2016-08-03 09:00:31 CEST
2016-08-03 09:00:31 CEST
REGULATED INFORMATION
OP Mortgage Bank - Half Year financial report
OP Mortgage Bank Interim Report for January-June 2016
OP MORTGAGE BANK
Stock exchange release 3 August 2016 at 10.00 EEST
Interim Report
OP Mortgage Bank Interim Report for January-June 2016
OP Mortgage Bank (OP MB) is part of OP Financial Group and its role is to raise,
together with OP Corporate Bank plc (formerly Pohjola 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 10,926
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- June amounted to EUR 11.0 (12.9) 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-June 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 June 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 10,512 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 137.0% (140.2) on 30 June 2016.
The CET1 capital requirement is 4.5% and the requirement for the capital
conservation buffer is 2.5%, or a total of 7%.
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 31.7 million in June.
Information on the Basel I floor and capital surplus can be found in note
"Capital base and capital adequacy".
In June 2016, the Financial Supervisory Authority decided 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 decision has
relatively the strongest impact. However, even after the entry into force of the
minimum risk weight, OP MB's capital adequacy remains solid and clearly above
the minimum levels set by authorities. The Financial Supervisory Authority's
decision will most probably enter into force by the end of 2016.
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 June 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 June 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 June 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.
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.
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 + Other administrative expenses + Other
operating expenses) / (Net interest income + Net commissions and fees + Net
trading income + Total net investment income + Other operating income) × 100
+------------------------------+-------+-------+-------+-------+-------+
|Income statement, TEUR |H1/2016|H1/2015|Q2/2016|Q2/2015| 2015|
+------------------------------+-------+-------+-------+-------+-------+
| | | | | | |
+------------------------------+-------+-------+-------+-------+-------+
|Interest income | 45,898| 54,746| 21,598| 27,544|106,362|
+------------------------------+-------+-------+-------+-------+-------+
|Interest expenses | 7,859| 19,916| 2,425| 9,440| 33,007|
+------------------------------+-------+-------+-------+-------+-------+
|Net interest income | 38,039| 34,830| 19,173| 18,104| 73,355|
+------------------------------+-------+-------+-------+-------+-------+
|Impairment loss on receivables| -158| 293| -91| 343| 210|
+------------------------------+-------+-------+-------+-------+-------+
|Net commissons and fees |-24,176|-20,133|-12,020|-10,226|-43,361|
+------------------------------+-------+-------+-------+-------+-------+
|Net trading income | 0| 0| 0| 0| 0|
+------------------------------+-------+-------+-------+-------+-------+
|Net investment income | 2| 1| | | 22|
+------------------------------+-------+-------+-------+-------+-------+
|Other operating income | 1| 1| 0| 0| 1|
+------------------------------+-------+-------+-------+-------+-------+
|Personnel costs | 171| 204| 82| 90| 382|
+------------------------------+-------+-------+-------+-------+-------+
|Other administrative expenses | 1,529| 1,181| 787| 569| 2,612|
+------------------------------+-------+-------+-------+-------+-------+
|Other operating expenses | 1,000| 754| 577| 353| 1,924|
+------------------------------+-------+-------+-------+-------+-------+
|Earnings before tax | 11,007| 12,854| 5,616| 7,210| 25,308|
+------------------------------+-------+-------+-------+-------+-------+
|Income tax expense | 2,240| 2,570| 1,161| 1,442| 5,020|
+------------------------------+-------+-------+-------+-------+-------+
|Profit for the period | 8,768| 10,283| 4,455| 5,768| 20,288|
+------------------------------+-------+-------+-------+-------+-------+
+---------------------------------------+-------+-------+-------+-------+------+
|Statement of comprehensive income, TEUR|H1/2016|H1/2015|Q2/2016|Q2/2015| 2015|
+---------------------------------------+-------+-------+-------+-------+------+
|Profit for the period | 8,768| 10,283| 4,455| 5,768|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 | 8,768| 10,283| 4,455| 5,768|20,473|
+---------------------------------------+-------+-------+-------+-------+------+
+-------------------------+-------+-------+-------+-------+----+
|Key ratios |H1/2016|H1/2015|Q2/2016|Q2/2015|2015|
+-------------------------+-------+-------+-------+-------+----+
|Return on equity (ROE), %| 4.8| 5.7| 4.9| 6.4| 5.6|
