FULLTEXT DEL 8 AV 11
Årsredovisning 2025
Nordea Annual Report 2025 252 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 Pensions Accounting policies Defined contribution plans Pension plans that are based on defined contribution arrangements hold no pension liability for Nordea. Pension costs for defined contribution plans are rec- ognised as an expense as the employee renders ser- vices to the entity and the contribution payable in exchange for that service becomes due. In general, the payment is associated with and settled through regular salary payments. Nordea also contributes to state pension plans. Pension costs for defined contribution plans related to the fulfilment of insurance contracts accounted for under IFRS 17 are included gross in this note. In the income statement those costs are presented as part of the accounting for insurance contracts and not as “Staff costs”, see Note G8.1 “Fixed and variable salaries”. Pension costs for defined contribution plans that fulfil the capitalisation requirements defined in the accounting policies in Note G5.1 “Intangible assets” are included gross in this note, but capitalised and added to “Intangible assets” on the balance sheet. Defined benefit plans IAS 19 ensures that the pension obligations net of plan assets backing these obligations are reflected on the Group’s balance sheet. The major defined benefit plans are funded, covered by assets in pen- sion funds/foundations. If the fair value of plan assets associated with a specific pension plan is lower than the gross present value of the defined benefit obligation determined using the projected unit credit method, the net amount is recognised as a liability (“Retirement benefit liabilities”). If not, the net amount is recognised as an asset (“Retirement benefit assets”). Non-funded pension plans are rec- ognised as “Retirement benefit liabilities”. Also plans that fulfil the accounting requirements for defined contribution plans are accounted for as defined ben- efit plans if the payment obligations have not been transferred. Nordea’s net obligation for defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned for their service in the current period and prior periods. That benefit is discounted to deter- mine its present value. Actuarial calculations, includ- ing the projected unit credit method, are applied to assess the present value of defined benefit obliga- tions and related costs, based on several actuarial and financial assumptions. Current service cost and past service cost are recognised in the income state- ment in the current year. Current service cost is defined as the increase in the present value of the defined benefit obligation resulting from employee service in the current period. Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods trig- gered by plan amendments or curtailments. The present value of the obligation and the fair value of any plan assets are impacted by changes in actuarial assumptions (discount rates (interest rates and credit spreads), inflation, salary increases, turn- over and mortality) and experience effects, including actual outcome compared to assumptions. The remeasurement effects are recognised immediately in equity through other comprehensive income. The discount rate is determined by reference to high-quality corporate bonds where a deep enough market for such bonds exists. Covered bonds are in this context considered to be corporate bonds. In Sweden, Norway and Denmark, the discount rate is determined with reference to covered bonds, whereas in Finland and the UK it is determined with reference to corporate bonds. In Sweden, Norway, Finland and Denmark, the observed bond credit spreads over the swap curve are derived from long- dated covered or corporate bonds and extrapolated to the same duration as the pension obligations using the relevant swap curves. In the UK, the cor- porate bond credit spread over the government bond rate is extrapolated to the same duration as the pension obligations using the government bond curve. When the calculation results in a net asset, the recognised asset is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan. Social security contributions are calculated and accounted for based on the net recognised surplus or deficit by plan and are included on the balance sheet as “Retirement benefit liabilities” or “Retirement benefit assets”. Pension costs for defined benefit plans related to the fulfilment of insurance contracts accounted for under IFRS 17 are included gross in this note. In the income statement those costs are presented as part of the accounting for insurance contracts and not as “Staff costs”, see Note G8.1 “Fixed and variable salaries”. Pension costs for defined benefit plans that fulfil the capitalisation requirements defined in the accounting policies in Note G5.1 “Intangible assets” are included gross in this note, but capitalised and added to “Intangible assets” on the balance sheet. Critical judgements and estimation uncertainty The defined benefit obligation for major pension plans is calculated by external actuaries using demo- graphic assumptions based on the current popula- tion. As a basis for these calculations a number of actuarial and financial parameters are used. The estimation of the discount rate is subject to uncertainty about whether corporate bond markets are deep enough and of high quality. There is also uncertainty about the extrapolation of yield curves to relevant maturities. Other parameters, like assumptions about salary increases and inflation, are based on the expected long-term development of these parameters and also subject to estimation uncertainty. The main parameters used at year end are disclosed together with a description of the sen- sitivity to changes in assumptions. The defined ben- efit obligation was EUR 2,753m (EUR 2,651m) at the end of the year. Pension costs The companies within Nordea have various pension plans. They consist of both defined benefit plans and defined contribution plans, reflecting national practices and condi- tions in the countries where Nordea operates. Pension costs EURm 2025 2024 Defined contribution plans -280 -263 Defined benefit plans1 -14 -19 Defined contribution plans where payment obligations have not been transferred1 -6 -6 Total gross -300 -288 1) Excluding special wage tax (SWT) in Sweden and social security contributions (SSC) in Norway totalling EUR -5m (EUR -7m). Defined contribution plans All new employees have been offered defined contribution plans since 2013 when the defined benefit plan in Sweden was closed for new members. The defined contribution plans follow the local collective agreements and regulations in each country. In Norway, Nordea is part of a collectively agreed multi- employer pension plan in the private sector (AFP), provid- ing entitled employees with an additional life annuity to their regular pensions. As no information is available on Nordea’s share of the liabilities/assets and pension cost, the AFP is accounted for as a defined contribution plan in accordance with IAS 19. The AFP plan is financed by an annual premium, for 2025 equal to 2.7% of employees’ salary between 1 and 7.1 times the Norwegian social security base amount (“G”). The premium amounted to EUR 4m (EUR 3m). Defined benefit plans The plans are operated in accordance with local regula- tory requirements, collective agreements and local prac- tice and are generally employer-financed final salary and service-based pension plans providing pension benefits in addition to the statutory systems. All defined benefit plans are closed for new entrants; new employees are offered defined contribution plans. ===== SIDA 254 ===== Nordea Annual Report 2025 253 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 P ensions, cont. In Sweden, 2,420 (2,565) employees earn defined bene- fit pension rights as the primary pension plan. In Finland, 968 (1,084) employees earn defined benefit pension rights as a supplementary pension to the statutory pension plan (TyEL). In Norway, 153 (175) employees earn defined benefit pension rights as the primary pension plan. Further, 1,118 (1,194) employees and 14 (0) retired employees have defined contribution plans where the pension obligations have not been transferred, which means that they are accounted for as retirement benefit liabilities. Retirement benefit assets and liabilities EURm 31 Dec 2025 31 Dec 2024 Funded defined benefit plans with net asset positions 334 360 Funded defined benefit plans with net liability positions -18 -16 Unfunded defined benefit plans -227 -213 Defined contribution plans where payment obligations have not been transferred -51 -43 Net liability (-)/asset (+) 38 88 In general, the liabilities are safeguarded by assets in dedi- cated pension funds or foundations or alternatively by credit insurance (Sweden only). Pension funds and foun- dations hold both the assets and the pension liabilities, except for Sweden where the pension foundation serves as collateral for the pension liabilites held by Nordea. Minimum funding requirements differ between the pension funds and foundations according to local regula- tory requirements. The funding requirement is generally that the pension obligations measured using local require- ments must be covered in full by a local predefined sur- plus. Other pension plans are not covered by funding requirements and are generally unfunded. The respective Nordea entities issuing the defined pension benefit serve as the sponsoring undertaking in accordance with the EU IORP II Directive. IAS 19 pension calculations and assumptions Defined benefit plans impact Nordea via changes in the net present value of obligations and/or changes in the market value of plan assets. Calculations are performed by external actuaries and are based on actuarial assumptions reflecting long-term expectations. The assumptions disclosed for 2025 impact the liability calculations by year-end 2025, while assumptions dis- closed for 2024 impact the calculations of 2025 pension expenses. Assumptions SE NO FI DK UK 2025 Discount rate 3.53% 4.39% 3.67% 2.94% 5.57% Salary increase 2.70% 3.75% 2.50% 2.25% –2 Inflation 1.70% –3 2.00% –1 3.15% Mortality DUS23 K2013FT TyEl 2016 FSA 25 CMI 2025 2024 Discount rate 3.26% 4.24% 3.26% 2.47% 5.46% Salary increase 2.60% 3.25% 2.50% 2.25% –2 Inflation 1.60% –3 2.00% –1 3.50% Mortality DUS23 K2013FT TyEl 2016 FSA 24 CMI 2024 1) In flation has no impact on the defined benefit obligation in Denmark, as the benefits are salary indexed. 2) No ac tive employees in the UK, no impact from salary increases. 3) In flation has no impact on the defined benefit obligation in Norway. The indexation is rather dependent on the return on the plan assets. Sensitivities – impact on defined benefit obligations % SE NO FI DK UK Discount rate - Increase 50bp -8.22% -6.50% -4.59% -3.55% -5.60% Discount rate - Decrease 50bp 9.36% 7.20% 5.01% 3.79% 6.16% Salary increase - Increase 50bp 1.85% 0.10% 0.16% 4.93% – Salary increase - Decrease 50bp -1.47% -0.10% -0.16% -4.66% – Inflation - Increase 50bp 9.19% – 4.60% – 0.58% Inflation - Decrease 50bp -8.12% – -4.25% – -0.55% Mortality - Increase 1 year 4.76% 3.43% 4.29% 6.55% 2.96% Mortality - Decrease 1 year -4.60% -4.55% -4.22% -6.35% -3.64% The sensitivity analyses are prepared by changing one actuarial assumption while keeping the other assumptions unchanged. This is a simplified approach as the actuarial assumptions are usually correlated. However, it makes it possible to isolate one effect from another. The method used for calculating the impact on the obligations is the same as when calculating the obligations accounted for in the financial statements. The sensitivity analyses include the impact on the liabilities held for future special wage tax (SWT) in Sweden and social security contributions (SSC) in Norway. Net retirement benefit liabilities/assets EURm Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Obligations 1,434 1,385 723 615 477 526 66 70 53 55 2,753 2,651 Plan assets 1,505 1,416 571 576 569 591 81 86 65 70 2,791 2,739 Net liability( -)/asset(+) 71 31 -152 -39 92 65 15 16 12 15 38 88 - of which plans with net assets 167 126 44 133 93 66 18 20 12 15 334 360 - of which plans with net liabilities 96 95 196 172 1 1 3 4 – – 296 272 ===== SIDA 255 ===== Nordea Annual Report 2025 254 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 P ensions, cont. Movements in obligations EURm Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Opening balance 1,385 1,447 615 689 526 584 70 71 55 58 2,651 2,849 Current service cost 16 15 5 4 1 1 – – – – 22 20 Interest cost 47 43 25 24 16 17 2 2 3 3 93 89 Pensions paid -75 -73 -31 -32 -39 -40 -7 -7 -3 -2 -155 -154 Past service cost and settlements 0 1 – 1 1 0 – – – – 1 2 Remeasurement from changes in demographic assumptions – 4 – 35 – – 1 -1 1 0 2 38 Remeasurement from changes in financial assumptions -35 -46 99 -69 -20 -35 -2 1 -1 -5 41 -154 Remeasurement from experience adjustments 23 25 -5 5 -8 -1 2 4 0 -1 12 32 Translation differences 80 -41 -4 -33 – – 0 0 -2 2 74 -72 Change in provision for SWT/SSC1 -7 10 19 -9 – – – – – – 12 1 Closing balance 1,434 1,385 723 615 477 526 66 70 53 55 2,753 2,651 - of which relates to the active population 20% 19% 9% 9% 9% 10% – – – – 15% 14% 1) Change in the pr ovision for SWT in Sweden and SSC in Norway. The average duration of the obligations is 14 (15) years in Sweden, 13 (11) years in Norway, 10 (10) years in Finland, 8 (8) years in Denmark and 12 (13) years in the UK based on discounted cash flows. Movements in the fair value of plan assets EURm Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Opening balance 1,416 1,411 576 586 591 629 86 88 70 73 2,739 2,787 Interest income (calculated using the discount rate) 48 42 24 21 18 18 2 2 4 3 96 86 Pensions paid – – -24 -24 -39 -40 -7 -7 -3 -3 -73 -74 Contributions/refunds by/to employer 0 0 3 4 -1 0 1 2 – – 3 6 Remeasurement (actual return less interest income) -41 3 -6 18 0 -16 -1 1 -2 -7 -50 -1 Translation differences 82 -40 -2 -29 – – 0 0 -4 4 76 -65 Closing balance 1,505 1,416 571 576 569 591 81 86 65 70 2,791 2,739 ===== SIDA 256 ===== Nordea Annual Report 2025 255 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 P ensions, cont. Asset composition Assets are invested in diversified portfolios as further dis- closed below, with bond exposures mitigating the interest rate risk related to the obligations and a fair amount of real assets reducing the long-term inflationary risk related to the liabilities. The asset return in 2025 was positive in all countries. Results were primarily driven by strong equity perfor- mance while increasing discount rates during the period decreased the overall return to 1.7% (3.0%). At the end of the year, the equity exposure in Nordea´s pension funds/foundations represented 22% (22%) of total assets. The Group expects to contribute EUR 2m to its funded defined benefit plans in 2026. Asset composition in funded schemes % Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Bonds 87% 86% 71% 71% 60% 60% 85% 85% 100% 96% 79% 77% - sovereign 35% 35% 33% 32% 24% 28% 22% 21% 100% 96% 34% 34% - covered bonds 34% 33% 30% 31% 8% 7% 63% 64% – – 28% 27% - corporate bonds 18% 18% 8% 8% 28% 25% – – – – 17% 16% - issued by Nordea entities 2% 2% 7% 5% – – – – – – 2% 2% - with quo ted market price in an active market 87% 86% 71% 71% 60% 60% 85% 85% 100% 96% 79% 77% Equities 28% 28% 15% 14% 20% 20% 8% 9% – 4% 22% 22% - domestic 5% 5% 5% 4% 5% 5% – 9% – 3% 5% 5% - European 4% 4% 5% 5% – 5% 4% – – – 3% 4% - US 5% 5% 5% 5% 10% 5% 4% – – 1% 6% 5% - emerging 5% 5% – – 5% 5% – – – – 3% 3% - private equity 9% 9% – – – – – – – – 5% 5% - Nordea shares – – – – – – – – – – – – - with quo ted market price in an active market 19% 18% 15% 14% 20% 20% 8% 9% – 4% 17% 17% Real estate 1% 1% 11% 9% 19% 19% – – – – 7% 7% - occupied by Nordea – – – – 10% 11% – – – – 2% 2% Interest rate swaps -11% -10% – – 0% – – – – – -6% -5% Insurance contracts – – 2% – 0% 1% 0% 6% – – 0% 1% Cash and cash equivalents -5% -5% 1% 6% 1% 0% 7% 0% 0% 0% -2% -2% ===== SIDA 257 ===== Nordea Annual Report 2025 256 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.2 P ensions, cont. Defined benefit pension cost The total net pension cost related to defined benefit plans (DBPs) recognised in the Group’s income statement (as staff costs) for the year amounted to EUR 25m (EUR 32m). EUR 132m (EUR -99m) was recognised in other compre- hensive income. The amounts include SWT in Sweden and SSC in Norway (see specification of total pension costs recognised in the income statement in the table “Pension costs”). Recognised in the income statement EURm Sweden Norway1 Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Current service cost 16 15 5 4 1 1 – – – – 22 20 Net interest -1 1 1 3 -2 -1 0 0 -1 0 -3 3 Past service cost and settlements 0 1 – 1 1 0 – – 0 0 1 2 SWT/SSC 3 6 2 1 – – – – – – 5 7 Pension costs related to DBPs (expense+/income-) 18 23 8 9 0 0 0 0 -1 0 25 32 1) “Curr ent service cost” of EUR 5m (EUR 4m) and “Net interest” of EUR 1m (EUR 1m) related to defined contribution plans where payment obligations have not been transferred . Recognised in other comprehensive income EURm Sweden Norway Finland Denmark UK Total 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Remeasurement from changes in demographic assumptions – 4 – 35 – – 1 -1 1 0 2 38 Remeasurement from changes in financial assumptions -35 -46 99 -69 -20 -35 -2 1 -1 -5 41 -154 Remeasurement from experience adjustments 23 25 -5 5 -8 -1 2 4 0 -1 12 32 Remeasurement of plan assets (actual return less interest income) 41 -3 6 -18 0 16 1 -1 2 7 50 1 SWT/SSC 8 -8 19 -8 – – – – – – 27 -16 Pension costs related to DBPs (expense+/income-) 37 -28 119 -55 -28 -20 2 3 2 1 132 -99 ===== SIDA 258 ===== Nordea Annual Report 2025 257 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Shar e-based payment plans Accounting policies Equity-settled plans An equity-settled share-based payment transaction occurs when Nordea receives goods or services and uses its own equity instruments as consideration. Such transactions are recognised as a staff expense and a corresponding increase in equity. The expense is measured at the fair value of the goods or services received unless that fair value cannot be estimated reliably. In such cases, the expense is measured by reference to the fair value of the equity instruments awarded, which is the method used by Nordea. When Nordea issues such instruments, the award date fair value of these rights is expensed on a straight-line basis over the vesting period. The fair value per right is estimated at award date and not subsequently updated. The vesting period is the period over which the employees have to remain in service at Nordea in order for their rights to vest. For rights with non-market performance conditions, the amount expensed is the award date fair value per right multiplied by the best estimate of rights that will eventually vest, which is reassessed at each reporting date. For rights with market performance conditions, the total fair value is estimated based on the fair value of each right times the maximum number of rights at award date. Market conditions are taken into account when estimating the fair value of the equity instru- ments awarded. Therefore, if all other vesting condi- tions (e.g. service conditions) are met, Nordea recog- nises the expense for awards of equity instruments with market conditions over the vesting period irre- spective of whether that market condition is satisfied. Social security costs are also allocated over the vesting period. The provision for social security costs is reassessed on each reporting date to ensure that the provision is based on the rights’ fair value at the reporting date. Cash-settled plans A cash-settled share-based payment transaction occurs when Nordea acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or services for amounts that are based on the price of equity instruments of Nordea . For cash-settled share-based payment transactions, the goods or services acquired and the liability incurred are measured at the fair value of the liability. The liability is remeasured at fair value at the end of each reporting period, with any changes in fair value recognised in the line item “Net result from items at fair value” in the income statement. Nordea’s share-based remuneration plans Nordea has several variable pay plans for selected Nordea employees (participants). The terms of the plans vary depending on the target group. Disclosures related to the share-based plans can be found below. All remuneration plans are also described in the section “Remuneration” in the Board of Directors’ report. Until the end of the performance/financial year 2018, Nordea’s share-based variable remuneration plans were partly in the form of equity-linked total shareholders’ return indexation (excluding dividends) and partly in the form of cash. The plans were consequently generally settled in cash and the portion indexed with Nordea’s total shareholders’ return was accounted for as a cash-settled share-based payment plan. The total shareholders’ return indexation resulted in a loss of EUR 0.8m in 2025 related to the remaining deferred payments stemming from these plans. Starting from the 2019 performance year, share-based variable pay plans are partly in the form of cash not linked to the Nordea share and partly in the form of Nordea shares, which makes the portion paid in Nordea shares equity-settled share-based plans. Total shareholders’ return indexation may be used for share-based variable pay plans, subject to operational, administrative or tax issues as well as regulations that apply to certain legal entities. The table below covers all plans with share-based plan expenses recognised in 2025 as well as the comparative figures for 2024. Figures for 2025 are based on the expected outcome and all figures are excluding social security expenses. The expense for 2025 is based on an assumption about the number of shares that will be awarded and deferred for delivery in later years. Share-based payment plans Plan year Equity-settled or cash-settled Delivery period Expense 2025 Expense 2024 Liability 31 Dec 2025 Liability 31 Dec 2024 Outstanding rights 2025 - LTIP 2025–2027 Equity-settled 2028–2033 2 – – – Yes1 - NIP and bonus Equity-settled 2026–2031 12 – – – Yes2 - Buy-outs etc. Equity-settled 2025–2029 – – – – Yes 2024 - LTIP 2024–2026 Equity-settled 2027–2032 2 2 – – Yes3 - NIP and bonus Equity-settled 2025–2030 5 11 – – Yes - Buy-outs etc. Equity-settled 2024–2028 0 0 – – Yes 2023 - LTIP 2023–2025 Equity-settled 2026–2031 3 3 – – Yes4 - NIP and bonus Equity-settled 2024–2029 -2 4 – – Yes - Buy-outs etc. Equity-settled 2023–2027 0 0 – – Yes Previous years Cash-settled 2022–2027 1 0 2 3 No Equity-settled 2022–2030 -7 -5 – – Yes Total 16 15 2 3 1) Righ ts will be awarded following the end of the three-year performance period (2025–2027) over the delivery period (2028–2033). 