Nordea Bank Abp: Norwegian Systemic Risk Buffer partially reciprocated by Finnish Financial Supervisory Authority and applicable to Nordea from 1 July 2024

Norwegian Systemic Risk Buffer partially reciprocated by Finnish Financial Supervisory Authority and applicable to Nordea from 1 July 2024

Nordea Bank Abp
Stock exchange release - Other information disclosed according to the rules of the Exchange
29 June 2023 at 9.45 EET

As previously announced, the Norwegian Ministry of Finance has implemented a Systemic Risk Buffer (SyRB) of 4.5% for exposures located in Norway. Today, the Finnish Financial Supervisory Authority (FIN-FSA) announced a decision to partially reciprocate the Norwegian SyRB at a level of 3.5% in the capital requirement for Finnish banks. The FIN-FSA decision means that Nordea's Common Equity Tier 1 (CET1) requirement will increase by approximately 50bp. The increased requirement will apply from 1 July 2024 and is not expected to impact Nordea's capital return plans as previously communicated.

The Norwegian Ministry of Finance has implemented a SyRB of 4.5% for exposures located in Norway. Today, the FIN-FSA announced a decision to partially reciprocate the Norwegian SyRB at a level of 3.5% in the capital requirement for banks in Finland from 1 July 2024. As decided by the FIN-FSA in March, a SyRB of 1.0% also applies on banks in Finland from 1 April 2024, and therefore the incremental SyRB requirement from today's decision on Nordea will be applied at a rate of 2.5% on exposures located in Norway. This is thereby expected to increase Nordea's CET1 requirement by approximately 50bp. The FIN-FSA also decided to maintain the Nordea O-SII buffer at 2.5%. Therefore, as of 1 July 2024 Nordea's regulatory CET1 ratio requirement will increase to approximately 13.5% when all announced changes to macroprudential capital buffers have entered into force.

As of 31 March 2023, Nordea's CET1 ratio was 15.7%, 2.2 percentage points in excess of the increased regulatory requirement.

This FIN-FSA decision is not expected to impact Nordea's capital return plans as previously communicated. Nordea has a clear capital and dividend policy, which includes pursuing an efficient capital structure and generating sustainable shareholder returns for the benefit of all shareholders.

For further information:

Matti Ahokas, Head of Investor Relations, +358 9 5300 8011
Media inquiries, +358 10 416 8023 or press@nordea.com

The information provided in this stock exchange release was submitted for publication, through the agency of the contacts set out above, at 9.45 EET on 29 June 2023.

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