FULLTEXT DEL 9 AV 11
Årsredovisning 2025
Nordea Annual Report 2025 290 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Carrying amount of loans measured at amortised cost, before allowances Central banks and credit institutions The public Total EURm Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2025 Opening balance at 1 Jan 2025 5,050 9 0 5,059 258,497 16,357 2,945 277,799 263,547 16,366 2,945 282,858 Origination and acquisition 5,701 3 – 5,704 77,824 1,330 127 79,281 83,525 1,333 127 84,985 Transfers between stage 1 and stage 2 (net) -1 1 – – -795 795 – – -796 796 – – Transfers between stage 2 and stage 3 (net) – 0 0 – – -312 312 – – -312 312 – Transfers between stage 1 and stage 3 (net) 0 – 0 – -196 – 196 – -196 – 196 – Repayments and disposals -7,618 -4 0 -7,622 -65,669 -3,602 -641 -69,912 -73,287 -3,606 -641 -77,534 Write-offs – – – – – – -360 -360 – – -360 -360 Other changes1 4,581 9 3 4,593 3,459 -377 530 3,612 8,040 -368 533 8,205 Translation differences 85 0 0 85 3,511 107 23 3,641 3,596 107 23 3,726 Closing balance at 31 Dec 2025 7,798 18 3 7,819 276,631 14,298 3,132 294,061 284,429 14,316 3,135 301,880 2024 Opening balance at 1 Jan 2024 3,079 8 4 3,091 254,282 16,199 2,453 272,934 257,361 16,207 2,457 276,025 Origination and acquisition 4,154 4 – 4,158 77,885 1,524 94 79,503 82,039 1,528 94 83,661 Transfers between stage 1 and stage 2 (net) -7 7 – – -1,586 1,586 – – -1,593 1,593 – – Transfers between stage 2 and stage 3 (net) – 0 0 – – -371 371 – – -371 371 – Transfers between stage 1 and stage 3 (net) 2 – -2 – -377 – 377 – -375 – 375 – Repayments and disposals -5,938 -6 -2 -5,946 -63,050 -3,560 -553 -67,163 -68,988 -3,566 -555 -73,109 Write-offs – – – – – – -226 -226 – – -226 -226 Other changes1 3,235 -4 0 3,231 -5,152 1,164 447 -3,541 -1,917 1,160 447 -310 Translation differences 525 0 0 525 -3,505 -185 -18 -3,708 -2,980 -185 -18 -3,183 Closing balance at 31 Dec 2024 5,050 9 0 5,059 258,497 16,357 2,945 277,799 263,547 16,366 2,945 282,858 1) Other changes are mainly related to increased utilisation of credits granted in earlier years and revolving products. ===== SIDA 292 ===== Nordea Annual Report 2025 291 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Movements in allowance accounts for loans measured at amortised cost Central banks and credit institutions The public Total EURm Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 2025 Opening balance at 1 Jan 2025 -5 0 -5 -10 -174 -357 -1,064 -1,595 -179 -357 -1,069 -1,605 Origination and acquisition 0 0 0 0 -32 -9 -12 -53 -32 -9 -12 -53 Transfers from stage 1 to stage 2 0 0 – 0 6 -72 – -66 6 -72 – -66 Transfers from stage 1 to stage 3 0 – 0 0 1 – -54 -53 1 – -54 -53 Transfers from stage 2 to stage 1 0 0 – 0 -4 55 – 51 -4 55 – 51 Transfers from stage 2 to stage 3 – 0 0 0 – 38 -112 -74 – 38 -112 -74 Transfers from stage 3 to stage 1 0 – 0 0 -1 – 5 4 -1 – 5 4 Transfers from stage 3 to stage 2 – 0 0 0 – -7 28 21 – -7 28 21 Changes in credit risk without stage transfer 0 0 2 2 42 30 23 95 42 30 25 97 Repayments and disposals 3 0 0 3 43 49 52 144 46 49 52 147 Write-off through decrease in allowance account – – 0 0 – – 166 166 – – 166 166 Translation differences 0 0 0 0 -1 -2 -6 -9 -1 -2 -6 -9 Closing balance at 31 Dec 2025 -2 0 -3 -5 -120 -275 -974 -1,369 -122 -275 -977 -1,374 2024 Opening balance at 1 Jan 2024 -5 0 -16 -21 -201 -410 -1,021 -1,632 -206 -410 -1,037 -1,653 Origination and acquisition -1 0 0 -1 -50 -22 -11 -83 -51 -22 -11 -84 Transfers from stage 1 to stage 2 0 0 – 0 9 -143 – -134 9 -143 – -134 Transfers from stage 1 to stage 3 0 – 0 0 1 – -145 -144 1 – -145 -144 Transfers from stage 2 to stage 1 0 0 – 0 -8 75 – 67 -8 75 – 67 Transfers from stage 2 to stage 3 – 0 0 0 – 27 -155 -128 – 27 -155 -128 Transfers from stage 3 to stage 1 0 – 0 0 0 – 6 6 0 – 6 6 Transfers from stage 3 to stage 2 – 0 0 0 – -11 36 25 – -11 36 25 Changes in credit risk without stage transfer -1 0 10 9 20 30 34 84 19 30 44 93 Repayments and disposals 2 0 1 3 52 95 97 244 54 95 98 247 Write-off through decrease in allowance account – – – – – – 85 85 – – 85 85 Translation differences 0 0 0 0 3 2 10 15 3 2 10 15 Closing balance at 31 Dec 2024 -5 0 -5 -10 -174 -357 -1,064 -1,595 -179 -357 -1,069 -1,605 The tables show the changes in exposure/allowances for each stage during the year. If an exposure is moved to e.g. stage 2 from stage 1, there will be a reversal in stage 1 and an increase in stage 2. ===== SIDA 293 ===== Nordea Annual Report 2025 292 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Movements in provisions for off-balance sheet items EURm Stage 1 Stage 2 Stage 3 Total 2025 Opening balance at 1 Jan 2025 58 114 21 193 Origination and acquisition 3 2 0 5 Transfers from stage 1 to stage 2 -2 28 – 26 Transfers from stage 1 to stage 3 0 – 4 4 Transfers from stage 2 to stage 1 0 -13 – -13 Transfers from stage 2 to stage 3 – -3 6 3 Transfers from stage 3 to stage 1 0 – 0 0 Transfers from stage 3 to stage 2 – 1 -2 -1 Changes in credit risk without stage transfer -14 0 4 -10 Repayments and disposals -17 -29 -4 -50 Write-off through decrease in allowance account – – 0 0 Translation differences 0 1 0 1 Closing balance at 31 Dec 2025 28 101 29 158 2024 Opening balance at 1 Jan 2024 52 94 22 168 Origination and acquisition 12 17 0 29 Transfers from stage 1 to stage 2 -2 47 – 45 Transfers from stage 1 to stage 3 0 – 4 4 Transfers from stage 2 to stage 1 1 -33 – -32 Transfers from stage 2 to stage 3 – -2 4 2 Transfers from stage 3 to stage 1 0 – -1 -1 Transfers from stage 3 to stage 2 – 1 -2 -1 Changes in credit risk without stage transfer 9 6 -4 11 Repayments and disposals -13 -15 -2 -30 Write-off through decrease in allowance account – – 0 0 Translation differences -1 -1 0 -2 Closing balance at 31 Dec 2024 58 114 21 193 2.5 Sensitivities One important factor in estimating expected credit losses in accordance with IFRS 9 is to assess what constitutes a significant increase in credit risk. To understand the sensi- tivities to these triggers, Nordea has calculated model-based provisions under two different scenarios: Triggers Scenario 1 Scenario 2 Retail portfolios Relative threshold 200% 150% 250% Non-retail portfolios Relative threshold 150% 100% 200% Absolute 12-month threshold 20bp 15bp 25bp Absolute lifetime threshold 400bp 350bp 450bp Notching1 1–6 1 less 1 more 1) For exposures with initial recognition before the transition to IFRS 9 (1 Jan 2018), stage classification is decided based on changes in rating grades. The trigger in scenario 1 is set at one notch less than in the model actually used and in scenario 2 the trigger is set at one notch more than in the model used. The provisions would have increased by EUR 12m (EUR 11m) in scenario 1 and decreased by EUR 9m (EUR 12m) in scenario 2. For more information on the rating scale and average PDs, see the tables “Rating/scoring information on loans measured at amortised cost”. The provisions are sensitive to rating migration even if the triggers are not reached. The table below shows the impact on provisions from a one notch downgrade of all Nordea’s exposures. It includes both the impact of the higher risk for all exposures and the impact of transferring exposures from stage 1 to stage 2 that reach the trigger. It also includes the impact of exposures with one rating grade above default going into default, which is estimated at EUR 30m (EUR 44m). This figure is based on calcula- tions with the statistical model rather than individual esti- mates that would be the case in reality for material defaulted loans. Sensitivities 31 Dec 2025 31 Dec 2024 EURm Recognised provisions Provisions if one notch downgrade Recognised provisions Provisions if one notch downgrade Personal Banking 371 447 388 457 Business Banking 840 958 1,040 1,155 Large Corporates & Institutions 295 328 348 376 Other 28 33 24 31 Total 1,534 1,766 1,800 2,019 ===== SIDA 294 ===== Nordea Annual Report 2025 293 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. 2.6 Forward-looking information Forward-looking information is used for both assessing significant increases in credit risk and calculating expected credit losses. Nordea uses three macroeconomic scenarios: a baseline scenario, a favourable scenario and an adverse scenario. During the first half of 2025, in response to esca- lated trade tensions and heightened macroeconomic uncertainty, Nordea temporarily applied a 100% weighting to the adverse scenario in its expected credit loss (ECL) calculations. As uncertainty diminished in the third quar- ter, Nordea reverted to its standard scenario weightings: baseline 60%, adverse 20% and favourable 20% (the same weightings as at the end of 2024). The macroeconomic scenarios are provided by Group Risk in Nordea, based on the Oxford Economics Model. The forecast is a combination of modelling and expert judgement, subject to thorough checks and quality control processes. The model has been built to give a good description of the historical relationships between eco- nomic variables and to capture the key linkages between those variables. The forecast period in the model is ten years. For periods beyond, a long-term average is used in the ECL calculations. The macroeconomic scenarios reflect Nordea’s view of how the Nordic economies might develop in the light of continued geopolitical uncertainty, trade conflicts and weak growth in major European economies. When devel- oping the scenarios and determining the relative weight- ing between them, Nordea took into account projections made by Nordic central banks, Nordea Research and the European Central Bank. The baseline scenario foresees moderate growth in the Nordic economies in 2026, supported by lower inflation and lower interest rates. The uncertainty around foreign trade has receded with the conclusion of the EU-US trade agreement. The expansion is expected to continue in Denmark, Finland and Sweden in 2027 and 2028. The exception is Norway, where economic growth in the com- ing years is expected to be near zero due to falling invest- ment in the offshore sector. Growth in the Norwegian mainland economy will continue at a modest pace. The accelerating pace of growth is expected to drive unemployment down in Finland and Sweden, while unem- ployment in Denmark and Norway will remain largely unchanged. Home prices are expected to continue grow- ing in the coming years, supported by lower interest rates. The risks around the baseline forecast are tilted to the downside, with the upside scenario deviating less from the baseline than the adverse. Nordea’s two alternative macroeconomic scenarios cover a range of plausible risk factors which may cause growth to deviate from the baseline scenario. A renewed escalation of the trade conflict between the US and sev- eral countries could trigger a European and Nordic reces- sion as firms postpone investments, exports slow down and households cut spending due to weakening labour markets. Growth may also be depressed by escalating hybrid warfare, which could weigh on business and con- sumer confidence. Central banks may regard the inflation- ary impulse from higher tariffs as temporary and continue cutting interest rates, with rates moving lower than in the baseline scenario. Lower tariffs and an unwinding of trade policy uncertainty, on the other hand, may lead to a stronger recovery than assumed in the baseline scenario. ===== SIDA 295 ===== Nordea Annual Report 2025 294 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scenarios and provisions 2025 2026 2027 2028 Unweighted ECL, EURm Probability weight Model-based allowances/ provisions, EURm Adjustment model- based allowances/ provisions, EURm Individual allowances/ provisions, EURm Total allowances/ provisions, EURm Denmark Favourable scenario GDP growth, % 3.6 2.1 1.9 102 20% Unemployment, % 2.5 2.4 2.4 Change in household consumption, % 2.3 2.4 2.1 Change in house prices, % 4.6 3.6 2.0 Baseline scenario GDP growth, % 2.0 1.7 1.7 107 60% 109 65 202 376 Unemployment, % 2.9 2.9 2.9 Change in household consumption, % 2.0 2.0 2.0 Change in house prices, % 3.6 3.3 2.0 Adverse scenario GDP growth, % -0.9 1.0 1.6 120 20% Unemployment, % 4.6 4.7 4.7 Change in household consumption, % 0.5 1.0 1.6 Change in house prices, % -5.4 1.1 2.0 Finland Favourable scenario GDP growth, % 2.2 2.3 2.0 285 20% Unemployment, % 9.6 8.8 8.8 Change in household consumption, % 1.7 1.9 1.8 Change in house prices, % 3.8 2.8 2.0 Baseline scenario GDP growth, % 1.3 1.7 1.7 287 60% 288 107 228 623 Unemployment, % 9.7 9.1 9.1 Change in household consumption, % 1.5 1.7 1.7 Change in house prices, % 2.0 2.0 2.0 Adverse scenario GDP growth, % -1.7 1.0 1.1 296 20% Unemployment, % 11.2 10.9 10.8 Change in household consumption, % -0.7 1.8 1.1 Change in house prices, % -2.2 1.0 2.0 ===== SIDA 296 ===== Nordea Annual Report 2025 295 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scenarios and provisions 2025, cont. 2026 2027 2028 Unweighted ECL, EURm Probability weight Model-based allowances/ provisions, EURm Adjustment model- based allowances/ provisions, EURm Individual allowances/ provisions, EURm Total allowances/ provisions, EURm Norway Favourable scenario GDP growth, % 3.0 -0.4 0.1 86 20% Unemployment, % 3.8 3.9 3.9 Change in household consumption, % 2.6 1.9 1.7 Change in house prices, % 5.2 4.9 4.0 Baseline scenario GDP growth, % 1.2 0.2 -0.3 88 60% 88 59 71 218 Unemployment, % 4.3 4.2 4.2 Change in household consumption, % 2.5 1.8 1.5 Change in house prices, % 4.6 4.1 2.0 Adverse scenario GDP growth, % -0.8 0 0.5 92 20% Unemployment, % 5.5 5.5 5.3 Change in household consumption, % 2.2 1.1 1.1 Change in house prices, % -6.4 0.5 1.9 Sweden Favourable scenario GDP growth, % 3.6 3.0 2.2 89 20% Unemployment, % 8.1 7.5 7.0 Change in household consumption, % 3.2 2.9 2.6 Change in house prices, % 5.6 4.7 2.3 Baseline scenario GDP growth, % 2.5 2.1 2.1 91 60% 92 76 141 309 Unemployment, % 8.4 7.9 7.5 Change in household consumption, % 2.9 2.5 2.5 Change in house prices, % 2.7 4.6 2.0 Adverse scenario GDP growth, % -1.5 1.6 1.6 99 20% Unemployment, % 11.4 11.1 10.6 Change in household consumption, % 0.8 0.9 1.6 Change in house prices, % -4.1 0.6 1.9 Non-Nordic 1 3 4 8 Total 578 310 646 1,534 ===== SIDA 297 ===== Nordea Annual Report 2025 296 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scenarios and provisions 2024 2025 2026 2027 Unweighted ECL, EURm Probability weight Model-based allowances/ provisions, EURm Adjustment model- based allowances/ provisions, EURm Individual allowances/ provisions, EURm Total allowances/ provisions, EURm Denmark Favourable scenario GDP growth, % 3.6 1.8 1.7 118 20% Unemployment, % 2.5 2.5 2.4 Change in household consumption, % 2.1 2.1 1.9 Change in house prices, % 5.0 3.8 2.0 Baselin e scenario GDP growth, % 2.3 1.5 1.5 123 60% 125 112 236 473 Unemployment, % 2.9 2.9 2.9 Change in household consumption, % 1.8 1.8 1.8 Change in house prices, % 3.2 3.2 2.0 Adverse scenario GDP growth, % -0.7 0.8 1.5 137 20% Unemployment, % 4.6 4.7 4.7 Change in household consumption, % 0.2 0.7 1.6 Change in house prices, % -4.3 1.1 2.0 Finland Favourable scenario GDP growth, % 3.0 2.2 1.2 293 20% Unemployment, % 7.8 7.4 7.5 Change in household consumption, % 0.8 1.5 1.2 Change in house prices, % 3.8 2.6 2.0 Baseline scenario GDP growth, % 1.1 1.8 1.8 297 60% 297 130 189 616 Unemployment, % 8.1 7.8 7.8 Change in household consumption, % 0.5 1.3 1.3 Change in house prices, % 2.4 2.2 2.0 Adverse scenario GDP growth, % -1.7 0.8 1.3 303 20% Unemployment, % 9.2 9.1 9.1 Change in household consumption, % -0.4 0.5 0.8 Change in house prices, % -2.5 1.0 2.0 ===== SIDA 298 ===== Nordea Annual Report 2025 297 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scenarios and provisions 2024, cont. 2025 2026 2027 Unweighted ECL, EURm Probability weight Model-based allowances/ provisions, EURm Adjustment model- based allowances/ provisions, EURm Individual allowances/ provisions, EURm Total allowances/ provisions, EURm Norway Favourable scenario GDP growth, % 2.2 1.4 0.8 84 20% Unemployment, % 3.8 3.8 3.6 Change in household consumption, % 2.7 2.3 1.9 Change in house prices, % 4.2 2.8 2.6 Baseline scenario GDP growth, % 1.8 0.5 0.5 85 60% 86 108 99 293 Unemployment, % 4.0 4.1 4.0 Change in household consumption, % 2.7 2.2 1.9 Change in house prices, % 2.8 2.5 2.6 Adverse scenario GDP growth, % -1.7 0.2 0.5 91 20% Unemployment, % 4.8 5.0 4.8 Change in household consumption, % 2.4 1.6 1.5 Change in house prices, % -5.8 0.5 1.9 Sweden Favourable scenario GDP growth, % 3.5 2.6 1.8 90 20% Unemployment, % 8.0 7.6 7.6 Change in household consumption, % 3.1 3.2 3.0 Change in house prices, % 5.1 2.9 2.0 Baseline scenario GDP growth, % 2.1 2.3 1.8 92 60% 93 138 179 410 Unemployment, % 8.4 8.0 8.0 Change in household consumption, % 2.8 2.9 2.9 Change in house prices, % 3.6 2.6 2.0 Adverse scenario GDP growth, % -1.8 1.3 1.8 100 20% Unemployment, % 10.7 10.6 10.4 Change in household consumption, % 1.1 1.5 2.3 Change in house prices, % -3.2 0.6 2.0 Non-Nordic 11 -3 0 8 Total 612 485 703 1,800 ===== SIDA 299 ===== Nordea Annual Report 2025 298 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. 2.7 Management judgements At the end of the year adjustments to model-based allow- ances/provisions amounted to EUR 310m, including man- agement judgement allowances of EUR 276m. The management judgement allowances of EUR 276m are intended to cover excess losses from macroeconomic shocks and uncertainties that are regarded as extraordi- nary in relation to a normal contraction in the economic cycle and are therefore not adequately captured by the existing IFRS 9 ECL modelling as well as known IFRS 9 model and data issues to be captured in later model updates. The uncertainties are mainly related to geopolitical and macroeconomic conditions. The level at the end of 2025 compared to the end of 2024 was reduced by EUR 138m, reflecting a continued decline in the financial and economic risks influencing loan losses, driven by decreased uncertainty and the per- sistence of strong credit quality. Management judgement allowances coverage EURm 31 Dec 2025 31 Dec 2024 Related to corporate exposures in BB 98 151 Related to corporate exposures in LC&I 79 111 Related to household exposures 99 152 Total management judgement allowances 276 414 2.8 Rating and scoring distribution One way of assessing credit quality is through an analysis of the distribution across rating grades for rated corporate customers and institutions as well as across risk grades for scored household and small business customers, that is, retail exposures. The average credit quality was roughly sta- ble in both the corporate and retail portfolios in 2025. Exposure-wise, 12% (10%) of corporate customer exposures migrated upwards, while 13% (18%) was downrated. 91% (91%) of performing corporate exposures were rated 4- or higher, with an average rating for the portfolio of 4+. 91% (89%) of the performing retail exposures were scored C- or higher, which indicates a probability of default of 1.9% or lower. The total effect on the credit risk exposure amount (REA) from migration was an increase of approximately 0.9% in 2025. Rating information for loans measured at amortised cost EURm Rating grade1 Average PD2 (%) Gross carrying amount Stage 1 Stage 2 Stage 3 Total Allowances 31 Dec 2025 7 0.00 9,872 51 0 9,923 1 6 0.02 21,075 43 0 21,118 2 5 0.07 40,436 159 1 40,596 13 4 0.29 53,823 1,258 3 55,084 43 3 3.43 7,732 2,253 4 9,989 77 2 15.61 406 1,665 11 2,082 58 1 55.49 1,872 1,065 18 2,955 44 Standardised/Unrated 0.14 3,614 802 267 4,683 53 0 (default) 100.00 88 62 1,497 1,647 668 Total 138,918 7,358 1,801 148,077 959 31 Dec 2024 7 0.00 7,218 11 0 7,229 1 6 0.02 19,157 56 0 19,213 4 5 0.07 37,462 129 0 37,591 21 4 0.29 46,191 1,286 1 47,478 54 3 3.63 6,228 2,715 1 8,944 68 2 14.32 59 1,988 33 2,080 102 1 48.31 1,747 1,205 15 2,967 59 Standardised/Unrated 0.10 7,227 1,166 428 8,821 115 0 (default) 100.00 11 43 1,329 1,383 718 Total 125,300 8,599 1,807 135,706 1,142 ===== SIDA 300 ===== Nordea Annual Report 2025 299 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scoring information for loans measured at amortised cost EURm Scoring grade1 Average PD2 (%) Gross carrying amount Stage 1 Stage 2 Stage 3 Total Allowances 31 Dec 2025 A 0.10 62,970 142 8 63,120 9 B 0.21 36,333 284 9 36,626 9 C 0.61 24,817 636 9 25,462 18 D 1.51 16,212 1,559 55 17,826 38 E 9.48 3,795 2,548 15 6,358 42 F 23.21 855 1,564 16 2,435 36 Standardised/Unrated N.A. 280 11 19 310 3 0 (default) 100.00 249 214 1,203 1,666 260 Total 145,511 6,958 1,334 153,803 415 31 Dec 2024 A 0.11 60,794 177 4 60,975 11 B 0.28 35,988 287 2 36,277 15 C 0.83 18,084 644 8 18,736 20 D 3.58 18,054 1,553 8 19,615 43 E 16.83 3,223 2,956 8 6,187 53 F 30.12 809 1,944 7 2,760 57 Standardised/Unrated N.A. 1,118 34 15 1,167 4 0 (default) 100.00 177 172 1,086 1,435 260 Total 138,247 7,767 1,138 147,152 463 1) The stage classification and calculated provision for each exposure are based on the situation as at the end of October 2025 (October 2024), while the exposure amount and rating grades are based on the situation as at the end of December 2025 (December 2024). Some of the exposures in default according to the rating grade as at the end of December were not in default as at the end of October, which is reflected in the stage classification. 