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Pohjola Pankki Oyj: Pohjola Bank plc Financial Statements Bulletin for 1 January-31 December 2015

Pohjola Bank plc

Stock Exchange Release, 4 February 2016 at 09.00 am EET
Financial Statements Bulletin for January 1-31 December 2015

Pohjola Bank plc Financial Statements Bulletin for 1 January-31 December 2015

* Consolidated earnings before tax were EUR 652 million (584) and
consolidated earnings before tax at fair value amounted to EUR 511 million
(663). The return on equity was 14.8% (14.3).
* The Common Equity Tier 1 (CET1) ratio was 14.1% (12.4) as against the
target of 15%.
* Earnings reported by Banking improved by 10% to EUR 334 million (303). The
loan portfolio grew in the year to December by 10% to EUR 16.4 billion
(14.9). Earnings included EUR 29 million (25) in impairment loss on
* Non-life Insurance earnings rose by 19% to EUR 267 million (223). Operating
combined ratio was 87.3 (89.4). Return on investments at fair value was
2.3% (6.7).
* Other Operations earnings improved by 14% to EUR 23 million (20). Liquidity
and access to funding remained good.
* Wealth Management earnings amounted to EUR 28 million (38). Assets under
management increased in the year to December by 9%, totalling EUR 47
billion (43).
* In the partial demerger of Pohjola Bank plc, wealth management, card and
property management operations presented as discontinued operations were
transferred to OP Cooperative on 30 December 2015.
* Outlook for 2016: Consolidated earnings before tax for 2016 are expected to
be lower than earnings from continuing operations in 2015. For more
detailed information on the outlook, see "Outlook for 2016" below.

| Earnings before tax, € million Q1-4/2015 Q1-4/ Change, % |
| 2014 |
| Banking 334 303 10 |
| Non-life Insurance 267 223 19 |
| Other Operations 23 20 14 |
| Wealth Management 28 38 -26 |
| Group total 652 584 12 |
| Change in fair value reserve -141 79 |
| Earnings before tax at fair value 511 663 -23 |
| |
| Equity per share, € 11.38 10.38 |
| Average personnel 2,446 2,563 |
The above figures describe Pohjola Group as a whole without the division into
continuing and discontinued operations.

Comparatives deriving from the income statement are based on figures reported
for the corresponding period a year ago. Unless otherwise specified,
balance-sheet and other cross-sectional figures on 31 December 2014 are used
as comparatives.

| Financial targets Q1-4/2015 Q1-4/2014 Target |
| Return on equity, % 14.8 14.3 13 |
| Common Equity Tier 1 (CET1) ratio, % * 14.1 12.4 15 |
| Operating cost/income ratio by Banking, % 27 33 <35 |
| Operating combined ratio by Non-life Insurance, % ** 87.3 89.4 <92 |
| Operating expense ratio by Non-life Insurance, % 17.7 18.4 18 |
| Non-life Insurance solvency ratio (under Solvency II framework), % *** 139.3 117.3 120 |
| Operating cost/income ratio by Wealth Management, % 58 42 <45 |
| Total expenses in 2015 at the same level as at the end of 2012 491 531 514**** |
| AA rating affirmed by at least two credit rating agencies or credit ratings at 2 2 2 |
|least at the main competitors' level |
| Dividend payout ratio at least 50%, provided that CET 1 ratio is at least 15%. 30***** 30 >50 (30) |
|Dividend payout ratio is 30% until CET1 ratio of 15% has been achieved. |
* Operating ratios exclude changes in reserving bases and amortisation on
intangible assets arising from the corporate acquisition.

** The comparative figure has been adjusted to correspond to the change in the
discount rate applied since the beginning of 2015
*** Excluding the effect of transitional provisions.
**** The expense target for 2012 has been adjusted to correspond to the change
in the accounting policies applied as of 1 January 2015 (see Note 1.
Accounting policies).
***** Board proposal

Outlook for 2016
The world economy is expected to grow at a rate below the average. Economic
growth in the euro area is anticipated to remain moderate. Finnish economic
growth has been modest for a long time now. Weak export demand, eroding price
competitiveness and slow reform of economic structures are threatening to
make the Finnish economic growth rate clearly lag behind the euro area for
several years. Implementing the structural reforms may tighten the political
situation, which may, for its part, threaten the recovery of the domestic
market. The current exceptional world economic situation with low interest
rates and quantitative easing measures by central banks will also cause major
uncertainty to the future economic development.

The weak Finnish economy will keep long-term growth expectations low in the
financial sector. Low interest rates will erode banks' net interest income
and weaken insurance institutions' investment income. Then again, low
interest rates support customers' loan repayment capacity that has remained
stable despite the prolonged period of slow growth. Capital adequacy and
profitability in the financial sector have come to play an ever-increasing
role because of the unstable operating environment and the tighter regulatory

Pohjola Group's consolidated earnings before tax in 2016 are expected to be
lower than earnings from continuing operations before tax in 2015. The most
significant uncertainties affecting earnings in 2016 relate to the rate of
business growth, impairment loss on receivables, developments in bond and
capital markets, the effect of large claims on claims expenditure and to the
discount rate applied to insurance liabilities.

All forward-looking statements in this report expressing the management's
expectations, beliefs, estimates, forecasts, projections and assumptions are
based on the current view of the future development in the operating
environment and the future financial performance of Pohjola Group and its
various functions, and actual results may differ materially from those
expressed in the forward-looking statements.

Helsinki, 4 February 2016

Pohjola Bank plc

Board of Directors

This Interim Report is available at www.pohjola.com>Media>Releases.

Financial reporting in 2016

Pohjola Bank plc publishes the following financial information pursuant to the
regular disclosure obligation of a securities issuer:

Schedule for Interim Reports in 2016:

Interim Report Q1/2016 27 April 2016
Interim Report H1/2016 3 August 2016
Interim Report Q1-3/2016 2 November 2016

NASDAQ Helsinki Ltd
London Stock Exchange
SIX Swiss Exchange
Major media

For additional information, please contact

Jouko Pölönen, President and CEO, tel. +358 (0)10 253 2691
Carina Geber-Teir, Executive Vice President, Corporate Communications, tel.
+358 (0)10 252 8394

Pohjola is part of the leading Finnish customer-owned financial services
group, OP Financial Group. It provides its customers with banking, non-life
insurance and asset management services. Pohjola acts as OP's central bank
and is responsible, together with OP Mortgage Bank, for OP's funding in money
and capital markets. As laid down in the applicable law, Pohjola, its parent
company OP Cooperative and other OP Financial Group member credit
institutions are ultimately jointly and severally liable for each other's
debts and commitments. The joint liability within OP Financial Group is based
on the Finnish Act on the Amalgamation of Deposit Banks Act.

Pohjola Bank plc's Financial Statements Bulletin 2015


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Pohjola Pankki Oyj via Globenewswire


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