2015-10-28 08:00:00 CET
2015-10-28 08:00:40 CET
REGULATED INFORMATION
OP Mortgage Bank - Interim report (Q1 and Q3)
OP Mortgage Bank Interim Report for January-September 2015
OP MORTGAGE BANK
Stock exchange release 28 October 2015 at 9.00 EET
Interim Report
OP Mortgage Bank Interim Report for January-September 2015
OP Mortgage Bank (OP MB) is part of OP Financial Group. Together with Pohjola
Bank plc, it is in charge of OP's funding from the money and capital markets. OP
MB is responsible for OP's funding for the part of covered bond issuance.
Financial standing
The loan portfolio of OP Mortgage Bank (OP MB) decreased to EUR 9,195 million
(9,329)* during the reporting period. The company increased its loan portfolio
by buying mortgage-backed loans from OP Financial Group's member banks worth a
total of EUR 1,119 million. The reporting period saw an issue of a 1,000-million
euro fixed-rate covered bond with a maturity of seven years in international
capital markets. The bond 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 18.6 (14.4)
million.
OP MB 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. OP MB has entered into all derivative
contracts for hedging purposes, with Pohjola Bank plc being their counterparty.
* The comparatives for 2014 are given in brackets. For income statement and
other aggregated figures, January-September 2014 figures serve as comparatives.
For balance sheet and other cross-sectional figures, figures at the end of the
previous reporting period (31 December 2014) serve as a comparative.
Collateralisation of bonds issued to the public
The last covered bond issued under the Finnish Act on Mortgage Credit Banks
(1240/1999) before 1 August 2010 matured on 15 June 2015 and the programme was
consequently terminated and the free collaterals of Cover Asset Pool A were
transferred to Cover Asset Pool B.
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 8,839 million at the end of September.
Capital adequacy
OP MB has presented its capital base and capital adequacy in accordance with the
EU capital requirement regulation and directive (EU 575/2013). OP MB uses the
Internal Ratings Based Approach (IRBA) to measure its capital adequacy
requirement for credit risk. OP MB uses the Standardised Approach to measure its
capital adequacy for operational risk.
OP MB's Common Equity Tier 1 (CET1) ratio stood at 138.3% (133.0%) on 30
September. The CET1 capital requirement is 4.5% and the fixed additional capital
requirement is 2.5%, or a total of 7%.
OP MB's highest minimum capital requirement is determined by the Basel I floor.
OP MB's capital base exceeded the Basel I floor by EUR 46.2 million in
September. Information on the Basel I floor and capital surplus can be found in
note "Capital base and capital adequacy".
Joint liability of amalgamation
Under the Act on the Amalgamation of Deposit Banks (Laki talletuspankkien
yhteenliittymästä), the amalgamation of the cooperative banks comprises the
organisation's central institution (OP Cooperative), the central institution's
member credit institutions and the companies belonging to their consolidation
groups as well as credit and financial institutions and service companies in
which the above together hold more than half of the total votes. This
amalgamation is supervised on a consolidated basis. On 30 September 2015,
OP Cooperative's members comprised 181 cooperative banks as well as Pohjola Bank
plc, Helsinki OP Bank Ltd, OP Mortgage Bank plc, OP Card Company Plc and OP
Process Services Ltd. The central institution is responsible for issuing
instructions to its member credit institutions concerning their internal control
and risk management, their procedures for securing liquidity and capital
adequacy as well as for compliance with harmonised accounting policies in the
preparation of the amalgamation's consolidated financial statements. Companies
belonging to the amalgamation are legally responsible for each other's debts. OP
Financial Group's insurance companies do not fall within the scope of joint
liability. The amalgamation's central institution OP Cooperative is obliged, if
necessary, to assist member banks with a sum that prevents them from going into
liquidation. The central cooperative is liable for the debts of a member bank
which cannot be paid using the member bank's capital.
Each member bank is liable to pay a proportion of the amount which the central
cooperative has paid to either another member bank as part of support action or
to a creditor of such member bank in payment of an amount overdue which the
creditor has not received from the member bank. Furthermore, in the case of the
central cooperative's default, a member bank has unlimited refinancing liability
for the central cooperative's debts as referred to in the Co-operatives Act.
Each member bank's liability for the amount the central cooperative has paid to
the creditor on behalf of a member bank is divided between the member bank in
proportion to their last adopted balance sheets.
According to the Covered Bonds Act, section 25, the holder of a covered bond has
the right to receive a payment for the entire loan term of the bond from the
assets entered as collateral without other receivables without this being
prevented by OP Mortgage Bank's liquidation or bankruptcy.
Personnel
On 30 September, OP MB had five employees. The Bank purchases all the most
important support services from OP Cooperative and its Group members, reducing
the Bank's need for its own personnel.
Administration
The Board composition is as follows:
Chairman Harri Luhtala Chief Financial Officer, OP Cooperative,
Financial Group
Members Elina Ronkanen-Minogue Head of Asset and Liability Management and
Group Treasury, OP Cooperative, Financial
Group
Hanno Hirvinen Group Treasurer, Pohjola Bank plc
OP MB's Managing Director is Lauri Iloniemi and Hanno Hirvinen is his deputy.
