans as well as a reserve for currency translation differences. Retained earnings Primarily comprise Nordea Bank Abp’s undistributed prof- its from previous years and currency translation differences. Equity EURm Restricted equity Unrestricted equity Share capital Other reserves Invested unrestricted equity Retained earnings Additional Tier 1 capital holders Total equity Balance at 1 Jan 2025 4,050 -37 1,053 22,310 750 28,126 Net profit for the year – – – 4,742 – 4,742 Currency translation differences – – – 202 – 202 Investments in foreign operations: Valuation gains/losses, net of tax – -39 – – – -39 Fair value measurement of financial assets: Valuation gains/losses, net of tax – 131 – – – 131 Transferred to the income statement, net of tax – -22 – – – -22 Cash flow hedges1: Valuation gains/losses, net of tax – -1,957 – – – -1,957 Transferred to the income statement, net of tax – 1,890 – – – 1,890 Changes in own credit risk related to liabilities at fair value option: Valuation gains/losses, net of tax – 1 – – – 1 Defined benefit plans: Remeasurement of defined benefit plans during the year, net of tax – -104 – – – -104 Transactions with owners: Share-based payments – – – 14 – 14 Paid interest on Additional Tier 1 capital, net of tax – – – -21 – -21 Change in Additional Tier 1 capital – – – – -750 -750 Dividend – – – -3,268 – -3,268 Sale/purchase of own shares2 – – 24 -897 – -873 Other changes: – – – – 0 0 Balance at 31 Dec 2025 4,050 -137 1,077 23,082 0 28,072 1) For more detailed information, see Note P3.5 “Hedge accounting”. 2) Refers to the change in the holding of own shares related to treasury shares for capital optimisation purposes, the trading portfolio and Nordea’s shares within portfolio schemes in Denmark. ===== SIDA 347 ===== Nordea Annual Report 2025 346 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.1 Equity, cont. Equity EURm Restricted equity Unrestricted equity Share capital Other reserves Invested unrestricted reserve Retained earnings Additional Tier 1 capital holders Total equity Balance at 1 Jan 2024 4,050 -198 1,063 21,969 750 27,634 Net profit for the year – – – 4,189 – 4,189 Currency translation differences – – – -156 – -156 Investments in foreign operations: Valuation gains/losses, net of tax – 30 – – – 30 Fair value measurement of financial assets: Valuation gains/losses, net of tax – -43 – – – -43 Transferred to the income statement, net of tax – -4 – – – -4 Cash flow hedges1: Valuation gains/losses, net of tax – 1,487 – – – 1,487 Transferred to the income statement, net of tax – -1,457 – – – -1,457 Changes in own credit risk related to liabilities at fair value option: Valuation gains/losses, net of tax – -6 – – – -6 Defined benefit plans: Remeasurement of defined benefit plans during the year, net of tax – 74 – – – 74 Transactions with owners: Share-based payments – – – 16 – 16 Paid interest on Additional Tier 1 capital, net of tax – – – -21 – -21 Dividend – – – -3,218 – -3,218 Sale/purchase of own shares2 – – -10 -372 – -382 Other changes: – 81 – -97 0 -16 Balance at 31 Dec 2024 4,050 -37 1,053 22,310 750 28,126 1) For more detailed information, see Note P3.5 “Hedge accounting”. 2) Refers to the change in the holding of own shares related to treasury shares for capital optimisation purposes, the trading portfolio and Nordea’s shares within portfolio schemes in Denmark. Distributable funds EURm 31 Dec 2025 31 Dec 2024 Invested unrestricted equity 1,077 1,053 Additional Tier 1 capital holders – 750 Retained earnings 18,340 18,121 Net profit for the year 4,742 4,189 Total 24,159 24,113 Capitalised development costs -1,600 -1,439 Total distributable funds1 22,559 22,674 1) For the full amounts in euro, see the section “Proposed distribution of earnings” in the Board of Directors’ report. Nordea shares Nordea Bank Abp’s Articles of Associations do not contain any provisions on shares classes or voting rights. Consequently, Nordea Bank Abp has one class of shares (Nordea shares) and all shares in Nordea Bank Abp are ordinary shares. Each share confers one vote at Nordea Bank Abp’s general meetings as well as an equal right to any dividend. Nordea Bank Abp is not entitled to vote with its own shares at general meetings. The Nordea share does not have any nominal value. At the 2025 Annual General Meeting (AGM), the Board of Directors was authorised to decide on the repurchase of an aggregate of not more than 340,000,000 own shares, subject to the condition that the number of own shares held by Nordea Bank Abp together with its subsidiaries at any given time does not exceed 10% of all Nordea shares. The authorisation will remain in force and effect until 18 months from the resolution of the Annual General Meeting. The 2025 AGM authorised the Board of Directors of Nordea Bank Abp to resolve, on one or several occasions, on the issuance of special rights entitling to either new shares in the company or treasury shares against payment (convertibles) in accordance with or in deviation from the shareholder’s preemptive subscription rights. The maxi- mum number of shares that may be issued based on this authorisation is 340,000,000. The authorisation will remain in force and effect until the earlier of (i) the end of the next Annual General Meeting of the company or (ii) 18 months from the resolution of the meeting. Moreover, the 2025 AGM authorised the Board of Directors of Nordea Bank Abp to resolve, on one or several occasions, on the issuance of new shares or transfer of the company’s own shares of not more than 30,000,000 shares. The authori- sation will remain in force and effect until the earlier of (i) the end of the next Annual General Meeting of the company or (ii) 18 months from the resolution of the meeting. Nordea continued its share buy-back programmes approved by the Board of Directors in accordance with the authorisation granted by the 2024 and 2025 Annual General Meetings. See the 2025 share buy-back pro- grammes in the table below. Announced on Completed on Amount, EURm 17 October 2024 20 February 2025 250 6 March 2025 22 May 2025 250 12 June 2025 19 September 2025 250 16 October 2025 12 December 2025 250 16 December 2025 To be completed in 2026 500 For information on Additional Tier 1 loans that convert into shares, see Note P3.14 “Subordinated liabilities”. For infor- mation on share-based incentive plans, see Note P7.3 “Share-based payment plans” and for information on authorisations held by the Board of Directors, see “Share issue resolution” under “The Nordea share and external credit ratings” in the Board of Directors’ report. The table below shows the change during the year in the total number of Nordea shares as well as the change during the year in the number of outstanding Nordea shares where the non-cancelled treasury shares are deducted. Also the total number of own shares (treasury shares) as at 31 December is given in the table below. Total number of Nordea shares 2025 2024 Total number of shares at 1 January 3,502,631,963 3,528,279,508 New shares issued during the year – 8,000,000 Cancelled own shares during the year -68,790,718 -33,647,545 Total number of Nordea shares at 31 December 3,433,841,245 3,502,631,963 ===== SIDA 348 ===== Nordea Annual Report 2025 347 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.1 Equity, cont. Number of outstanding Nordea shares 2025 2024 Number of outstanding Nordea shares at 1 January 3,485,474,444 3,519,189,319 Repurchased own shares -68,888,643 -33,984,078 Shares granted in remuneration programmes for Nordea Bank Abp’s management 1,214,870 1,273,349 Trading portfolio and Nordea Bank Abp’s shares within portfolio schemes in Denmark 2,052,998 -1,004,146 Number of outstanding Nordea shares at 31 December 3,419,853,669 3,485,474,444 Number of own shares 31 Dec 2025 31 Dec 2024 Holdings of own shares related to treasury shares, trading portfolio and Nordea Bank Abp’s shares within portfolio schemes in Denmark1 13,987,576 17,130,649 – o f which treasury shares for remuneration purposes 10,299,096 11,513,966 1) T otal acquisition price for holdings of own shares at 31 December 2025 was EUR 64.4m (EUR 77.5m). Own shares bought and sold as part of market-making activities Nordea Bank Abp has bought and sold its own shares as part of its normal trading and market-making activities. The trades are specified in the table below. The 2025 Annual General Meeting resolved that Nordea Bank Abp, before the end of the next Annual General Meeting, may repurchase its own shares in the ordinary course of its securities trading business. The number of own shares to be repurchased may not exceed 175,000,000 shares. The 2025 Annual General Meeting resolved that Nordea Bank Abp, before the end of the next Annual General Meeting, may transfer own shares in the ordinary course of its securities trading business. The number of own shares to be transferred may not exceed 175,000,000 shares. Acquisitions and sales of own shares during the year 2025 Acquisitions1 Sales1 Quantity Average price, EUR Amount, EUR 000 Quantity Average price, EUR Amount, EUR 000 January 5,240,802 11.39 -59,692 -6,120,130 11.44 70,018 February 6,979,702 12.30 -85,868 -6,340,975 12.35 78,306 March 9,386,440 12.56 -117,915 -9,810,083 12.39 121,535 April 7,518,190 10.99 -82,635 -8,101,941 11.07 89,671 May 7,528,304 12.62 -95,017 -8,110,375 12.67 102,722 June 7,020,282 12.52 -87,890 -7,314,026 12.57 91,934 July 4,757,351 12.58 -59,846 -4,332,154 12.57 54,469 August 4,546,800 13.35 -60,685 -4,448,297 13.39 59,572 September 8,975,365 13.70 -123,003 -8,989,125 13.72 123,371 October 6,318,010 14.49 -91,578 -6,403,834 14.45 92,531 November 7,330,169 14.89 -109,172 -7,344,518 14.93 109,652 December 26,545,491 15.55 -412,740 -26,884,446 15.61 419,705 Total 102,146,906 -1,386,040 -104,199,904 1,413,486 2024 Acquisitions1 Sales1 Quantity Average price, EUR Amount, EUR 000 Quantity Average price, EUR Amount, EUR 000 January 5,553,761 11.34 -62,971 -5,889,972 11.30 66,535 February 6,532,537 10.90 -71,187 -6,971,391 10.95 76,356 March 6,397,549 10.93 -69,928 -5,435,594 10.87 59,076 April 7,795,627 10.85 -84,601 -7,327,819 10.85 79,482 May 7,300,345 11.30 -82,464 -7,164,347 11.30 80,947 June 4,952,268 11.28 -55,866 -5,073,284 11.30 57,337 July 6,338,147 10.83 -68,624 -6,521,354 10.87 70,883 August 10,226,971 10.43 -106,671 -10,395,093 10.45 108,647 September 4,507,465 10.55 -47,552 -4,043,594 10.56 42,707 October 7,138,308 10.62 -75,842 -7,244,108 10.64 77,053 November 4,536,445 10.78 -48,909 -5,090,453 10.78 54,870 December 6,989,023 10.64 -74,361 -6,107,291 10.64 64,970 Total 78,268,446 -848,976 -77,264,300 838,863 1) Excluding Nordea shares related to securities lending. P9.2 A dditional disclosures on the cash flow statement Accounting policies The cash flow statement shows inflows and out- flows of cash and cash equivalents during the year for total operations. Nordea Bank Abp’s cash flow statement has been prepared in accordance with the indirect method, whereby operating profit is adjusted for effects of non-cash transactions such as depreciation and loan losses. Cash flows are classi- fied by operating, investing and financing activities. Operating activities Cash flows from operating activities, which are the princi- pal revenue-producing activities, are mainly derived from profits during the year adjusted for items not included in cash flows and income taxes paid. Adjustment for items not included in cash flows includes: EURm 2025 2024 Depreciation, amortisation and impairment charges of tangible and intangible assets 420 387 Impairment of shares and interests in group undertakings and associated undertakings 8 -2 Loan losses 39 102 Unrealised gains/losses 2,510 130 Capital gains/losses (net) -55 6 Change in accruals and provisions -298 544 Translation differences -333 299 Change in fair value of hedged items, assets/liabilities (net) 174 645 Other 44 -129 Total 2,509 1,982 Operating assets and liabilities consist of assets and liabili- ties that are part of normal business activities, such as loans, deposits and debt securities in issue. Changes in derivatives are reported on a net basis. ===== SIDA 349 ===== Nordea Annual Report 2025 348 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.2 A dditional disclosures on the cash flow statement, cont. Cash flows from operating activities include interest pay- ments received and interest expenses paid in the following amounts: EURm 2025 2024 Interest payments received 12,331 15,387 Interest expenses paid -7,206 -9,900 Investing activities Investing activities include investments in and capital con- tributions to group undertakings as well as acquisition and disposal of non-current assets such as property and equip- ment and intangible and financial assets. Financing activities Financing activities are activities that result in changes in equity and subordinated liabilities such as new issues of shares, dividends and issued/amortised subordinated liabilities. Cash and cash equivalents The following items are included in “Cash and cash equivalents”: EURm 31 Dec 2025 31 Dec 2024 Cash and balances with central banks 36,338 44,862 Loans to central banks payable on demand 4 4 Loans to credit institutions payable on demand 401 349 Total 36,743 45,215 For the definition of cash and balances with central banks, see Note P3.6 “Cash and