2016-11-02 09:01:32 CET
2016-11-02 09:01:32 CET
REGULATED INFORMATION
OP Mortgage Bank - Interim report (Q1 and Q3)
OP Mortgage Bank Interim Report for 1 January-30 September 2016
OP MORTGAGE BANK Stock exchange release 2 November 2016 Interim Report OP Mortgage Bank Interim Report for 1 January-30 September 2016 OP Mortgage Bank (OP MB) is part of OP Financial Group and its role is to raise, together with OP Corporate Bank plc, funding for the Group from money and capital markets. OP MB is responsible for the Group's funding for the part of covered bond issuance. Financial standing The intermediate loans and loan portfolio of OP MB increased to EUR 10,477 million (10,354)* during the reporting period. The company increased its on- balance sheet loan portfolio by buying mortgage-backed loans from OP Financial Group's member banks worth a total of EUR 413 million. In May, OP MB issued a fixed-rate covered bond with a maturity of seven years in international capital markets. Out of the bond with a nominal value of EUR 1,250 million, OP MB intermediated EUR 1,119 million in intermediate loans to OP Financial Group member cooperative banks. A total of 84 member cooperative banks have intermediate loans from OP MB, worth a total of EUR 1,863 million (743)*. The company's financial standing remained stable throughout the reporting period. Operating profit for January- September amounted to EUR 16.0 (18.6) million. OP MB has used interest rate swaps to hedge against its interest rate risk. Interest rate swaps have been used to swap housing loan interest, intermediate loan interest and interest on issued bonds into the same basis rate. OP MB has entered into all derivative contracts for hedging purposes, with OP Corporate Bank plc being their counterparty. *The comparatives for 2015 are given in brackets. For income statement and other aggregated figures, January-September 2015 figures serve as comparatives. For balance-sheet and other cross-sectional figures, figures at the end of the previous financial year (31 December 2015) serve as comparatives. Collateralisation of bonds issued to the public On 30 September 2016, loans as collateral in security of the covered bonds issued under the Euro Medium Term Covered Note programme worth EUR 15 billion established on 12 November 2010 under the Laki kiinnityspankkitoiminnasta (688/2010) (Covered Bond Act) totalled EUR 10,048 million. Capital adequacy OP MB has presented its capital base and capital adequacy in accordance with the EU capital requirement regulation and directive (EU 575/2013). OP MB uses the Internal Ratings Based Approach (IRBA) to measure its capital adequacy requirement for credit risk. OP MB uses the Standardised Approach to measure its capital adequacy for operational risk. The Common Equity Tier 1 (CET1) ratio stood at 137.6% (140.2) on 30 September 2016. The CET1 capital requirement is 4.5% and the requirement for the capital conservation buffer is 2.5%, or a total of 7%. The minimum total capital requirement is 8% and 10.5% with increased capital conservation buffer. OP MB's highest minimum capital requirement is determined by the Basel I floor. OP MB's capital base exceeded the Basel I floor by EUR 43.7 million in September. Information on the Basel I floor and capital surplus can be found in note "Capital base and capital adequacy". The Finnish Financial Supervisory Authority continues to take measures to set a 10% minimum risk weight on housing loans in an effort, according to the Authority, to prepare for an increased systemic risk. OP MB's loan portfolio consists of low-risk home loans, on which the Authority's possible decision will relatively have the strongest impact. Based on an assessment, OP MB's capital adequacy will, however, remain solid even after the entry into force of the floor and be clearly above the minimum requirements set by the authorities; the minimum level of capital will continue to be determined according to the Basel I floor even after the setting of the floor. The Financial Supervisory Authority's decision will probably take effect in mid-2017. Joint and several liability of amalgamation Under the Act on the Amalgamation of Deposit Banks, the amalgamation of the cooperative banks comprises the organisation's central cooperative (OP Cooperative), the central cooperative's member credit institutions and the companies belonging to their consolidation groups as well as credit and financial institutions and service companies in which the above together hold more than half of the total votes. This amalgamation is supervised on a consolidated basis. On 30 September 2016, OP Cooperative's members comprised 178 member cooperative banks as well as OP Corporate Bank plc, OP Mortgage Bank, OP Card Company Plc and OP Process Services Ltd. The central cooperative is responsible for issuing instructions to its member credit institutions concerning their internal control and risk management, their procedures for securing liquidity and capital adequacy as well as for compliance with harmonised accounting policies in the preparation of the amalgamation's consolidated