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1 Nordic banks Cutting Danske estimates after q2, maintaining estimates on others Cutting our 11E and 12E Danske EPS estimates by 11% & 3% to DKK 6.9 & DKK 12.2 respectively on back of i) weaker than expected asset quality in Denmark (NPL rising again 3% qoq) & Ireland (+11% qoq), ii) 1.2bn provision miss in q2 when adj. for 0.3mn payment to the DK guarantee fund, 0.8bn one-off credit reversal & 0.2bn recovery from Lehman, and iii) exceptionally high tax rate in 1H (63% q1 & 43% q2) due to uncapitalised losses in Ireland. Based on lower earnings estimates we cut our June 2012e Price Target to 120 DKK (from 125 DKK). JPM in line with mgt outlook on NII numbers. NII was up 4% qoq on back of wider deposit margins & additional ROE from the capital increase. NIM improved to 85bps (81bps). Mgt is guiding 500mn improvement in NII in 2H and 2.5bn p/a assuming current interest rates are maintained, (~DKK600mn +ve NII impact from 25bp ST rates increase), however this is already incl. in JPMe and we have not changed our 2012E revenue outlook. Asset quality remains a key area of concern with worsening underlying credit trends and adj. cost of credit at 79bps vs. 60bps in q1. Overall NPLs increased by 4% to 104bn. Excl. the 0.8bn one-off credit reversal, DK LLPs almost doubled qoq to 64bps (33bp q1), while Irish and N. Irish LLPs rose to 1,079bp (736bp) and 494bp (260bp) resp. with 1/3 of the Irish LLPs coming from newly impaired loans. The stress in Denmark came from the agri sector, which is struggling with +0.3bn in LLP, due to higher wheat prices & strengthening CHF, whilst CRE remains the drag in Ireland. We now see loan losses of 62bps (47bp) in 2011e and 28bps (28bp) in 2012e. Revised B3 impact guidance towards the top end of the range, capital remains solid. Mgt guided for 160bps B3 impact vs. previous guidance of bps. Solid B2 q2 capital position with Core T1 of 12.3% strengthened by the DKK20bn rights issue in q2. No new update on early repayment of the 24bn gov. hybrid. Maintain Neutral rating on Danske. JPM in line with mgt on NII outlook, but JPMe 2012E sustainable profitability of 10%-11% RoNAV justifies only around 1x P/NAV target multiple (currently trading at 0.7x). With a similar 41% ave upside to the Nordics we remain Neutral. We maintain our recommendations, price targets, EPS and NAVps largely unchanged for DnB, Nordea, SEB, SHB and Swedbank following their in line results. European Banks AC Sofie Peterzens AC (44-20) sofie.c.peterzens@jpmorgan.com J.P. Morgan Securities Ltd. Table 1: Nordic banks PT upside in order of near-term preference Price PT Upside Swedbank(OW) % SEB (OW % DnB NOR (OW) % Nordea (N) % Danske (N) % SHB (UW) % Average 41% Source: J.P. Morgan. June 2012E PTs, prices from Bloomberg cob 11/08/11 Equity Ratings and Price Targets Mkt Cap Price Rating Price Target Company Symbol ($ mn) CCY Price Cur Prev Cur Prev Danske Bank DANSKE.CO 15, DKK N n/c DnB NOR DNBNOR.OL 18, NOK OW n/c n/c Handelsbanken SHBa.ST 33, SEK UW n/c 18 n/c Nordea Bank AB NDA.ST 34, SEK N n/c n/c SEB SEBa.ST 26, SEK OW n/c n/c Swedbank SWEDa.ST 10, SEK OW n/c n/c Source: Company data, Bloomberg, J.P.Morgan estimates. n/c = no change. All prices as of 11 Aug 11. See page 23 for analyst certification and important disclosures, including non-us analyst disclosures. J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

2 Danske Bank Neutral Company Data Price (Dkr) Date Of Price 11 Aug 11 Price Target (Dkr) 12 Price Target End Date 30 Jun week Range (Dkr) Mkt Cap (Dkr bn) 79.4 Shares O/S (mn) 922 Mkt Cap ($ bn) 15.1 Danske Bank (DANSKE.CO;DANSKE DC) FYE Dec 2009A 2010A 2011E (Prev) 2011E (Curr) 2012E (Prev) 2012E (Curr) Adj. EPS FY (Dkr) Adj P/E FY NAV/Sh FY (Dkr) P/NAV FY ROE FY 2.9% 4.3% 6.2% 5.5% 8.9% 8.6% ROA FY 0.1% 0.1% 0.2% 0.2% 0.3% 0.3% Tier One Ratio FY Net Attributable Income FY 1,791 3,667 6,581 5,557 11,710 11,382 (Dkr mn) Dividend (Gross) FY (Dkr) Gross Yield FY 0.0% 0.0% 2.7% 2.3% 4.8% 4.7% Source: Company data, Bloomberg, J.P. Morgan estimates. Valuation We have reduced our June 2012e price target by DKK5 to DKK120 on back of weaker asset quality in Denmark, Ireland and N. Ireland driving a 3% eps downgrade in 2012e. We value Danske at 1.0x 2012e P/Nav for a 10-11% RoNAV and we maintain our Neutral rating. Table 2: June 2012E Sum of the parts valuation DKK SOTP Adj Profit % of Capital % of RoNAV % Value DKK DKK mn 2012E group P/E group P/NAV 2012E Per share Denmark 6,991 61% 8.0 x 45,804 40% 1.2 x 15.3 % 60 Finland 143 1% 8.0 x 7,105 6% 0.2 x 2.0 % 1 Sweden 1,060 9% 9.0 x 9,960 9% 1.0 x 10.6 % 10 Norway 236 2% 9.0 x 7,088 6% 0.3 x 3.3 % 2 N Ireland % nm 1,957 2% 0.25 x % 1 Ireland -1,370-12% nm 2,464 2% 0.25 x % 1 Baltics 399 4% 8.0 x 1,090 1% 2.9 x 36.7 % 3 Other 290 3% nm 1,316 1% 0.5 x 22.0 % 1 Corporate 1,277 11% 9.0 x 10,430 9% 1.1 x 12.2 % 12 Banking Activities 8,665 76% ,213 77% 1.0 x 9.9 % 91 Danske Markets 3,345 29% 7.0 x 6,192 5% 3.8 x nm 25 Danske Capital 706 6% 12.0 x 318 0% 26.6 x nm 9 Danica Pension 1,142 10% nm 6,295 6% 1.0 x 18.1 % 7 Other -2,476-22% 10.0 x 13,109 12% nm nm -27 Unallocated capital 13, x 14 Total 11, % 9.8 x 113, % 1.0 x 10.4% 120 Source: J.P. Morgan 2