balances with central banks”. Loans to central banks and credit institutions payable on demand include liquid assets not represented by bonds or other interest-bearing securities. P9.3 Maturity analysis Accounting policy The following table presents the remaining contrac- tual maturities of the Nordea Bank Abp’s financial assets and liabilities. On-demand deposits are reported in the bucket “Under 3 months”. Loans where the lender can demand repayment upon request are reported according to their earliest pos- sible contractual maturity date when repayment can be demanded. For derivatives, the cash inflows and outflows are disclosed for both derivative assets and derivative liabilities as derivatives are managed on a net basis. For further information about remaining maturity, see also Note P10 “Risk and liquidity management”. Maturity analysis 31 Dec 2025, EURm Under 3 months 3–12 months 1–5 years Over 5 years Total Assets Cash and balances with central banks 36,338 – – – 36,338 Loans to credit institutions 13,179 28,067 45,875 326 87,447 Loans to the public 67,286 21,666 56,167 23,348 168,467 Interest-bearing securities1 1,761 13,818 62,614 10,676 88,869 Derivatives 130 208 17,717 186 18,241 Other assets 18,419 53 4,558 114 23,144 Total 137,113 63,812 186,931 34,650 422,506 Liabilities Deposits by credit institutions and central banks 38,508 2,169 1,350 – 42,027 Deposits and borrowings from the public 221,822 5,189 17,580 5,711 250,302 Debt securities in issue 15,024 32,898 25,469 5,600 78,991 Subordinated liabilities 921 – 5,276 2,613 8,810 Derivatives 192 276 17,995 394 18,857 Other liabilities 2,947 737 6,217 1,410 11,311 Total 279,414 41,269 73,887 15,728 410,298 31 Dec 2024, EURm Under 3 months 3–12 months 1–5 years Over 5 years Total Assets Cash and balances with central banks 44,862 – – – 44,862 Loans to credit institutions 10,272 24,684 39 834 349 75,139 Loans to the public 60,417 20,116 48,359 23,085 151,977 Interest-bearing securities1 8,394 10,366 56,399 5,820 80,979 Derivatives 4,133 3,823 6,525 11,573 26,054 Other assets 5,748 162 13,525 5,023 24,458 Total 133,826 59,151 164,642 45,850 403,469 Liabilities Deposits by credit institutions and central banks 34,165 2,043 98 0 36,306 Deposits and borrowings from the public 221,424 5,142 8,308 5,232 240,106 Debt securities in issue 20,197 27,949 17,594 4,387 70,127 Subordinated liabilities – 92 4,894 2,424 7,410 Derivatives 3,264 793 10,265 11,605 25,927 Other liabilities 3,136 558 5,946 869 10,509 Total 282,186 36,577 47,105 24,517 390,385 1) Incl uding “Debt securities eligible for refinancing with central banks” of EUR 78,724m (EUR 71,349m). ===== SIDA 350 ===== Nordea Annual Report 2025 349 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.4 Ass ets and liabilities in EUR and other currencies Accounting policies The following table presents the assets and liabili- ties of Nordea Bank Abp broken down by balances in EUR and in foreign currencies. A balance in for- eign currency is defined as a balance which should be translated into EUR when preparing financial statements. More information on translation of assets and liabilities can be found in Note P1 “Accounting policies“. 31 Dec 2025 31 Dec 2024 EURm Foreign currency Total EURm Foreign currency Total Assets Cash and balances with central banks 18,856 17,482 36,338 22,365 22,497 44,862 Loans to credit institutions 20,119 67,328 87,447 19,832 55,307 75,139 Loans to the public 66,114 102,353 168,467 57,311 94,666 151,977 Interest-bearing securities1 46,253 42,616 88,869 38,892 42,087 80,979 Derivatives 17,237 1,004 18,241 24,677 1,377 26,054 Other assets 35,277 7,550 42,827 35,989 7,465 43,454 Total 203,856 238,333 442,189 199,066 223,399 422,465 Liabilities Deposits by credit institutions and central banks 28,385 13,642 42,027 23,969 12,337 36,306 Deposits and borrowings from the public 80,482 169,820 250,302 70,636 169,470 240,106 Debt securities in issue 64,573 14,418 78,991 58,990 11,137 70,127 Derivatives 17,890 967 18,857 24,812 1,115 25,927 Other liabilities 17,768 6,172 23,940 16,758 5,115 21,873 Total 209,098 205,019 414,117 195,165 199,174 394,339 1) Incl uding “Debt securities eligible for refinancing with central banks” of EUR 78,724m (EUR 71,349m). P9.5 Other assets Accounting policies Other assets are assets that do not qualify for any of the other line items covering assets. Under the accrual basis of accounting, accrued income is income that is not yet invoiced and prepaid expenses are future expenses that are paid in advance. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet”, Note P3.3 “Classification and measurement” and Note P3.4 “Fair value”. This note includes the specifications for the balance sheet line items “Other assets” and “Prepaid expenses and accrued income”. Other assets EURm 31 Dec 2025 31 Dec 2024 Cash items in process of collection 115 153 Claims on securities settlement proceeds 1,348 1,111 Cash/margin receivables related to derivatives 3,194 5,118 Other 704 514 Total 5,361 6,896 Prepaid expenses and accrued income EURm 31 Dec 2025 31 Dec 2024 Accrued interest income 1 2 Other accrued income 171 555 Prepaid expenses 427 430 Total 599 987 P9.6 Other liabilities Accounting policies Other liabilities are liabilities that do not qualify for any of the other line items covering liabilities. Under the accrual basis of accounting, accrued expenses are expenses incurred but for which an invoice has not yet been received and prepaid income is future income that is received in advance. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet”, Note P3.3 “Classification and measurement” and Note P3.4 “Fair value”. This note includes the specifications for the balance sheet line items “Other liabilities” and “Accrued expenses and prepaid income”. Other liabilities EURm 31 Dec 2025 31 Dec 2024 Liabilities on securities settlement proceeds 1,060 954 Sold, not held, securities 5,093 3,250 Cash items in process of collection 2,035 2,423 Accounts payable 76 91 Cash/margin payables related to derivatives 3,535 4,220 Other 1,755 1,721 Total 13,554 12,659 Accrued expenses and prepaid income EURm 31 Dec 2025 31 Dec 2024 Accrued interest expenses 16 10 Other accrued expenses 803 1,193 Prepaid income 63 54 Total 882 1,257 ===== SIDA 351 ===== Nordea Annual Report 2025 350 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.7 Cus tomer assets under management Accounting policies Customer assets under management are assets that are held and managed on behalf of customers but are not r ecognised on Nordea Bank Abp’s balance sheet. EURm 31 Dec 2025 31 Dec 2024 Asset management 156,225 134,660 Custody assets 251,491 238,352 Total 407,716 373,012 P9.8 Related party transactions Accounting policies Related party A related party is a person or entity that is related to Nordea Bank Abp. Related parties are grouped in the following categories: • Shareholders with significant influence • Group undertakings • Associated undertakings and joint ventures • Key management personnel • Other related parties. Shareholders with significant influence Shareholders with significant influence are share- holders that have the power to participate in the financial and operating policy decisions of Nordea Bank Abp but do not control those policies. Group undertakings Group undertakings are defined as the subsidiaries of the parent company, Nordea Bank Abp. Further information on the undertakings owned by Nordea Bank Abp is found in Note P8.1 “Investments in group undertakings”. Transactions between Nordea Bank Abp and its subsidiaries are performed according to the arm’s length principle in conformity with OECD require- ments on transfer pricing. Associated undertakings and joint ventures For the definition of associated undertakings and joint ventures, see Note P8.2 “Investments in associ- ated undertakings and joint ventures”. Key management personnel Key management personnel are the persons having authority and responsibility for planning, directing and controlling the activities in Nordea Bank Abp, directly or indirectly, including any director of the entity. Other related parties Other related parties comprise subsidiaries of share- holders with significant influence, close family mem- bers of key management personnel and companies controlled or jointly controlled by key management personnel or by close family members of key man- agement personnel. Related party transactions A related party transaction is a transfer of resources, services or obligations between Nordea Bank Abp and a related party, regardless of whether a price is charged. See also accounting policies in Note P7.4 “Key management personnel remuneration”. All transactions with related parties are made on the same criteria and terms as those of comparable transactions with external parties of similar standing, apart from loans granted to employees as well as certain other commit- ments to key management personnel, see Note P7.4 “Key management personnel remuneration” and Note P6.1 “Contingent liabilities”. In Nordea Bank Abp key management personnel includes the following positions: • Board of Directors • Chief Executive Officer (CEO) • Deputy Managing Director • Group Leadership Team. Loans to key management personnel amounted to EUR 2.9m (EUR 1.0m) and interest income on these loans amounted to EUR 0.0m (EUR 0.0m). Deposits from key management personnel amounted to EUR 1.2m (EUR 5.7m) and interest on these deposits amounted to EUR -0.0m (EUR -0.1m). Loan commitments to key manage- ment personnel amounted to EUR 4.0m (EUR 0.0m). For key management personnel employed by Nordea Bank Abp the same credit terms apply as for other employees. In Finland, the employee interest rate for mort- gage loans corresponds to Nordea Bank Abp’s funding cost with a margin of 30bp and for other loans the employee interest rate corresponds to Nordea Bank Abp’s funding cost with a margin of 45–500bp. In Denmark, the employee interest rate for loans is variable and between 2.50–4.45% depending of the type of mortgage. In Norway, the variable interest rate on loans to employees is 4.44%. Mortgage loans with fixed interest rates are offered with the same rates as mortgage loans to Premium cus- tomers. In Sweden, loans approved with employee condi- tions are a maximum at SEK 3m for any type of loan and maximum amount at SEK 0.4m for car loans. The interest rate for these loans is 215bp lower than the corresponding interest rate for external customers. For interest on loans above SEK 3m and SEK 0.4m respectively, the employees receive the same maximal discount as Nordea’s best exter- nal customers. Loans to family members of key management person- nel who do not live in the same household as key manage- ment personnel are granted on normal market terms, as are loans to key management personnel who are not employed by Nordea Bank Abp. For more information about transactions with key management personnel, see Note P7.4 “Key management personnel remuneration”. The loan quality for key management personnel and their family members is good with no significant increase in credit risk. Loan loss provisions for key management personnel are included in the collectively assessed allow- ances shown in Note P2.10 “Net loan losses”. Nordea Bank Abp has not pledged any assets on behalf of key management personnel or their close family members. For information about remuneration to key manage- ment personnel, see Note P7.4 “Key management person- nel remuneration”. ===== SIDA 352 ===== Nordea Annual Report 2025 351 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.8 Related party transactions, cont. The information below is presented from Nordea Bank Abp’s perspective, meaning that the information shows the effect of related party transactions on Nordea Bank Abp’s figures. Related party transactions EURm 31 Dec 2025 31 Dec 2024 Group undertakings Associated undertakings and joint ventures Other related parties2 Group undertakings Associated undertakings and joint ventures Other related parties2 Assets Debt securities eligible for refinancing with central banks 11,555 – – 11,180 – – Loans to credit institutions 77,313 – – 68,788 – – Loans to the public 3,395 33 0 2,600 25 0 Interest-bearing securities 6,621 – – 6,287 – – Derivatives 626 – – 849 – – Other assets 326 – – 290 – – Prepaid expenses and accrued income 229 – – 260 – – Total assets 100,065 33 0 90,254 25 0 Liabilities Deposits by credit institutions and central banks 7,897 0 – 7,673 0 – Deposits and borrowings from the public 3,422 0 38 3,354 1 11 Debt securities in issue 251 – – 202 – – Derivatives 825 0 – 943 3 – Other liabilities 1,194 0 0 533 0 0 Accrued expenses and deferred income 30 – – 13 – – Provisions – 0 – – 0 – Total liabilities 13,619 0 38 12,718 4 11 Off-balance sheet items1 164,963 0 5 159,476 9 5 Related party transactions, cont. EURm 2025 2024 Group undertakings Associated undertakings and joint ventures Other related parties2 Group undertakings Associated undertakings and joint ventures Other related parties2 Income statement Interest income 2,882 0 0 3,259 0 0 Interest expense -129 0 0 280 0 0 Net fee and commission income 499 0 0 466 0 0 Total net result from items at fair value3 -50 0 0 -117 -1 0 Other operating income 683 – 0 745 – 0 Total operating expenses -98 0 – -87 0 – Profit before loan losses 3,787 0 0 4,546 -1 0 1) Including nominal values of derivatives. 