financial statements. As a support measure referred to in the Act on the Amalgamation of Deposit Banks, the central cooperative is liable to pay any of its member credit institutions an amount that is necessary to prevent the credit institution from being placed in liquidation. The central cooperative is also liable for the debts of a member credit institution which cannot be paid using the member credit institution's assets. Each member bank is liable to pay a proportion of the amount which the central cooperative has paid to either another member bank as part of support action or to a creditor of such member bank in payment of an amount overdue which the creditor has not received from the member bank. Furthermore, in the case of the central cooperative's default, a member bank has unlimited refinancing liability for the central cooperative's debts as referred to in the Co-operatives Act. Each member bank's liability for the amount the central cooperative has paid to the creditor on behalf of a member bank is divided between the member banks in proportion to their last adopted balance sheets. OP Financial Group's insurance companies do not fall within the scope of joint and several liability. According to Section 25 of the Covered Bond Act, the holder of a covered bond has the right to receive a payment for the entire term of the bond from the assets entered as collateral before other receivables without this being prevented by OP MB's liquidation or bankruptcy. Personnel On 30 September 2016, OP MB had five employees. The Bank purchases all the most important support services from OP Cooperative and its Group members, reducing the need for its own personnel. Administration The Board composition is as follows: Chairman Harri Luhtala Chief Financial Officer, OP Cooperative Members Elina Ronkanen-Minogue Head of Asset and Liability Management and Group Treasury, OP Cooperative Hanno Hirvinen Group Treasurer, OP Corporate Bank plc OP MB's Managing Director is Lauri Iloniemi and Hanno Hirvinen is his deputy. Risk exposure The most typical types of risks related to OP MB are credit risk, structural funding risk, liquidity risk and interest rate risk. The key credit risk indicators in use show that OP MB's credit risk exposure is stable and the limit for liquidity risk set by the Board of Directors has not been exceeded. The liquidity buffer for OP Financial Group, managed by OP Corporate Bank plc, is exploitable by OP MB. OP MB has used interest rate swaps to hedge against its interest rate risk. Interest rate swaps have been used to swap housing loan interest, intermediate loan interest and interest on issued bonds into the same basis rate. The interest rate risk may be considered to be low. Outlook The existing issuance programme makes it possible to issue new covered bonds in 2016. It is expected that the Bank's capital adequacy will remain strong, risk exposure favourable and the overall quality of the loan portfolio good. Accounting policies The Interim Report for 1 January-30 September 2016 has been prepared in accordance with IAS 34 (Interim Financial Reporting). This Interim Report is based on unaudited figures. Given that all figures have been rounded off, the sum total of individual figures may deviate from the presented sums. The Interim Report is available in Finnish and English. The Finnish version is official that will be used if there is any discrepancy between the language versions. OP MB's related parties include the parent company OP Cooperative and its subsidiaries, the OP Financial Group pension insurance companies OP Bank Group Pension Fund and OP Bank Group Pension Foundation, and the company's administrative personnel. Standard loan terms and conditions are applied to loans granted to the related parties. Loans are tied to generally used reference interest rates. The financial year saw no major changes in related-party transactions. The income statement layout grouping has been updated for the Interim Report for 1 January-30 September 2016. Comparatives have been restated to correspond to the new grouping. This has no effect on profit for the period. Comparatives have not been presented in a separate table due to the minor effect of the update on the income statement. Changes caused by the new grouping are as follows: Net interest income after impairment loss is not presented separately. Impairment loss on receivables is presented in its own line after expenses. "Net trading income" previously presented in its own line has been incorporated into "Net investment income". Expenses have been divided into personnel costs, amortisation/depreciation and other operating expenses. Expenses were previously divided into personnel costs, other administrative expenses and other operating expenses. Formulas for Alternative Performance Measures The Alternative Performance Measures Guidelines issued by the European Securities and Markets Authority (ESMA) came into force on 3 July 2016. The Alternative Performance Measures are presented to illustrate the financial performance of business operations and to improve comparability