2) Righ ts will be awarded in 2026 based on the performance in 2025. 3) Righ ts will be awarded following the end of the three-year performance period (2024–2026) over the delivery period (2027–2032). 4) Righ ts will be awarded following the end of the three-year performance period (2023–2025) over the delivery period (2026–2031). Nordea’s Long Term Incentive Plans Nordea operates Long Term Incentive Plans (LTIP) for the Chief Executive Officer (CEO), members of the Group Leadership Team (GLT) in the first line of defence and approximately 60 additional senior leaders each year. The LTIP has been in place in Nordea since 2020. On 29 January 2025 the Board decided to launch an LTIP (LTIP 2025–2027) to the same target group as in 2024. The LTIPs cover a performance period of three years, respectively, from when they were launched, and are fully equity-settled. The LTIPs deliver conditional shares to the participants, i.e. a promise for the participant to receive shares if certain performance criteria are met. The maximum number of shares allocated to the partic- ipants is decided when the LTIPs are launched and the final number of shares to be awarded to each participant will be determined after the end of the three-year perfor- mance period. No shares are awarded at the time when the LTIPs are launched and the conditional shares allo- cated to the participants. After the end of the performance period and once the Board has decided on the share award from the LTIP, deferral is applied to part of the share award for delivery annually in equal instalments over the following five-year period. Shares delivered to the participants are subject to a 12-month retention period during which the participants cannot sell them or perform any other transactions. The LTIPs are expensed in line with IFRS2 on a straight- line basis over the vesting period, as outlined on the fol- lowing pages covering each of the LTIPs. ===== SIDA 259 ===== Nordea Annual Report 2025 258 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. LTIP LTIP 2021–2023 LTIP 2022–2024 LTIP 2023–2025 LTIP 2024–2026 LTIP 2025–2027 Launch decision by the Board 31 March 2021 31 March 2022 1 February 2023 2 February 2024 29 January 2025 Performance period 1 January 2021–31 December 2023 1 January 2022–31 December 2024 1 January 2023–31 December 2025 1 January 2024–31 December 2026 1 January 2025–31 December 2027 Target group CEO and members of the GLT in first line of defence and up to 50 additional senior leaders CEO and members of the GLT in first line of defence and up to 50 additional senior leaders CEO and members of the GLT in first line of defence and approximately 50 senior leaders CEO and members of the GLT in first line of defence and approximately 50 senior leaders CEO and members of the GLT in first line of defence and approximately 60 senior leaders Maximum num ber of shares expected to be allocated at origination 1,397,500 1,535,000 1,769,622 1,748,731 1,847,120 Award date First quarter of 2024 First quarter of 2025 First quarter of 2026 First quarter of 2027 First quarter of 2028 Performance criteria Equally weighted: Absolute total shareholder return (aTSR) Relative total shareholder return (rTSR) Cumulative earnings per share (EPS) Equally weighted: Absolute total shareholder return (aTSR) Relative total shareholder return (rTSR) Cumulative earnings per share (EPS) Absolute total shareholder return (aTSR) - 20% Relative total shareholder return (rTSR) - 20% Cumulative earnings per share (EPS) - 40% ESG scorecard - 20% Absolute total shareholder return (aTSR) - 20% Relative total shareholder return (rTSR) - 20% Cumulative earnings per share (EPS) - 40% ESG scorecard - 20% Absolute total shareholder return (aTSR) - 20% Relative total shareholder return (rTSR) - 20% Cumulative earnings per share (EPS) - 40% ESG scorecard - 20% Service condition Employment is not terminated before the confirmation of the award Employment is not terminated before the confirmation of the award Employment is not terminated before the confirmation of the award Employment is not terminated before the confirmation of the award Employment is not terminated before the confirmation of the award Performance condition aTSR Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 13.10. No allotment for aTSR below EUR 7.60 Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 14.97. No allotment for aTSR below EUR 9.84 Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 15.62. No allotment for aTSR below EUR 10.27 Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 16.91. No allotment for aTSR below EUR 11.12 Absolute growth in the Nordea share price (with dividends reinvested) Maximum allotment for aTSR above EUR 16.60. No allotment for aTSR below EUR 10.91 Performance condition rTSR Growth in the Nordea share price (with dividends reinvested) compared with a group of nine peers Maximum allotment for rTSR if Nordea is first among peers. No allotment for rTSR if Nordea is sixth or lower among peers Growth in the Nordea share price (with dividends reinvested) compared with a group of five peers Maximum allotment for rTSR if Nordea is first among peers. No allotment for rTSR if Nordea is fifth or lower among peers Growth in the Nordea share price (with dividends reinvested) compared with a group of five peers Maximum allotment for rTSR if Nordea is first among peers. No allotment for rTSR if Nordea is fifth or lower among peers Growth in the Nordea share price (with dividends reinvested) compared with a group of five peers Maximum allotment for rTSR if Nordea is first among peers. No allotment for rTSR if Nordea is fifth or lower among peers Nordea’s total shareholder return relative to the STOXX Europe 600 banks index (gross return) in the period 2025–2027. Maximum allotment for rTSR if Nordea out-performs index by 20%. No allotment for rTSR if Nordea’s rTSR is below index Performance condition EPS Total earnings per share for the period 2021–2023 Maximum allotment for EPS above EUR 2.56. No allotment for EPS below EUR 2.00 Total earnings per share for the period 2022–2024 Maximum allotment for EPS above EUR 3.20. No allotment for EPS below EUR 2.40 Total earnings per share for the period 2023–2025 Maximum allotment for EPS above EUR 3.95. No allotment for EPS below EUR 3.11 Total earnings per share for the period 2024–2026 Maximum allotment for EPS above EUR 4.61. No allotment for EPS below EUR 3.63 Total earnings per share for the period 2025–2027 Maximum allotment for EPS above EUR 4.65. No allotment for EPS below EUR 3.65 LTIP LTIP 2021–2023 LTIP 2022–2024 LTIP 2023–2025 LTIP 2024–2026 LTIP 2025–2027 Performance condition ESG – – 7 equally weighted KPIs related to ESG targets. Maximum allotment if all 7 targets are reached. No allotment if no targets are reached 6 equally weighted KPIs related to ESG targets. Maximum allotment if all 6 targets are reached. No allotment if no targets are reached 6 equally weighted KPIs related to ESG targets. Maximum allotment if all 6 targets are reached. No allotment if no targets are reached Risk-adjustment underpin rTSR No payout occurs if Nordea average ROE (as reported) 2021–2023 is below 3% or absolute TSR 2021–2023 is not at least 0% No payout occurs if Nordea average ROE (as reported) 2022–2024 is below 3% or absolute TSR 2022–2024 is not at least 0% No payout occurs if Nordea average ROE (as reported) 2023–2025 is below 3% or absolute TSR 2023–2025 is not at least 0% No payout occurs if Nordea average ROE (as reported) 2024–2026 is below 3% or absolute TSR 2024–2026 is not at least 0% No payout occurs if Nordea average ROE (as reported) 2025–2027 is below 3% or absolute TSR 2025–2027 is not at least 0% Cap Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Total allocation cannot exceed 200% of the participant’s salary for LTIP and STIP combined Delivery mechanism 40% of the potential share award is delivered to the participant in the second quarter of 2024. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2025 to the second quarter of 2029 40% of the potential share award is delivered to the participant in the second quarter of 2025. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2026 to the second quarter of 2030 40% of the potential share award is delivered to the participant in the second quarter of 2026. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2027 to the second quarter of 2031 40% of the potential share award is delivered to the participant in the second quarter of 2027. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2028 to the second quarter of 2032 40% of the potential share award is delivered to the participant in the second quarter of 2028. The remaining 60% will be deferred and delivered annually in five equal instalments during the second quarter of 2029 to the second quarter of 2033 Leaver rules Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Unvested shares will not be delivered if the employment is terminated before the award has been granted, however, subject to local regulations and leaver provisions, unless the criteria for a “good leaver” are fulfilled Ex-ante adjustment mechanism If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled If the financial circumstances of Nordea deteriorate or if the participant breaches internal policies, the awards to be given can be reduced or cancelled Ex-post adjustment mechanism Clawback can be applied in similar situations to ex-ante adjustments Clawback can be applied in similar situations to ex-ante adjustments Clawback can be applied in similar situations to ex-ante adjustments Clawback can be applied in similar situations to ex-ante adjustments Clawback can be applied in similar situations to ex-ante adjustments ===== SIDA 260 ===== Nordea Annual Report 2025 259 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. General conditions for the LTIPs The ex-ante and ex-post adjustment conditions stated in the overview above are assessed to not affect the valuation of the issued rights or the date when the rights are awarded as the likelihood is low and all participants are aware of these conditions from the start. General conditions LTIP 2021–2023 LTIP 2022–2024 LTIP 2023–2025 LTIP 2024–2026 LTIP 2025–2027 Ordinary share per right 1.0 1.0 1.0 1.0 1.0 Allocation date 31 Mar 2021 31 Mar 2022 1 Feb 2023 2 Feb 2024 29 Jan 2025 Vesting period 3 years 3 years 3 years 3 years 3 years Contractual life 8 years 8 years 8 years 8 years 8 years First day of access for the first portion Q2 2025 Q1 2026 Q1 2027 Q1 2028 Q1 2029 General conditions for calculating value at allocation date The fair value of the rights is calculated using a Monte Carlo simulation (rTSR and aTSR) and the Black & Scholes formula (EPS) based on the parameters presented below. The tables have been updated to reflect the LTIP structure and the actual outstanding number of conditional shares or shares that are awarded after the end of the perfor- mance period. General conditions LTIP 2021–2023 LTIP 2022–2024 LTIP 2023–2025 LTIP 2024–2026 LTIP 2025–2027 Weighted average share price at allocation date, EUR 8.41 9.38 10.62 11.33 11.58 Exercise price, EUR – – – – – Expected volatility 31.3%1 33.3%1 33.3%1 27.1%1 21.4%1 Award life See above See above See above See above See above Expected dividends 6.6% 4.2% 6.3% 8.1% 7.9% Risk-free interest rate 0.0% 0.28% 2.49% 2.80% 2.80% 1) The expected volatility is based on Nordea’s historical daily share price volatility over a period of three years. LTIP 2021–2023 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2024 Q2 2025 Q2 2026 Q2 2027 Q2 2028 Q2 2029 Max number of shares at origination 559,000 167,700 167,700 167,700 167,700 167,700 Number of shares awarded 472,323 139,099 139,099 139,099 139,099 139,103 Award life years 3 4 5 6 7 8 aTSR 2.90 2.77 2.64 2.52 2.41 2.30 rTSR 2.38 2.27 2.16 2.06 1.97 1.88 EPS 6.45 6.16 5.89 5.62 5.37 5.13 aTSR rTSR EPS Conditional rights 2025 2024 2025 2024 2025 2024 Outstanding at beginning of year 274,226 431,667 274,226 431,667 274,226 431,667 Allotted -46,366 -157,441 -46,366 -157,441 -46,367 -157,441 Expired – – – – – – Forfeited -42,393 – -42,393 – -42,393 – Outstanding at end of year 185,467 274,226 185,467 274,226 185,466 274,226 LTIP 2022–2024 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2025 Q2 2026 Q2 2027 Q2 2028 Q2 2029 Q2 2030 Max number of shares at origination 614,000 184,200 184,200 184,200 184,200 184,200 Number of shares awarded 307,626 92,287 92,287 92,287 92,287 92,291 Award life years 3 4 5 6 7 8 aTSR 3.11 2.98 2.86 2.74 2.62 2.52 rTSR 2.58 2.47 2.37 2.27 2.17 2.08 EPS 7.23 6.93 6.65 6.38 6.12 5.87 aTSR rTSR EPS Conditional rights 2025 2024 2025 2024 2025 2024 Outstanding at beginning of year 470,556 470,556 470,556 470,556 470,556 470,556 Allotted -102,542 – -102,542 – -102,542 – Expired -214,201 – -214,201 – -214,201 – Forfeited – – – – – – Outstanding at end of year 153,813 470,556 153,813 470,556 153,813 470,556 ===== SIDA 261 ===== Nordea Annual Report 2025 260 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. LTIP 2023–2025 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2026 Q2 2027 Q2 2028 Q2 2029 Q2 2030 Q2 2031 Max number of shares at origination 707,849 212,354 212,354 212,354 212,354 212,357 Max number of shares outstanding 568,165 170,449 170,449 170,449 170,449 170,453 Award life years 3 4 5 6 7 8 aTSR 4.25 3.98 3.73 3.49 3.27 3.07 rTSR 3.36 3.15 2.95 2.76 2.59 2.43 EPS 7.73 7.26 6.81 6.40 6.01 5.64 ESG 7.73 7.26 6.81 6.40 6.01 5.64 aTSR rTSR EPS ESG Conditional rights 2025 2024 2025 2024 2025 2024 2025 2024 Outstanding at beginning of year 335,924 336,924 335,924 336,924 671,849 673,849 335,924 336,924 Expired -46,674 – -46,674 – -93,350 – -46,674 – Forfeited -5,167 -1,000 -5,167 -1,000 -10,334 -2,000 -5,167 -1,000 Outstanding at end of year 284,083 335,924 284,083 335,924 568,165 671,849 284,083 335,924 LTIP 2024–2026 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2027 Q2 2028 Q2 2029 Q2 2030 Q2 2031 Q2 2032 Max number of shares at origination 699,491 209,848 209,848 209,848 209,848 209,848 Max numbers of shares outstanding 573,479 172,043 172,043 172,043 172,043 172,048 Award life years 3 4 5 6 7 8 aTSR 3.92 3.60 3.31 3.04 2.80 2.57 rTSR 3.87 3.56 3.27 3.01 2.76 2.54 EPS 3.99 3.68 3.39 3.13 2.89 2.66 ESG 3.99 3.68 3.39 3.13 2.89 2.66 aTSR rTSR EPS ESG Conditional rights 2025 2024 2025 2024 2025 2024 2025 2024 Outstanding at beginning of year 336,484 – 336,484 – 672,969 – 336,484 – Allocated – 349,746 – 349,746 – 699,493 – 349,746 Expired – – – – – – – – Forfeited -49,744 -13,262 -49,744 -13,262 -99,490 -26,524 -49,744 -13,262 Outstanding at end of year 286,740 336,484 286,740 336,484 573,479 672,969 286,740 336,484 ===== SIDA 262 ===== Nordea Annual Report 2025 261 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. LTIP 2025–2027 – Fair value at allocation date and conditional rights outstanding Allotment date Fair value at allocation date Q2 2028 Q2 2029 Q2 2030 Q2 2031 Q2 2032 Q2 2033 Max number of shares at origination 738,848 221,654 221,654 221,654 221,654 221,654 Max number of shares outstanding 656,959 197,087 197,087 197,087 197,087 197,090 Award life years 3.00 4.00 5.00 6.00 7.00 8.00 aTSR 4.12 3.79 3.49 3.21 2.96 2.73 rTSR 3.40 3.13 2.89 2.66 2.45 2.25 EPS 8.39 7.75 7.16 6.62 6.11 5.65 ESG 8.39 7.75 7.16 6.62 6.11 5.65 Conditional rights aTSR 2025 rTSR 2025 EPS 2025 ESG 2025 Allocated 348,768 348,768 697,536 348,768 Forfeited -20,289 -20,289 -40,576 -20,289 Outstanding at end of year 328,479 328,479 656,960 328,479 Long Term Incentive Plan 2020–2022 The LTIP 2020–2022 was fully expensed in 2024. 60% of the awarded shares were deferred in 2023 with ex-post risk adjustment clauses as per regulatory requirements, with annual vesting pro rata over the five-year period. The last portion vests in 2028. The conditional shares that did not vest expired. The total number of outstanding shares from the LTIP 2020–2022 end of year is 194,929 (2024: 259,894). Expired Long Term Incentive Plans – 2012 The LTIP 2012 was fully expensed in May 2015. All shares in the LTIP 2012 are fully vested and consequently not condi- tional. 60% of the vested shares were deferred with forfei- ture clauses in line with regulatory requirements and allotted over a five-year period, for the LTIP 2012 starting in May 2015. The share balance outstanding is 3,015 matching shares, 9,045 performance shares I and 3,015 performance shares II at the end of the year. Share-based variable remuneration plans other than LTIP plans This section covers the variable share-based plans where TSR indexation (cash-settled plan up until 2018) and shares (equity-settled plans as from 2019) are used for deferral/retention. For the 2025 performance year, the plans are classified as the Nordea Incentive Plan (NIP) and bonus schemes (bonus). The plans are annual plans with a service condition for the respective years and are fully expensed in the year when they are earned (one-year vesting period). The indi- vidual allocations are awarded at the beginning of the subsequent year. The aim of the NIP is to strengthen Nordea’s capability to recruit, motivate and retain the GLT, senior leaders as well as selected people leaders and specialists, and to reward strong performance. The NIP 2025 rewards perfor- mance meeting agreed predetermined targets on Group, business unit and individual level. The effect on the long- term results is to be considered when determining the tar- gets. NIP awards will not exceed the fixed salary and are subject to deferral for material risk takers. It includes ex-ante and ex-post risk adjustment clauses and retention applies in line with relevant remuneration regulations. In 2025 bonus was offered only to selected groups of employees in specific business areas or units as approved by the Board, e.g. in Large Corporates & Institutions, Nordea Asset Management, Nordea Funds and within Treasury in Group Finance. The aim is to ensure strong performance and maintain cost flexibility for Nordea. Individual awards are determined based on detailed per- formance assessments covering a range of financial and non-financial goals. 