2014-10-24 09:00:00 CEST
2014-10-24 09:01:41 CEST
REGULATED INFORMATION
OP Mortgage Bank - Interim report (Q1 and Q3)
OP Mortgage Bank Interim Report for January-September 2014
OP MORTGAGE BANK
Stock exchange release 24 October 2014, 10.00 am
Interim Report
OP Mortgage Bank Interim Report for January-September 2014
OP Mortgage Bank is part of OP-Pohjola Group. Its role in the Group is to raise,
together with Pohjola Bank plc, funding for OP-Pohjola Group from money and
capital markets. OP Mortgage Bank is responsible for the Group's funding for the
part of covered bond issuance.
Financial standing
The loan portfolio of OP Mortgage Bank (OPA) increased to EUR 9,522 million
(7,930)*. The company increased its loan portfolio by buying mortgage-backed
loans from OP-Pohjola Group's member banks worth a total of EUR 2,768 million.
Between January and September, OPA issued two covered bonds in the international
capital market. The one issued in March had a maturity of 7 years, and the one
in June 5 years. Both carry a fixed interest rate with a nominal value of EUR
1,000 million. Both bonds got the highest credit ratings from credit rating
agencies.
The company's financial standing remained stable throughout the reporting
period. Operating profit for January-September amounted to EUR 14.4 (9.8)
million.
OPA has hedged against the interest-rate risk associated with its housing loan
portfolio through interest-rate OPA has used interest rate swaps to hedge
against its interest rate risk. Interest rate swaps have been used to swap
housing loan interest and interest on issued bonds into the same basis rate. OPA
has entered into all derivative contracts for hedging purposes, with Pohjola
Bank plc being their counterparty.
*Comparatives for 2013 are given in brackets. For income-statement and other
aggregated figures, January-September 2013 figures serve as comparatives. For
balance-sheet and other cross-sectional figures, figures at the end of the
previous reporting period (31 December 2013) serve as comparatives
Collateralisation of bonds issued to the public
Mortgages collateralising covered bonds issued before 1 August 2010, under the
Finnish Act on Mortgage Credit Banks (1240/1999), are included in Cover Asset
Pool A. The balance of Pool A was EUR 2,700 million at the end of September.
Mortgages collateralising covered bonds issued after 1 August 2010, under the
Finnish Covered Bonds Act (688/2010), are included in Cover Asset Pool B. The
balance of Pool B was EUR 6,464 million at the end of September.
Capital adequacy
OPA has presented its September-end capital base and capital adequacy in
accordance with the EU capital requirement regulation and directive (EU
575/2013) (CRR/CRD IV) entered into force on 1 January 2014. Comparatives for
2013 are presented according to CRD III in force on 31 December 2013.
OPA's equity capital was increased in May with an additional investment of EUR
10 million by OP-Pohjola Group Central Cooperative.
OPA's Common Equity Tier 1 (CET1) ratio stood at 125.3% on 30 September.
Joint responsibility and joint security
Under the Act on Cooperative Banks and Other Cooperative Credit Institutions,
the amalgamation of the cooperative banks comprises the organisation's central
institution (OP-Pohjola Group Central Cooperative), the Central Cooperative's
member credit institutions and the companies belonging to their consolidation
groups. This amalgamation is monitored on a consolidated basis. The Central
Cooperative and its member banks are ultimately responsible for each other's
liabilities and commitments. The Central Cooperative's members at the end of the
report period comprised OP-Pohjola Group's 181 member banks as well as Pohjola
Bank plc, Helsinki OP Bank Plc, OP Mortgage Bank, OP Card Company Plc and OP
Process Services Ltd. OP-Pohjola Group's insurance companies do not fall within
the scope of joint responsibility.
The central institution is obligated to provide its member credit institutions
with instructions on their internal control and risk management, their
operations in securing liquidity and capital adequacy, and compliance with
uniform accounting policies in preparing the amalgamation's consolidated
financial statements.
The central institution and its member credit institutions are jointly
responsible for the liabilities of the central institution or a member credit
institution placed in liquidation or bankruptcy that cannot be paid from its
assets. The liability is divided between the central institution and the member
credit institutions in the ratios following the balance sheet total.