3 Asset Quality Asset quality is the key reason for our price target change to DKK120 from DKK125: Asset quality remains a key area of concern with worsening underlying credit trends and adj. cost of credit at 79bps vs. 60bps in 1Q. Overall net NPLs increased by 4% to DKK104bn, while total coverage improved marginally to 43% vs. 41% in Q1. 2Q11 asset quality weaker than expected with NPL ratio in Denmark up at 454bps vs. 444bps in Q1, Ireland 3,861bps vs. 3,409bps and N. Ireland 1,364bps vs. 1,330bps, as NPLs grew 4% qoq, 11% qoq and 8% qoq respectively. Excluding the DKK0.8bn one-off reversal for the termination of credit insurance contracts in Banking Activities Denmark, Danish LLPs almost doubled qoq to 64bps (33bps in Q1), while Irish and N. Irish LLPs increased to 1,079bps (736bps) and 494bps (260bps) respectively. Particularly concerning in Ireland and N. Ireland is i) the Irish CRE sector with NPLs at 75%; accounts for 29% of Irish lending, ii) falling LTVs; currently close to a 100% vs. 44% at the beginning of the crisis, and iii) 1/3 of LLPs in Q2 coming from newly impaired loans. In Denmark the agricultural sector (3% of lending) is struggling with a DKK0.3bn increase in LLP, following higher wheat prices and a strengthening CHF (an undisclosed amount of the loans are in CHF). We now estimate loan losses of 62bps in 2011e and 28bps in 2012e. 3

4 Danske Bank: Summary of Financials Profit and Loss Statement Ratio Analysis Dkr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Dkr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Per Share Data Net interest income 27,524 23,843 23,148 26,164 - EPS Reported % Change Y/Y 1.9% -13.4% -2.9% 13.0% - EPSAdjusted Non-interest income 31,879 22,434 23,098 23,657 - % Change Y/Y 10.5% 52.9% 9.0% 77.4% - Fees & commissions 7,678 8,510 8,579 9,346 - DPS % change Y/Y -5.3% 10.8% 0.8% 8.9% - % Change Y/Y % - Trading revenues 18,308 7,921 9,853 9,475 - Dividend yield % change Y/Y 201.3% -56.7% 24.4% -3.8% - Payout ratio % 33.0% - Other Income 3,083 3,857 3,524 3,349 - BV per share Total operating revenues 59,403 46,277 46,246 49,821 - NAV per share % change Y/Y 37.1% -22.1% -0.1% 7.7% - Shares outstanding Admin expenses % change Y/Y Return ratios Other expenses RoRWA Pre-provision operating profit 30,496 20,267 19,382 22,334 - Pre-tax ROE % change Y/Y 108.7% -33.5% -4.4% 15.2% - ROE 2.9% 4.3% 5.5% 8.6% - Loan loss provisions -25,677-13,817-11,443-6,074 - RoNAV 3.8% 5.6% 6.9% 10.4% - Other provisions Earnings before tax 4,819 6,450 7,938 16,260 - Revenues % change Y/Y 91.1% 33.9% 23.1% 104.8% - NIM (NII / RWA) 0.94% 0.87% 0.83% 0.90% - Tax (charge) (3,042) (2,786) (2,382) (4,878) - Non-IR / average assets 1.03% 0.70% 0.72% 0.69% - % Tax rate 63.1% 43.2% 30.0% 30.0% - Total rev / average assets 1.79% 1.47% 1.44% 1.49% - Minorities NII / Total revenues 46.33% 51.52% 50.05% 52.52% - Net Income (Reported) 1,791 3,667 5,557 11,382 - Fees / Total revenues 12.93% 18.39% 18.55% 18.76% - Trading / Total revenues 30.82% 17.12% 21.31% 19.02% - Balance sheet Dkr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Dkr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E ASSETS Cost ratios Net customer loans 1,816,000 1,885,040 1,961,630 2,095,213 - Cost / income 48.7% 56.2% 58.1% 55.2% - % change Y/Y -10.1% 3.8% 4.1% 6.8% - Cost / assets Loan loss reserves 37,095 43,800 42,834 36,849 - Staff numbers Investments Other interest earning assets 236, , , ,532 - Balance Sheet Gearing % change Y/Y 1.7% 11.6% -38.3% 0.0% - Loan / deposit 170.6% 170.5% 164.2% 164.5% - Average interest earnings assets 2,918,488 2,750,220 2,795,240 2,899,684 - Investments / assets 23.9% 23.7% 24.5% 24.1% - Goodwill 18, Loan / assets 58.6% 58.7% 60.9% 60.8% - Other assets Customer deposits / liabilities 28.7% 27.7% 29.1% 28.3% - Total assets 3,098,477 3,213,886 3,221,498 3,447,003 - LT Debt / liabilities 33.3% 31.3% 31.6% 33.9% - LIABILITIES Asset Quality / Capital Customer deposits 859, , , ,096 - Loan loss reserves / loans 2.0% 2.3% 2.2% 1.8% - % change Y/Y -1.7% 0.2% 4.6% 4.2% - NPLs / loans 4.9% 5.5% 5.1% 4.7% - Long term funding 1,031,656 1,005,705 1,016,939 1,169,480 - LLP / RWA 2.9% 1.6% 1.3% 0.7% - Interbank funding 311, , , ,167 - Loan loss reserves / NPLs 42.1% 42.5% 42.6% 37.5% - Average interest bearing liabs 2,391,912 2,272,245 2,286,945 2,393,884 - Growth in NPLs 101.4% 17.0% (2.5%) (2.2%) - Other liabilities RWAs 834, , ,155 1,049,357 - Retirement benefit liabilities % YoY change -13.1% 13.4% 5.2% 5.5% - Shareholders' equity Core Tier 1 8.6% 8.4% 10.1% 10.3% - Minorities Total Tier Total liabilities & Shareholders Equity 3,098,477 3,213,886 3,221,498 3,447,003 - Source: Company reports and J.P. Morgan estimates. 4

5 DnB NOR Overweight Company Data Price (Nkr) Date Of Price 11-Aug-11 Price Target (Nkr) Price Target End Date 30 Jun week Range (Nkr) Mkt Cap (Nkr bn) Shares O/S (mn) 1,629 Mkt Cap ($ bn) 18.5 DnB NOR (DNBNOR.OL;DNBNOR NO) FYE Dec 2009A 2010A 2011E (Prev) 2011E (Curr) 2012E (Prev) 2012E (Curr) Adj. EPS FY (Nkr) Adj P/E FY NAV/Sh FY (Nkr) P/NAV FY ROE FY 10.0% 13.6% 12.1% 12.4% 13.1% 12.6% ROA FY 0.5% 0.8% 0.7% 0.8% 0.8% 0.8% Tier One Ratio FY Net Attributable Income FY 8,545 14,815 13,844 14,221 15,963 15,321 (Nkr mn) Dividend (Net) FY (Nkr) Gross Yield FY 2.8% 6.3% 7.1% 7.1% 7.9% 7.9% Source: Company data, Bloomberg, J.P. Morgan estimates. Valuation We have maintained our SOTP-based June-12 PT at 95 NOK after minimal changes to our 2011 and 2012 earnings estimates, and value DnB NOR at 1.3x 2012E NAV for a 13% adjusted RoNAV. Table 3: June 2012E Sum of the parts valuations NOK SOTP Adj Profit % of Capital as % RoNAV % Value NOK NOK m 2012E group P/E allocated of P/NAV 2012E Per share group Corp 4,956 32% 10.0 x 35,694 30% 1.4x 13.9 % 30 Retail 5,942 39% 10.0 x 26,651 23% 2.2x 22.3 % 36 Markets 3,291 21% 8.0 x 20,592 18% 1.3x 16.0 % 16 Life and AM 2,511 16% nm 20,356 17% 1.1x 12.3 % 14 o/w Vital 2,294 15% nm 19,646 17% 1.0 x 11.7 % 12 o/w Asset Mgt 217 1% 12.0 x 711 1% 3.7x 30.5 % 2 DnB Nord 445 3% 8.0 x 5,025 4% 0.7x 8.8 % 2 Other -1,822-12% 9.0 x 9,338 8% na -10 Unallocated capital 9, x 6 Total 15, % 10.1 x 117, % 1.3 x 13.4% 95 Source: J.P. Morgan 5