2) Average PD excluding Nordea Finance Equipment AS. Rating information for off-balance sheet items EURm Rating grade Nominal amount Stage 1 Stage 2 Stage 3 Total Provisions 31 Dec 2025 7 10,661 0 0 10,661 0 6 13,260 0 0 13,260 1 5 38,259 20 0 38,279 7 4 23,179 725 0 23,904 13 3 2,878 1,614 1 4,493 19 2 0 723 111 834 20 1 1 496 1 498 2 Standardised/Unrated 1,056 429 10 1,495 9 0 (default) 0 0 363 363 14 Total 89,294 4,007 486 93,787 85 31 Dec 2024 7 9,203 0 0 9,203 2 6 11,301 301 0 11,602 5 5 37,990 148 0 38,138 16 4 21,160 368 0 21,528 16 3 3,521 1,319 4 4,844 20 2 44 808 0 852 23 1 1 503 0 504 3 Standardised/Unrated 1,113 351 4 1,468 14 0 (default) 6 2 323 331 13 Total 84,339 3,800 331 88,470 112 ===== SIDA 301 ===== Nordea Annual Report 2025 300 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Scoring information for off-balance sheet items EURm Scoring grade Nominal amount Stage 1 Stage 2 Stage 3 Total Provisions 31 Dec 2025 A 6,415 257 0 6,672 1 B 8,087 36 0 8,123 3 C 2,676 204 0 2,880 5 D 1,329 229 1 1,559 10 E 657 560 2 1,219 30 F 8 83 1 92 5 Standardised/Unrated 172 3 0 175 0 0 (default) 0 0 48 48 19 Total 19,344 1,372 52 20,768 72 31 Dec 2024 A 7,547 24 0 7,571 1 B 6,619 33 0 6,652 5 C 1,926 135 0 2,061 5 D 1,034 181 0 1,215 7 E 17 669 0 686 38 F 3 104 0 107 5 Standardised/Unrated 20 447 0 467 1 0 (default) 2 6 48 56 19 Total 17,168 1,599 48 18,815 81 Rating distribution IRB corporate customers 1 0 5 10 15 1-11+2-22+3-33+4-44+5-55+6-66+ % 2025 2024 1) Defaulted loans are not included in the rating distribution. Risk grade distribution IRB retail customers 1 0 5 10 15 20 25 30 F-FF+E-EE+D-DD+C-CC+B-BB+A-AA+ % 2025 2024 1) Defaulted loans are not included in the risk grade distribution. Scoring grades have been converted to risk grades. ===== SIDA 302 ===== Nordea Annual Report 2025 301 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. 3. Counterparty credit risk Counterparty credit risk is the risk that Nordea’s counter- party in a derivative contract defaults prior to maturity of the contract and that Nordea at that time has a claim on the counterparty. In addition, counterparty credit risk also exists in repurchasing agreements and other securities financing contracts. Nordea trades derivative contracts based on customer demand and the banks’ balance sheet risks. Furthermore, Nordea may, within clearly defined risk limits, use deriva- tives to hedge or take open positions in the bank’s opera- tions. Derivatives affect counterparty credit risk, market risk as well as operational and liquidity risk. Counterparty credit risk, including that towards central counterparties (CCPs), is managed subject to credit limits like other credit exposures and is treated accordingly. To assess the counterparty credit risk towards CCPs, clearing limits are based on the potential size of the clearing related exposure on each CCP, taking regulatory require- ments and the market development into account. Nordea mostly clears OTC trades as a clearing member of qualify- ing central clearing parties (QCCP) that meet specific reg- ulatory and operational standards set by financial authori- ties, but also through clearing brokers if so required. For information about financial instruments subject to master netting agreements, see Note G3.5 “Offsetting”. 4. Market risk Market risk is the risk of loss on Nordea’s positions in either the trading book or the non-trading book as a result of changes in market rates and parameters that affect market values or net interest income flows. Market risk exists irrespective of the accounting treatment of the positions. The market risk appetite for the Group is expressed through risk appetite statements. In approving the risk appetite statements, the Group Board takes note of the Risk Appetite Limits and Triggers which is delegated by Group Board to the Board Risk Committee. The statements are defined for trading and banking books. The second line of defence ensures that the risk appe- tite is appropriately translated by the Risk Committee into specific risk appetite limits for the business areas and Group Treasury. As part of the overall Risk Appetite Framework (RAF), holistic and bespoke stress tests are used to measure the market risk appetite and calibrate limits to monitor and control the full set of material market risk factors to which Nordea is exposed. 4.1 Traded market risk Traded market risk mainly arises from customer-driven trading activities and related hedges in Nordea Markets, which is part of Large Corporates & Institutions. Nordea Markets takes on market risks as part of its business model when offering corporate and institutional customers a range of fixed income, equity, foreign exchange, commodity and structured products. The mar- ket risks to which Nordea Markets is exposed include interest rate risk, credit spread risk, equity risk, foreign exchange risk, commodity risk and inflation risk. Furthermore, Nordea is a major mortgage lender in the Nordic countries and a major market maker in Nordic cor- porate and government bonds. Holding inventory is neces- sary to be able to provide secondary market liquidity. As a result, Nordea’s business model gives rise to a concentra- tion of Nordic mortgage and corporate bonds as well as local market currencies. 4.2 Non-traded market risk The non-traded market risks that Nordea is exposed to are interest rate risk, customer behavioural risk, credit spread risk, foreign exchange risk (both structural and non-structural) and equity risk. Non-traded market risk arises from the core banking business of Nordea, related hedges and regulatory or other external requirements (e.g. the liquid asset buffer). Group Treasury is responsible for the risk management of all non-traded market risk exposures on the Group’s balance sheet. To ensure a clear division of responsibilities within Group Treasury the banking book risk management is divided across several frameworks – each with a clear risk mandate and specific limits and controls. Interest rate risk in the banking book (IRRBB) is the cur- rent or prospective risk to Nordea’s capital and/or income arising from adverse movements in interest rates and cus- tomer behaviour. Business areas transfer their banking book risk exposures to Group Treasury through an internal funds transfer pricing framework. Market risks are man- aged centrally and include gap risk, spread risks, basis risks, credit spread risk, behavioural risk and non-linear risks. The effectiveness of hedging risk exposures from core banking activities, e.g. loans and deposits, may be adversely impacted by the discretion held by customers in respect of their contractual obligations with Nordea. Liquid assets are managed in accordance with the liquidity buffer and pledge/collateral frameworks. Most of the directional interest rate risk arising from bond holdings is hedged primarily using maturity-matched Interest rate payer swaps and to a smaller degree overnight indexed payer swaps. Forward rate agreements and listed futures contracts can also be used to hedge credit spread and interest rate fixing risks. 4.3 Measurement of market risk Nordea uses several quantitative risk measurement meth- ods for traded market risk: Value-at-risk (VaR), stress test- ing, sensitivity analysis, parametric methods and Monte Carlo simulation. VaR is based on historical scenarios and is the primary market risk measurement, complemented by stress test- ing. Nordea calculates VaR using historical simulation. The current portfolio is revalued based on historical daily changes in market prices, rates and other market risk fac- tors observed during the last 500 business days and trans- lated into changes in current market risk factors. Nordea uses absolute, relative and mixed translation methods for different risk categories. The revaluation of the current portfolio is performed for each position using either a lin- ear approximation method or a full revaluation method, depending on the nature of the position. Parametric methods are used to capture equity event risk, including the impact of defaults on equity-related positions (these risks are part of the specific equity risk). Monte Carlo simulation is used in the incremental risk measure model and the comprehensive risk measure model to capture default and migration risks. The VaR, stressed VaR, equity event risk, incremental risk measure and comprehensive risk measure models are approved by Nordea’s regulator, the ECB, for use in calcu- lating market risk own funds requirements under the internal model approach (IMA). The same models, with the same calibration and settings as used for regulatory capital requirements, are used for internal risk manage- ment purposes. The standardised approach is applied to risk exposure which is not covered by the IMA. It is used to calculate the market risk exposures for commodity-related products, the specific risk for mortgage and government bonds, com- mercial paper, credit/rate hybrids and credit spread options. Furthermore, the standardised approach is used to cal- culate equity risk related to structured equity and Tier 1 and Tier 2 bonds. Non-Traded Market risk is measured, monitored and managed using three key risk metrics: • Economic Value Risk (IRRBB and CSRBB). • Net interest income risk (IRRBB and CSRBB). • Fair Value Stress Loss. The three different risk metrics are used to assess differing aspects of the manifestation of interest rate risk. These are described in more detail below. Economic Value (EV) of equity stress tests considers the change in the EV of banking book assets, liabilities and interest-bearing derivative exposures resulting from inter- est rate movements, independent of accounting classifica- tion and ignoring credit spreads and commercial margins. The model assumes a run-off balance sheet and includes behavioural modelling for non-maturing deposits and prepayments. The net interest income (NII) risk metric measures the change in net interest income relative to a baseline sce- nario, resulting in a NII risk value over a one-year horizon. The model uses a constant balance sheet assumption, implied forward rates and behavioural modelling for non-maturing deposits and prepayments. The Fair Value Stress Loss (FVSL) risk measure consid- ers the potential revaluation risk relating to positions held under fair value accounting classifications. EV and Earnings sensitivities are measured using parallel shocks, whereas FVSL sensitivities are measured using internally defined Risk Appetite Framework (RAF) scenar- ios. The exposure limit is measured against the worst events and designed to test specific exposures that are, or may be, ===== SIDA 303 ===== Nordea Annual Report 2025 302 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. held under the approved mandate. The scenarios are aligned across the risk types EV, NII and FVSL. The FVSL RAF scenarios are applied to the banking book and the trading book portfolios, and to the Defined Pension Schemes fair value, and the Board risk appetite limit are set on each of these metrics. The FVSL metrics are monitored daily. A range of EV risk scenarios are estimated daily for management information purposes, but fully calculated and monitored monthly against risk appetite limits. The NII and Earnings risk metrics are monitored monthly. The measurement of Interest Rate Risk in the Banking Book (IRRBB) is dependent on key assumptions applied in the models. The most material assumptions relate to the modelling of embedded behavioural options in both assets and liabilities. The behavioural option held by Nordea’s lending customers to execute early loan prepayments is estimated using prepayment models. On the liability side, Nordea has a choice to change deposit rates, and custom- ers have a choice to withdraw non-maturing deposits on any given day. Both embedded options are modelled using non-maturing deposit models. Both assumptions are calcu- lated based on the historical average by core asset and lia- bility class features. Assets and liabilities are grouped according to key metrics, including product type, geogra- phy and customer segment. Assumptions are based on his- torically observed values. Regular back-testing and model monitoring are performed for both prepayment models and non-maturing deposit models to ensure that the mod- els remain accurate. The Pillar 2 IRRBB capital is based on Earnings and EV risk, with net profit and dividends affecting the resulting capital change. Earnings risk captures the impact of inter- est rate and credit spread changes on future NII and gains, and the resulting implications for internal capital buffer levels. EV risk captures the adverse impact under Nordea’s Risk Appetite Framework or the regulatory Basel (com- bined with CS+50bp) scenarios when combined IRRBB EV and CSRBB EV results indicate a loss to avoid offsetting Earnings losses with EV gains that are not visible in the bank’s financial reports. Nordea is exposed to structural FX risk, defined as the mismatch between the currency composition of its Common Equity Tier 1 (CET1) capital and risk exposure amounts. The CET1 capital is largely denominated in euro with the only significant non-euro equity amounts stem- ming from mortgage subsidiaries. Therefore, changes in FX rates can negatively impact Nordea’s CET1 ratio. 4.4 Market risk analysis The market risk in Nordea’s trading book is presented in the table below. The average market risk measured by VaR was EUR 35.2m in 2025 (the average in 2024 was EUR 42.1m) and primarily driven by interest rate risk. Average stressed VaR was EUR 47.8m in 2025 (the average in 2024 was EUR 49.6m). The peak in VaR as well as stressed VaR was reached in the first quarter. VaR and stressed VaR are pri- marily driven by market risk in the Northern European and Nordic countries. At the end of 2025 the incremental risk charge (IRC) was higher than at the end of 2024. The lowest exposure occurred during the first quarter of 2025 and the highest occurred during the second quarter of 2025. The average IRC significantly increased compared with the previous year. At the end of 2025 the comprehensive risk charge (CRC) was significantly higher than at the end of 2024. Both the lowest and the highest exposure occurred during the first quarter of 2025. The average CRC for 2025 increased compared with 2024. At the end of the year the worst loss on the fair value part of the banking book portfolio according to the internal risk appetite scenarios for FV stress loss was driven by an inter- nal scenario of widening Scandinavian mortgages and gov- ernment spreads and falling equity prices, implying a loss of EUR 590m (EUR 546m on the previous year) on the banking book FV positions. The banking book is usually long mort- gages and government bonds in the liquidity buffer and long equity risk on the long-term illiquid expoures, which explains the loss in this worst-case scenario. The trading and banking book market risks remained within Nordea’s risk appetite throughout 2025. Market risk figures for the trading book 1 31 Dec high low avg EURm 2025 2024 2025 2024 2025 2024 2025 2024 Total VaR 43 42 59 61 16 29 35 42 Interest rate risk 44 39 57 60 16 29 35 41 Equity risk 2 3 9 11 1 2 4 3 Credit spread risk 5 5 8 13 2 2 4 4 Foreign exchange risk 4 1 6 3 1 1 3 2 Inflation risk 3 3 4 4 1 3 2 3 Diversification effect 23 19 47 36 13 13 27 21 Total stressed VaR 57 55 68 70 32 38 48 50 Incremental risk charge 24 10 35 24 12 10 20 14 Comprehensive risk charge 21 7 89 16 6 3 19 8 1) Equity event risk, corresponding to EUR 0.4m (0.5m) at the end of 2025. 4.5 Net interest income risk and Economic Value risk The market risk in Nordea’s banking book is presented in more detail in the Capital and Risk Management Report 2025. The risk measures presented show the change in the Economic Value of the banking book positions due to interest rate changes, assessed under the six regulatory interest rate shock scenarios, and the net interest income in the banking book over a 12-month period is assessed under the two parallel shifts, as defined by the European Banking Authority. At the end of the year the most adverse Economic Value stress loss was EUR 1,631m in the “paral- lel shock down“ scenario, and the most adverse one-year loss in net interest income was EUR 1,217m also in the “parallel shock down“ scenario. For most currencies, the “parallel shock down“ scenario includes a 200bp down- ward shift, but it can vary from -100 to -400bp depending on the currency. For more details on the results of different regulatory interest rate shock scenarios, see the Nordea Group Capital and Risk Management Report 2025. 4.6 Other market risks/pension risk Pension risks (including market and longevity risks) arise from Nordea-sponsored defined benefit pension schemes for past and current employees. The ability of the pension schemes to meet the projected pension payments is main- tained through investments and ongoing scheme contributions. Pension risks can manifest through increases in the value of liabilities or through falls in the values of assets. These risks are regularly reported and monitored and include market risk sub-components such as interest rate, inflation, credit spread, real estate and equity risk. To mini- mise the risks to Nordea, limits are imposed on potential losses under severe but plausible stress events as well as on capital drawdowns. In addition, regular reviews of the schemes’ strategic asset allocation are undertaken to ensure that the investment approach reflects Nordea’s risk appetite. See Note G8.2 ”Pensions” for more information. ===== SIDA 304 ===== Nordea Annual Report 2025 303 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. 5. Operational risk At Nordea operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events and includes legal risk. Operational risk is inherent in all Nordea’s businesses and operations. Managers throughout Nordea are accountable for the operational risks related to their man- date and for managing these risks within the risk appetite in accordance with the operational risk management framework. Operational risk management and oversight functions within Group Risk constitute the second line of defence for overall operational risk and are responsible for developing and maintaining the overall operational risk management framework as well as for monitoring and controlling the operational risk management of the first line of defence. The independent risk control functions are responsible for monitoring and overseeing that operational risks are appropriately identified, assessed and mitigated and for following up on risk exposures towards risk appetite and assessing the adequacy and effectiveness of the opera- tional risk management framework and the implementa- tion of the framework. The focus areas of the monitoring and oversight work are decided during an annual planning process that includes business areas and Group functions as well as key risk areas and operational risk processes. Group Risk is responsible for preparing and submitting regular risk reports on all material risk exposures, including risk appe- tite utilisation and incidents, to the Chief Risk Officer, who reports to the Chief Executive Officer in the Group Leadership Team, the Group Board and the relevant committees. Nordea is closely monitoring the geopolitical develop- ments, such as in Ukraine and the Middle East. Throughout the year Nordea has witnessed elevated threat levels for cyber security and also for physical secu- rity across the Nordics. Nordea has taken actions to address the increased risk. The risk appetite statement for operational risk sets the tone for effective risk management. Risk appetite is meas- ured using risk limits for (a) numbers and types of opera- tional risks and b) total loss amounts arising from opera- tional and compliance risk incidents. 