Regulatory press release

Nordea Mortgage Bank Plc: Half-year financial report January-June 2019

Nordea Mortgage Bank Plc's Half-year financial report and Alternative performance measures have been published. The documents are attached to this release and they are available on the Internet at http://www.nordea.com/en/investor-relations/reports-and-presentations/.

Only information having material influence on the value of securities is included in this stock exchange release.

Nordea Mortgage Bank Plc is a wholly owned subsidiary of Nordea Bank Abp, the listed parent company of the whole Nordea Group. This statutory half-year report covers the operations of the legal entity Nordea Mortgage Bank Plc. The half-year report of Nordea Bank Abp comprises the operations of the Nordea Group as a whole and gives the best overview of the Group.

Summary of the first half of 2019:

The operating profit of Nordea Mortgage Bank amounted to EUR 56.1m
Net interest income totalled EUR 104.7m
Total operating income was EUR 94.7m
Total operating expenses were EUR -36.9m, increase mainly explained by additional service fees related to the purchase of EUR 2.2bn loan portfolio from Nordea Bank Abp in June
Net loan losses totalled EUR -1.7m
Loans to the public increased 12% compared to year-end 2018 and amounted to EUR 25.9bn, increase mainly driven by the purchase of EUR 2.2bn loan portfolio in June
Debt securities in issue decreased to EUR 16.2bn
The size of the cover pool increased 10% compared to year-end 2018 and amounted to EUR 21.8bn, as a result of the purchase of EUR 2.2bn loan portfolio in June

+-------------------------------------------+-------+-------+------+---------+
|Summary key figures |Jan-Jun|Jan-Jun|Change|Full year|
+-------------------------------------------+-------+-------+------+---------+
| | 2019| 2018| %| 2018|
+-------------------------------------------+-------+-------+------+---------+
|Net interest income, EURm | 104.7 | 113.6| -8| 219.8|
+-------------------------------------------+-------+-------+------+---------+
|Total operating income, EURm | 94.7| 107.4| -12| 208.5|
+-------------------------------------------+-------+-------+------+---------+
|Total operating expenses, EURm | -36.9| -29.6| 25| -54.1|
+-------------------------------------------+-------+-------+------+---------+
|Profit before loan losses, EURm | 57.8| 77.8| -26| 154.4|
+-------------------------------------------+-------+-------+------+---------+
|Net loan losses, EURm | -1.7| -7.3| -77| -11.4|
+-------------------------------------------+-------+-------+------+---------+
|Operating profit, EURm | 56.1| 70.5| -20| 143.0|
+-------------------------------------------+-------+-------+------+---------+
|Loan loss ratio, annualised, bps | 1.3| 6.2| -79| 4.9|
+-------------------------------------------+-------+-------+------+---------+
|Return on equity, % | 7.8| 9.6| -19| 9.6|
+-------------------------------------------+-------+-------+------+---------+
|Tier 1 capital ratio, % | 23.4| 25.4| -8| 24.1|
+-------------------------------------------+-------+-------+------+---------+
|Total capital ratio, % | 28.2| 30.6| -8| 29.1|
+-------------------------------------------+-------+-------+------+---------+
|Number of employees (full time equivalents)| 18| 18| 0| 17|
+-------------------------------------------+-------+-------+------+---------+

Helsinki, 18 July 2019

Nordea Mortgage Bank Plc
Board of Directors

For further information:
Thomas Miller, Chief Executive Officer + 358 40 864 4554
Vesa Ruokokoski, Chief Financial Officer + 358 50 364 3251

Link, Nordea Mortgage Bank Plc, Half-year financial report January-June 2019
Link, Nordea Mortgage Bank Plc, Alternative Performance Measures January-June 2019