In spite of the joint responsibility and the joint security, pursuant to Section
25 of the Finnish Covered Bonds Act, the holder of a bond with mortgage
collateral shall, notwithstanding the liquidation or bankruptcy of a mortgage
credit bank, have the right to receive payment, before other claims, for the
entire loan period of the bond, in accordance with the contract terms, from the
funds entered as collateral for the bond.
Personnel
On 30 September, OPA had six employees. It purchases all key support services
from OP-Pohjola Group Central Cooperative and its Group companies, which reduces
the need for more staff.
Administration
The procedures for information and consultation of employees that were started
on 12 August 2014 in the Central Cooperative relating to the reorganisation of
the management system were brought to a conclusion on 23 September 2014. A total
of 113 management positions, excluding operations abroad, were included. As a
result 19 will be leaving either as a result of dismissal or other arrangements.
As part of the management system reorganisation, the composition of OPA's Board
of Directors was changed by turning it into an intra-group board of directors.
The practice is the same for all subsidiaries.
Board of Directors until 1 October 2014:
Chief Financial Officer, OP-Pohjola Group
Chairman Harri Luhtala Central Cooperative
Senior Vice President, OP-Pohjola Group
Vice Chairman Elina Ronkanen-Minogue Central Cooperative
Members Lars Björklöf Managing Director, Osuuspankki Raasepori
Sakari Haapakoski Bank Manager, Oulun Osuuspankki
Executive Vice President, Etelä-Hämeen
Mika Helin Osuuspankki
Hanno Hirvinen Group Treasurer, Pohjola Bank plc
Senior Vice President, OP-Pohjola Group
Jari Tirkkonen Central Cooperative
Board of Directors as of 1 October 2014:
Chairman Harri Luhtala Chief Financial Officer, OP-Pohjola
Group Central Cooperative
Members Elina Ronkanen-Minogue Senior Vice President, OP-Pohjola
Group Central Cooperative
Hanno Hirvinen Group Treasurer, Pohjola Bank plc
OPA's Managing Director is Lauri Iloniemi.
OP-Pohjola Group to renew brand: OP-Pohjola becomes simply OP
Financial services provider OP-Pohjola Group is continuing its revamp - this
time the focus is on its brand. The changes under way form part of the creation
of a new financial services group fully owned by its customers. The group will
soon go by the new name of OP Financial Group.
In the future, the banking, Non-life insurance and asset management businesses
will all come under the OP brand. There are no plans to dispose the Pohjola
brand, and a separate announcement will be made later on its future use.
In addition, Pohjola Bank Plc and Helsinki OP Bank will come together to form a
new bank for the Helsinki region: OP Bank Plc. Pohjola Insurance will become OP
Insurance. At this moment there will be no changes in the name of OP Mortgage
Bank.
The new name of the OP-Pohjola Group, OP Financial Group, will be adopted on 1
January 2015.
Risk exposure
The most significant types of risk related to OPA are credit risk, structural
funding risk, liquidity risk and interest-rate risk. The key indicators in use
shows that OPA'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-Pohjola Group, managed by Pohjola Bank Plc, is exploitable by OPA. OPA has
hedged against the interest-rate risk associated with its housing loan portfolio
through interest-rate swaps, i.e. base rate cash flows from housing loans to be
hedged are swapped to short-term Euribor cash flows. The interest rate risk may
be considered to be low.
Outlook
The existing issuance programme will make it possible to issue new covered bonds
end of the year 2014. It is expected that the Company's capital adequacy will
remain strong, risk exposure will be favourable and the overall quality of the
credit portfolio will remain strong.
Accounting Policies
The Interim Report for 1 January-30 September 2014 has been prepared in
accordance with IAS 34 (Interim Financial Reporting). In the preparation of the
Interim Report, OPA applied the same accounting policies as in the Financial
Statements for 2013.
The Interim Report is based on unaudited figures. Given that all of the figures
have been rounded off, the sum total of individual figures may deviate from the
presented sums.
The cash flow statement presents the cash flows for the period on a cash basis,
divided into cash flows from operating activities, investing activities and
financing activities. Cash flows from operating activities include the cash
flows generated from day-to-day operations. Cash flow from investing activities
includes payments related to PPE and intangible assets, investments held to
maturity and shares that are not considered as belonging to cash flow from
operating activities. Cash flow from financing activities includes cash flows
originating in the financing of operations either on equity or liability terms
from the money or capital market. Cash and cash equivalents include liquid
assets and receivables from credit institutions payable on demand. The
statement has been prepared using the indirect method.
