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Årsredovisning 2025
Nordea Annual Report 2025 327 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.5 Hedge ac counting Accounting policies When a hedging relationship meets the specified hedge accounting criteria set out in IAS 39, Nordea Bank Abp applies two types of hedge accounting: • fair value hedge accounting • cash flow hedge accounting. Nordea Bank Abp has chosen, as a policy choice permitted under IFRS 9, to continue to apply hedge accounting in accordance with the carve-out version of IAS 39. Under the EU carve-out version of IAS 39, fair value macro hedge accounting may for instance, in comparison with IAS 39 as issued by the IASB, be applied to on-demand (core) deposits, and hedge ineffectiveness in a hedge of assets with prepay- ment options is only recognised when the revised estimate of the amount of cash flows falls below the designated bottom layer. The application of hedge accounting requires the hedge to be highly effective. A hedge is regarded as highly effective if, at inception and throughout its life, changes in the fair value of the hedged item, as regards the hedged risk, can be expected to be essentially offset by changes in the fair value of the hedging instrument. The result should be within a range of 80–125%. Transactions that are entered into in accordance with Nordea Bank Abp’s hedging objectives but do not qualify for hedge accounting are economic hedge relationships. Fair value hedge accounting Fair value hedge accounting is applied when deriva- tives are hedging changes in the fair value of a rec- ognised asset or liability attributable to a specific risk. Fair value hedge accounting can be performed at both micro level (single assets/liabilities or closed portfolios of assets/liabilities where one or more hedged items are hedged using one or more hedg- ing instruments) and macro level (open portfolios where groups of items are hedged using multiple hedging instruments). Changes in the fair value of derivatives (hedging instruments), as well as changes in the value of the hedged item attributable to the risks being hedged, recognised in the income statement under “Net result from securities at fair value through profit or loss”. Given that the hedge is effective, the change in the fair value of the hedged item will be offset by the change in the fair value of the hedging instrument. The changes in the fair value of the hedged item, attributable to the risks being hedged with the derivative instrument, are reflected in an adjustment to the carrying amount of the hedged item, which is also recognised in the income statement. The fair value changes of the hedged items held at amor- tised cost in hedges of interest rate risks in macro hedges are reported separately in the balance sheet item “Fair value changes of hedged items in portfo- lio hedges of interest rate risk”. Any ineffectiveness is recognised in the income statement under the item “Net result from securities at fair value through profit or loss”. If the hedging relationship does not meet the hedge accounting requirements, hedge accounting is discontinued. The hedging instrument is measured at fair value through profit or loss and the change in the fair value of the hedged item, up to the point when the hedge relationship is terminated, is amortised to the income statement on a straight-line basis over the remaining maturity of the hedged item. Nordea Bank Abp applies fair value hedge accounting to the foreign exchange risk in its invest- ments in foreign operations and internal long-term loans to foreign operations for which settlement is neither planned nor likely to occur in the future. Exchange differences arising on these internal long- term loans are recognised in equity and reclassified from equity to profit or loss on disposal of the investment. Cash flow hedge accounting Cash flow hedge accounting is applied when hedg- ing the exposure to variability in future cash flows. The portion of the gain or loss on the hedging instrument, determined to be an effective hedge, is recognised in equity and accumulated in the cash flow hedge reserve in equity. The ineffective portion of the gain or loss on the hedging instrument is recyled in the item “Net result from securities ar fair value through profit or loss” in the income state- ment. The hedge is considered to be ineffective to the extent that the cumulative change in fair value from the inception of the hedge is larger for the hedging instrument than for the hedged item. Gains or losses on hedging instruments recog- nised in the cash flow hedge reserve in equity are recycled and recognised in the income statement in the same period as the hedged item affects profit or loss, normally in the period in which interest income or interest expense is recognised. A hedged item in a cash flow hedge can be highly probable cash flows from recognised assets or liabil- ities or from future assets or liabilities. Derivatives used as hedging instruments are always measured at fair value. If the hedging relationship does not meet the hedge accounting requirements, hedge accounting is discontinued. Changes in the unrealised value of the hedging instrument will prospectively from the last time it was proven effective be accounted for in the income statement. The cumulative gain or loss on the hedging instrument that has been recognised in the cash flow hedge reserve in equity from the period when the hedge was effective is reclassified from equity to “Net result from securities at fair value through profit or loss” in the income statement if the expected transaction is no longer expected to occur. If the expected transaction is no longer highly probable but is still expected to occur, the cumula- tive gain or loss on the hedging instrument that has been recognised in equity from the period when the hedge was effective will remain in equity until the transaction occurs or is no longer expected to occur. Derivatives used for hedge accounting 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Fair value hedges1 1,223 2,074 116,182 Cash flow hedges1 783 539 33,097 Total derivatives 2,006 2,613 149,279 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Fair value hedges1 1,406 2,360 128,874 Cash flow hedges1 2,241 70 33,105 Total derivatives 3,647 2,430 161,979 1) Some cr oss-currency interest rate swaps are used as both fair value hedges and cash flow hedges. The nominal amounts of these instruments have been split between the lines “Fair value hedges” and “Cash flow hedges” in the table above based on the relative fair value of these hedging instruments. As at 31 December 2025 the total nominal amount of cross-currency interest rate swaps amounted to EUR 17,677m (EUR 19,095m). The table above shows the fair value of derivatives used for hedge accounting together with their nominal amounts. The nominal amounts indicate the volume of transactions outstanding at year end and are neither indic- ative of market risk nor credit risk. The fair value and nom- inal amount of derivatives in this note represent deriva- tives before offsetting between assets and liabilities on the balance sheet (gross amount) as the gross amount better reflects Nordea Bank Abp’s exposure in relation to the hedged risk. Risk management For more information on risk management, see the section “Risk management” in the Group’s Note G3.6 “Hedge accounting”. As part of its risk management policy, Nordea Bank Abp has identified a series of risk categories with corresponding hedging strategies using derivative instru- ments, as set out in section 4 “Market risk” in the Group’s Note G11 “Risk and liquidity management”. ===== SIDA 329 ===== Nordea Annual Report 2025 328 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.5 Hedge accounting, cont. Interest rate risk For more information on interest rate risk, see the section “Interest rate risk”, sub-sections “Fair value hedges” and “Cash flow hedges” in the Group’s Note G3.6 “Hedge accounting”. Fair value hedges The table below presents the accumulated fair value adjustments arising from continuing and discontinued hedging relationships. Hedged items EURm Interest rate risk 2025 Interest rate risk 2024 Carrying amount of hedged assets/liabilities Of which accumulated amount of fair value hedge adjustment3 Carrying amount of hedged assets/liabilities Of which accumulated amount of fair value hedge adjustment3 Fair value hedges – micro level Interest-bearing securities1 26,220 0 25,566 0 Assets 26,220 0 25,566 0 Debt securities in issue 22,154 -367 25,958 -502 Subordinated liabilities 7,190 -170 6,350 -328 Liabilities 29,344 -537 31,478 -830 EURm Interest rate risk 2025 Interest rate risk 2024 Carrying amount of hedged assets/liabilities Of which accumulated amount of fair value hedge adjustment2,3 Carrying amount of hedged assets/liabilities Of which accumulated amount of fair value hedge adjustment2,3 Fair value hedges – macro level Loans to the public 10,102 – 27,184 – Assets 10,102 -56 27,184 -69 Deposits by credit institutions 2,948 – 3,071 – Deposits and borrowings from the public 36,193 – 31,145 – Liabilities 39,141 -567 34,216 -458 1) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. 2) Accumulated fair value adjustment for macro hedges is presented in the line item “Fair value changes of hedged items in portfolio hedges of interest rate risk“ on the balance sheet. 3) Of which EUR 26m (EUR 35m) is related to discontinued hedges of interest rate risk. The following table provides information about the hedging instruments. Hedging instruments 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Fair value hedges Interest rate risk 1,007 1,794 106,075 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Fair value hedges Interest rate risk 1,272 2,219 120,708 The table below presents the changes in the fair value of the hedging instruments and the changes in the value of hedged items used as the basis for recognising ineffective- ness. These changes are recognised in the line item “Net result from securities at fair value through profit or loss” in the income statement. Hedge ineffectiveness EURm Interest rate risk 2025 2024 Fair value hedges Changes in fair value of hedging instruments 172 408 Changes in value of hedged items used as basis for recognising hedge ineffectiveness -139 -411 Hedge ineffectiveness recognised in the income statement1 33 -3 1) Recognised in the line item “Net result from securities at fair value through profit or loss”. When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Cash flow hedges The table below provide information about the hedging instruments in hedges of interest rate risk, including the nominal amount and the fair value of the hedging instruments. Hedging instruments 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Cash flow hedges Interest rate risk – 0 725 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Cash flow hedges Interest rate risk – 0 1,298 The next table specifies changes in the fair value of hedg- ing instruments arising from continuing hedging relation- ships, irrespective of whether there has been a change in hedge designation during the year. The table also presents changes in the value of the hedged items used to measure hedge ineffectiveness sep- arately showing the effective and ineffective portions. Hedge ineffectiveness EURm Interest rate risk 2025 2024 Cash flow hedges Changes in fair value of hedging instruments -2 5 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 2 -5 Hedge ineffectiveness recognised in the income statement1 – – Hedging gains or losses recognised in fair value reserve -2 5 1) Recognised in the line item “Net result from securities at fair value through profit or loss”. When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Cash flow hedge reserve EURm Interest rate risk 2025 2024 Balance as at 1 Jan -1 -7 Cash flow hedges Valuation gains/losses -2 5 Tax on valuation gains/losses 0 -1 Transferred to the income statement 2 4 Tax on transfers to the income statement -0 -1 Through cash flow hedge reserve, net of tax 0 7 Balance as at 31 Dec -1 -1 - Of which relates to continuing hedges for which hedge accounting is applied -1 -1 - Of which relates to hedging relationships for which hedge accounting is no longer applied – – Average interest rate on instruments hedging interest rate risk The average interest rate on the fixed leg of instruments hedging interest rate risk as at 31 December 2025 was 2,50% (2,52%). ===== SIDA 330 ===== Nordea Annual Report 2025 329 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.5 Hedge accounting, cont. The maturity profile of Nordea Bank Abp’s hedging instruments used to hedge interest rate risk (both fair value and cash flow hedge accounting) is shown below: Maturity profile of the nominal amount of hedging instruments hedging interest rate risk EURm Payable on demand Maximum 3 months 3–12 months 1–5 years More than 5 years Total 31 Dec 2025 – 7,370 21,691 57,270 20,469 106,800 31 Dec 2024 – 16,578 28,780 56,950 19,699 122,007 Currency risk For more information on currency risk, see the section “Currency risk” in the Group’s Note G3.6 “Hedge account- ing”. The sub-section “Cash flow and net investment hedges” is not applicable to Nordea Bank Abp. The table below presents the accumulated fair value adjustments arising from continuing hedge relationships, irrespective of whether or not there has been a change in hedge designation during the year. Hedged items EURm Foreign exchange risk 2025 Foreign exchange risk 2024 Carrying amount of hedged assets Of which accumulated amount of fair value hedge adjustment Carrying amount of hedged assets Of which accumulated amount of fair value hedge adjustment Fair value hedges Investments in foreign operations 10,258 -564 7,980 -828 The tables below provide information about the hedging instruments in hedges of currency risks, including the nominal amount and the fair value of the hedging instruments. Hedging instruments 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Foreign exchange risk Fair value hedges 215 280 10,106 Cash flow hedges 783 539 32,372 Total derivatives used for hedge accounting 998 819 42,478 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Foreign exchange risk Fair value hedges 134 141 8,165 Cash flow hedges 2,241 70 31,807 Total derivatives used for hedge accounting 2,375 211 39,972 The table below specifies changes in the fair value of hedging instruments arising from continuing hedging rela- tionships, irrespective of whether there has been a change in hedge designation during the year. The table also pre- sents changes in the value of hedged item used to meas- ure hedge ineffectiveness, separately showing the effec- tive and ineffective portions. Hedge ineffectiveness EURm Foreign exchange risk 2025 2024 Fair value hedges Changes in fair value of hedging instruments -262 205 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 262 -205 Hedge ineffectiveness recognised in the income statement1 – – Cash flow hedges Changes in fair value of hedging instruments -2,453 1,860 Changes in value of hedged items used as basis for recognising hedge ineffectiveness 2,447 -1,860 Hedge ineffectiveness recognised in the income statement1 -5 – Hedging gains or losses recognised in fair value reserve -2,447 1,860 1) Recognised in the line item “Net result from securities at fair value through profit or loss”. When disclosing hedge ineffectiveness, valuation adjustments (CVA, DVA, FFVA) have not been considered as these are immaterial. Cash flow hedge reserve EURm Foreign exchange risk 2025 2024 Balance as at 1 Jan 112 89 Cash flow hedges Valuation gains/losses -2,447 1,860 Tax on valuation gains/losses 492 -377 Transferred to the income statement 2,363 -1,831 Tax on transfers to the income statement -475 371 Through cash flow hedge reserve, net of tax -67 23 Balance as at 31 Dec 45 112 - Of which relates to continuing hedges for which hedge accounting is applied 45 112 - Of which relates to hedging relationships for which hedge accounting is no longer applied – – The average forward exchange rates of instruments hedg- ing foreign exchange risk as at 31 December are presented in the table below. Average forward exchange rates of instruments hedging foreign exchange risk EUR NOK SEK USD 31 Dec 2025 11.05 10.60 1.14 31 Dec 2024 11.06 10.69 1.10 Maturity profile of the nominal amount of hedging instruments Instruments hedging foreign exchange risk, EURm Payable on demand Maximum 3 months 3–12 months 1–5 years More than 5 years Total 31 Dec 2025 – 14,313 13,885 12,898 1,383 42,479 31 Dec 2024 – 15,572 10,953 12,389 1,059 39,972 ===== SIDA 331 ===== Nordea Annual Report 2025 330 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.6 Cash and balanc es with central banks Accounting policies Cash comprises legal tender and bank notes in for- eign currencies. Balances with central banks consist of deposits in accounts with central banks and postal giro systems under government authority when the following conditions are fulfilled: • The central bank or the postal giro system is domi- ciled in the country where the institutions are established. • The balance on the account is readily available at any time. P3.7 Loans Accounting policies Loans are financial instruments with fixed or deter- minable payments that are not readily transferable without the consent of the debtor. Loans are classi- fied in accordance with the description in Note P3.3 “Classification and measurement”. Nordea Bank Abp’s accounting policies covering expected credit losses follow below. Additional information on credit risk on loans is disclosed in Note P10 “Risk and liquidity management”. Financial instruments classified as “Amortised cost” or “Fair value through other comprehensive income” are subject to impairment testing due to credit risk. This includes assets recognised on the balance sheet in “Cash and balances with central banks”, “Debt securities eligible for refinancing with central banks”, “Loans to credit institutions”, “Loans to the public” and “Interest-bearing securities”. These balance sheet line items include assets classi- fied as “Fair value through profit or loss”, which are not subject to impairment testing. See also Note P3.3 “Classification and measurement”. Off-balance sheet commitments, contingent lia- bilities and loan commitments are also subject to impairment testing. Recognition and presentation Amortised cost assets are recognised gross with an offsetting allowance for the expected credit losses if the loss is not regarded as final. The allowance account is netted against the loan balance on the face of the balance sheet, but the allowance account is disclosed separately in this note. Changes in the allowance account are recognised in the income statement and classified as “Net loan losses”. If the impairment loss is regarded as final, it is reported as a realised loss and the carrying amount of the loan and the related allowance for impair- ment loss are derecognised. An impairment loss is regarded as final when the obligor has filed for bankruptcy and the administrator has declared the financial outcome of the bankruptcy procedure, or when Nordea Bank Abp waives its claims either through a legally based or voluntary reconstruction, or when Nordea Bank Abp, for other reasons, deems it unlikely that the claim will be recovered. See also the section “Write-offs” on the following page. Provisions for off-balance sheet exposures are classified as “Provisions” on the balance sheet, with changes in provisions classified as “Net loan losses”. Assets classified as “Fair value through other comprehensive income” are recognised at fair value on the balance sheet. Impairment losses calculated in accordance with IFRS 9 are recognised in the income statement and classified as “Impairment of other financial assets”. Any fair value adjustments are recognised in equity. Impairment testing Nordea Bank Abp classifies all exposures into stages on an individual basis. Stage 1 includes assets where there has been no significant increase in credit risk since initial recognition. Stage 2 includes assets where there has been a significant increase in credit risk. Stage 3 (impaired loans) includes defaulted assets. Nordea Bank Abp monitors whether there are indicators of exposures being credit impaired (stage 3) by identifying events that have a detrimental impact on the estimated future cash flows. Nordea Bank Abp applies the same definition of default as the Capital Requirements Regulation. The definition of default applied by Nordea was last updated in 2024 in connection with the implementation of new retail internal ratings-based (IRB) models. More information on the identification of loss events can be found in the Group’s Note G11 “Risk and liquidity management”. Exposures without individually calcu- lated allowances are covered by the model-based impairment calculation. For significant exposures where a credit event has been identified, the exposure is tested for impairment on an