5.1 Management of operational risk Management of operational risk includes all activities aimed at identifying, assessing and measuring, responding to and mitigating, controlling and monitoring as well as reporting on risks. Risk management is supported by vari- ous processes and instructions including Risk and Control Self-Assessment, Change Risk Management and Approval, Issue Management, Incident Management, Scenario Analysis, Business Continuity and Crisis Management, Information Security Management, Technology and Data Risk Management, Third Party Risk Management, insur- ance-related risk diversification and Significant Operating Processes. Some of these processes are described below and addi- tional details on processes for managing and controlling operational risk are included in the “Operational and Compliance Risk” section of the Capital and Risk Management Report 2025 published in accordance with the Capital Requirements Regulation. Risk and Control Self-Assessment The Risk and Control Self-Assessment process ensures an overview and assessment of operational and compliance risks across Nordea. The process improves risk awareness and enables the effective assessment, control and mitiga- tion of identified risks. Furthermore, the Risk and Control Self-Assessment process and its results provide the basis and input for risk reporting at Nordea. Change Risk Management and Approval The purpose of the Change Risk Management and Approval process is to ensure that risks arising from a change are identified, assessed and managed before a change is approved and implemented. This is to ensure that no unexpected incidents occur when going live with the change. The Change Risk Management and Approval process must be applied to all relevant types of change and devel- opment initiatives, including but not limited to, involving changes to new or changed processes, organisational changes, information and communication technology changes, new outsourcing arrangements and exceptional transactions. Issue Management Issues are defined as deficiencies in the control environ- ment, i.e. defects and/or quality matters within the internal control environment for managing risk. When such defi- ciencies are discovered, they must be reported as issues. The Issue Management Framework covers multiple pro- cesses across all three lines of defence. Incident Management The Incident Management Framework ensures appropri- ate handling and reporting of detected incidents to mini- mise the impact on Nordea and its customers, prevent reoccurrence and reduce the impact of future incidents. When incidents are detected, they are immediately assessed to determine their severity. Depending on the nature of the incident and the severity assessed, different requirements on stakeholder involvement and external reporting apply, including incident notification to relevant authorities. Scenario Analysis Scenario Analysis is performed in order to identify and assess operational and compliance risks with high finan- cial or non-financial impacts and low probability of mate- rialisation, so-called “tail risks”. Analysis of tail risks con- tributes to a better understanding, awareness and man- agement of forward-looking risk and remediation of possible identified control gaps/deficiencies. Business Continuity and Crisis Management The Business Continuity and Crisis Management frame- work at Nordea ensures the capability to handle extraordi- nary events and crises and assures the continued delivery and recovery of prioritised products, services and pro- cesses to predefined acceptable levels. Extraordinary events and crisis situations are timely and appropriately escalated and responded to through pre-established structures. The capabilities are validated by testing and exercising the organisation and established plans to ensure to protect its resources (e.g. people, premises, tech- nology and information), supply chain, interested parties and reputation, before a disruptive incident occurs. This includes ensuring that roles and responsibilities are clear, known and communicated to all involved. Third Party Risk Management The objective of Third Party Risk Management is to ensure that risks related to third parties and third party activities, including but not limited to outsourcing, are appropriately identified, assessed and managed before entering into, during as well as when exiting a third party arrangement. Third Party Risk Management ensures that risks associ- ated with third parties and third party activities are kept within risk appetite and risk limits. Information and Communication Technology Risk Management The objective of Information and Communication Technology Risk Management is to ensure that information and communication technology and data management risks are appropriately identified, assessed and managed. Nordea maintains an Information Security Management System for implementation of the principles and require- ments for information security, with the overall objective to preserve the confidentiality, integrity and availability of Nordea’s information and information entrusted to Nordea, by applying a risk-based methodology. Cyber security Introducing new technologies, exploring new ways of doing business and connecting with customers widen banks’ attack surface. At the same time, entities that pose cyber threats are becoming more organised, resourceful and experienced. Banks must also deal with the asymmetry of having to protect all assets while entities engaged in cyber threats merely need to find one weak spot. Combined, these factors pose an unprecedented risk to the banking industry. In the normal course of business, Nordea focuses not only on maintaining effective basic information security controls but also on enhancing its cyber defence with new tools and functions for security, detection and response. Nordea develops innovative security practices to meet new business demands, such as robust mobile banking applica- tions and proactive customer support for fraud detection and prevention. Nordea develops its information security practice based on recognised industry best practices such as the ISO 27000 series standards, the Information Security Forum (ISF) standards and the frameworks provided by the ===== SIDA 305 ===== Nordea Annual Report 2025 304 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. National Institute of Standards and Technology (NIST) in the US. Furthermore, Nordea needs to comply with financial industry legislation, for example European Banking Authority guidelines and other European legislation intro- ducing specific information security requirements. In addition, Nordea has teamed up with partners from governmental organisations, law enforcement agencies, intelligence networks, peers in the industry and others to share intelligence and experience. Financial Reporting Risk Management The Financial Reporting Risk Management Framework determines overall how to identify and report financial reporting risks across the Group and is designed to provide reasonable assurance about the reliability of financial reporting for external purposes in accordance with gener- ally accepted accounting principles, applicable laws and regulations as well as other requirements for listed and reg- ulated companies. 5.2 Model risk Model risk is the potential for adverse consequences from model errors or the inappropriate use of modelled outputs to inform business decisions. Adverse consequences can include financial loss, poor or sub-optimal business and strategic decision-making, deterioration in Nordea’s pru- dential position, non-compliance with applicable laws and/or regulations or damage to Nordea’s reputation. Model risk occurs primarily for two reasons: • Fundamental model errors which may produce inaccu- rate outputs when viewed against the model’s design objective and/or business uses. • Incorrect or inappropriate use of model outputs. Models are used in both financial and non-financial con- texts, encompassing a diverse range of applications such as customer selection, product pricing, transaction moni- toring for financial crime, creditworthiness assessment and financial reporting. Evaluating model performance is an ongoing process involving continuous monitoring as well as comprehensive reviews of model structure and data integrity. Model Risk Management Model risk is managed through a set of policies, proce- dures and guidelines aligned with Nordea’s general risk management framework following the three lines of defence model where: • the first line of defence consists of model developers, model owners and model users • the second line of defence assesses whether model development and use controls meet policy standards as and evaluates the adequacy of model risk procedures • the third life defence is the internal audit function. Model risk is overseen through a risk appetite statement for model risk which is implemented through risk appetite metrics. Models are developed using a variety of techniques, including AI and machine learning models, where rapid technological advancement – such as generative AI – is transforming modelling approaches. Nordea has estab- lished a new governance framework for AI models and is ensuring compliance with the EU Artificial Intelligence Act in deploying these models. 6. Compliance risk Nordea defines compliance risk as the risk of failure to comply with applicable regulations and related internal rules. Management of compliance risk is governed by Nordea’s compliance risk appetite statement as well as its compliance policy which also sets out the framework for the management of compliance risks. Employees through- out Nordea are accountable for the compliance risks related to their mandate and for managing these risks in accordance with the established frameworks. Group Compliance is the independent second line of defence function responsible for developing and maintaining the compliance policy and for guiding the business in its implementation of and adherence to the policy. Compliance activities are presented in the form of an annual compliance plan to the Group CEO of Nordea and the Board Risk Committee. The annual compliance plan provides an overview of Nordea’s planned compliance activities, combining Group Compliance’s overall approach to key risk areas. The plan consists of detailed plans for the business areas, the Group functions, the con- solidated Group subsidiaries, the branches and for each risk area. Group Compliance is responsible for the regular reporting on its plans to the Group Board, the CEO in the Group Leadership Team (the GLT), branch management and the relevant committees, at least quarterly. The uncertainty in the geopolitical and macroeconomic environment continued in 2025 with conflicts escalating in the Middle East and the invasion of Ukraine continuing for a fourth year. Despite the turbulence in the macroeco- nomic environment, no visible adverse impact on the financial health of household customers has been observed. The impact on the financial situation of Nordea’s corporate customers has been limited, and the situation is in general stable with a positive outlook. In light of the continuously challenging external environment for some of its customers, Nordea continues to focus on ensuring that its processes adequately assess the suitability and affordability of the products for all customer segments. In 2025 the interest and customer demand for ESG-related products remained stable with cautious optimism indi- cated, whilst market practices also developed further. Nordea actively supports its advisory customers in estab- lishing investment strategies that are also aligned to their sustainability preferences. Nordea is subject to various legal regimes and require- ments, including but not limited to those of the Nordic countries, the European Union and the United States. The supervisory and governmental authorities administering and enforcing these regimes make regular enquiries and conduct investigations with regard to Nordea’s compli- ance. Areas subject to investigation may include invest- ment advice, anti-money laundering (AML), trade regula- tion and sanctions adherence, tax rules, competition law, consumer protection, governance, risk management and control. The outcome and timing of these enquiries and investigations are unclear and pending. Accordingly, it cannot be ruled out that these enquiries and investigations could lead to criticism against the bank, reputation loss, fines, sanctions, disputes and/or litigation. 6.1 Code of Conduct The Code of Conduct (the ”Code”) defines high-level busi- ness principles that guide the business of Nordea in how Nordea treats customers and how employees are expected to conduct themselves. The principles underpin Nordea’s culture and set the parameters for conduct in areas such as care for the environment, human rights, labour rights, the right to privacy, fair competition, anti-bribery and anti-corruption. The Code is reviewed annually and was last updated in July 2025. Compliance with the Code is reg- ularly monitored by the functions responsible for each sec- tion of the Code and by Group Compliance. Annual report- ing to the relevant Group committees, the Group CEO and the Group Board informs how well Nordea is adhering to the Code and provides an insight into the Group’s risk cul- ture. All employees, including part-time employees and consultants, are required to undertake annual Code of Conduct training as part of their Licence to Work to ensure proper awareness and knowledge of the ethical principles. The 2025 training included more detailed focus e.g. on external engagements, internal fraud and how to raise a concern. 98.1% of all employees (excluding those on long- term leave) completed the training. 6.2 Raise your Concern Nordea’s whistleblowing function Raise Your Concern (RYC) ensures that all stakeholders, including customers, partners, affected communities as well as employees, have the right to speak up and always feel safe in doing so if they have concerns about suspected misconduct such as breaches of human rights, or irregularities such as fraudulent, inappro- priate, dishonest, illegal or negligent activity or behaviour in operations, products or services. This includes any action that constitutes a violation of laws or regulations or of Nordea’s internal policies, instructions or guidelines. Reporting can be made orally or in writing and Nordea ensures that all reporting is treated with the strictest confi- dentiality. Reports can be made in all countries in which Nordea operates. Furthermore, it is also possible to report anonymously via the electronic reporting channel WhistleB. This platform is managed by an external party, is entirely separate from Nordea’s IT systems and does not track IP addresses or other data that could identify the sender of a message. Cases reported through RYC form part of the monitoring of compliance with the Code of Conduct. A sum- mary of key trends and statistics on cases are also reported on a no names basis to the Chief Compliance Officer, the ===== SIDA 306 ===== Nordea Annual Report 2025 305 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. Chief People Officer and the Chief Risk Officer in addition to being included in management reports and reports to the Board. Furthermore, the RYC process and investigations are subject to regular quality controls with defined escalation procedures to report any process deviations. 6.3 Financial crime prevention Nordea takes its responsibility to society and its customers seriously and has over the years built strong defences to prevent its products, services and systems from being used for unlawful purposes. Nordea handles and monitors on an annual basis several billion transactions from a wide customer base. Nordea continued to strengthen its financial crime defences in 2024 within areas such as customer due diligence, transaction monitoring and economic sanctions. Nordea’s close cooper- ation with regulators continued during 2024 with ongoing engagement with all four Nordic regulators covering vari- ous aspects of Nordea’s financial crime prevention work. Following the invasion of Ukraine by Russian forces in February 2022, a number of countries and international bodies have introduced sanctions. Nordea complies with all applicable EU, US, UN and UK sanctions programmes, including Russian sanctions programmes. The Russian sanctions currently include freezing of assets, deposit restrictions, restrictions on economic relations with certain regions in Ukraine, restrictions focusing on the energy and finance sectors, import and export restrictions and over- flight bans. As a consequence of the current sanctions regime and the increasing breadth and complexity of sanc- tions in force, in 2022 Nordea decided not to conduct any business activities that relate to the regions of Donetsk, Luhansk, Zaporizhzhia and Kherson. A similar policy was already in place with respect to Crimea and Sevastopol. Furthermore, due to the sanctions regime and the restric- tions in force, in April 2022 Nordea stopped the processing of payments to and from Russia and Belarus (potentially processed in exceptional circumstances if confirmed that no regulatory/sanctions breach exists and with relevant approvals. In addition to the previous policy decision, fur- ther internal restrictions on Russia-related customer rela- tionships, among others, were introduced in July 2024. As sanctions measures continue to curb the ability to support and finance the war in the Ukraine, sanctioned parties and facilitators are seeking alternative ways to cir- cumvent sanctions. In addition to traditional techniques, such as wire stripping, the regulators highlight an increased use of cryptocurrencies and third countries as common cir- cumvention methods. In particular the US and EU have identified certain countries that are being used to facilitate the circumvention of sanctions measures imposed in rela- tion to Russia. While Nordea does not apply a blanket pro- hibition on activities concerning the countries it considers to pose a high cirumvention and evasion risk, Nordea remains vigilant to the risk of the bank’s products and services being used to evade sanctions and continues to enhance its con- trols to mitigate the risks. During 2025 the potential for both international and domestic terrorist attacks within the Nordics remained high driven by the escalating geopolitical conflicts stem- ming from the situation in Gaza. This is in parallel with the continued concerns of lone-actor terrorist incidents evolv- ing into actions conducted by increasingly younger people who do not necessarily have any political affiliations. Nordea continues to strengthen its controls to remain responsive to increased inherent risks of terrorist financing. In June 2015 the Danish Financial Supervisory Authority investigated how Nordea Bank Danmark A/S had followed the regulations regarding AML. The outcome resulted in criti- cism and, in accordance with Danish administrative practice, the matter was handed over to the police for further han- dling and possible sanctions. On 5 July 2024 the Danish National Special Crime Unit filed a formal indictment against Nordea in the matter. As previously stated, Nordea has expected to be fined in Denmark for weak AML processes and procedures in the past and has made a provision for ongoing AML-related matters. There is a risk that, in the event fines are issued by authori- ties or by final court decisions, the related costs could be higher (or potentially lower) than the current provision, and this could also impact Nordea’s financial performance. Nordea believes that the current provision is adequate to cover these matters. Since 2015 Nordea has made significant investments to address the deficiencies highlighted by the investigations. 7. Life insurance risk and market risks in the Life & Pension operations For infomation on risk in the Life & Pension operations, see Note G4 “Insurance contract liabilities“. 8. Liquidity risk During 2025 Nordea continued to benefit from its prudent liquidity risk management in terms of maintaining a diver- sified and strong funding base and a diversified liquidity buffer. Nordea maintained a strong liquidity position throughout the year despite the continued volatility in global markets driven by geopolitical and macroeconomic uncertainty. Nordea issued approximately EUR 21.5bn (EUR 19.4bn) in long-term funding (excluding Long CDs, Danish covered bonds and capital instruments), of which approximately EUR 12.7bn (EUR 14.0bn) was issued in the form of cov- ered bonds and EUR 8.8bn (EUR 5.4bn) as senior debt. Throughout 2025 Nordea remained compliant with the liquidity coverage ratio (LCR) requirement in all currencies on a combined basis as well as the net stable funding ratio (NFSR). 