between reporting periods. They should not be considered to be replacements for the performance measures defined in IFRS governing financial reporting. The formulas for the used Alternative Performance Measures are presented below and they correspond to the previously presented performance indicators in terms of content. Return on equity (ROE), % = Annualised profit for the period / Equity capital (average equity capital at the beginning and end of the period) × 100 Cost/income ratio, % = (Personnel costs + Depreciation/amortisation and impairment loss + Other operating expenses) / (Net interest income + Net commission and fees + Net investment income + Other operating income) × 100 +--------------------------------+----------+----------+-------+-------+-------+ |Income statement, TEUR |Q1-Q3/2016|Q1-Q3/2015|Q3/2016|Q3/2015| 2015| +--------------------------------+----------+----------+-------+-------+-------+ | | | | | | | +--------------------------------+----------+----------+-------+-------+-------+ |Net interest income | 56,601| 53,482| 18,562| 18,652| 73,355| +--------------------------------+----------+----------+-------+-------+-------+ | Interest income | 65,439| 80,044| 19,541| 25,298|106,362| +--------------------------------+----------+----------+-------+-------+-------+ | Interest expenses | 8,838| 26,563| 979| 6,647| 33,007| +--------------------------------+----------+----------+-------+-------+-------+ |Net comissions and fees | -36,110| -32,033|-11,934|-11,900|-43,361| +--------------------------------+----------+----------+-------+-------+-------+ |Net investment income | 2| 22| 0| 21| 22| +--------------------------------+----------+----------+-------+-------+-------+ |Other operating income | 22| 1| 21| 0| 1| +--------------------------------+----------+----------+-------+-------+-------+ |Total income | 20,514| 21,472| 6,649| 6,773| 30,016| +--------------------------------+----------+----------+-------+-------+-------+ |Personnel costs | 243| 288| 72| 84| 382| +--------------------------------+----------+----------+-------+-------+-------+ |Depreciation/amortisation and | | | | | | |impairment loss | 627| 507| 209| 192| 716| +--------------------------------+----------+----------+-------+-------+-------+ |Other operating expenses | 3,442| 2,352| 1,331| 732| 3,821| +--------------------------------+----------+----------+-------+-------+-------+ |Total expenses | 4,313| 3,146| 1,613| 1,008| 4,918| +--------------------------------+----------+----------+-------+-------+-------+ |Impairment loss on receivables | -179| 245| -21| -48| 210| +--------------------------------+----------+----------+-------+-------+-------+ |Earnings before tax | 16,023| 18,571| 5,015| 5,717| 25,308| +--------------------------------+----------+----------+-------+-------+-------+ |Income tax expense | 3,243| 3,709| 1,003| 1,139| 5,020| +--------------------------------+----------+----------+-------+-------+-------+ |Profit for the period | 12,780| 14,862| 4,012| 4,578| 20,288| +--------------------------------+----------+----------+-------+-------+-------+ +-------------------------------+----------+----------+-------+-------+------+ |Statement of comprehensive | | | | | | |income, TEUR | | | | | | | |Q1-Q3/2016|Q1-Q3/2015|Q3/2016|Q3/2015| 2015| +-------------------------------+----------+----------+-------+-------+------+ | | | | | | | +-------------------------------+----------+----------+-------+-------+------+ |Profit for the period | 12,780| 14,862| 4,012| 4,578|20,288| +-------------------------------+----------+----------+-------+-------+------+ | | | | | | | +-------------------------------+----------+----------+-------+-------+------+ |Items that will not be | | | | | | |reclassified to profit or loss | | | | | | +-------------------------------+----------+----------+-------+-------+------+ |Gains/(losses) arising from | | | | | | |remeasurement of defined | | | | | | |benefit plans | | | | | 231| +-------------------------------+----------+----------+-------+-------+------+ |Income tax on gains/(losses) on| | | | | | |arising from remeasurement of | | | | | | |defined benefit plans | | | | | -46| +-------------------------------+----------+----------+-------+-------+------+ |Total comprehensive income | 12,780| 14,862| 4,012| 4,578|20,473| +-------------------------------+----------+----------+-------+-------+------+ +-------------------------+----------+----------+-------+-------+----+ |Key ratios |Q1-Q3/2016|Q1-Q3/2015|Q3/2016|Q3/2015|2015| +-------------------------+----------+----------+-------+-------+----+ |Return on equity (ROE), %| 4.6| 5.5| 4.4| 5.0| 5.6| +-------------------------+----------+----------+-------+-------+----+ |Cost/income ratio, % | 21| 15| 24| 15| 16| +-------------------------+----------+----------+-------+-------+----+ +--------------------------------------------------------+----------+----------+ |Cash flow | | | |from operating activities, TEUR |Q1-Q3/2016|Q1-Q3/2015| +--------------------------------------------------------+----------+----------+ |Profit for the financial year | 12,780| 