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Pohjola Pankki Oyj: Pohjola Group performance for January-March 2015

Pohjola Bank plc

Stock Exchange Release 29 April 2015 at 8.00 am
Interim Report

Pohjola Group performance for
January-March 2015

- Consolidated earnings before tax were EUR 160 million (159) and consolidated
earnings before tax at fair value amounted to EUR 259 million (163). The
return on equity was 15.3% (16.6).
- The Common Equity Tier 1 ratio (CET1) was 13.5% (12.4) as against the target
of 15%.
- Earnings reported by Banking in January-March were almost at the same level
as in the previous year. The loan portfolio grew by 2% to EUR 15.2 billion
(14.9). Earnings included EUR 14 million (4) in impairment loss on
- Within Non-life Insurance, insurance premium revenue increased by 5% (8).
Combined ratio improved to 88.8% (91.0). A reduction in the discount rate for
pension liabilities reduced earnings by EUR 17 million (-). Operating
combined ratio*) improved to 87.2% (89.3). Return on investments at fair
value was 2.6% (1.4).
- Within Wealth Management, earnings improved somewhat due to higher
performance-based management fees. Assets under management increased by 8% to
EUR 46.9 billion (43.3).
- Unchanged outlook: Consolidated earnings from continuing operations before
tax in 2015 are expected to be at the same level as in 2014. For more
detailed information on the outlook, see "Outlook towards the end of 2015"
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.
*) Year 2104 excluding changes in reserving bases and amortisation on
intangible assets arising from company acquisition.
**) Excluding the effect of transition 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).

| Earnings before tax, € million Q1/2015 Q1/2014 Change, % 2014 |
| Banking 83 83 0 303 |
| Non-Life Insurance 70 62 12 223 |
| Other Operations 0 8 20 |
| Wealth Management 7 6 7 38 |
| Group total 160 159 0 584 |
| Change in fair value reserve 99 4 79 |
| Earnings before tax at fair value 259 163 59 663 |
| |
| Equity per share, € 10.55 9.25 10.38 |
| Average personnel 2,483 2,593 2,563 |
The above figures describe Pohjola Group as a whole without the division into
continuing and discontinued operations.

| Financial targets Q1/2015 Q1/2014 Target 2014 |
| Return on equity, % 15.3 16.6 13 14.3 |
| Common Equity Tier 1 (CET1) ratio, % 13.5 12.0 15 12.4 |
| Operating cost/income ratio by Banking, % 27 33 <35 33 |
| Operating combined ratio by Non-life Insurance, % 87.2 89.3 <92 84.7 |
| Operating expense ratio by Non-life Insurance, % 17.9 18.5 18 18.4 |
| Non-life Insurance solvency ratio (under Solvency II framework), %**) 109 134 120 117 |
| Operating cost/income ratio by Wealth Management, % 50 51 <45 42 |
| Total expenses in 2015 at the same level as at the end of 2012 127 135 514***) 531 |
| AA rating affirmed by at least two credit rating agencies or credit ratings at 2 2 2 2 |
|least at the main competitors' level |
| Dividend payout ratio at least 50%, provided that CET 1 ratio is at least 15%. >50 (30) 30 |
|Dividend payout ratio is 30% until CET1 ratio of 15% has been achieved. |
Outlook towards the year end

The first signs of recovery can be seen in the European economy. However, only
modest growth is expected in 2015, despite the measures taken by the European
Central Bank to support economic growth. Similarly, economic growth in
Finland is expected to remain weak. The tension in international politics
will continue to cause uncertainty for the Finnish economy.

Weak economic growth also reduces growth expectations in the financial sector.
Record-low interest rates will erode banks' net interest income and weaken
insurance institutions' investment income. On the other hand, low interest
rates improve customers' loan repayment capacity, which has remained stable
despite the long period of slow growth. The importance of profitability and
capital adequacy is emphasised in an unstable operating environment and under
tightening regulation.

Despite the challenging operating environment, Pohjola Group's consolidated
earnings from continuing operations before tax in 2015 are expected to be at
the same level as in 2014. The most significant uncertainties affecting
earnings in 2015 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

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, 29 April 2015

Pohjola Bank plc

Board of Directors

This Interim Report is available at>Media>Releases.

Financial reporting in 2015

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

Schedule for Interim Reports in 2015:
Interim Report H1/2015: 5 August 2015
Interim Report Q1-3/2015: 28 October 2015


NASDAQ OMX 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. Pohjola provides its customers with banking,
non-life insurance and wealth management services. Pohjola is OP Financial
Group's central bank and is, together with OP Mortgage Bank, responsible for
OP Financial Group's funding operations on money and capital markets. As laid
down in the applicable law, Pohjola, its parent company OP Cooperative and
the member credit institutions are ultimately jointly and severally liable
for each other's debts and commitments. The joint liability in OP is
prescribed by the Act on the Amalgamation of Deposit Banks Act.

Pohjola Bank's Interim Report for 1 January-31 March 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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