OPA's related parties include OP-Pohjola Group Central Cooperative and its
subsidiaries, the OP Bank Group pension insurance organisation OP Bank Group
Pension Fund and OP Bank Group Pension Foundation, and the company's
administrative personnel. Standard loan terms and conditions apply to loans
granted to the related parties. Loans are tied to generally used reference
rates. Related-party transactions did not undergo any substantial changes during
the reporting period.
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 table. The carrying amounts
of other balance-sheet items substantially correspond to their fair values.
Calculation of key ratios
Return on equity, % = 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 | Q1-|Q1-Q3/2013|Q3/2014|Q3/2013| 2013|
| |Q3/2014| | | | |
+------------------------------+-------+----------+-------+-------+-------+
| | | | | | |
+------------------------------+-------+----------+-------+-------+-------+
|Interest income | 89,464| 60,804| 31,248| 20,146| 81,047|
+------------------------------+-------+----------+-------+-------+-------+
|Interest expenses | 49,377| 36,626| 16,187| 12,643| 49,855|
+------------------------------+-------+----------+-------+-------+-------+
|Net interest income | 40,086| 24,178| 15,061| 7,503| 31,192|
+------------------------------+-------+----------+-------+-------+-------+
|Impairment loss on receivables| -148| 48| 17| 27| 19|
+------------------------------+-------+----------+-------+-------+-------+
|Net commissions and fees |-22,404| -11,955|-10,114| -4,212|-16,070|
+------------------------------+-------+----------+-------+-------+-------+
|Net trading income | -1| 0| 0| 0| 0|
+------------------------------+-------+----------+-------+-------+-------+
|Net investment income | 1| 1| 0| 0| 1|
+------------------------------+-------+----------+-------+-------+-------+
|Other operating income | 1| 0| 0| 0| 0|
+------------------------------+-------+----------+-------+-------+-------+
|Personnel costs | 283| 325| 92| 93| 449|
+------------------------------+-------+----------+-------+-------+-------+
|Other administrative expenses | 1,736| 1,190| 600| 375| 1,570|
+------------------------------+-------+----------+-------+-------+-------+
|Other operating expenses | 1,100| 932| 312| 282| 1,302|
+------------------------------+-------+----------+-------+-------+-------+
|Earnings before tax | 14,416| 9,825| 3,960| 2,568| 11,821|
+------------------------------+-------+----------+-------+-------+-------+
|Income tax expense | 2,882| 2,405| 791| 628| 2,887|
+------------------------------+-------+----------+-------+-------+-------+
|Profit for the period | 11,534| 7,420| 3,169| 1,940| 8,934|
+------------------------------+-------+----------+-------+-------+-------+
+----------------------------------+----------+----------+-------+-------+-----+
|Statement of comprehensive income |Q1-Q3/2014|Q1-Q3/2013|Q3/2014|Q3/2013| 2013|
+----------------------------------+----------+----------+-------+-------+-----+
| TEUR| | | | | |
+----------------------------------+----------+----------+-------+-------+-----+
|Profit for the period | 11,534| 7,420| 3,169| 1,940|8,934|
+----------------------------------+----------+----------+-------+-------+-----+
| | | | | | |
+----------------------------------+----------+----------+-------+-------+-----+
|Items that will not be | | | | | |
|reclassified to profit or loss | 0| 0| 0| 0| 0|
+----------------------------------+----------+----------+-------+-------+-----+
|Gains/(losses) arising from | | | | | |
|remeasurement of defined benefit | | | | | |
|plans | 0| 0| 0| 0| -38|
+----------------------------------+----------+----------+-------+-------+-----+
|Income tax on gains/(losses) on | | | | | |
|arising from remeasurement of | | | | | |
|defined benefit plans | 0| 0| 0| 0| -6|
+----------------------------------+----------+----------+-------+-------+-----+
|Total comprehensive income | 11,534| 7,420| 3,169| 1,940|8,889|
+----------------------------------+----------+----------+-------+-------+-----+
+-------------------------+-------+----------+-------+-------+----+
