OP Yrityspankki Oyj - Financial Statement Release

OP Corporate Bank plc's Financial Statements Bulletin for 1 January-31 December 2016

OP Corporate Bank plc
Stock Exchange Release, 2 February 2017 at 9.00 am EET
Financial Statements Bulletin


OP Corporate Bank plc's Financial Statements Bulletin for 1 January-31 December
2016

  * Consolidated earnings before tax were EUR 504 million (625). The return on
    equity was 10.4% (14.8).
  * Banking earnings before tax decreased to EUR 260 million (334) due to lower
    net investment income. The loan portfolio grew in the financial year by
    9.7% to EUR 18.0 billion (16.4). The operating cost/income ratio was 32.8%
    (27.4).
  * Non-life Insurance earnings before tax decreased to EUR 231 million (267)
    due to lower net investment income. Operating combined ratio was 87.6%
    (87.3).
  * Other Operations earnings before tax were EUR 13 million (23). Liquidity and
    access to funding remained good.
  * The CET1 ratio was 14.9% (14.1), while the target was 15%.
  * The financial targets were aligned with the OP 2016 strategy.
  * Outlook for 2017: OP Corporate Bank Group's consolidated earnings before tax
    in 2017 are expected to be about the same as or lower than in 2016.
                                 |Q1-4/2016|Q1-4/2015|Change, %
---------------------------------+---------+---------+---------
 Earnings before tax, EUR million|         |         |
---------------------------------+---------+---------+---------
   Banking                       |      260|      334|    -22.1
---------------------------------+---------+---------+---------
   Non-life Insurance            |      231|      267|    -13.2
---------------------------------+---------+---------+---------
   Other Operations              |       13|       23|    -44.5
---------------------------------+---------+---------+---------
 Group total                     |      504|      625|    -19.4
---------------------------------+---------+---------+---------


Comparatives deriving from the income statement are based on figures reported
for continuing operations for the corresponding period a year ago. Unless
otherwise specified, balance-sheet and other cross-sectional figures on 31
December 2015 are used as comparatives.

-------------------------------+---------+---------+---------------------------
 Financial targets             |Q1-4/2016|Q1-4/2015|                     Target
-------------------------------+---------+---------+---------------------------
 Customer experience, NPS (-   |         |         |
 100-+100)                     |       58|         |           70, over time 90
-------------------------------+---------+---------+---------------------------
 Common Equity Tier 1 (CET1)   |         |         |
 ratio, %                      |     14.9|     14.1|                         15
-------------------------------+---------+---------+---------------------------
 Return on economic capital, % |     17.0|     21.6|                         22
-------------------------------+---------+---------+---------------------------
 Expenses of present-day       |         |         |Expenses in 2019 lower than
 business, EUR million         |      471|      475|                    in 2015
-------------------------------+---------+---------+---------------------------
 Dividend payout ratio, %*     |     50.4|       30|                         50
-------------------------------+---------+---------+---------------------------
* Board proposal

Outlook for 2017

The Finnish economy recovered last year driven by consumer spending and
construction in particular. Brexit, in particular, added uncertainty during
2016. The uncertainty remained, however, transient. Confidence indicators
improved during the rest of the year. In Finland, consumer confidence in
particular improved, which was helped by lower unemployment. The housing market
picked up and home prices rose moderately. The world economy is expected to
recover slightly, which together with pro-competitiveness measures should
gradually support Finnish exports. The Finnish economy is expected to continue
to grow at a relatively steady rate on a broader base than before. Political
uncertainty in export markets and partly in Finland too will cast a shadow over
the economic outlook.

Low market interest rates will erode banks' net interest income and weaken
insurance institutions' investment income, but then again will support
customers' repayment capacity. Impairment losses in the banking sector have been
low despite the persistent slow economic growth. The financial sector's
preparation for changing customer behaviour and challenges presented by
digitisation will substantially increase the need for reinvention in the sector
across the board. Industry disruption is threatening to erode income generation
too in the years to come. Changes in the operating environment will emphasise
the role of the management of operational efficiency, profitability and capital
adequacy with a long-term approach.

OP Corporate Bank Group's consolidated earnings before tax in 2017 are expected
to be about the same as or lower than in 2016. The most significant
uncertainties affecting earnings relate to changes in the interest rate and
investment environment, impairment loss on receivables, the rate of business
growth and the effect of large claims on claims expenditure.

All forward-looking statements in this Financial Statement Bulletin 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 OP Corporate Bank
Group and its various functions, and actual results may differ materially from
those expressed in the forward-looking statements.

Helsinki, 2 February 2017

OP Corporate Bank plc
Board of Directors

Financial reporting in 2017

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

Schedule for Interim Reports in 2017:

 Interim Report Q1/2017     27 April 2017

 Interim Report H1/2017     2 August 2017

 Interim Report Q1-3/2017   1 November 2017



DISTRIBUTION
NASDAQ Helsinki Ltd
London Stock Exchange
SIX Swiss Exchange
Major media
www.op.fi, www.pohjola.com

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



OP Corporate Bank is part of the leading Finnish customer-owned financial
services group, OP Financial Group. OP Corporate Bank and OP Mortgage Bank are
responsible for OP's funding in money and capital markets. As laid down in the
applicable law, OP Corporate Bank, OP Mortgage Bank and their 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.
OP Corporate Bank acts as OP's central bank.


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Attachments:

OP Corporate Bank plc's Financial Statements Bulletin 2016.pdf