6 DnB NOR: Summary of Financials Profit and Loss Statement Ratio Analysis Nkr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Nkr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Per Share Data Net interest income 22,633 23,436 24,434 26,011 - EPS Reported % Change Y/Y 3.3% 3.6% 4.3% 6.5% - EPSAdjusted Non-interest income 14,994 16,156 16,020 17,113 - % Change Y/Y -7.4% 32.6% -0.1% 7.7% - Fees & commissions 6,655 7,041 7,509 7,989 - DPS % change Y/Y -3.5% 5.8% 6.7% 6.4% - % Change Y/Y % 12.5% 11.1% - Trading revenues 6,285 4,961 4,778 5,113 - Dividend yield 2.2% 5.0% 5.6% 6.3% - % change Y/Y 73.1% -21.1% -3.7% 7.0% - Payout ratio 27.4% 44.0% 51.5% 53.2% - Other Income 1,064 2,565 1,730 1,800 - BV per share Total operating revenues 37,627 39,592 40,454 43,124 - NAV per share % change Y/Y 8.3% 5.2% 2.2% 6.6% - Shares outstanding 1, , , , Admin expenses 18,910 18,510 19,582 20,876 - % change Y/Y 1.0% -2.1% 5.8% 6.6% - Return ratios Other expenses RoRWA Pre-provision operating profit 18,717 21,082 20,872 22,248 - Pre-tax ROE % change Y/Y 16.8% 12.6% -1.0% 6.6% - ROE 10.0% 13.6% 12.4% 12.6% - Loan loss provisions -7,710-2,997-2,403-2,350 - RoNAV 11.0% 14.6% 13.3% 13.4% - Other provisions Earnings before tax 11,031 18,109 18,469 19,898 - Revenues % change Y/Y -12.2% 64.2% 2.0% 7.7% - NIM (NII / RWA) 1.41% 1.44% 1.47% 1.49% - Tax (charge) (4,087) (4,121) (4,248) (4,576) - Non-IR / average assets 0.82% 0.88% 0.86% 0.87% - % Tax rate 37.1% 22.8% 23.0% 23.0% - Total rev / average assets 2.06% 2.15% 2.14% 2.17% - Minorities 1, NII / Total revenues 60.15% 59.19% 60.40% 60.32% - Net Income (Reported) 8,545 14,815 14,221 15,321 - Fees / Total revenues 17.69% 17.78% 18.56% 18.52% - Trading / Total revenues 16.70% 12.53% 11.81% 11.86% - Balance sheet Nkr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Nkr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E ASSETS Cost ratios Net customer loans 1,114,886 1,170,341 1,252,265 1,352,446 - Cost / income 50.3% 46.8% 48.4% 48.4% - % change Y/Y -6.4% 5.0% 7.0% 8.0% - Cost / assets Loan loss reserves 10,718 11,145 11,355 11,241 - Staff numbers Investments Other interest earning assets 354, , , ,340 - Balance Sheet Gearing % change Y/Y 5.0% -21.4% -6.0% 2.7% - Loan / deposit 61.1% 62.9% 65.0% 66.2% - Average interest earnings assets 1,607,124 1,627,084 1,661,532 1,743,628 - Investments / assets 8.5% 9.7% 9.5% 8.4% - Goodwill 5, Loan / assets 61.1% 62.9% 65.0% 66.2% - Other assets Customer deposits / liabilities 34.3% 36.7% 34.3% 36.8% - Total assets 1,823,453 1,861,620 1,925,675 2,041,533 - LT Debt / liabilities 29.2% 28.7% 30.2% 30.0% - LIABILITIES Asset Quality / Capital Customer deposits 590, , , ,119 - Loan loss reserves / loans 1.0% 1.0% 0.9% 0.8% - % change Y/Y -1.1% 8.7% 0.9% 9.0% - NPLs / loans 2.4% 2.4% 2.0% 1.8% - Long term funding 532, , , ,885 - LLP / RWA 1.4% 1.3% 1.2% 1.1% - Interbank funding 302, , , ,762 - Loan loss reserves / NPLs 39.9% 40.3% 46.1% 46.7% - Average interest bearing liabs 1,426,854 1,430,595 1,434,748 1,490,635 - Growth in NPLs 65.0% 3.0% (11.0%) (2.3%) - Other liabilities RWAs 744, , ,358 1,068,709 - Retirement benefit liabilities % YoY change -19.5% 17.5% 10.9% 10.1% - Shareholders' equity 5, Core Tier 1 8.0% 11.7% 11.3% 11.0% - Minorities 2, Total Tier Total liabilities & Shareholders Equity 1,823,453 1,861,620 2,004,944 2,041,533 - Source: Company reports and J.P. Morgan estimates. 6

7 Handelsbanken Underweight Company Data Price (Skr) Date Of Price 11-Aug-11 Price Target (Skr) 18 Price Target End Date 30-Jun week Range (Skr) Mkt Cap (Skr bn) Shares O/S (mn) 624 Mkt Cap ($ bn) 33.5 Svenska Handelsbanken (SHBa.ST;SHBA SS) FYE Dec 2009A 2010A 2011E (Prev) 2011E (Curr) 2012E (Prev) 2012E (Curr) Adj. EPS FY (Skr) Adj P/E FY NAV/Sh FY (Skr) P/NAV FY ROE FY 13.2% 12.6% 12.4% 12.6% 12.0% 12.0% ROA FY 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Dividend (Net) FY (Skr) Net Attributable Income FY 10,444 11,025 11,271 11,530 11,556 11,656 (Skr mn) Gross Yield FY 4.6% 5.2% 5.8% 5.8% 6.1% 6.1% Source: Company data, Bloomberg, J.P. Morgan estimates. Valuation Having largely maintained our 2011 and 2012 estimates following the 2q results, we value SHB at a 1.3x 2012E NAV for a 13% RoNAV with limited scope for upgrades in our view. Table 4: June 2012E Sum of the parts valuations SEK SOTP Adj Profit % of Capital % of RoNAV % Value per SEK m 2012E group P/E of P/NAV 2012E share group Sweden 8,896 76% 9.5 x 47,234 51% 1.8 x 18.8 % 130 UK 459 4% 9.0 x 5,555 6% 0.7 x 8.3 % 6 Denmark 237 2% 9.0 x 2,905 3% 0.7 x 8.1 % 3 Finland 236 2% 9.0 x 5,389 6% 0.4 x 4.4 % 3 Norway 1,064 9% 9.0 x 9,817 11% 1.0 x 10.8 % 15 Int 202 2% 8.5 x 3,055 3% 0.6 x 6.6 % 3 Other 0 0% 0 0% 0 Capital Mkts and AM 896 8% 9.5 x 10,725 12% 0.8 x 8.4 % 13 AM Other ops % 10.0 x 7,764 8% 1.0 x -4.3 % -5 Unallocated capital 7, x 12 Total 11, % 10.0 x 92, % 1.3 x 13.0% 180 Source: J.P. Morgan 7