|Key ratios | Q1-|Q1-Q3/2013|Q3/2014|Q3/2013|2013|
| |Q3/2014| | | | |
+-------------------------+-------+----------+-------+-------+----+
|Return on equity (ROE), %| 4.5| 3.0| 3.7| 2.4| 2.7|
+-------------------------+-------+----------+-------+-------+----+
|Cost/income ratio, % | 18| 20| 20| 23| 22|
+-------------------------+-------+----------+-------+-------+----+
+--------------------------------------------------+-------------+-------------+
|Cash flow statement TEUR | Q1-Q3/2014| Q1-Q3/2013|
+--------------------------------------------------+-------------+-------------+
|Cash and cash equivalents 1 Jan. | 110,550| 53,300|
+--------------------------------------------------+-------------+-------------+
|Total comprehensive income for the period | 11,534| 7,420|
+--------------------------------------------------+-------------+-------------+
|Adjustments to profit for the period | 2,207| 2,350|
+--------------------------------------------------+-------------+-------------+
|Increase (-) or decrease (+) in operating assets | -1,661,091| 581,207|
+--------------------------------------------------+-------------+-------------+
|Increase (+) or decrease (-) in operating | | |
|liabilities | 133,220| -586,348|
+--------------------------------------------------+-------------+-------------+
|A. Cash flow from operating activities | -1,514,130| 4,629|
+--------------------------------------------------+-------------+-------------+
|Purchase of intangible assets | -675| -647|
+--------------------------------------------------+-------------+-------------+
|B. Cash flow from investing activities | -675| -647|
+--------------------------------------------------+-------------+-------------+
|Increases in debt securities issued to the public | 1,993,580| 4,690|
+--------------------------------------------------+-------------+-------------+
|Decreases in debt securities issued to the public | 0| 0|
+--------------------------------------------------+-------------+-------------+
|Reserve for invested unrestricted equity | 10,000| 0|
+--------------------------------------------------+-------------+-------------+
|Dividends paid | 0| -2,001|
+--------------------------------------------------+-------------+-------------+
|C. Cash flow from financing activities | 2,003,580| 2,689|
+--------------------------------------------------+-------------+-------------+
|Net increase/decrease in cash and cash equivalents| | |
|(A+B+C) | 488,775| 6,671|
+--------------------------------------------------+-------------+-------------+
|Cash and cash equivalents 30 September | 599,325| 59,971|
+------------------------------------+------------++-----------+-+-----------+-+
|Balance sheet TEUR |30 Sep 2014|30 Sep 2013| 31 Dec 2013|
+------------------------------------+------------+------------+-------------+
| | | | |
+------------------------------------+------------+------------+-------------+
|Receivables from credit institutions| 599,325| 59,971| 110,550|
+------------------------------------+------------+------------+-------------+
|Derivative contracts | 252,120| 211,255| 198,086|
+------------------------------------+------------+------------+-------------+
|Receivables from customers | 9,521,936| 8,202,201| 7,929,630|
+------------------------------------+------------+------------+-------------+
|Investments assets | 40| 17| 17|
+------------------------------------+------------+------------+-------------+
|Intangible assets | 2,266| 1,579| 1,668|
+------------------------------------+------------+------------+-------------+
|Other assets | 92,283| 79,324| 76,362|
+------------------------------------+------------+------------+-------------+
|Tax assets | 61| 26| 630|
+------------------------------------+------------+------------+-------------+
|Total assets | 10,468,031| 8,554,373| 8,316,944|
+------------------------------------+------------+------------+-------------+
|Liabilities to credit institutions | 1,935,372| 2,107,000| 1,885,000|
+------------------------------------+------------+------------+-------------+
|Derivative contracts | 9,295| 8,522| 8,767|