+-------------------------+-------+-------+-------+-------+----+
|Cost/income ratio, % | 19| 15| 20| 13| 16|
+-------------------------+-------+-------+-------+-------+----+
+---------------------------------------------------------+----------+---------+
|Cash flow from operating activities, TEUR | H1/2016| H1/2015|
+---------------------------------------------------------+----------+---------+
|Profit for the financial year | 8,768| 10,283|
+---------------------------------------------------------+----------+---------+
|Adjustments to profit for the financial year | 3,213| 5,398|
+---------------------------------------------------------+----------+---------+
|Increase (-) or decrease (+) | | |
|in operating assets | -554,857| -264,840|
+---------------------------------------------------------+----------+---------+
|Receivables from credit institutions |-1,119,400| -19,969|
+---------------------------------------------------------+----------+---------+
|Receivables from the public and public-sector entities | 546,245| -272,837|
+---------------------------------------------------------+----------+---------+
|Other assets | 18,298| 27,967|
+---------------------------------------------------------+----------+---------+
|Increase (+) or decrease (-) | | |
|in operating liabilities | 122,491|1,251,780|
+---------------------------------------------------------+----------+---------+
|Liabilities to credit institutions and | | |
|central banks | 143,000|1,285,000|
+---------------------------------------------------------+----------+---------+
|Other liabilities | -20,509| -33,220|
+---------------------------------------------------------+----------+---------+
| | | |
+---------------------------------------------------------+----------+---------+
|Income tax paid | -3,163| -859|
+---------------------------------------------------------+----------+---------+
|Dividends received | 2| 1|
+---------------------------------------------------------+----------+---------+
|A. Net cash from operating activities | -420,385|1,002,622|
+---------------------------------------------------------+----------+---------+
|Cash flow from investing activities | | |
+---------------------------------------------------------+----------+---------+
|Purchase of PPE and intangible assets | | -540|
+---------------------------------------------------------+----------+---------+
|B. Net cash used in investing activities | | -540|
+---------------------------------------------------------+----------+---------+
|Cash flow from financing activities | | |
+---------------------------------------------------------+----------+---------+
|Increases in debt securities issued | | |
|to the public | 243,488| |
+---------------------------------------------------------+----------+---------+
|Decreases in debt securities issued to the public | | -980,003|
+---------------------------------------------------------+----------+---------+
|Dividends paid and interest on cooperative capital | -16,282| -4,996|
+---------------------------------------------------------+----------+---------+
|C. Net cash used in financing activities | 227,206| -984,999|
+---------------------------------------------------------+----------+---------+
|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) | -193,180| 17,082|
+---------------------------------------------------------+----------+---------+
|Cash and cash equivalents at year-start | 245,120| 109,046|
+---------------------------------------------------------+----------+---------+
|Cash and cash equivalents at year-end | 52,359| 126,443|
+---------------------------------------------------------+----------+---------+
|Change in cash and cash equivalents | -192,762| 17,397|
+---------------------------------------------------------+----------+---------+
| | | |
+---------------------------------------------------------+----------+---------+
|Interest received | 64,074| 82,862|
+---------------------------------------------------------+----------+---------+
|Interest paid | 28,411| 53,237|
+---------------------------------------------------------+----------+---------+
|Adjustments to profit for the financial year | | |
+---------------------------------------------------------+----------+---------+
|Non-cash items | | |
+---------------------------------------------------------+----------+---------+
|Unrealised net gains on foreign exchange operations | 0| 0|
+---------------------------------------------------------+----------+---------+
|Impairment losses on receivables | 160| -292|
+---------------------------------------------------------+----------+---------+
|Other | 3,053| 5,690|
+---------------------------------------------------------+----------+---------+
|Total adjustments | 3,213| 5,398|
+---------------------------------------------------------+----------+---------+