2025 bonus awards will be paid in cash. For material risk takers, awards are partly delivered in shares with subsequent retention. Parts of the bonus awards for material risk takers are subject to a four- to five-year pro rata deferral period with forfeiture conditions applying during the deferral period. Deferrals from the NIP, Executive Incentive Programme (EIP), VSP and bonus plans not yet delivered to the partic- ipants as of 31 December 2025 are summarised in the fol- lowing tables, including deferrals from the Leaders of Transformation Variable plan (offered in 2018–2019) and deferrals stemming from compensation for contracts in previous employments (buy-outs). Such agreements can be offered only in exceptional cases, in the context of hir- ing new staff, limited to the first year of employment. ===== SIDA 263 ===== Nordea Annual Report 2025 262 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.3 Share-based payment plans, cont. Share-linked deferrals (cash-settled) The table below shows the remaining liabilities for the cash-settled share-based plans, mainly used 2014–2018. EURm 2025 2024 Opening balance 3 6 Deferred/earned during the year – 0 TSR indexation during the year 1 0 Payments during the year -2 -3 Translation differences – 0 Closing balance 2 3 The closing balances are expected to be settled the following years: EURm 2025 2024 2025 – 2 2026 1 1 2027 1 0 2028 – 0 2029 – 0 2030 – 0 Total 2 3 2019–2024 share-linked deferrals (equity-settled) Starting from the 2019 performance year, share-based var- iable pay plans are partly in the form of cash and partly in the form of Nordea shares, which makes the portion paid in Nordea shares an equity-settled share-based plan. In the Nordea Incentive Plan (NIP) 2024, EUR 32m was expensed for variable remuneration to be paid in cash and EUR 11m to be paid in shares. In 2025 these were adjusted to EUR 9m for the portion delivered in shares and an addi- tional expense of EUR 6m in cash, while the bonus plans added an additional equity-settled expense of EUR 7m. In 2025 2,368,139 shares in Nordea were allotted to the par- ticipants in these plans, corresponding to EUR 27m based on the share price at the award date. In total 2,628,957 shares were awarded to the participants. These shares had a fair value of EUR 30m based on the share price at the award date. The awarding of shares in the plans for 2025 is decided during spring 2026 and thus not included in the below tables but in full recognised as an expense in the income statement in 2025. Number of shares 2025 2024 Outstanding at beginning of year 3,779,376 3,090,368 Awarded1 2,628,957 3,246,800 Forfeited – – Allotted2 -2,368,139 -2,557,792 Outstanding at end of year 4,040,194 3,779,376 - of which currently exercisable – – 1) Awarded rights in 2025 are the number of shares from 2024 variable pay plans awarded in 2025. Allotment of rights has been deferred following retention requirements by the Nordic FSAs. There is no exercise price for the deferred rights. 2) Allotted rights are subject to a one-year retention period after allotment to par- ticipants. Includes shares that have been allotted to participants but withheld to cover income taxes or social charges. The outstanding rights are expected to be allotted the following years: 2025 2024 2025 – 1,217,987 2026 1,434,659 1,096,049 2027 1,080,339 747,347 2028 849,278 516,986 2029 527,058 201,007 2030 148,860 – Total 4,040,194 3,779,376 G8.4 Key management personnel remuneration Accounting policies For information about the accounting policies see Note G8.1 “Fixed and variable salaries”, Note G8.2 “Pensions” and Note G8.3 “Share-based payment plans”. For definition of key management personnel see Note G10.4 “Related party transactions”. Board remuneration The 2025 Annual General Meeting (AGM) decided on annual remuneration for the Board of Directors (Board), for the Chair amounting to EUR 400,000, for the Vice Chair EUR 180,000 and for other members EUR 112,000. Annual remuneration for Board committee work on the Board Remuneration and People Committee amounts to EUR 54,500 for the committee chair and EUR 31,000 for the other members. For all other committee chairs the annual remuneration paid for Board committee work amounts to EUR 71,500 and for other members EUR 35,500. In addition, a meeting fee of EUR 1,000 will be paid for each Board meeting and a meeting fee of EUR 500 will be paid for each Board committee meeting and any meeting in subcommittees established by the Board. No remuneration is paid to members who are employed by the Nordea Group. In addition, Nordea covers or reimburses the members of the Board all costs and expenses related to or arising from the Board membership. Any benefits are included at taxable values. There are no commitments for severance pay, pension or other remuneration for the members of the Board at 31 December 2025. No Board member earns variable remuneration and employee representatives are not included in the table below. Remuneration of the Board of Directors EUR 2025 2024 Chair of the Board: Sir Stephen Hester 452,875 413,875 Vice Chair of the Board: Lene Skole 222,000 203,875 Other Board members: Arja Talma 187,750 172,125 Birger Steen1 – 43,125 John Maltby 227,500 211,250 Jonas Synnergren 155,500 142,375 Kjersti Wiklund 229,500 211,250 Lars Rohde2 170,313 107,625 Per Strömberg 187,250 172,125 Petra von Hoeken 229,500 211,250 Risto Murto 155,500 142,375 Total 2,217,688 2,031,250 1) Resigned as a member of the Board as from the 2024 AGM. 2) New member of the Board as from the 2024 AGM. ===== SIDA 264 ===== Nordea Annual Report 2025 263 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.4 Key management personnel remuneration, cont. Remuneration of the Chief Executive Officer, the Deputy Managing Director and the Group Leadership Team The Board Remuneration and People Committee prepares changes in the remuneration package for the Chief Executive Officer (CEO), the Deputy Managing Director and the other members of the Group Leadership Team (GLT), for resolution by the Board. This includes the fixed remuneration, the outcome of the 2025 Nordea Incentive Plan (NIP), the allocation of conditional shares under the Long Term Incentive Plan (LTIP) and subsequent awarding of shares from the LTIP, as well as other changes. See Note G8.3 “Share-based payment plans” for further details on the Short Term Incentive Plans (STIPs) (NIP/ EIP) and the LTIPs. The presentation of remuneration used in the Remuneration Report for Governing Bodies is different from the presentation and accounting policies under IFRS applied in the Annual Report, especially related to the Long Term Incentive Plan. Fixed remuneration The fixed salary is paid in local currencies and converted into euro based on the average exchange rate each year. The fixed salary includes holiday pay and car allowance where applicable. Benefits primarily include car benefits, tax consultation and housing. Benefits are included at taxable values after salary deductions (if any). The pension expense is related to pension premiums paid under defined contribution plans and pension rights earned during the year under defined benefit plans (“Current service cost” as well as “Past service cost and settlements” as defined in IAS 19). EUR 2,694,876 (EUR 2,550,694) of the total pension expense relates to defined contribution plans, correspond- ing to 100.0% (98.4%). Remuneration of the Chief Executive Officer, the Deputy Managing Director and the Group Leadership Team Fixed remuneration Variable remuneration Fixed salary Pension expense (DCP & DBP) Benefits Total fixed remuneration STIP (NIP) LTIP Total variable remuneration Total remuneration EUR 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 20251 20242, 2025 2024 2025 2024 Chief Executive Officer: Frank Vang-Jensen 1,617,868 1,611,650 489,387 460,482 181,309 189,813 2,288,564 2,261,945 914,698 1,002,281 720,746 934,207 1,635,444 1,936,488 3,924,008 4,198,433 Deputy Managing Director: Jussi Koskinen 607,964 595,109 229,929 223,221 23,576 19,062 861,469 837,392 345,550 396,327 270,636 331,775 616,186 728,102 1,477,655 1,565,494 Group Leadership Team: 11 (10) individuals excluding Chief Executive Officer and Deputy Managing Director 8,299,728 7,047,978 1,975,560 1,907,841 219,934 201,505 10,495,222 9,157,324 4,429,578 4,467,169 2,082,508 3,324,737 6,512,086 7,791,906 17,007,308 16,949,230 Total3 10,525,560 9,254,737 2,694,876 2,591,544 424,819 410,380 13,645,255 12,256,661 5,689,826 5,865,777 3,073,890 4,590,719 8,763,716 10,456,496 22,408,971 22,713,157 1) Defined as the expense calculated under IFRS 2 for LTIP 2022–2024, LTIP 2023–2025, LTIP 2024–2026, LTIP 2025–2027. 2) Defined as the expense calculated under IFRS 2 for LTIP 2020–2022, LTIP 2021–2023, LTIP 2022–2024, LTIP 2023–2025, LTIP 2024–2026. 3) Committed and expensed remuneration of EUR 1,196,728 payable 2025-2027 to one GLT member leaving Nordea in 2025 is not included in the table above (in 2024 EUR 4,248,759 for two members). Variable remuneration The STIP 2025 (NIP) award for the CEO, the Deputy Managing Director and the GLT is based on specific goals and targets and is capped at maximum 75% of the fixed base salary, except for the Chief Risk Officer and the Chief Compliance Officer, who have a cap of 100% as these roles do not participate in the LTIP. 40% of the NIP 2025 award will be paid out in 2026. The remaining 60% will be paid annually on a pro rata basis over five years with 12% vesting each year. 50% of the 2025 NIP award is delivered in Nordea shares (excluding divi- dends) at each transfer event. The shares are subject to retention for 12 months when the deferral period ends. The award from the NIP 2025 has been expensed in full in 2025. Further, the CEO, the Deputy Managing Director and the GLT members participate in the share-based LTIPs as decided by the Board and launched in accordance with the Remuneration Policy for Governing Bodies adopted by an advisory vote at Nordea’s 2020 AGM and 2024 AGM and applicable until the 2028 AGM. Remuneration of the Chief Executive Officer Frank Vang-Jensen was appointed CEO on 5 September 2019. The annual fixed base salary (not including holiday pay etc.) for the CEO amounts to EUR 1,551,928 as from 1 January 2025. The CEO is covered by a defined contribution plan with a pension contribution amounting to 8.5% of the fixed base salary in addition to the Finnish statutory pension scheme. According to the statutory pension rules, the part of the NIP 2025 for the GLT outcome paid in cash in 2026 must be included in pensionable income. Benefits primarily included car, housing, security and travelling-related benefits as well as cross-border tax compliance advice, amounting to EUR 181,309. The NIP 2025 was based on specific targets and capped at a maximum of 75% of the fixed base salary. For 2025 the award from the NIP amounted to EUR 914,698. For 2025 the IFRS 2 expense amounted to EUR 50,048 for the LTIP 2022–2024, EUR 282,478 for the LTIP 2023– 2025, EUR 202,886 for the LTIP 2024–2026 and EUR 185,334 for the LTIP 2025–2027. The CEO must hold a significant number of the shares awarded under the LTIPs until the total value of share- holdings corresponds to 100% of the CEO’s annual gross salary. Such shares must be held until the CEO steps down. The total expensed remuneration for 2025 amounted to EUR 3,924,008. Remuneration of the Deputy Managing Director Jussi Koskinen was appointed Deputy Managing Director on 10 September 2019. The annual fixed base salary (not including holiday pay etc.) for the Deputy Managing Director amounts to EUR 604,799 as from 1 January 2025. The Deputy Managing Director is covered by a defined contribution plan with a pension contribution amounting to 8.5% of the fixed base salary in addition to the Finnish statutory pension scheme. According to the statutory pen- sion rules, the part of the NIP 2025 for the GLT outcome paid in cash in 2026 must be included in pensionable income. The benefits for 2025 amounted to EUR 23,576 and pri- marily included car benefits. ===== SIDA 265 ===== Nordea Annual Report 2025 264 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.4 Key management personnel remuneration, cont. The NIP 2025 was based on specific targets and could amount to a maximum of 75% of the fixed base salary. For 2025 the award from the NIP amounted to EUR 345,550. For 2025 the IFRS 2 expense amounted to EUR 25,024 for the LTIP 2022–2024, EUR 108,258 for the LTIP 2023– 2025, EUR 73,794 for the LTIP 2024–2026 and EUR 63,560 for the LTIP 2025–2027. The Deputy Managing Director must hold a significant number of the shares awarded under the LTIPs until the total value of shareholdings corresponds to 100% of the Deputy Managing Director’s annual gross salary. Such shares must be held until the Deputy Managing Director steps down from the Group Leadership Team position. The total earned remuneration for 2025 amounted to EUR 1,477,655. Remuneration of the Group Leadership Team Remuneration for other GLT members is included for the period they have been appointed and eligible for the NIP 2025 and LTIPs. On 1 January 2025 a new GLT member was appointed. Additionally, two new GLT members were appointed on 1 February 2025. Two GLT members stepped down in 2024 and related committed remuneration was expensed and disclosed in 2024. On 13 October 2025 one new GLT mem- ber was appointed and one GLT member stepped down. No sign-on or buy-out payments were agreed in 2025. The NIP 2025 was based on specific targets and capped at a maximum of 75% of the fixed base salary for the GLT members offered the LTIP 2025–2027 and 100% for other members. For 2025 the award from the NIP amounted to EUR 4,429,578. For 2025 the IFRS 2 expense amounted to EUR 158,485 for the LTIP 2022–2024, EUR 764,055 for the LTIP 2023– 2025, EUR 505,268 for the LTIP 2024–2026 and EUR 654,700 for the LTIP 2025–2027. The GLT members must hold a significant number of the shares awarded under the LTIPs until the total value of shareholdings corresponds to 100% of the GLT member’s annual gross salary. Such shares must be held until the GLT member steps down from the GLT position. The pension agreements for the 11 GLT members vary according to local country practices. Pension agreements are defined contribution plans, for one member combined with a paid-up defined benefit pension plan. As of 31 December 2025 two members had pension schemes in accordance with the Swedish collective agree- ment, BTP1 (defined contribution plan), with complement- ing defined contribution plans on top of the collective agreement. The pension contributions totalled 30% of their fixed salaries Two members had a defined contribution plan, in accordance with local practices in Denmark. The pension contribution totalled 30% of the fixed base salary. Five members were covered by the Finnish statutory pension scheme and in addition had a defined contribution plan corresponding to 8.5% of their fixed base salaries. Two members did not have a pension scheme agree- ment paid by Nordea. Deferred variable remuneration in Nordea shares Part of the award from the EIP 2020, EIP 2021, NIP 2022, NIP 2023, NIP 2024, LTIP 2020–2022, LTIP 2021–2023, LTIP 2022–2024 and buy-outs for the GLT has been deferred and will be paid in the future by delivering Nordea shares. Any Nordea shares to be awarded from the NIP 2025 as well as the LTIP 2023–2025 conditional share award as of 31 December 2025 are not included in the table below. Nordea shares – awarded and deferred 2025 2024 Chief Executive Officer: Frank Vang-Jensen 234,202 222,057 Deputy Managing Director: Jussi Koskinen 81,465 79,189 Group Leadership Team: 11 (10) individuals excl. Chief Executive Officer and Deputy Managing Director: 780,381 843,394 Total 1,096,048 1,144,640 Former Chief Executive Officer: Casper von Koskull – 10,242 Former Deputy Chief Executive Officer: Torsten Hagen Jørgensen – 6,499 Total 1,096,048 1,161,381 Defined benefit pension obligations The pension plans are funded, meaning that the pension plan obligations are backed by plan assets with the fair value generally being at a level similar to that of the obligations. The pension obligations (value of defined benefit plan liabilities) are calculated in accordance with IAS 19. For further details see Note G8.2 “Pensions”. There was no Defined benefit pension costs related to key management personnel in 2025 (EUR 0m). The pension obligations in the below table reflect the valuation under IAS 19 as of 31 December 2025 and 2024, respectively. The decrease compared with 2024 is mainly due to two GLT members have stepped down, pension payments to retired executives during the year, changes in the discount rates used in the measurement of the obliga- tions at the end of 2025. There are no defined benefit pension obligations towards the CEO and the Deputy Managing Director. Defined benefit pension obligations EUR 2025 2024 Group Leadership Team: 1 (3) individual(s) in Sweden 18,058 986,796 Former Chairman of the Board, former CEOs and Deputy CEOs: Lars G Nordström 224,898 234,610 Casper von Koskull 364,147 309,118 Total 607,102 1,530,524 Notice period and severance pay In accordance with the service contract, the CEO has a notice period of 12 months and Nordea a notice period of 12 months. The CEO is subject to payment of severance equal to 12 months’ salary, to be reduced by any salary received from other employment during these 12 months. Further, non-competition clauses apply. The Deputy Managing Director and 11 GLT members have a notice period of 6 months and Nordea a notice period of 12 months. Severance pay of up to 12 months’ salary is provided and will be reduced by any salary received from other employment during the severance pay period. Further, non-competition clauses apply. In 2025, in relation to one member leaving the GLT, remuneration payments during notice and non-compete periods in 2025-2027 were committed. The provision rec- ognised in 2025 amounted to EUR 1.2m (EUR 4.2m) and has been excluded from the tables in this note. Indemnification For indemnification of members of the Board and mem- bers of the GLT, see Note G7.1 “Contingent liabilities”. ===== SIDA 266 ===== Nordea Annual Report 2025 265 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G8.5 Gender distribution and number of employees Gender distribution In the parent company’s Board of Directors, 60% (60%) of the AGM elected Board members are men and 40% (40%) are women. In the Board of Directors of Nordea Group companies, 53% (62%) are men and 47% (38%) are women. The corresponding numbers for other executives are 53% (53%) men and 47% (47%) women. Internal boards mainly consist of Nordea´s management, employee representatives excluded. Average number of employees, full-time equivalents Total Of which women 2025 2024 2025 2024 Denmark 6,603 6,808 2,788 2,897 Sweden 6,446 6,430 3,236 3,263 Finland 6,331 6,378 3,568 3,637 Poland 5,688 5,599 2,775 2,746 Norway 3,150 2,971 1,479 1,400 Estonia 1,053 1,096 739 770 Luxembourg 126 138 55 60 United States 88 93 43 49 United Kingdom 64 64 21 21 China 26 26 15 14 Germany 11 12 2 3 Portugal 118 101 56 44 Italy 10 9 1 1 Spain 4 4 2 2 Switzerland 8 7 2 1 France 4 2 1 0 Singapore 7 6 4 5 Belgium 3 2 1 1 Chile 2 2 0 0 Austria 0 1 0 0 Total average 29,742 29,749 14,788 14,914 Total number of employees (FTEs), end of period 28,989 30,157 ===== SIDA 267 ===== Nordea Annual Report 2025 266 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9 Scope of consolidation G9.1 Consolidated entities Accounting policies The consolidated financial statements include the accounts of the parent company, Nordea Bank Abp and those entities that the parent company controls. Control exists when Nordea is exposed to variability in returns from its investments in another entity and has the ability to affect those returns through its power over the other entity. Control is generally achieved when the parent company owns, directly or indirectly through group undertakings, more than 50% of the voting rights. For entities where voting rights do not give control, see the section “Structured entities” below. All group undertakings are consolidated using the acquisition method. Under the acquisition method, the acquisition is regarded as a transaction whereby the parent company indirectly acquires the assets of the group undertaking and assumes its liabilities and contingent liabilities. The group’s acquisition cost is established using a purchase price allocation analysis. In such analysis, the cost of the business combination is the aggregate of the fair value, at the date of exchange, of assets given, liabilities incurred or assumed and equity instruments issued by the acquirer in exchange for the identifiable net assets acquired. Costs directly attributable to the business combination are expensed. As at the acquisition date Nordea recognises the identifiable assets acquired and the liabilities assumed at their acquisition date fair values. For each business combination Nordea measures the non-controlling interests in the acquired busi- ness either at fair value or at its proportionate share of the acquired identifiable net assets. When the aggregate of the consideration trans- ferred in a business combination and the amount recognised for non-controlling interests exceeds the net fair value of the identifiable assets, liabilities and contingent liabilities, the excess is reported as good- will. If the difference is negative, such difference is recognised immediately in the income statement. Equity and net income attributable to non-con- trolling interests are separately disclosed on the bal- ance