+------------------------------------+------------+------------+-------------+
|Debt securities issued to the public| 8,043,326| 6,003,280| 5,991,695|
+------------------------------------+------------+------------+-------------+
|Provisions and other liabilities | 125,890| 104,538| 99,628|
+------------------------------------+------------+------------+-------------+
|Tax liabilities | 762| 649| 0|
+------------------------------------+------------+------------+-------------+
|Total liabilities | 10,114,644| 8,223,990| 7,985,090|
+------------------------------------+------------+------------+-------------+
|Shareholders' equity | | | |
+------------------------------------+------------+------------+-------------+
| Share capital | 60,000| 60,000| 60,000|
+------------------------------------+------------+------------+-------------+
| Reserve for invested unrestricted | | | |
|. equity | 245,000| 235,000| 235,000|
+------------------------------------+------------+------------+-------------+
| Retained earnings | 48,387| 35,383| 36,853|
+------------------------------------+------------+------------+-------------+
|Total equity | 353,387| 330,383| 331,853|
+------------------------------------+------------+------------+-------------+
|Total liabilities and shareholders' | | | |
|equity | 10,468,031| 8,554,373| 8,316,944|
+------------------------------------+------------+------------+-------------+
+---------------------------------------+------------+------------+------------+
|Off-balance-sheet commitments TEUR |30 Sep 2014|30 Sep 2013|31 Dec 2013|
+---------------------------------------+------------+------------+------------+
|Irrevocable commitments given on behalf| | | |
|of customers | 3,467| 6,437| 4,568|
+---------------------------------------+------------+------------+------------+
+--------------------+-------------+--------------+---------------+------------+
|Statement of changes|Share capital|Other reserves| Retained|Total equity|
|in equity TEUR | | | earnings| |
+--------------------+-------------+--------------+---------------+------------+
| | | | | |
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity| | | | |
|1 Jan 2013 | 60,000| 235,000| 29,964| 324,964|
+--------------------+-------------+--------------+---------------+------------+
|Reserve for invested| | | | |
|unrestricted equity| -| -| -| 0|
+--------------------+-------------+--------------+---------------+------------+
|Profit for the | | | | |
|period | -| -| 7,420| 7,420|
+--------------------+-------------+--------------+---------------+------------+
|Total comprehensive | | | | |
|income | -| -| -| -|
+--------------------+-------------+--------------+---------------+------------+
|Other changes | -| -| -2,001| -2,001|
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity| | | | |
|30 Sep 2013 | 60,000| 235,000| 35,383| 330,383|
+--------------------+-------------+--------------+---------------+------------+
| | | | | |
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity| | | | |
|1 Jan 2014 | 60,000| 235,000| 36,853| 331,853|
+--------------------+-------------+--------------+---------------+------------+
|Reserve for invested| | | | |
|unrestricted equity | -| 10,000| -| 10,000|
+--------------------+-------------+--------------+---------------+------------+
|Profit for the | | | | |
|period | -| -| 11,534| 11,534|
+--------------------+-------------+--------------+---------------+------------+
|Total comprehensive | | | | |
|income | -| -| -| -|
+--------------------+-------------+--------------+---------------+------------+
|Other changes | -| -| -| -|
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity| | | | |
|30 Sep 2014 | 60,000| 245,000| 48,387| 353,387|
+--------------------+-------------+--------------+---------------+------------+
OPA has presented its capital base and capital adequacy of 30 September
2014 in accordance with the EU capital requirement regulation and
directive (EU 575/2013) (CRR/CRD IV) entered into force on 1 January 2014.
Comparatives for 2013 are presented according to CRD III in force on 31
December 2013.