8 Handelsbanken: Summary of Financials Profit and Loss Statement Ratio Analysis Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Per Share Data Net interest income 22,134 21,337 22,466 23,548 - EPS Reported % Change Y/Y 15.1% -3.6% 5.3% 4.8% - EPSAdjusted Non-interest income 11,328 9,959 9,773 10,333 - % Change Y/Y -7.3% 4.0% 6.7% 1.1% - Fees & commissions 8,473 8,022 8,036 8,530 - DPS % change Y/Y 24.7% -5.3% 0.2% 6.1% - % Change Y/Y 14.3% 12.5% 11.1% 5.0% - Trading revenues 2,190 1,377 1,215 1,277 - Dividend yield 3.7% 4.2% 4.7% 4.9% - % change Y/Y -30.9% -37.1% -11.8% 5.1% - Payout ratio 47.9% 51.8% 54.0% 56.1% - Other Income BV per share Total operating revenues 33,462 31,296 32,239 33,880 - NAV per share % change Y/Y 12.0% -6.5% 3.0% 5.1% - Shares outstanding Admin expenses -16,147-15,018-15,774-16,939 - % change Y/Y 22.1% -7.0% 5.0% 7.4% - Return ratios Other expenses RoRWA Pre-provision operating profit 17,315 16,278 16,465 16,942 - Pre-tax ROE % change Y/Y 3.9% -6.0% 1.2% 2.9% - ROE 13.2% 12.6% 12.6% 12.0% - Loan loss provisions -3,392-1, ,172 - RoNAV 14.5% 13.7% 13.7% 13.0% - Other provisions Earnings before tax 13,923 14,771 15,600 15,769 - Revenues % change Y/Y -11.7% 6.1% 5.6% 1.1% - NIM (NII / RWA) 1.18% 1.14% 1.14% 1.10% - Tax (charge) (3,519) (3,962) (4,070) (4,114) - Non-IR / average assets % Tax rate 25.3% 26.8% 26.0% 26.0% - Total rev / average assets 1.56% 1.46% 1.44% 1.43% - Minorities NII / Total revenues 66.15% 68.18% 69.69% 69.50% - Net Income (Reported) 10,444 11,025 11,530 11,656 - Fees / Total revenues 25.32% 25.63% 24.93% 25.18% - Trading / Total revenues 6.54% 4.40% 3.77% 3.77% - Balance sheet Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E ASSETS Cost ratios Net customer loans 1,477,183 1,481,678 1,598,652 1,726,544 - Cost / income 48.3% 48.0% 48.9% 50.0% - % change Y/Y -0.3% 0.3% 7.9% 8.0% - Cost / assets Loan loss reserves 5,380 5,592 5,450 5,167 - Staff numbers Investments 176, , , ,802 - Other interest earning assets Balance Sheet Gearing % change Y/Y Loan / deposit 268.7% 271.3% 247.5% 281.4% - Average interest earnings assets 1,879,503 1,873,078 1,969,626 2,132,248 - Investments / assets 8.3% 5.5% 5.1% 5.0% - Goodwill 7,319 6,905 6,914 6,914 - Loan / assets 69.6% 68.8% 69.0% 70.9% - Other assets 462, , , ,395 - Customer deposits / liabilities 27.0% 26.4% 29.0% 26.3% - Total assets 2,122,843 2,153,530 2,317,768 2,433,656 - LT Debt / liabilities LIABILITIES Asset Quality / Capital Customer deposits 549, , , ,539 - Loan loss reserves / loans 0.4% 0.4% 0.3% 0.3% - % change Y/Y 1.1% -0.7% 18.3% -5.0% - NPLs / loans 0.6% 0.6% 0.6% 0.6% - Long term funding 59,005 43,948 34,677 35,371 - LLP / RWA 0.6% 0.3% 0.1% 0.2% - Interbank funding 239, , , ,082 - Loan loss reserves / NPLs 62.4% 60.7% 58.0% 51.6% - Average interest bearing liabs 1,814,618 1,823,563 1,977,444 2,090,727 - Growth in NPLs 60.5% 6.9% 1.9% 6.7% - Other liabilities RWAs 602, , , ,986 - Retirement benefit liabilities % YoY change -16.6% -2.6% 9.2% 9.3% - Shareholders' equity 83,088 88,391 94,201 99,360 - Core Tier % 12.5% 12.4% 12.1% - Minorities Total Tier Total liabilities & Shareholders Equity 2,122,843 2,153,530 2,317,768 2,433,656 - Source: Company reports and J.P. Morgan estimates. 8

9 Nordea Bank AB Neutral Company Data Price (Skr) Date Of Price 11-Aug-11 Price Target (Skr) Price Target End Date 30 Jun week Range (Skr) Mkt Cap (Skr bn) Shares O/S (mn) 4,026 Mkt Cap ($ bn) 34.8 Nordea Bank AB (NDA.ST;NDA SS) FYE Dec 2009A 2010A 2011E (Prev) 2011E (Curr) 2012E (Prev) 2012E (Curr) Adj. EPS FY ( ) Adj P/E FY NAV/Sh FY ( ) P/NAV FY ROE FY 11.5% 11.0% 11.5% 12.2% 11.9% 12.2% ROA FY 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Dividend (Net) FY (Skr) Net Attributable Income FY ( mn) 2,314 2,657 2,850 2,991 3,241 3,271 Source: Company data, Bloomberg, J.P. Morgan estimates. Valuation Following limited eps changes we maintain our June-12 PT at 74 SEK, which trades at a 1.3x 2012E NAV for a 14% RoNAV. Table 5: June 2012E Sum of the parts valuations EUR SOTP Adj Profit % of Capital as % RoNAV % Value SEK EUR m (Price in SEK) 2012E group P/E of group P/NAV 2012E Per share Nordic Banking 2,375 73% 9.4 x 17,067 70% 1.3 x 13.9 % 51 Denmark % 9.0 x 4,389 18% 1.4 x 15.1 % 14 Finland % 9.0 x 3,657 15% 1.3 x 14.4 % 11 Norway % 9.5 x 3,657 15% 1.3 x 13.2 % 10 Sweden % 9.5 x 5,120 21% 1.3 x 13.7 % 15 Functions 0 0% nm 244 1% 1.0 x 0.1 % 1 Inst & Int Banking % 8.3 x 3,657 15% 1.7 x 20.5 % 14 Fin Institutions 203 6% 9.0 x 488 2% 3.7 x 41.6 % 4 Shipping, Oil, Int 268 8% 8.0 x 975 4% 2.2 x 27.5 % 5 New Europe 277 8% 8.0 x 1,951 8% 1.1 x 14.2 % 5 Other IIB 0 0% 8.0 x 244 1% 0.0 x 0.0 % 0 Other operations 197 6% nm 3,170 13% 1.5 x 6.2 % 11 Life insurance* 106 3% nm 3,716 15% 1.0 x 2.8 % 8 Private Banking 68 2% 12.0 x 488 2% 1.7 x 14.0 % 2 Other 23 1% 8.0 x 244 1% 0.8 x 9.6 % 0 Corp centre -30-1% 8.0 x 488 2% -0.5 x -6.1 % -1 Functions, elim -20-1% 8.0 x 0 Unallocated x 0 capital Total 3, % 10.0 x 24, % 15.0% Source: J.P. Morgan 9