8.1 Liquidity risk definition and identification Liquidity risk is the risk that Nordea can only meet its liquidity commitments at an unsustainably high price or, ultimately, is unable to meet its obligations as they come due. Nordea is exposed to liquidity risk in its lending, investments, funding, off-balance sheet exposures or other activities which could result in a negative cash flow mismatch and an inability to liquidate assets or obtain adequate funding. Cash flow mismatches can occur at the end of a day or intraday. 8.2 Management principles and control Liquidity risk at Nordea is managed across three lines of defence: • The first line of defence consists of Group Treasury and the business areas. Group Treasury is responsible for the day-to-day management of the Group’s liquidity posi- tions, liquidity buffers, external and internal funding, including the mobilisation of cash across the Group, and funds transfer pricing. • The second line of defence, Group Risk, is responsible for providing independent oversight of and challenge to the first line of defence. • The third line of defence includes Group Internal Audit, which is responsible for providing independent over- sight of the first and second lines of defence. The Board of Directors defines the liquidity risk appetite by setting limits for the liquidity risk metrics applied. The risk appetite is anchored to liquidity stress testing results over specified time horizons as well as regulatory requirements and has implications for the nature and scope of activities undertaken by Nordea. The risk appetite framework and supporting liquidity risk limits and thresholds will ensure prudent hedging activities and mitigate the overall liquidity risk of Nordea. A funds transfer pricing (FTP) framework is in place which takes into account that liquidity is a scarce and costly resource. By quantifying and allocating liquidity and fund- ing costs and benefits to the respective business areas, behaviours and strategic decisions are appropriately incentivised. 8.3 Funding and liquidity strategy Nordea’s funding and liquidity strategy is based on policy statements resulting in various liquidity risk measures, limits and organisational procedures. The objective of liquidity risk management is to ensure that Nordea can always meet its cash flow obligations, including on an intraday basis, across market cycles and dur- ing periods of stress. Nordea strives to diversify its sources of funding and seeks to establish and maintain relationships with investors in order to ensure market access. A broad and diversified funding structure is reflected by the strong pres- ence in the Group’s four domestic markets in the form of a strong and stable retail customer base and a variety of fund- ing programmes. The funding consists of both short-term (US and European commercial paper as well as certificates of deposit) and long-term (covered bonds, European and Global Medium-Term Notes) programmes and covers a range of currencies. Trust is fundamental in the funding market. Therefore, Nordea periodically publishes information on the Group’s liquidity situation. Furthermore, Nordea regularly performs ===== SIDA 307 ===== Nordea Annual Report 2025 306 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other G11 Risk and liquidity management, cont. stress testing of its liquidity risk position to capture relevant risk drivers and has put contingency plans in place for liquid- ity crisis management. 8.4 Liquidity risk measurement To ensure funding at all times or in situations where normal funding sources would not suffice, Nordea holds a liquidity buffer. The liquidity buffer consists of central bank eligible, high credit quality and liquid securities as well as central bank cash that can be readily sold or used as collateral in funding operations. Liquidity risk management focuses on both short-term liquidity risk and long-term structural liquidity risk. Liquidity risk is limited by the Board of Directors via the liquidity stress coverage ratio and liquidity coverage ratio (LCR) stip- ulating that Nordea must maintain overall liquidity levels in support of its business strategy and to maintain the confi- dence of markets both in normal and dislocated markets. Similarly, structural liquidity risk is limited by the Board of Directors via the net stable funding ratio (NSFR) stipulating that Nordea should target an appropriate structural compo- sition of its assets, liabilities and off-balance sheet commit- ments in support of its business strategy and regulatory requirements. The internal stress metric Liquidity Stress Coverage measures peak cumulative stressed outflows experienced over the first 90 days of a combined stress event, whereby Nordea is subject to market-wide stress similar to that experienced by many banks in 2007–08 as well as idiosyncratic stress corresponding to a three-notch credit rating downgrade. This metric, together with the reg- ulatory LCR and NFSR, forms the basis for Nordea’s liquidity risk appetite, which is reviewed and approved by the Board at least annually. Short-term funding risk is measured via the LCR and internal stress test metrics. The LCR is measured and limited for major currencies and as a total figure for all currencies combined. Nordea’s structural liquidity risk is measured by many metrics of which the NSFR is the main metric. The NSFR is complemented with the internally defined metrics. Furthermore, the loan to deposit ratio is closely monitored together with the wholesale funding refinancing profile and rating agency metrics. 8.5 Liquidity risk analysis Nordea continues to have a strong and prudent liquidity risk profile with a strong funding base. At the end of 2025 the total volume utilised under CD and CP programmes was EUR 48.8bn (EUR 39.7bn) with an average maturity of 0.4 (0.3) year. The total volume under long-term programmes was EUR 156.3bn (EUR 156.5bn) with an average maturity of 5.7 (5.8) years. Nordea’s funding sources are presented in the table below. The liquidity risk position remained strong throughout 2025. Nordea’s liquidity buffer ranged between EUR 102.8bn and EUR 134.6bn throughout 2025 (EUR 98.0bn and EUR 129.2bn) with an average liquidity buffer of EUR 118.5bn (EUR 111.7bn). The combined LCR for the Nordea Group was 171% at the end of 2025 (157%) with an annual average of 154% (153%). At the end of 2025 the LCR in EUR was 262% (137%) and in USD 210% (219%) with annual averages of 182% (193%) and 174% (175%), respectively. At the end of 2025 Nordea’s NSFR was 123.7% (124.0%). Funding sources, 31 December 2025 Liability type Interest rate base Average maturity (years) EURm Deposits by credit institutions Shorter than 3 months Euribor etc. 0.0 32,024 Longer than 3 months Euribor etc. 0.5 2,107 Deposits and borrowings from the public Deposits payable on demand Administrative 0.0 174,022 Other deposits Euribor etc. 0.1 68,852 Debt securities in issue Certificates of deposit Euribor etc. 0.4 38,220 Commercial paper Euribor etc. 0.3 10,591 Mortgage covered bond loans Fixed rate, market-based 6.5 119,299 Other bond loans Fixed rate, market-based 3.3 28,616 Fair value changes of hedged items -450 Derivatives 18,078 Other non-interest-bearing items 88,665 Subordinated debt Tier 2 subordinated bond loans Fixed rate, market-based 4.2 4,613 Additional Tier 1 subordinated bond loans (undated) Fixed rate, market-based 4,367 Fair value changes of hedged items -170 Equity 32,419 Total 621,253 Insurance contract liabilities 33,097 Total, including life insurance operations 654,350 Net stable funding ratio EURbn 31 Dec 2025 31 Dec 2024 Available stable funding 297.4 283.3 Required stable funding 240.4 228.5 Net stable funding 57.0 54.8 Net stable funding ratio1 123.7% 124.0% 1) According to CRR2 regulation. ===== SIDA 308 ===== Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other 307Nordea Annual Report 2025 TABLE OF CONTENTS Financial statements Parent company Financial statements Income statement ..........................................................................................308 Balance sheet ................................................................................................... 309 Cash flow statement .....................................................................................310 Notes to the financial statements P1 A ccounting policies .............................................................................311 P2 Fi nancial performance and returns ...........................................311 P2.1 B usiness area and geographical information .........311 P2.2 N et interest income ..................................................................313 P2.3 N et fee and commission income .....................................313 P2.4 T otal net result from items at fair value .....................314 P2.5 In come from equity investments ....................................314 P2.6 O ther operating income ........................................................315 P2.7 O ther expenses ...........................................................................315 P2.8 Re gulatory fees ...........................................................................315 P2.9 D epreciation, amortisation and impairment charges .............................................................................................316 P2.10 N et loan losses ............................................................................316 P2.11 Taxes ..................................................................................................317 P3 F inancial instruments .......................................................................318 P3.1 Re cognition on and derecognition from t he balance sheet ......................................................................318 P3.2 T ransferred assets and obtained collateral .............318 P3.3 C lassification and measurement ....................................319 P3.4 F air value ........................................................................................ 322 P3.5 H edge accounting .....................................................................327 P3.6 C ash and balances with central banks ......................330 P3.7 Lo ans .................................................................................................330 P3.8 Int erest-bearing securities ................................................. 332 P3.9 Shares ............................................................................................... 332 P3.10 Derivatives ..................................................................................... 332 P3.11 D eposits by credit institutions and c entral banks ...............................................................................333 P3.12 D eposits and borrowings from the public ...............334 P3.13 D ebt securities in issue .........................................................334 P3.14 Sub ordinated liabilities .........................................................334 P4 I ntangible and tangible assets ................................................... 336 P4.1 Int angible assets .......................................................................336 P4.2 T angible assets .......................................................................... 337 P4.3 Leases............................................................................................... 337 P5 Provisions ............................................................................................... 338 P6 O ff-balance sheet items ................................................................. 338 P6.1 C ontingent liabilities ...............................................................338 P6.2 Commitments ..............................................................................339 P6.3 A ssets pledged ..........................................................................339 P7 E mployee benefits and key management p ersonnel remuneration ................................................................340 P7.1 F ixed and variable salaries ................................................340 P7.2 Pensions ..........................................................................................340 P7.3 S hare-based payment plans ..............................................341 P7.4 K ey management personnel remuneration ...........342 P7.5 N umber of employees ...........................................................342 P8 I nvestments in group undertakings, associated u ndertakings and joint ventures ............................................... 343 P8.1 In vestments in group undertakings .............................343 P8.2 In vestments in associated undertakings a nd joint ventures .....................................................................343 P8.3 C urrency translation of foreign entities ....................344 P9 O ther disclosures ............................................................................... 345 P9.1 Equity ................................................................................................345 P9.2 A dditional disclosures on the cash flow statement ....................................................................................... 347 P9.3 M aturity analysis .......................................................................348 P9.4 A ssets and liabilities in EUR and other currencies.......................................................................................349 P9.5 O ther assets .................................................................................349 P9.6 O ther liabilities ...........................................................................349 P9.7 C ustomer assets under management ........................350 P9.8 Re lated party transactions ................................................350 P10 R isk and liquidity management ..................................................352 ===== SIDA 309 ===== Nordea Annual Report 2025 308 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Income statement EURm Note 2025 2024 Operating income Interest income 12,257 15,321 Interest expense -7,086 -9,777 Net interest income P2.2 5,171 5,544 Fee and commission income 2,515 2,404 Fee and commission expense -636 -566 Net fee and commission income P2.3 1,879 1,838 Net result from securities at fair value through profit or loss P2.4 1,018 990 Net result from securities at fair value through fair value reserve P2.4 28 5 Income from equity investments P2.5 1,739 958 Other operating income P2.6 756 764 Total operating income 10,591 10,099 Operating expenses Staff costs P7 -2,731 -2,619 Other administrative expenses P2.7 -1,134 -1,104 Other operating expenses P2.7 -482 -630 Regulatory fees P2.8 -60 -52 Depreciation, amortisation and impairment charges P2.9 -428 -385 Total operating expenses -4,835 -4,790 Profit before loan losses 5,756 5,309 Net loan losses P2.10 -23 -83 Operating profit 5,733 5,226 Income tax expense P2.11 -991 -1,037 Net profit for the year 4,742 4,189 ===== SIDA 310 ===== Nordea Annual Report 2025 309 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Balance sheet EURm Note 31 Dec 2025 31 Dec 2024 Assets Cash and balances with central banks P3.6 36,338 44,862 Debt securities eligible for refinancing with central banks P3.8 78,724 71,349 Loans to credit institutions P3.7 87,447 75,139 Loans to the public P3.7 168,467 151,977 Interest-bearing securities P3.8 10,145 9,630 Shares P3.9 18,280 17,491 Investments in group undertakings P8.1 15,981 15,656 Investments in associated undertakings and joint ventures P8.2 71 74 Derivatives P3.10 18,241 26,054 Fair value changes of hedged items in portfolio hedges of interest rate risk P3.5 -56 -69 Intangible assets P4.1 1,749 1,570 Tangible assets P4.2 233 224 Deferred tax assets P2.11 25 25 Current tax assets P2.11 256 249 Retirement benefit assets P7.2 328 351 Other assets P9.5 5,361 6,896 Prepaid expenses and accrued income P9.5 599 987 Total assets 442,189 422,465 EURm Note 31 Dec 2025 31 Dec 2024 Liabilities Deposits by credit institutions and central banks P3.11 42,027 36,306 Deposits and borrowings from the public P3.12 250,302 240,106 Debt securities in issue P3.13 78,991 70,127 Derivatives P3.10 18,857 25,927 Fair value changes of hedged items in portfolio hedges of interest rate risk P3.5 -567 -458 Current tax liabilities P2.11 456 18 Other liabilities P9.6 13,554 12,659 Accrued expenses and prepaid income P9.6 882 1,257 Deferred tax liabilities P2.11 208 377 Provisions P5 346 376 Retirement benefit liabilities P7.2 251 234 Subordinated liabilities P3.14 8,810 7,410 Total liabilities 414,117 394,339 Equity Share capital 4,050 4,050 Additional Tier 1 capital holders – 750 Invested unrestricted equity 1,077 1,053 Other reserves -137 -37 Retained earnings 18,340 18,121 Net profit for the year 4,742 4,189 Total equity P9.1 28,072 28,126 Total liabilities and equity 442,189 422,465 Off-balance sheet commitments Commitments given to a third party on behalf of customers P6.1 - Guarantees and pledges 54,325 54,380 - Other 454 483 Irrevocable commitments in favour of customers, other P6.2 105,179 99,530 ===== SIDA 311 ===== Nordea Annual Report 2025 310 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other Cash flow statement EURm Note1 2025 2024 Operating activities Operating profit 5,733 5,226 Adjustment for items not included in cash flow P9.2 2,509 1,982 Income taxes paid P2.11 -730 -1,001 Cash flow from operating activities before changes in operating assets and liabilities 7,512 6,207 Changes in operating assets Change in debt securities eligible for refinancing with central banks P3.8 -3,314 -3,120 Change in loans to credit institutions P3.7 -7,866 -6,499 Change in loans to the public P3.7 -14,762 -4,615 Change in interest-bearing securities P3.8 -7,299 -8,012 Change in shares P3.9 -561 -7,500 Change in derivatives, net P3.10 -1,247 -3,919 Change in other assets P9.5 1,562 2,404 Changes in operating liabilities Change in deposits by credit institutions and central banks P3.11 5,951 -176 Change in deposits and borrowings from the public P3.12 7,616 21,646 Change in debt securities in issue P3.13 10,102 -2,924 Change in other liabilities P9.6 -1,006 2,651 Cash flow from operating activities -3,312 -3,857 EURm Note1 2025 2024 Investing activities Investment in and capital contributions to group undertakings P8.1 -61 -1,771 Acquisition of assets and liabilities P9.2 – 3,079 Investments in associated undertakings and joint ventures P8.2 -46 -13 Sale of associated undertakings and joint ventures P8.2 98 4 Acquisition of property and equipment P4.2 -40 -41 Sale of property and equipment P4.2 0 0 Acquisition of intangible assets P4.1 -537 -438 Cash flow from investing activities -586 820 Financing activities Issued subordinated liabilities P3.14 1,776 2,192 Amortised subordinated liabilities P3.14 -839 -762 Sale/repurchase of own shares incl. changes in trading portfolio P9.1 -873 -382 Paid interest on Additional Tier 1 capital P9.1 -26 -26 Dividend paid P9.1 -3,268 -3,218 Cash flow from financing activities -3,230 -2,196 Cash flow for the year -7,128 -5,233 Cash and cash equivalents at beginning of year 45,215 49,840 Translation differences -1,344 608 Cash and cash equivalents at end of year 36,743 45,215 Change -7,128 -5,233 1) F or more information regarding the cash flow statement, see Note P9.2 “Additional disclosures on the cash flow statement”. ===== SIDA 312 ===== Nordea Annual Report 2025 311 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P1 Accounting policies Corporate information Nordea Bank Abp (Business ID 2858394-9) is the parent company of the Nordea Group. Nordea Bank Abp is a pub- lic limited liability company organised under the laws of Finland with its head office located in Helsinki, Finland at the following address: Hamnbanegatan (Satamaradankatu) 5, FI-00020 Nordea Bank Abp, Helsinki, Finland. Nordea Bank Abp’s ordinary shares are listed on Nasdaq Nordic, the stock exchanges in Helsinki (in euro), Stockholm (in Swedish kronor) and Copenhagen (in Danish kroner), and its American Depository Receipts are traded in the US in US dollars. The Nordea Group is hereafter referred to as the Group. Basis of preparation The financial statements of the parent company, Nordea Bank Abp, are prepared in accordance with the Finnish Accounting Act, the Finnish Act on Credit Institutions, the Decree of the Finnish Ministry of Finance on the financial statements and consolidated financial statements of credit institutions and investment firms, and the regulations and guidelines of the Finnish Financial Supervisory Authority. Nordea Bank Abp applies IFRS accounting standards as adopted by the European Union (EU) for