14,864| +--------------------------------------------------------+----------+----------+ |Adjustments to profit for the financial year | 2,656| 7,426| +--------------------------------------------------------+----------+----------+ |Increase (-) or decrease (+) | | | |in operating assets | -90,568| 143,887| +--------------------------------------------------------+----------+----------+ |Receivables from credit institutions |-1,119,400| -19,969| +--------------------------------------------------------+----------+----------+ |Receivables from the public and public-sector entities | 994,722| 132,018| +--------------------------------------------------------+----------+----------+ |Other assets | 34,110| 31,839| +--------------------------------------------------------+----------+----------+ |Increase (+) or decrease (-) | | | |in operating liabilities | -126,183| -114,254| +--------------------------------------------------------+----------+----------+ |Liabilities to credit institutions and | | | |central banks | -87,000| -80,000| +--------------------------------------------------------+----------+----------+ |Other liabilities | -39,183| -34,254| +--------------------------------------------------------+----------+----------+ | | | | +--------------------------------------------------------+----------+----------+ |Income tax paid | -4,745| -1,450| +--------------------------------------------------------+----------+----------+ |Dividends received | 2| 22| +--------------------------------------------------------+----------+----------+ |A. Net cash from operating activities | -201,315| 51,923| +--------------------------------------------------------+----------+----------+ |Cash flow from investing activities | | | +--------------------------------------------------------+----------+----------+ |Purchase of PPE and intangible assets | | -681| +--------------------------------------------------------+----------+----------+ |B. Net cash used in investing activities | | -681| +--------------------------------------------------------+----------+----------+ |Cash flow from financing activities | | | +--------------------------------------------------------+----------+----------+ |Increases in debt securities issued | | | |to the public | | 15,057| +--------------------------------------------------------+----------+----------+ |Dividends paid and interest on cooperative capital | -16,282| -4,997| +--------------------------------------------------------+----------+----------+ |C. Net cash used in financing activities | 229,021| 10,060| +--------------------------------------------------------+----------+----------+ |D. Effect of foreign exchange rate changes on cash and | | | |cash equivalents | 0| 0| +--------------------------------------------------------+----------+----------+ |Net change in cash and cash equivalents (A+B+C+D) | 27,705| 61,301| +--------------------------------------------------------+----------+----------+ |Cash and cash equivalents at year-start | 245,120| 109,046| +--------------------------------------------------------+----------+----------+ |Cash and cash equivalents at year-end | 273,453| 170,854| +--------------------------------------------------------+----------+----------+ |Change in cash and cash equivalents | 28,332| 61,808| +--------------------------------------------------------+----------+----------+ | | | | +--------------------------------------------------------+----------+----------+ |Interest received | 99,282| 112,129| +--------------------------------------------------------+----------+----------+ |Interest paid | 47,808| 61,063| +--------------------------------------------------------+----------+----------+ |Adjustments to profit for the financial year | | | +--------------------------------------------------------+----------+----------+ |Non-cash items | | | +--------------------------------------------------------+----------+----------+ |Unrealised net gains on foreign exchange operations | 0| 0| +--------------------------------------------------------+----------+----------+ |Impairment losses on receivables | 181| -243| +--------------------------------------------------------+----------+----------+ |Other | 2,474| 7,669| +--------------------------------------------------------+----------+----------+ |Total adjustments | 2,656| 7,426| +--------------------------------------------------------+----------+----------+ |Cash and cash equivalents | | | +--------------------------------------------------------+----------+----------+ |Receivables from credit institutions payable on demand | 273,453| 170,854| +--------------------------------------------------------+----------+----------+ |Total cash and cash equivalents | 273,453| 170,854| +--------------------------------------------------------+----------+----------+ +------------------------------------------+-----------+-----------+-----------+ |Balance sheet, TEUR |30 Sep 2016|30 Sep 2015|31 Dec 2015| +------------------------------------------+-----------+-----------+-----------+ | | | | | +------------------------------------------+-----------+-----------+-----------+ |Receivables from credit institutions | 2,136,222| 200,823| 988,490| +------------------------------------------+-----------+-----------+-----------+ |Derivative contracts | 322,942| 200,981| 192,206| +------------------------------------------+-----------+-----------+-----------+ |Receivables from customers | 8,614,076| 9,194,581| 9,610,252| +------------------------------------------+-----------+-----------+-----------+ |Investments assets | 40| 40| 40| +------------------------------------------+-----------+-----------+-----------+ |Intangible assets | 1,948| 2,784| 2,575| +------------------------------------------+-----------+-----------+-----------+ |Other assets | 44,713| 58,208| 78,823| +------------------------------------------+-----------+-----------+-----------+ |Tax assets | 196| 3| | +------------------------------------------+-----------+-----------+-----------+ |Total assets | 11,120,137| 9,657,420| 10,872,386| +------------------------------------------+-----------+-----------+-----------+ |Liabilities to credit institutions | 1,288,000| 1,425,000| 1,375,000| +------------------------------------------+-----------+-----------+-----------+ |Derivative contracts | 5,094| 5,639| 12,971| +------------------------------------------+-----------+-----------+-----------+ |Debt securities issued to the public | 9,389,287| 7,770,710| 9,002,669| +------------------------------------------+-----------+-----------+-----------+ |Provisions and other liabilities | 69,301| 87,863| 108,485| +------------------------------------------+-----------+-----------+-----------+ |Tax liabilities | 19| 1,883| 1,325| +------------------------------------------+-----------+-----------+-----------+ |Total liabilities | 10,751,702| 9,291,095| 10,500,450| +------------------------------------------+-----------+-----------+-----------+ |Shareholders' equity | | | | +------------------------------------------+-----------+-----------+-----------+ | Share capital | 60,000| 60,000| 60,000| +------------------------------------------+-----------+-----------+-----------+ | Reserve for invested unrestricted equity| 245,000| 245,000| 245,000| +------------------------------------------+-----------+-----------+-----------+ | Retained earnings | 63,435| 61,325| 66,937| +------------------------------------------+-----------+-----------+-----------+ |Total equity | 368,435| 366,325| 371,937| +------------------------------------------+-----------+-----------+-----------+ |Total liabilities and shareholders' equity| 11,120,137| 9,657,420| 10,872,386| +------------------------------------------+-----------+-----------+-----------+ +------------------------------------------+-----------+-----------+-----------+ |Off-balance-sheet commitments, TEUR |30 Sep 2016|30 Sep 2015|31 Dec 2015| +------------------------------------------+-----------+-----------+-----------+ |Irrevocable commitments given on behalf of| | | | |customers | 19| 1,583| 858| +------------------------------------------+-----------+-----------+-----------+ +--------------------+-------------+--------------+---------------+------------+ |Statement of changes|Share capital|Other reserves| Retained| | |in equity, TEUR | | | earnings|Total equity| +--------------------+-------------+--------------+---------------+------------+ | | | | | | +--------------------+-------------+--------------+---------------+------------+ |Shareholders' equity| | | | | |1 Jan 2015 | 60,000| 245,000| 51,459| 356,459| +--------------------+-------------+--------------+---------------+------------+ |Reserve for invested| | | | | |unrestricted equity| | | | | +--------------------+-------------+--------------+---------------+------------+ |Profit for the | | | | | |period | | | 14,862| 14,862| +--------------------+-------------+--------------+---------------+------------+ |Total comprehensive | | | | | |income | | | | | +--------------------+-------------+--------------+---------------+------------+ |Other changes | | | -4,996| -4,996| +--------------------+-------------+--------------+---------------+------------+ |Shareholders' equity| | | | | |30 Sep 2015 | 60,000| 245,000| 61,325| 366,325| +--------------------+-------------+--------------+---------------+------------+ | | | | | | +--------------------+-------------+--------------+---------------+------------+ |Shareholders' equity| | | | | |1 Jan 2016 | 60,000| 245,000| 66,937| 371,937| +--------------------+-------------+--------------+---------------+------------+ |Reserve for invested| | | | | |unrestricted equity | | | | | +--------------------+-------------+--------------+---------------+------------+ |Profit for the | | | | | |period | | | 12,780| 12,780| +--------------------+-------------+--------------+---------------+------------+ |Total comprehensive | | | | | |income | | | | | +--------------------+-------------+--------------+---------------+------------+ |Other changes | | | -16,282| -16,282| +--------------------+-------------+--------------+---------------+------------+ |Shareholders' equity| | | | | |30 Sep 2016 | 60,000| 