2) Shareholders with significant influence (including their subsidiaries), close family members of key management personnel at Nordea Bank Abp and companies controlled or jointly controlled by key management personnel or by close family members of key management personnel at Nordea Bank Abp are considered to be related parties to Nordea Bank Abp. Other related parties also include Nordea Bank Abp’s pension foundations. 3) Including the income statement line items “Net result from securities at fair value through profit or loss” and “Net result from securities at fair value through fair value reserve”. ===== SIDA 353 ===== Nordea Annual Report 2025 352 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity management 1. Risk governance ..................................................................................352 2. Credit risk ................................................................................................352 3. Counterparty credit risk ..................................................................367 4. Market risk ..............................................................................................367 5. Operational risk ....................................................................................367 6. Compliance risk ....................................................................................367 7. Liquidity risk ..........................................................................................367 1. Risk governance Maintaining organisational risk awareness is an integral part of Nordea Bank Abp’s business strategy. Nordea Bank Abp has defined clear risk and liquidity management frameworks, including policies and instructions covering all risk exposures. For more information on Nordea Bank Abp’s risk and liquidity management, see section 1 “Risk governance” in the Group’s Note G11. Internal Control Framework See section 1.1 “Internal Control Framework” in the Group’s Note G11. Decision-making bodies for risk, liquidity and capital management See section 1.2 “Decision-making bodies for risk, liquidity and capital management” in the Group’s Note G11. Governance of risk management and compliance See section 1.3 “Governance of risk management and compliance” in the Group’s Note G11. Disclosure requirements of the Capital Requirements Regulation – Capital and Risk Management Report 2025 Additional information on risk and capital management is presented in the Capital and Risk Management Report 2025, in accordance with the Capital Requirements Regulation. 2. Credit risk Credits granted within Nordea Bank Abp must conform to the common principles established for Nordea. Nordea Bank Abp strives to have a well-diversified credit portfolio that is adapted to the structure of its home markets and economies. Nordea Bank Abp’s loan portfolio is split by type of exposure class (corporate and retail) or by sector, then further broken down by segment, industry and geo- graphy and reported monthly, quarterly and annually. For more information on the key principles for managing Nordea Bank Abp’s risk exposures, see the Group’s Note G11, section 2 “Credit risk”. For credit risk management, credit risk definition and identification as well as credit risk mitigation, see sections 2 “Credit risk”, 2.2 “Credit risk definition and identification” and 2.3 “Credit risk mitigation” in the Group’s Note G11. Exposures, allowances and provisions Including on- and off-balance sheet exposures, the total credit risk exposure at year end was EUR 522bn (EUR 488bn). Credit risk is measured, monitored and segmented in different ways. On-balance sheet lending consists of amor- tised cost lending and fair value lending and constitutes the major part of the credit portfolio. Amortised cost lending is the basis for impaired loans, allowances and loan losses. Credit risk in lending is measured and presented as the principal amount of on-balance sheet claims, i.e. loans to credit institutions and to the public, and off-balance sheet potential claims on customers and counterparties, net after allowances. Credit risk exposure also includes the risk related to derivative contracts and securities financing. Nordea Bank Abp’s loans to the public increased by 10.9% to EUR 168bn during 2025 (EUR 152bn). The corporate portfolio increased approximately 14.2%, while the house- hold portfolio decreased by 0.8%. The overall credit qual- ity is solid with strongly rated customers, and the macroe- conomic outlook has improved during the year. Of the lending to the public portfolio, corporate customers accounted for 63.5% (63.7%), reverse repurchase agree- ments for 21.4% (18.8%), household customers for 14.1% (15.6%) and the public sector for 1.0% (1.8%). Loans to central banks and credit institutions increased to EUR 87bn at the end of 2025 (EUR 75bn). Credit-impaired loans at amortised cost increased to EUR 1,957m (EUR 1,889m). The increase was mainly related to the corporate portfolio, which increased by 4% and EUR 62m to EUR 1,447m. The largest increase is in Consumer discretionary and services, increasing by EUR 136m, driven by the Media and entertainment and Retail trade industries and secondly in Commercial and professional services in the Industrials industry group, which increased from EUR 29m to EUR 89m. This is partly offset by smaller reductions in Financial institutions, Maritime and Real estate industry groups. Net loan losses for 2025 amounted to EUR 23m (EUR 83m), corresponding to an annual net loan loss ratio of 2bp (7bp). Net loan losses consisted of EUR 9m in the corporate portfolio with some concentration in the industrials and consumer discretionary portfolios. The household portfolio had net loan losses of EUR 14m. At the end of the year, management judgement allowances amounted to EUR 179m (EUR 300m). The management judgement is intended to cover excess losses from macroeconomic shocks and uncertain- ties that are regarded as extraordinary in relation to a nor- mal contraction in the economic cycle and are therefore not adequately captured by the existing IFRS 9 ECL mod- elling and known IFRS 9 model and data issues will be captured in later model updates. The uncertainties are mainly connected to geopolitical and macro-economic conditions. The level at the end of 2025 compared with the end of 2024 decreased by EUR 121m reflecting a continued decline in the financial and economic risks influencing loan losses, driven by decreased uncertainty and the per- sistence of strong credit quality. Total allowances for 2025 amounted to EUR 1,188m (1,395m). Loan allowances for 2025 amounted to EUR 998m (1,179m). This was driven by reduced allowances in all stages. Of loan allowances to the public, stage 1 accounted for EUR 59m (94m), stage 2 for EUR 184m (EUR 240m) and stage 3 for EUR 753m (EUR 840). The coverage ratio was 0.03% for stage 1 (0.05%), 2.9% for stage 2 (3.1%) and 38% for stage 3 (44%). Stage 2 loans at amortised cost decreased to EUR 6,467m (EUR 7,658m). The decrease is mainly due to improved economic environment and positive portfolio migration particularly in the second half of 2025, affecting both the household and corporate portfolio. Stage 2 cover- age ratio decreased to 2.9% (3.1%). Forbearance is eased terms or restructuring due to the borrower experiencing or about to experience financial dif- ficulties. The intention of granting forbearance for a limited time period is to help the customer return to a sustainable financial situation ensuring full repayment of the outstand- ing debt. Examples of eased terms are changes in amorti- sation profile, repayment schedule, customer margin as well as easing of covenants. Forbearance is undertaken on a selective and individual basis for all customers and is fol- lowed by impairment testing. Forborne loans decreased by EUR 214m to EUR 2,046m during the year, of which 87% related to the corporate portfolios and 13% related to the household portfolios. The forbearance coverage ratio increased from 18% to 20%. ===== SIDA 354 ===== Nordea Annual Report 2025 353 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity management , cont. Maximum exposure to credit risk EURm Note 31 Dec 2025 31 Dec 2024 Amortised cost and fair value through fair value reserve Financial assets at fair value through profit or loss Amortised cost and fair value through fair value reserve Financial assets at fair value through profit or loss Loans to credit institutions P3.3, P3.7 84,209 3,238 73,163 1,976 Loans to the public P3.3, P3.7 132,343 36,124 123,348 28,629 Interest-bearing securities1 P3.3, P3.8 62,697 26,172 54,865 26,114 Derivatives P3.3, P3.10 – 18,241 – 26,054 Off-balance sheet items P6.1, P6.2 159,019 – 153,362 – Total 438,268 83,775 404,738 82,773 1) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. Collateral distribution 31 Dec 2025 31 Dec 2024 Financial collateral 3.1% 2.3% Receivables 1.3% 1.3% Residential real estate 39.8% 32.3% Commercial real estate 42.2% 47.2% Other physical collateral 13.6% 16.9% Total 100.0% 100.0% Allowances for credit risk EURm Note 31 Dec 2025 31 Dec 2024 Loans to credit institutions P3.7 2 5 Loans to the public P3.7 996 1,174 Interest-bearing securities measured at fair value through fair value reserve or amortised cost 1 P3.8 2 2 Off-balance sheet items P5 188 215 Total 1,188 1,396 1) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. Assets taken over for protection of claims 1 EURm 31 Dec 2025 31 Dec 2024 Current assets, carrying amount: Shares and other participations 2 2 Total 2 2 1) In accordance with Nordea Bank Abp’s policy for taking over assets for protec- tion of claims, which is in compliance with the local banking business acts wher- ever Nordea Bank Abp is located. Assets used as collateral for the loan are gen- erally taken over when the customer is not able to fulfil its obligations towards Nordea Bank Abp. The assets taken over are disposed at the latest when full recovery is reached. Loan-to-value 1 Retail mortgage exposure 31 Dec 2025 31 Dec 2024 EURbn % EURbn % <50% 11.8 84.5 11.8 83.9 50–70% 1.5 10.6 1.5 11.0 71–80% 0.3 2.4 0.4 2.5 81–90% 0.2 1.2 0.2 1.2 >90% 0.2 1.3 0.2 1.3 Total 14.0 100.0 14.0 100.0 1) The amount and per sentages in the table includes the relevant part of a loan, not the total loan. Forbearance EURm 31 Dec 2025 31 Dec 2024 Forborne loans 2,046 2,259 - of which defaulted 976 964 Allowances for individually assessed impaired and forborne loans 407 417 - of which defaulted 374 374 Key ratios 31 Dec 2025 31 Dec 2024 Forbearance ratio1 0.9% 1.1% Forbearance coverage ratio2 19.9% 18.5% - of which defaulted 38.3% 38.8% 1) Forborne loans/Loans held at amortised cost before allowances. 2) Individual allo wances on forborne loans/Forborne loans. Loans to corporate customers, by size of loans Size in EURm 31 Dec 2025 31 Dec 2024 Loans EURm % Loans EURm % 0–10 24,922 17 26,085 21 11–50 38,099 27 35,001 28 51–100 24,773 17 23,924 19 101–250 37,409 26 26,819 21 251–500 11,377 8 7,531 6 501– 6,564 5 5,990 5 Total 143,144 100 125,350 100 Credit-impaired loans and ratios EURm 2025 2024 Gross credit-impaired loans, amortised cost, EURm 1,957 1,889 - of which servicing 913 877 - of which non-servicing 1,044 1,012 Impairment ratio (stage 3), gross, bp 90 96 Impairment ratio (stage 3), net, bp 55 53 Allowances in relation to loans (stages 1 and 2), bp 11 17 Total allowance ratio (stages 1, 2 and 3), bp 46 60 Allowances in relation to credit-impaired loans (stage 3), % 38 44 Past due loans EURm 31 Dec 2025 31 Dec 2024 Corporate customers Household customers Corporate customers Household customers 6–30 days 129 176 98 180 31–60 days 44 49 27 54 61–90 days 15 23 18 30 >90 days 215 244 352 266 Total 403 492 495 531 Past due (incl. impaired) loans divided by loans to the public aft er allowances, % 0.3 2.1 0.4 2.2 Net loan losses and loan loss ratios 2025 2024 Net loan losses, EURm -23 -83 Net loan loss ratio, amortised cost, bp 2 7 - of which stage 3 11 11 - of which stages 1 and 2 -9 -4 Net loan loss ratio, including fair value gains, bp1 1 5 Net loan loss ratio, Personal Banking, bp1 8 1 Net loan loss ratio, Business Banking, bp1 1 20 Net loan loss ratio, Large Corporates & Institutions, bp1 1 -1 1) Net loan losses including loan losses from loans at fair value recognised through fair value reserve divided by total lending at amortised cost and at fair value, bp. ===== SIDA 355 ===== Nordea Annual Report 2025 354 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost and fair value 31 Dec 2025, EURm Denmark Finland Norway Sweden1 Other Total Financial institutions 4,255 3,590 828 12,262 1,017 21,952 Agriculture 520 262 3,066 89 5 3,942 Cr ops, plantations and hunting 269 126 13 11 5 424 Animal husbandr y 214 132 21 4 – 371 Fishing and aquacul ture 37 4 3,032 74 0 3,147 Natural resources 37 693 400 490 77 1,697 P aper and forest products 32 372 157 384 77 1,022 Mining and suppor ting activities 4 314 10 105 – 433 Oil , gas and offshore 1 7 233 1 – 242 Consumer staples 2,258 717 812 1,813 48 5,648 F ood processing and beverages 282 207 533 615 0 1,637 Hous ehold and personal products 85 68 121 437 1 712 Healthcare 1,891 442 158 761 47 3,299 Consumer discretionary and services 801 1,948 2,201 4,070 23 9,043 C