Risk exposure
The most significant types of risks related to OP MB are credit risk, structural
funding risk, liquidity risk and interest rate risk. The key indicators in use
show that OP MB'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 Financial Group, managed by Pohjola Bank Plc, is exploitable by OP MB. OP
MB 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 makes it possible to issue new covered
bonds in 2015. 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 good.
Accounting policies
The Interim Report for 1 January-30 September 2015 has been prepared in
accordance with IAS 34 (Interim Financial Reporting) and with the accounting
policies presented in the financial statements 2014.
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.
OP MB's related parties include the parent company OP Cooperative and its
subsidiaries, the OP Financial 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.
Calculation of key ratios
Return on equity (ROE), % = 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-Q3/2015|Q1-Q3/2014|Q3/2015|Q3/2014| 2014|
+------------------------------+----------+----------+-------+-------+-------+
| | | | | | |
+------------------------------+----------+----------+-------+-------+-------+
|Interest income | 80,044| 89,464| 25,298| 31,248|117,550|
+------------------------------+----------+----------+-------+-------+-------+
|Interest expenses | 26,563| 49,377| 6,647| 16,187| 62,539|
+------------------------------+----------+----------+-------+-------+-------+
|Net interest income | 53,482| 40,086| 18,652| 15,061| 55,011|
+------------------------------+----------+----------+-------+-------+-------+
|Impairment loss on receivables| 245| -148| -48| 17| -150|
+------------------------------+----------+----------+-------+-------+-------+
|Net commissons and fees | -32,033| -22,404|-11,900|-10,114|-32,394|
+------------------------------+----------+----------+-------+-------+-------+
|Net trading income | 0| -1| 0| 0| -1|
+------------------------------+----------+----------+-------+-------+-------+
|Net investment income | 22| 1| 21| 0| 1|
+------------------------------+----------+----------+-------+-------+-------+
|Other operating income | 1| 1| 0| 0| 1|
+------------------------------+----------+----------+-------+-------+-------+
|Personnel costs | 288| 283| 84| 92| 385|
+------------------------------+----------+----------+-------+-------+-------+
|Other administrative expenses | 1,800| 1,736| 619| 600| 2,300|
+------------------------------+----------+----------+-------+-------+-------+
|Other operating expenses | 1,059| 1,100| 305| 312| 1,506|
+------------------------------+----------+----------+-------+-------+-------+
|Earnings before tax | 18,571| 14,416| 5,717| 3,960| 18,277|
+------------------------------+----------+----------+-------+-------+-------+
|Income tax expense | 3,709| 2,882| 1,139| 791| 3,657|
+------------------------------+----------+----------+-------+-------+-------+
|Profit for the period | 14,862| 11,534| 4,578| 3,169| 14,619|
+------------------------------+----------+----------+-------+-------+-------+
+---------------------------------+----------+----------+-------+-------+------+
|Statement of comprehensive |Q1-Q3/2015|Q1-Q3/2014|Q3/2015|Q3/2014| 2014|
|income, TEUR +----------+----------+-------+-------+------+
| | | | | | |
+---------------------------------+----------+----------+-------+-------+------+
|Profit for the period | 14,862| 11,534| 4,578| 3,169|14,619|
+---------------------------------+----------+----------+-------+-------+------+
| | | | | | |
+---------------------------------+----------+----------+-------+-------+------+
|Items that will not be | | | | | |
|reclassified to profit | | | | | |
|or loss | | | | | |
+---------------------------------+----------+----------+-------+-------+------+
|Gains/(losses) arising from | | | | | |
|remeasurement of defined benefit | | | | | |
|plans | | | | | -17|
+---------------------------------+----------+----------+-------+-------+------+
|Income tax on gains/(losses) on | | | | | |
|arising from remeasurement of | | | | | |
|defined benefit plans | | | | | 3|
+---------------------------------+----------+----------+-------+-------+------+
|Total comprehensive income | 14,862| 11,534| 4,578| 3,169|14,606|
+---------------------------------+----------+----------+-------+-------+------+
+-------------------------+----------+----------+-------+-------+----+
|Key ratios |Q1-Q3/2015|Q1-Q3/2014|Q3/2015|Q3/2014|2014|
+-------------------------+----------+----------+-------+-------+----+
|Return on equity (ROE), %| 5.5| 4.5| 5.0| 3.7| 4.2|
+-------------------------+----------+----------+-------+-------+----+
|Cost/income ratio, % | 15| 18| 15| 20| 19|
+-------------------------+----------+----------+-------+-------+----+
+--------------------------------------------------------+----------+----------+
|Cash flow statement, TEUR |Q1-Q3/2015|Q1-Q3/2014|
+--------------------------------------------------------+----------+----------+
|Cash and cash equivalents 1 Jan | 109,046| 110,550|
+--------------------------------------------------------+----------+----------+
|Total comprehensive income for the period | 14,862| 11,534|
+--------------------------------------------------------+----------+----------+
|Adjustments to profit for the period | 2,277| 2,207|
+--------------------------------------------------------+----------+----------+