245,000| 63,435| 368,435| +--------------------+-------------+--------------+---------------+------------+ OP MB has presented its capital base and capital adequacy in accordance with the EU capital requirement regulation and directive (EU 575/2013). +---------------------------------+-----------+-----------+ |Capital base and capital | | | |adequacy, TEUR |30 Sep 2016|31 Dec 2015| +---------------------------------+-----------+-----------+ | | | | +---------------------------------+-----------+-----------+ |Shareholders' equity | 368,435| 371,937| +---------------------------------+-----------+-----------+ |Common Equity Tier 1 (CET1) | | | |before deductions | 368,435| 371,937| +---------------------------------+-----------+-----------+ |Intangible assets | -1,948| -2,575| +---------------------------------+-----------+-----------+ |Excess funding of pension | | | |liability, indirect holdings and | | | |deferred tax assets for losses | -75| -74| +---------------------------------+-----------+-----------+ |Share of unaudited profits | -12,780| -20,288| +---------------------------------+-----------+-----------+ |Impairment loss - shortfall of | | | |expected losses | -2,515| -2,046| +---------------------------------+-----------+-----------+ |Common Equity Tier 1 (CET1) | 351,116| 346,954| +---------------------------------+-----------+-----------+ |Tier 1 capital (T1) | 351,116| 346,954| +---------------------------------+-----------+-----------+ |Total capital base | 351,116| 346,954| +---------------------------------+-----------+-----------+ | | | | +---------------------------------+-----------+-----------+ |Risk-weighted assets | | | +---------------------------------+-----------+-----------+ |Credit and counterparty risk | 221,297| 219,560| +---------------------------------+-----------+-----------+ |Operational risk | 33,898| 27,846| +---------------------------------+-----------+-----------+ |Total | 255,195| 247,407| +---------------------------------+-----------+-----------+ | | | | +---------------------------------+-----------+-----------+ |Key ratios, % | | | +---------------------------------+-----------+-----------+ |CET1 capital ratio | 137.6| 140.2| +---------------------------------+-----------+-----------+ |Tier 1 capital ratio | 137.6| 140.2| +---------------------------------+-----------+-----------+ |Capital adequacy ratio | 137.6| 140.2| +---------------------------------+-----------+-----------+ | | | | +---------------------------------+-----------+-----------+ |Basel I floor | | | +---------------------------------+-----------+-----------+ |Capital base | 351,116| 346,954| +---------------------------------+-----------+-----------+ |Basel I capital requirements | | | |floor | 307,409| 324,461| +---------------------------------+-----------+-----------+ |Capital buffer for Basel I floor | 43,707| 22,493| +---------------------------------+-----------+-----------+ +------------------------------------------------------------------------------+ |Classification of financial assets and liabilities 30 Sep 2016, TEUR | +-------------------+----------------+--------------+---------------+----------+ | | | Recognised at| | | | | | fair value| | | | |Loans and other|through profit| Available| | |Financial assets | receivables| or loss| for sale| Total| +-------------------+----------------+--------------+---------------+----------+ |Receivables from | | | | | |credit institutions| 2,136,222| | | 2,136,222| +-------------------+----------------+--------------+---------------+----------+ |Derivative | | | | | |contracts | | 322,942| | 322,942| +-------------------+----------------+--------------+---------------+----------+ |Receivables from | | | | | |customers | 8,614,076| | | 8,614,076| +-------------------+----------------+--------------+---------------+----------+ |Shares and | | | | | |participations | | | 40| 40| +-------------------+----------------+--------------+---------------+----------+ |Other receivables | 44,713| | | 44,713| +-------------------+----------------+--------------+---------------+----------+ |Other assets | 2,144| | | 2,144| +-------------------+----------------+--------------+---------------+----------+ |Total | 10,797,155| 322,942| 40|11,120,137| +-------------------+----------------+--------------+---------------+----------+ | | +-------------------+----------------+--------------+---------------+----------+ | | | Recognised at| | | | | | fair value| | | |Financial | |through profit| Other| | |liabilities | | or loss| liabilities| Total| +-------------------+----------------+--------------+---------------+----------+ |Liabilities to | | | | | |credit institutions| | | 1,288,000| 1,288,000| +-------------------+----------------+--------------+---------------+----------+ |Derivative | | | | | |contracts | | 5,094| | 5,094| +-------------------+----------------+--------------+---------------+----------+ |Debt securities | | | | | |issued to the | | | | | |public | | | 9,389,287| 9,389,287| +-------------------+----------------+--------------+---------------+----------+ |Other liabilities | | | 