onsumer durables 86 191 204 1,814 22 2,317 Media and en tertainment 186 277 87 562 0 1,112 R etail trade 387 1,186 771 1,281 1 3,626 Air tr ansportation 90 1 28 31 0 150 A ccommodation and leisure 51 207 575 208 – 1,041 T elecommunication services 1 86 536 174 – 797 Industrials 4,545 4,210 6,986 7,982 202 23,925 Materials 784 546 191 458 38 2,017 Capit al goods 514 1,000 190 1,558 41 3,303 C ommercial and professional services 870 693 1,483 1,621 95 4,762 Construction 371 638 3,063 1,185 0 5,257 Whol esale trade 1,334 592 750 1,899 7 4,582 L and transportation 323 238 53 472 17 1,103 IT services 349 503 1,256 789 4 2,901 Loans to the public measured at amortised cost and fair value, cont. 31 Dec 2025, EURm Denmark Finland Norway Sweden1 Other Total Maritime 257 137 3,958 54 81 4,487 Shipbuilding 0 1 26 0 – 27 Shipping 0 57 3,819 37 81 3,994 Maritime s ervices 257 79 113 17 – 466 Utilities and public service 1,100 2,919 1,774 770 1 6,564 Utilitie s distribution 914 1,130 1,025 512 0 3,581 P ower production 153 1,541 564 159 1 2,418 Public s ervices 33 248 185 99 0 565 Real estate 898 7,813 9,271 9,692 – 27,674 C ommercial real estate 748 4,798 7,980 9,055 – 22,581 R esidential real estate companies 12 1,037 571 520 – 2,140 Tenant-owned associations 138 1,978 720 117 – 2,953 Other industries 190 0 0 4 1,894 2,088 Total corporate 14,861 22,289 29,296 37,226 3,348 107,020 Housing loans 6,296 2,985 3,333 0 – 12,614 Collateralised lending 2,935 3,693 342 746 – 7,716 Non-collateralised lending 639 479 322 1,904 – 3,344 Household 9,870 7,157 3,997 2,650 – 23,674 Public sector 623 545 67 412 3 1,650 Reverse repurchase agreements – 36,123 – – – 36,123 Loans to the public by country 25,354 66,114 33,360 40,288 3,351 168,467 o f which loans at fair value – 36,123 – – – 36,123 ===== SIDA 356 ===== Nordea Annual Report 2025 355 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost and fair value 31 Dec 2024, EURm Denmark Finland Norway Sweden1 Other Total Financial institutions 3,562 3,211 818 9,338 980 17,909 Agriculture 553 294 2,648 46 4 3,545 Cr ops, plantations and hunting 307 143 19 9 4 482 Animal husbandr y 217 147 22 5 – 391 Fishing and aquacul ture 29 4 2,607 32 – 2,672 Natural resources 51 734 539 293 91 1,708 P aper and forest products 42 472 181 275 91 1,061 Mining and suppor ting activities 6 254 10 18 – 288 Oil , gas and offshore 3 8 348 0 – 359 Consumer staples 2,804 696 991 1,846 55 6,392 F ood processing and beverages 165 229 713 490 8 1,605 Hous ehold and personal products 89 66 121 406 2 684 Healthcare 2,550 401 157 950 45 4,103 Consumer discretionary and services 902 1,865 2,352 4,040 24 9,183 C onsumer durables 102 219 233 1,814 23 2,391 Media and en tertainment 257 291 103 608 0 1,259 R etail trade 358 1,045 888 1,155 0 3,446 Air tr ansportation 123 1 16 28 – 168 A ccommodation and leisure 59 241 603 206 – 1,109 T elecommunication services 3 68 509 229 1 810 Industrials 4,015 3,980 6,080 6,570 342 20,987 Materials 594 414 191 517 50 1,766 Capit al goods 517 914 146 1,084 49 2,710 C ommercial and professional services 719 464 1,398 1,058 203 3,842 Construction 417 790 2,746 1,057 – 5,010 Whol esale trade 1,427 615 726 1,883 23 4,674 L and transportation 69 219 126 347 15 776 IT services 272 564 747 624 2 2,209 Loans to the public measured at amortised cost and fair value, cont. 31 Dec 2024, EURm Denmark Finland Norway Sweden1 Other Total Maritime 137 146 4,158 55 155 4,651 Shipbuilding – 0 116 0 – 116 Shipping 30 56 3,883 34 155 4,158 Maritime s ervices 107 90 159 21 0 377 Utilities and public service 726 2,737 1,763 664 0 5,890 Utilitie s distribution 578 1,170 999 372 – 3,119 P ower production 95 1,322 595 201 0 2,213 Public s ervices 53 245 169 91 0 558 Real estate 886 7,306 8,850 7,513 – 24,555 C ommercial real estate 681 4,423 7,577 6,954 – 19,635 R esidential real estate companies 56 857 462 400 – 1,775 Tenant-owned associations 149 2,026 811 159 – 3,145 Other industries 107 0 – 1 1,792 1,900 Total corporate 13,743 20,969 28,199 30,366 3,443 96,720 Housing loans 6,101 3,067 3,298 0 – 12,466 Collateralised lending 3,282 3,737 301 798 – 8,118 Non-collateralised lending 685 484 351 1,761 – 3,281 Household 10,068 7,288 3,950 2,559 – 23,865 Public sector 676 425 17 1,642 3 2,763 Reverse repurchase agreements – 28,629 – – – 28,629 Loans to the public by country 24,487 57,311 32,166 34,567 3,446 151,977 o f which loans at fair value – 28,629 – – – 28,629 ===== SIDA 357 ===== Nordea Annual Report 2025 356 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost, broken down by sector and industry 31 Dec 2025, EURm Gross Allowances Net Net loan loss1Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Financial institutions 21,654 309 17 6 10 12 21,952 21 Agriculture 3,779 139 57 4 5 24 3,942 11 Cr ops, plantations and hunting 352 60 26 0 4 10 424 3 Animal husbandr y 311 46 29 0 1 14 371 9 Fishing and aquacul ture 3,116 33 2 4 0 0 3,147 -1 Natural resources 1,640 52 18 1 2 10 1,697 1 P aper and forest products 973 43 18 1 1 10 1,022 -2 Mining and suppor ting activities 424 9 0 0 0 0 433 0 Oil , gas and offshore 243 0 0 0 1 0 242 3 Consumer staples 5,418 227 21 3 8 7 5,648 4 F ood processing and beverages 1,532 104 11 1 5 4 1,637 1 Hous ehold and personal products 701 10 3 0 1 1 712 1 Healthcare 3,185 113 7 2 2 2 3,299 2 Consumer discretionary and services 8,071 671 560 3 22 234 9,043 -11 C onsumer durables 2,046 236 79 1 4 39 2,317 4 Media and en tertainment 871 117 152 0 5 23 1,112 6 R etail trade 3,255 244 286 2 11 146 3,626 -21 Air tr ansportation 150 0 1 0 0 1 150 1 A ccommodation and leisure 954 72 42 0 2 25 1,041 -3 T elecommunication services 795 2 0 0 0 0 797 2 Industrials 21,838 1,877 547 14 89 234 23,925 -33 Materials 1,756 227 60 1 12 13 2,017 -3 Capit al goods 3,051 250 38 2 18 16 3,303 -2 C ommercial and professional services 4,442 288 89 3 13 41 4,762 -20 Construction 4,716 500 136 4 13 78 5,257 11 Whol esale trade 4,145 393 125 1 28 52 4,582 -11 L and transportation 1,053 40 25 0 1 14 1,103 -1 IT services 2,675 179 74 3 4 20 2,901 -7 Loans to the public measured at amortised cost, broken down by sector and industry, cont. 31 Dec 2025, EURm Gross Allowances Net Net loan loss1Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Maritime 4,461 29 0 2 1 0 4,487 5 Shipbuilding 27 0 0 0 0 0 27 2 Shipping 3,980 16 0 2 0 0 3,994 4 Maritime s ervices 454 13 0 0 1 0 466 -1 Utilities and public service 6,406 105 87 3 2 29 6,564 -3 Utilitie s distribution 3,483 45 83 2 1 27 3,581 -6 P ower production 2,413 5 1 1 0 0 2,418 3 Public s ervices 510 55 3 0 1 2 565 0 Real estate 26,344 1,273 140 10 9 64 27,674 -3 Other industries 2,088 0 0 0 0 0 2,088 -1 Total corporate 101,699 4,682 1,447 46 148 614 107,020 -9 Housing loans 11,793 689 186 2 9 43 12,614 -16 Collateralised lending 7,003 632 175 5 11 78 7,716 4 Non-collateralised lending 2,818 438 127 6 16 17 3,344 -2 Household 21,614 1,759 488 13 36 138 23,674 -14 Public sector 1,621 8 22 0 0 1 1,650 0 Loans to the public 124,934 6,449 1,957 59 184 753 132,343 -23 Loans to credit institutions 84,193 18 0 2 0 0 84,209 – Total 209,127 6,467 1,957 61 184 753 216,552 -23 1) The t able shows net loan losses related to on- and off-balance sheet exposures for the full year 2025. ===== SIDA 358 ===== Nordea Annual Report 2025 357 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost, broken down by sector and industry 31 Dec 2024, EURm Gross Allowances Net Net loan loss1Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Financial institutions 17,405 498 59 6 17 30 17,909 -8 Agriculture 3,347 185 56 3 14 26 3,545 -4 Cr ops, plantations and hunting 407 77 16 0 11 7 482 -11 Animal husbandr y 311 62 40 0 3 19 391 8 Fishing and aquacul ture 2,629 46 0 3 0 0 2,672 -1 Natural resources 1,662 46 12 2 2 8 1,708 -6 P aper and forest products 1,019 41 12 1 2 8 1,061 -4 Mining and suppor ting activities 283 5 0 0 0 0 288 0 Oil , gas and offshore 360 0 0 1 0 0 359 -2 Consumer staples 6,215 183 16 7 7 8 6,392 18 F ood processing and beverages 1,515 92 8 2 3 5 1,605 11 Hous ehold and personal products 670 14 3 1 1 1 684 0 Healthcare 4,030 77 5 4 3 2 4,103 7 Consumer discretionary and services 8,157 857 424 9 32 214 9,183 -25 C onsumer durables 2,121 243 83 1 5 50 2,391 -7 Media and en tertainment 1,080 157 55 1 2 30 1,259 -7 R etail trade 2,978 357 248 5 22 110 3,446 -14 Air tr ansportation 165 2 2 0 0 1 168 0 A ccommodation and leisure 1,007 94 31 2 3 18 1,109 4 T elecommunication services 806 4 5 0 0 5 810 -1 Industrials 18,862 2,007 475 19 84 254 20,987 -56 Materials 1,640 86 67 2 4 21 1,766 -12 Capit al goods 2,443 273 24 3 13 14 2,710 7 C ommercial and professional services 3,522 317 29 -1 9 18 3,842 -11 Construction 4,348 624 147 6 25 78 5,010 -17 Whol esale trade 4,201 442 114 5 24 54 4,674 -23 L and transportation 711 67 11 1 3 9 776 12 IT services 1,997 198 83 3 6 60 2,209 -12 Loans to the public measured at amortised cost, broken down by sector and industry, cont. 31 Dec 2024, EURm Gross Allowances Net Net loan loss1Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Maritime 4,502 130 51 0 1 31 4,651 11 Shipbuilding 4 113 0 0 1 0 116 -1 Shipping 4,135 3 51 0 0 31 4,158 12 Maritime s ervices 363 14 0 0 0 0 377 0 Utilities and public service 5,760 93 103 4 2 60 5,890 -59 Utilitie s distribution 3,041 39 100 2 1 58 3,119 -58 P ower production 2,206 7 1 1 0 0 2,213 -1 Public s ervices 513 47 2 1 1 2 558 0 Real estate 22,865 1,592 185 16 14 57 24,555 38 Other industries 1,897 0 4 0 0 1 1,900 3 Total corporate 90,672 5,591 1,385 66 173 689 96,720 -88 Housing loans 11,577 794 177 6 15 61 12,466 21 Collateralised lending 7,265 736 198 5 19 57 8,118 3 Non-collateralised lending 2,728 526 109 17 33 32 3,281 -19 Household 21,570 2,056 484 28 67 150 23,865 5 Public sector 2,742 2 20 0 0 1 2,763 0 Loans to the public 114,984 7,649 1,889 94 240 840 123,348 -83 Loans to credit institutions 73,159 9 0 5 0 0 73,163 – Total 188,143 7,658 1,889 99 240 840 196,511 -83 1) The t able shows net loan losses related to on- and off-balance sheet exposures for the full year 2024. ===== SIDA 359 ===== Nordea Annual Report 2025 358 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value) 31 Dec 2025, EURm Denmark Finland Norway Sweden Outside Nordic Total Financial institutions 10 4 2 1 — 17 Agriculture 25 31 1 0 — 57 Cr ops, plantations and hunting 10 16 – 0 — 26 Animal husbandr y 15 14 0 0 — 29 Fishing and aquacul ture – 1 1 – — 2 Natural resources 5 13 0 0 — 18 P aper and forest products 5 13 0 0 — 18 Mining and suppor ting activities – 0 – – — 0 Oil , gas and offshore – 0 – – — 0 Consumer staples 1 9 8 3 — 21 F ood processing and beverages 0 3 8 0 — 11 Hous ehold and personal products 0 3 – 0 — 3 Healthcare 1 3 0 3 — 7 Consumer discretionary and services 175 159 21 205 0 560 C onsumer durables 2 44 7 26 0 79 Media and en tertainment 1 21 0 130 — 152 R etail trade 169 71 13 33 — 286 Air tr ansportation – 0 1 0 — 1 A ccommodation and leisure 3 23 0 16 — 42 T elecommunication services – 0 – 0 — 0 Industrials 105 128 125 189 — 547 Materials 7 4 5 44 — 60 Capit al goods 13 21 0 4 — 38 C ommercial and professional services 51 13 5 20 — 89 Construction 5 45 64 22 — 136 Whol esale trade 26 17 49 33 — 125 L and transportation 1 17 0 7 — 25 IT services 2 11 2 59 — 74 Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value), cont. 31 Dec 2025, EURm Denmark Finland Norway Sweden Outside Nordic Total Maritime – 0 – – — 0 Shipbuilding – 0 – – — 0 Shipping – 0 – – — 0 Maritime s ervices – 0 – – — 0 Utilities and public service 65 4 0 18 — 87 Utilitie s distribution 64 3 – 16 — 83 P ower production – 1 – 0 — 1 Public s ervices 1 0 – 2 — 3 Real estate 5 101 27 7 — 140 Other industries – 0 – 0 — 0 Total corporate 391 449 184 423 0 1,447 Housing loans 38 114 34 – — 186 Collateralised lending 72 97 1 5 — 175 Non-collateralised lending 24 19 12 72 — 127 Household 134 230 47 77 — 488 Public sector 22 – – 0 — 22 Total impaired loans 547 679 231 500 0 1,957 o f which fair value – – 0 – 0 0 ===== SIDA 360 ===== Nordea Annual Report 2025 359 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value) 31 Dec 2024, EURm Denmark Finland Norway Sweden Outside Nordic Total Financial institutions 52 3 4 0 – 59 Agriculture 33 23 0 0 – 56 Cr ops, plantations and hunting 10 6 – 0 – 16 Animal husbandr y 23 17 0 – – 40 Fishing and aquacul ture – 0 0 – – 0 Natural resources 5 6 1 0 – 12 P aper and forest products 5 6 1 – – 12 Mining and suppor ting activities – 0 0 – – 0 Oil , gas and offshore – 0 – – – 0 Consumer staples 3 10 1 2 – 16 F ood processing and beverages 1 6 0 1 – 8 Hous ehold and personal products 0 3 – 0 – 3 Healthcare 2 1 1 1 – 5 Consumer discretionary and services 129 136 23 136 – 424 C onsumer durables 1 48 2 32 – 83 Media and en tertainment 2 18 0 35 – 55 R etail trade 121 50 20 57 – 248 Air tr ansportation – 2 – 0 – 2 A ccommodation and leisure 5 18 1 7 – 31 T elecommunication services – 0 – 5 – 5 Industrials 96 139 112 128 – 475 Materials 52 5 5 5 – 67 Capit al goods 3 19 0 2 – 24 C ommercial and professional services 8 11 5 5 – 29 Construction 3 73 55 16 – 147 Whol esale trade 28 14 44 28 – 114 L and transportation 1 4 0 6 – 11 IT services 1 13 3 66 – 83 Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value), cont. 31 Dec 2024, EURm Denmark Finland Norway Sweden Outside Nordic Total Maritime – 