#1Nordea Nordea Bank Finland Covered Bonds Investor presentation Q2 2016 Making it possible#2Nordea Bank Finland plc - a snapshot • 100% owned by Nordea Bank AB • Loans to the public was EUR 30.5bn per Q2 2016 • · Licensed by Finnish FSA to issue covered bonds according to the Finnish covered bond legislation (Covered Bond Act (688/2010) or CBA) Issuer rated Aa3*/AA-**/AA- Covered bonds rated Aaa by Moody's Nordea 2. *Negative outlook as of the 29th May 2014 **Negative outlook as of the 20th November 2012#3Cover pool key characteristics Q2 2016 Pool notional Cover pool content Geographic distribution Asset distribution Weighted average LTV Average loan size Rate type Substitute assets Pool type Loans originated by EUR 21.8bn Mortgage loans secured by residential or commercial property. Loans guaranteed by public sector. Throughout Finland with concentration in urban areas 99.0% residential, 1.0% public sector 50.2% (indexed, calculated per property) EUR 67,874 (weighted average, covered amount 64.2k) Fixed rate 3%, Floating rate 97% None Dynamic Nordea Bank Finland Nordea 3.#4Cover pool key characteristics - 93.3% single family housing with low LTVs Q2 2016 Cover pool balance by loan category 100% Public sector 1,0% Multi-family Summer houses 2,5% housing 5,7% Tenant owner units 46,3% 90% 80% Single family houses 44,5% 70% 60% 50% 40% Cover pool balance by geographical area 30% Greater Helsinki area 41.6% Nordea North/Middle Finland 17.4% 20% West Finland 18.4% 10% South Finland 22.6% Weighted Average LTV - Indexed 0% Single family houses Tenant owner units Multi-family houses Pool mainly includes single family houses and tenant owner units. The main part of real estates are located in greater Helsinki but are otherwise evenly distributed between western, northern and southern part of Finland. Low WALTVs in the pool 4.#50,10% 0,08% 0,06% 0,04% 0,02% 0,00% -0,02% 2005 Nordea 2006 • Performance of housing loan portfolio - Nordea Bank Finland Low level of loan losses supported by strong household sector • Impaired non-performing loans are at low levels. Net loan losses % for Nordea Bank Finland's housing loan portfolio 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 EURM 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 Nordea Bank Finland's housing loan stock and level of impaired non-performing loans* 2005 2006 2007 Lending (EURm) (LHS) 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 *The majority of the increase in Q4-2015 is model 5. driven and is related to an improved way of calculating collectively assessed provisions on contract level, implemented in Q4-2015 4,00% 3,50% 3,00% 2,50% 2,00% 1,50% 1,00% 0,50% 0,00%#6Underwriting criteria - common common Nordea policy • Residential mortgage loans • • Nordea's credit decision is based on the borrower's payment capacity and collateral is always taken. . Collateral must be in the form of mortgages in real estate or in shares in housing companies. • Repayment ability of borrowers is calculated using stressed scenarios. . Credit bureau check is always conducted (Suomen Asiakastieto). • Individual valuation of property based on market value. Commercial mortgage loans . Borrowers with strong EBITDA/debt and cash flow based on e.g. long-term high quality lease contracts and adequate interest rate hedging. • Individual credit decision based on credit policy and rating. • An evaluation of all property-related commitments is performed in the ordinary annual review against a background of quality issues/risk factors regarding the property itself, the lease, the management, the long- term cash flow and -strength of balance sheet/gearing. The analysis focuses on the repayment capacity. • Nordea Individual valuation of property based on market value. 6.