individual basis. If the exposure is considered impaired, an individual provision is recognised. The carrying amount of the exposure is compared with the sum of the net present value of expected future cash flows. If the carrying amount is higher, the difference is recognised as an impairment loss. The expected cash flows include the fair value of collateral and other credit enhancements and are discounted at the original effective interest rate. The estimate is based on three different forward-looking scenarios that are probability weighted to derive the net present value. For insignificant exposures that have been individu- ally identified as credit impaired, the impairment loss is measured using the model described below but based on the fact that the exposures are already in default. Nordea Bank Abp uses the “low credit risk exemption” for retail exposures and non-retail expo- sures issued after transition to IFRS 9 on 1 January 2018. Such exposures with a 12-month probability of default (PD) below 0.3% are classified as stage 1. Model-based allowance calculation For exposures not impaired on an individual basis, a statistical model is used for calculating impairment losses. The provisions are calculated as the exposure at default (EAD) times the probability of default (PD) times the loss given default (LGD). For assets in stage 1 this calculation is only based on the coming 12 months, while for assets in stages 2 and 3 it is based on the expected lifetime of the assets. The provisions for exposures for which there has been no significant increase in credit risk since initial recognition are based on the 12-month expected loss (stage 1). The provisions for exposures for which there has been a significant increase in credit risk since initial recognition, but which are not credit impaired, are based on the lifetime expected losses (stage 2). This is also the case for the insignificant credit impaired exposures in stage 3. Nordea Bank Abp uses two different models to identify whether there has been a significant increase in credit risk or not. For non-retail assets held on transition to IFRS 9 on 1 January 2018, the change in internal rating and scoring data is used to determine whether there has been a significant increase in credit risk or not. Internal rating/scoring information is used to assess the risk of the customers and a deterioration in rating/scoring indicates an increase in the credit risk of the customer. Nordea Bank Abp has concluded that it is not possible to calculate the lifetime PD at origination without the use of hind- sight for assets already recognised on the balance sheet at transition. Changes to the lifetime PD are used as the trigger for non-retail assets recognised after transition and for retail assets recognised both before and after transition. For assets evaluated based on lifetime PD, Nordea Bank Abp uses a mix of absolute and relative changes in PD as the transfer criterion. • Retail customers with a relative increase in lifetime PD above 200% are transferred to stage 2. • Non-retail customers with an initial 12-month PD below 0.5%: • Exposures with a relative increase in lifetime PD above 150% and an absolute increase in 12-month PD above 20bp are transferred to stage 2. • Non-retail customers with an initial 12-month PD above or equal to 0.5%: • Exposures with a relative increase in lifetime PD above 150% or an absolute increase in 12-month PD above 400bp are transferred to stage 2. For non-retail assets recognised on the balance sheet before transition to IFRS 9, the change in rating/scor- ing notches is used as the stage transfer criterion. The number of notches is calibrated to match the signifi- cant increase in credit risk based on lifetime PD. In addition, Nordea Bank Abp applies the follow- ing backstops for transfers between stages: • Customers with forbearance measures and cus- ===== SIDA 332 ===== Nordea Annual Report 2025 331 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.7 Loans, cont. tomers with payments more than thirty days past due are also transferred to stage 2 unless already identified as credit impaired (stage 3). Exposures with forbearance measures will stay in stage 2 for a probation period of 24 months from when the measures were introduced. Once transferred back to stage 1, after the probation period, the exposures are treated as any other stage 1 exposure on the assessment of significant increase in credit risk. • Exposures more than 90 days past due are nor- mally classified as stage 3, but this classification will be rebutted if there is evidence that the cus- tomer is not in default. Such exposures are classi- fied as stage 2. • Non-retail exposures with a relative change in annualised lifetime PD exceeding 200% and with at least one rating grade of deterioration are trans- ferred to stage 2. • Retail exposures classified as high risk, i.e. with a PD above 5.83%, are transferred to stage 2. • Non-retail exposures classified as high-risk, i.e. with a rating grade of 2 or below, are transferred to stage 2. • Retail and Non-retail exposures with 12-month PD below 0.3% use a low credit risk exemption, which prevents movement to stage 2 from absolute or relative changes in PD. The exemption does not prevent stage movement from the other backstop triggers listed. When calculating provisions, including the staging assessment, the calculation is based on both histori- cal data and probability-weighted forward-looking information. Nordea Bank Abp applies three macro- economic scenarios to address the non-linearity in expected credit losses. The different scenarios are used to adjust the relevant parameters for calculat- ing expected losses and a probability-weighted average of the expected losses under each scenario is recognised as provisions. The model is based on data collected before the reporting date requiring Nordea Bank Abp to identify events that could affect the provisions after the data is sourced to the model calculation. Management evaluates these events and adjusts the provisions if deemed necessary. Write-offs A write-off is a derecognition of a loan or receivable from the balance sheet and a final realisation of a credit loss provision. When assets are considered uncollectible, they should be written off as soon as possible, regardless of whether the legal claim remains or not. A write-off can take place before legal actions against the borrower to recover the debt have been concluded in full. Although an uncollectible asset is removed or written off from the balance sheet, the customer remains legally obligated to pay the outstanding debt. When assess- ing the recoverability of non-performing loans and determining if write-offs are required, exposures with the following characteristics are in particular focus (the list is not exhaustive): • Exposures past due more than 90 days. If, following this assessment, an exposure or part of an expo- sure is deemed as unrecoverable, it is written off. • Exposures under insolvency procedures where the collateralisation of the exposure is low. • Exposures where legal expenses are expected to absorb the proceeds from the bankruptcy proce- dure and estimated recoveries are therefore expected to be low. • A partial write-off may be warranted where there is reasonable financial evidence to demonstrate an ina- bility of the borrower to repay the full amount, i.e. a significant level of debt which cannot be reasonably demonstrated to be recoverable following forbear- ance treatment and/or the execution of collateral. • Restructuring cases. Discount rate The discount rate used to measure impairment is the original effective interest rate for loans attached to an individual customer or, if applicable, to a group of loans. If considered appropriate, the discount rate can be based on a method that results in an impairment that is a reasonable approximation using the effective interest rate method as basis for the calculation. Restructured loans and modifications In this context a restructured loan is defined as a loan where Nordea Bank Abp has granted conces- sions to the obligor due to their financial difficulties and where such concessions have resulted in an impairment loss for Nordea Bank Abp. After restructing the loan is normally regarded as not impaired if it performs according to the new terms and conditions. In the event of recovery, the pay- ment is reported as recovery of loan losses. Modifications of the contractual cash flows of loans to customers in financial difficulties (forbear- ance) reduce the gross carrying amount of the loan. Normally this reduction is less than the existing pro- vision and no loss is recognised in the income state- ment due to modifications. If significant, the gross amounts (loan and allowance) are reduced. Assets taken over for protection of claims In a financial reconstruction the creditor may con- cede loans to the obligor and in exchange for this concession acquires an asset pledged for the con- ceded loans, shares issued by the obligor or other assets. Assets taken over for protection of claims are reported on the same balance sheet line as similar assets already held by Nordea Bank Abp. For exam- ple, a property taken over, not held for Nordea Bank Abp’s own use, is reported together with other investment properties. At initial recognition, all assets taken over for pro- tection of claims are recognised at fair value and the possible difference between the carrying amount of the loan and the fair value of the assets taken over is recognised in “Net loan losses”. The fair v alue of the asset on the date of recognition becomes its cost or amortised cost value, as applicable. In subsequent periods, assets taken over for protection of claims are valued in accordance with the valuation principles for the appropriate type of asset. Investment proper- ties are then measured at fair value. Financial assets that are foreclosed are generally classified in the cat- egory “Fair value through profit or loss” and meas- ured at fair value. Changes in fair value are recog- nised in the income statement under “Net result from securities trading and foreign exchange dealing”. Any change in value, after the initial recognition of the asset taken over, is presented in the income state- ment in line with the presentation policies for the appropriate asset. The line item “Net loan losses” in the income statement is, after the initial recognition of the asset taken over, consequently not affected by any subsequent remeasurement of the asset. Loans to credit institutions EURm 31 Dec 2025 31 Dec 2024 Central banks Payable on demand 4 4 Not payable on demand 6,840 4,071 Total 6,844 4,075 Other credit institutions Payable on demand 401 349 Not payable on demand 80,202 70,715 Total 80,603 71,064 Total loans to credit institutions 1 87,447 75,139 1) Including accrued interest of EUR 309m (EUR 333m). Loans to the public 1 EURm 31 Dec 2025 31 Dec 2024 Payable on demand 4,897 5,251 Not payable on demand 163,570 146,726 Total loans to the public2 168,467 151,977 1) For breakdowns by sector and industry, see Note P10 “Risk and liquidity management”. 2) Including accrued interest of 463m (EUR 497m). ===== SIDA 333 ===== Nordea Annual Report 2025 332 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.7 Loans, cont. Loans and impairment EURm 31 Dec 2025 31 Dec 2024 Loans measured at fair value 39,361 30,605 Loans measured at amortised cost, not credit-impaired (stages 1 and 2) 215,594 195,801 Credit-impaired loans (stage 3) 1,957 1,889 - of which servicing 913 877 - of which non-servicing 1,044 1,012 Loans before allowances 256,912 228,295 - of which credit institutions 87,449 75,144 Allowances for loans that are credit- impaired (stage 3) -753 -840 - of which servicing -341 -376 - of which non-servicing -412 -464 Allowances for loans that are not credit- impared (stages 1 and 2) -245 -339 Allowances 1 -998 -1,179 - of which credit institutions -2 -5 Loans, carrying amount 255,914 227,116 1) F or information on loan loss provisions on off-balance sheet items, see Note P5 “Provisions”. P3.8 Interest-bearing securities Accounting policies Instruments that are readily transferable and where the holder of the instrument receives the nominal amount at maturity are normally reported in the bal- ance sheet line item “Interest-bearing securities”. Instruments that cannot be transferred or sold without the consent of the holder of the instrument are nor- mally reported as loans, see Note P3.7 “Loans”. In repurchase transactions and in securities lending transactions, non-cash assets are transferred as collateral. For more information about accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet“, Note P3.2 “Transferred assets and obtained collateral“, Note P3.3 “Classification and measurement” and Note P3.4 “Fair value”. The tables include the breakdown of the balance sheet line items “Interest-bearing securities” and “Debt securi- ties eligible for refinancing with central banks” by type of security. Interest-bearing securities EURm 31 Dec 2025 - of which held for trading States, municipalities and other public bodies 20,093 3,676 Banks and other credit institutions 55,839 13,862 Other 12,937 2,577 Total1 88,869 20,115 EURm 31 Dec 2024 - of which held for trading States, municipalities and other public bodies 18,569 2,665 Banks and other credit institutions 50,530 11,939 Other 11,880 1,450 Total 1 80,979 16,054 1) Incl uding accrued interest of EUR 337m (EUR 321m). As at 31 December 2025 the securities that were publicly listed amounted to EUR 21,763 (EUR 24,787m). Subordinated securities amounted to EUR 180m (EUR 49m). Provisions for credit risks amounted to EUR 2m (EUR 2m). Debt securities eligible for refinancing with central banks EURm 31 Dec 2025 31 Dec 2024 Treasury bonds, notes and bills 8,302 7,668 Other bonds 70,422 63,681 Total 78,724 71,349 P3.9 Shares Accounting policies The balance sheet line item “Shares” includes equity instruments, i.e. contracts that evidence a residual inter- est in the assets of an entity after deducting all of its liabilities, including holdings in different funds such as a unit in an investment fund or private equity fund. However, investments in associated undertakings and joint ventures (see Note P8.2 “Investments in associ- ated undertakings and joint ventures”) and investments in group undertakings (see Note P8.1 “Investments in group undertakings”) not included in “Shares”. In repurchase transactions and in securities lend- ing transactions, non-cash assets are transferred as collateral. For more information about accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet“, Note P3.2 “Transferred assets and obtained collateral”, Note P3.3 “Classification and measurement” and Note P3.4 “Fair value”. Shares EURm 31 Dec 2025 - of which held for trading Shares 18,280 15,270 Total 18,280 15,270 EURm 31 Dec 2024 - of which held for trading Shares 17,493 14,267 Total 17,493 14,267 As at 31 December 2025 the shares that were publicly listed amounted to EUR 16,848m (EUR 15,973m). EUR 935m (EUR 382m) of the shares relate to credit institutions. Shares lent to other counterparties in the form of securities lending transactions amounted to EUR 1,910m (EUR 511m). Shares borrowed amounted to EUR 2,967m (EUR 4,359m) and are not recognised on the balance sheet and thus not included in the total amount presented in the table above. P3.10 Derivatives Accounting policies A derivative is a financial instrument or other con- tract with all three of the following characteristics: • Its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (so-called ‘underlying’). • It requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors. • It is settled at a future date. Contracts that fulfil the above requirements of being derivatives but where Nordea Bank Abp is to take delivery of a non-financial item for own use are not derivatives. All derivatives are recognised on the balance sheet and measur ed at fair value. Derivatives with a positive fair value, including any accrued interest, are recognised as assets in the line item “Derivatives” on the asset side. Derivatives with a negative fair value, including any accrued interest, are recognised as liabilities in the line item “Derivatives” on the liability side. Nordea Bank Abp incorporates credit valuation adjustments (CVAs) and debit valuation adjustments (DVAs) into derivative valuations as well as other val- uation adjustments (XVAs). CVAs and DVAs reflect the impact on fair value from the counterparty’s credit risk and Nordea Bank Abp’s own credit quality, respectively. For more information about the calcula- tion and other XVAs, see Note P3.4 “Fair value”. Realised and unrealised gains and losses from derivatives are recognised in the income statement under “Net result from securities at fair value ===== SIDA 334 ===== Nordea Annual Report 2025 333 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.10 Deriv atives, cont. through profit or loss”. For more information about accounting policies, see Note P3.4 “Fair value”. Nordea Bank Abp enters into derivatives for trad- ing and risk management purposes. Nordea Bank Abp may take positions with the expectation of prof- iting from favourable movements in prices, rates or indices. The trading portfolio is treated as trading risk for risk management purposes. Derivatives held for risk management purposes include hedges that meet the hedge accounting requirements and hedges that are economic hedges but do not meet the hedge accounting requirements. The table below shows the fair value of derivative financial instruments not used for hedge accounting together with their nominal amounts. The nominal amounts indicate the volume of transactions out- standing at year end and are neither indicative of market risk nor credit risk. The derivatives are divided into derivatives not used for hedge account- ing and derivatives used for hedge accounting. For more information about derivatives used for hedge accounting, see Note P3.5 “Hedge accounting”. The fair value and nominal amount of derivatives in this note represent derivatives before offsetting between assets and liabilities on the balance sheet (gross amount) as the gross amount better reflects Nordea Bank Abp’s exposure. Derivatives 31 Dec 2025, EURm Fair value Nominal amountPositive Negative Derivatives not used for hedge accounting 162,288 165,228 11,669,459 Derivatives used for hedge accounting 2,006 2,613 149,279 Gross amount 164,294 167,841 11,818,738 Derivatives offset on the balance sheet -146,053 -148,984 – Total derivatives 18,241 18,857 11,818,738 31 Dec 2024, EURm Fair value Nominal amountPositive Negative Derivatives not used for hedge accounting 136,442 138,292 8,062,543 Derivatives used for hedge accounting 3,647 2,430 161,979 Gross amount 140,089 140,722 8,224,522 Derivatives offset on the balance sheet - 114,035 -114,795 – Total derivatives 26,054 25,927 8,224,522 Derivatives not used for hedge accounting EURm 31 Dec 2025 31 Dec 2024 Fair value Nominal amount Fair value Nominal amountPositive Negative Positive Negative Interest rate derivatives Interest rate swaps 149,251 151,641 8,684,467 120,065 120,259 5,483,562 FRAs 428 444 1,551,754 919 938 1,327,480 Futures and forwards 6 5 131,154 5 6 120,899 Options 1,711 1,716 193,176 2,484 2,572 240,433 Total 151,396 153,806 10,560,551 123,473 123,775 7,172,374 Equity derivatives Equity swaps 265 467 29,705 442 270 31,677 Futures and forwards 2 9 421 3 1 901 Options 122 411 4,085 112 397 4,214 Other 0 21 0 – – – Total 389 908 34,211 557 668 36,792 Foreign exchange derivatives Currency and interest rate swaps 2,907 2,816 254,125 5,463 7,422 268,089 Currency forwards 2,222 2,361 442,143 3,849 3,408 388,347 Options 80 1 3,309 114 0 2,250 Total 5,209 5,178 699,577 9,426 10,830 658,686 Other derivatives Credit default swaps (CDS) 5,294 5,306 374,055 2,984 2,987 194,530 Commodity derivatives 0 26 1,039 0 9 136 Other derivatives – 4 26 2 23 25 Total 5,294 5,336 375,120 2,986 3,019 194,691 Total derivatives not used for hedge accounting 162,288 165,228 11,669,459 136,442 138,292 8,062,543 - o f which transactions between Nordea Bank Abp and group undertakings 626 822 103,945 848 943 98,499 P3.11 Deposits b y credit institutions and central banks Accounting policies Deposits by credit institutions include liabilities towards central banks, banks, credit market compa- nies, credit companies, finance companies and mort- gage institutions. Deposits are classified in accord- ance with Note P3.3 “Classification and measurement”. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet”, Note P3.2 “Transferred assets and obtained collateral” and Note P3.4 “Fair value”. Deposits by credit institutions and central banks EURm 31 Dec 2025 31 Dec 2024 Central banks Payable on demand 7,460 5,757 Total 7,460 5,757 Credit institutions Payable on demand 6,283 5,754 Not payable on demand 28,284 24,795 Total 34,567 30,549 Total deposits by credit institutions and central banks 1 42,027 36,306 1) Incl uding accrued interest of EUR 136m (EUR 131m). ===== SIDA 335 ===== Nordea Annual Report 2025 334 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.12 Deposits and borrowings from the public Accounting policies Deposits from the public are defined as funds in deposit accounts covered by the government deposit guarantee but also include amounts in excess of the individual amount limits. Borrowings are other liabilities to the public that are not in the form of debt securities. Deposits and borrowings are classified into the different categories of financial instruments defined in Note P3.3 “Classification and measurement”. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet”, Note P3.2 “Transferred assets and obtained collateral” and Note P3.4 “Fair value”. Deposits and borrowings from the public EURm 31 Dec 2025 31 Dec 2024 Deposits Payable on demand 176,167 181,574 Not payable on demand1 57,069 49,340 Total 233,236 230,914 Repurchase agreements Not payable on demand 17,066 9,192 Total 17,066 9,192 Total deposits and borrowings from the public2 250,302 240,106 1) Long-term savings accounts held by customers (PS accounts) amounted to EUR 6m (EUR 5m) as at 31 December 2025. Investments from long-term savings accounts held by customers amounted to EUR 111m (EUR 98m). 2) Including accrued interest of EUR 316m (EUR 368m). P3.13 Debt securities in issue Accounting policies Debt securities are instruments issued by Nordea Bank Abp that are readily transferable without the consent of Nordea Bank Abp. Debt securities are classified into different categories in accordance with Note P3.3 “Classification and measurement”. For hedged items in fair value hedges at micro level, the hedged risk is measured at fair value and presented in the line item “Fair value changes in micro hedges of interest rate risk” in the table below (for more information, see Note P3.5 “Hedge accounting”). For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet” and Note P3.4 “Fair value”. Bonds are transferable debt securities which are normally issued off an issuance programme. A bond’s term to matu- rity can range from about one month to several years. A bond is a debt obligation issued by the borrower to the investor or lender. The investor is normally entitled to a cash payment from the issuer on the maturity date. During the term to maturity, coupon payments are normally made at fixed intervals, but a bond can be issued as a zero- coupon debt instrument or be subject to other terms as agreed between the issuer and the investor. Bonds are often listed for trading on a stock exchange. There are sen- ior bonds and subordinated bonds. In the event that an issuer defaults, the issuer will be required to pay the inves- tors of senior bonds and meet all other creditor obliga- tions in full before the issuer can make any payments on the subordinated bonds. Bonds can be issued as secured or unsecured debt. For information on subordinated bonds, see Note P3.14 Subordinated liabilities. Certificates of deposit (CDs) are transferable debt secu- rities issued by the borrower to the investor who is entitled to a cash payment from the issuer on the maturity date. CDs are not issued off an issuance programme and are not listed on a stock exchange. CDs usually have maturities ranging from one week to three years or longer. CDs can be issued with coupon payments or without coupon pay- ments. CDs are issued as unsecured debt. Commercial paper (CP) is a transferable debt instru- ment and issued off an issuance programme. CP is issued with maturities ranging from overnight to about one year. CP is debt owed by the issuer to the investor who is enti- tled to a cash payment from the issuer on the maturity date. CP is normally issued as zero-coupon debt instru- ments with coupon payments or without coupon pay- ments during the maturity of the CP. Typically CP is not listed for trading on a stock exchange. CP is usually issued as unsecured debt. Negotiable European Union CP can be listed. Debt securities in issue EURm Carrying amount Nominal value 31 Dec 2025 31 Dec 2024 31 Dec 2025 31 Dec 2024 Certificates of deposit 38,220 29,714 38,412 30,285 Commercial paper 10,591 9,981 10,643 10,041 Bonds1 30,523 30,910 30,184 30,531 Other 24 24 24 25 Fair value changes in micro hedges of interest rate risk -367 -502 – – Total2 78,991 70,127 79,263 70,882 1) Including eligible liabilities of EUR 14,689m (EUR 14,696m) under the Finnish Act on the Resolution of Credit institutions and Investment Firm. 2) Including accrued interest of EUR 366m (EUR 444m). P3.14 Subordinated liabilities Accounting policies Subordinated liabilities are financial liabilities for which it has been contractually agreed that they are not to be repaid in the event of liquidation or bank- ruptcy until all obligations towards other creditors have been fulfilled. For more information on classification of instru- ments as a liability or equity instrument, see Note P9.1 “Equity”. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet” and Note P3.3 “Classification and measurement”. For hedged items in fair value hedges at micro level, the hedged risk is measured at fair value and presented in the line item “Fair value changes in micro hedges of interest rate risk” in the table below (for more information, see Note P3.5 “Hedge accounting”). Subordinated liabilities EURm 31 Dec 2025 31 Dec 2024 Additional Tier 1 4,367 3,436 Tier 2 4,613 4,302 Fair value changes in micro hedges of interest rate risk -170 -328 Total1 8,810 7,410 1) Including accrued interest of EUR 109m (EUR 104m). ===== SIDA 336 ===== Nordea Annual Report 2025 335 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P3.14 Subordinated liabilities, cont. The Additional Tier 1 conversion notes issued in 2019, 2021, 2024 and 2025 by Nordea Bank Abp automatically convert into an aggregated maximum number of 194,099,378, 121,802,679, 160,642,952 and 133,314,074, respectively, newly issued Nordea shares if the CET1 ratio of either Nordea Bank Abp on a solo basis or the Nordea Group on a consolidated basis falls below 5.125%. The notes will be convertible into shares at a price not exceeding a specific nominal amount applicable to the respective notes, subject to adjustments. Upon conversion of the notes into shares, Nordea’s exist- ing shareholders have preferential rights to all newly issued Nordea shares. The key terms of the Additional Tier 1 and Tier 2 instruments are specified in the table to the right. Subordinated liabilities 31 Dec 2025 Classification of Tier 1 and Tier 2 instruments Nominal, value in millions Nominal currency Carrying amount in EURm Of which used for capital adequacy in EURm Interest rate (coupon) Original maturity date First optional call date Additional Tier 1 1,250 USD 1,080 1,080 Fixed 6.625% until first call date, thereafter fixed 5-year US Treasury rate +4.11% No maturity 26 Mar 2026 Additional Tier 1 1,000 USD 784 784 Fixed 3.75% until 1 September 2029, thereafter fixed 5-year CMT rate +2.602% No maturity 1 Mar 2029 – 1 Sep 2029 Additional Tier 1 3,750 SEK 347 347 Floating 3-month STIBOR +2.80% No maturity 6 Sep 2029 – 6 Mar 2030 Additional Tier 1 1,600 NOK 135 135 Floating 3-month NIBOR +2.85% No maturity 6 Sep 2029 – 6 Mar2030 Additional Tier 1 800 USD 673 673 Fixed 6.30% until 25 March 2032, thereafter fixed 5-year CMT rate +2.66% No maturity 25 Sep 2031 – 25 Mar 2032 Additional Tier 1 2,500 SEK 231 231 Floating 3-month STIBOR +2.50% No maturity 27 Nov 2030 Additional Tier 1 3,500 NOK 295 295 Floating 3-month NIBOR +2.55% No maturity 27 Nov 2030 Additional Tier 1 850 USD 716 716 Fixed 6.75% until first call date, thereafter fixed 5-year CMT rate +2.72% No maturity 10 Nov 2033 Tier 2 10,000 JPY 57 57 Fixed USD 4.51% until first call date, thereafter floating 6-month JPY deposit rate +1.10% 26 Feb 2034 26 Feb 2029 Tier 2 20,000 JPY 98 98 Fixed USD 3.75% until first call date, thereafter floating 6-month JPY deposit rate +1.2% 4 Mar 2040 4 Mar 2035 Tier 2 10,000 JPY 52 52 Fixed USD 3.84% until first call date, thereafter floating 6-month JPY deposit rate +1.2% 12 Oct 2040 12 Oct 2035 Tier 2 500 USD 424 424 Fixed 4.625% until first call date, thereafter fixed 5-year mid-swap rate +1.69% 13 Sep 2033 13 Sept 2028 Tier 2 1,000 EUR 986 986 Fixed 0.625% until 18 Aug 2026, thereafter fixed 5-year mid-swap rate +0.92% 18 Aug 2031 18 May 2026 – 18 Aug 2026 Tier 2 3,000 SEK 278 278 Floating 3-month STIBOR +0.98% 18 Aug 2031 18 May 2026 – 18 Aug 2026 Tier 2 1,000 SEK 92 92 Fixed 1.385% until 18 Aug 2026, thereafter floating 3-month STIBOR +0.98% 18 Aug 2031 18 May 2026 – 18 Aug 2026 Tier 2 500 GBP 539 539 Fixed 1.625% until 9 Dec 2027, thereafter fixed 5-year UK Treasury rate +1.30% 9 Dec 2032 9 Sep 2027 – 9 Dec 2027 Tier 2 500 EUR 528 528 Fixed 4.875% until 23 Feb 2029, thereafter fixed 5-year mid-swap rate +1.85% 23 Feb 2034 23 Nov 2028 – 23 Feb 2029 Tier 2 750 EUR 772 772 Fixed 4.125% until 29 May 2030, thereafter fixed 5-year mid-swap rate +1.35% 29 May 2035 28 Feb 2030 – 29 May 2030 Tier 2 2,750 NOK 233 233 Floating 3-month NIBOR +1.50% 21 May 2035 21 Feb 2030 – 21 May 2030 Tier 2 500 EUR 490 490 Fixed 3.25% until first call date, thereafter fixed 5-year mid-swap +0.98% 19 Nov 2035 19 Nov 2030 ===== SIDA 337 ===== Nordea Annual Report 2025 336 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P4 Intangible and tangible assets P4.1 Intangible assets Accounting policies Intangible assets are identifiable, non-monetary assets without physical substance. The assets are under Nordea Bank Abp’s control, which means that Nordea Bank Abp has the power and rights to obtain the future economic benefits flowing from the underlying resource. Nordea Bank Abp’s intangi- ble assets mainly consist of goodwill, internally developed software and software licences. Goodwill Goodwill is recognised at cost less amortisation and any write-downs. Goodwill is amortised on a straight-line basis over its useful economic life, which is normally 5–10 years. Goodwill is typically recognised when Nordea Bank Abp acquires an asset or business or in connection with the merger of a subsidiary. Customer-related intangible assets In business combinations a portion of the purchase price is normally allocated to a customer-related intangible assets if the asset is identifiable and under Nordea’s control. An intangible asset is identifiable if it arises from contractual or legal rights or can be separated from the entity and sold, transferred, licensed, rented or exchanged. The asset is amortised over its useful life, generally over ten years. IT development and computer software Costs associated with maintaining computer soft- ware programs are expensed as incurred. Costs directly associated with major software develop- ment investments, with the ability to generate future economic benefits, are recognised as intangible assets. These costs include software development staff costs and overhead expenditures directly attributable to preparing the asset for use. Computer software also includes acquired software licences not related to the function of a tangible asset. Amortisation is calculated on a straight-line basis over the useful life of the software, generally a period of three to five years, and in some circum- stances for strategic infrastructure up to a maximum of ten years. Intangible assets EURm 31 Dec 2025 31 Dec 2024 Goodwill Customer-related intangible assets1 Internally developed software Software licences Total Goodwill Internally developed software Software licences Total Acquisition value at beginning of year 245 – 2,328 222 2,795 348 2,275 447 3,070 Acquisitions – 1 454 82 537 – 397 60 457 Sales/disposals – – -16 0 -16 -100 -313 -279 -692 Reclassifications – 16 – -16 – – 0 – 0 Translation differences 0 0 45 3 48 -3 -31 -6 -40 Acquisition value at end of year 245 17 2,811 291 3,364 245 2,328 222 2,795 Accumulated amortisation and impairment at beginning of year -218 – -889 -118 -1,225 -302 -923 -357 -1,582 Accumulated amortisation and impairment on sales/disposals – – 15 0 15 100 313 277 690 Amortisation according to plan -13 -2 -318 -51 -384 -18 -280 -43 -341 Impairment charges – – -2 – -2 – -11 -2 -13 Translation differences 0 0 -17 -2 -19 2 12 7 21 Accumulated amortisation and impairment at end of year -231 -2 -1,211 -171 -1,615 -218 -889 -118 -1,225 Total 14 15 1,600 120 1,749 27 1,439 104 1,570 1) R eclassified from Software licenses and presented as a separate category. ===== SIDA 338 ===== Nordea Annual Report 2025 337 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P4.2 Tangible assets Accounting policies Properties and equipment Properties and equipment consist of properties for own use, leasehold improvements, IT equipment, fur- niture and other equipment. Items of properties and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. The cost of an item of property and equipment com- prises its purchase price as well as any directly attrib- utable costs of bringing the asset to the working condition for its intended use. Parts of an item of property and equipment are accounted for as sepa- rate items if they have different useful lives. Improvements are recognised as assets if they provide an improved function of the asset, while maintenance does not improve the function of the assets and is expensed as incurred. Properties and equipment are depreciated on a straight-line basis over the estimated useful life of the assets. The estimates of the useful life of differ- ent assets are reassessed on a yearly basis. The estimated useful lives of the assets are specified below: Buildings 30–75 years Equipment 3–5 years Leasehold improvements For changes within buildings, the shorter of 10 years and the remaining lease term. For new construction, the shorter of the principles used for owned buildings and the remaining lease term. Fixtures installed in leased properties are depreciated over the shorter of 10–20 years and the remaining lease term. At each balance sheet date, Nordea Bank Abp assesses whether there is any indication that an item of prop- erty and equipment may be impaired. If any such indi- cation exists, the recoverable amount of the asset is estimated, and any impairment loss is recognised. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. Properties and equipment EURm 31 Dec 2025 31 Dec 2024 Equipment1 Leasehold improvements Total Equipment1 Leasehold improvements Total Acquisition value at beginning of year 104 290 394 364 484 848 Acquisitions 11 29 40 6 36 42 Sales/disposals -2 -2 -4 -273 -215 -488 Reclassifications 7 -7 – 6 -7 -1 Translation differences 0 5 5 1 -8 -7 Acquisition value at end of year 120 315 435 104 290 394 Accumulated depreciation and impairment at beginning of year -58 -112 -170 -318 -303 -621 Accumulated depreciation and impairment charges on sales/disposals 2 1 3 271 208 479 Depreciation according to plan -13 -21 -34 -12 -21 -33 Translation differences 0 -1 -1 1 4 5 Accumulated depreciation and impairment at end of year -69 -133 -202 -58 -112 -170 Total 51 182 233 46 178 224 1) Incl uding buildings of EUR 2m (EUR 2m) and investment properties of EUR 0m (EUR 0m). Amounts related to investment properties recognised in the income statement were insignificant. P4.3 Leases Accounting policies A lease is a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Leases are not recognised on Nordea Bank Abp’s balance sheet. Lease payments are recognised as “Other operating expenses” in the income statement on a straight-line basis over the lease term unless another systematic way better reflects the time pat- tern of Nordea Bank Abp’s benefit. The lease terms normally range between 3 and 20 years. Leases are mainly related to office premises contracts and office equipment contracts normal t o the business. Non-cancellable operating leases EURm 31 Dec 2025 31 Dec 2024 Less than one year 121 145 1–2 years 108 135 2–5 years 276 330 5–10 years 352 354 10–15 years 270 300 15–20 years 66 92 Total 1,193 1,356 Nordea Bank Abp operates from leased premises. The premises are mainly divided into head office contracts, branch office contracts and other contracts. Future mini- mum lease payments under non-cancellable operating leases which are payable by Nordea Bank Abp are pre- sented in the table above. The head office contracts in the different Nordic coun- tries generally have a fixed lease term of 10–20 years. Usually these contracts either have continuation options or are automatically prolonged unless separately terminated at the end of the lease term. Branch office contracts generally have fixed lease term of 1–10 years or are without an end date with the right to terminate. The termination clauses are generally 6–24 months. The main principle is that the premises contracts do not contain purchase options. Company car contracts generally have a fixed lease term of less than five years. ===== SIDA 339 ===== Nordea Annual Report 2025 338 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P5 Provisions Accounting policies Provisions (which are presented as a liability) are recognised when Nordea Bank Abp has a present obligation (legal or constructive) as a result of a past event if it is probable (i.e. more likely than not) that an outflow of resources embodying economic bene- fits will be required to settle the obligation, where a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the expenditure required to set- tle the present obligation at the end of the reporting period. Accounting policies relating to employee benefits are further described in Note P7 “Employee benefits and key management personnel remuneration” and relating to financial guarantee contracts and credit commitments in Note P6 “Off-balance sheet items”. Accounting policies for provisions for off-balance sheet items can be found in Note P3.7 “Loans”. Provisions EURm 31 Dec 2025 31 Dec 2024 Restructuring 50 68 Guarantees/commitments 188 214 Other 108 94 Total 346 376 Movements in restructuring and other provisions EURm Restructuring Other 2025 2024 2025 2024 At beginning of year 68 78 94 116 New provisions made 23 27 108 57 Provisions utilised -37 -34 -83 -79 Reversals -4 -5 -11 – Reclassifications – 3 – – Translation differences 0 -1 0 0 At end of year 50 68 108 94 Provisions for restructuring costs consist of staff-related restructuring of EUR 30m (EUR 47m) and premises-re- lated obligations of EUR 20m (EUR 16m). The staff-related provision is related to contracts entered into, or activities communicated but not yet exe- cuted, where payments have not been made. These con- tracts are entered into in the ordinary course of business. Approximately EUR 27m (EUR 27m) out of the total restructuring provision is expected to be utilised/paid out in 2026. All staff-related activities are expected to be exe- cuted on in 2026, but payments are expected to extend into 2027. As for any other provision, there is uncertainty surrounding the timing and the amount to be finally paid. The uncertainty is expected to decrease as the plans are executed. Loan loss provisions for off-balance sheet items amounted to EUR 188m (EUR 215m). More information on these provisions can be found in section 2 “Credit risk” in Note P10 “Risk and liquidity management” and Note P6 “Off-balance sheet items”. More information on AML-related matters can be found in section 6.3 “Financial crime prevention” in the Group’s Note G11 “Risk and liquidity management”. P6 Off-balance sheet items P6.1 Contingent liabilities Accounting policies A contingent liability is: • a possible obligation whose existence will be confirmed only by future event(s) not wholly within Nordea Bank Abp’s control or • a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured with suffi- cient reliability. Contingent liabilities are not recognised as liabilities on the balance sheet but disclosed as an off-balance sheet item unless the possibility of an outflow is remote. When an outflow is more likely than not, a provision is recognised on the balance sheet. The accounting policies covering provisions can be found in Note P5 “Provisions”. Guarantees and documentary credits are recog- nised on the balance sheet under the expected credit loss requirements as further defined in Note P3.7 “Loans”. Changes in provisions are recognised in the income statement in the line item “Net loan losses”. Premiums received for financial guarantees are amortised over the guarantee period and recognised as “Fee and commission income” in the income statement. The contractual amounts are recognised off balance sheet, net of any provisions. The table below includes all issued guarantees, also those for which the possibility of an outflow of resources is con- sidered remote. Contingent liabilities EURm 31 Dec 2025 Of which on behalf of group undertakings Loan guarantees 33,684 31,688 Other guarantees 20,641 3,095 Documentary credits 450 – Other contingent liabilities 4 – Total 54,779 34,783 EURm 31 Dec 2024 Of which on behalf of group undertakings Loan guarantees 35,260 33,426 Other guarantees 19,120 618 Documentary credits 433 0 Other contingent liabilities 50 – Total 54,863 34,044 In its normal business, Nordea Bank