+-- +------------+----------+------------+
|Capital base and capital | | | |
|adequacy | CRD IV | CRD IV | CRD III |
| | | | |
| TEUR|30 Sep 2014|1 Jan 2014|31 Dec 2013|
+--------------------------+------------+----------+------------+
| | | | |
+--------------------------+------------+----------+------------+
|Shareholders' equity | 353,387| 331,853| 331,853|
+--------------------------+------------+----------+------------+
|Common Equity Tier 1 | | | |
|(CET1) before deductions | 353,387| 331,853| 331,853|
+--------------------------+------------+----------+------------+
|Intangible assets | -2,266| -1,668| -1,668|
+--------------------------+------------+----------+------------+
|Excess funding of pension | | | |
|liability, indirect | | | |
|holdings and deferred tax | | | |
|assets for losses | 0| 0| 0|
+--------------------------+------------+----------+------------+
|Planned profit | | | |
|distribution / profit | | | |
|distribution as proposed | | | |
|by the Board | -2,250| 0| 0|
+--------------------------+------------+----------+------------+
|Unrealised gains under | | | |
|transitional provisions | 0| 0| 0|
+--------------------------+------------+----------+------------+
|Impairment loss - | | | |
|shortfall of expected | | | |
|losses | -2,026| -2,155| -1,077|
+--------------------------+------------+----------+------------+
|Shortfall of Additional | | | |
|Tier 1 (AT1) | 0| 0| -1,077|
+--------------------------+------------+----------+------------+
|Common Equity Tier 1 | | | |
|(CET1)*) | 346,845| 328,031| 328,031|
+--------------------------+------------+----------+------------+
|Instruments included in | | | |
|other Tier 1 capital | 0| 0| 0|
+--------------------------+------------+----------+------------+
|Shortfall of Tier 2 | | | |
|capital | 0| 0| -1,077|
+--------------------------+------------+----------+------------+
|Reclassification into CET1| 0| 0| 1,077|
+--------------------------+------------+----------+------------+
|Additional Tier 1 capital | | | |
|(AT1) | 0| 0| 0|
+--------------------------+------------+----------+------------+
|Tier 1 capital (T1) | 346,845| 328,031| 328,031|
+--------------------------+------------+----------+------------+
|Debenture loans | 0| 0| 0|
+--------------------------+------------+----------+------------+
|Unrealised gains under | | | |
|transitional provisions | 0| 0| 0|
+--------------------------+------------+----------+------------+
|Impairment loss - | | | |
|shortfall of expected | | | |
|losses | 0| 0| -1,077|
+--------------------------+------------+----------+------------+
|Reclassification into AT1 | 0| 0| 1,077|
+--------------------------+------------+----------+------------+
|Tier 2 Capital (T2) | 0| 0| 0|
+--------------------------+------------+----------+------------+
|Total Capital base | 346,845| 328,031| 328,031|
+--------------------------+------------+----------+------------+
| | | | |
+--------------------------+------------+----------+------------+
|Risk-weighted assets | | | |
+--------------------------+------------+----------+------------+
|Credit and counterparty | | | |
|risk | 253,331| 263,887| 263,881|
+--------------------------+------------+----------+------------+
|Market risk | 0| 0| 0|
+--------------------------+------------+----------+------------+
|Operational risk | 23,527| 19,941| 19,941|
+--------------------------+------------+----------+------------+
|Basel I floor | 0| 0| 2,908,024|
+--------------------------+------------+----------+------------+
|Total | 276,858| 283,827| 3,191,845|
+--------------------------+------------+----------+------------+
| | | | |
+--------------------------+------------+----------+------------+
|Key ratios | 346,845| 328,031| 328,031|
+--------------------------+------------+----------+------------+
|CET1 capital ratio | 125.3| 115.6| 10.3|
+--------------------------+------------+----------+------------+
|Tier 1 capital ratio | 125.3| 115.6| 10.3|
+--------------------------+------------+----------+------------+
|Capital adequacy ratio | 125.3| 115.6| 10.3|
+--------------------------+------------+----------+------------+
| | | | |
+--------------------------+------------+----------+------------+
|Basel I floor | | | |
+--------------------------+------------+----------+------------+
|Capital base | 346,845| 328,031| |
+--------------------------+------------+----------+------------+
|Basel I capital | | | |
|requirements floor | 315,857| 255,348| |
+--------------------------+------------+----------+------------+
|Capital buffer for Basel I| | | |
|floor | 30,989| 72,683| |
+--------------------------+------------+----------+------------+
*) The row of CET1 based on CRD III figures shows Core Tier as defined by
the EBA
Under CRR, the Basel I floor does not apply to RWAs and
becomes a minimum capital requirement.
The table above shows capital resources that
exceed the Basel I floor.
Shortfall of difference between impairment losses and expected
losses totals EUR 2 million.