|Cash and cash equivalents | | |
+---------------------------------------------------------+----------+---------+
|Receivables from credit institutions payable on demand | 52,359| 126,443|
+---------------------------------------------------------+----------+---------+
|Total cash and cash equivalents | 52,359| 126,443|
+---------------------------------------------------------+----------+---------+
+----------------------------------------+------------+------------+-----------+
|Balance sheet, TEUR |30 June 2016|30 June 2015|31 Dec 2015|
+----------------------------------------+------------+------------+-----------+
| | | | |
+----------------------------------------+------------+------------+-----------+
|Receivables from credit institutions | 1,915,128| 156,412| 988,490|
+----------------------------------------+------------+------------+-----------+
|Derivative contracts | 315,908| 191,919| 192,206|
+----------------------------------------+------------+------------+-----------+
|Receivables from customers | 9,063,453| 9,600,216| 9,610,252|
+----------------------------------------+------------+------------+-----------+
|Investments assets | 40| 40| 40|
+----------------------------------------+------------+------------+-----------+
|Intangible assets | 2,157| 2,835| 2,575|
+----------------------------------------+------------+------------+-----------+
|Other assets | 60,525| 62,080| 78,823|
+----------------------------------------+------------+------------+-----------+
|Tax assets | 0| 2| 0|
+----------------------------------------+------------+------------+-----------+
|Total assets | 11,357,211| 10,013,505| 10,872,386|
+----------------------------------------+------------+------------+-----------+
|Liabilities to credit institutions | 1,518,000| 2,790,000| 1,375,000|
+----------------------------------------+------------+------------+-----------+
|Derivative contracts | 6,039| 22,769| 12,971|
+----------------------------------------+------------+------------+-----------+
|Debt securities issued to the public | 9,380,372| 6,748,760| 9,002,669|
+----------------------------------------+------------+------------+-----------+
|Provisions and other liabilities | 87,976| 88,896| 108,485|
+----------------------------------------+------------+------------+-----------+
|Tax liabilities | 402| 1,333| 1,325|
+----------------------------------------+------------+------------+-----------+
|Total liabilities | 10,992,789| 9,651,758| 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 | 59,422| 56,747| 66,937|
+----------------------------------------+------------+------------+-----------+
|Total equity | 364,422| 361,747| 371,937|
+----------------------------------------+------------+------------+-----------+
|Total liabilities and shareholders' | | | |
|equity | 11,357,211| 10,013,505| 10,872,386|
+----------------------------------------+------------+------------+-----------+
+----------------------------------------+------------+------------+-----------+
|Off-balance-sheet commitments, TEUR |30 June 2016|30 June 2015|31 Dec 2015|
+----------------------------------------+------------+------------+-----------+
|Irrevocable commitments given on behalf | | | |
|of customers | 51| 1,822| 858|
+----------------------------------------+------------+------------+-----------+
+-----------------------------+-------+--------------+-----------------+-------+
|Statement of changes in | Share| | | Total|
|equity, TEUR |capital|Other reserves|Retained earnings| equity|
+-----------------------------+-------+--------------+-----------------+-------+
| | | | | |
+-----------------------------+-------+--------------+-----------------+-------+
|Shareholders' equity 1 Jan | | | | |
|2015 | 60,000| 245,000| 51,459|356,459|
+-----------------------------+-------+--------------+-----------------+-------+
|Reserve for invested | | | | |
|unrestricted equity | | | | |
+-----------------------------+-------+--------------+-----------------+-------+
|Profit for the period | | | 10,283| 10,283|
+-----------------------------+-------+--------------+-----------------+-------+
|Total comprehensive income | | | | |
+-----------------------------+-------+--------------+-----------------+-------+
|Other changes | | | -4,996| -4,996|
+-----------------------------+-------+--------------+-----------------+-------+
|Shareholders' equity 30 June | | | | |
|2015 | 60,000| 245,000| 56,747|361,747|
+-----------------------------+-------+--------------+-----------------+-------+
| | | | | |
+-----------------------------+-------+--------------+-----------------+-------+
|Shareholders' equity 1 Jan | | | | |
|2016 | 60,000| 245,000| 66,937|371,937|
+-----------------------------+-------+--------------+-----------------+-------+
|Reserve for invested | | | | |
|unrestricted equity | | | | |
+-----------------------------+-------+--------------+-----------------+-------+
