OP Yrityspankki Oyj - Interim report (Q1 and Q3)

OP Corporate Bank plc's Interim Report for 1 January-31 March 2016

OP Corporate Bank plc
Stock Exchange Release 27 April 2016 at 9.00 EEST
Interim Report for January 1-31 March 2016



OP Corporate Bank plc's Interim Report for 1 January-31 March 2016

- Pohjola Bank plc's business name was changed to OP Corporate Bank plc on 4
April 2016.
- Consolidated earnings before tax were EUR 111 million (153) and consolidated
earnings before tax at fair value EUR 116 million (252). The return on equity
was 9.7% (15.3).
- Earnings reported by Banking decreased to EUR 51 million (83) due to lower net
trading income. The loan portfolio grew in the reporting period by 1% to EUR
16.5 billion (16.4). Earnings included EUR 8 million (14) in impairment loss on
receivables.
- Non-life Insurance earnings decreased to EUR 59 million (70) due to lower
return on investments. Return on investments at fair value was 1.7 % (2.6).
Operating combined ratio was 88.6% (87.2).
- Other Operations earnings were at the previous year's level, EUR 1 million
(0). Liquidity and access to funding remained good.
- The Common Equity Tier 1 (CET1) ratio was 14.2% (14.1) as against the target
of 15%.
- Unchanged outlook: OP Corporate Bank Group's consolidated earnings before tax
are expected to be lower than earnings from continuing operations in 2015.
                                   Q1/2016 Q1/2015 Change, % Q1-4/2015
----------------------------------------------------------------------
 Earnings before tax, EUR million
----------------------------------------------------------------------
   Banking                              51      83       -39       334
----------------------------------------------------------------------
   Non-life Insurance                   59      70       -16       267
----------------------------------------------------------------------
   Other Operations                      1       0                  23
----------------------------------------------------------------------
 Group total                           111     153       -27       625
----------------------------------------------------------------------
 Change in fair value reserve            5      99                -141
----------------------------------------------------------------------
 Earnings before tax at fair value     116     252       -54       483
----------------------------------------------------------------------

----------------------------------------------------------------------
 Equity per share, EUR               11.11   10.55               11.38
----------------------------------------------------------------------
 Average personnel                   2,301   2,483               2,446


Comparatives deriving from the income statement are based on figures reported
for continuing operations for the corresponding period a year ago. Unless
otherwise specified, balance-sheet and other cross-sectional figures on 31
December 2015 are used as comparatives.

 Financial targets                               Q1/2016 Q1/2015 2015    Target
-------------------------------------------------------------------------------
 Return on equity, %                                 9.7    15.3 14.8        13
-------------------------------------------------------------------------------
 Common Equity Tier 1 (CET1) ratio, %*              14.2    13.5 14.1        15
-------------------------------------------------------------------------------
 Operating cost/income ratio by Banking, %            38      27   27      < 35
-------------------------------------------------------------------------------
 Operating combined ratio by Non-life Insurance,
 %                                                  88.6    87.2 87.3      < 92
-------------------------------------------------------------------------------
 Operating expense ratio by Non-life Insurance,
 %                                                  18.1    17.9 17.7        18
-------------------------------------------------------------------------------
 Non-life Insurance solvency ratio (under
 Solvency II), %**                                   160          158
-------------------------------------------------------------------------------
 Non-life Insurance solvency ratio (under
 Solvency II), %***                                  137     109  139       120
-------------------------------------------------------------------------------
 AA rating affirmed by 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.                                                    30 > 50 (30)
-------------------------------------------------------------------------------

* Operating ratios exclude changes in reserving bases and amortisation on
intangible assets arising from the corporate acquisition.
** Including the effect of transitional provisions.
*** Excluding the effect of transitional provisions.


Outlook towards the year end

World and euro-area economic growth is not expected to significantly speed up
Finnish economic growth during the current year. The anticipated fragile Finnish
economic growth is largely based on a minor recovery in the domestic market.
Despite growth, the overall outlook of the Finnish economy and the Finnish
financial-sector operating environment is weak. The probability of a
deceleration in economic growth is greater than its acceleration. A historically
low interest rate environment, a possible British exit from the EU and other
threats challenging the EU's structures and policies as well as the slow
progress of structural reforms in the Finnish economy create uncertainty for
Finnish economic development.

The continued reduction in market interest rates that have in part turned
negative places a further burden on the net interest income of banks and erodes
the investment income of insurance institutions. Then again, low interest rates
support customers' loan repayment capacity, which has kept impairment loss low
despite the prolonged period of slow economic growth. Weak economic growth,
industry transformation resulting from the digitising financial sector and
change in customer behaviour as well as tightening regulation will highlight the
role of operational efficiency, profitability and a strong capital base.

OP Corporate Bank Group's consolidated earnings before tax are expected to
remain lower than earnings from continuing operations before tax in 2015. The
most significant uncertainties affecting earnings 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 OP Corporate Bank Group and its various
functions, and actual results may differ materially from those expressed in the
forward-looking statements.

Helsinki, 27 April 2016

OP Corporate Bank plc
Board of Directors

Financial reporting in 2016
OP Corporate Bank plc publishes the following financial information pursuant to
the regular disclosure obligation of a securities issuer:

Schedule for Interim Reports in 2016:

Interim Report H1/2016                           3 August 2016
Interim Report Q1-3/2016                       2 November 2016

DISTRIBUTION
NASDAQ 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


OP Corporate Bank is part of the leading Finnish customer-owned financial
services group, OP Financial Group. 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#2007103]

Attachments:

OP Corporate Bank plc s Interim Report Q1 2016.pdf