0 51 – – 51 Shipbuilding – 0 – – – 0 Shipping – 0 51 – – 51 Maritime s ervices – 0 – – – 0 Utilities and public service 98 4 1 0 – 103 Utilitie s distribution 98 2 – 0 – 100 P ower production – 1 – 0 – 1 Public s ervices 0 1 1 0 – 2 Real estate 5 123 45 12 – 185 Other industries 4 0 – – – 4 Total corporate 425 444 238 278 – 1,385 Housing loans 32 113 32 – – 177 Collateralised lending 79 106 1 12 – 198 Non-collateralised lending 19 17 10 63 – 109 Household 130 236 43 75 – 484 Public sector 20 – – – – 20 Total impaired loans 575 680 281 353 – 1,889 o f which fair value – – – – – – ===== SIDA 361 ===== Nordea Annual Report 2025 360 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost 31 Dec 2025, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio gross, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio %2 Loans measured at amor- tised cost Financial institutions 21 10 17 8 28 6 10 12 71 21,952 Agriculture 11 28 57 143 33 4 5 24 42 3,942 Cr ops, plantations and hunting 3 71 26 594 14 0 4 10 38 424 Animal husbandr y 9 243 29 751 15 0 1 14 48 371 Fishing and aquacul ture -1 -3 2 6 4 4 0 0 0 3,147 Natural resources 1 6 18 105 13 1 2 10 56 1,697 P aper and forest products -2 -20 18 174 12 1 1 10 56 1,022 Mining and suppor ting activities 0 0 0 0 0 0 0 0 0 433 Oil , gas and offshore 3 124 0 0 1 0 1 0 0 242 Consumer staples 4 7 21 37 18 3 8 7 33 5,648 F ood processing and beverages 1 6 11 67 10 1 5 4 36 1,637 Hous ehold and personal products 1 14 3 42 2 0 1 1 33 712 Healthcare 2 6 7 21 6 2 2 2 29 3,299 Consumer discretionary and services -11 -12 560 602 259 3 22 234 42 9,043 C onsumer durables 4 17 79 335 44 1 4 39 49 2,317 Media and en tertainment 6 54 152 1,333 28 0 5 23 15 1,112 R etail trade -21 -58 286 756 159 2 11 146 51 3,626 Air tr ansportation 1 67 1 66 1 0 0 1 100 150 A ccommodation and leisure -3 -29 42 393 27 0 2 25 60 1,041 Telecommunication services 2 25 0 0 0 0 0 0 0 797 Industrials -33 -14 547 225 337 14 89 234 43 23,925 Materials -3 -15 60 294 26 1 12 13 22 2,017 Capit al goods -2 -6 38 114 36 2 18 16 42 3,303 Commercial and professional services -20 -42 89 185 57 3 13 41 46 4,762 Construction 11 21 136 254 95 4 13 78 57 5,257 Whol esale trade -11 -24 125 268 81 1 28 52 42 4,582 L and transportation -1 -9 25 224 15 0 1 14 56 1,103 IT services -7 -24 74 253 27 3 4 20 27 2,901 Loans to the public measured at amortised cost, cont. 31 Dec 2025, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio gross, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio %2 Loans measured at amor- tised cost Maritime 5 11 0 0 3 2 1 0 0 4,487 Shipbuilding 2 741 0 0 0 0 0 0 0 27 Shipping 4 10 0 0 2 2 0 0 0 3,994 Maritime s ervices -1 -21 0 0 1 0 1 0 0 466 Utilities and public service -3 -5 87 132 34 3 2 29 33 6,564 Utilitie s distribution -6 -17 83 230 30 2 1 27 33 3,581 P ower production 3 12 1 4 1 1 0 0 0 2,418 Public s ervices 0 0 3 53 3 0 1 2 67 565 Real estate -3 -1 140 50 83 10 9 64 46 27,674 Other industries -1 -5 0 0 0 0 0 0 0 2,088 Total corporate -9 -1 1,447 134 808 46 148 614 42 107,020 Housing loans -16 -13 186 147 54 2 9 43 23 12,614 Collateralised lending 4 5 175 224 94 5 11 78 45 7,716 Non-collateralised lending -2 -6 127 375 39 6 16 17 13 3,344 Household -14 -6 488 205 187 13 36 138 28 23,674 Public sector 0 0 22 133 1 0 0 1 5 1,650 Loans to the public -23 -2 1,957 147 996 59 184 753 38 132,343 1) Incl uding provisions for off-balance sheet exposures. 2) All owances for stage 3 divided by exposures in stage 3. ===== SIDA 362 ===== Nordea Annual Report 2025 361 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost 31 Dec 2024, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio gross, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio %2 Loans measured at amor- tised cost Financial institutions -8 -4 59 33 53 6 17 30 51 17,909 Agriculture -4 -11 56 156 43 3 14 26 46 3,545 Cr ops, plantations and hunting -11 -228 16 320 18 0 11 7 44 482 Animal husbandr y 8 205 40 969 22 0 3 19 48 391 Fishing and aquacul ture -1 -4 0 0 3 3 0 0 0 2,672 Natural resources -6 -35 12 70 12 2 2 8 67 1,708 P aper and forest products -4 -38 12 112 11 1 2 8 67 1,061 Mining and suppor ting activities 0 0 0 0 0 0 0 0 0 288 Oil , gas and offshore -2 -56 0 0 1 1 0 0 0 359 Consumer staples 18 28 16 25 22 7 7 8 50 6,392 F ood processing and beverages 11 69 8 50 10 2 3 5 63 1,605 Hous ehold and personal products 0 0 3 44 3 1 1 1 33 684 Healthcare 7 17 5 12 9 4 3 2 40 4,103 Consumer discretionary and services -25 -27 424 449 255 9 32 214 50 9,183 C onsumer durables -7 -29 83 339 56 1 5 50 60 2,391 Media and en tertainment -7 -56 55 426 33 1 2 30 55 1,259 R etail trade -14 -41 248 692 137 5 22 110 44 3,446 Air tr ansportation 0 0 2 118 1 0 0 1 50 168 A ccommodation and leisure 4 36 31 274 23 2 3 18 58 1,109 Telecommunication services -1 -12 5 61 5 0 0 5 100 810 Industrials -56 -27 475 223 357 19 84 254 53 20,987 Materials -12 -68 67 374 27 2 4 21 31 1,766 Capit al goods 7 26 24 88 30 3 13 14 58 2,710 Commercial and professional services -11 -29 29 75 26 -1 9 18 62 3,842 Construction -17 -34 147 287 109 6 25 78 53 5,010 Whol esale trade -23 -49 114 240 83 5 24 54 47 4,674 L and transportation 12 155 11 139 13 1 3 9 82 776 IT services -12 -54 83 364 69 3 6 60 72 2,209 Loans to the public measured at amortised cost, cont. 31 Dec 2024, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio gross, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio %2 Loans measured at amor- tised cost Maritime 11 24 51 109 32 0 1 31 61 4,651 Shipbuilding -1 -86 0 0 1 0 1 0 0 116 Shipping 12 29 51 122 31 0 0 31 61 4,158 Maritime s ervices 0 0 0 0 0 0 0 0 0 377 Utilities and public service -59 -100 103 173 66 4 2 60 58 5,890 Utilitie s distribution -58 -186 100 314 61 2 1 58 58 3,119 P ower production -1 -5 1 5 1 1 0 0 0 2,213 Public s ervices 0 0 2 36 4 1 1 2 100 558 Real estate 38 15 185 75 87 16 14 57 31 24,555 Other industries 3 16 4 21 1 0 0 1 25 1,900 Total corporate -88 -9 1 385 142 928 66 173 689 50 96,720 Housing loans 21 17 177 141 82 6 15 61 34 12,466 Collateralised lending 3 4 198 241 81 5 19 57 29 8,118 Non-collateralised lending -19 -58 109 324 82 17 33 32 29 3,281 Household 5 2 484 201 245 28 67 150 31 23,865 Public sector 0 0 20 72 1 0 0 1 5 2,763 Loans to the public -83 -7 1 889 152 1 174 94 240 840 44 123,348 1) Incl uding provisions for off-balance sheet exposures. 2) All owances for stage 3 divided by exposures in stage 3. ===== SIDA 363 ===== Nordea Annual Report 2025 362 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity management , cont. Loans to the public measured at amortised cost, geographical breakdown 1 31 Dec 2025, EURm Gross Allowances NetStage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Denmark 24,049 1,149 516 3 81 210 25,421 Finland 25,431 2,653 691 19 39 314 28,404 Norway 27,421 1,225 224 23 24 62 28,761 Sweden 30,053 1,285 467 9 36 140 31,620 Russia 0 0 0 0 0 0 1 US 3,030 7 1 1 1 0 3,036 Other 14,950 130 57 4 4 27 15,102 Total 124,934 6,449 1,957 59 184 753 132,343 1) Based on the customer’s country of domicile. 31 Dec 2024, EURm Gross Allowances NetStage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Denmark 23,283 1,204 552 20 92 270 24,657 Finland 23,832 3,032 677 23 57 278 27,182 Norway 25,708 1,718 263 24 31 85 27,549 Sweden 26,214 1,545 341 21 55 182 27,842 Russia 1 0 0 0 0 0 1 US 2,786 2 0 0 1 0 2,788 Other 13,160 148 56 5 4 24 13,330 Total 114,984 7,649 1,889 94 240 840 123,348 1) Based on the customer’s country of domicile. Rating and scoring distribution One way of assessing credit quality is through analysis of the distribution across rating grades for rated corporate customers and institutions as well as across risk grades for scored household and small business customers, i.e. retail exposures. For the corporate portfolio, the largest rating groups were ratings 5 and 4. For the retail rating grade, the largest scoring group was B. Rating distribution IRB corporate customers 1 0 5 10 15 20 1-11+2- 2 2+ 3- 3 3+ 4- 4 4+ 5- 5 5+ 6- 6 6+ % 2025 2024 1) Defaulted loans are not included in the rating distribution. Risk grade distribution IRB retail customers 1 0 5 10 15 20 F- F F+ E- E E+D-D D+C-C C+ B- B B+A-A A+ % 2025 2024 1) Defaulted loans are not included in the risk grade distribution. Scoring grades have been converted to risk grades. ===== SIDA 364 ===== Nordea Annual Report 2025 363 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Rating information for loans measured at amortised cost EURm Rating grade1 Average PD (%) Gross carrying amount 31 Dec 2025 AllowancesStage 1 Stage 2 Stage 3 Total 7 – 1,126 2 0 1,128 0 6 0.01 10,536 13 – 10,549 1 5 0.08 35,729 87 1 35,817 11 4 0.23 46,321 935 0 47,256 37 3 5.48 5,342 1,732 1 7,076 65 2 20.48 149 1,190 7 1,346 45 1 31.01 64 420 3 486 25 Standardised/Unrated n.a 6,842 0 – 6,842 5 0 (default) 100.00 10 12 1,381 1,402 581 Group undertakings n.a 80,708 – – 80,708 – Total 186,827 4,391 1,393 192,610 770 EURm Rating grade 1 Average PD (%) Gross carrying amount 31 Dec 2024 AllowancesStage 1 Stage 2 Stage 3 Total 7 – 2,345 1 – 2,346 0 6 0.01 9,636 31 – 9,667 3 5 0.08 33,289 48 – 33,336 19 4 0.23 39,774 1,029 1 40,805 49 3 3.64 4,715 2,103 1 6,820 56 2 16.49 133 1,460 33 1,626 88 1 34.08 47 439 10 496 31 Standardised/Unrated n.a. 4,473 0 0 4,473 20 0 (default) 100.00 11 43 1,293 1,347 648 Group undertakings n.a. 71,388 – – 71,388 0 Total 165,811 5,153 1,339 172,303 913 1) The s tage classification and calculated provision for each exposure are based on the situation as at the end of October 2025 (October 2024), while the exposure amount and rating grades are based on the situation as at the end of December 2025 (December 2024). Some of the exposures in default according to the rating grade as at the end of December were not in default as at the end of October, which is reflected in the stage classification. Scoring information for loans measured at amortised cost EURm Scoring grade1 Average PD (%) Gross carrying amount 31 Dec 2025 AllowancesStage 1 Stage 2 Stage 3 Total A 0.11 4,896 23 1 4,920 1 B 0.33 8,790 108 1 8,899 3 C 1.39 5,095 288 3 5,387 9 D 5.49 2,442 469 4 2,915 15 E 15.09 535 729 6 1,270 20 F 22.91 114 429 5 548 18 Standardised/Unrated 1.12 139 6 9 154 2 0 (default) 100.00 289 24 535 848 160 Total 22,300 2,076 564 24,941 228 EURm Scoring grade 1 Average PD (%) Gross carrying amount 31 Dec 2024 AllowancesStage 1 Stage 2 Stage 3 Total A 0.12 6,786 14 0 6,801 2 B 0.46 7,258 104 0 7,363 7 C 1.20 4,501 219 2 4,722 11 D 7.20 2,988 670 3 3,660 28 E 20.59 357 821 3 1,181 27 F 29.81 99 619 3 721 33 Standardised/Unrated 5.23 299 10 7 315 3 0 (default) 100.00 44 48 531 623 155 Total 22,332 2,505 550 25,387 265 1) The s tage classification and calculated provisioning for each exposure are based on the situation as at the end of October 2025 (October 2024), while the exposure amount and rating grades are based on the situation as at the end of December 2025 (December 2024). Some of the exposures in default according to the rating grade as at the end of December were not in default as at the end of October, which is reflected in the stage classification. ===== SIDA 365 ===== Nordea Annual Report 2025 364 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Rating information for off-balance sheet items EURm Rating grade Nominal amount 31 Dec 2025 ProvisionsStage 1 Stage 2 Stage 3 Total 7 9,150 – – 9,150 0 6 12,330 4 0 12,334 1 5 35,897 3 0 35,900 7 4 20,697 732 0 21,429 13 3 2,476 1,592 0 4,068 27 2 22 721 123 866 20 1 2 191 1 194 11 Standardised/Unrated 361 71 0 432 7 0 (default) 0 0 365 365 29 Group undertakings 61,019 – – 61,019 – Total 141,954 3,314 489 145,757 115 EURm Rating grade Nominal amount 31 Dec 2024 ProvisionsStage 1 Stage 2 Stage 3 Total 7 8,076 0 – 8,076 2 6 10,574 329 – 10,902 5 5 35,542 149 – 35,691 16 4 18,742 353 0 19,096 15 3 2,983 1,224 5 4,212 27 2 43 784 0 827 23 1 1 221 0 222 12 Standardised/Unrated 122 82 0 204 7 0 (default) 6 3 336 345 24 Group undertakings 61,140 – – 61,140 – Total 137,229 3,144 342 140,715 132 Scoring information for off-balance sheet items EURm Scoring grade Nominal amount 31 Dec 2025 ProvisionsStage 1 Stage 2 Stage 3 Total A 4,764 36 0 4,800 1 B 4,606 24 0 4,629 3 C 1,859 180 0 2,039 6 D 908 193 1 1,102 10 E 181 290 1 472 30 F 7 51 1 59 5 Standardised/Unrated 122 3 0 125 0 0 (default) 0 0 36 36 19 Total 12,447 777 39 13,262 73 EURm Scoring grade Nominal amount 31 Dec 2024 ProvisionsStage 1 Stage 2 Stage 3 Total A 5,625 19 0 5,644 1 B 3,741 25 0 3,766 6 C 1,381 118 0 1,500 5 D 776 149 0 925 7 E 14 358 0 373 38 F 2 64 0 66 5 Standardised/Unrated 1 332 0 333 1 0 (default) 2 3 36 41 19 Total 11,542 1,069 36 12,648 83 ===== SIDA 366 ===== Nordea Annual Report 2025 365 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Carrying amount of loans measured at amortised cost, before allowances EURm Credit institutions The public Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance at 1 Jan 2025 73,159 9 0 73,168 114,984 7,649 1,889 124,522 188,143 7,658 1,889 197,690 Origination and acquisition 14,267 3 – 14,270 38,135 473 68 38,677 52,402 476 68 52,946 Transfers between stage 1 and stage 2 (net) -2 2 – – -632 632 – – -634 634 – – Transfers between stage 2 and stage 3 (net) – 0 0 0 – -200 200 – – -200 200 – Transfers between stage 1 and stage 3 (net) – – – – -149 – 149 – -149 – 149 – Repayments