OP Yrityspankki Oyj - Company Announcement

In its updated long-term strategy, OP Financial Group aims to become a diversified services company

OP Corporate Bank plc
OP Cooperative
Stock Exchange Release
10 June 2016 at 9.00 am (EEST)

In its updated long-term strategy, OP Financial Group aims to become a
diversified services company

The Supervisory Board of OP Financial Group's central cooperative has confirmed
OP Financial Group's strategy and Group-level strategic goals.

According to the new strategy, OP Financial Group aims to gradually change from
a plain financial services provider to a diversified services company of the
digital era with strong financial services expertise. The strategy highlights
customer experience enhancement by digitising services and processes. At the
first stage, business diversification involves expanding, for example, the
health and wellbeing business.

- This is a major strategic renewal amid the dramatic transformation underway
that will change our present business models and practices, says Reijo Karhinen,
President and Group Executive Chairman of OP Financial Group.

- We see digitisation and change in customer behaviour as a great opportunity
for OP. When the operating environment changes, OP Financial Group must reinvent
itself too.

Diversified services company of modern times

The underlying reason behind the updated strategy is the dramatic and fast
digital transformation underway in the financial sector, which will constantly
attract new market entrants. At the same time, digitisation provides an
opportunity to improve customer experience, create new business and streamline
the current processes.

In the years to come, OP intends to make health and wellbeing services its
fourth business line alongside Banking, Non-life Insurance and Wealth
Management.

- Our mission is to promote the sustainable prosperity, security and wellbeing
of our owner-customers and in our operating region. Expanding health and
wellbeing services is a natural part of implementing our mission and a major
step on the way from a financial services provider towards a diversified
services company, explains Reijo Karhinen.

Heavy investments in customer experience and service digitisation

OP will initiate a large-scale development programme aimed at speeding up the
digitisation of Banking, Non-life and Wealth Management services. Annual
development expenditure will increase to 300-400 million euros in the next few
years, i.e. the amount for the next five years will total up to 2 billion euros.

- In the changing operating environment, only those actors will succeed that are
able to reinvent themselves and thereby offer the best possible customer
experience irrespective of time, place and service channel. A winning customer
experience arises from collaboration between human interaction and technology,
says Karhinen.

New customer experience indicator alongside financial targets

The Group has increased its capital adequacy and profitability targets (CET1
target 22% and economic capital return target 22%) and seeks to achieve a new
level in business efficiency by, for example, digitising and automating
processes (expenses in 2019 lower than in 2015).

The development investments required by upgrading and streamlining business will
add to the Group's expenses and weaken Group profitability before the benefits
from such investments are realised in terms of better financial indicators.

Alongside its financial targets, OP has set a higher target for the number of
owner-customers (2.1 million) and a target based on customer experience that it
will specify later in the autumn.

The financial targets and customer-related targets together form OP Financial
Group's strategic targets at Group level.

Press conference on 10 June starting at noon

Reijo Karhinen, President and Group Executive Chairman, will present the
strategy in a press conference on 10 June 2016 starting at noon. The venue for
the press conference is OP's Vallila premises, Gebhardinaukio 1, Helsinki.

OP Corporate Bank plc
OP Cooperative
Carina Geber-Teir
Executive Vice President, Corporate Communications

For more information, please contact:
OP Communications, tel. +358 (0)50 523 9904, viestinta@op.fi

Distribution
NASDAQ Helsinki
LSE London Stock Exchange
SIX Swiss Exchange
Major media
op.fi and pohjola.com

OP Financial Group is Finland's largest financial services group whose mission
is to create sustainable prosperity, security and wellbeing for its owner-
customers and in its operating region by means of its strong capital base and
efficiency. OP Financial Group consists of about 180 member cooperative banks,
its central cooperative OP Cooperative, and the latter's subsidiaries and
affiliates. The Group has a staff of 12,000 and 1.6 million owner-customers and
4.3 million customers. www.op.fi

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.

[HUG#2019473]