Pohjola Pankki Oyj - Company Announcement

Pohjola updates its financial targets

Pohjola Bank plc
17 March 2014, 4:30 pm
Stock exchange release

Pohjola updates its financial targets

Pohjola Bank plc's Board of Directors confirmed Pohjola Group's updated
financial targets on 17 March 2014.

The Core Tier 1 ratio of 11% (CT1) was replaced by the Common Equity Tier 1
ratio of 15% (CET1). Pohjola also revised its dividend policy in such a way that
the dividend payout ratio is at least 50%, provided that the CET1 is at least
15%. The dividend payout ratio will be 30% for the financial year 2014 and
onwards until Pohjola achieves the new CET1 target ratio.

The solvency ratio target of 70% set for Non-life Insurance was replaced by the
120% solvency ratio target under Solvency II.

Other financial targets remained unchanged.

The new capital adequacy target must be achieved on a front-loaded basis by the
end of 2016 and other financial targets by the end of 2015.

The higher capital adequacy target results from the tighter regulatory
framework, uncertainty related to the treatment of insurance holdings after
2014 and the decision made on 5 February 2014 by OP-Pohjola Group Central
Cooperative's Supervisory Board 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 capital, by the end of
2016. The aim is to maintain a solid capital base that creates competitive edge
and stability.

Strengthening the capital base and managing risk-weighted assets form the key to
the achievement of the new CET1 target. When it comes to strengthening the
capital base, an increase in earnings and dividends paid by Pohjola Insurance
Ltd to Pohjola Bank plc and the lower dividend payout ratio will play a key
role. Developing credit-risk models will play a key role in the management of
risk-weighted assets.

-------------------------------------------------------------------------------
 Pohjola Group's financial targets                      Target Reported in 2013
-------------------------------------------------------------------------------
 Group

 Return on equity, %                                        13             14.6

 CET1, %                                                    15            11.9*

 Banking

 Operating cost/income ratio, %                           < 35               36

 Non-life Insurance

 Operating combined ratio, %                              < 92             86.9

 Operating expense ratio, %                                 18             18.7

 Solvency ratio (Solvency II), %                           120            125**

 Asset Management

 Operating cost/income ratio, %                           < 45               53

 Total expenses

 2015-end total expenses at the same level as at the       569              580
 end of 2012
-------------------------------------------------------------------------------
* 1 January 2014
** Pro forma, Solvency II regulations are still partly unfinished

In addition, Pohjola still aims at an AA credit rating affirmed by at least two
credit rating agencies or at credit ratings that are at least at the level of
its main competitors.


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. +358 (0)10 252 2336
Niina Pullinen, Senior Vice President, Investor Relations, tel. +358 (0)10
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 wellbeing 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. The Group offers 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 amounted 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


[HUG#1769246]