|Profit for the period | | | 8,768| 8,768|
+-----------------------------+-------+--------------+-----------------+-------+
|Total comprehensive income | | | | |
+-----------------------------+-------+--------------+-----------------+-------+
|Other changes | | | -16,282|-16,282|
+-----------------------------+-------+--------------+-----------------+-------+
|Shareholders' equity 30 June | | | | |
|2016 | 60,000| 245,000| 59,422|364,422|
+-----------------------------+-------+--------------+-----------------+-------+
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 Jun 2016|31 Dec 2015|
+------------------------------------------------------+-----------+-----------+
| | | |
+------------------------------------------------------+-----------+-----------+
|Shareholders' equity | 364,422| 371,937|
+------------------------------------------------------+-----------+-----------+
|Common Equity Tier 1 (CET1) before deductions | 364,422| 371,937|
+------------------------------------------------------+-----------+-----------+
|Intangible assets | -2,157| -2,575|
+------------------------------------------------------+-----------+-----------+
|Excess funding of pension liability, indirect holdings| | |
|and deferred tax assets for losses | -75| -74|
+------------------------------------------------------+-----------+-----------+
|Share of unaudited profits | -8,768| -20,288|
+------------------------------------------------------+-----------+-----------+
|Impairment loss - shortfall of expected losses | -2,325| -2,046|
+------------------------------------------------------+-----------+-----------+
|Common Equity Tier 1 (CET1) | 351,098| 346,954|
+------------------------------------------------------+-----------+-----------+
|Tier 1 capital (T1) | 351,098| 346,954|
+------------------------------------------------------+-----------+-----------+
|Total capital base | 351,098| 346,954|
+------------------------------------------------------+-----------+-----------+
| | | |
+------------------------------------------------------+-----------+-----------+
|Risk-weighted assets | | |
+------------------------------------------------------+-----------+-----------+
|Credit and counterparty risk | 222,349| 219,560|
+------------------------------------------------------+-----------+-----------+
|Operational risk | 33,898| 27,846|
+------------------------------------------------------+-----------+-----------+
|Total | 256,247| 247,407|
+------------------------------------------------------+-----------+-----------+
| | | |
+------------------------------------------------------+-----------+-----------+
|Key ratios, % | | |
+------------------------------------------------------+-----------+-----------+
|CET1 capital ratio | 137.0| 140.2|
+------------------------------------------------------+-----------+-----------+
|Tier 1 capital ratio | 137.0| 140.2|
+------------------------------------------------------+-----------+-----------+
|Capital adequacy ratio | 137.0| 140.2|
+------------------------------------------------------+-----------+-----------+
| | | |
+------------------------------------------------------+-----------+-----------+
|Basel I floor | | |
+------------------------------------------------------+-----------+-----------+
|Capital base | 351,098| 346,954|
+------------------------------------------------------+-----------+-----------+
|Basel I capital requirements floor | 319,448| 324,461|
+------------------------------------------------------+-----------+-----------+
|Capital buffer for Basel I floor | 31,650| 22,493|
+------------------------------------------------------+-----------+-----------+
+-------------------+----------------+--------------+---------------+----------+
|Classification of | | | | |
|financial assets | | | | |
|and liabilities 30 | | Recognised at| | |
|June 2016, TEUR | | fair value| | |
+-------------------+Loans and other| through| Available| |
|Financial assets | receivables|profit or loss| for sale| Total|
+-------------------+----------------+--------------+---------------+----------+
|Receivables from | | | | |
|credit institutions| 1,915,128| | | 1,915,128|
+-------------------+----------------+--------------+---------------+----------+
|Derivative | | | | |
|contracts | | 315,908| | 315,908|
+-------------------+----------------+--------------+---------------+----------+
|Receivables from | | | | |
|customers | 9,063,453| | | 9,063,453|
+-------------------+----------------+--------------+---------------+----------+
|Shares and | | | | |
|participations | | | 40| 40|
+-------------------+----------------+--------------+---------------+----------+
|Other receivables | 60,525| | | 60,525|
+-------------------+----------------+--------------+---------------+----------+
|Other assets | 2,157| | | 2,157|
+-------------------+----------------+--------------+---------------+----------+