+------------------------------------------------------------------------------+
|Classification of financial assets |
|and liabilities TEUR |
+-------------------+----------------+--------------+---------------+----------+
| | | Recognised at| | |
| | | fair value| | |
| |Loans and other|through profit| Available for| |
|Financial assets | receivables| or loss| sale| Total|
+-------------------+----------------+--------------+---------------+----------+
|Receivables from | | | | |
|credit institutions| 599,325| -| -| 599,325|
+-------------------+----------------+--------------+---------------+----------+
|Derivative | | | | |
|contracts | -| 252,120| -| 252,120|
+-------------------+----------------+--------------+---------------+----------+
|Receivables from | | | | |
|customers | 9,521,936| -| -| 9,521,936|
+-------------------+----------------+--------------+---------------+----------+
|Shares and | | | | |
|participations | -| -| 40| 40|
+-------------------+----------------+--------------+---------------+----------+
|Other receivables | 92,283| -| -| 92,283|
+-------------------+----------------+--------------+---------------+----------+
|Other assets | 2,327| -| -| 2,327|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 30 Sep | | | | |
|2014 | 10,215,871| 252,120| 40|10,468,031|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 30 Sep | | | | |
|2013 | 8,343,101| 211,255| 17| 8,554,373|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 31 | | | | |
|December 2013 | 8,118,840| 198,086| 17| 8,316,944|
+-------------------+----------------+--------------+---------------+----------+
| |
+-------------------+----------------+--------------+---------------+----------+
| | | Recognised at| | |
| | | fair value| | |
|Financial | |through profit| Other| |
|liabilities | | or loss| liabilities| Total|
+-------------------+----------------+--------------+---------------+----------+
|Liabilities to | | | | |
|credit institutions| -| -| 1,935,372| 1,935,372|
+-------------------+----------------+--------------+---------------+----------+
|Derivative | | | | |
|contracts | -| 9,295| -| 9,295|
+-------------------+----------------+--------------+---------------+----------+
|Debt securities | | | | |
|issued to the | | | | |
|public | -| -| 8,043,326| 8,043,326|
+-------------------+----------------+--------------+---------------+----------+
|Subordinated | | | | |
|liabilities | -| -| -| -|
+-------------------+----------------+--------------+---------------+----------+
|Other liabilities | -| -| 126,651| 126,651|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 30 Sep | | | | |
|2014 | -| 9,295| 10,105,349|10,114,644|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 30 Sep | | | | |
|2013 | -| 8,522| 8,215,468| 8,223,990|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 31 | | | | |
|December 2013 | -| 8,767| 7,976,323| 7,985,090|
+-------------------+----------------+--------------+---------------+----------+
|Valuation | | | | |
|difference of debt | | | | |
|securities issued | | | | |
|to the public | | | | |
|(difference between| | | | |
|fair value and | | | | |
|carrying amount) | | | | |
|30 Sept. 2014 | | | 327,911| 327,911|
+-------------------+----------------+--------------+---------------+----------+
+--------------------+---------------------------------------------------------+
|Derivative contracts|Nominal values/residual term to maturity |
|30 Sep 2014 TEUR | |
+--------------------+----------------+-----------+-----------------+----------+
| |Less than 1 year| 1-5 years|More than 5 years| Total|
+--------------------+----------------+-----------+-----------------+----------+
|Interest rate | | | | |
|derivatives | | | | |
+--------------------+----------------+-----------+-----------------+----------+
|Hedging | 7,466,830| 9,134,000| 2,396,000|18,996,830|
+--------------------+----------------+-----------+-----------------+----------+
|Trading | -| -| -| -|
+--------------------+----------------+-----------+-----------------+----------+
|Total | 7,466,830| 9,134,000| 2,396,000|18,996,830|
+--------------------+----------------+-----------+-----------------+----------+
+--------------------+----------------------------+-----------------+
| | Fair values | Credit |
+--------------------+----------------+-----------+ |
| | Assets|Liabilities| equivalent |
+--------------------+----------------+-----------+-----------------+
|Interest rate | | | |
|derivatives | | | |
+--------------------+----------------+-----------+-----------------+
|Hedging | 252,120| 9,295| 409,244|
+--------------------+----------------+-----------+-----------------+
|Trading | -| -| -|
+--------------------+----------------+-----------+-----------------+
|Total | 252,120| 9,295| 409,244|
+--------------------+----------------+-----------+-----------------+
+--------------------+---------------------------------------------------------+
|Derivative contracts|Nominal values/residual term to maturity |
|31 Dec 2013 TEUR | |