10 Nordea Bank AB: Summary of Financials Profit and Loss Statement Ratio Analysis in millions, year end Dec FY09A FY10A FY11E FY12E FY13E in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Per Share Data Net interest income 5,281 5,159 5,413 5,905 - EPS Reported % Change Y/Y 3.1% -2.3% 4.9% 9.1% - EPSAdjusted Non-interest income 3,792 4,175 4,290 4,554 - % Change Y/Y -42.7% 6.0% 18.9% 6.7% - Fees & commissions 1,693 2,156 2,564 2,785 - DPS % change Y/Y -8.7% 27.4% 18.9% 8.6% - % Change Y/Y 25.0% 15.6% 12.6% 9.4% - Trading revenues 1,946 1,837 1,579 1,612 - Dividend yield 2.9% 3.3% 3.8% 4.1% - % change Y/Y 89.3% -5.6% -14.1% 2.1% - Payout ratio 41.6% 44.0% 44.0% 44.0% - Other Income BV per share Total operating revenues 9,073 9,334 9,703 10,459 - NAV per share % change Y/Y 10.4% 2.9% 4.0% 7.8% - Shares outstanding 4, , , , Admin expenses 4,512 4,816 5,037 5,207 - % change Y/Y 3.6% 6.7% 4.6% 3.4% - Return ratios Other expenses RoRWA Pre-provision operating profit 4,561 4,518 4,666 5,252 - Pre-tax ROE % change Y/Y 18.0% -0.9% 3.3% 12.6% - ROE 11.5% 11.0% 12.2% 12.2% - Loan loss provisions -1, RoNAV 13.4% 12.7% 14.0% 14.0% - Other provisions Earnings before tax 3,075 3,639 4,036 4,410 - Revenues % change Y/Y -10.0% 18.3% 10.9% 9.3% - NIM (NII / RWA) 1.46% 1.30% 1.25% 1.25% - Tax (charge) (757) (976) (1,029) (1,124) - Non-IR / average assets 0.77% 0.77% 0.72% 0.73% - % Tax rate 24.6% 26.8% 25.5% 25.5% - Total rev / average assets 1.85% 1.72% 1.63% 1.68% - Minorities (4) (6) (15) (14) - NII / Total revenues 58.21% 55.27% 55.79% 56.46% - Net Income (Reported) 2,314 2,657 2,991 3,271 - Fees / Total revenues 18.66% 23.10% 26.43% 26.63% - Trading / Total revenues 21.45% 19.68% 16.27% 15.41% - Balance sheet in millions, year end Dec FY09A FY10A FY11E FY12E FY13E in millions, year end Dec FY09A FY10A FY11E FY12E FY13E ASSETS Cost ratios Net customer loans 282, , , ,191 - Cost / income 49.7% 51.6% 51.9% 49.8% - % change Y/Y 6.5% 11.3% 8.9% 7.0% - Cost / assets Loan loss reserves 2,223 2,534 2,359 2,485 - Staff numbers Investments Other interest earning assets 30,055 23,135 32,502 32,502 - Balance Sheet Gearing % change Y/Y 11.1% -23.0% 40.5% 0.0% - Loan / deposit 183.9% 178.1% 176.8% 176.8% - Average interest earnings assets 360, , , ,878 - Investments / assets 16.3% 14.9% 16.6% 16.1% - Goodwill 2,947 3,219 3,303 3,303 - Loan / assets 55.6% 54.1% 56.0% 57.6% - Other assets Customer deposits / liabilities 31.7% 31.7% 33.1% 34.1% - Total assets 507, , , ,525 - LT Debt / liabilities 25.7% 26.1% 26.0% 25.0% - LIABILITIES Asset Quality / Capital Customer deposits 153, , , ,108 - Loan loss reserves / loans 0.8% 0.8% 0.7% 0.7% - % change Y/Y 3.4% 14.9% 9.7% 7.0% - NPLs / loans 1.5% 1.5% 1.4% 1.3% - Long term funding 130, , , ,119 - LLP / RWA 0.9% 0.5% 0.3% 0.4% - Interbank funding 52,190 40,736 46,023 43,722 - Loan loss reserves / NPLs 52.4% 52.3% 49.3% 50.5% - Average interest bearing liabs 330, , , ,373 - Growth in NPLs 90.6% 14.4% (1.4%) 3.0% - Other liabilities RWAs 172, , , ,898 - Retirement benefit liabilities % YoY change 2.0% 7.6% 4.1% 7.4% - Shareholders' equity 22,500 24,538 25,813 27,769 - Core Tier % 10.3% 10.8% 11.0% - Minorities Total Tier Total liabilities & Shareholders Equity 507, , , ,525 - Source: Company reports and J.P. Morgan estimates. 10

11 SEB Overweight Company Data Price (Skr) Date Of Price 11-Aug-11 Price Target (Skr) Price Target End Date 30-Jun week Range (Skr) Mkt Cap (Skr bn) Shares O/S (mn) 2,194 Mkt Cap ($ bn) 26.0 Skandinaviska Enskilda Banken AB (SEBa.ST;SEBA SS) FYE Dec 2009A 2010A 2011E (Prev) 2011E (Curr) 2012E (Prev) 2012E (Curr) Adj. EPS FY (Skr) Adj P/E FY NAV/Sh FY (Skr) P/NAV FY ROE FY 2.3% 8.8% 13.1% 13.2% 12.1% 12.3% ROA FY 0.1% 0.4% 0.6% 0.6% 0.6% 0.6% Dividend (Gross) FY (Skr) Net Attributable Income FY 1,114 6,745 12,673 12,634 13,552 13,804 (Skr mn) Gross Yield FY 2.6% 3.9% 5.2% 5.2% 6.5% 6.5% Source: Company data, Bloomberg, J.P. Morgan estimates. Valuation We have maintained 2011e & 2012e earnings estimates largely unchanged following 2Q11 results and have maintained our 68 SEK SOTP-based price target. We see significant upside in SEB valuing it at 1.5x 2012e P/NAV for a 14.5% RoNAV with significant excess capital (9 SEK per share) also supporting our OW view. Table 6: June 2012E Sum of the parts valuations SEK SOTP Adj Profit % of Capital as % RoNAV % Value SEK SEK m 2012E group P/E of group P/NAV 2012E Per share Merchant Banking 5,773 42% 9.5 x 41,033 40% 1.3x 14% 25 Trading and Capital 1,799 13% 9.0 x 12,310 12% 1.3x 15% 7 Markets Corp. Banking 3,152 23% 10.0 x 20,517 20% 1.5x 15% 14 Global Transaction 822 6% 9.0 x 8,207 8% 0.9x 10% 3 Retail 2,110 15% 9.8 x 12,656 12% 1.6x 17% 9 Retail - Sweden 1,336 10% 10.0 x 9,492 9% 1.4x 14% 6 Retail - Germany 0 0% 0.0 x 0 0 Retail - Cards 775 6% 9.5 x 3,164 3% 2.3x 24% 3 Baltics 2,539 18% 8.2 x 14,276 14% 1.5x 18% 10 Estonia 563 4% 9.0 x 3,923 4% 1.3x 14% 2 Latvia 931 7% 8.0 x 4,791 5% 1.6x 19% 3 Lithuania 1,045 8% 8.0 x 5,562 5% 1.5x 19% 4 SEB Wealth Mgt 1,329 10% 12.0 x 5,982 6% 2.7x 22% 7 SEB Life 3,373 24% 8.8 x 9,742 9% 1.4 x 35% 13 Other and elims -1,320-10% 9.0 x 18,895 18% -0.6x na -5 Unallocated capital 18, x 9 Total 13, % 11 x 102, % 1.5 x 14.0% 68 Source: J.P. Morgan 11