and disposals -21,557 -4 0 -21,562 -33,216 -2,020 -414 -35,650 -54,773 -2,024 -414 -57,211 Write-offs – – – – – – -277 -277 – – -277 -277 Other changes1 18,236 8 0 18,244 5,237 -132 326 5,430 23,473 -123 326 23,674 Translation differences 90 1 0 91 575 47 16 638 665 48 16 729 Closing balance at 31 Dec 2025 84,193 18 0 84,211 124,934 6,449 1,957 133,340 209,127 6,467 1,957 217,551 1) Other change s are mainly related to changes in utilisation of credits granted in earlier years, internal and revolving products. EURm Credit institutions The public Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance at 1 Jan 2024 67,392 8 1 67,401 121,384 7,222 1,706 130,311 188,776 7,229 1,707 197,712 Origination and acquisition 18,714 4 0 18,718 46,348 332 67 46,747 65,062 336 67 65,465 Transfers between stage 1 and stage 2 (net) -2 2 – – -1,701 1,701 – – -1,703 1,703 – – Transfers between stage 2 and stage 3 (net) – – – – – -161 161 – – -161 161 – Transfers between stage 1 and stage 3 (net) – – – – -208 – 208 – -208 – 208 – Repayments and disposals -18,704 -6 -1 -18,712 -36,446 -2,031 -392 -38,868 -55,149 -2,037 -393 -57,580 Write-offs – – – – – – -139 -139 – – -139 -139 Other changes1 6,160 2 – 6,162 -13,214 677 290 -12,247 -7,054 679 290 -6,085 Translation differences -402 0 – -402 -1,180 -90 -13 -1,282 -1,581 -90 -13 -1,684 Closing balance at 31 Dec 2024 73,159 9 0 73,168 114,984 7,649 1,889 124,522 188,143 7,658 1,889 197,690 1) Other change s are mainly related to changes in utilisation of credits granted in earlier years, internal and revolving products. ===== SIDA 367 ===== Nordea Annual Report 2025 366 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Movements in allowance accounts for loans measured at amortised cost EURm Credit institutions The public Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance at 1 Jan 2025 -5 0 0 -5 -94 -240 -840 -1,174 -99 -240 -840 -1,179 Origination and acquisition -1 0 – -1 -16 -6 -7 -29 -17 -6 -7 -30 Transfers from stage 1 to stage 2 – 0 – 0 5 -42 – -37 5 -42 – -37 Transfers from stage 1 to stage 3 – – – – 1 – -37 -36 1 – -37 -36 Transfers from stage 2 to stage 1 – 0 – 0 -1 34 – 33 -1 34 – 33 Transfers from stage 2 to stage 3 – 0 0 0 – 33 -78 -45 – 33 -78 -45 Transfers from stage 3 to stage 1 – – – – 0 – 2 2 0 – 2 2 Transfers from stage 3 to stage 2 – 0 0 0 – -5 21 16 – -5 21 16 Changes in credit risk without stage transfer 0 0 0 0 13 5 -6 12 14 5 -7 13 Repayments and disposals 4 0 0 4 33 38 35 107 36 38 36 110 Write-off through decrease in allowance account – – – – – – 162 162 – – 162 162 Translation differences 0 0 0 0 0 -1 -5 -7 0 -1 -5 -7 Closing balance at 31 Dec 2025 -2 0 0 -2 -59 -184 -753 -996 -61 -184 -753 -998 EURm Credit institutions The public Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance at 1 Jan 2024 -5 0 -1 -6 -129 -299 -826 -1,253 -134 -299 -827 -1,259 Origination and acquisition -1 -0 – -1 -23 -14 -8 -46 -24 -14 -8 -47 Transfers from stage 1 to stage 2 0 -0 – – 8 -97 – -89 8 -97 – -89 Transfers from stage 1 to stage 3 – – -0 -0 1 – -109 -108 1 – -109 -108 Transfers from stage 2 to stage 1 – – – – -5 55 – 50 -5 55 – 50 Transfers from stage 2 to stage 3 – – – – – 23 -106 -83 – 23 -106 -83 Transfers from stage 3 to stage 1 -0 – 0 0 -0 – 3 2 -0 – 3 3 Transfers from stage 3 to stage 2 – – – – – -8 29 21 – -8 29 21 Changes in credit risk without stage transfer -1 0 -0 -1 8 14 10 31 7 14 10 31 Repayments and disposals 2 0 1 3 45 85 84 215 47 85 85 218 Write-off through decrease in allowance account – – – – – – 77 77 – – 77 77 Translation differences -0 – – -0 1 1 6 9 1 1 6 9 Closing balance at 31 Dec 2024 -5 0 -0 -5 -94 -240 -840 -1,174 -99 -240 -840 -1,179 The tables show the changes in exposure/allowances for each stage during the year. If an exposure is moved e.g. to stage 2 from stage 1, there will be a reversal in stage 1 and an increase in stage 2. ===== SIDA 368 ===== Nordea Annual Report 2025 367 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Movements in provisions for off-balance sheet items EURm Stage 1 Stage 2 Stage 3 Total Opening balance at 1 Jan 2025 53 120 41 215 Origination and acquisition 3 2 0 5 Transfers from stage 1 to stage 2 -2 27 – 25 Transfers from stage 1 to stage 3 0 – 4 4 Transfers from stage 2 to stage 1 0 -13 – -13 Transfers from stage 2 to stage 3 – -3 6 3 Transfers from stage 3 to stage 1 – – 0 0 Transfers from stage 3 to stage 2 0 1 -2 -1 Changes in credit risk without stage transfer -11 1 8 -2 Repayments and disposals -15 -29 -4 -49 Write-off through decrease in allowance account – – – – Translation differences 0 1 0 1 Closing balance at 31 Dec 2025 28 107 53 188 EURm Stage 1 Stage 2 Stage 3 Total Opening balance at 1 Jan 2024 46 102 39 187 Origination and acquisition 11 17 0 29 Transfers from stage 1 to stage 2 -2 46 – 43 Transfers from stage 1 to stage 3 -0 – 6 5 Transfers from stage 2 to stage 1 1 -33 – -32 Transfers from stage 2 to stage 3 – -2 4 2 Transfers from stage 3 to stage 1 0 – -1 -1 Transfers from stage 3 to stage 2 – 1 -2 -1 Changes in credit risk without stage transfer 11 5 -2 13 Repayments and disposals -13 -15 -2 -29 Write-off through decrease in allowance account – – – 0 Translation differences -1 -1 0 -2 Closing balance at 31 Dec 2024 53 120 41 215 3. Counterparty credit risk See section 3 “Counterparty credit risk” in the Group’s Note G11. For information about offsetting of financial assets and liabilities, see Accounting policies in Note P3.3 “Classification and measurement“, the section “Offsetting of financial assets and liabilities 4. Market risk See section 4 “Market risk” in the Group’s Note G11. 5. Operational risk For operational risk, management of operational risk and financial reporting risk management, see section 5 “Operational risk” in the Group’s Note G11. 6. Compliance risk For compliance risk, ESG-related risk management, finan- cial crime prevention as well as management of compli- ance risk, see section 6 “Compliance risk” in the Group’s Note G11. 7. Liquidity risk During 2025 Nordea Bank Abp continued to benefit from its prudent liquidity risk management in terms of main- taining a diversified and strong funding base and a diver- sified liquidity buffer. Nordea Bank Abp maintained a strong liquidity position throughout the year despite the continued volatility in global markets driven by geopoliti- cal and macro-economic uncertainty. Nordea Bank Abp issued approximately EUR 8.8bn in long-term funding in 2025, of which all was issued in the form of senior debt. Throughout 2025 Nordea Bank Abp remained compliant with the liquidity coverage ratio (LCR) requirement in all currencies on a combined basis as well as the net stable funding ratio (NFSR). Liquidity risk definition and identification See section 8.1 “Liquidity risk definition and identification” in the Group’s Note G11. Management principles and control See section 8.2 “Management principles and control” in the Group’s Note G11. Liquidity risk management strategy See section 8.3 “Liquidity risk management strategy” in the Group’s Note G11. Liquidity risk measurement See the section 8.4 “Liquidity risk measurement” in the Group’s Note G11. Liquidity risk analysis Nordea Bank Abp continues to have a strong and prudent liquidity risk profile with a strong funding base. At the end of 2025 the total volume utilised under CD and CP pro- grammes was EUR 48.8bn (EUR 39.7bn) with an average maturity of 0.4 (0.3) years. The total volume under long- term programmes was EUR 39.0bn (EUR 38.3bn) with an average maturity of 3.1 (2.9) years. Nordea Bank Abp’s funding sources are presented in the table on the next page. The liquidity risk position remained strong throughout 2025. Nordea Bank Abp’s liquidity buffer ranged between EUR 95.5bn and EUR 127.2bn throughout 2025 (EUR 91.7bn and EUR 122.9bn) with an average liquidity buffer of EUR 111.1bn (EUR 105.3bn). The combined LCR for Nordea Bank Abp was 153% at the end of 2025 (139%) with an annual average of 135% (135%). At the end of 2025 Nordea Bank Abp’s NSFR was 114.7% (116.4%). ===== SIDA 369 ===== Nordea Annual Report 2025 368 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity management, cont. Funding sources, 31 December 2025 Liability type Interest rate base Average maturity (years) EURm Deposits by credit institutions Shorter than 3 months Euribor etc. 0.0 39,880 Longer than 3 months Euribor etc. 0.2 2,146 Deposits and borrowings from the public Deposits payable on demand Administrative 0.0 176,167 Other deposits Euribor etc. 0.1 70,135 Debt securities in issue Certificate of deposits Euribor etc. 0.4 38,221 Commercial paper Euribor etc. 0.3 10,591 Other bond loans Fixed rate, market-based 3.3 30,547 Fair value changes of hedged items -367 Derivatives 18,857 Other non-interest-bearing items 20,199 Subordinated debt Tier 2 subordinated bond loans Fixed rate, market-based 4.2 4,613 Additional Tier 1 subordinated bond loans (undated) Fixed rate, market-based 4,367 Fair value changes of hedged items -170 Equity 28,168 Total 443,347 Net stable funding ratio EURbn 31 Dec 2025 31 Dec 2024 Available stable funding 238.9 223.8 Required stable funding 208.4 192.3 Net stable funding 30.5 31.5 Net stable funding ratio1 114.7% 116.4% 1) According to CRR2 regulation. ===== SIDA 370 ===== Nordea Annual Report 2025 369 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Signing Board of Directors’ proposal for the distribution of earnings On 31 December 2025 Nordea Bank Abp’s distributable earnings, including profit for the financial year and after subtracting capitalised development expenses, were EUR 21,481,678,537.31, and other unrestricted equity, consisting of invested unrestricted equity, amounted to EUR 1,077,352,142.15. The Board of Directors proposes that the 24 March 2026 Annual General Meeting decide on a dividend payment of EUR 0.96 per share. The dividend would be paid from retained earnings. After a dividend payout of EUR 3,284,175,175.68, corresponding to approximately 68% of the net profit of the year, EUR 18,197,503,361.63 would be carried forward as distributable retained earnings. The Board of Directors has also decided to propose that the AGM authorise it to decide on the distribution of a mid- year dividend in 2026. The mid-year dividend amount is intended to be set at a level corresponding to approximately 50% of the Group’s net profit for the six-month period end- ing 30 June 2026, while being subject to a maximum total amount of EUR 3bn. The mid-year dividend is considered to form the first part of the total dividend distribution to be paid for the financial year 2026 under the company’s divi- dend policy. The intention is for the Group Board to decide on the mid-year dividend in conjunction with the interim report for the second quarter. The authorisation for the pay- ment of the mid-year dividend would remain in force until the beginning of the next Annual General Meeting. The dividends would be paid from retained earnings. Both payments would be distributed based on the annual accounts to be adopted for the financial year ended 31 December 2025. In the opinion of the Board of Directors, the proposed distribution of earnings does not risk the solvency of Nordea Bank Abp. Further information can be found in the section “Proposed distribution of earnings” in the Board of Directors’ report. Signatures to the financial statements and the report of the Board of Directors for the year 2025 To the best of the knowledge of the members of the Board of Directors and the President and Group CEO: • the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of Nordea Bank Abp and the group undertakings included in the consolidation taken as a whole; • the Board of Directors’ report includes a fair review of the development and performance of the business and the position of Nordea Bank Abp and the group undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and • the Sustainability Statement included in the Board of Directors’ report is prepared in accordance with the sus- tainability reporting standards referred to in chapter 7 of the Finnish Accounting Act (1336/1997, as amended) and with the specifications adopted pursuant to Article 8 of Regulation (EU) 2020/852. Helsinki, 17 February 2026 Sir Stephen Hester Chair Lene Skole Vice Chair Petra van Hoeken Board member Joanna Koskinen Board member1 Jørgen Suo Lønnquist Board member1 John Maltby Board member Risto Murto Board member Lars Rohde Board member Per Strömberg Board member Jonas Synnergren Board member Arja Talma Board member Kjersti Wiklund Board member Frank Vang-Jensen President and Group CEO The Auditor’s Note A report on the audit performed has been issued today. Helsinki, 23 February 2026 PricewaterhouseCoopers Oy Authorised Public Accountants Jukka Paunonen Authorised Public Accountant (KHT) 1) Employee-elected Board member. ===== SIDA 371 ===== Nordea Annual Report 2025 370 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Auditor’s report (Translation of the Swedish original) To the Annual General Meeting of Nordea Bank Abp Report on the Audit of the Financial Statements Opinion In our opinion • the consolidated financial statements give a true and fair view of the group’s financial position, financial perfor- mance and cash flows in accordance with IFRS Account- ing Standards as adopted by the