sheet as well as in the income statement and the statement of comprehensive income. Intra-group transactions and balances between the consolidated group undertakings are eliminated. The group undertakings are included in the con- solidated accounts as from the date on which con- trol is transferred to Nordea and are no longer con- solidated as from the date on which control ceases. In the consolidation process the reporting of the group undertakings is adjusted to ensure consist- ency with the IFRS principles applied by Nordea. Critical judgements and estimation uncertainty One decisive variable when assessing if Nordea con- trols another entity is whether Nordea is exposed to variability in returns from the investment. For struc- tured entities where voting rights are not the domi- nant factor when determining control, critical judge- ment has to be exercised when defining when Nordea is exposed to significant variability in returns. Nordea’s critical judgement is that Nordea is normally exposed to variability in returns when Nordea receives more than 30% of the return pro- duced by the structured entity. This is only relevant for structured entities if Nordea is also the invest- ment manager and thus has influence over the return produced by the structured entity. Moreover, judgement relating to control is whether Nordea acts as an agent or as a principal. For investments relating to unit-linked and other contracts where the policyholder/depositor decides both the amount and in which assets to invest, Nordea is considered to act as an agent, and such holdings are thus not included in the control assessment. Judgement also has to be exercised when assess- ing if a holding of a significant, but less than a majority, share of voting rights constitute so-called de facto control and to what extent potential voting rights need to be considered in the control assess- ment. Nordea’s assessment is that Nordea does not currently control any entities where the share of vot- ing rights is below 50%. Parent company including branches, major directly owned subsidiaries and major subsidiaries of the directly owned companies Company Domicile Shareholding, % Voting power of holding, % Nordea Bank Abp Helsinki N/A N/A Denmark branch Copenhagen N/A N/A Estonia branch Tallinn N/A N/A London branch London N/A N/A New York branch New York N/A N/A Norway branch Oslo N/A N/A Poland branch Łódź N/A N/A Shanghai branch Shanghai N/A N/A Sweden branch Stockholm N/A N/A Nordea Kredit Realkreditaktieselskab Copenhagen 100.0 100.0 Nordea Hypotek AB (publ) Stockholm 100.0 100.0 Nordea Eiendomskreditt AS Oslo 100.0 100.0 Nordea Mortgage Bank Plc Helsinki 100.0 100.0 Nordea Finance Finland Ltd Helsinki 100.0 100.0 Nordea Finans Danmark A/S Høje Taastrup 100.0 100.0 Nordea Finans Sverige AB (publ) Stockholm 100.0 100.0 Nordea Finans Norge AS Oslo 100.0 100.0 Nordea Funds Ltd Helsinki 100.0 100.0 Nordea Asset Management Holding AB Stockholm 100.0 100.0 Nordea Investment Funds S.A. Luxembourg 100.0 100.0 Nordea Investment Management AB Stockholm 100.0 100.0 Nordea Life Holding AB Stockholm 100.0 100.0 Nordea Pension, Livsforsikringsselskab A/S Copenhagen 100.0 100.0 Nordea Life Assurance Finland Ltd Helsinki 100.0 100.0 Nordea Liv Forsikring AS Bergen 100.0 100.0 Nordea Livförsäkring Sverige AB (publ) Stockholm 100.0 100.0 ===== SIDA 268 ===== Nordea Annual Report 2025 267 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9.1 Consolidated entities, cont. There are different types of restrictions on how Nordea can access and transfer assets within the Group. Dividends are used to transfer excess capital from the parent’s subsidiaries to the parent company, Nordea Bank Abp. The specific dividend amount is determined for each legal entity based on distributable funds, capital adequacy regulations and ratios, capital and business planning, local tax considerations and Group-internal policies. Regulatory restrictions, both general and local, on dividends as well as projected changes in the entities’ capital requirements and risk exposure amounts are incorporated into the anal- ysis regarding the dividend decisions. The CRR requires credit institutions to hold liquid assets, the sum of the values of which covers the liquidity outflows less the liquidity inflows under stressed condi- tions so as to ensure that institutions maintain levels of liquidity buffers which are adequate. There are also local liquidity requirements that restrict the movement of funds between legal entities. The Group has pledged assets to collateralise its obliga- tions under repurchase agreements, securities financing transactions, collateralised loan obligations and for mar- gining purposes of OTC derivative liabilities. Further infor- mation is disclosed in Note G7.3 “Assets pledged”. For banks under resolution, which was not applicable to Nordea at the balance sheet date, there are potential restrictions as the regulators have far-reaching resolution tools they can impose if deemed necessary. Statutory, contractual or regulatory requirements as well as protective rights of non-controlling interests might restrict the ability of the Group to access and transfer assets freely to or from other entities within the Group and to settle liabilities of the Group. Since the Group did not have any material non-controlling interests at the balance sheet date, any protective rights associated with these did not give rise to significant restrictions. G9.2 Currency translation of foreign entities/branches Accounting policies The consolidated financial statements are presented in euro (EUR). When translating the financial state- ments of foreign entities and branches into EUR from their functional currency, the assets and liabili- ties of foreign entities and branches have been translated at the closing rates, while items in the income statement and the statement of comprehen- sive income are translated at the average exchange rate for the year. The average exchange rate is calcu- lated based on daily exchange rates divided by the number of business days in the period. Translation differences are recognised in other comprehensive income and are accumulated in the translation reserve in equity. Goodwill and fair value adjustments arising from the acquisition of foreign operations are treated as items in the same functional currency as the cash-generating unit to which they belong and are also translated at the closing rate. Any remaining equity in foreign branches is con- verted at the closing rates with translation differ- ences recognised in other comprehensive income. On the disposal of a foreign operation, the cumu- lative amount for the exchange difference relating to that foreign operation, recognised in other compre- hensive income and accumulated in the translation reserve in equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognised. G9.3 Investments in associated undertakings and joint ventures Accounting policies Associated undertakings are undertakings where the share of voting rights is between 20% and 50% and/or where Nordea has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Joint ventures are entities where Nordea has joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties shar- ing control. Associated companies and joint ventures are included in the consolidated financial statements using the equity method. At initial recognition the investment is recognised at acquisition cost. Fair value is allocated to the identifiable assets, liabilities and contingent liabilities of associated undertakings and joint ventures. Any difference between Nordea’s share of the fair value of the acquired identifiable net assets and the purchase price is goodwill or neg- ative goodwill. Goodwill is included in the carrying amount of the associated undertakings and joint ventures. Profit from companies accounted for under the equity method is defined as the post-acquisition change in Nordea’s share of net assets in associated undertakings and joint ventures. Nordea’s share of items accounted for in other comprehensive income in associated undertakings and joint ventures is accounted for in other comprehensive income in Nordea. Profit from companies accounted for under the equity method is reported post taxes in the income statement. Consequently, the tax expense related to this profit is excluded from the income tax expense for Nordea. Dividends received are accounted for as a reduction in the carrying amount. If observable indicators (loss events) indicate that an associated undertaking or a joint venture is impaired, an impairment test is performed to assess whether there is objective evidence of impairment. The carrying amount of the investment in the associ- ated undertaking or joint venture is compared with the recoverable amount (higher of value in use and fair value less cost to sell) and the carrying amount is written down to the recoverable amount if required. Impairment of investments in associated undertakings and joint ventures is classified as “Profit from associated undertakings and joint ven- tures accounted for under the equity method” in the income statement. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. Nordea is not generally involved in any sale or contribution of assets to or from associated under- takings or joint ventures, but if such transactions occur, Nordea’s share of any profit recognised in the associate or joint venture is eliminated. Other trans- actions between Nordea and its associated under- takings or joint ventures are not eliminated. For some associated undertakings and joint ven- tures not individually significant, the change in Nordea’s share of the net assets is based on the external reporting of the associated undertakings and joint ventures and affects the financial state- ments of Nordea in the period in which the informa- tion is available. The reporting from the associated undertakings and joint ventures is, if applicable, adjusted to comply with Nordea’s accounting policies. Some investments within Nordea’s investment activities in Treasury and Nordea Life & Pension (classified as part of Nordea’s venture capital organ- isation) are measured at fair value in accordance with the rules set out in IAS 28 and IFRS 9. ===== SIDA 269 ===== Nordea Annual Report 2025 268 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9.3 Investments in associated undertakings and joint ventures, cont. Investments in associated undertakings and joint ventures EURm 31 Dec 2025 31 Dec 2024 Acquisition value at beginning of year 527 541 Acquisitions 48 14 Sales1 -121 – Share in earnings 6 8 Share of other comprehensive income -1 4 Share in net result from items at fair value 35 18 Dividend received -5 -33 Reclassifications -4 -16 Translation differences 3 -9 Acquisition value at end of year 488 527 Accumulated impairment charges at beginning of year -45 -60 Accumulated impairment charges on sales1 23 – Impairment charges2 -8 -2 Reversed impairment charges2 – 4 Reclassifications 4 12 Translation differences 0 1 Accumulated impairment charges at end of year -26 -45 Total 462 482 1) Refers to the sale of Eksportfinans ASA. 2) Refers to Finansinfrastruktur i Sverige AB (former P27). Nordea’s share of the associated undertakings’ aggre- gated balance sheets and income statements can be summarised as follows: EURm 31 Dec 2025 31 Dec 2024 Total assets 767 860 Net profit for the year 42 26 Other comprehensive income -1 4 Total comprehensive income 41 30 Nordea’s share of the joint ventures’ aggregated balance sheets and income statements can be summarised as follows: EURm 31 Dec 2025 31 Dec 2024 Total assets 7 8 Net profit for the year -1 0 Total comprehensive income -1 0 For information about investments in group undertakings and companies for which Nordea has unlimited responsi- bility, see Note G9.1 “Consolidated entities”. Associated undertakings and joint ventures Registration number Domicile Carrying amount 2025, EURm Carrying amount 2024, EURm Voting power of holding % Ownership % Udviklingsselskabet Carlsberg Byen P/S1 33648499 Copenhagen 107 112 23 23 Havneholmen P/S1 38036572 Kongens Lyngby 88 84 50 50 Margretheholmen P/S1 34609829 Valby 84 65 50 50 P/S Ottilia Copenhagen1 40087095 Copenhagen 41 39 50 50 K/S Ejendomsholding Banemarksvej1 43125834 Nordhavn 40 26 40 40 Eksportfinans ASA 816521432 Oslo – 94 – – Eiendomsverdi AS 881971682 Oslo 11 12 25 25 Getswish AB 556913-7382 Stockholm 10 10 20 20 NF Fleet AB 556692-3271 Taeby 8 6 20 20 NF Fleet Oy 2006935-5 Espoo 7 7 20 20 NF Fleet A/S 29185263 Copenhagen 4 3 20 20 NF Fleet AS 988906808 Oslo 3 2 20 20 Bankomat AB 556817-9716 Stockholm 6 8 20 20 Trill Impact AB 559196-0827 Stockholm 6 4 5 30 E-nettet A/S 21270776 Copenhagen 3 3 17 17 CrediWire ApS 37264628 Copenhagen 2 2 7 7 OPEN POS Nordic Group AB 559063-2369 Gothenburg 2 2 46 46 Svenska e-fakturabolaget AB 556563-0596 Stockholm 2 1 50 50 Subaio ApS 37766585 Aalborg 1 1 20 20 Others 1 1 Total associated undertakings 426 482 Finansinfrastruktur i Sverige AB (former P27) 559198-9610 Stockholm 31 – 23 23 Siirto Brand Oy 3102648-1 Helsinki 4 0 50 50 Tibern AB 559384-3542 Stockholm 1 0 14 14 Invidem AB 559210-0779 Stockholm – – 17 17 Total joint ventures 36 0 Total associated undertakings and joint ventures 462 482 1) Measured at fair value. ===== SIDA 270 ===== Nordea Annual Report 2025 269 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9.4 Interest in structured entities Accounting policies A structured entity is an entity created to accomplish a narrow and well-defined objective where voting rights are not the dominant factor in determining control. Often legal arrangements impose strict lim- its on the decision-making powers of management over the ongoing activities of a structured entity. The same consolidation requirements apply to these entities, but as voting rights do not determine whether control exists, other factors are used to determine control. Power can exist due to agreements or other types of influence over a structured entity. This is normally the case when Nordea has sponsored or established a structured entity or when Nordea is the investment manager and has sole discretion as to investments and other administrative decisions. Variability in returns is also a prerequisite for con- solidation. Service and commission fees in connec- tion with the establishment of the structured entity are normally not significant enough to trigger con- solidation, nor is acting as an investment manager or as a custodian. Funding in the form of fund units, loans or credit commitments can result in significant variability in returns. If Nordea is exposed to varia- bility in returns and has power to affect the returns of the entity, it is consolidated. Nordea normally con- siders a share of more than 30% of the return pro- duced by a structured entity to give rise to variability and thus to give control. Variability is measured as the sum of fees received and revaluation of assets held. For unit-linked and other contracts where the policyholder/depositor decides both the amount and in which assets to invest, Nordea is considered to act as an agent, and such holdings are thus not included in the control assessment. Consolidated structured entities Viking ABCP Conduit (Viking) has been established with the purpose of supporting trade receivable or accounts payable securitisation transactions to core Nordic custom- ers. The SPE purchases trade receivables from approved sellers and funds the purchases either by issuing commer- cial paper (CP) via the established asset-backed commer- cial paper programme or by drawing funds under the liquidity facilities available. Nordea has provided liquidity facilities to a maximum of EUR 856m (EUR 856m) and at year end EUR 578m (EUR 668m) was utilised. The total assets of the conduit amounted to EUR 691m (EUR 758m) at year end. The SPE is consolidated as Nordea manages the entity and is exposed to variability in returns through the liquidity facil- ity. There are no significant restrictions on repayment of loans from Viking apart from the payments being depend- ent on the rate at which Viking releases its assets. Unconsolidated structured entities Disclosures are provided for structured entities in which Nordea has an interest but over which Nordea has no con- trol. Nordea has holdings in investment funds that are unconsolidated structured entities. Such holdings are rec- ognised on Nordea’s balance sheet and relate to investments: • on behalf of policyholders in Nordea Life & Pension • on behalf of depositors where the return is based on the investment • to hedge exposures to structured products issued to customers • that are illiquid private equity and credit funds. As Nordea is exposed to variability in returns on a gross basis, information about these funds is disclosed although the net exposure is considerably less. Any change in the value of investment funds acquired on behalf of policyhold- ers and depositors where the policyholder/depositor bears the investment risk is reflected in the value of the related liability, and the maximum net exposure to losses is zero. The change in the value of investment funds held on behalf of other policyholders is largely passed on to the policyholders, but as Nordea has issued guarantees in respect of some of these products, Nordea is exposed to value changes. Investment funds acquired to hedge exposures to struc- tured products reduce the net exposures to the extent hedges are effective. Investments in illiquid private equity and credit funds are an integral part of managing balance sheet risks at Nordea. The maximum loss on private equity and credit funds is esti- mated at EUR 1,270m (EUR 1,316m), equal to the investments in the funds. Nordea has established and therefore sponsored one unconsolidated structured entity, Thulite. Currently, Nordea has neither control over nor an interest in the entity. During the year Nordea entered into two new trans- actions with Thulite where Nordea bought financial guar- antees on portfolios of loans. During the year Nordea received reimbursement of losses of EUR 15m on its loan portfolios guaranteed by Thulite. Nordea’s interests in unconsolidated structured entities and any related liability are disclosed in the table below. The carrying amount is the maximum exposure to credit loss before considering any hedges. Income related to these investments is recognised in “Net result from items at fair value”. Interest in unconsolidated structured entities EURm 31 Dec 2025 31 Dec 2024 Assets, carrying amount: Interest-bearing securities 246 910 Shares 27,267 22,518 Assets in pooled schemes and unit-linked investment contracts 63,868 55,820 Total assets 91,381 79,248 Liabilities, carrying amount: Deposits in pooled schemes and unit-linked investment contracts 63,868 55,820 Insurance contract liabilities 24,276 20,600 Total liabilities 88,144 76,420 Off-balance sheet, nominal amount: Loan commitments – – Nordea holds a large number of different funds that are classified as unconsolidated structured entities, some of which are managed by Nordea. These have different investment mandates and types of risk appetite, ranging from low-risk government bond funds to high-risk lever- aged equity funds. The total assets of funds managed by Nordea are EUR 256bn (EUR 230bn). All funds are financed by deposits from unitholders. The total assets of investment funds not managed by Nordea are not consid- ered meaningful for the purpose of understanding the related risks and are thus not disclosed. ===== SIDA 271 ===== Nordea Annual Report 2025 270 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G9.5 Assets and liabilities held for sale Accounting policies Individual assets and disposal groups including assets and liabilities are presented in the separate balance sheet line items “Assets held for sale” and “Liabilities held for sale”, respectively, as from the classification date. This occurs when the following criteria are fulfilled: • The carrying amount will be recovered principally through a sale transaction rather than through continuing use. • A decision to sell has been made on the right level and the asset or disposal group is available for sale in its current condition. • The sale is highly probable and will be executed within 12 months. Financial instruments continue to be measured under IFRS 9, while non-financial assets are held at the lower of carrying amount and fair value. Comparative figures are not restated. Retail finance in Sweden In the fourth quarter of 2023 Nordea decided to wind down its operations in retail finance in the Swedish finance company and to sell the existing loan portfolio. By the end of 2024 the portfolio amounted to EUR 95m and was classifed as “Assets held for sale”. The sale was com- pleted in 2025. G9.6 Acquisitions Accounting policies In a business combination, the acquired identifiable assets and liabilities are recognised at fair value, including any intangible assets identified in the acquisition. The net fair value of identifiable assets and liabilities is compared with the consideration paid and any surplus is recognised as goodwill. See also Note G9.1 “Consolidated entities”. Acquisition of Danske Bank’s personal customer and private banking business in Norway On 18 November 2024 Nordea acquired the Norwegian personal customer and private banking business from Danske Bank. Nordea took over approx. 