recognition, measurement and presentation of financial instruments in accordance with the Finnish Act on Credit Institutions. The accounting policies are unchanged from the 2024 Annual Report. For more information about accounting policies, see the respective notes. All amounts are in euro million unless otherwise stated. On 17 February 2026 the Board of Directors approved the financial statements, subject to final adoption by the Annual General Meeting on 24 March 2026. Changes to accounting policies not yet applied IFRS 16 Leases As of 1 January 2026 Nordea Bank Abp will adopt IFRS 16 Leases, as permitted under the Finnish Accounting Standards, to align the accounting policy and presentation of leases with the consolidated financial statements of the Group, which adopted IFRS 16 in 2019. Nordea Bank Abp’s leases are mainly related to office premises contracts but also to company cars and IT hardware. In accordance with IFRS 16, at the commencement date each lease should be accounted for on the balance sheet of the lessee as a right-of-use asset at cost and as a lease liability at the net present value of the future lease pay- ments discounted by using the lessee’s incremental bor- rowing rate at the commencement date of the lease con- tract. The right-of-use assets are subsequently depreci- ated on a straight-line basis over the lease term, and the lease liability is measured using the effective interest rate method and decreased by lease payments made. See the Group’s Note G5.4 “Leases” for more information on the accounting policies. At the transition date, the estimated impact on 1 January 2025 right-of-use assets is EUR 1,257m, on lease liabilities EUR 1,101m and on retained earnings EUR -14m. Translation of assets and liabilities denominated in foreign currencies Nordea Bank Abp presents its financial statements in euro (EUR). Foreign currency is defined as any currency other than euro. Foreign currency transactions are recorded at the exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate on the bal- ance sheet date. The table below shows the exchange rates used for translating the income statements and balance sheets of the Nordic branches from the local functional currencies into the presentation currency. Jan–Dec 2025 Jan–Dec 2024 EUR 1 = SEK Income statement (average) 11.0675 11.4370 Balance sheet (at end of year) 10.8180 11.4485 EUR 1 = DKK Income statement (average) 7.4634 7.4587 Balance sheet (at end of year) 7.4686 7.4576 EUR 1 = NOK Income statement (average) 11.7223 11.6308 Balance sheet (at end of year) 11.8310 11.7810 Exchange differences arising on the settlement of transac- tions at rates different from those on the date of the trans- actions, and unrealised translation differences on unset- tled foreign currency monetary assets and liabilities, are recognised in the income statement under “Net result from securities at fair value through profit or loss”. P2 Financial performance and returns P2.1 Busine ss area and geographical information Business area information Nordea Bank Abp presents the financial results of the three main business areas: Personal Banking, Business Banking and Large Corporates & Institutions. Group func- tions and eliminations as well as the results not fully allo- cated to any of the main business areas are shown sepa- rately as reconciling items. Personal Banking serves Nordea Bank Abp’s household customers and offers a full range of financial services that fulfil the customers’ day-to-day financial needs. Personal Banking serves customers through Nordea Netbank, the mobile banking app, over the phone, via online meetings and at Nordea’s branch offices. The business area includes advisory and service staff, channels and product units under a common strategy, operating model and govern- ance framework across markets. Business Banking serves, advises and partners with corporate customers, covering all their business needs through a full range of services, including payments, cash management, cards, working capital management and financing solutions. Business Banking also provides ser- vices such as payments, cards and financing solutions to personal customers. Large Corporates & Institutions provides financial solutions to large Nordic and international corporates and institutional customers. The offering includes a diverse range of financing, cash management and payment services, investment banking, capital markets products and securities services. ===== SIDA 313 ===== Nordea Annual Report 2025 312 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.1 Busine ss area and geographical information, cont. Income statement 2025, EURm Personal Banking Business Banking Large Corporates & Institutions Total business areas Recon ciliation Total Net interest income 1,943 1,660 1,285 4,888 283 5,171 Net fee and commission income 1,287 580 525 2,392 -513 1,879 Net result from securities at fair value through profit or loss 76 410 517 1,003 15 1,018 Net result from securities at fair value through fair value reserve – – – – 28 28 Other income 1 367 93 1 461 2,034 2,495 Total operating income 3,673 2,743 2,328 8,744 1,847 10,591 Staff costs -658 -300 -298 -1,256 -1,475 -2,731 Other expenses2 -1,556 -960 -605 -3,121 1,505 -1,616 Regulatory fees -43 -20 -15 -78 18 -60 Depreciation, amortisation and impairment charges -42 -19 -20 -81 -347 -428 Total operating expenses 2, 299 1, 299 938 4,536 299 4, 835 Profit before loan losses 1,374 1,444 1,390 4,208 1,548 5,756 Net loan losses -29 -2 10 -21 -2 -23 Operating profit 1,345 1,442 1,400 4,187 1,546 5,733 1) Incl uding “Income from equity investments” and “Other operating income”. 2) Incl uding “Other administrative expenses” and “Other operating expenses”. Balance sheet 31 Dec 2025, EURbn Personal Banking Business Banking Large Corporates & Institutions Total business areas Recon ciliation Total Loans to the public 20 52 91 163 5 168 Deposits and borrowings from the public 97 54 75 226 24 250 Income statement 2024, EURm Personal Banking Business Banking Large Corporates & Institutions Total business areas Recon ciliation Total Net interest income 2,155 1,764 1,423 5,342 202 5,544 Net fee and commission income 1,203 540 478 2,221 -383 1,838 Net result from securities at fair value through profit or loss 203 442 432 1,077 -87 990 Net result from securities at fair value through fair value reserve – – – – 5 5 Other income 1 465 53 -1 517 1,205 1,722 Total operating income 4,026 2,799 2,332 9,157 942 10,099 Staff costs -611 -285 -309 -1,205 -1,414 -2,619 Other expenses2 -1,562 -877 -537 -2,976 1,242 -1,734 Regulatory fees -38 -21 -14 -73 21 -52 Depreciation, amortisation and impairment charges -41 -19 -20 -80 -305 -385 Total operating expenses 2,252 1, 202 880 4,334 456 4, 790 Profit before loan losses 1,774 1,597 1,452 4,823 486 5,309 Net loan losses -34 -70 18 -86 3 -83 Operating profit 1,740 1,527 1,470 4,737 489 5,226 1) Incl uding “Income from equity investments” and “Other operating income”. 2) Incl uding “Other administrative expenses” and “Other operating expenses”. Balance sheet 31 Dec 2024, EURbn Personal Banking Business Banking Large Corporates & Institutions Total business areas Recon ciliation Total Loans to the public 20 49 77 146 6 152 Deposits and borrowings from the public 90 52 72 214 26 240 Geographical information Total operating income, EURm Operating profit, EURm Assets, EURbn Liabilities, EURbn 2025 2024 2025 2024 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Finland 3,349 2,810 2,049 1,527 102 110 114 106 Sweden 3,066 2,945 1,723 1,581 130 109 116 102 Denmark 2,220 2,427 776 972 114 108 95 96 Norway 1,781 1,732 1,065 1,045 82 76 75 71 Other 175 185 120 101 14 19 14 19 Total 10,591 10,099 5,733 5,226 442 422 414 394 Nordea Bank Abp’s main geographical markets comprise the Nordic countries. ===== SIDA 314 ===== Nordea Annual Report 2025 313 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.2 Net in terest income Accounting policies Interest consists of compensation for time value of money plus a margin. The effective interest rate equals the rate that discounts the estimated future cash flows to the net carrying amount of the finan- cial asset or financial liability at initial recognition. Interest income and expense are calculated and recognised using the effective interest rate method or, if considered appropriate, a method that provides a reasonable approximation in line with the effective interest rate method as the basis for the calculation. The effective interest rate includes fees considered to be an integral part of the effective interest rate of a financial instrument (generally fees received as compensation for risk). Interest income and interest expense from financial instruments are, with the exceptions described below, classified as “Net inter- est income”. Interest income and interest expense related to all balance sheet items held at fair value in Markets are classified as “Net result from securities at fair value through profit or loss” in the income statement. Also, interest on the net funding of operations in Markets, and on the net funding of fund investments in Treasury, measured at amortised cost is recognised in this line item to ensure that income and expense within these operations are presented in a consistent manner. See Note P2.4 “Total net result from items at fair value”. The interest component of derivatives is classified as “Net result from securities at fair value through profit or loss”, except for derivatives used for hedging purposes. In accounting hedges the interest compo- nent of derivatives is classified as “Interest income calculated using the effective interest rate method” if the derivative is used to hedge an asset and as “Interest expense” if the derivative is used to hedge a liability. In economic hedges the interest component of derivatives is classified as “Interest income” if the derivative is used to hedge an asset and as “Interest expense” if the derivative is used to hedge a liability. Interest income EURm 2025 2024 Interest income calculated using the effective interest rate method1 11,976 14,703 Financial assets at fair value through profit or loss 252 452 Net interest paid or received on derivatives in economic hedges of assets 29 166 Interest income 2 12,257 15,321 EURm 2025 2024 Cash and balances with central banks 146 214 Debt securities eligible for refinancing with central banks 1,393 1,310 Loans to credit institutions 3,796 4,805 Loans to the public 5,957 7,146 Interest-bearing securities 525 766 Derivatives 128 665 Yield fees 262 246 Other interest income 21 3 Net interest paid or received on derivatives in economic hedges of assets 29 166 Interest income 2 12,257 15,321 Interest expense EURm 2025 2024 Deposits by credit institutions and central banks -729 -1,058 Deposits and borrowings from the public -3,838 -5,205 Debt securities in issue -1,998 -2,100 Derivatives -181 -1,207 Subordinated liabilities -343 -271 Other interest expense -43 -44 Net interest paid or received on derivatives in economic hedges of liabilities 46 108 Interest expense 7 ,086 9,777 Net interest income 5,171 5,544 1) Incl udes interest income from financial assets measured at amortised cost or at fair value through other comprehensive income. 2) In terest on impaired loans (stage 3) accounted for an insignificant share of interest income. P2.3 Net f ee and commission income Accounting policies Nordea Bank Abp earns commission income from different services provided to customers and group undertakings. Fee income is recognised as revenue when services are provided or in connection with the execution of a significant act. Fees received in connection with performed services are recognised as income in the period when these services are provided. Asset management commissions and Life & Pension commissions are mainly generated from the services provided to group undertakings. The recog- nition of commission income depends on the pur- pose for which the fees are received. Lending fees that are not part of the effective interest rate of a financial instrument are recognised at a point of time when the services are provided. Fees received for bilateral transactions are generally amortised as part of the effective interest rate of the financial instruments recognised. Loan syndication fees are recognised either as part of the effective interest rate of the participation or, if Nordea Bank Abp is acting as an agent in the transaction, as lend- ing fee income. When the fee income is related to both activities, the fee that is recognised as part of the effective interest rate is based on the margin received by the other parties in the arrangement. Variable fees, such as performance fees, are rec- ognised only to the extent that it is highly probable that a significant reversal in the cumulative recog- nised amount does not occur. Commission expenses covering a certain period are expensed over that period whereas transactional fees are recognised when the services are received. Net fee and commission income 2 EURm 2025 2024 Asset management1 480 475 - of which income 487 482 - of which expense -7 -7 Deposit products 19 20 - of which income 19 20 Custody and issuer services 10 16 - of which income 55 60 - of which expense -45 -44 Brokerage and advisory services 205 210 - of which income 338 336 - of which expense -133 -126 Payments and cards 596 560 - of which income 874 810 - of which expense -278 -250 Lending 399 364 - of which income 405 367 - of which expense -6 -3 Guarantees 173 188 - of which income 269 261 - of which expense -96 -73 Other -3 5 - of which income 68 68 - of which expense -71 -63 Total 1,879 1,838 1) Net f ee and commission income previously presented in the line item “Life and pension” is included in the line item “Asset management” from 2025 as these items are similar in nature. Comparative figures have been restated accordingly. 2) F ee income, not included in determining the effective interest rate, from financial assets and liabilities not measured at fair value through profit or loss amounted to EUR 424m (EUR 387m). Asset management commissions include commission or fee income which is generally recognised over time as the services are performed. Fees categorised as “Deposit products”, “Brokerage and advisory services”, “Custody and issuer services” and “Payments and cards” are recognised both over time and at a point of time depending on when the services are pro- vided. Brokerage and advisory fee and commission income ===== SIDA 315 ===== Nordea Annual Report 2025 314 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.3 Net f ee and commission income, cont. is mainly transaction-based in relation to advising custom- ers or executing customer transactions in securities where the services are recognised at a point of time when the services related to the transactions are completed. Payment and cards fee income includes fees for cash management and payment solutions that are recognised over time and transaction-based fees for services like domestic and foreign payments that are recognised over time. Card-related fees are categorised as interchange fees which are recognised at a point of time when the cus- tomer uses the services, or as cardholder fees which are recognised over time or at a point of time if the fee is transaction-based. Lending fees are recognised at a point of time when the performance obligation is satisfied, i.e. when the transac- tion has been performed, unless the fees are part of the effective interest rate of the financial instrument. Income from issued financial guarantees and expenses for bought financial guarantees are amortised over the duration of the instruments and classified as “Fee and commission income” and “Fee and commission expense”, respectively. Other fee income is generally transaction-based. For transactional services performed at a point of time, payments are generally made instantly when the services are performed. For services performed over time, the period of the services is normally short. Examples of such services are monthly payment services and monthly or quarterly asset management services. For the services performed over time, the right to payment generally arises at the end of the period of the services when the perfor- mance obligations are satisfied and it is highly probable that no significant reversal of the consideration will occur. Account receivables are recognised in “Other assets”, while unbilled receivables for satisfied performance obli- gations and contract assets are recognised in “Prepaid expenses and accrued income”. Short-term advances received where the performance obligations have not yet been satisfied are recognised in “Accrued expenses and prepaid income”. Commission expenses are normally transaction-based and recognised in the period in which the services are received. P2.4 T otal net result from items at fair value Accounting policies Net result from securities at fair value through profit or loss Realised and unrealised gains and losses on finan- cial instruments are generally presented in “Net result from securities at fair value through profit or loss”. The accounting policies used when estimating fair value can be found in Note P3.4 “Fair value”. The following items are moreover presented in “Net result from securities at fair value through profit or loss”: • Interest on the net funding of operations in Mar- kets and on the net funding of fund investments in Treasury measured at amortised cost. • Realised gains/losses on assets and liabilities measured at amortised cost. • The revaluation of the hedged risks of hedged items under hedge accounting. • Foreign exchange gains/losses. • Dividends received from shares held for trading. The following item is not presented as “Net result from securities at fair value through profit or loss”: • The interest component of derivatives used for hedge accounting and economic hedges. These components are presented in “Net interest income” to ensure consistent accounting treat- ment with the hedged items. For more information on accounting policies related to foreign exchange gains/losses, see Note P1 “Accounting policies” and Note P8.3 “Currency trans- lation of foreign entities”. Hedge accounting is described in Note P3.5 “Hedge accounting”. Net result from securities at fair value through fair value reserve Recycled gains and losses on financial instruments classified in the category “Financial assets at fair value through other comprehensive income” are rec- ognised in “Net result from securities at fair value through fair value reserve”. Net result from items at fair value through profit or loss EURm 2025 Of which unrealised Of which realised Equity-related instruments1 335 -291 626 Interest-related instruments 250 -2,112 2,362 Foreign exchange gains/losses 426 -4,492 4,918 Other 7 -43 50 Total 1,018 6,938 7,956 - of which held for trading 1,173 -2,420 3,593 EURm 2024 Of which unrealised Of which realised Equity-related instruments1 522 539 -17 Interest-related instruments 209 -604 813 Foreign exchange gains/losses 479 5,868 -5,389 Other -220 -75 -145 Total 990 5,728 4, 738 - of which held for trading 1,366 -217 1,583 1) Dividends f rom shares held for trading amounted to EUR 198m (EUR 180m). P2.5 Inc ome from equity investments Accounting policies Dividends received from other investments than trading shares as well as group contributions are recognised in the income statement as “Income from equity investments”. Income is recognised in the period in which the right to receive payment is established. Income from equity investments EURm 2025 2024 Dividends from group undertakings 1,476 753 Dividends from associated undertakings and joint ventures 4 28 Group contributions 256 174 Dividends from shares measured at fair value through profit or loss, non-trading 3 3 Total 1,739 958 ===== SIDA 316 ===== Nordea Annual Report 2025 315 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.6 Other oper ating income Accounting policies Net gains from divestment of shares in group under- takings, associated undertakings and joint ventures and net gains from the sale of tangible assets as well as other transactions not related to any other income line are generally presented in “Other oper- ating income” and recognised when it is probable that the benefits associated with the transaction will flow to Nordea Bank Abp. This generally occurs when the significant risks and rewards have been transferred to the buyer (generally when the trans- action is finalised). Other operating income EURm 2025 2024 Income from services provided to group undertakings 663 729 Gain on sales of group undertakings and associated undertakings 55 – Income from real estate 23 18 Other 15 17 Total 756 764 P2.7 Other expenses Accounting policies Transactions not related to any other expense line are generally presented in the line item “Other administrative expenses” or “Other operating expenses” depending on the nature of the transac- tion. The majority of the ”Other administrative expenses” are related to acquired services, primarily within information technology (IT), and personnel related expenses that are not presented in “Staff costs”. Other expenses than administrative expenses are presented in “Other operating expenses”. Net losses from divestment of shares in group undertakings, associated undertakings and joint ventures and net losses from the sale of tangible assets are generally recognised in “Other operating expenses” when risks and rewards have been trans- ferred to the buyer (generally when the transaction is finalised). Expenses that fulfil the capitalisation require- ments defined in the accounting policies in Note P4.1 “Intangible assets” are included gross in this note but subsequently capitalised and added to “Intangible assets” on the balance sheet. This note includes the specifications for the income state- ment line items “Other administrative expenses” and “Other operating expenses”. Other administrative expenses EURm 2025 2024 Information technology1 -1,081 -1,019 Marketing and representation -58 -68 Postage, transport, telephone and office expenses -38 -42 Market data services -65 -67 Other personnel expenses -97 -98 Travelling -22 -28 Other -95 -62 Total 1,456 1,384 Expenses capitalised for IT development projects 2 322 280 Total 1, 134 1, 104 1) “In formation technology” includes IT consultancy. 