12 SEB: Summary of Financials Profit and Loss Statement Ratio Analysis Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Per Share Data Net interest income 18,046 16,010 17,304 17,988 - EPS Reported % Change Y/Y 12.3% -11.3% 8.1% 4.0% - EPSAdjusted Non-interest income 17,773 17,326 18,131 19,829 - % Change Y/Y -93.3% 261.8% 56.6% 1.2% - Fees & commissions 13,285 14,160 14,729 16,011 - DPS % change Y/Y -11.5% 6.6% 4.0% 8.7% - % Change Y/Y % 33.3% 25.0% - Trading revenues 4,488 3,166 3,402 3,818 - Dividend yield 1.7% 2.6% 3.5% 4.4% - % change Y/Y 54.7% -29.5% 7.5% 12.2% - Payout ratio 171.5% 48.8% 34.7% 39.7% - Other Income 2, BV per share Total operating revenues 41,575 36,879 38,735 41,527 - NAV per share % change Y/Y 9.0% -11.3% 5.0% 7.2% - Shares outstanding 2, , , , Admin expenses 25,198 23,951 23,577 24,425 - % change Y/Y 5.5% -5.0% -1.6% 3.6% - Return ratios Other expenses RoRWA Pre-provision operating profit 16,377 12,928 15,158 17,103 - Pre-tax ROE % change Y/Y 14.6% -21.1% 17.3% 12.8% - ROE 2.3% 8.8% 13.2% 12.3% - Loan loss provisions 12,030 1,837-2, RoNAV 2.7% 10.1% 15.1% 14.0% - Other provisions Earnings before tax 4,351 11,105 17,159 17,404 - Revenues % change Y/Y -63.4% 155.2% 54.5% 1.4% - NIM (NII / RWA) 0.78% 0.76% 0.83% 0.82% - Tax (charge) (2,482) (2,521) (3,432) (3,481) - Non-IR / average assets 0.97% 0.93% 0.97% 1.03% - % Tax rate 57.0% 22.7% 20.0% 20.0% - Total rev / average assets 1.72% 1.64% 1.76% 1.82% - Minorities (64) (53) (80) (119) - NII / Total revenues 43.41% 43.41% 44.67% 43.32% - Net Income (Reported) 1,114 6,745 12,634 13,804 - Fees / Total revenues 31.95% 38.40% 38.02% 38.55% - Trading / Total revenues 10.79% 8.58% 8.78% 9.19% - Balance sheet Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E ASSETS Cost ratios Net customer loans 1,187,837 1,074,879 1,161,136 1,242,415 - Cost / income 60.6% 64.9% 60.9% 58.8% - % change Y/Y -8.4% -9.5% 8.0% 7.0% - Cost / assets Loan loss reserves -18,555-15,966-12,134-10,742 - Staff numbers Investments Other interest earning assets 949, , , ,630 - Balance Sheet Gearing % change Y/Y 0.3% -8.6% 4.4% 4.7% - Loan / deposit 148.3% 151.1% 149.0% 147.6% - Average interest earnings assets 2,317,683 2,119,265 2,073,433 2,198,615 - Investments / assets 3.9% 3.2% 3.1% 3.1% - Goodwill 13,676 13,292 13,525 13,525 - Loan / assets 51.5% 49.3% 52.2% 53.0% - Other assets Customer deposits / liabilities 36.3% 34.2% 36.8% 37.8% - Total assets 2,308,227 2,179,821 2,223,174 2,345,449 - LT Debt / liabilities 20.6% 25.5% 26.3% 26.2% - LIABILITIES Asset Quality / Capital Customer deposits 801, , , ,791 - Loan loss reserves / loans (1.6%) (1.5%) (1.0%) (0.9%) - % change Y/Y -4.8% -11.2% 9.5% 8.0% - NPLs / loans 2.4% 2.3% 1.9% 1.8% - Long term funding 456, , , ,020 - LLP / RWA 1.6% 0.2% (0.2%) (0.0%) - Interbank funding 397, , , ,242 - Loan loss reserves / NPLs (64.9%) (65.8%) (55.6%) (49.1%) - Average interest bearing liabs 1,968,608 1,750,671 1,706,513 1,818,600 - Growth in NPLs 150.4% (15.1%) (10.1%) 0.4% - Other liabilities RWAs 730, , , ,669 - Retirement benefit liabilities % YoY change -10.7% 10.2% -0.4% 3.4% - Shareholders' equity Core Tier % 10.9% 12.8% 13.3% - Minorities Total Tier Total liabilities & Shareholders Equity 2,308,227 2,179,821 2,223,174 2,345,449 - Source: Company reports and J.P. Morgan estimates. 12

13 Swedbank Overweight Company Data Price (Skr) Date Of Price 11 Aug 11 Price Target (Skr) Price Target End Date 30 Jun week Range (Skr) Mkt Cap (Skr bn) 67.5 Shares O/S (mn) 773 Mkt Cap ($ bn) 10.3 Swedbank (SWEDa.ST;SWEDA SS) FYE Dec 2009A 2010A 2011E (Prev) 2011E (Curr) 2012E (Prev) 2012E (Curr) Adj. EPS FY (Skr) (8.47) Adj P/E FY NM NAV/Sh FY (Skr) P/NAV FY ROE FY -11.2% 8.5% 13.3% 13.4% 12.8% 12.8% ROA FY -0.5% 0.4% 0.7% 0.7% 0.7% 0.7% Dividend (Gross) FY (Skr) Net Attributable Income FY (10,511) 6,449 12,179 12,225 12,610 12,619 (Skr mn) Gross Yield FY 0.0% 2.4% 6.3% 6.3% 6.9% 6.9% Source: Company data, Bloomberg, J.P. Morgan estimates. Valuation Following limited eps changes we have maintained our June-12 PT at 128 SEK. We value Swedbank at 1.5x 2012e P/NAV for a 15% RoNAV on significant excess capital in our view (16 SEK per share) and also view delivery on share buybacks as supportive to our OW view (2.8% of shares purchased in Q2 2011) Table 7: June 2012 Sum of the parts valuations SEK SOTP Adj Profit % of Normalised Capital as % Normalised RoNAV % Value SEK SEK m 2012E group P/E of group P/NAV 2012E Per share Retail 7,065 53% 1 x 23,473 26% 3.0 x 30.1 % 66 Baltic Banking 3,386 26% 7.50 x 28,473 32% 0.9 x 11.9 % 24 Russia and 555 4% 5.00 x 2,717 3% 1.0 x 20.4 % 3 Ukraine Large corps and 2,612 20% 9.00 x 16,360 18% 1.4 x 16.0 % 22 institutions AM and Insurance 675 5% x 1,869 2% 4.3 x 36.1 % 8 Other -1,073-8% 1 x 16,952 19% 1.0 x -6.3 % -10 Unallocated capital 16,952 19% 1.0 x 16 Total 13, % x 89, % 1.5 x 15.2% 128 Source: J.P. Morgan 13