EU • the financial statements give a true and fair view of the parent company’s financial performance and financial position in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. Our opinion is consistent with the additional report to the Audit Committee. What we have audited We have audited the financial statements of Nordea Bank Abp (business identity code 2858394-9) for the year ended 31 December 2025. The financial statements comprise: • the consolidated income statement, statement of com- prehensive income, balance sheet, statement of changes in equity, cash flow statement and notes, which include material accounting policy information and other explanatory information • the parent company’s income statement, balance sheet, cash flow statement and notes. Basis for Opinion We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good audit- ing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the parent company and of the group companies in accordance with the ethical require- ments that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsi- bilities in accordance with these requirements. To the best of our knowledge and belief, the non-audit services that we have provided to the parent company and group companies are in accordance with the applicable law and regulations in Finland and we have not provided non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that we have provided are disclosed in note G2.7 Other expenses/Auditor’s fees to the Financial Statements. Our Audit Approach Overview • Overall group materiality: €250 million, which represents 0.8% of equity • The group audit scope encom- passed all significant group companies as well as a num- ber of smaller group compa- nies in the Nordic countries, covering the vast majority of revenue, assets and liabilities • Impairment of loans to customers • Valuation of certain Level II and III financial instruments held at fair value • Actuarial assumptions related to the Life business • IT systems supporting processes over financial reporting As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. Materiality The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of mis- statements on the financial statements as a whole. Overall group materiality €250 million (previous year €250 million) How we determined it 0.8% of equity Rationale for the materiality benchmark applied We chose equity as the benchmark because, in our view, it is the benchmark against which the capital resources of the bank are most commonly measured by users and is a generally accepted benchmark. We chose 0.8% which is within the range of acceptable quantitative materiality thresholds in auditing standards. How we tailored our group audit scope We tailored the scope of our audit, taking into account the structure of the Nordea Group, the accounting processes and controls, and the industry in which the group operates. We determined the type of work that needed to be per- formed at group companies by us, as the group engage- ment team, or by component auditors from other PwC net- work firms and non-PwC firm operating under our instruc- tions. Where the work was performed by component auditors, we issued specific instructions to reporting com- ponent auditors which included our risk analysis, materiality and audit approach to centralised systems. Audits were performed in group companies which were considered significant because of their relative financial significance, risk or due to their specific nature, covering the majority of revenue, assets and liabilities of the Group. By performing the procedures above at group compa- nies, combined with additional procedures at the group level, we have obtained sufficient and appropriate evi- dence regarding the financial information of the Group as a whole to provide a basis for our opinion on the consoli- dated financial statements. Materiality Audit Scope Key Audit Matters ===== SIDA 372 ===== Nordea Annual Report 2025 371 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Auditor’s report, cont. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. Key audit matter in the audit of the group How our audit addressed the key audit matter Impairment of loans to customers Refers to Note G1 – Accounting policies (Critical judge- ments and estimation uncertainty), Note G2.10 – Net loan losses and Note G3.8 – Loans. Critical judgements and estimation uncertainty are involved in determining the appropriate impairment loss to be recognised. For individually assessed loans, judge- ment is involved in determining whether a loan has a loss event and in assessing the loan loss amount. Expected credit losses (ECL) are calculated as a func- tion of the probability of default, the exposure at default and the loss given default as well as the timing of the loss. Nordea categorises loans into three stages depending on the level of credit risk or changes in credit risk for each individual loan. For loans without a significant increase in credit risk, stage 1, expected credit losses are calculated for estimated defaults within 12 months. For loans where there is a significant increase in credit risk, stage 2, or loans in default, stage 3, the calculation is based on the lifetime of expected losses. The current macroeconomic situation is characterised by uncertainty along with the impact of geopolitical fac- tors, which have impacted management’s determination of the ECL. To address the uncertainties inherent in the current and future environment and to reflect all relevant risk factors not captured in Nordea’s modelled results, management developed post-model adjustments. Additionally, Nordea uses adjustments to the mod- el-driven ECL results to address impairment model limitations. This is also a key audit matter with respect to our audit of the parent company financial statements. Our audit included a combination of testing of internal controls over financial reporting and substantive testing. We obtained an understanding of the loan origination process, credit risk management and the impairment allowances for loans and advances to customers. We had a special focus on post-model adjustments developed by management and the credit risk develop- ment for large customers. Based on risk, we selected individual loans and performed detailed credit file reviews and assessed their credit risk. We assessed the design and effectiveness of govern- ance and controls over the estimation of ECL. For ECL models, we involved our modelling specialists to assess the methodology, challenge the underlying assumptions and to independently reperform the calcula- tion for a sample of loans. We have evaluated the appropriateness of the assump- tions and accuracy of underlying data used to develop post-model adjustments and reviewed that governance procedures have been performed. We have also assessed the disclosures related to impair- ment of loans. Key audit matter in the audit of the group How our audit addressed the key audit matter Valuation of certain Level II and III financial instruments held at fair value Refers to Note G1 - Accounting policies (Critical judge- ments and estimation uncertainty), Note G2.5 – Total net result from items at fair value, Note G3.3 – Classification and measurement, Note G3.4 – Fair value, Note G3.6 – Hedge accounting and Note G3.12 - Derivatives. Geopolitical tensions and ongoing macroeconomic uncer- tainty while confirming the trend of improving financial conditions continue to be a key theme across major mar- kets. The challenging valuation environment emphasises the importance of robust valuation and reporting controls and the valuation of financial instruments continues to be an area of inherent risk. The valuation of Level II and III financial instruments utilises observable and unobservable inputs, respectively, for recurring fair value measurements. Significant portfolios of financial instruments are val- ued based on models and certain assumptions that are not observable by third parties. Important areas in the valuation of financial instru- ments held at fair value relate to: • framework and policies relating to models and valuation • internal controls relating to fair value hierarchy, fair value adjustments, price testing, model control and governance, and • disclosures of financial instruments. This is also a key audit matter with respect to our audit of the parent company financial statements. We assessed and tested the design and operating effectiveness of the controls over: • the identification, measurement and oversight of the valuation of financial instruments • fair value adjustments, independent price verification and the fair value hierarchy • model control and governance. We examined the Group’s independent price verification processes, model validation and approval processes, controls over data feeds and inputs to valuation and the fair value hierarchy and the Group’s governance and reporting processes and controls. For the valuations dependent on unobservable inputs or which involve a higher degree of judgement, we assessed the assumptions, methodologies and models used by the Group. We performed an independent valuation of a sam- ple of positions, including fair value hierarchy testing. In respect of fair value adjustments, specifically credit, debt and funding fair value adjustments (CVA, DVA and FFVA) for derivatives, we assessed the methodology applied, underlying models and assumptions made by the Group and compared it with our knowledge of current industry practice. We tested the controls over the data inputs to the underlying models and on a sample basis tested underlying transactions back to supporting evidence. We have also assessed the disclosures related to the valuation of financial instruments held at fair value. ===== SIDA 373 ===== Nordea Annual Report 2025 372 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Auditor’s report, cont. Key audit matter in the audit of the Group How our audit addressed the key audit matter Actuarial assumptions related to the Life business Refer to Note G1 - Accounting policies (Critical judgements and estimation uncertainty) and Note G4 – Insurance con- tract liabilities to the consolidated financial statements. Technical provisions involve subjective judgements over uncertain future outcomes. The value is based on models where significant judgement is applied in setting eco- nomic assumptions, actuarial assumptions as well as cus- tomer behaviour. Changes in these assumptions can materially impact the valuation of technical provisions. We assessed the design and tested the operating effec- tiveness of the controls over the process for calculating provisions within the Life business. Our audit also included assessments of applied meth- ods, models and assumptions used in calculating the pro- visions. We have performed substantive and analytical audit procedures relating to the technical provisions involving PwC actuaries. IT systems supporting processes over financial reporting Due to the significant number of transactions that are pro- cessed, the Group’s financial reporting is highly depend- ent on IT systems supporting automated accounting and reconciliation procedures. To ensure complete and accu- rate financial records, it is important that controls over appropriate access rights, program development and changes are designed properly and operate effectively. This is also a key audit matter with respect to our audit of the parent company financial statements. We have tested the design and operating effectiveness of the controls related to the IT systems relevant for financial reporting. Our assessment included access to programs and data as well as program development and changes. For logical access to programs and data, audit activities included testing of the addition of access rights, the removal of access rights and the monitoring of appropri- ateness as well as the appropriate segregation of duties. Other areas tested included monitoring of IT systems and controls over changes to IT systems. There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated financial state- ments or the parent company financial statements. Responsibilities of the Board of Directors and the Managing Director for the Financial Statements The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such inter- nal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent com- pany or the group or to cease operations, or there is no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omis- sions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the par- ent company’s or the group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of the Board of Direc- tors’ and the Managing Director’s use of the going con- cern basis of accounting and based on the audit evi- dence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability to continue as a going concern. If we conclude that a mate- rial uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inade- quate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the parent company or the group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events so that the financial statements give a true and fair view. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial infor- mation of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, super- vision and review of the audit work performed for pur- poses of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial state- ments of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circum- stances, we determine that a matter should not be com- municated in our report because the adverse conse- quences of doing so would reasonably be expected to out- weigh the public interest benefits of such communication. ===== SIDA 374 ===== Nordea Annual Report 2025 373 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Auditor’s report, cont. Other Reporting Requirements Appointment As set forth in the Memorandum of Association of Nordea Bank Abp, we have acted as the auditor as of 21 September 2017. Our appointment represents a total period of uninter- rupted engagement of eight financial years. Other Information The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the infor- mation included in the Annual Report but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materi- ally inconsistent with the financial statements or our knowl- edge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been pre- pared in compliance with the applicable provisions, excluding the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards. In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions. Our opinion does not cover the sustainability report informa- tion on which there are provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards. If, based on the work we have performed, we conclude that there is a material misstatement of the other informa- tion, we are required to report that fact. We have nothing to report in this regard. Other Statements We support that the financial statements should be adopted. The proposal by the Board of Directors regarding the use of the profit shown in the balance sheet is in compliance with the Limited Liability Companies Act. We support that the Members of the Board of Directors of the parent company and the Managing Director should be discharged from liabil- ity for the financial period audited by us. Helsinki 23 February 2026 PricewaterhouseCoopers Oy Authorised Public Accountants Jukka Paunonen Authorised Public Accountant (KHT) ===== SIDA 375 ===== Nordea Annual Report 2025 374 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Assurance Report on the Sustainability Statement (Translation of the Swedish original) To the Annual General Meeting of Nordea Bank Abp We have performed a limited assurance engagement on the group sustainability report (Sustainability Statement) of Nordea Bank Abp (business identity code 2858394-9) that is referred to in Chapter 7 of the Accoun- ting Act and that is included in the report of the Board of Directors for the reporting period 1.1.–31.12.2025. Opinion Based on the procedures we have performed and the evi- dence we have obtained, nothing has come to our atten- tion that causes us to believe that the group sustainability report does not comply, in all material respects, with 1) the r equirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting stand- ards (ESRS), and 2) the r equirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy). Point 1 above also contains the process in which Nordea Bank Abp has identified the information for reporting in accordance with the sustainability reporting standards (double materiality assessment). Our opinion does not cover the tagging of the group sustainability report with digital XBRL sustainability tags in accordance with Chapter 7, Section 22, Subsection 1(2), of the Accounting Act, because sustainability reporting companies have not had the possibility to comply with that requirement in the absence of requirements for the tagging of sustainability information in the ESEF regula- tion or other European Union legislation. Basis for Opinion We performed the assurance of the group sustainability report as a limited assurance engagement in compliance with good assurance practice in Finland and with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information. Our responsibilities under this standard are further described in the Responsibilities of the Authorised Group Sustainability Auditor section of our report. We believe that the evidence we have obtained is suffi- cient and appropriate to provide a basis for our opinion. Other Matter The comparative sustainability information included in the group sustainability report of Nordea Bank Abp prior to reporting period 2024 has not been subject to a sustaina- bility assurance engagement in accordance with Auditing Act in Finland. Our opinion is not modified in respect of this matter. Authorised Group Sustainability Auditor's Independence and Quality Management We are independent of the parent company and of the group companies in accordance with the ethical require- ments that are applicable in Finland and are relevant to our engagement, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The authorised group sustainability auditor applies International Standard on Quality Management ISQM 1, which requires the authorised sustainability audit firm to design, implement and operate a system of quality man- agement including policies or procedures regarding com- pliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director of Nordea Bank Abp are responsible for: • the group sustainability report and for its preparation and presentation in accordance with the provisions of Chapter 7 of the Accounting Act, including the process that has been defined in the sustainability reporting standards and in which the information for reporting in accordance with the sustainability reporting standards has been identified, • the compliance of the group sustainability report with the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to facilitate sustaina- ble investment, and amending Regulation (EU) 2019/2088, and for • such internal control as the Board of Directors and the Managing Director determine is necessary to enable the preparation of a group sustainability report that is free from material misstatement, whether due to fraud or error. Inherent Limitations in the Preparation of a Group Sustainability Report In reporting forward-looking information in accordance with ESRS, management of the Company is required to prepare the forward-looking information on the basis of assumptions that have been disclosed in the group sus- tainability report about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events fre- quently do not occur as expected. Responsibilities of the Authorised Group Sustainability Auditor Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group sus- tainability report is free from material misstatement, whether due to fraud or error, and to issue a limited assur- ance report that includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of the group sustainability report. Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we exercise professional judgment and maintain pro- fessional skepticism throughout the engagement. We also: • Identify and assess the risks of material misstatement of the group sustainability report, whether due to fraud or error, and obtain an understanding of internal control relevant to the engagement in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company’s or the group’s internal control. • Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Description of the Procedures That Have Been Performed The procedures performed in a limited assurance engage- ment vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. The nature, timing and extent of assurance procedures selected depend on professional judgment, including the assess- ment of risks of material misstatement, whether due to fraud or error. Consequently, the level of assurance obtained in a limited assurance engagement is substan- tially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. ===== SIDA 376 ===== Nordea Annual Report 2025 375 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Assurance Report on the Sustainability Report, cont. Our procedures included for example the following: • We interviewed the company’s management and the individuals responsible for collecting and reporting the information contained in the group sustainability report at the group level, as well as at different levels and busi- ness areas of the organization to gain an understanding of the sustainability reporting process and the related internal controls and information systems. • We familiarised ourselves with the background docu- mentation and records prepared by the company where applicable, and assessed whether they support the infor- mation contained in the group sustainability report. • We assessed the company’s double materiality assess- ment process in relation to the requirements of the ESRS standards, as well as whether the information provided about the assessment process complies with the ESRS standards. • We assessed whether the sustainability information con- tained in the group sustainability report complies with the ESRS standards. • Regarding the EU taxonomy information, we gained an understanding of the process by which the company has identified the group’s taxonomy-eligible and taxono- my-aligned economic activities, and we assessed the compliance of the information provided with the regulations. Helsinki 23 February 2026 PricewaterhouseCoopers Oy Authorised Sustainability Auditors Jukka Paunonen Authorised Sustainability Auditor ===== SIDA 377 ===== Nordea Annual Report 2025 376 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Annual General Meeting 24 March 2026 Nordea’s 2026 Annual General Meeting (AGM) will be held as a virtual meeting on Tuesday 24 March 2026 at 14.00 EET. Advance voting Shareholders have the opportunity to exercise their voting rights also by voting in advance in accordance with the instructions, including the relevant deadlines, set out in the notice to the AGM. Notification of participation Shareholders who wish to participate in the AGM must be registered as shareholders in the shareholders’ register maintained by Euroclear Finland Oy in Finland, Euroclear Sweden AB in Sweden or VP Securities A/S in Denmark on 12 March 2026 and register their participation in accord- ance with the instructions, including the relevant dead- lines, set out in the notice to the AGM. Notification of participation in the AGM must be made no later than 16 March 2026 on Nordea’s website at nordea.com/agm or by regular mail to Innovatics Ltd, AGM/Nordea, Ratamestarinkatu 13 A, 00520 Helsinki, Finland, or by e-mail to agm@innovatics.fi. Shares held in trust Shareholders whose shares are held in trust in Denmark must instruct their trustee to re-register their shares in the shareholders’ own name in the shareholders’ register maintained by VP Securities A/S in good time prior to 12 March 2026. Shareholders whose shares are held in trust in Sweden must instruct their trustee to re-register their shares in the shareholders’ own name in the shareholders’ register maintained by Euroclear Sweden AB in good time prior to 16 March 2026. Holders of nominee-registered shares must be registered in the temporary shareholders’ register maintained by Euroclear Finland Oy no later than 19 March 2026 at 10.00 EET, and should request, without delay, the relevant instructions from their custodian bank regarding the registration. Design and production: Narva Communications Photo: Nordea, Getty Images Financial calendar Financial calendar 2026 Annual General Meeting 2 4 March First-quarter results 22 April Second-quarter results 16 Jul y Third-quarter results 15 Oc tober Contacts Ian Smith, Group CFO Investor Relations Ilkka Ottoila, Head of Investor Relations Randie Atto Rhawi Bojana Flint Axel Jimfelt Malgerud Juho-Pekka Jääskeläinen Laurits Kjaergaard Anne-Claire Madec Anders Norrena Krista Ugletveit Aleksis Kiven katu 7, 00500 Helsinki, Finland investor-relations@nordea.com Website All reports and press and stock exchange releases are available at nordea.com. Financial reports published by the Nordea Group can be found on nordea.com. Nordea’s report on capital and risk management, in accordance with the Pillar III disclosure requirements according to the EU Capital Requirements Regulation, is presented at nordea.com. Annual Report 2025 Nordea Bank Abp is the parent company of the Nordea Group and domiciled in Helsinki, Finland. This Annual Report covers Nordea Bank Abp and pertains to the operations of the Nordea Group whose main legal structure is presented on page 46. In this Annual Report, the Nordea Group presents income statements and other financial data in euro (EUR). The original Annual Report is in Swedish. This is an English version of the Annual Report. In the event of any inconsistencies between the Swedish and English versions, the former will prevail. ===== SIDA 378 ===== This Annual Report covers Nordea Bank Abp and pertains to the operations of the Nordea Group whose main legal structure is presented on page 46. The original Annual Report is in Swedish. This is an English version of the Annual Report. A Swedish version is available on nordea.com. In this Annual Report, the Nordea Group presents income statements and other financial data in euro (EUR). Nordea Bank Abp Business ID 2858394-9 Hamnbanegatan 5 00020 NORDEA Tel +358 200 70000 nordea.com