235,000 custom- ers and 236 employees, and the net purchase price amounted to EUR 2,375m. The net purchase price was largely equal to the carrying amount of the assets and lia- bilities of the seller, after fair value adjustments on loans with fixed interest rates. The transaction also included associated asset management portfolios of EUR 1.2bn, which have not been consolidated into the Nordea Group’s financial statements. The transaction did not include any transfer of equity interests. The acquisition is an important step in the execution of Nordea’s Nordic strategy, as it expands Nordea’s presence in Norway. It will also add significant scale to Nordea’s Personal Banking business in Norway and provide value creation opportunities through offering the new custom- ers a broader set of products and services. The purchase price allocation is disclosed below. EURm 18 November 2024 Loans to the public 8,904 Other assets and liabilities 23 Deposits and borrowings from the public -3,186 Debt securities in issue -3,390 Acquired net assets 2,351 Purchase price, settled in cash 2,375 Cost of combination 2,375 Surplus value 24 Allocation of surplus value: Customer relationship intangible asset 24 A customer relationship intangible asset was identified in the transaction, to which the entire surplus value has been allocated. It represents the value of the entire customer relationship, but is primarily driven by the net present value of the cash flows generated by the asset manage- ment portfolios. The customer relationship intangible asset is amortised over 10 years, which is the estimated useful life. The revenue and operating profit, excluding integration costs, for the period during which the portfolios were con- solidated were EUR 15m and EUR 2m, respectively. ===== SIDA 272 ===== Nordea Annual Report 2025 271 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10 Other disclosures G10.1 Additional disclosures on the statement of changes in equity Accounting policies Equity is the residual interest in recognised assets after deduction of recognised liabilities. For equity there are no requirements to distribute cash flows. Instruments are classified as financial liabilities if such genuine requirements exist, for instance to pay when a triggering event occurs that is beyond the control of both the issuer and the holder of the instruments. See Note G3.3 “Classification and meas- urement” for more information, including the critical judgements applied by Nordea. Any payments connected to instruments classi- fied as equity are accounted for directly in equity and presented as dividends. Nordea has determined that payments on financial instruments classified as equity (i.e. Additional Tier 1 instruments with write- down features) are distribution of profits and they are therefore accounted for as dividends. Dividends to shareholders are recognised as a reduction of equity when the Annual General Meeting has adopted the proposal. The reduction of equity is accounted for when the Board of Directors decides on dividends in situations where the Annual General Meeting has given the Board of Directors a mandate to make such a decision up to a certain cap. Investments in own shares are not accounted for as assets; instead, they are recognised as a reduction in equity net of any transaction costs. Acquisitions of treasury shares as part of the Markets trading oper- ations are recognised as a reduction in invested unrestricted equity. Treasury shares acquired to opti- mise the capital structure and Nordea’s buy-back programmes are recognised as a reduction in retained earnings. Transaction costs related to repurchasing of treasury shares are also recognised in equity. There is no impact on the financial state- ments when shares are cancelled. Sales of own shares in the trading operations are recognised as increases in invested unrestricted equity. Contracts on Nordea shares that can be settled net in cash, for instance derivatives such as options and warrants, are either presented as financial assets or liabilities, meaning that these are not equity instruments. Non-controlling interests comprise the portion of net assets of group undertakings not owned directly or indirectly by Nordea Bank Abp. For each business combination, Nordea measures the non-controlling interests in the acquiree either at fair value or at their proportionate share of the acquiree’s identifia- ble net assets. Other reserves comprise income and expenses, net of tax effects, which are reported in equity through other comprehensive income. Apart from undistributed profits from previous years, retained earnings include the equity portion of untaxed reserves. Untaxed reserves according to national rules are accounted for as equity net of deferred tax at prevailing tax rates in the respective country. In addition, Nordea’s share of the undistributed earnings in associated and joint ventures since the date of acquisition is included in retained earnings. Additional Tier 1 capital holders Nordea has issued perpetual subordinated instruments (Additional Tier 1 instruments) which are converted into a variable number of Nordea shares in case a pre-defined CET1 trigger level for either the Nordea Group or NBAbp is breached. Interest payments are fully discretionary and mandatorily cancelled in certain circumstances. As Nordea may be obliged to deliver a variable number of Nordea shares, these Additional Tier 1 instruments are classified as financial liabilities. Nordea has also issued perpetual subordinated instru- ments (Additional Tier 1 instruments) which will be writ- ten down instead of converted into Nordea shares in case a pre-defined CET1 trigger level for either the Nordea Group or NBAbp is breached. Interest payments are fully discretionary and mandatorily cancelled in certain circum- stances. These instruments are classified as equity as there is no requirement for Nordea to pay interest or principal to the holders of the instruments. By the end of 2025 no such instruments were outstanding. Non-controlling interests For information about non-controlling interests, see Note G9.1 “Consolidated entities”. Share capital The share capital amounts to EUR 4,049,951,919. The shares in Nordea have no nominal value. Each share car- ries one voting right. For more information about the num- ber of registered shares, see “Statement of changes in equity”. Invested unrestricted equity Invested unrestricted equity equals the amount of the share premium reserve of Nordea Bank AB (publ) before completion of the re-domiciliation by way of a cross-bor- der reversed merger. Invested unrestricted equity has also been impacted by acquisitions and sales of treasury shares as part of the Markets trading operations. Other reserves These reserves include reserves for cash flow hedges, financial assets classified in the category “Financial assets at fair value through other comprehensive income” and accumulated remeasurements of defined benefit pension plans as well as a reserve for translation differences. For an analysis of the row “Other comprehensive, net of tax” by item see “Statement of comprehensive income”. Retained earnings Retained earnings primarily comprise Nordea’s undistrib- uted profits from previous years. G10.2 Additional disclosures on the cash flow statement Accounting policies The cash flow statement shows inflows and out- flows of cash and cash equivalents during the year for total operations. Nordea’s cash flow statement has been prepared in accordance with the indirect method, whereby operating profit is adjusted for effects of non-cash transactions such as deprecia- tion and loan losses. Cash flows are classified by operating, investing and financing activities. Operating activities Cash flows from operating activities, which are the princi- pal revenue-producing activities, are mainly derived from profits during the year adjusted for items not included in cash flows and income taxes paid. Adjustment for items not included in cash flows includes: EURm 2025 2024 Depreciation 610 562 Impairment charges 4 15 Loan losses 60 238 Net result on loans in hold portfolios mandatorily held at fair value 1 8 Unrealised gains/losses 2,587 109 Capital gains/losses (net) -23 -30 Change in accruals and provisions 13 190 Translation differences -762 570 Change in insurance contract liabilities 4 -7 Change in fair value of hedged items, assets/liabilities (net) 231 664 Other 62 -13 Total 2,787 2,306 ===== SIDA 273 ===== Nordea Annual Report 2025 272 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10.2 A dditional disclosures on the cash flow statement, cont. Operating assets and liabilities consist of assets and liabili- ties that are part of normal business activities, such as loans, deposits and debt securities in issue. Changes in derivatives are reported on a net basis. Cash flows from operating activities include interest payments received and interest expenses paid in the fol- lowing amounts: EURm 2025 2024 Interest received 17,336 21,235 Interest paid -10,139 -13,444 Investing activities Investing activities include acquisition and disposal of non-current assets such as property and equipment and intangible and financial assets. Financing activities Financing activities are activities that result in changes in equity and subordinated liabilities such as new issues of shares, dividends and issued/amortised subordinated lia- bilities and the principal portion of lease payments. Cash and cash equivalents The following items are included in “Cash and cash equivalents”: EURm 31 Dec 2025 31 Dec 2024 Cash and balances with c entral banks 38,206 46,562 Loans to central banks payable on demand 4 4 Loans to credit institutions payable on demand 983 999 Total 39,193 47,565 Cash comprises legal tender and bank notes in foreign currencies. Balances with central banks consist of deposits in accounts with central banks and postal giro systems under government authority where the following condi- tions are fulfilled: • The central bank or the postal giro system is domiciled in the country where the institution is established. • The balance on the account is readily available at any time. Loans to central banks and credit institutions payable on demand include liquid assets not represented by bonds or other interest-bearing securities. Reconciliation of liabilities arising from financing activities The opening balance of subordinated liabilities was EUR 7,410m (EUR 5,720m). Cash flows during the period were EUR 937m (EUR 1,430m) and the effects of FX and other changes were EUR 463m (EUR 260m), resulting in a clos- ing balance of EUR 8,810m (EUR 7,410m). The opening balance of lease liabilities was EUR 1,103m (EUR 1,103m). During the period cash flows related to the liabilities amounted to EUR -112m (EUR -151m) and other changes from new, terminated and modified contracts and FX changes amounted to EUR 54m (EUR 151m), resulting in a closing balance of EUR 1,045m (EUR 1,103m). EURm 2025 2024 Cash and cash equivalents at beginning of year 47,565 51,362 Translation differences -1,288 560 Cash and cash equivalents at end of year 39,193 47,565 Change -7,084 -4,357 ===== SIDA 274 ===== Nordea Annual Report 2025 273 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10.3 Maturity analysis Accounting policies The table “Expected maturity” presents the expected maturities for the balance sheet items. The table “Contractual undiscounted cash flows” is based on contractual undiscounted maturities. For derivatives, the expected cash inflows and outflows are disclosed for both derivative assets and deriva- tive liabilities as derivatives are managed on a net basis. For contractual lease liabilities, see Note G5.4 “Leases”. For further information about remaining maturity, see also section 8 “Liquidity risk” in Note G11 “Risk and liquidity management”. Expected maturity 31 Dec 2025 Expected to be recovered or settled: 31 Dec 2024 Expected to be recovered or settled: EURm Note Within 12 months After 12 months Total Within 12 months After 12 months Total Cash and balances with central banks 38,206 – 38,206 46,562 – 46,562 Loans to central banks G3.8 6,947 – 6,947 4,075 – 4,075 Loans to credit institutions G3.8 3,367 671 4,038 2,388 562 2,950 Loans to the public G3.8 105,483 276,388 381,871 96,130 261,458 357,588 Interest-bearing securities G3.9 13,526 66,346 79,872 14,985 58,479 73,464 Shares G3.10 14,573 25,014 39,587 1,866 33,522 35,388 Assets in pooled schemes and unit-linked investment contracts G3.11 7,359 63,318 70,677 7,499 53,380 60,879 Derivatives G3.12 259 17,374 17,633 7,783 17,428 25,211 Fair value changes of hedged items in portfolio hedges of interest rate risk G3.6 -158 – -158 -243 – -243 Investments in associated undertakings and joint ventures G9.3 – 462 462 – 482 482 Intangible assets G5.1 – 4,088 4,088 21 3,861 3,882 Properties and equipment G5.2 – 1,564 1,564 145 1,516 1,661 Investment properties G5.3 – 2,215 2,215 22 2,110 2,132 Deferred tax assets G2.11 7 173 180 11 195 206 Current tax assets G2.11 383 – 383 364 – 364 Retirement benefit assets G8.2 – 334 334 – 360 360 Other assets 1,655 3,964 5,619 1,146 6,022 7,168 Prepaid expenses and accrued income 787 45 832 1,089 42 1,131 Assets held for sale G9.5 – – – 95 – 95 Total assets 192,394 461,956 654,350 183,938 439,417 623,355 Deposits by credit institutions G3.13 32,783 1,348 34,131 28,678 97 28,775 Deposits and borrowings from the public G3.14 224,392 18,482 242,874 224,008 8,427 232,435 Deposits in pooled schemes and unit-linked investment contracts G3.11 5,466 66,145 71,611 4,529 57,184 61,713 Insurance contract liabilities G4 2,314 30,783 33,097 1,910 28,441 30,351 Debt securities in issue G3.15 70,704 125,572 196,276 74,868 113,268 188,136 Derivatives G3.12 340 17,738 18,078 3,993 21,041 25,034 Fair value changes of hedged items in hedges of interest rate risk G3.6 -567 – -567 -458 – -458 Current tax liabilities G2.11 672 – 672 208 – 208 Other liabilities1 G3.16 5,658 8,748 14,406 4,544 9,652 14,196 Accrued expenses and prepaid income 1,256 42 1,298 1,582 56 1,638 Deferred tax liabilities G2.11 87 514 601 27 786 813 Provisions G6 85 263 348 113 283 396 Retirement benefit liabilities G8.2 – 296 296 – 272 272 Subordinated liabilities G3.17 921 7,889 8,810 93 7,317 7,410 Total liabilities 344,111 277,820 621,931 344,095 246,824 590,919 1) Of which lease liabilities 106 939 1,045 109 994 1,103 ===== SIDA 275 ===== Nordea Annual Report 2025 274 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10.3 Maturity analysis, cont. Contractual undiscounted cash flows 31 Dec 2025 31 Dec 2024 EURm < 1 month 1–3 months 3–12 months 1–2 years 2–5 years 5–10 years >10 years Total < 1 month 1–3 months 3–12 months 1–2 years 2–5 years 5–10 years >10 years Total Cash and balances with central banks and loans to central banks 45,005 148 – – – – – 45,153 50,475 162 – – – – – 50,637 Loans to credit institutions 4,470 456 398 408 219 – – 5,951 2,892 422 298 26 230 – – 3,868 Loans to the public 69,157 18,907 43,257 41,539 77,637 62,845 207,341 520,683 61,399 22,283 40,731 40,586 71,973 70,367 197,332 504,671 Interest-bearing securities 1,193 1,317 15,544 23,996 36,318 9,491 10,877 98,736 1,777 791 14,589 17,115 38,363 9,476 5,254 87,365 Other non-derivative financial assets – – – – – – 115,084 115,084 – – – – – – 102,791 102,791 Total non-derivative financial assets 119,825 20,828 59,199 65,943 114,174 72,336 333,302 785,607 116,543 23,658 55,618 57,727 110,566 79,843 305,377 749,332 Deposits by credit institutions 19,205 15,875 4,258 – – – – 39,338 25,520 3,945 895 3 65 – – 30,428 Deposits and borrowings from the public 226,572 12,223 5,366 131 8 – – 244,300 212,565 15,267 4,935 56 70 1 0 232,894 Debt securities in issue 5,926 18,036 57,624 40,962 71,424 21,114 19,492 234,578 3,940 23,033 64,907 33,295 72,169 16,908 20,330 234,582 - of which CDs and CPs 885 14,078 30,070 4,463 43 – – 49,539 1,025 17,000 22,297 27 51 – – 40,400 - of which covered bonds 5,041 3,650 23,877 28,702 57,859 15,357 19,197 153,683 2,915 3,438 35,780 29,303 58,495 12,608 20,061 162,600 - of which other bonds – 308 3,677 7,797 13,522 5,757 295 31,356 – 2,595 6,830 3,965 13,623 4,300 269 31,582 Subordinated liabilities 1,180 1,547 810 4,908 1,781 – – 10,226 – 125 255 2,798 3,129 2,377 184 8,868 Other non-derivative financial liabilities 84,169 21 94 111 277 344 331 85,347 74,016 21 97 118 281 345 384 75,262 Total non-derivative financial liabilities 337,052 47,702 68,152 46,112 73,490 21,458 19,823 613,789 316,041 42,391 71,089 36,270 75,714 19,631 20,898 582,034 Derivatives, cash inflows 253,542 271,418 189,529 130,229 246,366 161,573 104,231 1,356,888 241,710 239,182 181,085 102,525 204,988 122,543 72,563 1,164,596 Derivatives, cash outflows 253,641 272,044 189,519 129,964 246,994 162,096 104,591 1,358,849 241,705 239,103 182,027 102,898 205,436 123,562 72,701 1,167,432 Derivatives, net cash flows -99 -626 10 265 -628 -523 -360 -1,961 5 79 -942 -373 -448 -1,019 -138 -2,836 Credit commitments 95,010 – – – – – – 95,010 86,948 – – – – – – 86,948 Issued guarantees 19,545 – – – – – – 19,545 20,337 – – – – – – 20,337 ===== SIDA 276 ===== Nordea Annual Report 2025 275 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G10.4 R elated party transactions Accounting policies Related parties A related party is a person or entity that is related to Nordea. Related parties are grouped in the following categories: • Shareholders with significant influence • Associated undertakings and joint ventures • Key management personnel • Other related parties. Shareholders with significant influence Shareholders with significant influence are share- holders that have the power to participate in the financial and operating policy decisions of Nordea but do not control those policies. Associated undertakings and joint ventures For the definition of associated undertakings and joint ventures, see Note G9.3 “Investments in associ- ated undertakings and joint ventures”. Key managment personnel Key management personnel are the persons having authority and responsibility for planning, directing and controlling the activities in Nordea, directly or indirectly, including any director of the entity. Other related parties Other related parties comprise subsidiaries of share- holders with significant influence, close family mem- bers of key management personnel and companies controlled or jointly controlled by key management personnel or by close family members of key man- agement personnel. Related party transactions A related party transaction is a transfer of resources, services or obligations between Nordea and a related party, regardless of whether a price is charged. See also Accounting policies in Note G8.4 “Key management personnel remuneration”. Related party transactions Associated undertakings1 Other related parties2 EURm 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Assets Loans 116 137 2 2 Other assets 0 1 – – Total assets 116 138 2 2 Liabilities Deposits 0 1 38 11 Derivatives – 3 – – Other liabilities 2 0 0 0 Total liabilities 2 4 38 11 Off-balance sheet items – – 5 5 Associated undertakings1 Other related parties2 EURm 2025 2024 2025 2024 Net interest income 4 4 0 0 Net fee and commission income 1 2 0 0 Net result from items at fair value – -1 0 0 Total operating expenses -1 0 – – Profit before loan losses 4 5 0 0 1) In formation about associated undertakings included in the Nordea Group is found in Note G9.3 “Investments in associated undertakings and joint ventures”. 