69,321| 69,321| +-------------------+----------------+--------------+---------------+----------+ |Total | | 5,094| 10,746,608|10,751,702| +-------------------+----------------+--------------+---------------+----------+ |Valuation | | | | | |difference of debt | | | | | |securities issued | | | | | |to the public | | | | | |(difference between| | | | | |fair value and | | | | | |carrying amount) | | | | | |30 Sep 2016 | | | 408,841| 408,841| +-------------------+----------------+--------------+---------------+----------+ +------------------------------------------------------------------------------+ |Classification of financial assets and liabilities 31 Dec 2015, TEUR | +-------------------+----------------+--------------+---------------+----------+ | | | Recognised at| | | | | | fair value| | | | |Loans and other| through| Available| | |Financial assets | receivables|profit or loss| for sale| Total| +-------------------+----------------+--------------+---------------+----------+ |Receivables from | | | | | |credit institutions| 988,490| | | 988,490| +-------------------+----------------+--------------+---------------+----------+ |Derivative | | | | | |contracts | | 192,206| | 192,206| +-------------------+----------------+--------------+---------------+----------+ |Receivables from | | | | | |customers | 9,610,252| | | 9,610,252| +-------------------+----------------+--------------+---------------+----------+ |Shares and | | | | | |participations | | | 40| 40| +-------------------+----------------+--------------+---------------+----------+ |Other receivables | 78,823| | | 78,823| +-------------------+----------------+--------------+---------------+----------+ |Other assets | 2,575| | | 2,575| +-------------------+----------------+--------------+---------------+----------+ |Total | 10,680,140| 192,206| 40|10,872,386| +-------------------+----------------+--------------+---------------+----------+ | | | | | | +-------------------+----------------+--------------+---------------+----------+ | | | Recognised at| | | | | | fair value| | | |Financial | | through| Other| | |liabilities | |profit or loss| liabilities| Total| +-------------------+----------------+--------------+---------------+----------+ |Liabilities to | | | | | |credit institutions| | | 1,375,000| 1,375,000| +-------------------+----------------+--------------+---------------+----------+ |Derivative | | | | | |contracts | | 12,971| | 12,971| +-------------------+----------------+--------------+---------------+----------+ |Debt securities | | | | | |issued to the | | | | | |public | | | 9,002,669| 9,002,669| +-------------------+----------------+--------------+---------------+----------+ |Other liabilities | | | 109,810| 109,810| +-------------------+----------------+--------------+---------------+----------+ |Total | | 12,971| 10,487,479|10,500,450| +-------------------+----------------+--------------+---------------+----------+ |Valuation | | | | | |difference of debt | | | | | |securities issued | | | | | |to the public | | | | | |(difference between| | | | | |fair value and | | | | | |carrying amount) | | | | | |31 Dec 2015 | | | 219,641| 219,641| +-------------------+----------------+--------------+---------------+----------+ Debt securities issued to the public are carried at amortised cost. The fair value of these debt instruments has been measured using information available in markets and employing commonly used valuation techniques. The difference between the fair value and carrying amount is presented as valuation difference in the "Classification of financial assets and liabilities" note. +---------------------------+--------------------------------------------------+ |Derivative contracts 30 Sep| Nominal values/residual term to maturity | |2016, TEUR | | +---------------------------+---------+-----------+-----------------+----------+ | |Less than| 1-5| More than| | | | 1 year| years| 5 years| Total| +---------------------------+---------+-----------+-----------------+----------+ |Interest rate derivatives | | | | | +---------------------------+---------+-----------+-----------------+----------+ |Hedging |2,778,260| 8,216,977| 6,412,272|17,407,509| +---------------------------+---------+-----------+-----------------+----------+ |Total |2,778,260| 8,216,977| 6,412,272|17,407,509| +---------------------------+---------+-----------+-----------------+----------+ +---------------------------+---------------------+-----------------+ | | Fair values | | +---------------------------+---------+-----------+Credit equivalent| | | Assets|Liabilities| | +---------------------------+---------+-----------+-----------------+ |Interest rate derivatives | | | | +---------------------------+---------+-----------+-----------------+ |Hedging | 322,942| 5,094| 505,778| +---------------------------+---------+-----------+-----------------+ |Total | 322,942| 5,094| 505,778| +---------------------------+---------+-----------+-----------------+ +---------------------------+--------------------------------------------------+ |Derivative contracts 31 Dec| Nominal values/residual term to