2) See No te P4.1 “Intangible assets”. Other operating expenses EURm 2025 2024 Rent, premises and real estate -270 -258 Fees to authorities1 -59 -123 Professional services2 -157 -180 Other 4 -69 Total 482 630 1) “F ees to authorities” includes deposit guarantee fees, supervisory fees, adminis - trative fees to authorities as well as membership fees to banking associations. 2) “Pr ofessional services” includes the fees for the auditor. Auditor’s fees1 EURm 2025 2024 PricewaterhouseCoopers Auditing assignments -6 -7 Audit-related services2 0 0 Other assignments2 -1 -1 Total 7 8 1) Audit or’s fees in the table are disclosed excluding non-deductible VAT. 2) Pric ewaterhouseCoopers Oy accounted for EUR -0.8m (EUR -0.1m) of “Audit- related services”, of which EUR -0.6m refers to CSRD Assurance, and for EUR -0.4m (EUR -1.2m, of which EUR -0.6m refers to CSRD Assurance) of “Other assignments”. Neither PricewaterhouseCoopers Oy nor any other firm of PricewaterhouseCoopers Network has provided any tax advisory services. P2.8 Regulatory fees Accounting policies Regulatory fees consist of levies imposed by a gov- ernment. The expenses for such levies are recog- nised when the obligating event that gives rise to a liability to pay a levy has occurred. Regulatory fees EURm 2025 2024 Risk tax -56 -52 Interest-free deposit in the Swedish central bank -4 – Total 60 52 Resolution fees are not refundable if Nordea discontinues its operations, and the obligating event is consequently assessed to occur on the first day of the year and the fee is recognised in full in the first quarter. The Single Resolution Fund reached its target level of at least 1% of covered deposits held in EU member states. As a result, no resolu- tion fee was collected by the Single Resolution Board in 2025 and 2024. The Swedish risk tax (previously referred to as Bank tax) is refundable for the period during which Nordea does not operate, and the obligating event is therefore assessed to occur continuously over the year and the risk tax being amortised on a straight-line basis over the course of the year. Starting from 2025 the Swedish Central Bank can each year request interest-free deposits from credit institutions with operations in Sweden. Nordea recognises a regula- tory fee representing the interest that would otherwise have been received on the deposit over its lifetime (usually one year). The regulatory fee is recognised in full on the date of the deposit that is assessed to constitute the obli- gating event. The regulatory fee is amortised as interest income over the lifetime of the deposit as part of the effective interest on the deposit which is presented under “Loans to central banks”. ===== SIDA 317 ===== Nordea Annual Report 2025 316 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.9 Depreciation, amortisation and impairment charges Accounting policies Intangible and tangible assets are depreciated/ amortised on a straight-line basis over the estimated useful life of the assets. All intangible assets are also reviewed for indications of impairment and if such indications are found, the assets are tested for impairment. IT development not yet taken into use is not amortised but tested for impairment annually irrespective of any indications of impairment. Impairment testing is also performed more fre- quently if required due to any indication of impair- ment. The impairment charge is calculated as the difference between the carrying amount and the recoverable amount. Accounting policies for intangible and tangible assets can be found in Note P4 “Intangible and tan- gible assets”. Impairment of investments in group undertakings, associated undertakings and joint ventures is also presented in the line item “Depreciation, amortisa- tion and impairment charges” in the income state- ment. Further information on group undertakings owned by Nordea Bank Abp can be found in Note P8.1 “Investments in group undertakings”, and infor- mation on associated undertakings and joint ven- tures can be found in Note P8.2 “Investments in associated undertakings and joint ventures”. Depreciation, amortisation and impairment charges EURm 2025 2024 Amortisation of intangible assets Goodwill -13 -18 Customer-related intangible assets -2 – Internally developed software -318 -280 Software licences -51 -43 Total amortisation 384 341 Depreciation of tangible assets Equipment -13 -12 Leasehold improvements -21 -21 Total depreciation 34 33 Impairment of intangible assets Internally developed software -2 -13 Total impairment charges 2 13 Impairment of investments in group undertakings, associated undertakings and joint ventures Associated undertakings and joint ventures -8 2 Total impairment charges 8 2 Total 4 28 385 P2.10 Net l oan losses Accounting policies Impairment losses on financial assets classified in the category “Amortised cost” (see Note P3.3 “Classification and measurement”), in the line items “Loans to credit institutions”, “Loans to the public” and “Interest-bearing securities” on the balance sheet, are reported as “Net loan losses” in the income statement. The table shows the loan losses by line item in the balance sheet. The losses from financial guarantees are also included in “Net loan losses”. The losses are reported net of the impact from any collateral and other credit enhancements. Nordea Bank Abp’s accounting policies for the calcu- lation of impairment losses on loans can be found in Note P3.7 “Loans”. Counterparty losses on financial instruments clas- sified in the category “Financial assets at fair value through profit or loss”, including credit derivatives but excluding loans held at fair value, are reported under “Net result from securities at fair value, through profit or loss”. For more information see Note P2.4 “Total net result from items at fair value”. More information on credit risk can be found in Note P10 “Risk and liquidity management“. Net loan losses Loans to credit institutions2 Loans to the public2 Interestbearing securities3 Off balance sheet items4 Total EURm 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net loan losses, stage 1 2 0 36 32 0 2 26 -12 64 22 Net loan losses, stage 2 0 0 59 55 0 – 2 -22 61 33 Net loan losses, not credit impaired assets 2 0 95 87 0 2 28 34 125 55 Stage 3, creditimpaired assets Net loan losses, individually assessed, collectively calculated1 0 1 22 34 – – -3 -5 19 30 Realised loan losses – – -277 -139 – – 0 – -277 -139 Decrease in provisions to cover realised loan losses – – 162 77 – – – – 162 77 Reimbursement right – – – – – – 24 7 24 7 Recoveries of previously realised loan losses 1 3 14 17 – – – – 15 20 New/increase in provisions – – -240 -281 – – -29 -10 -269 -291 Reversals of provisions – – 163 146 – – 15 12 178 158 Net loan losses, creditimpaired assets 1 4 156 146 – – 7 4 148 138 Net loan losses1 3 4 61 59 0 2 35 30 23 83 1) Incl udes individually identified assets for which the provision has been calculated based on statistical models. 2) Pr ovisions included in Note P3.7 “Loans”. 3) Pr ovisions included in Note P3.8 “Interest-bearing securities”. 4) Pr ovisions included in Note P5 “Provisions”. ===== SIDA 318 ===== Nordea Annual Report 2025 317 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P2.11 Taxes Accounting policies The line item “Income tax expense” in the income statement consists of the total current tax and deferred tax movements recognised in the income statement. Current and deferred taxes are recog- nised in the income statement unless the tax effects relate to items recognised directly in equity, in which case the tax effects are recognised in equity. Current tax is the expected tax expense on the tax- able income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities are recognised for temporary differences between the carrying amounts of assets and liabilities for financial report- ing purposes and the tax base of the same assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied when the tem- porary differences reverse, based on the laws that have been enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are not discounted. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which temporary differ- ences, tax losses carried forward and unused tax credits can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Current tax assets and current tax liabilities are offset when the legal right to offset exists and Nordea Bank Abp intends to either settle the tax asset and the tax liability net or recover the asset and settle the liability simultaneously. Deferred tax assets and deferred tax liabilities are generally off- set if there is a legally enforceable right to offset current tax assets and current tax liabilities. Tax positions are regularly reviewed to identify situations where it is not probable that the relevant tax authorities will accept the treatment used in the tax filings. Uncertain tax positions are considered independently or as a group, depending on which approach better predicts the resolution of the uncer- tainty. If Nordea Bank Abp concludes that it is not probable that the tax authorities will accept an uncertain tax treatment, the effect of uncertainty is reflected when determining the related taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates. This is done by using either the most likely amount or the expected value, depending on which method better predicts the out- come of the uncertainty. Uncertain tax treatment can affect both current tax and deferred tax. When recognising deferred tax assets and liabili- ties, any jurisdictional impact of Global Anti-Base Erosion (Pillar Two) Rules is not taken into account but is accounted for as a current tax if incurred. Income tax expense EURm 2025 2024 Current tax -1,136 -752 Deferred tax 145 -285 Total 991 1,037 The tax on operating profit differs from the theoretical amount that would arise using the tax rate in Finland as follows: EURm 2025 2024 Profit before tax 5,733 5,227 Tax calculated at a tax rate of 20.0% -1,147 -1,045 Effect of different tax rates in other countries -119 -121 Tax-exempt income 317 162 Non-deductible expenses -52 -43 Prior year adjustments 4 8 Change of tax rate1 3 1 Other 3 1 Tax charge 991 1,037 Effective tax rate 17.3% 19.8% 1) In November 2025 the Polish Parliament introduced an amendment to the Polish Corporate Income Tax (CIT) Act, changing CIT rates for banks and credit institu- tions to 30% in 2026, 26% in 2027 and 23% from 2028 onwards. Relevant deferred tax assets and liabilities have been remeasured to reflect these new rates. Deferred tax assets and liabilities EURm Deferred tax assets Deferred tax liabilities 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Tax losses carried forward2 – 194 – – Loans to the public 52 64 0 1 Derivatives/bonds – – 189 530 Properties and equipment – – 22 9 Intangible assets 10 20 42 52 Retirement benefits 81 52 96 94 Liabilities/provisions 50 57 – – Elimination of temporary differences existing in multiple jurisdictions – – 35 49 Other 9 4 1 8 Netting between deferred tax assets and liabilities -177 -366 -177 -366 Total1 25 25 208 377 1) Deferred tax assets recognised through the fair value reserve totalled EUR 75m (EUR 71m). Deferred tax liabilities recognised through the fair value reserve totalled EUR 43m (EUR 69m). 2) Tax losses carried forward arising from temporary differences in branch jurisdictions. Global AntiBase Erosion tax reform (Pillar Two) In December 2022 the European Union member states adopted a directive to implement the Pillar Two Rules. Most jurisdictions in which Nordea operates enacted the Pillar Two legislation as of 1 January 2024, including Finland where Nordea Bank Abp is incorporated. For more information on the implementation of the Pillar Two Rules, see the Group’s Note G2.11 “Taxes”. ===== SIDA 319 ===== Nordea Annual Report 2025 318 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3 Financial instruments P3.1 Recognition on and derecognition from the balance sheet Accounting policies Derivative instruments, quoted securities and foreign exchange spot transactions are recognised on and derecognised from the balance sheet on the trade date. A corresponding asset or liability is then recog- nised in “Other assets” or “Other liabilities” on the balance sheet between the trade date and the set- tlement date. Other financial instruments are recog- nised on the balance sheet on the settlement date. An asset or a liability is recognised in “Other assets” or “Other liabilities” on the balance sheet between the trade date and the settlement date. Financial assets, other than those for which trade date accounting is applied, are derecognised from the balance sheet when the contractual rights to the cash flows from the financial assets expire or are transferred to another party. The rights to the cash flows normally expire or are transferred when the counterparty has performed by e.g. repaying a loan to Nordea Bank Abp, i.e. on the settlement date. Rights to cash flows may also expire when loans are rolled over or modified. The rights to cash flows are generally considered to have expired if the change is at market rates and no payment-related concession has been provided. In some cases, Nordea Bank Abp enters into agreements where it transfers assets that are recog- nised on the balance sheet but retains either all or a portion of the risks and rewards of the transferred assets. If all or substantially all risks and rewards are retained, the transferred assets are not derecognised from the balance sheet. If Nordea Bank Abp’s coun- terparty can sell or repledge the transferred assets, the assets are disclosed. Transfers of assets with retention of all or substantially all risks and rewards include securities lending agreements and repur- chase agreements. Financial liabilities are derecognised from the bal- ance sheet when the liability is extinguished. Nor- mally this occurs when Nordea Bank Abp fulfils its part of the agreement, for example when Nordea Bank Abp returns a deposit to the counterparty, i.e. on the settlement date. Financial liabilities where the cash flows are modified or rolled over are also derec- ognised if the new terms are substantially different from the terms of the original liabilities. This is the case if the present value of the cash flows under the new terms discounted by the original interest rate dif- fers by 10% or more from the discounted present value of the remaining expected cash flows of the original financial liability. Qualitative factors also considered. A sale of a security not owned by Nordea Bank Abp is defined as a short sale and triggers the rec- ognition of a trading liability (sold, not held, securi- ties) presented in “Other liabilities” on the balance sheet. The short sale is generally covered through a securities financing transaction, normally a reverse repurchase agreement or other forms of securities borrowing agreements. P3.2 Transferred assets and obtained collateral Accounting policies Assets are considered to be transferred from Nordea Bank Abp if Nordea Bank Abp either transfers the contractual right to receive the cash flows from the assets or retains that right but has a contractual obli- gation to pay the cash flows to one or more parties. All assets transferred continue to be recognised on the balance sheet if Nordea Bank Abp is still exposed to changes in the fair value of the assets. Collateral received is not recognised on the bal- ance sheet if Nordea Bank Abp is not exposed to changes in the fair value of the assets. Transferred assets that are not derecognised in their entirety and associated liabilities Repurchase agreements are a form of collateral borrowing where Nordea Bank Abp sells securities with an agree- ment to repurchase them at a later date at a fixed price. Securities lending agreements are agreements where Nordea Bank Abp lends securities to a counterparty and receives a fee. Generally, securities lending agreements are entered into on a collateralised basis. As both repurchase agreements and securities lending agreements result in the securities being returned to Nordea Bank Abp, all risks and rewards associated with the instruments transferred are retained by Nordea Bank Abp although the instruments are not available to Nordea Bank Abp during the period during which they are transferred. The counterparties to the agreements hold the securities as collateral but have no recourse to other assets in Nordea Bank Abp. For this reason securities delivered under repur- chase agreements and securities lending agreements are not derecognised from the balance sheet. Securities deliv- ered under repurchase agreements and securities lending agreements are also disclosed in Note P6.3 “Assets pledged”. Cash received under repurchase agreements and securities lending agreements is recognised on the balance sheet in “Deposits by credit institutions and central banks” or “Deposits and borrowings from the public”. In derivative agreements Nordea Bank Abp delivers col- lateral which, under the terms of the agreements, can be sold or repledged. Such agreements are mainly related to collateral delivered under credit support annex agreements. Transferred assets not derecognised from the balance sheet EURm 31 Dec 2025 31 Dec 2024 Repurchase agreements Interest-bearing securities 10,813 9,504 Securities lending agreements Interest-bearing securities 1,658 392 Shares 1,910 511 Derivatives agreements Interest-bearing securities 486 27 Total 14,867 10,435 Liabilities associated with the assets 1 EURm 31 Dec 2025 31 Dec 2024 Repurchase agreements 10,813 9,504 Securities lending agreements 3,568 904 Derivative agreements 486 27 Total 14,867 10,435 Net 0 0 1) Liabilities before offsetting between assets and liabilities on the balance sheet. Obtained collateral permitted to be sold or repledged Nordea Bank Abp obtains collateral under reverse repur- chase and securities borrowing agreements which, under the terms of the agreements, can be sold or repledged. The transactions are conducted under standard agree- ments employed by financial market participants. Generally, the agreements require additional collateral to be provided if the value of the securities falls below a pre- determined level. Under the standard terms of most repur- chase transactions, the recipient of collateral has an unre- stricted right to sell or repledge it, subject to returning equivalent securities on settlement of the transactions. Securities received under reverse repurchase and secu- rities borrowing agreements are not recognised on the balance sheet. Cash delivered under reverse repurchase and securities borrowing agreements is recognised on the balance sheet in “Loans to central banks”, “Loans to credit institutions” or “Loans to the public”. The fair value of the securities obtained as collateral under reverse repurchase and securities borrowing agree- ments is disclosed below. Nordea Bank Abp also obtains collateral under other agreements which, under the terms of the agreements, can be sold or repledged. Such collateral