Abp issues various forms of guarantees in favour of its customers. Loan guar- antees are provided for customers to guarantee obliga- tions in other credit and pension institutions. Other guar- antees mainly consist of commercial guarantees such as bid guarantees, advance payment guarantees, warranty guarantees and export-related guarantees. Contingent lia- bilities also include unutilised irrevocable import docu- mentary credits and confirmed export documentary cred- its. These transactions are part of the bank´s services and support Nordea Bank Abp´s customers. The 2025 Annual General Meeting decided that Nordea Bank Abp will cover or reimburse the members of the Board of Directors all costs and expenses related to or arising from the Board membership, including travel, logis- tics and accommodation as well as consultative, legal and administrative costs. The legal costs can e.g. include required costs of legal defence and claims made (during and after their period of office) against Board members in cases where Board members are not found liable or guilty of any intentional wrongdoing or grossly negligent behaviour. ===== SIDA 340 ===== Nordea Annual Report 2025 339 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P6.1 Contingent liabilities, cont. As of 2023 members of the GLT are afforded coverage and reimbursement corresponding to that of the Board in instances related to or arising from their GLT membership. In addition, as of 2019 Nordea Bank Abp has undertaken to indemnify the members of the GLT against legal expenses incurred in relation to certain claims or investi- gations by third parties based on circumstances or events which occurred during the members’ respective terms of office, excluding crimes or actions made with intent or gross negligence, up to a capped aggregate amount of EUR 37.5m, unless the Board decides otherwise on a case- by-case basis. Nordea Bank Abp has undertaken, in relation to certain individuals and on certain conditions, to be responsible for the potential payment liability against these individuals in their capacity of managing directors or board members of group undertakings of Nordea Bank Abp. Nordea Bank Abp purchases directors and officers lia- bility insurance, which provides cover for personal liabili- ties of its Board of Directors and management as well as liability assumed by the bank to a certain extent following indemnification undertakings. The terms and conditions including the total limit of liability of the directors and officers liability insurance programme are in line with large European banks. A limited number of employees are entitled to sever- ance pay if they are dismissed before reaching their nor- mal retirement age. For further information, see Note P7.4 “Key management personnel remuneration”. P6.2 Commitments Accounting policies Commitments are irrevocable promises to extend credit or make other types of payments in the future. Unutilised credit facilities are also disclosed as commitments. Irrevocable commitments are recognised on the balance sheet under the expected credit loss requirements as further defined in Note P3.7 “Loans”. Changes in provisions are recognised in “Net loan losses” in the income statement. Premiums received on credit commitments are generally amortised over the loan commitment period. The contractual amounts are recognised off balance sheet, net of any provisions. Commitments EURm 31 Dec 2025 Of which to group undertakings Unutilised overdraft facilities 33,335 6,877 Loan commitments 71,359 19,358 Future payment obligations 482 – Other commitments 3 – Total 105,179 26,235 EURm 31 Dec 2024 Of which to group undertakings Unutilised overdraft facilities 32,082 6,353 Loan commitments 66,900 20,743 Future payment obligations 545 – Other commitments 3 – Total 99,530 27,096 Reverse repurchase agreements are recognised on and derecognised from the balance sheet on the settlement date. As at 31 December 2025 Nordea Bank Abp had signed reverse repurchase agreements that have not yet been settled and consequently are not recognised on the balance sheet. On the settlement date these reverse repurchase agreements will, as far as possible, replace existing reverse repurchase agreements that were not derecognised as at 31 December 2025. The net impact on the balance sheet is minor. These instruments have not been disclosed as commitments. For more information on reverse repurchase agree- ments, see Note P3.2 “Transferred assets and obtained collateral”. P6.3 Assets pledged Accounting policies Assets recognised on the balance sheet and pledged as security for Nordea Bank Abp’s own liabilities are disclosed as “Assets pledged as security for own lia- bilities”. Assets recognised on the balance sheet and pledged for other than own liabilities are disclosed as “Assets pledged as security for other than own liabilities”. Securities borrowed and then used as col- lateral are presented as “Transferred assets and obtained collateral” (see Note P3.2 “Transferred assets and obtained collateral” for accounting policies). Assets pledged EURm 31 Dec 2025 31 Dec 2024 Assets pledged as security for own liabilities 18,972 16,240 Assets pledged as security for other than own liabilities 169 236 Total 19,141 16,476 Assets pledged as security for own liabilities EURm 31 Dec 2025 31 Dec 2024 Assets pledged as security for own liabilities Securities etc. 14,380 10,408 Other assets pledged 4,592 5,832 Total 18,972 16,240 EURm 31 Dec 2025 31 Dec 2024 The above pledges pertain to the following liabilities1 Deposits by credit institutions 10,241 8,522 Deposits and borrowings from the public 4,164 1,022 Derivatives 4,341 5,532 Other liabilities and commitments 224 257 Total 18,970 15,333 1) Liabilities after offsetting between assets and liabilities on the balance sheet. Assets pledged as security for own liabilities comprise securities pledged as security under repurchase agree- ments and insecurities lending. The transactions are con- ducted under standard agreements employed by financial market participants. Counterparties in those transactions are credit institutions and the public. The transactions are typically short term and mature with three months. Other assets pledged relate to certificates of deposit pledged by Nordea Bank Abp to comply with the authori- ties’ requirements. Nordea Bank Abp has not provided any pledges or mortgages on behalf of its customers. Assets pledged as security for other than own liabilities Assets pledged as security for other than own liabilities mainly relate to interest-bearing securities pledged as security for payment settlements with central banks and clearing institutions and amounted to EUR 169m (EUR 236m). Only securities pledged overnight are disclosed (securities pledged intraday are excluded). Collateral pledged for items other than Nordea Bank Abp’s own lia- bilities, e.g. for a third party or for Nordea Bank Abp’s own contingent liabilities, is also presented under this item. Nordea Bank Abp has not pledged any assets on behalf of group undertakings or associated undertakings. ===== SIDA 341 ===== Nordea Annual Report 2025 340 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P7 Employee benefits and key management personnel remuneration All forms of consideration given by Nordea Bank Abp to its employees as compensation for services performed are employee benefits. Employee benefits consist of short- term benefits, post-employment benefits and share-based payment plans. Short-term benefits are to be settled within twelve months after the reporting period when the services have been performed. Short-term benefits consist mainly of fixed and variable salary. For more information, see Note P7.1 “Fixed and variable salaries”. Post-employment benefits are benefits payable after termination of the employment. Post-employment bene- fits in Nordea Bank Abp consist only of pensions. For more information, see Note P7.2 “Pensions”. Share-based payment plans cover share-based pay- ments for services from employees. For more information, see Note P7.3 “Share-based payment plans”. In addition, remuneration to key management person- nel is disclosed in Note P7.4 “Key management personnel remuneration”. Additional disclosures on remuneration The Board of Directors’ report includes a separate section on remuneration. Further, in accordance with the Finnish Corporate Governance Code 2025 the Remuneration Report for Governing bodies 2025 will be prepared for the Annual General Meeting on 24 March 2026. Finally aggre- gated disclosures for key management personnel and material risk takers (Pillar III, CRR article 450) will be pub- lished on nordea.com ahead of the Annual General Meeting. P7.1 Fix ed and variable salaries Accounting policies Short-term benefits Short-term benefits consist mainly of fixed and vari- able salar y. Both fixed and variable salaries are expensed in the period when the employees per- form services for Nordea Bank Abp. Short-term benefits that fulfil the capitalisation requirements defined in the accounting policies in Note P4.1 “Intangible assets” are included gross in this note, but subsequently capitalised and added to “Intangible assets” on the balance sheet. Termination benefits Termination benefits normally arise if employment is terminated before the normal retirement date or if an employee accepts an offer of voluntary redundancy. Termination benefits are expensed when Nordea Bank Abp has an obligation to make the payment. An obligation arises when a formal plan has been committed to on the appropriate organisational level and when Nordea Bank Abp is without realistic possibility of withdrawal, which normally occurs when the plan has been communicated to the affected individual or employee(s) or their representatives. Termination benefits can include both short-term benefits, for instance a number of months’ salary, and post-employment benefits, normally in the form of early retirement benefit. Nordea Bank Abp’s Short Term Incentive Plans Nordea Bank Abp operates Short Term Incentive Plans (STIPs). These are the Nordea Incentive Plan (NIP), which is offered to the CEO and members of the Group Leadership Team (GLT) and subject to invitation, to other employees, or bonus schemes (bonus) for selected employees in specific business areas or units as approved by the Board of Directors (Board). For more information, see section “Nordea’s Short Term Incentive Plans” in the Group’s Note G8.1. Staff costs EURm 2025 2024 Fixed and variable salaries1 -2,186 -2,093 Pension costs (specification in Note P7.2) -256 -244 Social security contributions -422 -400 Total -2,864 -2,737 Expenses capitalised in IT development projects2 133 118 Total -2,731 -2,619 1) Of which all ocation to profit sharing for 2025 amounted to EUR -54m (EUR -55m), consisting of a new allocation of EUR -51m (EUR -55m) and an adjustment related to prior years of EUR -3m (EUR 0m). 2) See No te P4.1 “Intangible assets”. P7.2 Pensions Accounting policies Defined contribution plans Pension plans that are based on defined contribution arrangements hold no pension liability for Nordea Bank Abp. Pension costs for defined contribution plans are recognised as an expense as the employee renders services to the entity and the contribution payable in exchange for that service becomes due. In general, the payment is associated with and settled through regular salary payments. Nordea Bank Abp also contributes to state pension plans. Pension costs for defined contribution plans that fulfil the capitalisation requirements defined in the accounting policies in Note P4.1 “Intangible assets” are included gross in this note, but subsequently capitalised and added to “Intangible assets” on the balance sheet. Defined benefit plans The major defined benefit plans are funded, covered by assets in pension funds/foundations. If the fair value of plan assets associated with a specific pen- sion plan is lower than the gross present value of the defined benefit obligation determined using the projected unit credit method, the net amount is rec- ognised as a liability (“Retirement benefit liabili- ties”). If not, the net amount is recognised as an asset (“Retirement benefit assets”). Non-funded pension plans are recognised as “Retirement benefit liabilities”. Nordea Bank Abp’s net obligation for defined ben- efit plans is calculated separately for each plan by estimating the amount of future benefit that employ- ees have earned for their service in the current period and prior periods. That benefit is discounted to determine its present value. Actuarial calculations, including the projected unit credit method, are applied to assess the present value of defined bene- fit obligations and related costs, based on several actuarial and financial assumptions. Current and past service cost is recognised in the income statement in the current year. Current service cost is defined as the increase in the present value of the defined ben- efit obligation resulting from employee service in the current period. Past service cost is the change in the present value of the defined benefit obligation for employee service in prior periods triggered by plan amendments or curtailments. The present value of the obligation and the fair value of any plan assets are impacted by changes in actuarial assumptions (discount rates (interest rates and credit spreads), inflation, salary increases, turn- over and mortality) and experience effects, including actual outcome compared to assumptions. The remeasurement effects are recognised immediately in equity through the fair value reserve. The discount rate is determined by reference to high-quality corporate bonds where a deep enough market for such bonds exists. Covered bonds are in this context considered to be corporate bonds. In Sweden, Norway and Denmark, the discount rate is determined with reference to covered bonds, whereas in Finland and the UK it is determined with reference to corporate bonds. In Sweden, Norway, Finland and Denmark, the observed bond credit spreads over the swap curve are derived from long- dated covered or corporate bonds and extrapolated to the same duration as the pension obligations using the relevant swap curves. In the UK, the corpo- rate bond credit spread over the government bond ===== SIDA 342 ===== Nordea Annual Report 2025 341 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P7.2 Pensions, cont. rate is extrapolated to the same duration as the pen- sion obligations using the government bond curve. When the calculation results in a net asset, the recognised asset is limited to the present value of any future refunds from the plan or reductions in future contributions to the plan. Social security contributions are calculated and accounted for based on the net recognised surplus or deficit by plan and are included on the balance sheet as “Retirement benefit liabilities” or “Retirement benefit assets”. Pension costs to defined benefit plans that fulfil the capitalisation requirements defined in the accounting policies in Note P4.1 “Intangible assets” are included gross in this note, but subsequently capitalised and added to “Intangible assets” on the balance sheet. Pension costs The companies within Nordea Bank Abp have various pension plans. They consists of both defined benefit plans and defined contribution plans, reflecting national prac- tices and conditions in the countries where Nordea Bank Abp operates. Pension costs EURm 2025 2024 Defined contribution plans -240 -226 Defined benefit plans1 -16 -18 Total -256 -244 1) Ex cluding special wage tax (SWT) in Sweden and social security contributions (SSC) in Norway totalling of EUR -4m (EUR -7m). Defined contribution plans All new employees have been offered defined contribution plans since 2013 when the defined benefit plan in Sweden was closed for new members. The defined contribution plans follow the local collective agreements and regula- tions in each country. In Norway, Nordea Bank Abp is part of a collectively agreed multi-employer pension plan in the private sector (AFP), providing entitled employees with a lifelong addition to their regular pensions. As no information is available on Nordea Bank Abp’s share of the liabilities/ assets and pension costs, the AFP is accounted for as a defined contribution plan. The AFP plan is financed by an annual premium, for 2025 equal to 2.7% of employees’ salary between 1 and 7.1 times the Norwegian social security base amount (“G”). The premium amounted to EUR 4m (EUR 3m). Defined benefit plans The plans are operated in accordance with local regula- tory requirements, collective agreements and local prac- tice and are generally employer-financed final salary and service-based pension plans providing pension benefits in addition to the statutory systems. All defined benefit plans are closed for new entrants; new employees are offered defined contribution plans. Retirement benefit assets and liabilities EURm 31 Dec 2025 31 Dec 2024 Plans with net retirement benefit assets 328 351 Plans with net retirement benefit liabilities 251 234 Net liability(-)/asset(+) 77 117 In general, the liabilities are safeguarded by assets in dedi- cated pension funds or foundations or alternatively by credit insurance (Sweden only). Pension funds and founda- tions hold both the assets and the pension liabilities, except for Sweden where the pension foundation serves as collat- eral for the pension liabilities held by Nordea Bank Abp. Minimum funding requirements differ between the pension funds and foundations according to local regula- tory requirements. The funding requirement is generally that the pension obligations measured using local require- ments must be covered in full by a local predefined sur- plus. Other pension plans are not covered by funding requirements and are generally unfunded. The respective Nordea Bank Abp entities issuing the defined pension benefit serve as the sponsoring undertaking in accordance with the EU IORP II Directive. Defined benefit plans impact Nordea Bank Abp via changes in the net present value of obligations and/or changes in the market value of plan assets. P7.3 Shar e-based payment plans Accounting policies Equity-settled plans An equity-settled share-based payment transaction occurs when Nordea Bank Abp receives goods or services and uses its own equity instruments as con- sideration. Such transactions are recognised as a staff expense and a corresponding increase in equity. The expense is measured at the fair value of the goods or services received unless that fair value cannot be estimated reliably. In such cases, the expense is measured by reference to the fair value of the equity instruments awarded, which is the method used by Nordea Bank Abp. When Nordea Bank Abp issues such instruments, the award date fair value of these rights is expensed on a straight-line basis over the vesting period. The fair value per right is estimated at award date and not subsequently updated. The vesting period is the period over which the employees have to remain in service at Nordea in order for their rights to vest. For rights with non-market performance condi- tions, the amount expensed is the award date fair value per right multiplied by the best estimate of rights that will eventually vest, which is reassessed at each reporting date. For rights with market per- formance conditions, the total fair value is estimated based on the fair value of each right times the maxi- mum number of rights at award date. Market condi- tions are taken into account when estimating the fair value of the equity instruments awarded. Therefore, if all other vesting conditions (e.g. service condi- tions) are met, Nordea Bank Abp recognises the expense for awards of equity instruments with mar- ket conditions over the vesting period irrespective of whether that market condition is satisfied. Social security costs are also allocated over the vesting period. The provision for social security costs is reassessed on each reporting date to ensure that the provision is based on the rights’ fair value at the reporting date. Cash-settled plans A cash-settled share-based payment transaction occurs when Nordea Bank Abp acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or ser- vices for amounts that are based on the price of equity instruments of Nordea Bank Abp. For cash-settled share-based payment transactions, the goods or services acquired and the liability incurred are measured at the fair value of the liability. The lia- bility is remeasured at fair value at the end of each reporting period, with any changes in fair value rec- ognised in the line item “Net result from securities at fair value through profit or loss” in the income statement. Nordea Bank Abp’s share-based remuneration plans Nordea Bank Abp has several variable pay plans for selected Nordea Bank Abp employees (participants). The terms of the plans vary depending on the target group. Disclosures related to the share-based plans can be found below. All remuneration plans are also described in the section “Remuneration” of the Board of Directors’ report. Until the end of the performance/financial year 2018, Nordea Bank Abp’s share-based variable remuneration plans were partly in the form of equity-linked total shareholders’ return indexation (excluding dividends) and partly in the form of cash. The plans were consequently generally settled in cash and the portion indexed with Nordea’s total share- holders’ return was accounted for as a cash-settled share- based payment plan. The total shareholders’ return indexa- tion resulted in a loss of EUR 0.7m in 2025 related to the remaining deferred payments s temming from these plans. Starting from the 2019 performance year, share-based variable pay plans are partly in the form of cash not linked to the Nordea share and partly in the form of Nordea shares, which makes the portion paid in Nordea shares an equity-settled share-based plan. Total shareholders’ return indexation may be used for share-based variable pay plans, subject to operational, administrative or tax issues as well as applicable regulation in certain legal entities. ===== SIDA 343 ===== Nordea Annual Report 2025 342 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P7.3 Share-based payment plans, cont. The table below covers all plans with share-based plan expenses recognised in 2025 as well as the comparative figures for 2024. Figures for 2025 are based on the expected outcome and all figures are excluding social security expenses. The expense for 2025 is based on an assumption about the number of shares that will be awarded and deferred for delivery in later years. Nordea Bank Abp’s Long Term Incentive Plans See the, section “Nordea’s Long Term Incentive Plans” in the Group’s Note G8.3. Share-based variable remuneration plans other than LTIP plans See section “Share-based variable remuneration plans other than LTIP plans” in the Group’s Note G8.3. The table below shows the remaining liabilities for the cash-settled share-based plans used 2014–2018. The table only includes deferred amounts indexed with Nordea TSR. Share-linked deferrals (cash-settled) EURm 2025 2024 Opening balance 3 6 Deferred/earned during the period 0 – TSR indexation during the period 1 – Payments during the period -2 -3 Translation differences 0 – Closing balance 2 3 Share-based payment plans Plan year Equity-settled or cash-settled Delivery period Expense 2025 Expense 2024 Liability 31 Dec 2025 Liability 31 Dec 2024 Outstanding rights 2025 - LTIP 2025–2027 Equity-settled 2028–2033 2 – – – Yes1 - NIP and bonus Equity-settled 2026–2031 10 – – – Yes2 - Buy-outs etc. Equity-settled 2025–2029 – – – – Yes 2024 - LTIP 2024–2026 Equity-settled 2027–2032 2 2 – – Yes3 - NIP and bonus Equity-settled 2025–2030 5 10 – – Yes - Buy-outs etc. Equity-settled 2024–2028 0 0 – – Yes 2023 - LTIP 2023–2025 Equity-settled 2026–2031 3 3 – – Yes4 - NIP and bonus Equity-settled 2024–2029 -2 5 – – Yes - Buy-outs etc. Equity-settled 2023–2027 0 0 – – Yes Previous years Cash-settled 2022–2027 1 0 2 3 No Equity-settled 2022–2030 -7 -4 – – Yes Total 14 16 2 3 1) Rights will be awarded following the end of the three-year performance period (2025–2027) over the delivery period (2028–2033). 2) Rights will be awarded in 2026 based on the performance in 2025. 3) Rights will be awarded following the end of the three-year performance period (2024–2026) over the delivery period (2027–2032). 4) Rights will be awarded following the end of the three-year performance period (2023–2025) over the delivery period (2026–2031). P7.4 Key management personnel remuneration Accounting policies For information about the accounting policies, see Note P7.1 “Fixed and variable salaries”, Note P7.2 “Pensions” and Note P7.3 “Share-based payment plans”. For definition of key management personnel, see Note P9.8 “Related party transactions”. Board remuneration For board remuneration, see section “Board remuneration” in the Group’s Note G8.4 Key management personnel remuneration. Remuneration of the Chief Executive Officer, the Deputy Managing Director and the Group Leadership Team For the Group Leadership Team remuneration, see section “Remuneration of the Chief Executive Officer, the Deputy Managing Director and the Group Leadership Team” in the Group’s Note G8.4 Key management personnel remuneration. P7.5 Number of employees The table below presents the number of employees by type of employment at the end period. Number of employees 31 Dec 2025 31 Dec 2024 Change Permanent full-time 24,801 25,593 -791 Permanent part-time 921 999 -78 Fixed term 171 291 -120 Total number of employees end of period 25,893 26,883 -989 ===== SIDA 344 ===== Nordea Annual Report 2025 343 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P8 Investments in group undertakings, associated undertakings and joint ventures P8.1 Investments in group undertakings Accounting policies Group undertakings are the entities that Nordea Bank Abp controls. Control is generally achieved when Nordea Bank Abp holds, directly or indirectly through group undertakings, more than 50% of the voting rights. Nordea Bank Abp’s investments in group under- takings are recognised under the cost model. At each balance sheet date, all shares in group under- takings are reviewed for indications of impairment. If such indication exists, an analysis is performed to assess whether the carrying amount of each holding of shares is fully recoverable. The recoverable amount is the higher of fair value less costs to sell and the value in use. Any impairment charge is calculated as the difference between the carrying amount and the recoverable amount and is pre- sented in the line item “Depreciation, amortisation and impairment charges” in the income statement. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. Group undertakings This specification includes all directly owned group under takings. Registration number Domicile Number of shares Carrying amount 31 Dec 2025 EURm Carrying amount 31 Dec 2024, EURm Shareholding, % Nordea Kredit Realkreditaktieselskab1 15134275 Copenhagen 17,172,500 2,951 2,950 100.0 Nordea Hypotek AB (publ)1 556091-5448 Stockholm 100,000 3,323 3,083 100.0 Nordea Eiendomskreditt AS1 971227222 Oslo 16,781,828 2,899 2,926 100.0 Fionia Asset Company A/S 31934745 Copenhagen 148,742,586 1,185 1,185 100.0 Nordea Finance Finland Ltd1 0112305-3 Helsinki 1,000,000 1,067 1,067 100.0 Nordea Baltic AB 559220-4688 Stockholm 1,000 8 8 100.0 Nordea Mortgage Bank Plc1 2743219-6 Helsinki 257,700,000 1,341 1,281 100.0 Nordea Life Holding AB 556742-3305 Stockholm 1,000 722 722 100.0 Nordea Finance Equipment AS3 987664398 Oslo – – 685 – LLC Promyshlennaya Kompaniya Vestkon2 1027700034185 Moscow 4,601,942,680 72 59 100.0 Nordea Finans Norge AS3 924507500 Oslo 63,000 1,141 635 100.0 Nordea Funds Ltd 1737785-9 Helsinki 3,350 385 385 100.0 Nordea Asset Management Holding AB 559104-3301 Stockholm 500 265 245 100.0 Nordea Finans Danmark A/S3 89805910 Høje Taastrup 20,006 271 177 100.0 Nordea Finans Sverige AB (publ)1, 3 556021-1475 Stockholm 1,000,000 215 111 100.0 Nordea Essendropsgate Eiendomsforvaltning AS 986610472 Oslo 7,500 33 34 100.0 Nordea Markets Holding Company INC 36-468-1723 New York 1,000 91 91 100.0 Nordic Baltic Holding (NBH) AB 556592-7950 Stockholm 1,000 1 1 100.0 Privatmegleren AS 986386661 Oslo 12,000,000 9 9 100.0 Danbolig A/S 13186502 Copenhagen 1 1 1 100.0 Structured Finance Servicer A/S 24606910 Copenhagen 2 1 1 100.0 Nordea Hästen Fastighetsförvaltning AB 556653-6800 Stockholm 1,000 0 0 100.0 First Card AS 963215371 Oslo 200 0 0 100.0 Nordea Vallila Fastighetsförvaltning Ab 1880368-8 Helsinki 1,000 0 0 100.0 Kiinteistö Oy Kaarenritva 0362827-4 Vantaa 100 0 0 100.0 Nordea Limited 03051044 London 2 – – 100.0 Total 15,981 15,656 1) Credit institutions. 2) In accordance with its strategy, Nordea is focusing on its business in the Nordic region. This has entailed the Group winding down its operations in Russia. The liquidation of the remaining Russian subsidiary is pending finalisation. 3) In 2025 Nordea Finance Equipment AS was merged into Nordea Finans Sverige AB (publ), Nordea Finans Norge AS and Nordea Finans Danmark A/S. P8.2 Investments in associated undertakings and joint ventures Accounting policies Associated undertakings are the entities where Nordea Bank Abp’s share of voting rights is between 20% and 50% and/or where Nordea Bank Abp has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Joint ventures are the entities where Nordea Bank Abp has joint control. Joint control is the contractu- ally agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the par- ties sharing control. Nordea Bank Abp’s investments in associated undertakings and joint ventures are recognised under the cost model. At each balance sheet date, all shares in associated undertakings and joint ven- tures are reviewed for indications of impairment. If such indication exists, an analysis is performed to assess whether the carrying amount of each holding of shares is fully recoverable. The recoverable amount is the higher of fair value less costs to sell and the value in use. Any impairment charge is cal- culated as the difference between the carrying amount and the recoverable amount and is pre- sented in the line item “Depreciation, amortisation and impairment charges” in the income statement. Impairment losses are reversed if the recoverable amount increases. The carrying amount is then increased to the recoverable amount but cannot exceed the carrying amount that would have been determined had no impairment loss been recognised. ===== SIDA 345 ===== Nordea Annual Report 2025 344 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P8.2 Investments in associated undertakings and joint ventures, cont. Associated undertakings and joint ventures 1 Associated undertakings Registration number Domicile Carrying amount Shareholding, %2025, EURm 2024, EURm Eksportfinans ASA2,3 816521432 Oslo – 42 – Eiendomsverdi AS 881971682 Oslo 10 10 25 Suomen Luotto-osuuskunta 0201646-0 Helsinki 1 1 28 Bankomat AB 556817-9716 Stockholm 5 5 20 OPEN POS Nordic Group AB 559063-2369 Gothenburg 2 2 46 Subaio ApS 37766585 Aalborg 2 2 20 CrediWire ApS 37264628 Copenhagen 2 2 7 Getswish AB 556913-7382 Stockholm 8 8 20 Svenska e-fakturabolaget AB 556563-0596 Stockholm 2 1 50 Other 0 0 Total 32 73 Joint ventures Siirto Brand Oy 3102648-1 Helsinki 6 0 50 Tibern AB 559384-3542 Stockholm 1 1 14 Invidem AB 559210-0779 Stockholm – – 17 Finansinfrastruktur i Sverige AB4 559198-9610 Stockholm 32 0 23 Total 39 1 Total investments in associated undertakings and joint ventures 71 74 1) All shares in associated undertakings and joint ventures are unlisted. 2) Credit institutions. 3) Eksportfinans ASA was sold in 2025. 4) In 2025 P27 Nordic Payments Platform AB changed its name to Finansinfrastruktur i Sverige AB. P8.3 Currency translation of foreign entities Accounting policies The financial statements are presented in euro (EUR). When translating the financial statements of foreign branches into EUR from their functional cur- rency, the assets and liabilities of foreign branches in Nordea Bank Abp have been translated at the clos- ing rates, while items in the income statement are translated at the average exchange rate for the year. The average exchange rates are calculated based on daily exchange rates divided by the number of busi- ness days in the period. Translation differences are recognised in the retained earnings in equity. Any remaining equity in foreign branches is con- verted at the closing rates with translation differ- ences recognised in equity. Information on the most important exchange rates is disclosed in the section “Exchange rates” in P1 “Accounting policies”. ===== SIDA 346 ===== Nordea Annual Report 2025 345 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9 Other disclosures P9.1 Equity Accounting policies Equity is the residual interest in recognised assets after deduction of recognised liabilities. For equity, there are no requirements to distribute cash flows. Instruments are classified as financial liabilities if such genuine requirements exist, for instance to pay when a triggering event occurs that is beyond the control of both the issuer and the holder of the instruments. Any payments connected to instruments classified as equity are accounted for directly in equity and presented as dividends. Nordea Bank Abp has deter- mined that payments on financial instruments classi- fied as equity (i.e. Additional Tier 1 instruments with write-down features) are distribution of profits and they are therefore accounted for as dividends. Dividends to shareholders are recognised as a reduc- tion of equity when the Annual General Meeting has adopted the proposal. The reduction of equity is accounted for when the Board of Directors decides on dividends in situations where the Annual General Meeting has given the Board of Directors a mandate to make such a decision up to a certain cap. Investments in own shares are not accounted for as assets; instead, they are recognised as a reduction in equity net of any transaction costs. Acquisitions of treasury shares as part of the Markets trading oper- ations are recognised as a reduction in invested unrestricted equity. Treasury shares acquired to opti- mise the capital structure and Nordea Bank Abp’s buy-back programmes are recognised as a reduction in retained earnings. Transaction costs related to repurchasing of treasury shares are also recognised in equity. There is no impact on the financial state- ments when shares are cancelled. Sales of own shares in the trading operations are recognised as increases in invested unrestricted equity. Contracts on Nordea shares that can be settled net in cash, for instance derivatives such as options and warrants, are either presented as financial assets or liabilities, meaning that these are not equity instruments. Additional Tier 1 capital holders Nordea Bank Abp has issued perpetual subordinated instruments (Additional Tier 1 instruments) which are con- verted into a variable number of Nordea shares in case a pre-defined CET1 trigger level for either the Nordea Group or Nordea Bank Abp is breached. Interest payments are fully discretionary and mandatorily cancelled in certain cir- cumstances. As Nordea Bank Abp may be obliged to deliver a variable number of Nordea shares, these Additional Tier 1 instruments are classified as financial liabilities. Nordea Bank Abp has also issued perpetual subordi- nated instruments (Additional Tier 1 instruments) which will be written down instead of converted into Nordea shares in case a pre-defined CET1 trigger level for either the Nordea Group or Nordea Bank Abp is breached. Interest payments are fully discretionary and mandatorily cancelled in certain circumstances. These instruments are classified as equity as there is no requirement for Nordea Bank Abp to pay interest or principal to the holders of the instruments. By the end of 2025 no such instruments were outstanding. Share capital The share capital amounts to EUR 4,049,951,919. The shares in Nordea Bank Abp have no nominal value. Each share carries one voting right. For more information about the number of registered shares, see section “Nordea shares” below. Invested unrestricted equity Includes the reserve for invested unrestricted equity which consists of the subscription price of the shares in Nordea Bank Abp’s share issue or rights issue which has not been recorded in share capital. The reserve for invested unre- stricted equity has also been impacted by acquisitions and sales of treasury shares as part of the Markets trading operations. Other reserves Consist of a fair value reserve including reserves for cash flow hedges, financial assets classified in the category “Financial assets at fair value through other comprehen- sive income”, accumulated remeasurements of defined benefit pension plans as well as a reserve for currency translation differences. Retained earnings Primarily comprise Nordea Bank Abp’s undistributed prof- its from previous years and currency translation differences. Equity EURm Restricted equity Unrestricted equity Share capital Other reserves Invested unrestricted equity Retained earnings Additional Tier 1 capital holders Total equity Balance at 1 Jan 2025 4,050 -37 1,053 22,310 750 28,126 Net profit for the year – – – 4,742 – 4,742 Currency translation differences – – – 202 – 202 Investments in foreign operations: Valuation gains/losses, net of tax – -39 – – – -39 Fair value measurement of financial assets: Valuation gains/losses, net of tax – 131 – – – 131 Transferred to the income statement, net of tax – -22 – – – -22 Cash flow hedges1: Valuation gains/losses, net of tax – -1,957 – – – -1,957 Transferred to the income statement, net of tax – 1,890 – – – 1,890 Changes in own credit risk related to liabilities at fair value option: Valuation gains/losses, net of tax – 1 – – – 1 Defined benefit plans: Remeasurement of defined benefit plans during the year, net of tax – -104 – – – -104 Transactions with owners: Share-based payments – – – 14 – 14 Paid interest on Additional Tier 1 capital, net of tax – – – -21 – -21 Change in Additional Tier 1 capital – – – – -750 -750 Dividend – – – -3,268 – -3,268 Sale/purchase of own shares2 – – 24 -897 – -873 Other changes: – – – – 0 0 Balance at 31 Dec 2025 4,050 -137 1,077 23,082 0 28,072 1) For more detailed information, see Note P3.5 “Hedge accounting”. 2) Refers to the change in the holding of own shares related to treasury shares for capital optimisation purposes, the trading portfolio and Nordea’s shares within portfolio schemes in Denmark. ===== SIDA 347 ===== Nordea Annual Report 2025 346 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.1 Equity, cont. Equity EURm Restricted equity Unrestricted equity Share capital Other reserves Invested unrestricted reserve Retained earnings Additional Tier 1 capital holders Total equity Balance at 1 Jan 2024 4,050 -198 1,063 21,969 750 27,634 Net profit for the year – – – 4,189 – 4,189 Currency translation differences – – – -156 – -156 Investments in foreign operations: Valuation gains/losses, net of tax – 30 – – – 30 Fair value measurement of financial assets: Valuation gains/losses, net of tax – -43 – – – -43 Transferred to the income statement, net of tax – -4 – – – -4 Cash flow hedges1: Valuation gains/losses, net of tax – 1,487 – – – 1,487 Transferred to the income statement, net of tax – -1,457 – – – -1,457 Changes in own credit risk related to liabilities at fair value option: Valuation gains/losses, net of tax – -6 – – – -6 Defined benefit plans: Remeasurement of defined benefit plans during the year, net of tax – 74 – – – 74 Transactions with owners: Share-based payments – – – 16 – 16 Paid interest on Additional Tier 1 capital, net of tax – – – -21 – -21 Dividend – – – -3,218 – -3,218 Sale/purchase of own shares2 – – -10 -372 – -382 Other changes: – 81 – -97 0 -16 Balance at 31 Dec 2024 4,050 -37 1,053 22,310 750 28,126 1) For more detailed information, see Note P3.5 “Hedge accounting”. 