2) This c olumn includes shareholders with significant influence (including their subsidiaries), close family members of key management personnel at Nordea, companies controlled or jointly controlled by key management personnel or by close family members of key management personnel at Nordea. It also includes Nordea’s pension foundations. All transactions with related parties are made on the same criteria and terms as those of comparable transactions with external parties of similar standing, apart from loans granted to employees as well as certain other commit- ments to key management personnel, see Note G8.4 “Key management personnel remuneration” and Note G7.1 “Contingent liabilities”. The information above is presented from Nordea’s per- spective, meaning that the information shows the effect of related party transactions on the Nordea figures. In Nordea key management personnel includes the f ollowing positions: • Board of Directors • Chief Executive Officer (CEO) • Deputy Managing Director • Group Leadership Team. Loans to key management personnel amounted to EUR 5.0m (EUR 2.4m) and interest income on these loans amounted to EUR 0.1m (EUR 0.1m). Deposits from key management personnel amounted to EUR 1.2m (EUR 5.7m) and interest on these deposits amounted to EUR -0.0m (EUR -0.1m). Loan commitments to key manage- ment personnel amounted to EUR 4.0m (EUR 0.3m). For key management personnel employed by Nordea the same credit terms apply as for other employees. In Finland, the employee interest rate for mortgage loans cor- responds to Nordea Bank Abp’s funding cost with a margin of 30bp and for other loans the employee interest rate cor- responds to Nordea Bank Abp’s funding cost with a margin of 45–500bp. In Denmark, the employee interest rate for loans is variable and between 2.50–4.45% depending of the type of mortgage. In Norway, the variable interest rate on loans to employees is 4.44%. Mortgage loans with fixed interest rates are offered with the same rates as mortgage loans to Premium customers. In Sweden, loans approved with employee conditions are a maximum amount at SEK 3m for any type of loan and a maximum amount at SEK 0.4m for car loans. The interest rate for these loans is 215bp lower than the corresponding interest rate for external cus- tomers. For interest on loans above SEK 3m and SEK 0.4m respectively, the employees receive the same maximal dis- count as Nordea’s best external customers. Loans to family members of key management person- nel who do not live in the same household as key manage- ment personnel are granted on normal market terms, as are loans to key management personnel who are not employed by Nordea. For more information about transac- tions with key management personnel, see Note G8.4 “Key management personnel remuneration”. ===== SIDA 277 ===== Nordea Annual Report 2025 276 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management 1. Risk governance ..................................................................................276 1.1 Internal Control Framework ..............................................276 1.2 Decision-making bodies for risk, liquidity and capital management ...................................................276 1.3 Governance of risk management and compliance ..........................................................................277 1.4 Disclosure requirements of the Capital Requirements Regulation – Capital and Risk Management Report 2025 ......................................278 2. Credit risk ................................................................................................278 2.1 ESG-related credit risk ..........................................................278 2.2 Credit risk definition and identification .....................279 2.3 Credit risk mitigation ..............................................................279 2.4 Exposures, allowances and provisions ......................279 2.5 Sensitivities ...................................................................................292 2.6 Forward-looking information ...........................................293 2.7 Management judgements ..................................................298 2.8 Rating and scoring distribution ......................................298 3. Counterparty credit risk ..................................................................301 4. Market risk ..............................................................................................301 4.1 Traded market risk ...................................................................301 4.2 Non-traded market risk ........................................................301 4.3 Measurement of market risk .............................................301 4.4 Market risk analysis.................................................................302 4.5 Net interest income risk and Economic Value risk ........................................................................................302 4.6 Other market risks/pension risk .....................................302 5. Operational risk ................................................................................... 303 5.1 Management of operational risk ...................................303 5.2 Model risk ......................................................................................304 6. Compliance risk ...................................................................................304 6.1 Code of Conduct .......................................................................304 6.2 Raise your Concern .................................................................304 6.3 Financial crime prevention .................................................305 7. Life insurance risk and market risks in the Life & Pension operations .............................................................305 8. Liquidity risk .........................................................................................305 8.1 Liquidity risk definition and identification ...............305 8.2 Management principles and control ...........................305 8.3 Funding and liquidity strategy ........................................305 8.4 Liquidity risk measurement ...............................................306 8.5 Liquidity risk analysis .............................................................306 1. Risk governance Maintaining organisational risk awareness is an integral part of Nordea’s business strategy. Nordea has defined clear risk management frameworks, policies and instruc- tions for different risk types covering all risk exposures. 1.1 Internal Control Framework The Internal Control Framework covers the whole Group and includes the Board of Directors, Group Chief Executive Officer (Group CEO) and senior executive management responsibilities regarding internal control, all Group func- tions and business areas including outsourced activities and distribution channels. Under the Internal Control Framework, all business areas, Group functions and units are responsible for managing the risks they incur when conducting their activities and to have controls in place that aim to ensure compliance with internal and external requirements. As part of the Internal Control Framework, Nordea has established Group control functions with appropriate and sufficient authority, independence and access to the Group Board to fulfil their mission. Within the Internal Control Framework the Group Board has established Nordea’s Risk Management Framework and Compliance Risk Management Framework. The Internal Control Framework ensures effective and efficient operations, adequate identification, measurement and mitigation of risks, prudent conduct of business, sound administrative and accounting procedures, reliabil- ity of financial and non-financial information (both inter- nal and external) and compliance with applicable laws, regulations, standards, supervisory requirements and Group internal rules. 1.2 Decision-making bodies for risk, liquidity and capital management The Group Board, the Board Risk Committee, the Group CEO in the GLT, the Asset and Liability Committee (ALCO) and the Risk Committee (RC) are the key decision-making bodies for risk and capital management at Nordea. In addition, the CEO Credit Committee, the Executive Credit Committee and Business Area Credit Committees are the key bodies for credit decision-making. Group Board The Group Board has the following overarching risk man- agement responsibilities: • Decide on the Group’s risk strategy and the Risk Appetite Framework, including the Risk Appetite Statement, with at least annual reviews and additional updates when needed. • Oversee and monitor the implementation of the risk strategy, Risk Appetite Framework and Risk Manage- ment Framework and regularly evaluate whether the Group has effective and appropriate controls to manage the risks. • Monitor and oversee the development of the Group’s risk profile against the Group Board-approved Risk Appetite Statements. • Set expectations and oversee the implementation of the Group’s risk culture, including approval of the Code of Conduct and values. • Monitor the presence of a sound risk culture consistently and consider the impact of the risk culture on the finan- cial stability risk profile and governance. The Group Board decides on capital policy, including divi- dend policy, to ensure adequate capital and liquidity levels within the Group and on an ongoing forward-looking basis, consistent with Nordea’s business model, risk appe- tite and regulatory requirements and expectations. Board Risk Committee The Board Risk Committee assists the Group Board in ful- filling its oversight responsibilities concerning manage- ment and control of the risks, risk frameworks, controls and processes associated with the Group’s operations. Group CEO The Group CEO is responsible to the Group Board for the overall management of the Group’s operations and risks. Responsibilities include ensuring that the risk strategy and risk management framework decided by the Group Board is implemented, the necessary practical measures are taken and risks are monitored and limited. The Group CEO is supported in decision-making by sen- ior management within the GLT. Matters that are to be decided by the Group Board and matters of principle or otherwise of particular importance that are to be decided by the boards of directors of the major subsidiaries of Nordea Bank Abp must first be presented to the Group CEO for discussion and recommendation. ===== SIDA 278 ===== Nordea Annual Report 2025 277 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Group-wide committees have been established by the Group CEO to promote coordination within the Group, thus ensuring commitment to and ownership of Group-wide pri- oritisations, decisions and implementation. The composition and areas of responsibility of each committee are estab- lished in the Group CEO Instructions for the respective committees. Asset and Liability Committee The Asset and Liability Committee (ALCO) is subordinated to the Group CEO in GLT and chaired by the Group Chief Financial Officer (CFO). ALCO decides on changes to the financial operations and the risk profile of the balance sheet, including asset and liability management (ALM), balance sheet management and liquidity management. ALCO also decides on certain issuances and capital injec- tions for all wholly owned legal entities within the Group. ALCO has established sub-committees for its work and decision-making within specific risk areas. Risk Committee The Risk Committee is subordinated to the Group CEO in the GLT and chaired by the Group Chief Risk Officer (CRO). The Risk Committee serves as a decision-making and/or pre- paratory body on risk, while promoting interaction and coor- dination within the Group on risk topics across the first and second lines of defence. It prepares or provides guidance regarding proposals to the Group CEO in the GLT and/or the Group Board on issues of major importance concerning Nordea’s Risk Management Framework. The Group Board decides on the Risk Appetite Framework. The Risk Committee allocates the risk appetite to the risk-taking units, and the first line of defence is responsible for ensuring that limits are further cascaded and operationally implemented. The Risk Committee has established sub-committees for its work and decision-making within specific risk areas. Credit decision-making bodies The Group Board and the subsidiaries’ boards of directors delegate credit decision-making according to the Power to Act as described in the Group Board Directive on Risk. • The CEO Credit Committee is chaired by the Group CEO and the members of the Executive Credit Committee are included. • The Executive Credit Committee is chaired by the Head of Group Credit Management. The Group CEO appoints the members of the Executive Credit Committee. • Business Area Credit Committees: The Executive Credit Committee establishes credit committees for each business area as required by organisational and customer segmentation. Subsidiary governance The subsidiaries’ boards of directors are responsible for approving risk appetite limits and capital actions in line with the overarching framework set by the Group Board of Directors. The proposals for such items are the responsibil- ity of the relevant subsidiary management which is sup- ported by Group functions. Subsidiaries must adhere to the Internal Control Framework of the Group including Nordea’s Risk Management and Compliance Risk Management Frameworks, unless local legal or supervisory require- ments determine otherwise. The subsidiaries’ boards of directors have oversight responsibilities for management and control of risk and for the implementation of risk man- agement frameworks as well as the processes associated with the subsidiaries’ operations. In addition, there are risk management functions accountable for the risk manage- ment frameworks and processes within the subsidiaries. The subsidiaries’ CEOs are part of the decision-making process at the subsidiary level and are responsible for the daily operations. 1.3 Governance of risk management and compliance Group Risk and Group Compliance constitute Nordea’s independent second line of defence functions. The second line of defence is organised to ensure that adequate resources are allocated to support processes and to cover the business organisation, legal structure and country dimensions. Group Risk oversees the implementation of the Group risk policies (excluding compliance risk) and, following a risk-based approach, monitors and controls the Risk Management Framework. Group Compliance oversees the implementation of the Compliance Risk Management Framework, which is a part of the overarch- ing Risk Management Framework. The Risk Management Framework ensures consistent processes for identifying, assessing and measuring, responding to and mitigating, controlling and monitoring and reporting risks. This enables informed decisions on risk-taking. The Risk Management Framework encom- passes all risks to which Nordea is or could be exposed, including ESG as drivers of existing risks, off-balance sheet risks and risks in a stressed situation. Detailed risk infor- mation covering all risks is regularly reported to the Risk Committee, the GLT, the Board Risk Committee and the Group Board. In addition to this, Nordea’s compliance with regulatory requirements is reported to the Risk Committee, the GLT, the Board Risk Committee and the Group Board. The Group Board and the CEO in each legal entity regularly receive local risk reporting. The Risk Identification and Materiality Assessment Process starts with identifying risks to which Nordea is or could be exposed. Risks are then assessed for relevance, classified and included in the Common Risk Taxonomy. All risks within the Nordea Common Risk Taxonomy need to be classified as material or not material for risk management and capital purposes. Material risks are those assessed as having a potential material impact on Nordea’s current and future financial position, its customers and stakeholders. These risks will typically refer to a higher level risk within the risk taxonomy that captures a number of underlying risks where losses arise from a common source. Risk appetite The Risk Appetite Framework (RAF) supports effective risk management and fosters a sound risk culture by ena- bling informed decision-making and risk-taking activities. Its primary objective is to ensure that all risk-taking remains within the boundaries of the risk appetite defined by the Board of Directors. Risk appetite refers to the overall level and type of risk that Nordea is willing to accept, in alignment with its busi- ness model, to achieve its strategic objectives. The Risk Appetite Statement articulates the Group Board-approved risk appetite and includes both qualitative statements and quantitative limits and triggers by key risk type. These ele- ments are designed to ensure that Nordea operates with a prudent and sustainable risk profile. Risk appetite processes The Risk Appetite Framework contains all processes and controls to establish, monitor and communicate Nordea’s risk appetite: • Risk capacity setting based on capital and liquidity posi- tion: On an annual basis, the Group’s overall risk capacity is aligned with the financial and capital planning pro- cess, based on Nordea’s risk strategy. The risk capacity is set in line with Nordea’s capital and liquidity position, including an appropriate shock-absorbing capacity. • Risk appetite allocation by risk type: Risk appetite includes risk appetite limits for the main risk types that Nordea is exposed to. Risk appetite triggers are also set for these main risk types, to act as early indicators for key decision-makers that the risk profile for a particular risk type is approaching its risk appetite limit. • Risk limit setting: Measurable risk limits are established and set at an appropriate level to manage risk-taking effectively. Risk appetite limits are set by the Board Risk Committee. These form the basis for setting the risk lim- its which are established and approved at lower deci- sion-making levels. The RAF is calibrated to ensure con- sistency throughout the framework. Subsidiary risk appetite limits must be set by the appropriate governing body in alignment with local regulatory requirements and consistent with the Group risk limits. • Controlling and monitoring risk exposures against risk limits: Regular controlling and monitoring of risk expo- sures compared to risk limits are carried out to ensure that risk-taking activity remains within the risk appetite. • Risk appetite limit breach management process: Group Risk and Group Compliance oversee that risk appetite limit breaches are appropriately escalated to the Risk Committee and the Board Risk Committee. Group Risk and Group Compliance report monthly on any breaches of the risk appetite to the Group Board and other rele- vant governing bodies including a follow-up on the sta- tus of actions to be taken, until the relevant risk exposure is within the risk appetite. The reporting includes a con- sistent status indicator to communicate the current risk exposure compared to the risk appetite limit for all risk types covered by the Risk Appetite Statements. ===== SIDA 279 ===== Nordea Annual Report 2025 278 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Embedding risk appetite in business processes The end-to-end risk appetite process is closely aligned with other strategic processes, including the Internal Capital Adequacy Assessment Process (ICAAP), the Internal Liquidity Adequacy Assessment Process (ILAAP), and the Group Recovery Plan. Risk appetite is embedded within core business pro- cesses and communicated throughout the organisation to support Nordea’s objective of maintaining a strong risk culture. This includes, but is not limited to, ensuring a clear connection between the assessed risk appetite and busi- ness plans, budgets and the capital and liquidity position. Risk appetite is also integrated into the Group’s recovera- bility and resolvability assessments as well as into the incentive structures and remuneration framework. 1.4 Disclosure requirements of the Capital Requirements Regulation – Capital and Risk Management Report 2025 Additional information on risk and capital management is presented in the Capital and Risk Management Report 2025, in accordance with the Capital Requirements Regulation. 