Pohjola Pankki Oyj - Interim report (Q1 and Q3)

Pohjola Group performance for January-March 2015

Pohjola Bank plc
Stock Exchange Release 29 April 2015 at 8.00 am
Interim Report


Pohjola Group performance for January-March 2015

- Consolidated earnings before tax were EUR 160 million (159) and consolidated
earnings before tax at fair value amounted to EUR 259 million (163). The return
on equity was 15.3% (16.6).
- The Common Equity Tier 1 ratio (CET1) was 13.5% (12.4) as against the target
of 15%.
- Earnings reported by Banking in January-March were almost at the same level as
in the previous year.  The loan portfolio grew by 2% to EUR 15.2 billion
(14.9).  Earnings included EUR 14 million (4) in impairment loss on receivables.
- Within Non-life Insurance, insurance premium revenue increased by 5% (8).
Combined ratio improved to 88.8% (91.0). A reduction in the discount rate for
pension liabilities reduced earnings by EUR 17 million (-). Operating combined
ratio*) improved to 87.2% (89.3). Return on investments at fair value was 2.6%
(1.4).
- Within Wealth Management, earnings improved somewhat due to higher
performance-based management fees. Assets under management increased by 8% to
EUR 46.9 billion (43.3).
- Unchanged outlook: Consolidated earnings from continuing operations before tax
in 2015 are expected to be at the same level as in 2014. For more detailed
information on the outlook, see "Outlook towards the end of 2015" below.


Comparatives deriving from the income statement are based on figures reported
for the corresponding period a year ago. Unless otherwise specified, balance-
sheet and other cross-sectional figures on 31 December 2014 are used as
comparatives.
*) Year 2104 excluding changes in reserving bases and amortisation on intangible
assets arising from company acquisition.
**) Excluding the effect of transition provisions.
***) The expense target for 2012 has been adjusted to correspond to the change
in the accounting policies applied as of 1 January 2015 (see Note 1. Accounting
policies).

 Earnings before tax, € million    Q1/2015 Q1/2014 Change, %  2014
------------------------------------------------------------------
   Banking                              83      83         0   303

   Non-Life Insurance                   70      62        12   223

   Other Operations                      0       8              20

   Wealth Management                     7       6         7    38

 Group total                           160     159         0   584

 Change in fair value reserve           99       4              79

 Earnings before tax at fair value     259     163        59   663



 Equity per share, €                 10.55    9.25           10.38

 Average personnel                   2,483   2,593           2,563
------------------------------------------------------------------
The above figures describe Pohjola Group as a whole without the division into
continuing and discontinued operations.

 Financial targets                               Q1/2015 Q1/2014    Target 2014
-------------------------------------------------------------------------------
 Return on equity, %                                15.3    16.6        13 14.3

 Common Equity Tier 1 (CET1) ratio, %               13.5    12.0        15 12.4

 Operating cost/income ratio by Banking, %            27      33      < 35   33

 Operating combined ratio by Non-life Insurance,
 %                                                  87.2    89.3      < 92 84.7

 Operating expense ratio by Non-life Insurance,
 %                                                  17.9    18.5        18 18.4 Non-life Insurance solvency ratio (under
 Solvency II framework), %**)                        109     134       120  117

 Operating cost/income ratio by Wealth
 Management, %                                        50      51      < 45   42

 Total expenses in 2015 at the same level as at
 the end of 2012                                     127     135   514***)  531

 AA rating affirmed by at least two credit
 rating agencies or credit ratings at least at
 the main competitors' level                           2       2         2    2

 Dividend payout ratio at least 50%, provided
 that CET 1 ratio is at least 15%. Dividend
 payout ratio is 30% until CET1 ratio of 15% has
 been achieved.                                                  > 50 (30)   30
-------------------------------------------------------------------------------

Outlook towards the year end

The first signs of recovery can be seen in the European economy. However, only
modest growth is expected in 2015, despite the measures taken by the European
Central Bank to support economic growth. Similarly, economic growth in Finland
is expected to remain weak. The tension in international politics will continue
to cause uncertainty for the Finnish economy.

Weak economic growth also reduces growth expectations in the financial sector.
Record-low interest rates will erode banks' net interest income and weaken
insurance institutions' investment income. On the other hand, low interest rates
improve customers' loan repayment capacity, which has remained stable despite
the long period of slow growth. The importance of profitability and capital
adequacy is emphasised in an unstable operating environment and under tightening
regulation.

Despite the challenging operating environment, Pohjola Group's consolidated
earnings from continuing operations before tax in 2015 are expected to be at the
same level as in 2014. The most significant uncertainties affecting earnings in
2015 relate to the rate of business growth, impairment loss on receivables,
developments in bond and capital markets, the effect of large claims on claims
expenditure and to the discount rate applied to insurance liabilities.

All forward-looking statements in this report 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 Pohjola Group and its various functions,
and actual results may differ materially from those expressed in the forward-
looking statements.


Helsinki, 29 April 2015
Pohjola Bank plc
Board of Directors

This Interim Report is available at www.pohjola.com > Media > Releases.

Financial reporting in 2015

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

Schedule for Interim Reports in 2015:
Interim Report H1/2015:      5 August 2015
Interim Report Q1-3/2015:  28 October 2015


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


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

Pohjola is part of the leading Finnish customer-owned financial services group,
OP Financial Group. Pohjola provides its customers with banking, non-life
insurance and wealth management services. Pohjola is OP Financial Group's
central bank and is, together with OP Mortgage Bank, responsible for OP
Financial Group's funding operations on money and capital markets. As laid down
in the applicable law, Pohjola, its parent company OP Cooperative and the member
credit institutions are ultimately jointly and severally liable for each other's
debts and commitments. The joint liability in OP is prescribed by the Act on the
Amalgamation of Deposit Banks Act.

www.pohjola.fi


[HUG#1916237]

Attachments:

Pohjola Bank s Interim Report for 1 January-31 March 2015.pdf