2) Refers to the change in the holding of own shares related to treasury shares for capital optimisation purposes, the trading portfolio and Nordea’s shares within portfolio schemes in Denmark. Distributable funds EURm 31 Dec 2025 31 Dec 2024 Invested unrestricted equity 1,077 1,053 Additional Tier 1 capital holders – 750 Retained earnings 18,340 18,121 Net profit for the year 4,742 4,189 Total 24,159 24,113 Capitalised development costs -1,600 -1,439 Total distributable funds1 22,559 22,674 1) For the full amounts in euro, see the section “Proposed distribution of earnings” in the Board of Directors’ report. Nordea shares Nordea Bank Abp’s Articles of Associations do not contain any provisions on shares classes or voting rights. Consequently, Nordea Bank Abp has one class of shares (Nordea shares) and all shares in Nordea Bank Abp are ordinary shares. Each share confers one vote at Nordea Bank Abp’s general meetings as well as an equal right to any dividend. Nordea Bank Abp is not entitled to vote with its own shares at general meetings. The Nordea share does not have any nominal value. At the 2025 Annual General Meeting (AGM), the Board of Directors was authorised to decide on the repurchase of an aggregate of not more than 340,000,000 own shares, subject to the condition that the number of own shares held by Nordea Bank Abp together with its subsidiaries at any given time does not exceed 10% of all Nordea shares. The authorisation will remain in force and effect until 18 months from the resolution of the Annual General Meeting. The 2025 AGM authorised the Board of Directors of Nordea Bank Abp to resolve, on one or several occasions, on the issuance of special rights entitling to either new shares in the company or treasury shares against payment (convertibles) in accordance with or in deviation from the shareholder’s preemptive subscription rights. The maxi- mum number of shares that may be issued based on this authorisation is 340,000,000. The authorisation will remain in force and effect until the earlier of (i) the end of the next Annual General Meeting of the company or (ii) 18 months from the resolution of the meeting. Moreover, the 2025 AGM authorised the Board of Directors of Nordea Bank Abp to resolve, on one or several occasions, on the issuance of new shares or transfer of the company’s own shares of not more than 30,000,000 shares. The authori- sation will remain in force and effect until the earlier of (i) the end of the next Annual General Meeting of the company or (ii) 18 months from the resolution of the meeting. Nordea continued its share buy-back programmes approved by the Board of Directors in accordance with the authorisation granted by the 2024 and 2025 Annual General Meetings. See the 2025 share buy-back pro- grammes in the table below. Announced on Completed on Amount, EURm 17 October 2024 20 February 2025 250 6 March 2025 22 May 2025 250 12 June 2025 19 September 2025 250 16 October 2025 12 December 2025 250 16 December 2025 To be completed in 2026 500 For information on Additional Tier 1 loans that convert into shares, see Note P3.14 “Subordinated liabilities”. For infor- mation on share-based incentive plans, see Note P7.3 “Share-based payment plans” and for information on authorisations held by the Board of Directors, see “Share issue resolution” under “The Nordea share and external credit ratings” in the Board of Directors’ report. The table below shows the change during the year in the total number of Nordea shares as well as the change during the year in the number of outstanding Nordea shares where the non-cancelled treasury shares are deducted. Also the total number of own shares (treasury shares) as at 31 December is given in the table below. Total number of Nordea shares 2025 2024 Total number of shares at 1 January 3,502,631,963 3,528,279,508 New shares issued during the year – 8,000,000 Cancelled own shares during the year -68,790,718 -33,647,545 Total number of Nordea shares at 31 December 3,433,841,245 3,502,631,963 ===== SIDA 348 ===== Nordea Annual Report 2025 347 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.1 Equity, cont. Number of outstanding Nordea shares 2025 2024 Number of outstanding Nordea shares at 1 January 3,485,474,444 3,519,189,319 Repurchased own shares -68,888,643 -33,984,078 Shares granted in remuneration programmes for Nordea Bank Abp’s management 1,214,870 1,273,349 Trading portfolio and Nordea Bank Abp’s shares within portfolio schemes in Denmark 2,052,998 -1,004,146 Number of outstanding Nordea shares at 31 December 3,419,853,669 3,485,474,444 Number of own shares 31 Dec 2025 31 Dec 2024 Holdings of own shares related to treasury shares, trading portfolio and Nordea Bank Abp’s shares within portfolio schemes in Denmark1 13,987,576 17,130,649 – o f which treasury shares for remuneration purposes 10,299,096 11,513,966 1) T otal acquisition price for holdings of own shares at 31 December 2025 was EUR 64.4m (EUR 77.5m). Own shares bought and sold as part of market-making activities Nordea Bank Abp has bought and sold its own shares as part of its normal trading and market-making activities. The trades are specified in the table below. The 2025 Annual General Meeting resolved that Nordea Bank Abp, before the end of the next Annual General Meeting, may repurchase its own shares in the ordinary course of its securities trading business. The number of own shares to be repurchased may not exceed 175,000,000 shares. The 2025 Annual General Meeting resolved that Nordea Bank Abp, before the end of the next Annual General Meeting, may transfer own shares in the ordinary course of its securities trading business. The number of own shares to be transferred may not exceed 175,000,000 shares. Acquisitions and sales of own shares during the year 2025 Acquisitions1 Sales1 Quantity Average price, EUR Amount, EUR 000 Quantity Average price, EUR Amount, EUR 000 January 5,240,802 11.39 -59,692 -6,120,130 11.44 70,018 February 6,979,702 12.30 -85,868 -6,340,975 12.35 78,306 March 9,386,440 12.56 -117,915 -9,810,083 12.39 121,535 April 7,518,190 10.99 -82,635 -8,101,941 11.07 89,671 May 7,528,304 12.62 -95,017 -8,110,375 12.67 102,722 June 7,020,282 12.52 -87,890 -7,314,026 12.57 91,934 July 4,757,351 12.58 -59,846 -4,332,154 12.57 54,469 August 4,546,800 13.35 -60,685 -4,448,297 13.39 59,572 September 8,975,365 13.70 -123,003 -8,989,125 13.72 123,371 October 6,318,010 14.49 -91,578 -6,403,834 14.45 92,531 November 7,330,169 14.89 -109,172 -7,344,518 14.93 109,652 December 26,545,491 15.55 -412,740 -26,884,446 15.61 419,705 Total 102,146,906 -1,386,040 -104,199,904 1,413,486 2024 Acquisitions1 Sales1 Quantity Average price, EUR Amount, EUR 000 Quantity Average price, EUR Amount, EUR 000 January 5,553,761 11.34 -62,971 -5,889,972 11.30 66,535 February 6,532,537 10.90 -71,187 -6,971,391 10.95 76,356 March 6,397,549 10.93 -69,928 -5,435,594 10.87 59,076 April 7,795,627 10.85 -84,601 -7,327,819 10.85 79,482 May 7,300,345 11.30 -82,464 -7,164,347 11.30 80,947 June 4,952,268 11.28 -55,866 -5,073,284 11.30 57,337 July 6,338,147 10.83 -68,624 -6,521,354 10.87 70,883 August 10,226,971 10.43 -106,671 -10,395,093 10.45 108,647 September 4,507,465 10.55 -47,552 -4,043,594 10.56 42,707 October 7,138,308 10.62 -75,842 -7,244,108 10.64 77,053 November 4,536,445 10.78 -48,909 -5,090,453 10.78 54,870 December 6,989,023 10.64 -74,361 -6,107,291 10.64 64,970 Total 78,268,446 -848,976 -77,264,300 838,863 1) Excluding Nordea shares related to securities lending. P9.2 A dditional disclosures on the cash flow statement Accounting policies The cash flow statement shows inflows and out- flows of cash and cash equivalents during the year for total operations. Nordea Bank Abp’s cash flow statement has been prepared in accordance with the indirect method, whereby operating profit is adjusted for effects of non-cash transactions such as depreciation and loan losses. Cash flows are classi- fied by operating, investing and financing activities. Operating activities Cash flows from operating activities, which are the princi- pal revenue-producing activities, are mainly derived from profits during the year adjusted for items not included in cash flows and income taxes paid. Adjustment for items not included in cash flows includes: EURm 2025 2024 Depreciation, amortisation and impairment charges of tangible and intangible assets 420 387 Impairment of shares and interests in group undertakings and associated undertakings 8 -2 Loan losses 39 102 Unrealised gains/losses 2,510 130 Capital gains/losses (net) -55 6 Change in accruals and provisions -298 544 Translation differences -333 299 Change in fair value of hedged items, assets/liabilities (net) 174 645 Other 44 -129 Total 2,509 1,982 Operating assets and liabilities consist of assets and liabili- ties that are part of normal business activities, such as loans, deposits and debt securities in issue. Changes in derivatives are reported on a net basis. ===== SIDA 349 ===== Nordea Annual Report 2025 348 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.2 A dditional disclosures on the cash flow statement, cont. Cash flows from operating activities include interest pay- ments received and interest expenses paid in the following amounts: EURm 2025 2024 Interest payments received 12,331 15,387 Interest expenses paid -7,206 -9,900 Investing activities Investing activities include investments in and capital con- tributions to group undertakings as well as acquisition and disposal of non-current assets such as property and equip- ment and intangible and financial assets. Financing activities Financing activities are activities that result in changes in equity and subordinated liabilities such as new issues of shares, dividends and issued/amortised subordinated liabilities. Cash and cash equivalents The following items are included in “Cash and cash equivalents”: EURm 31 Dec 2025 31 Dec 2024 Cash and balances with central banks 36,338 44,862 Loans to central banks payable on demand 4 4 Loans to credit institutions payable on demand 401 349 Total 36,743 45,215 For the definition of cash and balances with central banks, see Note P3.6 “Cash and balances with central banks”. Loans to central banks and credit institutions payable on demand include liquid assets not represented by bonds or other interest-bearing securities. P9.3 Maturity analysis Accounting policy The following table presents the remaining contrac- tual maturities of the Nordea Bank Abp’s financial assets and liabilities. On-demand deposits are reported in the bucket “Under 3 months”. Loans where the lender can demand repayment upon request are reported according to their earliest pos- sible contractual maturity date when repayment can be demanded. For derivatives, the cash inflows and outflows are disclosed for both derivative assets and derivative liabilities as derivatives are managed on a net basis. For further information about remaining maturity, see also Note P10 “Risk and liquidity management”. Maturity analysis 31 Dec 2025, EURm Under 3 months 3–12 months 1–5 years Over 5 years Total Assets Cash and balances with central banks 36,338 – – – 36,338 Loans to credit institutions 13,179 28,067 45,875 326 87,447 Loans to the public 67,286 21,666 56,167 23,348 168,467 Interest-bearing securities1 1,761 13,818 62,614 10,676 88,869 Derivatives 130 208 17,717 186 18,241 Other assets 18,419 53 4,558 114 23,144 Total 137,113 63,812 186,931 34,650 422,506 Liabilities Deposits by credit institutions and central banks 38,508 2,169 1,350 – 42,027 Deposits and borrowings from the public 221,822 5,189 17,580 5,711 250,302 Debt securities in issue 15,024 32,898 25,469 5,600 78,991 Subordinated liabilities 921 – 5,276 2,613 8,810 Derivatives 192 276 17,995 394 18,857 Other liabilities 2,947 737 6,217 1,410 11,311 Total 279,414 41,269 73,887 15,728 410,298 31 Dec 2024, EURm Under 3 months 3–12 months 1–5 years Over 5 years Total Assets Cash and balances with central banks 44,862 – – – 44,862 Loans to credit institutions 10,272 24,684 39 834 349 75,139 Loans to the public 60,417 20,116 48,359 23,085 151,977 Interest-bearing securities1 8,394 10,366 56,399 5,820 80,979 Derivatives 4,133 3,823 6,525 11,573 26,054 Other assets 5,748 162 13,525 5,023 24,458 Total 133,826 59,151 164,642 45,850 403,469 Liabilities Deposits by credit institutions and central banks 34,165 2,043 98 0 36,306 Deposits and borrowings from the public 221,424 5,142 8,308 5,232 240,106 Debt securities in issue 20,197 27,949 17,594 4,387 70,127 Subordinated liabilities – 92 4,894 2,424 7,410 Derivatives 3,264 793 10,265 11,605 25,927 Other liabilities 3,136 558 5,946 869 10,509 Total 282,186 36,577 47,105 24,517 390,385 1) Incl uding “Debt securities eligible for refinancing with central banks” of EUR 78,724m (EUR 71,349m). ===== SIDA 350 ===== Nordea Annual Report 2025 349 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.4 Ass ets and liabilities in EUR and other currencies Accounting policies The following table presents the assets and liabili- ties of Nordea Bank Abp broken down by balances in EUR and in foreign currencies. A balance in for- eign currency is defined as a balance which should be translated into EUR when preparing financial statements. More information on translation of assets and liabilities can be found in Note P1 “Accounting policies“. 31 Dec 2025 31 Dec 2024 EURm Foreign currency Total EURm Foreign currency Total Assets Cash and balances with central banks 18,856 17,482 36,338 22,365 22,497 44,862 Loans to credit institutions 20,119 67,328 87,447 19,832 55,307 75,139 Loans to the public 66,114 102,353 168,467 57,311 94,666 151,977 Interest-bearing securities1 46,253 42,616 88,869 38,892 42,087 80,979 Derivatives 17,237 1,004 18,241 24,677 1,377 26,054 Other assets 35,277 7,550 42,827 35,989 7,465 43,454 Total 203,856 238,333 442,189 199,066 223,399 422,465 Liabilities Deposits by credit institutions and central banks 28,385 13,642 42,027 23,969 12,337 36,306 Deposits and borrowings from the public 80,482 169,820 250,302 70,636 169,470 240,106 Debt securities in issue 64,573 14,418 78,991 58,990 11,137 70,127 Derivatives 17,890 967 18,857 24,812 1,115 25,927 Other liabilities 17,768 6,172 23,940 16,758 5,115 21,873 Total 209,098 205,019 414,117 195,165 199,174 394,339 1) Incl uding “Debt securities eligible for refinancing with central banks” of EUR 78,724m (EUR 71,349m). P9.5 Other assets Accounting policies Other assets are assets that do not qualify for any of the other line items covering assets. Under the accrual basis of accounting, accrued income is income that is not yet invoiced and prepaid expenses are future expenses that are paid in advance. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet”, Note P3.3 “Classification and measurement” and Note P3.4 “Fair value”. This note includes the specifications for the balance sheet line items “Other assets” and “Prepaid expenses and accrued income”. Other assets EURm 31 Dec 2025 31 Dec 2024 Cash items in process of collection 115 153 Claims on securities settlement proceeds 1,348 1,111 Cash/margin receivables related to derivatives 3,194 5,118 Other 704 514 Total 5,361 6,896 Prepaid expenses and accrued income EURm 31 Dec 2025 31 Dec 2024 Accrued interest income 1 2 Other accrued income 171 555 Prepaid expenses 427 430 Total 599 987 P9.6 Other liabilities Accounting policies Other liabilities are liabilities that do not qualify for any of the other line items covering liabilities. Under the accrual basis of accounting, accrued expenses are expenses incurred but for which an invoice has not yet been received and prepaid income is future income that is received in advance. For additional accounting policies, see Note P3.1 “Recognition on and derecognition from the balance sheet”, Note P3.3 “Classification and measurement” and Note P3.4 “Fair value”. This note includes the specifications for the balance sheet line items “Other liabilities” and “Accrued expenses and prepaid income”. Other liabilities EURm 31 Dec 2025 31 Dec 2024 Liabilities on securities settlement proceeds 1,060 954 Sold, not held, securities 5,093 3,250 Cash items in process of collection 2,035 2,423 Accounts payable 76 91 Cash/margin payables related to derivatives 3,535 4,220 Other 1,755 1,721 Total 13,554 12,659 Accrued expenses and prepaid income EURm 31 Dec 2025 31 Dec 2024 Accrued interest expenses 16 10 Other accrued expenses 803 1,193 Prepaid income 63 54 Total 882 1,257 ===== SIDA 351 ===== Nordea Annual Report 2025 350 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.7 Cus tomer assets under management Accounting policies Customer assets under management are assets that are held and managed on behalf of customers but are not r ecognised on Nordea Bank Abp’s balance sheet. EURm 31 Dec 2025 31 Dec 2024 Asset management 156,225 134,660 Custody assets 251,491 238,352 Total 407,716 373,012 P9.8 Related party transactions Accounting policies Related party A related party is a person or entity that is related to Nordea Bank Abp. Related parties are grouped in the following categories: • Shareholders with significant influence • Group undertakings • Associated undertakings and joint ventures • Key management personnel • Other related parties. Shareholders with significant influence Shareholders with significant influence are share- holders that have the power to participate in the financial and operating policy decisions of Nordea Bank Abp but do not control those policies. Group undertakings Group undertakings are defined as the subsidiaries of the parent company, Nordea Bank Abp. Further information on the undertakings owned by Nordea Bank Abp is found in Note P8.1 “Investments in group undertakings”. Transactions between Nordea Bank Abp and its subsidiaries are performed according to the arm’s length principle in conformity with OECD require- ments on transfer pricing. Associated undertakings and joint ventures For the definition of associated undertakings and joint ventures, see Note P8.2 “Investments in associ- ated undertakings and joint ventures”. Key management personnel Key management personnel are the persons having authority and responsibility for planning, directing and controlling the activities in Nordea Bank Abp, directly or indirectly, including any director of the entity. Other related parties Other related parties comprise subsidiaries of share- holders with significant influence, close family mem- bers of key management personnel and companies controlled or jointly controlled by key management personnel or by close family members of key man- agement personnel. Related party transactions A related party transaction is a transfer of resources, services or obligations between Nordea Bank Abp and a related party, regardless of whether a price is charged. See also accounting policies in Note P7.4 “Key management personnel remuneration”. All transactions with related parties are made on the same criteria and terms as those of comparable transactions with external parties of similar standing, apart from loans granted to employees as well as certain other commit- ments to key management personnel, see Note P7.4 “Key management personnel remuneration” and Note P6.1 “Contingent liabilities”. In Nordea Bank Abp key management personnel includes the following positions: • Board of Directors • Chief Executive Officer (CEO) • Deputy Managing Director • Group Leadership Team. Loans to key management personnel amounted to EUR 2.9m (EUR 1.0m) and interest income on these loans amounted to EUR 0.0m (EUR 0.0m). Deposits from key management personnel amounted to EUR 1.2m (EUR 5.7m) and interest on these deposits amounted to EUR -0.0m (EUR -0.1m). Loan commitments to key manage- ment personnel amounted to EUR 4.0m (EUR 0.0m). For key management personnel employed by Nordea Bank Abp the same credit terms apply as for other employees. In Finland, the employee interest rate for mort- gage loans corresponds to Nordea Bank Abp’s funding cost with a margin of 30bp and for other loans the employee interest rate corresponds to Nordea Bank Abp’s funding cost with a margin of 45–500bp. In Denmark, the employee interest rate for loans is variable and between 2.50–4.45% depending of the type of mortgage. In Norway, the variable interest rate on loans to employees is 4.44%. Mortgage loans with fixed interest rates are offered with the same rates as mortgage loans to Premium cus- tomers. In Sweden, loans approved with employee condi- tions are a maximum at SEK 3m for any type of loan and maximum amount at SEK 0.4m for car loans. The interest rate for these loans is 215bp lower than the corresponding interest rate for external customers. For interest on loans above SEK 3m and SEK 0.4m respectively, the employees receive the same maximal discount as Nordea’s best exter- nal customers. Loans to family members of key management person- nel who do not live in the same household as key manage- ment personnel are granted on normal market terms, as are loans to key management personnel who are not employed by Nordea Bank Abp. For more information about transactions with key management personnel, see Note P7.4 “Key management personnel remuneration”. The loan quality for key management personnel and their family members is good with no significant increase in credit risk. Loan loss provisions for key management personnel are included in the collectively assessed allow- ances shown in Note P2.10 “Net loan losses”. Nordea Bank Abp has not pledged any assets on behalf of key management personnel or their close family members. For information about remuneration to key manage- ment personnel, see Note P7.4 “Key management person- nel remuneration”. ===== SIDA 352 ===== Nordea Annual Report 2025 351 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P9.8 Related party transactions, cont. The information below is presented from Nordea Bank Abp’s perspective, meaning that the information shows the effect of related party transactions on Nordea Bank Abp’s figures. Related party transactions EURm 31 Dec 2025 31 Dec 2024 Group undertakings Associated undertakings and joint ventures Other related parties2 Group undertakings Associated undertakings and joint ventures Other related parties2 Assets Debt securities eligible for refinancing with central banks 11,555 – – 11,180 – – Loans to credit institutions 77,313 – – 68,788 – – Loans to the public 3,395 33 0 2,600 25 0 Interest-bearing securities 6,621 – – 6,287 – – Derivatives 626 – – 849 – – Other assets 326 – – 290 – – Prepaid expenses and accrued income 229 – – 260 – – Total assets 100,065 33 0 90,254 25 0 Liabilities Deposits by credit institutions and central banks 7,897 0 – 7,673 0 – Deposits and borrowings from the public 3,422 0 38 3,354 1 11 Debt securities in issue 251 – – 202 – – Derivatives 825 0 – 943 3 – Other liabilities 1,194 0 0 533 0 0 Accrued expenses and deferred income 30 – – 13 – – Provisions – 0 – – 0 – Total liabilities 13,619 0 38 12,718 4 11 Off-balance sheet items1 164,963 0 5 159,476 9 5 Related party transactions, cont. EURm 2025 2024 Group undertakings Associated undertakings and joint ventures Other related parties2 Group undertakings Associated undertakings and joint ventures Other related parties2 Income statement Interest income 2,882 0 0 3,259 0 0 Interest expense -129 0 0 280 0 0 Net fee and commission income 499 0 0 466 0 0 Total net result from items at fair value3 -50 0 0 -117 -1 0 Other operating income 683 – 0 745 – 0 Total operating expenses -98 0 – -87 0 – Profit before loan losses 3,787 0 0 4,546 -1 0 1) Including nominal values of derivatives. 