14 Swedbank: Summary of Financials Profit and Loss Statement Ratio Analysis Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Per Share Data Net interest income 20,765 16,329 18,732 19,817 - EPS Reported % Change Y/Y -4.3% -21.4% 14.7% 5.8% - EPSAdjusted (8.47) Non-interest income 14,017 14,715 14,241 15,657 - % Change Y/Y % % 72.6% 5.7% - Fees & commissions 7,825 9,525 9,448 10,050 - DPS % change Y/Y -11.4% 21.7% -0.8% 6.4% - % Change Y/Y (100.0%) % 9.1% - Trading revenues 2,770 2,400 1,999 2,726 - Dividend yield % change Y/Y 17.8% -13.4% -16.7% 36.4% - Payout ratio % 50.0% 50.6% - Other Income 3,422 2,790 2,794 2,880 - BV per share Total operating revenues 34,782 31,044 32,972 35,474 - NAV per share % change Y/Y -4.6% -10.8% 6.2% 7.6% - Shares outstanding 1, , , , Admin expenses 19,173 17,642 17,958 18,559 - % change Y/Y 0.7% -8.0% 1.8% 3.4% - Return ratios Other expenses (9,201) (9,392) (9,910) (10,314) - RoRWA Pre-provision operating profit 15,609 13,402 15,015 16,914 - Pre-tax ROE % change Y/Y -10.4% -14.1% 12.0% 12.7% - ROE -11.2% 8.5% 13.4% 12.8% - Loan loss provisions 25,070 2,810-1, RoNAV -14.2% 10.4% 16.0% 15.2% - Other provisions Earnings before tax -9,462 9,955 16,771 16,877 - Revenues % change Y/Y % % 68.5% 0.6% - NIM (NII / RWA) 1.32% 1.06% 1.19% 1.19% - Tax (charge) (981) (2,472) (3,678) (3,611) - Non-IR / average assets 0.78% 0.95% 0.90% 0.94% - % Tax rate (42.8%) 24.8% 21.9% 21.4% - Total rev / average assets 1.93% 2.01% 2.09% 2.13% - Minorities (69) (39) (43) (47) - NII / Total revenues 59.70% 52.60% 56.81% 55.86% - Net Income (Reported) (10,511) 6,449 12,225 12,619 - Fees / Total revenues 22.50% 30.68% 28.65% 28.33% - Trading / Total revenues 7.96% 7.73% 6.06% 7.69% - Balance sheet Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E Skr in millions, year end Dec FY09A FY10A FY11E FY12E FY13E ASSETS Cost ratios Net customer loans 1,290,667 1,187,226 1,246,587 1,321,383 - Cost / income 55.1% 56.8% 54.5% 52.3% - % change Y/Y 0.3% -8.0% 5.0% 6.0% - Cost / assets Loan loss reserves 26,225 21,791 14,894 13,471 - Staff numbers Investments Other interest earning assets 262, , , ,452 - Balance Sheet Gearing % change Y/Y 0.2% 13.4% 20.1% 7.1% - Loan / deposit 255.9% 222.2% 222.1% 218.0% - Average interest earnings assets 1,578,953 1,547,000 1,577,889 1,667,547 - Investments / assets 9.5% 7.7% 8.3% 8.6% - Goodwill 15,368 13,733 13,933 13,933 - Loan / assets 71.9% 69.2% 68.2% 68.2% - Other assets Customer deposits / liabilities 29.6% 33.0% 32.5% 33.1% - Total assets 1,794,687 1,715,681 1,828,345 1,938,046 - LT Debt / liabilities 39.2% 40.0% 41.8% 41.4% - LIABILITIES Asset Quality / Capital Customer deposits 504, , , ,047 - Loan loss reserves / loans 2.1% 1.8% 1.2% 1.0% - % change Y/Y -0.8% 5.9% 5.0% 8.0% - NPLs / loans 3.2% 2.9% 2.2% 2.1% - Long term funding 703, , , ,014 - LLP / RWA 3.2% 0.5% (0.3%) (0.0%) - Interbank funding 231, , , ,175 - Loan loss reserves / NPLs 62.5% 8.1% (6.2%) (0.0%) - Average interest bearing liabs 1,470,329 1,431,030 1,430,915 1,519,005 - Growth in NPLs 279.4% (13.3%) (18.9%) (4.9%) - Other liabilities RWAs 603, , , ,506 - Retirement benefit liabilities % YoY change -13.4% -5.9% 1.8% 7.7% - Shareholders' equity 89,974 95, , ,961 - Core Tier % 13.1% 13.8% 13.7% - Minorities Total Tier Total liabilities & Shareholders Equity 1,794,687 1,715,681 1,828,345 1,938,046 - Source: Company reports and J.P. Morgan estimates. 14

15 Valuation Methodology and Risks Danske Bank (Neutral Price Target: Dkr12) Valuation Methodology : We use a SOTP valuation methodology to value Danske Bank. Risks to Our View : The key risks to our rating and PT being achieved include the following: Upside risk from more resilient than expected net interest margins Upside risk from quicker than expected normalisation of loan losses Downside risk from further macro deterioration in Denmark and/or Ireland Downside risk from potential penalty charges if early hybrid repayment is allowed (26bn outstanding of which 2bn due May 2012, 24bn due May 2014 and mgt are applying to repay all in May 2012) DnB NOR (Overweight Price Target: Nkr95.00) Valuation Methodology : Our target price is based on our sum-of-the-parts valuation analysis. Risks to Our View : Downside risk from further macro downgrades and sentiment pressures with volatile/negative oil prices and shipping indices given DnB NOR's 8% shipping exposure in its loan book Downside risk from strong competition from Norwegian savings banks negatively impacting deposit margins Handelsbanken (Underweight Price Target: Skr18) Valuation Methodology : We use a SOTP methodology to value Handelsbanken. Risks to Our View : The key risks to our rating and PT being achieved include the following Upside risk from stronger than expected Swedish corporate recovery Upside risk from stronger than expected delivery from the growing UK business Nordea Bank AB (Neutral Price Target: Skr74.00) Valuation Methodology : We use a SOTP valuation methodology to value Nordea. Risks to Our View : The key risks to our rating and PT being achieved include: 15

16 Downside risk from potential sale of 13.5% government stake following the disposal of 6.3% shares on Feb 4th 2011 Upside risk from better than expected asset quality development Upside risk from better than expected net interest margin progression from corporate repricing gvien Nordea's push to gain market share in this segment Potential support from further buying by Sampo, with 21.3% current ownership and 22%-25% targeted ownership. SEB (Overweight Price Target: Skr68.00) Valuation Methodology : We use a SOTP methodology to value SEB. Risks to Our View : The key risks to our rating and PT being achieved include the following: Upside risk from even faster than expected net recoveries from the drawdown of collective provisions in the Baltics Downside risk from uncertainty in the sustainability of performance in Trading and Capital markets (30%-35% FX, 25%-35% equities, 25%-30% Capital Markets, around 5% Structured derivatives etc.) Downside risk if there is no recovery in corporate loan growth, this would proportionately impact SEB more than the peers as approx 50% of the group's value is in Merchant Banking Swedbank (Overweight Price Target: Skr128.00) Valuation Methodology : We use a SOTP valuation methodology to value Swedbank. Risks to Our View : The key risks to our rating and PT being achieved include: Upside risk from faster than expected Baltic, Russia and Ukraine recoveries and writebacks of collective provisions Dowside risk from slowdown in Swedish retail activity given Swedbank's proportionately larger exposure here with 27% market share in Swedish mortgages Downside risk from smaller than expected benefit in funding costs from moving for government guaranteed to covered bond funding. 16