|Total | 11,041,263| 315,908| 40|11,357,211|
+-------------------+----------------+--------------+---------------+----------+
| | | | | |
+-------------------+----------------+--------------+---------------+----------+
| | | Recognised at| | |
| | | fair value| | |
|Financial | | through| Other| |
|liabilities | |profit or loss| liabilities| Total|
+-------------------+----------------+--------------+---------------+----------+
|Liabilities to | | | | |
|credit institutions| | | 1,518,000| 1,518,000|
+-------------------+----------------+--------------+---------------+----------+
|Derivative | | | | |
|contracts | | 6,039| | 6,039|
+-------------------+----------------+--------------+---------------+----------+
|Debt securities | | | | |
|issued to the | | | | |
|public | | | 9,380,372| 9,380,372|
+-------------------+----------------+--------------+---------------+----------+
|Other liabilities | | | 88,378| 88,378|
+-------------------+----------------+--------------+---------------+----------+
|Total | | 6,039| 10,986,750|10,992,789|
+-------------------+----------------+--------------+---------------+----------+
|Valuation | | | | |
|difference of debt | | | | |
|securities issued | | | | |
|to the public | | | | |
|(difference between| | | | |
|fair value and | | | | |
|carrying amount) | | | | |
|30 June 2016 | | | 377,740| 377,740|
+-------------------+----------------+--------------+---------------+----------+
+-------------------+----------------+--------------+---------------+----------+
|Classification of | | | | |
|financial assets | | | | |
|and liabilities 31 | | Recognised at| | |
|Dec 2015, TEUR | | 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 June 2016, |Nominal values/residual term to maturity|
|TEUR | |
+-------------------------------------+---------+---------+---------+----------+
| |Less than| 1-5|More than| |
| | 1 year| years| 5 years| Total|
+-------------------------------------+---------+---------+---------+----------+
|Interest rate derivatives | | | | |
+-------------------------------------+---------+---------+---------+----------+
|Hedging |2,705,096|8,316,977|6,861,177|17,883,250|
+-------------------------------------+---------+---------+---------+----------+
|Total |2,705,096|8,316,977|6,861,177|17,883,250|
+-------------------------------------+---------+---------+---------+----------+
+-------------------------+-------------------+-----------------+
| | Fair values | |
+-------------------------+-------+-----------+Credit equivalent|
| | Assets|Liabilities| |
+-------------------------+-------+-----------+-----------------+
|Interest rate derivatives| | | |
+-------------------------+-------+-----------+-----------------+
|Hedging |315,908| 6,039| 514,377|
+-------------------------+-------+-----------+-----------------+
|Total |315,908| 6,039| 514,377|
+-------------------------+-------+-----------+-----------------+
+-------------------------------------+----------------------------------------+
|Derivative contracts 31 Dec 2015, |Nominal values/residual term to maturity|
|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 | |
+----------------------------------------+ |
|31 Jun 2016 | Fair value measurement at year end |
+----------------------------------------+-------------------+---------+-------+
| |Balance sheet value| Level 1|Level 2|
+----------------------------------------+-------------------+---------+-------+
|Recurring fair value measurements of | | | |
|assets | | | |
+----------------------------------------+-------------------+---------+-------+
|Derivate contracts | 315,908| |315,908|
+----------------------------------------+-------------------+---------+-------+
|Total | 315,908| |315,908|
+----------------------------------------+-------------------+---------+-------+
|Recurring fair value measurements of | | | |
|liabilities | | | |
+----------------------------------------+-------------------+---------+-------+
|Derivate contracts | 6,039| | 6,039|
+----------------------------------------+-------------------+---------+-------+
|Total | 6,039| | 6,039|
+----------------------------------------+-------------------+---------+-------+
|Financial liabilities not measured at | | | |
|fair value | | | |
+----------------------------------------+-------------------+---------+-------+
|Debt securities issued to the public | 9,380,372|9,376,175|381,937|
+----------------------------------------+-------------------+---------+-------+
|Total | 9,380,372|9,376,175|381,937|
+----------------------------------------+-------------------+---------+-------+
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|
+----------------------------------------+-------------------+---------+-------+
Helsinki, 3 August 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
[HUG#2032565]
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