2) Shareholders with significant influence (including their subsidiaries), close family members of key management personnel at Nordea Bank Abp and companies controlled or jointly controlled by key management personnel or by close family members of key management personnel at Nordea Bank Abp are considered to be related parties to Nordea Bank Abp. Other related parties also include Nordea Bank Abp’s pension foundations. 3) Including the income statement line items “Net result from securities at fair value through profit or loss” and “Net result from securities at fair value through fair value reserve”. ===== SIDA 353 ===== Nordea Annual Report 2025 352 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity management 1. Risk governance ..................................................................................352 2. Credit risk ................................................................................................352 3. Counterparty credit risk ..................................................................367 4. Market risk ..............................................................................................367 5. Operational risk ....................................................................................367 6. Compliance risk ....................................................................................367 7. Liquidity risk ..........................................................................................367 1. Risk governance Maintaining organisational risk awareness is an integral part of Nordea Bank Abp’s business strategy. Nordea Bank Abp has defined clear risk and liquidity management frameworks, including policies and instructions covering all risk exposures. For more information on Nordea Bank Abp’s risk and liquidity management, see section 1 “Risk governance” in the Group’s Note G11. Internal Control Framework See section 1.1 “Internal Control Framework” in the Group’s Note G11. Decision-making bodies for risk, liquidity and capital management See section 1.2 “Decision-making bodies for risk, liquidity and capital management” in the Group’s Note G11. Governance of risk management and compliance See section 1.3 “Governance of risk management and compliance” in the Group’s Note G11. Disclosure requirements of the Capital Requirements Regulation – Capital and Risk Management Report 2025 Additional information on risk and capital management is presented in the Capital and Risk Management Report 2025, in accordance with the Capital Requirements Regulation. 2. Credit risk Credits granted within Nordea Bank Abp must conform to the common principles established for Nordea. Nordea Bank Abp strives to have a well-diversified credit portfolio that is adapted to the structure of its home markets and economies. Nordea Bank Abp’s loan portfolio is split by type of exposure class (corporate and retail) or by sector, then further broken down by segment, industry and geo- graphy and reported monthly, quarterly and annually. For more information on the key principles for managing Nordea Bank Abp’s risk exposures, see the Group’s Note G11, section 2 “Credit risk”. For credit risk management, credit risk definition and identification as well as credit risk mitigation, see sections 2 “Credit risk”, 2.2 “Credit risk definition and identification” and 2.3 “Credit risk mitigation” in the Group’s Note G11. Exposures, allowances and provisions Including on- and off-balance sheet exposures, the total credit risk exposure at year end was EUR 522bn (EUR 488bn). Credit risk is measured, monitored and segmented in different ways. On-balance sheet lending consists of amor- tised cost lending and fair value lending and constitutes the major part of the credit portfolio. Amortised cost lending is the basis for impaired loans, allowances and loan losses. Credit risk in lending is measured and presented as the principal amount of on-balance sheet claims, i.e. loans to credit institutions and to the public, and off-balance sheet potential claims on customers and counterparties, net after allowances. Credit risk exposure also includes the risk related to derivative contracts and securities financing. Nordea Bank Abp’s loans to the public increased by 10.9% to EUR 168bn during 2025 (EUR 152bn). The corporate portfolio increased approximately 14.2%, while the house- hold portfolio decreased by 0.8%. The overall credit qual- ity is solid with strongly rated customers, and the macroe- conomic outlook has improved during the year. Of the lending to the public portfolio, corporate customers accounted for 63.5% (63.7%), reverse repurchase agree- ments for 21.4% (18.8%), household customers for 14.1% (15.6%) and the public sector for 1.0% (1.8%). Loans to central banks and credit institutions increased to EUR 87bn at the end of 2025 (EUR 75bn). Credit-impaired loans at amortised cost increased to EUR 1,957m (EUR 1,889m). The increase was mainly related to the corporate portfolio, which increased by 4% and EUR 62m to EUR 1,447m. The largest increase is in Consumer discretionary and services, increasing by EUR 136m, driven by the Media and entertainment and Retail trade industries and secondly in Commercial and professional services in the Industrials industry group, which increased from EUR 29m to EUR 89m. This is partly offset by smaller reductions in Financial institutions, Maritime and Real estate industry groups. Net loan losses for 2025 amounted to EUR 23m (EUR 83m), corresponding to an annual net loan loss ratio of 2bp (7bp). Net loan losses consisted of EUR 9m in the corporate portfolio with some concentration in the industrials and consumer discretionary portfolios. The household portfolio had net loan losses of EUR 14m. At the end of the year, management judgement allowances amounted to EUR 179m (EUR 300m). The management judgement is intended to cover excess losses from macroeconomic shocks and uncertain- ties that are regarded as extraordinary in relation to a nor- mal contraction in the economic cycle and are therefore not adequately captured by the existing IFRS 9 ECL mod- elling and known IFRS 9 model and data issues will be captured in later model updates. The uncertainties are mainly connected to geopolitical and macro-economic conditions. The level at the end of 2025 compared with the end of 2024 decreased by EUR 121m reflecting a continued decline in the financial and economic risks influencing loan losses, driven by decreased uncertainty and the per- sistence of strong credit quality. Total allowances for 2025 amounted to EUR 1,188m (1,395m). Loan allowances for 2025 amounted to EUR 998m (1,179m). This was driven by reduced allowances in all stages. Of loan allowances to the public, stage 1 accounted for EUR 59m (94m), stage 2 for EUR 184m (EUR 240m) and stage 3 for EUR 753m (EUR 840). The coverage ratio was 0.03% for stage 1 (0.05%), 2.9% for stage 2 (3.1%) and 38% for stage 3 (44%). Stage 2 loans at amortised cost decreased to EUR 6,467m (EUR 7,658m). The decrease is mainly due to improved economic environment and positive portfolio migration particularly in the second half of 2025, affecting both the household and corporate portfolio. Stage 2 cover- age ratio decreased to 2.9% (3.1%). Forbearance is eased terms or restructuring due to the borrower experiencing or about to experience financial dif- ficulties. The intention of granting forbearance for a limited time period is to help the customer return to a sustainable financial situation ensuring full repayment of the outstand- ing debt. Examples of eased terms are changes in amorti- sation profile, repayment schedule, customer margin as well as easing of covenants. Forbearance is undertaken on a selective and individual basis for all customers and is fol- lowed by impairment testing. Forborne loans decreased by EUR 214m to EUR 2,046m during the year, of which 87% related to the corporate portfolios and 13% related to the household portfolios. The forbearance coverage ratio increased from 18% to 20%. ===== SIDA 354 ===== Nordea Annual Report 2025 353 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity management , cont. Maximum exposure to credit risk EURm Note 31 Dec 2025 31 Dec 2024 Amortised cost and fair value through fair value reserve Financial assets at fair value through profit or loss Amortised cost and fair value through fair value reserve Financial assets at fair value through profit or loss Loans to credit institutions P3.3, P3.7 84,209 3,238 73,163 1,976 Loans to the public P3.3, P3.7 132,343 36,124 123,348 28,629 Interest-bearing securities1 P3.3, P3.8 62,697 26,172 54,865 26,114 Derivatives P3.3, P3.10 – 18,241 – 26,054 Off-balance sheet items P6.1, P6.2 159,019 – 153,362 – Total 438,268 83,775 404,738 82,773 1) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. Collateral distribution 31 Dec 2025 31 Dec 2024 Financial collateral 3.1% 2.3% Receivables 1.3% 1.3% Residential real estate 39.8% 32.3% Commercial real estate 42.2% 47.2% Other physical collateral 13.6% 16.9% Total 100.0% 100.0% Allowances for credit risk EURm Note 31 Dec 2025 31 Dec 2024 Loans to credit institutions P3.7 2 5 Loans to the public P3.7 996 1,174 Interest-bearing securities measured at fair value through fair value reserve or amortised cost 1 P3.8 2 2 Off-balance sheet items P5 188 215 Total 1,188 1,396 1) Including the balance sheet line item “Debt securities eligible for refinancing with central banks”. Assets taken over for protection of claims 1 EURm 31 Dec 2025 31 Dec 2024 Current assets, carrying amount: Shares and other participations 2 2 Total 2 2 1) In accordance with Nordea Bank Abp’s policy for taking over assets for protec- tion of claims, which is in compliance with the local banking business acts wher- ever Nordea Bank Abp is located. Assets used as collateral for the loan are gen- erally taken over when the customer is not able to fulfil its obligations towards Nordea Bank Abp. The assets taken over are disposed at the latest when full recovery is reached. Loan-to-value 1 Retail mortgage exposure 31 Dec 2025 31 Dec 2024 EURbn % EURbn % <50% 11.8 84.5 11.8 83.9 50–70% 1.5 10.6 1.5 11.0 71–80% 0.3 2.4 0.4 2.5 81–90% 0.2 1.2 0.2 1.2 >90% 0.2 1.3 0.2 1.3 Total 14.0 100.0 14.0 100.0 1) The amount and per sentages in the table includes the relevant part of a loan, not the total loan. Forbearance EURm 31 Dec 2025 31 Dec 2024 Forborne loans 2,046 2,259 - of which defaulted 976 964 Allowances for individually assessed impaired and forborne loans 407 417 - of which defaulted 374 374 Key ratios 31 Dec 2025 31 Dec 2024 Forbearance ratio1 0.9% 1.1% Forbearance coverage ratio2 19.9% 18.5% - of which defaulted 38.3% 38.8% 1) Forborne loans/Loans held at amortised cost before allowances. 2) Individual allo wances on forborne loans/Forborne loans. Loans to corporate customers, by size of loans Size in EURm 31 Dec 2025 31 Dec 2024 Loans EURm % Loans EURm % 0–10 24,922 17 26,085 21 11–50 38,099 27 35,001 28 51–100 24,773 17 23,924 19 101–250 37,409 26 26,819 21 251–500 11,377 8 7,531 6 501– 6,564 5 5,990 5 Total 143,144 100 125,350 100 Credit-impaired loans and ratios EURm 2025 2024 Gross credit-impaired loans, amortised cost, EURm 1,957 1,889 - of which servicing 913 877 - of which non-servicing 1,044 1,012 Impairment ratio (stage 3), gross, bp 90 96 Impairment ratio (stage 3), net, bp 55 53 Allowances in relation to loans (stages 1 and 2), bp 11 17 Total allowance ratio (stages 1, 2 and 3), bp 46 60 Allowances in relation to credit-impaired loans (stage 3), % 38 44 Past due loans EURm 31 Dec 2025 31 Dec 2024 Corporate customers Household customers Corporate customers Household customers 6–30 days 129 176 98 180 31–60 days 44 49 27 54 61–90 days 15 23 18 30 >90 days 215 244 352 266 Total 403 492 495 531 Past due (incl. impaired) loans divided by loans to the public aft er allowances, % 0.3 2.1 0.4 2.2 Net loan losses and loan loss ratios 2025 2024 Net loan losses, EURm -23 -83 Net loan loss ratio, amortised cost, bp 2 7 - of which stage 3 11 11 - of which stages 1 and 2 -9 -4 Net loan loss ratio, including fair value gains, bp1 1 5 Net loan loss ratio, Personal Banking, bp1 8 1 Net loan loss ratio, Business Banking, bp1 1 20 Net loan loss ratio, Large Corporates & Institutions, bp1 1 -1 1) Net loan losses including loan losses from loans at fair value recognised through fair value reserve divided by total lending at amortised cost and at fair value, bp. ===== SIDA 355 ===== Nordea Annual Report 2025 354 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost and fair value 31 Dec 2025, EURm Denmark Finland Norway Sweden1 Other Total Financial institutions 4,255 3,590 828 12,262 1,017 21,952 Agriculture 520 262 3,066 89 5 3,942 Cr ops, plantations and hunting 269 126 13 11 5 424 Animal husbandr y 214 132 21 4 – 371 Fishing and aquacul ture 37 4 3,032 74 0 3,147 Natural resources 37 693 400 490 77 1,697 P aper and forest products 32 372 157 384 77 1,022 Mining and suppor ting activities 4 314 10 105 – 433 Oil , gas and offshore 1 7 233 1 – 242 Consumer staples 2,258 717 812 1,813 48 5,648 F ood processing and beverages 282 207 533 615 0 1,637 Hous ehold and personal products 85 68 121 437 1 712 Healthcare 1,891 442 158 761 47 3,299 Consumer discretionary and services 801 1,948 2,201 4,070 23 9,043 C onsumer durables 86 191 204 1,814 22 2,317 Media and en tertainment 186 277 87 562 0 1,112 R etail trade 387 1,186 771 1,281 1 3,626 Air tr ansportation 90 1 28 31 0 150 A ccommodation and leisure 51 207 575 208 – 1,041 T elecommunication services 1 86 536 174 – 797 Industrials 4,545 4,210 6,986 7,982 202 23,925 Materials 784 546 191 458 38 2,017 Capit al goods 514 1,000 190 1,558 41 3,303 C ommercial and professional services 870 693 1,483 1,621 95 4,762 Construction 371 638 3,063 1,185 0 5,257 Whol esale trade 1,334 592 750 1,899 7 4,582 L and transportation 323 238 53 472 17 1,103 IT services 349 503 1,256 789 4 2,901 Loans to the public measured at amortised cost and fair value, cont. 31 Dec 2025, EURm Denmark Finland Norway Sweden1 Other Total Maritime 257 137 3,958 54 81 4,487 Shipbuilding 0 1 26 0 – 27 Shipping 0 57 3,819 37 81 3,994 Maritime s ervices 257 79 113 17 – 466 Utilities and public service 1,100 2,919 1,774 770 1 6,564 Utilitie s distribution 914 1,130 1,025 512 0 3,581 P ower production 153 1,541 564 159 1 2,418 Public s ervices 33 248 185 99 0 565 Real estate 898 7,813 9,271 9,692 – 27,674 C ommercial real estate 748 4,798 7,980 9,055 – 22,581 R esidential real estate companies 12 1,037 571 520 – 2,140 Tenant-owned associations 138 1,978 720 117 – 2,953 Other industries 190 0 0 4 1,894 2,088 Total corporate 14,861 22,289 29,296 37,226 3,348 107,020 Housing loans 6,296 2,985 3,333 0 – 12,614 Collateralised lending 2,935 3,693 342 746 – 7,716 Non-collateralised lending 639 479 322 1,904 – 3,344 Household 9,870 7,157 3,997 2,650 – 23,674 Public sector 623 545 67 412 3 1,650 Reverse repurchase agreements – 36,123 – – – 36,123 Loans to the public by country 25,354 66,114 33,360 40,288 3,351 168,467 o f which loans at fair value – 36,123 – – – 36,123 ===== SIDA 356 ===== Nordea Annual Report 2025 355 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost and fair value 31 Dec 2024, EURm Denmark Finland Norway Sweden1 Other Total Financial institutions 3,562 3,211 818 9,338 980 17,909 Agriculture 553 294 2,648 46 4 3,545 Cr ops, plantations and hunting 307 143 19 9 4 482 Animal husbandr y 217 147 22 5 – 391 Fishing and aquacul ture 29 4 2,607 32 – 2,672 Natural resources 51 734 539 293 91 1,708 P aper and forest products 42 472 181 275 91 1,061 Mining and suppor ting activities 6 254 10 18 – 288 Oil , gas and offshore 3 8 348 0 – 359 Consumer staples 2,804 696 991 1,846 55 6,392 F ood processing and beverages 165 229 713 490 8 1,605 Hous ehold and personal products 89 66 121 406 2 684 Healthcare 2,550 401 157 950 45 4,103 Consumer discretionary and services 902 1,865 2,352 4,040 24 9,183 C onsumer durables 102 219 233 1,814 23 2,391 Media and en tertainment 257 291 103 608 0 1,259 R etail trade 358 1,045 888 1,155 0 3,446 Air tr ansportation 123 1 16 28 – 168 A ccommodation and leisure 59 241 603 206 – 1,109 T elecommunication services 3 68 509 229 1 810 Industrials 4,015 3,980 6,080 6,570 342 20,987 Materials 594 414 191 517 50 1,766 Capit al goods 517 914 146 1,084 49 2,710 C ommercial and professional services 719 464 1,398 1,058 203 3,842 Construction 417 790 2,746 1,057 – 5,010 Whol esale trade 1,427 615 726 1,883 23 4,674 L and transportation 69 219 126 347 15 776 IT services 272 564 747 624 2 2,209 Loans to the public measured at amortised cost and fair value, cont. 31 Dec 2024, EURm Denmark Finland Norway Sweden1 Other Total Maritime 137 146 4,158 55 155 4,651 Shipbuilding – 0 116 0 – 116 Shipping 30 56 3,883 34 155 4,158 Maritime s ervices 107 90 159 21 0 377 Utilities and public service 726 2,737 1,763 664 0 5,890 Utilitie s distribution 578 1,170 999 372 – 3,119 P ower production 95 1,322 595 201 0 2,213 Public s ervices 53 245 169 91 0 558 Real estate 886 7,306 8,850 7,513 – 24,555 C ommercial real estate 681 4,423 7,577 6,954 – 19,635 R esidential real estate companies 56 857 462 400 – 1,775 Tenant-owned associations 149 2,026 811 159 – 3,145 Other industries 107 0 – 1 1,792 1,900 Total corporate 13,743 20,969 28,199 30,366 3,443 96,720 Housing loans 6,101 3,067 3,298 0 – 12,466 Collateralised lending 3,282 3,737 301 798 – 8,118 Non-collateralised lending 685 484 351 1,761 – 3,281 Household 10,068 7,288 3,950 2,559 – 23,865 Public sector 676 425 17 1,642 3 2,763 Reverse repurchase agreements – 28,629 – – – 28,629 Loans to the public by country 24,487 57,311 32,166 34,567 3,446 151,977 o f which loans at fair value – 28,629 – – – 28,629 ===== SIDA 357 ===== Nordea Annual Report 2025 356 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost, broken down by sector and industry 31 Dec 2025, EURm Gross Allowances Net Net loan loss1Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Financial institutions 21,654 309 17 6 10 12 21,952 21 Agriculture 3,779 139 57 4 5 24 3,942 11 Cr ops, plantations and hunting 352 60 26 0 4 10 424 3 Animal husbandr y 311 46 29 0 1 14 371 9 Fishing and aquacul ture 3,116 33 2 4 0 0 3,147 -1 Natural resources 1,640 52 18 1 2 10 1,697 1 P aper and forest products 973 43 18 1 1 10 1,022 -2 Mining and suppor ting activities 424 9 0 0 0 0 433 0 Oil , gas and offshore 243 0 0 0 1 0 242 3 Consumer staples 5,418 227 21 3 8 7 5,648 4 F ood processing and beverages 1,532 104 11 1 5 4 1,637 1 Hous ehold and personal products 701 10 3 0 1 1 712 1 Healthcare 3,185 113 7 2 2 2 3,299 2 Consumer discretionary and services 8,071 671 560 3 22 234 9,043 -11 C onsumer durables 2,046 236 79 1 4 39 2,317 4 Media and en tertainment 871 117 152 0 5 23 1,112 6 R etail trade 3,255 244 286 2 11 146 3,626 -21 Air tr ansportation 150 0 1 0 0 1 150 1 A ccommodation and leisure 954 72 42 0 2 25 1,041 -3 T elecommunication services 795 2 0 0 0 0 797 2 Industrials 21,838 1,877 547 14 89 234 23,925 -33 Materials 1,756 227 60 1 12 13 2,017 -3 Capit al goods 3,051 250 38 2 18 16 3,303 -2 C ommercial and professional services 4,442 288 89 3 13 41 4,762 -20 Construction 4,716 500 136 4 13 78 5,257 11 Whol esale trade 4,145 393 125 1 28 52 4,582 -11 L and transportation 1,053 40 25 0 1 14 1,103 -1 IT services 2,675 179 74 3 4 20 2,901 -7 Loans to the public measured at amortised cost, broken down by sector and industry, cont. 31 Dec 2025, EURm Gross Allowances Net Net loan loss1Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Maritime 4,461 29 0 2 1 0 4,487 5 Shipbuilding 27 0 0 0 0 0 27 2 Shipping 3,980 16 0 2 0 0 3,994 4 Maritime s ervices 454 13 0 0 1 0 466 -1 Utilities and public service 6,406 105 87 3 2 29 6,564 -3 Utilitie s distribution 3,483 45 83 2 1 27 3,581 -6 P ower production 2,413 5 1 1 0 0 2,418 3 Public s ervices 510 55 3 0 1 2 565 0 Real estate 26,344 1,273 140 10 9 64 27,674 -3 Other industries 2,088 0 0 0 0 0 2,088 -1 Total corporate 101,699 4,682 1,447 46 148 614 107,020 -9 Housing loans 11,793 689 186 2 9 43 12,614 -16 Collateralised lending 7,003 632 175 5 11 78 7,716 4 Non-collateralised lending 2,818 438 127 6 16 17 3,344 -2 Household 21,614 1,759 488 13 36 138 23,674 -14 Public sector 1,621 8 22 0 0 1 1,650 0 Loans to the public 124,934 6,449 1,957 59 184 753 132,343 -23 Loans to credit institutions 84,193 18 0 2 0 0 84,209 – Total 209,127 6,467 1,957 61 184 753 216,552 -23 1) The t able shows net loan losses related to on- and off-balance sheet exposures for the full year 2025. ===== SIDA 358 ===== Nordea Annual Report 2025 357 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost, broken