17 JPM Q-Profile Danske Bank A/S (DENMARK / Financials) As Of: 05-Aug-2011 Quant_Strategy@jpmorgan.com Local Share Price Current: Mth Forward EPS Current: Earnings Yield (& local bond Yield) Current: 13% Implied Value Of Growth* Current: % 30% 25% 20% 15% 12Mth fwd EY US BY Proxy % % 0% PE (1Yr Forward) Current: 7.6x Price/Book Value Current: 0.7x 40.0x 2.5x PBV hist PBV Forward 35.0x 30.0x 2.0x 25.0x 20.0x 1.5x 15.0x 1.0x 10.0x 5.0x 0.5x 0.0x 0.0x ROE (Trailing) Current: 3.48 Dividend Yield (Trailing) Current: Summary Danske Bank A/S As Of: 5-Aug-11 DENMARK SEDOL Local Price: Financials Commercial Banks EPS: Latest Min Max Median Average 2 S.D.+ 2 S.D. - % to Min % to Max % to Med % to Avg 12mth Forward PE 7.61x % 348% 33% 38% P/BV (Trailing) 0.66x % 243% 124% 113% Dividend Yield (Trailing) ROE (Trailing) % 448% 327% 266% Implied Value of Growth -76.7% % 185% 99% 87% Source: Bloomberg, Reuters Global Fundamentals, IBES CONSENSUS, J.P. Morgan Calcs * Implied Value Of Growth = (1 - EY/Cost of equity) where cost of equity =Bond Yield + 5.0% (ERP) 17

18 JPM Q-Profile DnB NOR ASA (NORWAY / Financials) As Of: 05-Aug-2011 Quant_Strategy@jpmorgan.com Local Share Price Current: Mth Forward EPS Current: Earnings Yield (& local bond Yield) Current: 13% Implied Value Of Growth* Current: % 30% 25% 20% 15% 12Mth fwd EY US BY Proxy % % 0% PE (1Yr Forward) Current: 7.9x Price/Book Value Current: 1.1x 16.0x 2.5x PBV hist PBV Forward 14.0x 12.0x 2.0x 10.0x 8.0x 1.5x 6.0x 1.0x 4.0x 2.0x 0.5x 0.0x 0.0x ROE (Trailing) Current: Dividend Yield (Trailing) Current: Summary DnB NOR ASA As Of: 5-Aug-11 NORWAY SEDOL Local Price: Financials Commercial Banks EPS: 9.14 Latest Min Max Median Average 2 S.D.+ 2 S.D. - % to Min % to Max % to Med % to Avg 12mth Forward PE 7.95x % 77% 23% 20% P/BV (Trailing) 1.07x % 75% 14% 17% Dividend Yield (Trailing) % 241% -2% -2% ROE (Trailing) % 56% 18% 8% Implied Value of Growth -69.2% % 133% 95% 77% Source: Bloomberg, Reuters Global Fundamentals, IBES CONSENSUS, J.P. Morgan Calcs * Implied Value Of Growth = (1 - EY/Cost of equity) where cost of equity =Bond Yield + 5.0% (ERP) 18

19 JPM Q-Profile Svenska Handelsbanken A (SWEDEN / Financials) As Of: 05-Aug-2011 Quant_Strategy@jpmorgan.com Local Share Price Current: Mth Forward EPS Current: Earnings Yield (& local bond Yield) Current: 11% Implied Value Of Growth* Current: % 18% 12Mth fwd EY US BY Proxy % % 12% 10% 8% 6% 4% 2% 0% PE (1Yr Forward) Current: 9.1x Price/Book Value Current: 1.3x 20.0x 18.0x 16.0x 14.0x 12.0x 10.0x 8.0x 6.0x 4.0x 2.0x 0.0x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x PBV hist PBV Forward ROE (Trailing) Current: Dividend Yield (Trailing) Current: Summary Svenska Handelsbanken A As Of: 5-Aug-11 SWEDEN SEDOL Local Price: Financials Commercial Banks EPS: Latest Min Max Median Average 2 S.D.+ 2 S.D. - % to Min % to Max % to Med % to Avg 12mth Forward PE 9.10x % 95% 22% 24% P/BV (Trailing) 1.32x % 114% 39% 40% Dividend Yield (Trailing) % 118% -23% -21% ROE (Trailing) % 73% 25% 28% Implied Value of Growth -47.7% % 175% 113% 109% Source: Bloomberg, Reuters Global Fundamentals, IBES CONSENSUS, J.P. Morgan Calcs * Implied Value Of Growth = (1 - EY/Cost of equity) where cost of equity =Bond Yield + 5.0% (ERP) 19

20 JPM Q-Profile Nordea Bank AB (SWEDEN / Financials) As Of: 05-Aug-2011 Quant_Strategy@jpmorgan.com Local Share Price Current: Mth Forward EPS Current: Earnings Yield (& local bond Yield) Current: 12% Implied Value Of Growth* Current: % 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 12Mth fwd EY US BY Proxy PE (1Yr Forward) Current: 8.0x Price/Book Value Current: 1.1x 25.0x 20.0x 15.0x 10.0x 5.0x 5.0x 4.5x 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x PBV hist PBV Forward 0.0x 0.5x 0.0x ROE (Trailing) Current: Dividend Yield (Trailing) Current: Summary Nordea Bank AB As Of: 5-Aug-11 SWEDEN SEDOL Local Price: Financials Commercial Banks EPS: 0.84 Latest Min Max Median Average 2 S.D.+ 2 S.D. - % to Min % to Max % to Med % to Avg 12mth Forward PE 8.02x % 168% 35% 40% P/BV (Trailing) 1.10x % 323% 52% 68% Dividend Yield (Trailing) % 129% -7% -5% ROE (Trailing) % 164% 25% 35% Implied Value of Growth -67.7% % 166% 106% 99% Source: Bloomberg, Reuters Global Fundamentals, IBES CONSENSUS, J.P. Morgan Calcs * Implied Value Of Growth = (1 - EY/Cost of equity) where cost of equity =Bond Yield + 5.0% (ERP) 20

21 JPM Q-Profile Skandinaviska Enskilda Banken AB (SWEDEN / Financials) As Of: 05-Aug-2011 Quant_Strategy@jpmorgan.com Local Share Price Current: Mth Forward EPS Current: Earnings Yield (& local bond Yield) Current: 13% Implied Value Of Growth* Current: % 35% 12Mth fwd EY US BY Proxy % 25% 20% % % 5% 0% PE (1Yr Forward) Current: 7.8x Price/Book Value Current: 0.9x 80.0x 3.0x PBV hist PBV Forward 70.0x 60.0x 2.5x 50.0x 2.0x 40.0x 30.0x 1.5x 20.0x 10.0x 0.0x 1.0x 0.5x -10.0x 0.0x ROE (Trailing) Current: Dividend Yield (Trailing) Current: Summary Skandinaviska Enskilda Banken AB As Of: 5-Aug-11 SWEDEN SEDOL Local Price: Financials Commercial Banks EPS: 5.49 Latest Min Max Median Average 2 S.D.+ 2 S.D. - % to Min % to Max % to Med % to Avg 12mth Forward PE 7.75x % 867% 52% 71% P/BV (Trailing) 0.91x % 184% 71% 71% Dividend Yield (Trailing) % 229% 18% 17% ROE (Trailing) % 67% 15% 8% Implied Value of Growth -73.4% % 221% 117% 108% Source: Bloomberg, Reuters Global Fundamentals, IBES CONSENSUS, J.P. Morgan Calcs * Implied Value Of Growth = (1 - EY/Cost of equity) where cost of equity =Bond Yield + 5.0% (ERP) 21