Investor Presentaiton

Underwriting criteria - common Nordea policy Q3 2016 6 • 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. • Individual valuation of property based on market value. Nordea

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