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Sunday, November 19, 2017

Nordea receives approval to use advanced IRB approach

Nordea, a Nordic-based financial services group operating in Northern Europe, has received the approval of the Swedish Financial Supervisory Authority, along with that of the three other Nordic FSAs, to use the advanced internal ratings-based system for its corporate exposures in the region.

The approval will affect Nordea's core tier 1 capital ratio due to lower risk-weighted assets as well as higher core tier 1 capital. The pro forma Q3 2013 impact on the core tier 1 capital ratio is calculated at approximately 0.7 percentage points.

In December, Nordea received approval to use the IRB system for corporate exposures in Russia. The pro forma Q3 2013 impact on the core tier 1 ratio is calculated at approximately 0.2 percentage points.

The new approvals confirm the previously stated pro forma Q3 2013 core tier 1 ratio at 15-16 percent.

Nordea will not comment further before the release of the fourth quarter report on Jan.29.