maturity | |2015, TEUR | | +---------------------------+---------+-----------+-----------------+----------+ | |Less than| 1-5| More than| | | | 1 year| years| 5 years| Total| +---------------------------+---------+-----------+-----------------+----------+ |Interest rate derivatives | | | | | +---------------------------+---------+-----------+-----------------+----------+ |Hedging |2,387,456| 8,816,977| 7,118,958|18,323,391| +---------------------------+---------+-----------+-----------------+----------+ |Total |2,387,456| 8,816,977| 7,118,958|18,323,391| +---------------------------+---------+-----------+-----------------+----------+ +---------------------------+---------------------+-----------------+ | | Fair values | | +---------------------------+---------+-----------+Credit equivalent| | | Assets|Liabilities| | +---------------------------+---------+-----------+-----------------+ |Interest rate derivatives | | | | +---------------------------+---------+-----------+-----------------+ |Hedging | 192,206| 12,971| 411,985| +---------------------------+---------+-----------+-----------------+ |Total | 192,206| 12,971| 411,985| +---------------------------+---------+-----------+-----------------+ +------------------------------------------------------------------------------+ |Financial instruments classification, grouped by valuation technique, TEUR | +----------------------------------------+-------------------------------------+ | | | +----------------------------------------+-------------------------------------+ |30 Sep 2016 | Fair value measurement at year end | +----------------------------------------+-------------------+---------+-------+ | |Balance sheet value| Level 1|Level 2| +----------------------------------------+-------------------+---------+-------+ |Recurring fair value measurements of | | | | |assets | | | | +----------------------------------------+-------------------+---------+-------+ |Derivate contracts | 322,942| |322,942| +----------------------------------------+-------------------+---------+-------+ |Total | 322,942| |322,942| +----------------------------------------+-------------------+---------+-------+ |Recurring fair value measurements of | | | | |liabilities | | | | +----------------------------------------+-------------------+---------+-------+ |Derivate contracts | 5,094| | 5,094| +----------------------------------------+-------------------+---------+-------+ |Total | 5,094| | 5,094| +----------------------------------------+-------------------+---------+-------+ |Financial liabilities not measured at | | | | |fair value | | | | +----------------------------------------+-------------------+---------+-------+ |Debt securities issued to the public | 9,389,287|9,411,634|386,494| +----------------------------------------+-------------------+---------+-------+ |Total | 9,389,287|9,411,634|386,494| +----------------------------------------+-------------------+---------+-------+ |OP MB does not hold any transfers between the levels of fair value valuation. | | | | | | | | | +----------------------------------------+-------------------------------------+ |31 Dec 2015 | Fair value measurement at year end | +----------------------------------------+-------------------+---------+-------+ | |Balance sheet value| Level 1|Level 2| +----------------------------------------+-------------------+---------+-------+ |Recurring fair value measurements of | | | | |assets | | | | +----------------------------------------+-------------------+---------+-------+ |Derivate contracts | 192,206| |192,206| +----------------------------------------+-------------------+---------+-------+ |Total | 192,206| |192,206| +----------------------------------------+-------------------+---------+-------+ |Recurring fair value measurements of | | | | |liabilities | | | | +----------------------------------------+-------------------+---------+-------+ |Derivate contracts | 12,971| | 12,971| +----------------------------------------+-------------------+---------+-------+ |Total | 12,971| | 12,971| +----------------------------------------+-------------------+---------+-------+ |Financial liabilities not measured at | | | | |fair value | | | | +----------------------------------------+-------------------+---------+-------+ |Debt securities issued to the public | 9,002,669|8,872,880|349,430| +----------------------------------------+-------------------+---------+-------+ |Total | 9,002,669|8,872,880|349,430| +----------------------------------------+-------------------+---------+-------+ Financial reporting 2017 Schedule for Financial Statements Bulletin for 2016 and Interim Reports in 2017: Financial Statements Bulletin 2016 2 February 2017 Interim Report Q1/2017 27 April 2017 Interim Report H1/2017 2 August 2017 Interim Report Q1-3/2017 1 November 2017 Helsinki, 2 November 2016 OP Mortgage Bank Board of Directors For more information, please contact Managing Director Lauri Iloniemi, tel. +358 (0)10 252 3541 DISTRIBUTION LSE London Stock Exchange OAM, Officially Appointed Mechanism Major media op.fi []
© 2024 Nasdaq, Inc. All Rights Reserved |