+--------------------+----------------+-----------+-----------------+----------+
| |Less than 1 year| 1-5 years|More than 5 years| Total|
+--------------------+----------------+-----------+-----------------+----------+
|Interest rate | | | | |
|derivatives | | | | |
+--------------------+----------------+-----------+-----------------+----------+
|Hedging | 2,936,007| 11,644,865| 396,000|14,976,872|
+--------------------+----------------+-----------+-----------------+----------+
|Trading | -| -| -| -|
+--------------------+----------------+-----------+-----------------+----------+
|Total | 2,936,007| 11,644,865| 396,000|14,976,872|
+--------------------+----------------+-----------+-----------------+----------+
+--------------------+----------------------------+-----------------+
| | Fair values | Credit |
+--------------------+----------------+-----------+-----------------+
| | Assets|Liabilities| equivalent |
+--------------------+----------------+-----------+-----------------+
|Interest rate | | | |
|derivatives | | | |
+--------------------+----------------+-----------+-----------------+
|Hedging | 198,086| 8,767| 325,316|
+--------------------+----------------+-----------+-----------------+
|Trading | -| -| -|
+--------------------+----------------+-----------+-----------------+
|Total | 198,086| 8,767| 325,316|
+--------------------+----------------+-----------+-----------------+
+------------------------------------------------------------------------------+
|Grouping of the balance sheet according to the valuation method, |
|TEUR |
| |
| |
+-----------------------------+------------------------------------------------+
|30 Sep 2014 |Valuation of fair value at the end of the period|
+-----------------------------+-------------------+---------+-------+----------+
| |Balance sheet value| Level 1|Level 2| Level 3|
+-----------------------------+-------------------+---------+-------+----------+
|Assets recognised at fair | | | | |
|value | | | | |
+-----------------------------+-------------------+---------+-------+----------+
|Derivate contracts | 252,120| -|252,120| -|
+-----------------------------+-------------------+---------+-------+----------+
|Total | 252,120| -|252,120| -|
+-----------------------------+-------------------+---------+-------+----------+
|Liabilities recognised at | | | | |
|fair value | | | | |
+-----------------------------+-------------------+---------+-------+----------+
|Derivate contracts | 9,295| -| 9,295| -|
+-----------------------------+-------------------+---------+-------+----------+
|Total | 9,295| -| 9,295| -|
+-----------------------------+-------------------+---------+-------+----------+
|Financial liabilities not recognised at fair | | | |
|value | | | |
+-----------------------------+-------------------+---------+-------+----------+
|Debt securities issued to the| | | | |
|public | 8,043,326|8,237,901|133,336| -|
+-----------------------------+-------------------+---------+-------+----------+
|Total | 8,043,326|8,237,901|133,336| -|
| +-------------------+---------+-------+----------+
+------------------------------+-----------------------------------------------+
| |Valuation of fair value at the end of the |
|31 Dec 2013 |period |
+------------------------------+----------------+---------+-------+------------+
| | Balance sheet| | | |
| | value| Level 1|Level 2| Level 3|
+------------------------------+----------------+---------+-------+------------+
|Assets recognised at fair | | | | |
|value | | | | |
+------------------------------+----------------+---------+-------+------------+
|Derivate contracts | 198,086| -|198,086| -|
+------------------------------+----------------+---------+-------+------------+
|Total | 198,086| -|198,086| -|
+------------------------------+----------------+---------+-------+------------+
|Liabilities recognised at fair| | | | |
|value | | | | |
+------------------------------+----------------+---------+-------+------------+
|Derivate contracts | 8,767| -| 8,767| -|
+------------------------------+----------------+---------+-------+------------+
|Total | 8,767| -| 8,767| -|
+------------------------------+----------------+---------+-------+------------+
|Financial liabilities not | |
|recognised at fair value | |
+------------------------------+----------------+---------+-------+------------+
|Debt securities issued to the | | | | |
|public | 5,991,695|6,139,724|107,822| -|
+------------------------------+----------------+---------+-------+------------+
|Total | 5,991,695|6,139,724|107,822| -|
+------------------------------+----------------+---------+-------+------------+
| |
| |
|OPA does not hold any transfers between the levels of fair value |
|valuation. |
+------------------------------------------------------------------------------+
Helsinki, 24 October
2014
OP Mortgage Bank
Board of Directors
For more information, please contact Managing Director Lauri Iloniemi,
tel. +358 (0)10 252 3541
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Exchange
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