down by sector and industry 31 Dec 2024, EURm Gross Allowances Net Net loan loss1Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Financial institutions 17,405 498 59 6 17 30 17,909 -8 Agriculture 3,347 185 56 3 14 26 3,545 -4 Cr ops, plantations and hunting 407 77 16 0 11 7 482 -11 Animal husbandr y 311 62 40 0 3 19 391 8 Fishing and aquacul ture 2,629 46 0 3 0 0 2,672 -1 Natural resources 1,662 46 12 2 2 8 1,708 -6 P aper and forest products 1,019 41 12 1 2 8 1,061 -4 Mining and suppor ting activities 283 5 0 0 0 0 288 0 Oil , gas and offshore 360 0 0 1 0 0 359 -2 Consumer staples 6,215 183 16 7 7 8 6,392 18 F ood processing and beverages 1,515 92 8 2 3 5 1,605 11 Hous ehold and personal products 670 14 3 1 1 1 684 0 Healthcare 4,030 77 5 4 3 2 4,103 7 Consumer discretionary and services 8,157 857 424 9 32 214 9,183 -25 C onsumer durables 2,121 243 83 1 5 50 2,391 -7 Media and en tertainment 1,080 157 55 1 2 30 1,259 -7 R etail trade 2,978 357 248 5 22 110 3,446 -14 Air tr ansportation 165 2 2 0 0 1 168 0 A ccommodation and leisure 1,007 94 31 2 3 18 1,109 4 T elecommunication services 806 4 5 0 0 5 810 -1 Industrials 18,862 2,007 475 19 84 254 20,987 -56 Materials 1,640 86 67 2 4 21 1,766 -12 Capit al goods 2,443 273 24 3 13 14 2,710 7 C ommercial and professional services 3,522 317 29 -1 9 18 3,842 -11 Construction 4,348 624 147 6 25 78 5,010 -17 Whol esale trade 4,201 442 114 5 24 54 4,674 -23 L and transportation 711 67 11 1 3 9 776 12 IT services 1,997 198 83 3 6 60 2,209 -12 Loans to the public measured at amortised cost, broken down by sector and industry, cont. 31 Dec 2024, EURm Gross Allowances Net Net loan loss1Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Maritime 4,502 130 51 0 1 31 4,651 11 Shipbuilding 4 113 0 0 1 0 116 -1 Shipping 4,135 3 51 0 0 31 4,158 12 Maritime s ervices 363 14 0 0 0 0 377 0 Utilities and public service 5,760 93 103 4 2 60 5,890 -59 Utilitie s distribution 3,041 39 100 2 1 58 3,119 -58 P ower production 2,206 7 1 1 0 0 2,213 -1 Public s ervices 513 47 2 1 1 2 558 0 Real estate 22,865 1,592 185 16 14 57 24,555 38 Other industries 1,897 0 4 0 0 1 1,900 3 Total corporate 90,672 5,591 1,385 66 173 689 96,720 -88 Housing loans 11,577 794 177 6 15 61 12,466 21 Collateralised lending 7,265 736 198 5 19 57 8,118 3 Non-collateralised lending 2,728 526 109 17 33 32 3,281 -19 Household 21,570 2,056 484 28 67 150 23,865 5 Public sector 2,742 2 20 0 0 1 2,763 0 Loans to the public 114,984 7,649 1,889 94 240 840 123,348 -83 Loans to credit institutions 73,159 9 0 5 0 0 73,163 – Total 188,143 7,658 1,889 99 240 840 196,511 -83 1) The t able shows net loan losses related to on- and off-balance sheet exposures for the full year 2024. ===== SIDA 359 ===== Nordea Annual Report 2025 358 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value) 31 Dec 2025, EURm Denmark Finland Norway Sweden Outside Nordic Total Financial institutions 10 4 2 1 — 17 Agriculture 25 31 1 0 — 57 Cr ops, plantations and hunting 10 16 – 0 — 26 Animal husbandr y 15 14 0 0 — 29 Fishing and aquacul ture – 1 1 – — 2 Natural resources 5 13 0 0 — 18 P aper and forest products 5 13 0 0 — 18 Mining and suppor ting activities – 0 – – — 0 Oil , gas and offshore – 0 – – — 0 Consumer staples 1 9 8 3 — 21 F ood processing and beverages 0 3 8 0 — 11 Hous ehold and personal products 0 3 – 0 — 3 Healthcare 1 3 0 3 — 7 Consumer discretionary and services 175 159 21 205 0 560 C onsumer durables 2 44 7 26 0 79 Media and en tertainment 1 21 0 130 — 152 R etail trade 169 71 13 33 — 286 Air tr ansportation – 0 1 0 — 1 A ccommodation and leisure 3 23 0 16 — 42 T elecommunication services – 0 – 0 — 0 Industrials 105 128 125 189 — 547 Materials 7 4 5 44 — 60 Capit al goods 13 21 0 4 — 38 C ommercial and professional services 51 13 5 20 — 89 Construction 5 45 64 22 — 136 Whol esale trade 26 17 49 33 — 125 L and transportation 1 17 0 7 — 25 IT services 2 11 2 59 — 74 Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value), cont. 31 Dec 2025, EURm Denmark Finland Norway Sweden Outside Nordic Total Maritime – 0 – – — 0 Shipbuilding – 0 – – — 0 Shipping – 0 – – — 0 Maritime s ervices – 0 – – — 0 Utilities and public service 65 4 0 18 — 87 Utilitie s distribution 64 3 – 16 — 83 P ower production – 1 – 0 — 1 Public s ervices 1 0 – 2 — 3 Real estate 5 101 27 7 — 140 Other industries – 0 – 0 — 0 Total corporate 391 449 184 423 0 1,447 Housing loans 38 114 34 – — 186 Collateralised lending 72 97 1 5 — 175 Non-collateralised lending 24 19 12 72 — 127 Household 134 230 47 77 — 488 Public sector 22 – – 0 — 22 Total impaired loans 547 679 231 500 0 1,957 o f which fair value – – 0 – 0 0 ===== SIDA 360 ===== Nordea Annual Report 2025 359 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value) 31 Dec 2024, EURm Denmark Finland Norway Sweden Outside Nordic Total Financial institutions 52 3 4 0 – 59 Agriculture 33 23 0 0 – 56 Cr ops, plantations and hunting 10 6 – 0 – 16 Animal husbandr y 23 17 0 – – 40 Fishing and aquacul ture – 0 0 – – 0 Natural resources 5 6 1 0 – 12 P aper and forest products 5 6 1 – – 12 Mining and suppor ting activities – 0 0 – – 0 Oil , gas and offshore – 0 – – – 0 Consumer staples 3 10 1 2 – 16 F ood processing and beverages 1 6 0 1 – 8 Hous ehold and personal products 0 3 – 0 – 3 Healthcare 2 1 1 1 – 5 Consumer discretionary and services 129 136 23 136 – 424 C onsumer durables 1 48 2 32 – 83 Media and en tertainment 2 18 0 35 – 55 R etail trade 121 50 20 57 – 248 Air tr ansportation – 2 – 0 – 2 A ccommodation and leisure 5 18 1 7 – 31 T elecommunication services – 0 – 5 – 5 Industrials 96 139 112 128 – 475 Materials 52 5 5 5 – 67 Capit al goods 3 19 0 2 – 24 C ommercial and professional services 8 11 5 5 – 29 Construction 3 73 55 16 – 147 Whol esale trade 28 14 44 28 – 114 L and transportation 1 4 0 6 – 11 IT services 1 13 3 66 – 83 Credit-impaired loans (stage 3) to the public by country and industry (including loans at fair value), cont. 31 Dec 2024, EURm Denmark Finland Norway Sweden Outside Nordic Total Maritime – 0 51 – – 51 Shipbuilding – 0 – – – 0 Shipping – 0 51 – – 51 Maritime s ervices – 0 – – – 0 Utilities and public service 98 4 1 0 – 103 Utilitie s distribution 98 2 – 0 – 100 P ower production – 1 – 0 – 1 Public s ervices 0 1 1 0 – 2 Real estate 5 123 45 12 – 185 Other industries 4 0 – – – 4 Total corporate 425 444 238 278 – 1,385 Housing loans 32 113 32 – – 177 Collateralised lending 79 106 1 12 – 198 Non-collateralised lending 19 17 10 63 – 109 Household 130 236 43 75 – 484 Public sector 20 – – – – 20 Total impaired loans 575 680 281 353 – 1,889 o f which fair value – – – – – – ===== SIDA 361 ===== Nordea Annual Report 2025 360 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost 31 Dec 2025, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio gross, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio %2 Loans measured at amor- tised cost Financial institutions 21 10 17 8 28 6 10 12 71 21,952 Agriculture 11 28 57 143 33 4 5 24 42 3,942 Cr ops, plantations and hunting 3 71 26 594 14 0 4 10 38 424 Animal husbandr y 9 243 29 751 15 0 1 14 48 371 Fishing and aquacul ture -1 -3 2 6 4 4 0 0 0 3,147 Natural resources 1 6 18 105 13 1 2 10 56 1,697 P aper and forest products -2 -20 18 174 12 1 1 10 56 1,022 Mining and suppor ting activities 0 0 0 0 0 0 0 0 0 433 Oil , gas and offshore 3 124 0 0 1 0 1 0 0 242 Consumer staples 4 7 21 37 18 3 8 7 33 5,648 F ood processing and beverages 1 6 11 67 10 1 5 4 36 1,637 Hous ehold and personal products 1 14 3 42 2 0 1 1 33 712 Healthcare 2 6 7 21 6 2 2 2 29 3,299 Consumer discretionary and services -11 -12 560 602 259 3 22 234 42 9,043 C onsumer durables 4 17 79 335 44 1 4 39 49 2,317 Media and en tertainment 6 54 152 1,333 28 0 5 23 15 1,112 R etail trade -21 -58 286 756 159 2 11 146 51 3,626 Air tr ansportation 1 67 1 66 1 0 0 1 100 150 A ccommodation and leisure -3 -29 42 393 27 0 2 25 60 1,041 Telecommunication services 2 25 0 0 0 0 0 0 0 797 Industrials -33 -14 547 225 337 14 89 234 43 23,925 Materials -3 -15 60 294 26 1 12 13 22 2,017 Capit al goods -2 -6 38 114 36 2 18 16 42 3,303 Commercial and professional services -20 -42 89 185 57 3 13 41 46 4,762 Construction 11 21 136 254 95 4 13 78 57 5,257 Whol esale trade -11 -24 125 268 81 1 28 52 42 4,582 L and transportation -1 -9 25 224 15 0 1 14 56 1,103 IT services -7 -24 74 253 27 3 4 20 27 2,901 Loans to the public measured at amortised cost, cont. 31 Dec 2025, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio gross, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio %2 Loans measured at amor- tised cost Maritime 5 11 0 0 3 2 1 0 0 4,487 Shipbuilding 2 741 0 0 0 0 0 0 0 27 Shipping 4 10 0 0 2 2 0 0 0 3,994 Maritime s ervices -1 -21 0 0 1 0 1 0 0 466 Utilities and public service -3 -5 87 132 34 3 2 29 33 6,564 Utilitie s distribution -6 -17 83 230 30 2 1 27 33 3,581 P ower production 3 12 1 4 1 1 0 0 0 2,418 Public s ervices 0 0 3 53 3 0 1 2 67 565 Real estate -3 -1 140 50 83 10 9 64 46 27,674 Other industries -1 -5 0 0 0 0 0 0 0 2,088 Total corporate -9 -1 1,447 134 808 46 148 614 42 107,020 Housing loans -16 -13 186 147 54 2 9 43 23 12,614 Collateralised lending 4 5 175 224 94 5 11 78 45 7,716 Non-collateralised lending -2 -6 127 375 39 6 16 17 13 3,344 Household -14 -6 488 205 187 13 36 138 28 23,674 Public sector 0 0 22 133 1 0 0 1 5 1,650 Loans to the public -23 -2 1,957 147 996 59 184 753 38 132,343 1) Incl uding provisions for off-balance sheet exposures. 2) All owances for stage 3 divided by exposures in stage 3. ===== SIDA 362 ===== Nordea Annual Report 2025 361 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Loans to the public measured at amortised cost 31 Dec 2024, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio gross, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio %2 Loans measured at amor- tised cost Financial institutions -8 -4 59 33 53 6 17 30 51 17,909 Agriculture -4 -11 56 156 43 3 14 26 46 3,545 Cr ops, plantations and hunting -11 -228 16 320 18 0 11 7 44 482 Animal husbandr y 8 205 40 969 22 0 3 19 48 391 Fishing and aquacul ture -1 -4 0 0 3 3 0 0 0 2,672 Natural resources -6 -35 12 70 12 2 2 8 67 1,708 P aper and forest products -4 -38 12 112 11 1 2 8 67 1,061 Mining and suppor ting activities 0 0 0 0 0 0 0 0 0 288 Oil , gas and offshore -2 -56 0 0 1 1 0 0 0 359 Consumer staples 18 28 16 25 22 7 7 8 50 6,392 F ood processing and beverages 11 69 8 50 10 2 3 5 63 1,605 Hous ehold and personal products 0 0 3 44 3 1 1 1 33 684 Healthcare 7 17 5 12 9 4 3 2 40 4,103 Consumer discretionary and services -25 -27 424 449 255 9 32 214 50 9,183 C onsumer durables -7 -29 83 339 56 1 5 50 60 2,391 Media and en tertainment -7 -56 55 426 33 1 2 30 55 1,259 R etail trade -14 -41 248 692 137 5 22 110 44 3,446 Air tr ansportation 0 0 2 118 1 0 0 1 50 168 A ccommodation and leisure 4 36 31 274 23 2 3 18 58 1,109 Telecommunication services -1 -12 5 61 5 0 0 5 100 810 Industrials -56 -27 475 223 357 19 84 254 53 20,987 Materials -12 -68 67 374 27 2 4 21 31 1,766 Capit al goods 7 26 24 88 30 3 13 14 58 2,710 Commercial and professional services -11 -29 29 75 26 -1 9 18 62 3,842 Construction -17 -34 147 287 109 6 25 78 53 5,010 Whol esale trade -23 -49 114 240 83 5 24 54 47 4,674 L and transportation 12 155 11 139 13 1 3 9 82 776 IT services -12 -54 83 364 69 3 6 60 72 2,209 Loans to the public measured at amortised cost, cont. 31 Dec 2024, EURm Net loan losses1 Net loan loss ratio, bp Impaired loans (stage 3) Impairment ratio gross, bp Allowances total Allowances (stage 1) Allowances (stage 2) Allowances (stage 3) Coverage ratio %2 Loans measured at amor- tised cost Maritime 11 24 51 109 32 0 1 31 61 4,651 Shipbuilding -1 -86 0 0 1 0 1 0 0 116 Shipping 12 29 51 122 31 0 0 31 61 4,158 Maritime s ervices 0 0 0 0 0 0 0 0 0 377 Utilities and public service -59 -100 103 173 66 4 2 60 58 5,890 Utilitie s distribution -58 -186 100 314 61 2 1 58 58 3,119 P ower production -1 -5 1 5 1 1 0 0 0 2,213 Public s ervices 0 0 2 36 4 1 1 2 100 558 Real estate 38 15 185 75 87 16 14 57 31 24,555 Other industries 3 16 4 21 1 0 0 1 25 1,900 Total corporate -88 -9 1 385 142 928 66 173 689 50 96,720 Housing loans 21 17 177 141 82 6 15 61 34 12,466 Collateralised lending 3 4 198 241 81 5 19 57 29 8,118 Non-collateralised lending -19 -58 109 324 82 17 33 32 29 3,281 Household 5 2 484 201 245 28 67 150 31 23,865 Public sector 0 0 20 72 1 0 0 1 5 2,763 Loans to the public -83 -7 1 889 152 1 174 94 240 840 44 123,348 1) Incl uding provisions for off-balance sheet exposures. 2) All owances for stage 3 divided by exposures in stage 3. ===== SIDA 363 ===== Nordea Annual Report 2025 362 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity management , cont. Loans to the public measured at amortised cost, geographical breakdown 1 31 Dec 2025, EURm Gross Allowances NetStage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Denmark 24,049 1,149 516 3 81 210 25,421 Finland 25,431 2,653 691 19 39 314 28,404 Norway 27,421 1,225 224 23 24 62 28,761 Sweden 30,053 1,285 467 9 36 140 31,620 Russia 0 0 0 0 0 0 1 US 3,030 7 1 1 1 0 3,036 Other 14,950 130 57 4 4 27 15,102 Total 124,934 6,449 1,957 59 184 753 132,343 1) Based on the customer’s country of domicile. 31 Dec 2024, EURm Gross Allowances NetStage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Denmark 23,283 1,204 552 20 92 270 24,657 Finland 23,832 3,032 677 23 57 278 27,182 Norway 25,708 1,718 263 24 31 85 27,549 Sweden 26,214 1,545 341 21 55 182 27,842 Russia 1 0 0 0 0 0 1 US 2,786 2 0 0 1 0 2,788 Other 13,160 148 56 5 4 24 13,330 Total 114,984 7,649 1,889 94 240 840 123,348 1) Based on the customer’s country of domicile. Rating and scoring distribution One way of assessing credit quality is through analysis of the distribution across rating grades for rated corporate customers and institutions as well as across risk grades for scored household and small business customers, i.e. retail exposures. For the corporate portfolio, the largest rating groups were ratings 5 and 4. For the retail rating grade, the largest scoring group was B. Rating distribution IRB corporate customers 1 0 5 10 15 20 1-11+2- 2 2+ 3- 3 3+ 4- 4 4+ 5- 5 5+ 6- 6 6+ % 2025 2024 1) Defaulted loans are not included in the rating distribution. Risk grade distribution IRB retail customers 1 0 5 10 15 20 F- F F+ E- E E+D-D D+C-C C+ B- B B+A-A A+ % 2025 2024 1) Defaulted loans are not included in the risk grade distribution. Scoring grades have been converted to risk grades. ===== SIDA 364 ===== Nordea Annual Report 2025 363 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Rating information for loans measured at amortised cost EURm Rating grade1 Average PD (%) Gross carrying amount 31 Dec 2025 AllowancesStage 1 Stage 2 Stage 3 Total 7 – 1,126 2 0 1,128 0 6 0.01 10,536 13 – 10,549 1 5 0.08 35,729 87 1 35,817 11 4 0.23 46,321 935 0 47,256 37 3 5.48 5,342 1,732 1 7,076 65 2 20.48 149 1,190 7 1,346 45 1 31.01 64 420 3 486 25 Standardised/Unrated n.a 6,842 0 – 6,842 5 0 (default) 100.00 10 12 1,381 1,402 581 Group undertakings n.a 80,708 – – 80,708 – Total 186,827 4,391 1,393 192,610 770 EURm Rating grade 1 Average PD (%) Gross carrying amount 31 Dec 2024 AllowancesStage 1 Stage 2 Stage 3 Total 7 – 2,345 1 – 2,346 0 6 0.01 9,636 31 – 9,667 3 5 0.08 33,289 48 – 33,336 19 4 0.23 39,774 1,029 1 40,805 49 3 3.64 4,715 2,103 1 6,820 56 2 16.49 133 1,460 33 1,626 88 1 34.08 47 439 10 496 31 Standardised/Unrated n.a. 4,473 0 0 4,473 20 0 (default) 100.00 11 43 1,293 1,347 648 Group undertakings n.a. 71,388 – – 71,388 0 Total 165,811 5,153 1,339 172,303 913 1) The s tage classification and calculated provision for each exposure are based on the situation as at the end of October 2025 (October 2024), while the exposure amount and rating grades are based on the situation as at the end of December 2025 (December 2024). Some of the exposures in default according to the rating grade as at the end of December were not in default as at the end of October, which is reflected in the stage classification. Scoring information for loans measured at amortised cost EURm Scoring grade1 Average PD (%) Gross carrying amount 31 Dec 2025 AllowancesStage 1 Stage 2 Stage 3 Total A 0.11 4,896 23 1 4,920 1 B 0.33 8,790 108 1 8,899 3 C 1.39 5,095 288 3 5,387 9 D 5.49 2,442 469 4 2,915 15 E 15.09 535 729 6 1,270 20 F 22.91 114 429 5 548 18 Standardised/Unrated 1.12 139 6 9 154 2 0 (default) 100.00 289 24 535 848 160 Total 22,300 2,076 564 24,941 228 EURm Scoring grade 1 Average PD (%) Gross carrying amount 31 Dec 2024 AllowancesStage 1 Stage 2 Stage 3 Total A 0.12 6,786 14 0 6,801 2 B 0.46 7,258 104 0 7,363 7 C 1.20 4,501 219 2 4,722 11 D 7.20 2,988 670 3 3,660 28 E 20.59 357 821 3 1,181 27 F 29.81 99 619 3 721 33 Standardised/Unrated 5.23 299 10 7 315 3 0 (default) 100.00 44 48 531 623 155 Total 22,332 2,505 550 25,387 265 1) The s tage classification and calculated provisioning for each exposure are based on the situation as at the end of October 2025 (October 2024), while the exposure amount and rating grades are based on the situation as at the end of December 2025 (December 2024). Some of the exposures in default according to the rating grade as at the end of December were not in default as at the end of October, which is reflected in the stage classification. ===== SIDA 365 ===== Nordea Annual Report 2025 364 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Rating information for off-balance sheet items EURm Rating grade Nominal amount 31 Dec 2025 ProvisionsStage 1 Stage 2 Stage 3 Total 7 9,150 – – 9,150 0 6 12,330 4 0 12,334 1 5 35,897 3 0 35,900 7 4 20,697 732 0 21,429 13 3 2,476 1,592 0 4,068 27 2 22 721 123 866 20 1 2 191 1 194 11 Standardised/Unrated 361 71 0 432 7 0 (default) 0 0 365 365 29 Group undertakings 61,019 – – 61,019 – Total 141,954 3,314 489 145,757 115 EURm Rating grade Nominal amount 31 Dec 2024 ProvisionsStage 1 Stage 2 Stage 3 Total 7 8,076 0 – 8,076 2 6 10,574 329 – 10,902 5 5 35,542 149 – 35,691 16 4 18,742 353 0 19,096 15 3 2,983 1,224 5 4,212 27 2 43 784 0 827 23 1 1 221 0 222 12 Standardised/Unrated 122 82 0 204 7 0 (default) 6 3 336 345 24 Group undertakings 61,140 – – 61,140 – Total 137,229 3,144 342 140,715 132 Scoring information for off-balance sheet items EURm Scoring grade Nominal amount 31 Dec 2025 ProvisionsStage 1 Stage 2 Stage 3 Total A 4,764 36 0 4,800 1 B 4,606 24 0 4,629 3 C 1,859 180 0 2,039 6 D 908 193 1 1,102 10 E 181 290 1 472 30 F 7 51 1 59 5 Standardised/Unrated 122 3 0 125 0 0 (default) 0 0 36 36 19 Total 12,447 777 39 13,262 73 EURm Scoring grade Nominal amount 31 Dec 2024 ProvisionsStage 1 Stage 2 Stage 3 Total A 5,625 19 0 5,644 1 B 3,741 25 0 3,766 6 C 1,381 118 0 1,500 5 D 776 149 0 925 7 E 14 358 0 373 38 F 2 64 0 66 5 Standardised/Unrated 1 332 0 333 1 0 (default) 2 3 36 41 19 Total 11,542 1,069 36 12,648 83 ===== SIDA 366 ===== Nordea Annual Report 2025 365 Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other P10 Risk and liquidity managemen t, cont. Carrying amount of loans measured at amortised cost, before allowances EURm Credit institutions The public Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance at 1 Jan 2025 73,159 9 0 73,168 114,984 7,649 1,889 124,522 188,143 7,658 1,889 197,690 Origination and acquisition 14,267 3 – 14,270 38,135 473 68 38,677 52,402 476 68 52,946 Transfers between stage 1 and stage 2 (net) -2 2 – – -632 632 – – -634 634 – – Transfers between stage 2 and stage 3 (net) – 0 0 0 – -200 200 – – -200 200 – Transfers between stage 1 and stage 3 (net) – – – – -149 – 149 – -149 – 149 – Repayments and disposals -21,557 -4 0 -21,562 -33,216 -2,020 -414 -35,650 -54,773 -2,024 -414 -57,211 Write-offs – – – – – – -277 -277 – – -277 -277 Other changes1 18,236 8 0 18,244 5,237 -132 326 5,430 23,473 -123 326 23,674 Translation differences 90 1 0 91 575 47 16 638 665 48 16 729 Closing balance at 31 Dec 2025 84,193 18 0 84,211 124,934 6,449 1,957 133,340 209,127 6,467 1,957 217,551 1) Other change s are mainly related to changes in utilisation of credits granted in earlier years, internal and revolving products. EURm Credit institutions The public Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance at 1 Jan 2024 67,392 8 1 67,401 121,384 7,222 1,706 130,311 188,776 7,229 1,707 197,712 Origination and acquisition 18,714 4 0 18,718 46,348 332 67 46,747 65,062 336 67 65,465 Transfers between stage 1 and stage 2 (net) -2 2 – – -1,701 1,701 – – -1,703 1,703 – – Transfers between stage 2 and stage 3 (net) – – – – – -161 161 – – -161 161 – Transfers between stage 1 and stage 3 (net) – – – – -208 – 208 – -208 – 208 – Repayments and disposals -18,704 -6 -1 -18,712 -36,446 -2,031 -392 -38,868 -55,149 -2,037 -393 -57,580 Write-offs – – – – – – -139 -139 – – -139 -139 Other changes1 6,160 2 – 6,162 -13,214 677 290 -12,247 -7,054 679 290 -6,085 Translation differences -402 0 – -402 -1,180 -90 -13 -1,282 -1,581 -90 -13 -1,684 Closing balance at 31 Dec 2024 73,159 9 0 73,168 114,984 7,649 1,889 124,522 188,143 7,658 1,889 197,690 1) Other change s are mainly related to changes in utilisation of credits granted in earlier years, internal and revolving products. ===== SIDA 367 =====