FULLTEXT DEL 6 AV 11
Årsredovisning 2025
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 =====