2. Credit risk Credits granted within the Group must conform to the common principles established for the Group. Nordea strives to have a well-diversified credit portfolio that is adapted to the structure of its home markets and econo- mies. Nordea’s loan portfolio is split by type of exposure classes (corporate and retail) or by sector, then further broken down by segment, industry and geography and reported monthly, quarterly and annually. The key principles for managing Nordea’s risk exposures are: • risk-based approach, i.e. the risk management functions should be aligned to the nature, size and complexity of Nordea’s business, ensuring that efforts undertaken are proportional to the risks in question • independence, i.e. the risk control function should be independent of the business it controls • three lines of defence, as further described in the Group Board Directive on Internal Governance. Group Credit Management is the first line of defence and is responsible for the credit process and Industry Credit Policies. Group Credit Risk Control is the second line of defence and is responsible for the credit risk framework, consisting of instructions and guidelines for the Group. Group Credit Risk Control is also responsible for con- trolling and monitoring the quality of the credit portfolio and the credit process. The basis of credit risk management at Nordea is allocat- ing limits to customers and customer groups which are aggregated and assigned to units responsible for their con- tinuous monitoring and development. In addition to the pro- cedures for allocating customer and customer group limits, Nordea’s credit risk management framework also includes the credit risk appetite framework, which provides a com- prehensive and risk-based portfolio perspective through rel- evant asset quality and concentration risk measures. Each division/unit is primarily responsible for managing the credit risks in its operations within the applicable framework and limits, including identification, control and reporting. Within the powers to act granted by the Board of Direc- tors, internal credit risk limits are approved by credit deci- sion-making authorities on different levels of the organisa- tion constituting the maximum risk appetite in relation to the customer in question. Individual credit decisions within the approved internal credit risk limit are taken within the customer responsible unit. The risk categorisation together with the exposure of the customer decides at what level the credit decision will be made. Responsibility for a credit risk lies with the customer responsible unit. Customers are classified according to risk and assigned a rating or a score in accordance with Nordea’s rating and scoring guidelines. The rating and scoring of customers aim to predict their probability of default and consequently rank them accord- ing to their respective default risk. Rating and scoring are used as integrated parts of credit risk management and the credit decision-making process. Representatives from the first line of defence credit organisation approve the rating independently. 2.1 ESG-related credit risk Some climate and environmental (C&E) risk drivers are assessed as a material or potentially material driver of (additional) credit risk. Nordea has in place a Group-wide taxonomy of C&E risk drivers (i.e. hazards) and a list of transmission channels. The C&E materiality assessment (MA) performed in 2025 covers various geographies, eco- nomic sectors and portfolios using different time horizons (short, medium, long and very long term). Nordea pro- vides an in-depth summary of the materiality assessment outcomes and identification, mitigation, management, capital adequacy and response to C&E risk drivers in the Capital and Risk Management Report. For existing and new corporate borrowers, depending on the size and internal segmentation, ESG credit risk driv- ers are investigated and any identified ESG risks are assessed further, either on an industry basis (inherent risks) or on customer level. Risks that are material to the borrower’s credit risk are treated as a credit risk driver and further integrated into the credit risk assessment. ESG- related risks identified as material at customer level pro- vide input to the credit risk assessment to reach conclu- sions on the customer group’s risk level included in the credit memorandum. Approvals are made according to the established credit decision-making process. For customers associated with high ESG-related risk levels, decisions are escalated to higher-level credit committees in line with the Group’s Credit Governance where relevant. When conducting the ESG assessments related to credit risks, as part of the credit risk assessment, a dedicated process which includes identifying both a customer’s vul- nerability and resilience towards material ESG issues is used. A semi-automated tool supplemented by human oversight is used to flag customers that require enhanced assessment by dedicated ESG analysts. To support these analyses, external databases are used to monitor perfor- mance on specific ESG-related risks and to assess whether the company has been or is involved in ESG-related con- troversies. Risks that are material to the borrower’s credit risk are treated as any other risk driver and further inte- grated into the credit risk assessment. When the impact from ESG-related risks is so severe that it causes misalign- ment with the rating, an ESG rating override can be applied. Climate-related transition and physical risks are assessed with an enhanced focus for larger customers. The key components of the assessment include counter- parties’ greenhouse gas (GHG) emissions intensity developments, the corresponding quality of their transi- tion planning and the resulting impact of climate-related transition and physical risks on customer repayment capacity. This analysis is aligned with the Group targets on financed GHG emissions reductions and transition plan coverage. Credit risk is also the risk type most affected by nature-related transition risk arising via Nordea’s lending activities. Overall, Nordea has low exposure to industries assessed as highly vulnerable to nature-related risks, with the highest vulnerability within primary production seg- ments, such as agriculture. For certain customers, there is an enhanced focus on ESG risks. The process includes ensuring that sufficient policies and programmes are in place to reduce potential harmful impacts on, for example, the environment, com- munities, health and safety issues and indigenous rights. Additionally, Nordea follows applicable valuation stand- ards and regulatory requirements, which includes taking ESG factors into account in applying market values for col- lateralised real estate assets, when available and relevant. ESG-related considerations in the credit process are fur- ther guided by the internal Industry Credit Policies (ICPs), which include ESG-related exclusion criteria from expo- sure to harmful or controversial economic activities and requirements on engagement and monitoring of cli- mate-related and nature-related transition plans. In addition to these processes, where relevant, Nordea carries out an ESG impact assessment when financing large infrastructure and industrial projects, as part of its commitment to the Equator Principles. The overall credit risk assessment is a combined risk conclusion on the borrower’s repayment capacity and recovery position. The risk assessment conclusion must be sufficiently forward-looking in relation to the risk profile of the customer and the maturity of the transaction. In addition to the credit risk assessment made in con- nection with a new or changed exposure in relation to a customer, an annual or ongoing (i.e. business as usual) credit review process is in place. The review process is an important part of the ongoing credit assessment process. In general, if credit weakness is identified in relation to a customer exposure, the customer is classified as “high risk” and receives special attention in terms of more fre- quent reviews and testing the need for individual ===== SIDA 280 ===== Nordea Annual Report 2025 279 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. provisions. When credit events are identified, in addition to the ongoing monitoring, an action plan is established out- lining how to minimise the potential credit loss. If neces- sary, a work-out team is established to support the cus- tomer responsible unit. 2.2 Credit risk definition and identification Credit risk is defined as the potential for loss due to failure of a borrower to meet its obligations to pay a debt in accordance with the agreed terms and conditions. The potential for loss is lowered by credit risk mitigation tech- niques. Credit risk mainly stems from various forms of lending as well as from issued guarantees and documen- tary credits and includes counterparty credit risk, transfer risk and settlement risk. Nordea’s loan portfolio is furthermore broken down by segment, industry and geography. Industry credit policies are established for those industries that have a significant weight in the portfolio and/or are either highly cyclical or volatile or assessed as vulnerable to climate-related risks or require special industry competencies. Credit decisions are reached after a credit risk assess- ment, based on principles that are defined consistently across the Group. These principles emphasise the need to adjust the depth and scope of the assessment according to the risk. The same credit risk assessments are used as input for determining the internal ratings. Credit decisions at Nordea reflect Nordea’s view of both the customer rela- tionship and the credit risk. 2.3 Credit risk mitigation Credit risk mitigation is an inherent part of the credit deci- sion process. In every credit decision and review, the valu- ation of collateral is considered as well as the adequacy of covenants and other risk mitigations. A fundamental credit risk mitigation technique used by Nordea is to obtain col- lateral. Collateral is always required, when reasonable and possible, to minimise the risk of credit losses. At Nordea, the main collateral types are residential real estate, commercial real estate and other physical collateral. Collateral coverage should generally be higher for Credit committee structure Level 1 Board of Directors/Board Risk Committee Level 2 Chief Executive Officer (CEO) Credit Committee/Executive Credit Committee Level 3 Leveraged Buyout and Mergers and Acquisitions Credit Committee Real Estate Management Industry and Construction Credit Committee Corporate Large Corporations and Institutions Credit Committee Corporate Business Banking Credit Committee Int. Banks Countries, and Financial Institutions Credit Committee Shipping and Offshore Credit Committee Nordic Household Credit Committee Level 4 Six eyes decisions (rated customers) Four eyes decisions (scored customers) – two senior decision-makers from Group Credit Management Level 5 Four eyes decisions Level 6 Personal powers to act exposures of financially weaker customers than for those who are financially strong. Independently of the strength of the collateral position, the repayment capacity is the starting point for the credit assessment and the assignment of credit limits. Regarding large exposures, syndication of loans is the primary tool for managing concentration risk, while credit risk mitiga- tion using credit default swaps is applied to a limited extent. Covenants included in credit agreements are com- plementary to collateral protection. Most exposures of substantial size and complexity include appropriate covenants. Covenants provide early warning signs that enable Nordea to detect, and react on, a deterio- ration in the borrower’s credit quality or overall perfor- mance. Covenant breaches allow Nordea to cancel the credit facility and demand repayment of the outstanding credits. The collateral value should always be based on the market value. The market value is defined as the estimated amount for which the asset or liability could be exchanged on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowl- edgeably, prudently and without compulsion. From this market value, a haircut is applied. The haircut is defined as a percentage by which the asset’s market value is reduced ensuring a margin against loss. The haircut should reflect the volatility of the market value of the asset, liquidity and cost of liquidation. A minimum haircut is set for each col- lateral type. In addition to the haircut, potential high- er-ranking claims are also deducted from the market value when calculating the maximum collateral value. The same principles of calculation must be used for all exposures. 2.4 Exposures, allowances and provisions The maximum exposure to credit risk includes the carrying amount of loans and interest-bearing securities, accounted for at amortised cost and fair value, the counterparty credit risk in derivatives (see also section 3 ”Counterparty credit risk”) and nominal amounts of off-balance sheet commit- ments before loan loss allowances/provisions. The maxi- mum exposure to credit risk amounted to EUR 606bn at the end of the year (EUR 572bn). See Note 3.3. ”Classification and measurement” for relevant accounting policies. Nordea’s loans to the public increased by 6.8% to EUR 382bn during 2025 (EUR 358bn). The corporate portfolios increased by approximately 12.7%, while the household portfolios increased by 1.8%. The overall credit quality is solid with strongly rated customers, and with the macroe- conomic outlook improving during the year. However, close monitoring is performed due to uncertain macroeconomic developments and geopolitical changes. Of the lending to the public portfolio, corporate customers accounted for 49.5% (46.9%), household customers for 49.5% (51.9%) and the public sector for 1.0% (1.2%). Loans to central banks and credit institutions, mainly in the form of interbank deposits, increased to EUR 11bn at the end of 2025 (EUR 7bn). Credit-impaired loans held at amortised cost increased to EUR 3,135m (EUR 2,945m). The increase was mainly related to the household portfolios and to a lesser degree to the corporate porfolios. Credit-impaired loans for the household portfolios increased by 9% and EUR 123m and amounted to EUR 1,434m (EUR 1,311m). For the corporate portfolios, credit-impaired loans increased by 4% or EUR 62m and amounted to EUR 1,676m (EUR 1,614m). The largest increases were in the Consumer discretionary and services portfolio which increased by EUR 133m, driven by the Media and entertainment, Housing loans which increased by EUR 115m and Industrials which increased by EUR 86m, driven by Commercial and professional services. This was partly offset by minor reductions totalling EUR 130m in the Financial institutions, Maritime and Real estate portfolios. Net loan losses and similar net result for 2025 amounted to EUR 22m (EUR 206m), corresponding to an annual net loan loss ratio, including fair value mortgage loans, of 1bp (6bp). Individually calculated loan losses amounted to EUR 246m and were driven by lower than average provisions mainly for small and medium-sized companies, elevated write-offs and limited reversals. Moreover, model releases amounted to EUR 71m, mainly related to stage 2 and stage 3 exposures. Finally, manage- ment judgement allowances were reduced by EUR 138m during the year to EUR 276m by the end of 2025, driven by decreased uncertainty and lower credit risk due to lower interest rates and inflation. The management judgement ===== SIDA 281 ===== Nordea Annual Report 2025 280 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. allowances remain at a substantial level to address risks relating to the unstable geopolitical and macroeconomic environment. Total allowances were EUR 1,534m, down from EUR 1,800m in 2024. The allowances in relation to credit- impaired loans decreased from 36% to 31% with the corporate coverage ratio decreasing from 47% to 40% and the household coverage ratio from 23% to 21% in line with the updated assessment of the credit risk outlook for cor- porate and retail portfolios and Nordea’s sustained resil- ient credit quality. Stage 2 loans at amortised cost in the Group decreased to EUR 14,316m (EUR 16,366m). The decrease was mainly due to the improved economic environment and positive port- folio migration particularly in the second half of 2025, affecting both the household and corporate portfolios. The stage 2 coverage ratio decreased to 1.9% (2.2%). Forbearance is eased terms or restructuring due to the borrower experiencing or about to experience financial dif- ficulties. The intention of granting forbearance for a limited time period is to help the customer return to a sustainable financial situation ensuring full repayment of the outstand- ing debt. Examples of forbearance are changes in amorti- sation profile, repayment schedule, customer margin as well as easing of covenants. Forbearance is undertaken on a selective and individual basis followed by impairment testing. Forborne loans increased by EUR 326m during the year, with the household portfolios increasing by EUR 569m and the corporate portfolios decreasing by EUR 243m. The forbearance coverage ratio decreased from 15% to 14%. Maximum exposure to credit risk 31 Dec 2025 31 Dec 2024 EURm Note Amortised cost and fair value through other comprehensive income Financial assets at fair value through profit or loss Amortised cost and fair value through other comprehensive income Financial assets at fair value through profit or loss Loans to central banks and credit institutions G3.8 7,819 3,171 5,059 1,976 Loans to the public G3.8 294,061 89,179 277,799 81,384 Interest-bearing securities G3.9 48,703 31,171 41,284 32,182 Derivatives G3.12 – 17,633 – 25,211 Off-balance sheet items, nominal amounts G7.1, G7.2 114,321 234 107,036 249 Total 464,904 141,388 431,178 141,002 Collateral distribution 31 Dec 2025 31 Dec 2024 Financial collateral 0.9% 0.6% Receivables 0.9% 0.9% Residential real estate 74.8% 76.6% Commercial real estate 17.1% 16.8% Other physical collateral 6.3% 5.1% Total 100.0% 100.0% Allowances for credit risk EURm Note 31 Dec 2025 31 Dec 2024 Loans to central banks and credit institutions G3.8 5 10 Loans to the public G3.8 1,369 1,595 Interest-bearing securities measured at fair value through other compre hensive income or amortised cost G3.9 2 2 Off-balance sheet items G6 158 193 Total 1,534 1,800 Assets taken over for protection of claims 1 EURm 31 Dec 2025 31 Dec 2024 Current assets, carrying amount: Land and buildings 2 3 Shares and other participations 2 2 Other assets 2 4 Total 6 9 1) In accordance with Nordea’s policy for taking over assets for protection of claims, which is in compliance with the local banking business acts wherever Nordea is located. Assets used as collateral for the loan are generally taken over when the customer is not able to fulfil its obligations to Nordea. The assets taken over are disposed at the latest when full recovery is reached. Loan-to-value 1 31 Dec 2025 31 Dec 2024 Retail mortgage exposure EURbn % EURbn % <50% 133.9 83 128.4 83 50–70% 20.8 13 19.5 13 71–80% 4.4 2 4.0 2 81–90% 1.4 1 1.2 1 >90% 1.2 1 1.2 1 Total 161.7 100 154.3 100 1) The amounts and percentages in the table include the relevant part of a loan, not the total loan. Excludes loans under the standardised approach in the CRR, primarily related to loans acquired from Danske Bank in 2024. Forbearance EURm 31 Dec 2025 31 Dec 2024 Forborne loans 3,350 3,024 - of which defaulted 1,329 1,209 Allowances for individually assessed credit-impaired and forborne loans 460 465 - of which defaulted 418 412 Key ratios 31 Dec 2025 31 Dec 2024 Forbearance ratio1 1.1% 1.1% Forbearance coverage ratio2 14% 15% - of which defaulted 31% 34% 1) Forborne loans/Loans held at amortised cost before allowances. 