Pohjola Pankki Oyj - Company Announcement

OP-Pohjola Group Central Cooperative proposes to Pohjola's Board of Directors on increasing the capital adequacy target and decreasing the dividend payout ratio

Pohjola Bank plc
Stock exchange release
6 February 2014 at 8.30 am

OP-Pohjola Group Central Cooperative proposes to Pohjola's Board of Directors on
increasing the capital adequacy target and decreasing the dividend payout ratio


The Executive Board, which acts as the Board of Directors of OP-Pohjola Group
Central Cooperative, Pohjola Bank plc's parent institution, has proposed to the
Board of Directors of Pohjola Bank plc that Pohjola's capital adequacy target of
11% (CT1) be increased to 15% (CET1). This target must be achieved on a front-
loaded basis by the end of 2016.

In order to secure the achievement of the new capital adequacy target, the
Executive Board, which acts as the Board of Directors of OP-Pohjola Group
Central Cooperative, Pohjola Bank plc's parent institution, has proposed to the
Board of Directors of Pohjola Bank plc that Pohjola Group's dividend payout
ratio be decreased from 50% to 30% as of dividend distribution for the financial
year 2014 until the CET1 ratio reaches the new target.

Pohjola Bank plc shares held by OP-Pohjola Group Central Cooperative account for
61.3% of the votes conferred by all shares.

The proposed higher capital adequacy target results from the tighter regulatory
framework, uncertainty related to the treatment of insurance holdings after
2014 and the decision of OP-Pohjola Group Central Cooperative's Supervisory
Board of 5 February 2014 to increase the capital adequacy target for OP-Pohjola
Group's Banking from 15% (CT1) to 18% (CET1). OP-Pohjola Group must meet the
CET1 target, based on the highest-quality form of equity capital (CET1), by the
end of 2016. OP-Pohjola Group aims to maintain a solid capital base that creates
competitive edge and stability.

On 1 January 2014, OP-Pohjola Group's CET1 was 17.6% and capital adequacy ratio
19.6%. On the same date, Pohjola Group's CET1 was 11.9% and capital adequacy
ratio 16.5%.

Pohjola Bank plc's Board of Directors will assess Pohjola Group's financial
targets and any measures to achieve them in such a way that the updated
financial targets can be confirmed before the Annual General Meeting of 20 March
2014.


Pohjola Bank plc

Carina Geber-Teir
Chief Communications Officer

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

FOR MORE INFORMATION, PLEASE CONTACT:
Vesa Aho, CFO, tel. 010 252 2336
Niina Pullinen, Senior Vice President, Investor Relations, tel. 010 252 4494

Pohjola is a Finnish financial services group which provides its customers with
banking, non-life insurance and asset management services. Our mission is to
promote the sustainable prosperity, security and well-being of our customers.
Profitable growth and an increase in company value form our key objectives.
Pohjola Group serves corporate customers in Finland and abroad by providing an
extensive range of financial, investment, cash- management and non-life
insurance services. We offer non-life insurance and private banking services to
private customers. Pohjola Series A shares have been listed on the Large Cap
List of the NASDAQ OMX Helsinki since 1989. The number of shareholders totals
around 32,000. Pohjola's consolidated earnings before tax came to 473 million
euros in 2013 and the balance sheet total amounted to 44 billion euros on 31
December 2013. Pohjola is part of OP-Pohjola Group, the leading financial
services group in Finland with 4.3 million customers.

www.pohjola.com


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