is mainly received under credit support annex agreements covering derivative agreements. The received collateral pre- sented in the table below is not recognised on the balance sheet and includes collateral issued by Nordea Bank Abp. ===== SIDA 320 ===== Nordea Annual Report 2025 319 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.2 T ransferred assets and obtained collateral, cont. Obtained collateral permitted to be sold or repledged EURm 31 Dec 2025 31 Dec 2024 Reverse repurchase agreements Collateral received that can be repledged or sold 34,333 31,067 - of which repledged or sold 10,709 16,163 Securities borrowing agreements Collateral received that can be repledged or sold 5,838 4,174 - of which repledged or sold 1,774 493 Derivative agreements Collateral received that can be repledged or sold 1,581 3,309 - of which repledged or sold 575 673 Other agreements Collateral received that can be repledged or sold 0 4 - of which repledged or sold – – Total 41,752 38,554 Receivables related to reverse repurchase agreements recognised on the balance sheet and liabilities related to repurchase agreements recognised on the balance sheet are presented in the table below. Receivables related to reverse repurchase agreements EURm 31 Dec 2025 31 Dec 2024 Loans to credit institutions 4,467 2,330 Loans to the public 30,573 25,858 Total 35,040 28,188 Liabilities related to repurchase agreements EURm 31 Dec 2025 31 Dec 2024 Deposits by credit institutions and central banks 20,932 21,298 Deposits and borrowings from the public 17,066 9,192 Total 37,998 30,490 P3.3 Classifica tion and measurement Accounting policies Each financial instrument has been classified in one of the following categories: Financial assets: • Amortised cost • Financial assets at fair value through profit or loss: - Mandatorily measured at fair value through profit or loss - Designated at fair value through profit or loss (fair value option) • Financial assets at fair value through other comprehensive income. Financial liabilities: • Amortised cost • Financial liabilities at fair value through profit or loss: - Mandatorily measured at fair value through profit or loss - Designated at fair value through profit or loss (fair value option). The classification of a financial asset is dependent on the business model for the portfolio in which the instrument is included and on whether the contractual cash flows are solely payments of principal and inter- est (SPPI). Contractual cash flows that are SPPI are consistent with a basic lending arrangement. In a basic lending arrangement, interest can include compensation for the time value of money, credit risk, liquidity risk, costs and profit margin. Financial assets with contractual cash flows that are not SPPI are measured at fair value through profit or loss. All other assets are classified based on the busi- ness model. Instruments included in a portfolio with a business model where the intention is to keep the instruments and collect contractual cash flows are measured at amortised cost. Instruments included in a business model where the intention is both to keep the instruments to collect the contractual cash flows and to sell the instruments are measured at fair value through the fair value reserve in equity. Financial assets included in any other business model are meas- ured at fair value through profit or loss. In order to determine the business model, Nordea Bank Abp has divided its financial assets into portfolios and/or sub-portfolios based on how groups of finan- cial assets are managed together to achieve a particu- lar business objective. When determining the right level for the portfolios, Nordea Bank Abp has taken the current business area structure into account. When determining the business model for each portfolio, Nordea Bank Abp has analysed the objective of the financial assets as well as, for instance, past sales behaviour and management compensation. All financial assets and liabilities are initially meas- ured at fair value. The classification of financial instru- ments into different categories forms the basis for how each instrument is subsequently measured on the bal- ance sheet and how changes in its value are recog- nised. The classification of the financial instruments on Nordea Bank Abp’s balance sheet into the different categories under IFRS 9 is presented in the table “Classification of financial instruments” in Note P3.3 “Classification and measurement”. Amortised cost Financial assets and liabilities measured at amortised cost are initially recognised on the balance sheet at fair value, including transaction costs. Subsequent to initial recognition, the instruments within this category are measured at amortised cost. In an amortised cost meas- urement, the difference between acquisition cost and redemption value is amortised in the income statement over the remaining term using the effective interest rate method. Amortised cost is defined as the amount at which the financial asset or financial liability is meas- ured at initial recognition minus the principal repay- ments, plus or minus the cumulative amortisation of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance. The cumulative amortisation is calculated using the effective interest rate method. For more infor- mation about the effective interest rate method, see Note P2.2 “Net interest income”. For information about impairment under IFRS 9, see Note P3.7 “Loans”. Interest on assets and liabilities classified at amortised cost is generally recognised under “Interest income” and “Interest expense” in the income statement. Financial assets and financial liabilities at fair value through profit or loss Financial assets and financial liabilities at fair value through profit or loss are measured at fair value, excluding transaction costs. Changes in fair value are generally recognised directly in the income statement under “Net result from securities at fair value through profit or loss”. For estimation of fair value, see Note P3.4 “Fair value”. The category consists of two sub-categories: “Mandatorily measured at fair value through profit or loss” and “Designated at fair value through profit or loss (fair value option)”. The sub-category “Designated at fair value through profit or loss (fair value option)” is an option to measure financial assets and liabilities at fair value with the changes in fair value recognised in profit or loss. This option can be used if it eliminates or significantly reduces an accounting mismatch and for liabilities if they are managed on a fair value basis. Changes in credit risk related to liabilities designated at fair value through profit or loss are recognised in the fair value reserve unless it creates an accounting mismatch. Interest income and interest expense related to bal- ance sheet items held at fair value through profit or loss are generally classified as “Net result from securi- ties at fair value through profit or loss”. For more infor- mation, including exceptions from this general rule, see Note P2.4 “Total net result from items at fair value” and Note P2.2 “Net interest income”. ===== SIDA 321 ===== Nordea Annual Report 2025 320 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.3 Classifica tion and measurement, cont. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehen- sive income are initially measured at fair value plus transaction costs. Changes in fair value, except for inter- est, foreign exchange effects and impairment losses, are recognised in the fair value reserve in equity. Interest is recognised under “Interest income”, foreign exchange effects under “Net result from securities at fair value through profit or loss” and impairment losses under ”Net loan losses” in the income statement. When an instrument is disposed of, the fair value changes previ- ously accumulated in the fair value reserve are removed from equity and recognised in the income statement under “Net result from securities at fair value through fair value reserve”. For information about impairment under IFRS 9, see Note P3.7 “Loans”, and about estima- tion of fair value, see Note P3.4 “Fair value”. Hybrid (combined) financial instruments Hybrid (combined) financial instruments are contracts containing a host contract and an embedded deriva- tive instrument. Such combinations arise predomi- nantly from the issuance of structured debt instru- ments, such as issued index-linked bonds and loans with embedded collars and caps. For structured bonds issued by Markets, Nordea Bank Abp applies the fair value option, and the entire combined instrument, the host contract together with the embedded derivative, is measured at fair value through profit or loss and presented in “Debt securities in issue” on the balance sheet. Changes in fair value are recognised in the income statement under “Net result from securities at fair value through profit or loss” except for changes in Nordea Bank Abp’s own credit risk which is recognised in fair value reserve. Issued debt and equity instruments A financial instrument issued by Nordea Bank Abp is either classified as a financial liability or equity. Issued financial instruments are classified as financial liabili- ties if the contractual arrangements result in Nordea Bank Abp having a present obligation to either deliver cash or another financial asset or a variable number of equity instruments to the holder of the instrument. If this is not the case, the instrument is generally an equity instrument and classified as equity, net of trans- action costs. If issued financial instruments contain both liability and equity components, these are accounted for separately. Offsetting of financial assets and liabilities Nordea Bank Abp offsets financial assets and liabilities on the balance sheet if there is a legal right to offset and if the intent is to settle the items net or realise the asset and settle the liability simultaneously. The legal right to offset should exist both in the ordinary course of business and in case of the default, bankruptcy and insolvency of Nordea Bank Abp and its counterparties. Exchanged-traded derivatives are generally accounted for and settled on a daily basis when cash is paid or received, and the instrument is reset to market terms. Derivative assets, derivative liabilities, cash col- lateral receivables and cash collateral liabilities against central counterparty clearing houses are set off on the balance sheet if the assets and liabilities are settled in the same transaction currency and relate to the same central counterparty. Derivative assets, derivative liabil- ities, cash collateral receivables and cash collateral lia- bilities related to bilateral OTC derivative agreements are not set off on the balance sheet. In addition, loans and deposits related to repurchase and reverse repurchase agreements with central coun- terparty clearing houses are set off on the balance sheet if the assets and liabilities relate to the same cen- tral counterparty, are settled in the same currency and have the same maturity date. Loans and deposits related to repurchase and reverse repurchase agree- ments that are made in accordance with the Global Master Repurchase Agreement are set off on the bal- ance sheet if the assets and liabilities relate to the same counterparty, are settled in the same currency, have the same maturity date and are settled through the same settlement institution. The fact that financial instruments are accounted for on a gross basis on the balance sheet does not imply that the financial instruments are not subject to master netting agreements or similar arrangements. Generally, financial instruments (derivatives, repurchase agree- ments and securities lending agreements) are subject to master netting agreements, and Nordea Bank Abp is consequently able to benefit from netting any calcu- lations involving counterparty credit risk in the event of the default of its counterparties. For a description of counterparty credit risk, see also Note P10 “Risk and liquidity management”, section 3 “Counterparty credit risk“. Classification of financial instruments Assets 31 Dec 2025, EURm Amortised cost Financial assets at fair value through profit or loss mandatorily Fair value through other comprehensive income Total financial assets Cash and balances with central banks 36,338 – – 36,338 Loans to credit institutions 84,209 3,238 – 87,447 Loans to the public 132,343 36,124 – 168,467 Interest-bearing securities1 11,355 26,172 51,342 88,869 Shares – 18,280 – 18,280 Derivatives – 18,241 – 18,241 Fair value changes of hedged items in portfolio hedges of interest rate risk -56 – – -56 Other assets 748 4,001 – 4,749 Prepaid expenses and accrued income 171 – – 171 Total 265,108 106,056 51,342 422,506 1) Incl uding the balance sheet line item “Debt securities eligible for refinancing with central banks” amounting to EUR 78,724m. Liabilities 31 Dec 2025, EURm Amortised cost Financial liabilities at fair value through profit or loss Total financial liabilities Mandatorily Designated at fair value through profit or loss (fair value option) Deposits by credit institutions and central banks 18,936 23,091 – 42,027 Deposits and borrowings from the public 225,165 21,130 4,007 250,302 Debt securities in issue 77,060 – 1,931 78,991 Derivatives – 18,857 – 18,857 Fair value changes of hedged items in portfolio hedges of interest rate risk -567 – – -567 Other liabilities 2,551 9,304 – 11,855 Accrued expenses and prepaid income 22 1 – 23 Subordinated liabilities 8,810 – – 8,810 Total 331,977 72,383 5,938 410,298 ===== SIDA 322 ===== Nordea Annual Report 2025 321 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.3 Classification and measurement, cont. Classification of financial instruments Assets 31 Dec 2024, EURm Amortised cost Financial assets at fair value through profit or loss mandatorily Fair value through other comprehensive income Total financial assets Cash and balances with central banks 44,862 – – 44,862 Loans to credit institutions 73,163 1,976 – 75,139 Loans to the public 123,348 28,629 – 151,977 Interest-bearing securities1 9,502 26,114 45,363 80,979 Shares – 17,491 – 17,491 Derivatives – 26,054 – 26,054 Fair value changes of hedged items in portfolio hedges of interest rate risk -69 – – -69 Other assets 639 5,840 – 6,479 Prepaid expenses and accrued income 557 0 – 557 Total 252,002 106,104 45,363 403,469 1) Including the balance sheet line item “Debt securities eligible for refinancing with central banks” amounting to EUR 71,349m. Liabilities 31 Dec 2024, EURm Amortised cost Financial liabilities at fair value through profit or loss Total financial liabilities Mandatorily Designated at fair value through profit or loss (fair value option) Deposits by credit institutions and central banks 15,570 20,736 – 36,306 Deposits and borrowings from the public 218,759 17,030 4,317 240,106 Debt securities in issue 68,418 – 1,709 70,127 Derivatives – 25,927 – 25,927 Fair value changes of hedged items in portfolio hedges of interest rate risk -458 – – -458 Other liabilities 2,935 8,017 – 10,952 Accrued expenses and prepaid income 15 0 – 15 Subordinated liabilities 7,410 – – 7,410 Total 312,649 71,710 6,026 390,385 Amortised cost This category mainly consists of all loans (including those with embedded collars and caps) and deposits, except for reverse repurchase/repurchase agreements and securities borrowing/lending agreements in Markets. This category also includes interest-bearing securities in hold-to-collect portfolios in Group Treasury, subordinated liabilities and debt securities in issue, except for structured bonds issued by Markets. Nordea Bank Abp has issued financial assets with con- tractual terms that could change the amount of the con- tractual cash flows based on the occurrence (or non-oc- currence) of a contingent event that does not relate directly to changes in basic lending risk and costs (such as the time value of money or credit risk). This covers loans and bonds with terms linking contractual cash flows to the customers’ achievement of environmental, social and gov- ernance (ESG) targets, so called sustainability-linked loans and bonds. At the end of the year the carrying amount of the sustainability-linked loans recognised on the balance sheet amounted to EUR 9,091m (EUR 9,264m). Nordea Bank Abp has also issued financial liabilities in the form of Additional Tier 1 (AT1) instruments with con- tractual terms that could change the amount of the con- tractual cash flows based on the occurrence (or non-oc- currence) of a contingent event that does not relate directly to changes in basic lending risk and costs (such as the time value of money or credit risk). These AT1 instru- ments are measured at amortised cost and presented in the balance sheet line item “Subordinated liabilities”. The interest payments are fully discretionary and mandatorily cancelled under certain circumstances. For more informa- tion about the terms of these AT1 instruments, see Note P3.14 “Subordinated liabilities”. For more information about the risk associated with sustainability-linked loans see section 2.1 “Credit risk defi- nition and identification” in Note G11 “Risk and liquidity management”. Mandatorily measured at fair value through profit or loss The sub-category “Mandatorily measured at fair value through profit or loss” mainly contains all assets and trad- ing liabilities in Markets, interest-bearing securities in the liquidity buffer, derivatives, shares and financial assets in pooled schemes. Deposits in pooled schemes are contracts with customers where most or all of the risk is borne by the policyholders. The deposits are invested in different types of financial assets on behalf of customers. Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income mainly consist of the interest-bearing securities in the liquidity buffer. Financial liabilities designated at fair value through profit or loss (fair value option) Nordea Bank Abp applies the fair value option to struc- tured bonds issued by Markets, EUR 1,931m (EUR 1,709m), as these hybrid instruments, such as issued index-linked bonds, include embedded derivatives not closely related to the host contract. The host contract together with the embedded derivative is measured at fair value through profit or loss and presented in “Debt securities in issue” on the balance sheet. The change in the fair value of these issued structured bonds is recognised in the income state- ment under “Net result from securities at fair value through profit or loss” except for the changes in own credit risk, which are recognised in equity. Nordea Bank Abp calculates the change in its own credit spread as the change in its total funding spread, thus assuming a con- stant issuance premium on all issues over time. The change in the credit spread is estimated by comparing the value of the trades using the initial funding spread on the issuance date and the actual funding spread on the reporting date. This model is assessed to provide the best estimate of the impact of own credit risk. Deposits in pooled schemes, EUR 4,007m (EUR 4,318m), are designated at fair value through profit or loss as they are managed at fair value. The value of these deposits is directly linked to the fair value of the underlying assets, and changes in own credit risk consequently have no net impact. ===== SIDA 323 ===== Nordea Annual Report 2025 322 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.3 Classification and measurement, cont. Financial liabilities designated at fair value through profit or loss 31 Dec 2025, EURm Liabilities for which changes in credit risk are presented in fair value reserve Liabilities for which changes in credit risk are presented in profit or loss Total Carrying amount at end of year 1,931 4,007 5,938 Amount to be paid at maturity 1,891 4,007 5,898 Changes in fair value due to changes in own credit risk, during the year 2 – 2 Changes in fair value due to changes in own credit risk, accumulated -3 – -3 31 Dec 2024, EURm Liabilities for which changes in credit risk are presented in fair value reserve Liabilities for which changes in credit risk are presented in profit or loss Total Carrying amount at end of year 1,709 4,318 6,027 Amount to be paid at maturity 1,697 4,318 6,015 Changes in fair value due to changes in own credit risk, during the year -8 – -8 Changes in fair value due to changes in own credit risk, accumulated -4 – -4 P3.4 Fair value Accounting policies Fair value is defined as the price that at the meas- urement date would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value meas- urement assumes that the transaction takes place under current market conditions in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous mar- ket for the asset or liability. The existence of published price quotations in an active market is the best evidence of fair value and when they exist, they are used to measure financial assets and financial liabilities. An active market for the asset or liability is a market in which transac- tions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The absolute level of liquidity and volume required for a market to be considered active varies depending on the class of instruments. The trade frequency and volume are monitored regularly in order to assess if markets are active or not active. If quoted prices for a financial instrument fail to represent actual and regularly occurring mar- ket transactions or if quoted prices are not available, fair value is established by using an appropriate val- uation technique. The adequacy of the valuation technique, including an assessment of whether to use quoted prices or theoretical prices, is monitored on a regular basis. Valuation techniques can range from a simple dis- counted cash flow analysis to complex option pric- ing models. Valuation techniques are designed to apply observable market prices and rates as input whenever possible but can also make use of unob- servable model parameters. The adequacy of the valuation technique is assessed by measuring its ability to match market prices. This is done by com- paring calculated prices with relevant benchmark data, e.g. quoted prices from exchanges, the coun- terparty’s valuations, price data from consensus ser- vices etc. For financial instruments whose fair value is esti- mated by a valuation technique, it is investigated whether the variables used are predominantly based on data from observable markets. Nordea Bank Abp considers data from observable markets to be data that can be collected from generally available exter- nal sources and which is deemed to represent realis- tic market prices. If unobservable data has a signifi- cant impact on the valuation, the instrument cannot be recognised initially at the fair value estimated by the valuation technique and any upfront gains are thereby deferred and amortised through the income statement over the contractual life of the instrument. The deferred upfront gains are subsequently released to income if the unobservable data becomes observable. Fair value measurements of assets and liabilities are categorised under the three levels of the IFRS fair value hierarchy. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The categorisation of these instruments is based on the lowest level input that is significant to the fair value measurement in its entirety. Level 1 in the fair value hierarchy consists of assets and liabilities valued using unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 in the fair value hierarchy consists of assets and liabilities where directly quoted market prices are not available in active markets. The fair values are based on quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active. Alternatively, the fair values are estimated using valuation techniques or valuation models based on market prices or inputs prevailing at the balance sheet date and where unobservable inputs have not had a significant impact on the fair values. Level 3 in the fair value hierarchy consists of assets and liabilities for which fair values cannot be obtained directly from quoted market prices or indi- rectly using valuation techniques or models sup- ported by observable market prices or rates. ===== SIDA 324 ===== Nordea Annual Report 2025 323 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.4 Fair value, cont. Fair value of financial assets and liabilities EURm 31 Dec 2025 31 Dec 2024 Financial assets Carrying amount Fair value Carrying amount Fair value Cash and balances with central banks 36,338 36,338 44,862 44,862 Loans1 255,858 256,671 227,047 227,991 Interest-bearing securities2 88,869 88,820 80,979 80,941 Shares 18,280 18,280 17,491 17,491 Derivatives 18,241 18,241 26,054 26,054 Other assets 4,749 4,749 6,479 6,479 Prepaid expenses and accrued income 171 171 557 557 Total 422,506 423,271 403,469 404,375 EURm 31 Dec 2025 31 Dec 2024 Financial liabilities Carrying amount Fair value Carrying amount Fair value Deposits and debt securities in issue3 379,563 380,343 353,491 354,083 Derivatives 18,857 18,857 25,927 25,927 Other liabilities 11,855 11,855 10,952 10,952 Accrued expenses and prepaid income 23 23 15 15 Total 410,298 411,078 390,385 390,977 1) Consists of the balance sheet line items “Loans to the public”, “Loans to credit institutions” and “Fair value changes of hedged items in portfolio hedges of interest rate risk”. 2) Including the balance sheet line item “Debt securities eligible for refinancing with central banks” amounting to EUR 78,724m (EUR 71,349m). 3) Consists of the balance sheet line items “Deposits and borrowings from the public”, “Deposits by credit institutions and central banks “, “Debt securities in issue” and “Subordinated liabilities”. For non-maturing deposits fair value equals the nominal amount, whereas the carrying amount also includes the revaluation for the hedged items presented on the balance sheet row “Fair value of hedged items in portfolio hedges of intrest rate risk”. Fair value of items measured at fair value on the balance sheet Determination of fair value For information about determination of the fair value of items measured at fair value on the balance sheet, see the section “Determination of the fair value of items measured at fair value on the balance sheet” in the Group’s Note G3.4 “Fair value”. However, the section concerning loans and issued debt securities in the subsidiary Nordea Kredit Realkredit aktieselskab is not applicable to Nordea Bank Abp. For information about the valuation of items measured at fair value on the balance sheet, see the section “Accounting policies“ in this note and the section “Determination of the fair value” in the Group’s Note G3.4 “Fair value”. For information about the valuation of items not measured at fair value on the balance sheet, see the section “Financial assets and liabilities not held at fair value on the balance sheet” in the Group’s Note G3.4 “Fair value”. Financial assets and liabilities held at fair value on the balance sheet Categorisation in the fair value hierarchy 31 Dec 2025, EURm Quoted prices in active markets for the same instrument (Level 1) Valuation technique using observable data (Level 2) Valuation technique using unobservable data (Level 3) Total Assets at fair value on the balance sheet1 Loans to credit institutions – 3,238 – 3,238 Loans to the public – 36,124 – 36,124 Interest-bearing securities2 22,821 50,789 3,904 77,514 Shares 16,848 79 1,353 18,280 Derivatives 71 16,813 1,357 18,241 Other assets 20 3,981 – 4,001 Total 39,760 111,024 6,614 157,398 Liabilities at fair value on the balance sheet1 Deposits by credit institutions – 23,091 – 23,091 Deposits and borrowings from the public – 25,137 – 25,137 Debt securities in issue – 279 1,652 1,931 Derivatives 202 17,585 1,070 18,857 Other liabilities 2,447 6,693 164 9,304 Total 2,649 72,785 2,886 78,320 1) All items are measured at fair value on a recurring basis at the end of each reporting period. 2) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. 31 Dec 2024, EURm Quoted prices in active markets for the same instrument (Level 1) Valuation technique using observable data (Level 2) Valuation technique using unobservable data (Level 3) Total Assets at fair value on the balance sheet1 Loans to credit institutions – 1,976 – 1,976 Loans to the public – 28,629 – 28,629 Interest-bearing securities2 24,787 45,518 1,172 71,477 Shares 15,972 96 1,423 17,491 Derivatives 55 25,038 961 26,054 Other assets 15 5,825 – 5,840 Total 40,830 107,081 3,556 151,467 Liabilities at fair value on the balance sheet1 Deposits by credit institutions – 20,735 – 20,735 Deposits and borrowings from the public – 21,347 – 21,347 Debt securities in issue 1 356 1,352 1,709 Derivatives 118 25,219 590 25,927 Other liabilities 1,153 6,621 243 8,017 Total 1,272 74,279 2,185 77,736 1) All items are measured at fair value on a recurring basis at the end of each reporting period. 2) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. ===== SIDA 325 ===== Nordea Annual Report 2025 324 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.4 Fair value, cont. Transfers between Levels 1 and 2 During the year Nordea Bank Abp transferred items recog- nised in the line item “Interest-bearing securities” (includ- ing financial instruments pledged as collateral) of EUR 2,632m (EUR 1,682m) from Level 1 to Level 2 and of EUR 1,795m (EUR 717m) from Level 2 to Level 1 in the fair value hierarchy. Nordea Bank Abp also transferred items recog- nised in the line item “Other liabilities” of EUR 231m (EUR 150m) from Level 1 to Level 2 and of EUR 134m (EUR 342m) from Level 2 to Level 1. The transfer of “Interest- bearing securities” from Level 1 to Level 2 was mainly due to a reassessment of trading activity. Other transfers from Level 1 to Level 2 were due to the instruments ceasing to be actively traded during the year, which meant that fair values were obtained using valuation techniques with observable market inputs. The transfers from Level 2 to Level 1 were due to the instruments again being actively traded during the year, which meant that reliable quoted prices were obtained in the market. Transfers between levels are considered to have occurred at the end of the year. Movements in Level 3 Unrealised gains and losses relate to assets and liabilities held at the end of the year. The transfers out of Level 3 were due to observable market data becoming available. The transfers into Level 3 were due to observable market data no longer being available. Transfers between levels are considered to have occurred at the end of the year. Fair value gains and losses in the income statement during the year are included in “Net result from securities at fair value through profit or loss” (see Note P2.4 “Total net result from items at fair value”). Assets and liabilities related to derivatives are presented net. Movements in Level 3 2025, EURm 1 Jan 2025 Adjustments to the opening balance Fair value gains/losses recognised in the income statement during the year Recognised in fair value reserve Purchases/ issues Sales Settle- ments Transfers into Level 3 Transfers out of Level 3 Reclassifi- cation Translation differences 31 Dec 2025Realised Unrealised Loans to the public – – – – – – – – – – – – – Interest-bearing securities 1,172 – 7 119 – 353 -177 -7 3,127 -689 – -1 3,904 Shares 1,423 – 3 49 – 78 -203 0 1 -2 – 4 1,353 Derivatives (net) 371 – 79 -339 – – – 79 227 29 – 0 288 Other assets – – – – – – – – – – – – – Debt securities in issue 1,352 – -2 -59 -1 564 – -216 17 -2 – – 1,652 Other liabilities 243 -158 – -14 – 119 -36 – 11 -1 – -0 164 2024, EURm 1 Jan 2024 Adjustments to the opening balance Fair value gains/losses recognised in the income statement during the year Recognised in fair value reserve Purchases/ issues Sales Settle- ments Transfers into Level 3 Transfers out of Level 3 Reclassifi- cation Translation differences 31 Dec 2024Realised Unrealised Loans to the public 2 – – – – 23 – -25 – – – – – Interest-bearing securities 542 – -7 -126 – 547 -76 -18 412 -101 – -1 1,172 Shares 1,313 – 10 112 – 124 -150 -10 3 – -11 32 1,423 Derivatives (net) 176 – -2 193 – – – 2 26 -24 – -0 371 Other assets 1 – – – – – – -1 – – – – – Debt securities in issue 1,389 – 65 -193 5 505 – -417 – -2 – – 1,352 Other liabilities 145 – – 46 – 3 -118 – 167 – – – 243 ===== SIDA 326 ===== P3.4 F air value, cont. Nordea Annual Report 2025 325 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other The valuation process for Level 3 fair value measurements For information about the valuation process for fair value measurements, see the section “The valuation process for fair value measurements” in the Group’s Note G3.4 “Fair value”. Valuation techniques and inputs used in fair value measurements of financial instruments in Level 3 31 Dec 2025, EURm Fair value Valuation techniques Unobservable input Range of fair value Interest-bearing securities Public bodies 2 Discounted cash flows Credit spread 0/0 Mortgage and other credit institutions 3,697 Discounted cash flows Credit spread -370/370 Corporates1 205 Discounted cash flows Credit spread -20/20 Total 3,904 Shares Unlisted shares 64 Net asset value2 -6/6 Private equity funds 874 Net asset value2 -87/87 Hedge funds 0 Net asset value2 0/0 Credit funds 397 Net asset value/market consensus2 -40/40 Other funds 10 Net asset value/fund prices2 -1/1 Other 8 – -1/1 Total 1,353 Derivatives Interest rate derivatives 203 Option model Correlations, Volatilities -8/8 Equity derivatives -19 Option model Correlations, Volatilities, Dividend -7/3 Foreign exchange derivatives 132 Option model Correlations, Volatilities -3/3 Credit derivatives -28 Credit derivative model Correlations, Volatilities, Dividend -3/3 Other 0 Option model Correlations, Volatilities -0/0 Total 288 Debt securities in issue Issued structured bonds 1,652 Credit derivative model Correlations, Recovery rates, Volatilities -8/8 Total 1,652 Other, net Other assets and other liabilities, net 164 -16/16 Total 164 1) Of which EUR 150m is pric ed at a credit spread (the difference between the discount rate and XIBOR) of 1.45% and a reasonable change in this credit spread would not affect the fair value due to callability features. 2) F air values are based on prices and net asset values provided by external suppliers/custodians. The prices are fixed by the suppliers/custodians on the basis of the perfor - mance of the assets underlying the investments. For private equity funds, the dominant measurement methodology used by the suppliers/custodians is consistent with the International Private Equity and Venture Capital Valuation (IPEV) Guidelines issued by Invest Europe (formerly EVCA). The carrying amounts are in a range of 1% to 100% compared with the values received from suppliers/custodians. Valuation techniques and inputs used in fair value measurements of financial instruments in Level 3, cont. 31 Dec 2024, EURm Fair value Valuation techniques Unobservable input Range of fair value Interest-bearing securities Public bodies 13 Discounted cash flows Credit spread -1/1 Mortgage and other credit institutions 779 Discounted cash flows Credit spread -78/78 Corporates1 380 Discounted cash flows Credit spread -38/38 Total 1,172 Shares Unlisted shares 87 Net asset value2 -9/9 Private equity funds 874 Net asset value2 -87/87 Hedge funds 0 Net asset value2 -0/0 Credit funds 446 Net asset value/market consensus2 -45/45 Other funds 9 Net asset value/fund prices2 -1/1 Other 7 – -1/1 Total 1,423 Derivatives Interest rate derivatives 188 Option model Correlations, Volatilities -9/11 Equity derivatives 12 Option model Correlations, Volatilities, Dividend -6/3 Foreign exchange derivatives 144 Option model Correlations, Volatilities -1/1 Credit derivatives 27 Credit derivative model Correlations, Volatilities, Dividend -9/10 Other 0 Option model Correlations, Volatilities -0/0 Total 371 Debt securities in issue Issued structured bonds 1,352 Credit derivative model Correlations, Recovery rates, Volatilities -7/7 Total 1,352 Other, net Other assets and other liabilities, net 243 -24/24 Total 243 1) Of which EUR 35 1m is priced at a credit spread (the difference between the discount rate and XIBOR) of 1.45% and a reasonable change in this credit spread would not affect the fair value due to callability features. 2) F air values are based on prices and net asset values provided by external suppliers/custodians. The prices are fixed by the suppliers/custodians on the basis of the perfor - mance of the assets underlying the investments. For private equity funds, the dominant measurement methodology used by the suppliers/custodians is consistent with the International Private Equity and Venture Capital Valuation (IPEV) Guidelines issued by Invest Europe (formerly EVCA). The carrying amounts are in a range of 1% to 100% compared with the values received from suppliers/custodians. ===== SIDA 327 ===== P3.4 Fair value, cont. Nordea Annual Report 2025 326 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other The tables above show, for each class of assets and liabili- ties categorised in Level 3, the fair value, the valuation techniques used to estimate the fair value, significant unobservable inputs used in the valuation techniques and, for financial assets and liabilities, the fair value sensitivity to changes in key assumptions. The column “Range of fair value” in the tables above shows the sensitivity of the fair value of Level 3 financial instruments to changes in key assumptions. In case the exposure to an unobservable parameter is offset across different instruments, only the net impact is disclosed in the table. The range disclosed is likely to be greater than the true uncertainty in determining the fair value of these instruments as all unobservable parameters are in practice unlikely to be simultaneously at the extremes of their ranges of reasonably possible alternatives. The disclosure is neither predictive nor indicative of future movements in fair value. The reported sensitivity (range) of the fair value of derivatives follows the same methodologies as applied to the reporting of the model risk and market price uncer- tainty additional valuation adjustments (AVAs) as defined in Commission Delegated Regulation (EU) No 2016/101 of 26 October 2015 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for prudent valuation under Article 105(14). In order to calculate the sensitivity (range) of the fair value of shares and interest-bearing securities, the fair value is increased and decreased within a total range of 2–10 percentage points depending on the valuation uncer- tainty and underlying assumptions. Higher ranges are applied to instruments with more uncertain valuations rel- ative to actively traded instruments and underlying uncer- tainties in individual assumptions. Movement of deferred Day 1 profit For information about movement of deferred Day 1 profit, see the section “Movement of deferred Day 1 profit” in the Group’s Note G3.4 “Fair value”. The table to the right shows the aggregated difference yet to be recognised in the income statement at the begin- ning and end of the period. The table also shows reconcili- ation of how this aggregated difference changed during the year. Deferred Day 1 profit – derivatives, net EURm 2025 2024 Amount at beginning of year 70 73 Deferred profit/loss on new transactions 44 42 Recognised in the income statement during the year1 -44 -45 Amount at end of year 70 70 1) Of which EUR -4m (EUR -5m) due to transfers of derivatives from Level 3 to Level 2. Financial assets and liabilities not held at fair value on the balance sheet EURm 31 Dec 2025 31 Dec 2024 Level in fair value hierarchy4 Carrying amount Fair value Carrying amount Fair value Assets not held at fair value on the balance sheet Cash and balances with central banks 36,338 36,338 44,862 44,862 1 Loans1 216,496 217,309 196,442 197,386 3 Interest-bearing securities2 11,355 11,306 9,502 9,464 2, 3 Other assets 748 748 639 639 3 Prepaid expenses and accrued income 171 171 557 557 3 Total 265,108 265,873 252,002 252,908 Liabilities not held at fair value on the balance sheet Deposits and debt securities in issue3 329,404 330,184 309,699 310,291 3 Other liabilities 2,551 2,551 2,935 2,935 3 Accrued expenses and prepaid income 23 23 15 15 3 Total 331,978 332,758 312,649 313,241 1) Consists of the balance sheet line items “Loans to the public”, “Loans to credit institutions” and “Fair value changes of hedged items in portfolio hedges of interest rate risk”. 2) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. 3) Consists of the balance sheet line item “Loans to the public” and “Loans to the credit institutions”. For non-maturing deposits fair value equals the nominal amount, whereas the carrying amount also includes the revaluation for the hedged items presented on the balance sheet row “Fair value of hedged items in portfolio hedges of intrest rate risk”. 4) Covers both 31 December 2025 and 31 December 2024. For information about financial assets and liabilities not held at fair value on the balance sheet, see the section “Financial assets and liabilities not held at fair value on the balance sheet” in the Group’s Note G3.4 “Fair value”. However, the fair value of the interest-bearing securities of Nordea Bank Abp is EUR 11,306m (EUR 9,464m), of which EUR 1,270m (EUR 22m) is categorised in Level 2 and EUR 6,451m (EUR 9,443m) in Level 3. ===== SIDA 328 =====