2) Individual allowances on forborne loans/Forborne loans. Loans to corporate customers, by size of loans 31 Dec 2025 31 Dec 2024 Size in EURm Loans EURbn % Loans EURbn % 0–10 67.0 35 65.1 39 11–50 45.1 24 40.8 24 51–100 25.6 14 24.4 15 101–250 34.7 18 24.8 15 251–500 10.7 6 7.2 4 501– 6.0 3 5.4 3 Total 189.1 100 167.7 100 Credit-impaired loans and ratios 2025 2024 Gross credit-impaired loans, amortised cost, EURm 3,135 2,945 - of which servicing 1,228 1,133 - of which non-servicing 1,907 1,812 Impairment ratio (stage 3), gross, bp 104 104 Impairment ratio (stage 3), net, bp 72 66 Allowances in relation to loans, stages 1 and 2, bp 13 19 Total allowance ratio (stages 1, 2 and 3), bp 46 57 Allowances in relation to credit-impaired loans (stage 3), % 31 36 Past due loans 31 Dec 2025 31 Dec 2024 EURm Corporate customers Household customers Corporate customers Household customers 6–30 days 358 570 338 752 31–60 days 108 232 83 274 61–90 days 25 97 38 115 >90 days 289 757 413 784 Total 780 1,656 872 1,925 Past due (incl. impaired) loans divided by loans to the public after allowances, % 0.4 0.9 0.5 1.0 ===== SIDA 282 ===== Nordea Annual Report 2025 281 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Net loan losses and loan loss ratios 2025 2024 Net loan losses, EURm 21 198 Net loan loss ratio, amortised cost, Group, bp 1 7 - of which stage 3 7 9 - of which stages 1 and 2 -6 -2 Net loan loss ratio, including fair value mortgage loans, Group, bp1 1 6 Net loan loss ratio, including fair value mortgage loans, Personal Banking, bp 1 5 Net loan loss ratio, including fair value mortgage loans, Business Banking, bp 0 14 Net loan loss ratio, including fair value mortgage loans, Large Corporates & Institutions, bp -1 -2 1) Net loan losses and net result on loans in hold portfolios mandatorily held at fair value divided by total lending at amortised cost and at fair value, bp. Loans to the public measured at amortised cost and fair value 31 Dec 2025, EURm Denmark Finland Norway Sweden Other Total Financial institutions 2,956 2,191 835 12,184 988 19,154 Agriculture 4,621 312 3,310 282 5 8,530 Crops, plantations and hunting 2,791 158 37 149 5 3,140 Animal husbandry 1,787 150 31 58 0 2,026 Fishing and aquaculture 43 4 3,242 75 0 3,364 Natural resources 349 1,066 608 660 77 2,760 Paper and forest products 249 693 274 510 77 1,803 Mining and supporting activities 14 365 92 149 0 620 Oil, gas and offshore 86 8 242 1 0 337 Consumer staples 3,094 856 994 1,895 48 6,887 Food processing and beverages 367 264 658 631 0 1,920 Household and personal products 276 102 130 447 1 956 Healthcare 2,451 490 206 817 47 4,011 Consumer discretionary and services 2,560 2,255 2,447 4,849 23 12,134 Consumer durables 161 272 248 1,883 22 2,586 Media and entertainment 493 329 118 733 0 1,673 Retail trade 873 1,307 912 1,602 1 4,695 Air transportation 291 13 34 53 0 391 Accommodation and leisure 684 245 598 380 0 1,907 Telecommunication services 58 89 537 198 0 882 Loans to the public measured at amortised cost and fair value, cont. 31 Dec 2025, EURm Denmark Finland Norway Sweden Other Total Industrials 8,072 6,698 9,388 10,572 202 34,932 Materials 862 681 269 523 38 2,373 Capital goods 669 1,655 242 1,798 41 4,405 Commercial and professional services 2,500 1,020 2,049 2,246 95 7,910 Construction 1,178 986 3,983 1,966 0 8,113 Wholesale trade 1,669 1,003 1,010 2,199 7 5,888 Land transportation 515 790 547 995 17 2,864 IT services 679 563 1,288 845 4 3,379 Maritime 372 169 3,985 56 81 4,663 Shipbuilding 0 15 30 0 0 45 Shipping 26 71 3,836 38 81 4,052 Maritime services 346 83 119 18 0 566 Utilities and public service 2,481 3,035 1,885 1,391 1 8,793 Utilities distribution 1,877 1,191 1,125 1,034 0 5,227 Power production 188 1,549 565 170 1 2,473 Public services 416 295 195 187 0 1,093 Real estate 10,488 9,892 9,338 22,977 0 52,695 Commercial real estate 4,907 5,287 8,047 11,740 0 29,981 Residential real estate companies 2,757 1,086 571 3,221 0 7,635 Tenant-owned associations 2,824 3,519 720 8,016 0 15,079 Other industries 341 7 70 54 1,924 2,396 Total corporate 35,334 26,481 32,860 54,920 3,349 152,944 Housing loans 38,764 33,191 41,969 56,956 0 170,880 Collateralised lending 3,285 6,093 1,900 2,100 0 13,378 Non-collateralised lending 669 1,958 322 1,918 0 4,867 Household 42,718 41,242 44,191 60,974 0 189,125 Public sector 624 832 228 1,992 3 3,679 Reverse repurchase agreements 0 36,123 0 0 0 36,123 Loans to the public by country 78,676 104,678 77,279 117,886 3,352 381,871 Of which loans at fair value 52,997 36,182 0 0 0 89,179 ===== SIDA 283 ===== Nordea Annual Report 2025 282 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans to the public measured at amortised cost and fair value 31 Dec 2024, EURm Denmark Finland Norway Sweden Other Total Financial institutions 2,964 1,899 825 9,343 980 16,011 Agriculture 4,454 347 2,996 216 4 8,017 Crops, plantations and hunting 2,677 174 103 130 4 3,088 Animal husbandry 1,743 169 142 53 0 2,107 Fishing and aquaculture 34 4 2,751 33 0 2,822 Natural resources 171 1,106 736 453 91 2,557 Paper and forest products 147 797 286 394 91 1,715 Mining and supporting activities 15 299 90 58 0 462 Oil, gas and offshore 9 10 360 1 0 380 Consumer staples 3,427 824 1,187 1,956 55 7,449 Food processing and beverages 282 286 858 509 8 1,943 Household and personal products 213 96 131 415 2 857 Healthcare 2,932 442 198 1,032 45 4,649 Consumer discretionary and services 2,323 2,191 2,724 4,720 24 11,982 Consumer durables 158 319 249 1,869 23 2,618 Media and entertainment 491 348 144 735 0 1,718 Retail trade 730 1,160 1,164 1,435 0 4,489 Air transportation 253 15 30 42 0 340 Accommodation and leisure 626 276 626 371 0 1,899 Telecommunication services 65 73 511 268 1 918 Industrials 6,781 6,484 8,682 9,065 342 31,354 Materials 676 576 280 585 50 2,167 Capital goods 665 1,555 192 1,308 49 3,769 Commercial and professional services 1,957 772 2,049 1,684 203 6,665 Construction 1,024 1,161 3,683 1,857 0 7,725 Wholesale trade 1,739 1,073 1,009 2,160 23 6,004 Land transportation 270 728 689 781 15 2,483 IT services 450 619 780 690 2 2,541 Maritime 230 180 4,197 57 155 4,819 Shipbuilding 0 15 118 0 0 133 Shipping 31 71 3,907 35 155 4,199 Maritime services 199 94 172 22 0 487 Loans to the public measured at amortised cost and fair value, cont. 31 Dec 2024, EURm Denmark Finland Norway Sweden Other Total Utilities and public service 2,008 2,880 1,902 1,149 0 7,939 Utilities distribution 1,502 1,252 1,094 763 0 4,611 Power production 124 1,331 596 213 0 2,264 Public services 382 297 212 173 0 1,064 Real estate 9,365 9,173 8,950 19,273 0 46,761 Commercial real estate 4,092 4,902 7,677 9,143 0 25,814 Residential real estate companies 2,499 902 462 2,726 0 6,589 Tenant-owned associations 2,774 3,369 811 7,404 0 14,358 Other industries 294 0 41 47 1,792 2,174 Total corporate 32,017 25,084 32,240 46,279 3,443 139,063 Housing loans 41,174 33,261 41,563 51,420 0 167,418 Collateralised lending 3,719 5,985 1,676 2,018 0 13,398 Non-collateralised lending 746 2,094 352 1,769 0 4,961 Household 45,639 41,340 43,591 55,207 0 185,777 Public sector 676 706 82 2,652 3 4,119 Reverse repurchase agreements 0 28,629 0 0 0 28,629 Loans to the public by country 78,332 95,759 75,913 104,138 3,446 357,588 Of which loans at fair value 52,696 28,688 0 0 0 81,384 ===== SIDA 284 ===== Nordea Annual Report 2025 283 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans measured at amortised cost, broken down by sector and industry Gross Allowances Loans carrying amount31 Dec 2025, EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net loan losses1 Financial institutions 18,413 323 20 6 10 13 18,727 21 Agriculture 4,525 175 68 6 6 27 4,729 11 Crops, plantations and hunting 695 82 35 1 5 13 793 3 Animal husbandry 507 56 30 1 1 14 577 9 Fishing and aquaculture 3,323 37 3 4 0 0 3,359 -1 Natural resources 2,246 303 25 2 3 11 2,558 3 Paper and forest products 1,406 272 20 1 2 10 1,685 -1 Mining and supporting activities 584 30 4 1 0 1 616 1 Oil, gas and offshore 256 1 1 0 1 0 257 3 Consumer staples 5,814 308 26 4 9 10 6,125 6 Food processing and beverages 1,744 142 14 2 5 5 1,888 2 Household and personal products 734 37 4 0 1 3 771 1 Healthcare 3,336 129 8 2 3 2 3,466 3 Consumer discretionary and services 9,233 882 603 6 25 241 10,446 -8 Consumer durables 2,178 309 84 1 4 41 2,525 5 Media and entertainment 1,108 144 155 1 6 24 1,376 6 Retail trade 3,774 333 301 3 12 149 4,244 -19 Air transportation 188 1 3 0 0 1 191 1 Accommodation and leisure 1,161 91 59 1 3 26 1,281 -3 Telecommunication services 824 4 1 0 0 0 829 2 Industrials 28,535 3,388 686 25 105 266 32,213 -35 Materials 1,961 329 72 2 13 14 2,333 -4 Capital goods 3,706 620 44 3 19 18 4,330 -2 Commercial and professional services 5,970 551 126 6 16 48 6,577 -22 Construction 6,580 776 190 7 17 93 7,429 11 Wholesale trade 4,898 743 132 2 31 53 5,687 -11 Land transportation 2,617 153 44 2 4 19 2,789 -2 IT services 2,803 216 78 3 5 21 3,068 -5 Maritime 4,497 53 2 2 1 0 4,549 5 Shipbuilding 34 11 0 0 0 0 45 2 Shipping 4,000 28 1 2 0 0 4,027 3 Maritime services 463 14 1 0 1 0 477 0 Loans measured at amortised cost, broken down by sector and industry, cont. Gross Allowances Loans carrying amount31 Dec 2025, EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net loan losses1 Utilities and public service 7,312 186 93 4 4 31 7,552 0 Utilities distribution 4,207 113 86 2 2 28 4,374 -4 Power production 2,429 11 1 1 0 0 2,440 3 Public services 676 62 6 1 2 3 738 1 Real estate 41,590 1,472 149 13 13 66 43,119 0 Other industries 2,217 117 4 1 0 0 2,337 2 Total corporate 124,382 7,207 1,676 69 176 665 132,355 5 Housing loans 132,451 5,342 832 29 51 132 138,413 -11 Collateralised lending 12,168 1,002 354 15 20 112 13,377 -18 Non-collateralised lending 4,027 691 248 6 28 64 4,868 4 Household 148,646 7,035 1,434 50 99 308 156,658 -25 Public sector 3,603 56 22 1 0 1 3,679 -1 Loans to the public 276,631 14,298 3,132 120 275 974 292,692 -21 Loans to credit institutions and central banks 7,798 18 3 2 0 3 7,814 0 Total 284,429 14,316 3,135 122 275 977 300,506 -21 1) The table shows net loan losses related to on- and off-balance sheet exposures for the full year 2025. ===== SIDA 285 ===== Nordea Annual Report 2025 284 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans measured at amortised cost, broken down by sector and industry Gross Allowances Loans carrying amount31 Dec 2024, EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net loan losses1 Financial institutions 14,941 534 59 7 16 30 15,481 -9 Agriculture 4,304 238 76 6 15 31 4,566 -7 Crops, plantations and hunting 900 105 24 2 11 9 1,007 -11 Animal husbandry 632 85 50 1 3 22 741 5 Fishing and aquaculture 2,772 48 2 3 1 0 2,818 -1 Natural resources 2,173 292 23 3 4 10 2,471 -8 Paper and forest products 1,371 259 18 1 3 9 1,635 -5 Mining and supporting activities 427 29 4 1 1 1 457 0 Oil, gas and offshore 375 4 1 1 0 0 379 -3 Consumer staples 6,612 333 24 9 8 13 6,939 18 Food processing and beverages 1,722 201 10 3 4 6 1,920 11 Household and personal products 697 39 8 1 1 4 738 1 Healthcare 4,193 93 6 5 3 3 4,281 6 Consumer discretionary and services 9,353 1,090 470 12 36 226 10,639 -29 Consumer durables 2,227 312 89 2 5 51 2,570 -7 Media and entertainment 1,285 191 58 2 3 31 1,498 -6 Retail trade 3,587 458 265 6 23 116 4,165 -17 Air transportation 199 8 5 0 0 2 210 -1 Accommodation and leisure 1,202 117 47 2 4 21 1,339 3 Telecommunication services 853 4 6 0 1 5 857 -1 Industrials 25,620 3,661 600 36 100 292 29,453 -78 Materials 1,865 219 78 3 5 22 2,132 -12 Capital goods 3,085 618 31 4 15 17 3,698 6 Commercial and professional services 5,137 607 54 4 12 26 5,756 -22 Construction 6,237 946 204 12 29 95 7,251 -23 Wholesale trade 4,955 846 119 6 27 56 5,831 -25 Land transportation 2,216 189 28 4 6 14 2,409 9 IT services 2,125 236 86 3 6 62 2,376 -11 Maritime 4,552 156 51 0 1 31 4,727 12 Shipbuilding 7 128 0 0 1 0 134 -1 Shipping 4,165 14 51 0 0 31 4,199 13 Maritime services 380 14 0 0 0 0 394 0 Loans measured at amortised cost, broken down by sector and industry, cont. Gross Allowances Loans carrying amount31 Dec 2024, EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net loan losses1 Utilities and public service 6,567 147 108 5 3 63 6,751 -56 Utilities distribution 3,634 75 104 2 1 61 3,749 -57 Power production 2,222 15 2 1 0 0 2,238 -1 Public services 711 57 2 2 2 2 764 2 Real estate 36,395 1,811 191 19 20 59 38,299 35 Other industries 1,899 149 12 2 0 2 2,056 1 Total corporate 112,416 8,411 1,614 99 203 757 121,382 -121 Housing loans 125,917 5,955 717 32 74 139 132,344 -24 Collateralised lending 12,030 1,142 365 23 30 86 13,398 -12 Non-collateralised lending 4,047 835 229 19 50 81 4,961 -40 Household 141,994 7,932 1,311 74 154 306 150,703 -76 Public sector 4,087 14 20 1 0 1 4,119 -1 Loans to the public 258,497 16,357 2,945 174 357 1,064 276,204 -198 Loans to credit institutions and central banks 5,050 9 0 5 0 5 5,049 0 Total 263,547 16,366 2,945 179 357 1,069 281,253 -198 1) The table shows net loan losses related to on- and off-balance sheet exposures for the full year 2024. ===== SIDA 286 ===== Nordea Annual Report 2025 285 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value) 31 Dec 2025, EURm Denmark Finland Norway Sweden Total Financial institutions 10 1 3 6 20 Agriculture 130 34 2 0 166 Crops, plantations and hunting 82 18 1 0 101 Animal husbandry 48 15 0 0 63 Fishing and aquaculture 0 1 1 0 2 Natural resources 5 14 6 1 26 Paper and forest products 5 14 2 1 22 Mining and supporting activities 0 0 4 0 4 Oil, gas and offshore 0 0 0 0 0 Consumer staples 9 11 9 3 32 Food processing and beverages 2 5 8 0 15 Household and personal products 4 3 0 0 7 Healthcare 3 3 1 3 10 Consumer discretionary and services 193 171 26 230 620 Consumer durables 3 46 8 28 85 Media and entertainment 5 23 1 130 159 Retail trade 180 78 14 40 312 Air transportation 0 0 2 1 3 Accommodation and leisure 5 24 1 30 60 Telecommunication services 0 0 0 1 1 Industrials 162 174 189 206 731 Materials 14 8 6 45 73 Capital goods 16 25 1 5 47 Commercial and professional services 68 18 29 26 141 Construction 23 64 93 25 205 Wholesale trade 34 18 51 35 138 Land transportation 4 27 5 11 47 IT services 3 14 4 59 80 Maritime 0 2 0 0 2 Shipbuilding 0 0 0 0 0 Shipping 0 1 0 0 1 Maritime services 0 1 0 0 1 Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value), cont. 31 Dec 2025, EURm Denmark Finland Norway Sweden Total Utilities and public service 72 7 0 18 97 Utilities distribution 64 6 0 16 86 Power production 0 1 0 0 1 Public services 8 0 0 2 10 Real estate 28 108 28 10 174 Other industries 3 0 0 1 4 Total corporate 612 522 263 475 1,872 Housing loans 321 506 186 102 1,115 Collateralised lending 75 184 85 10 354 Non-collateralised lending 26 135 12 75 248 Household 422 825 283 187 1,717 Public sector 22 0 0 0 22 Total impaired loans 1,056 1,347 546 662 3,611 of which fair value 479 0 0 0 479 ===== SIDA 287 ===== Nordea Annual Report 2025 286 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value) 31 Dec 2024, EURm Denmark Finland Norway Sweden Total Financial institutions 50 3 5 2 60 Agriculture 146 24 14 1 185 Crops, plantations and hunting 64 7 5 1 77 Animal husbandry 80 17 9 0 106 Fishing and aquaculture 2 0 0 0 2 Natural resources 7 9 7 0 23 Paper and forest products 7 8 4 0 19 Mining and supporting activities 0 1 3 0 4 Oil, gas and offshore 0 0 0 0 0 Consumer staples 4 13 6 3 26 Food processing and beverages 1 7 1 1 10 Household and personal products 1 5 3 0 9 Healthcare 2 1 2 2 7 Consumer discretionary and services 146 142 30 165 483 Consumer durables 3 50 2 34 89 Media and entertainment 4 19 1 35 59 Retail trade 131 50 24 68 273 Air transportation 0 2 2 1 5 Accommodation and leisure 8 21 1 20 50 Telecommunication services 0 0 0 7 7 Industrials 134 174 170 146 624 Materials 59 5 8 6 78 Capital goods 7 23 1 3 34 Commercial and professional services 15 16 21 9 61 Construction 14 89 83 25 211 Wholesale trade 33 15 46 28 122 Land transportation 3 13 5 9 30 IT services 3 13 6 66 88 Maritime 0 0 51 0 51 Shipbuilding 0 0 0 0 0 Shipping 0 0 51 0 51 Maritime services 0 0 0 0 0 Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value), cont. 31 Dec 2024, EURm Denmark Finland Norway Sweden Total Utilities and public service 99 8 1 1 109 Utilities distribution 99 5 0 0 104 Power production 0 2 0 0 2 Public services 0 1 1 1 3 Real estate 26 123 49 13 211 Other industries 5 0 7 0 12 Total corporate 617 496 340 331 1,784 Housing loans 352 439 148 98 1,037 Collateralised lending 83 180 82 20 365 Non-collateralised lending 24 130 10 64 228 Household 459 749 240 182 1,630 Public sector 21 0 0 0 21 Total impaired loans 1,097 1,245 580 513 3,435 of which fair value 490 0 0 0 490 ===== SIDA 288 ===== Nordea Annual Report 2025 287 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans to the public measured at amortised cost 31 Dec 2025, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio, %2 Loans measured at amortised cost Financial institutions 21 11 20 11 29 6 10 13 65 18,727 Agriculture 11 23 68 143 39 6 6 27 40 4,729 Crops, plantations and hunting 3 38 35 431 19 1 5 13 37 793 Animal husbandry 9 156 30 506 16 1 1 14 47 577 Fishing and aquaculture -1 -3 3 9 4 4 0 0 0 3,359 Natural resources 3 12 25 97 16 2 3 11 44 2,558 Paper and forest products -1 -6 20 118 13 1 2 10 50 1,685 Mining and supporting activities 1 16 4 65 2 1 0 1 25 616 Oil, gas and offshore 3 117 1 39 1 0 1 0 0 257 Consumer staples 6 10 26 42 23 4 9 10 38 6,125 Food processing and beverages 2 11 14 74 12 2 5 5 36 1,888 Household and personal products 1 13 4 52 4 0 1 3 75 771 Healthcare 3 9 8 23 7 2 3 2 25 3,466 Consumer discretionary and services -8 -8 603 563 272 6 25 241 40 10,446 Consumer durables 5 20 84 327 46 1 4 41 49 2,525 Media and entertainment 6 44 155 1,102 31 1 6 24 15 1,376 Retail trade -19 -45 301 683 164 3 12 149 50 4,244 Air transportation 1 52 3 156 1 0 0 1 33 191 Accommodation and leisure -3 -23 59 450 30 1 3 26 44 1,281 Telecommunication services 2 24 1 12 0 0 0 0 0 829 Loans to the public measured at amortised cost, cont. 31 Dec 2025, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio, %2 Loans measured at amortised cost Industrials -35 -11 686 210 396 25 105 266 39 32,213 Materials -4 -17 72 305 29 2 13 14 19 2,333 Capital goods -2 -5 44 101 40 3 19 18 41 4,330 Commercial and professional services -22 -33 126 190 70 6 16 48 38 6,577 Construction 11 15 190 252 117 7 17 93 49 7,429 Wholesale trade -11 -19 132 229 86 2 31 53 40 5,687 Land transportation -2 -7 44 156 25 2 4 19 43 2,789 IT services -5 -16 78 252 29 3 5 21 27 3,068 Maritime 5 11 2 4 3 2 1 0 0 4,549 Shipbuilding 2 444 0 0 0 0 0 0 0 45 Shipping 3 7 1 2 2 2 0 0 0 4,027 Maritime services 0 0 1 21 1 0 1 0 0 477 Utilities and public service 0 0 93 123 39 4 4 31 33 7,552 Utilities distribution -4 -9 86 195 32 2 2 28 33 4,374 Power production 3 12 1 4 1 1 0 0 0 2,440 Public services 1 14 6 81 6 1 2 3 50 738 Real estate 0 0 149 34 92 13 13 66 44 43,119 Other industries 2 9 4 17 1 1 0 0 0 2,337 Total corporate 5 0 1,676 126 910 69 176 665 40 132,355 Housing loans -11 -1 832 60 212 29 51 132 16 138,413 Collateralised lending -18 -13 354 262 147 15 20 112 32 13,377 Non-collateralised lending 4 8 248 499 98 6 28 64 26 4,868 Household -25 -2 1,434 91 457 50 99 308 21 156,658 Public sector -1 -3 22 60 2 1 0 1 5 3,679 Loans to the public -21 -1 3,132 107 1,369 120 275 974 31 292,692 1) Including provisions for off-balance sheet exposures. 2) Allowances for stage 3 divided by exposures in stage 3. ===== SIDA 289 ===== Nordea Annual Report 2025 288 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans to the public measured at amortised cost 31 Dec 2024, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio, %2 Loans measured at amortised cost Financial institutions -9 -6 59 38 53 7 16 30 51 15,481 Agriculture -7 -15 76 165 52 6 15 31 41 4,566 Crops, plantations and hunting -11 -109 24 233 22 2 11 9 38 1,007 Animal husbandry 5 67 50 652 26 1 3 22 44 741 Fishing and aquaculture -1 -4 2 7 4 3 1 0 0 2,818 Natural resources -8 -32 23 92 17 3 4 10 43 2,471 Paper and forest products -5 -31 18 109 13 1 3 9 50 1,635 Mining and supporting activities 0 0 4 87 3 1 1 1 25 457 Oil, gas and offshore -3 -79 1 26 1 1 0 0 0 379 Consumer staples 18 26 24 34 30 9 8 13 54 6,939 Food processing and beverages 11 57 10 52 13 3 4 6 60 1,920 Household and personal products 1 14 8 108 6 1 1 4 50 738 Healthcare 6 14 6 14 11 5 3 3 50 4,281 Consumer discretionary and services -29 -27 470 431 274 12 36 226 48 10,639 Consumer durables -7 -27 89 339 58 2 5 51 57 2,570 Media and entertainment -6 -40 58 378 36 2 3 31 53 1,498 Retail trade -17 -41 265 615 145 6 23 116 44 4,165 Air transportation -1 -48 5 236 2 0 0 2 40 210 Accommodation and leisure 3 22 47 344 27 2 4 21 45 1,339 Telecommunication services -1 -12 6 70 6 0 1 5 83 857 Loans to the public measured at amortised cost, cont. 31 Dec 2024, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio, %2 Loans measured at amortised cost Industrials -78 -26 600 201 428 36 100 292 49 29,453 Materials -12 -56 78 361 30 3 5 22 28 2,132 Capital goods 6 16 31 83 36 4 15 17 55 3,698 Commercial and professional services -22 -38 54 93 42 4 12 26 48 5,756 Construction -23 -32 204 276 136 12 29 95 47 7,251 Wholesale trade -25 -43 119 201 89 6 27 56 47 5,831 Land transportation 9 37 28 115 24 4 6 14 50 2,409 IT services -11 -46 86 351 71 3 6 62 72 2,376 Maritime 12 25 51 107 32 0 1 31 61 4,727 Shipbuilding -1 -75 0 0 1 0 1 0 0 134 Shipping 13 31 51 121 31 0 0 31 61 4,199 Maritime services 0 0 0 0 0 0 0 0 0 394 Utilities and public service -56 -83 108 158 71 5 3 63 58 6,751 Utilities distribution -57 -152 104 273 64 2 1 61 59 3,749 Power production -1 -4 2 9 1 1 0 0 0 2,238 Public services 2 26 2 26 6 2 2 2 100 764 Real estate 35 9 191 50 98 19 20 59 31 38,299 Other industries 1 5 12 58 4 2 0 2 17 2,056 Total corporate -121 -10 1,614 132 1,059 99 203 757 47 121,382 Housing loans -24 -2 717 54 245 32 74 139 19 132,344 Collateralised lending -12 -9 365 270 139 23 30 86 24 13,398 Non-collateralised lending -40 -81 229 448 150 19 50 81 35 4,961 Household -76 -5 1,311 87 534 74 154 306 23 150,703 Public sector -1 -2 20 49 2 1 0 1 5 4,119 Loans to the public -198 -7 2,945 106 1,595 174 357 1,064 36 276,204 1) Including provisions for off-balance sheet exposures. 2) Allowances for stage 3 divided by exposures in stage 3. ===== SIDA 290 ===== Nordea Annual Report 2025 289 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Loans to the public measured at amortised cost, geographical breakdown 1 Gross Allowances EURm Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Net 31 Dec 2025, EURm Denmark 24,232 1,404 547 12 84 219 25,868 Finland 61,116 6,182 1,350 31 101 456 68,060 Norway 68,255 3,865 539 37 40 118 72,464 Sweden 104,745 2,676 626 36 45 153 107,813 Russia 1 0 0 0 0 0 1 US 3,087 9 1 1 1 0 3,095 Other 15,195 162 69 3 4 28 15,391 Total 276,631 14,298 3,132 120 275 974 292,692 31 Dec 2024, EURm Denmark 24,274 1,425 585 33 94 283 25,874 Finland 59,238 6,704 1,235 36 134 405 66,602 Norway 66,233 4,805 563 52 55 149 71,345 Sweden 92,626 3,243 497 49 68 202 96,047 Russia 1 0 0 0 0 0 1 US 2,837 5 1 0 1 0 2,842 Other 13,288 175 64 4 5 25 13,493 Total 258,497 16,357 2,945 174 357 1,064 276,204 1) Based on the customer’s country of domicile. ===== SIDA 291 =====