Pan-Nordic bank with diversified business model by geography and business line Strong risk-adjusted capitalization combined with significant financial flexibility Nordea Bank Abp's simplification program and investments in digitalization, which will protect from disruption and contribute to cost efficiency Intense competition and group reorganization, putting some strain on business growth Reliance on wholesale funding, exposing the group to confidence sensitivity The stable outlook reflects S&P Global Ratings' view that Nordea, thanks to its broad geographical and business diversification, will return to generating sound earnings and maintain its robust risk-adjusted capitalization over the next two years. As such, we do not expect a marked change in the bank's capitalization level, and project the risk-adjusted capital (RAC) ratio will remain well above 10%