|Increase (-) or decrease (+) in operating assets | 207,108|-1,661,091|
+--------------------------------------------------------+----------+----------+
|Increase (+) or decrease (-) in operating liabilities | -177,227| 133,220|
+--------------------------------------------------------+----------+----------+
|A. Cash flow from operating activities | 47,019|-1,514,130|
+--------------------------------------------------------+----------+----------+
|Shares and participations | | |
+--------------------------------------------------------+----------+----------+
|Purchase of intangible assets | -681| -675|
+--------------------------------------------------------+----------+----------+
|B. Cash flow from investing activities | -681| -675|
+--------------------------------------------------------+----------+----------+
|Increases in debt securities issued to the public | 20,465| 1,993,580|
+--------------------------------------------------------+----------+----------+
|Decreases in debt securities issued to the public | | |
+--------------------------------------------------------+----------+----------+
|Reserve for invested unrestricted equity | | 10,000|
+--------------------------------------------------------+----------+----------+
|Dividends paid | -4,996| |
+--------------------------------------------------------+----------+----------+
|C. Cash flow from financing activities | 15,470| 2,003,580|
+--------------------------------------------------------+----------+----------+
|Net increase/decrease in cash and cash equivalents | | |
|(A+B+C) | 61,808| 488,775|
+--------------------------------------------------------+----------+----------+
|Cash and cash equivalents | | |
|30 Sep | 170,854| 599,325|
+--------------------------------------------------------+----------+----------+
+------------------------------------------+-----------+-----------+-----------+
|Balance sheet, TEUR |30 Sep 2015|30 Sep 2014|31 Dec 2014|
+------------------------------------------+-----------+-----------+-----------+
| | | | |
+------------------------------------------+-----------+-----------+-----------+
|Receivables from credit institutions | 200,823| 599,325| 119,046|
+------------------------------------------+-----------+-----------+-----------+
|Derivative contracts | 200,981| 252,120| 261,346|
+------------------------------------------+-----------+-----------+-----------+
|Receivables from customers | 9,194,581| 9,521,936| 9,329,077|
+------------------------------------------+-----------+-----------+-----------+
|Investments assets | 40| 40| 40|
+------------------------------------------+-----------+-----------+-----------+
|Intangible assets | 2,784| 2,266| 2,610|
+------------------------------------------+-----------+-----------+-----------+
|Other assets | 58,208| 92,283| 90,047|
+------------------------------------------+-----------+-----------+-----------+
|Tax assets | 3| 61| 380|
+------------------------------------------+-----------+-----------+-----------+
|Total assets | 9,657,420| 10,468,031| 9,802,546|
+------------------------------------------+-----------+-----------+-----------+
|Liabilities to credit institutions | 1,425,000| 1,935,372| 1,505,000|
+------------------------------------------+-----------+-----------+-----------+
|Derivative contracts | 5,639| 9,295| 8,298|
+------------------------------------------+-----------+-----------+-----------+
|Debt securities issued to the public | 7,770,710| 8,043,326| 7,810,673|
+------------------------------------------+-----------+-----------+-----------+
|Provisions and other liabilities | 87,863| 125,890| 122,116|
+------------------------------------------+-----------+-----------+-----------+
|Tax liabilities | 1,883| 762| |
+------------------------------------------+-----------+-----------+-----------+
|Total liabilities | 9,291,095| 10,114,644| 9,446,086|
+------------------------------------------+-----------+-----------+-----------+
|Shareholders' equity | | | |
+------------------------------------------+-----------+-----------+-----------+
| Share capital | 60,000| 60,000| 60,000|
+------------------------------------------+-----------+-----------+-----------+
| Reserve for invested unrestricted equity| 245,000| 245,000| 245,000|
+------------------------------------------+-----------+-----------+-----------+
| Retained earnings | 61,325| 48,387| 51,459|
+------------------------------------------+-----------+-----------+-----------+
|Total equity | 366,325| 353,387| 356,459|
+------------------------------------------+-----------+-----------+-----------+
|Total liabilities and shareholders' equity| 9,657,420| 10,468,031| 9,802,546|
+------------------------------------------+-----------+-----------+-----------+
+------------------------------------------+-----------+-----------+-----------+
|Off-balance-sheet commitments, TEUR |30 Sep 2015|30 Sep 2014|31 Dec 2014|
+------------------------------------------+-----------+-----------+-----------+
|Irrevocable commitments given on behalf of| | | |
|customers | 1,583| 3,467| 3,252|
+------------------------------------------+-----------+-----------+-----------+
+--------------------+-------------+--------------+---------------+------------+
|Statement of changes|Share capital|Other reserves| Retained| |
|in equity, TEUR | | | earnings|Total equity|
+--------------------+-------------+--------------+---------------+------------+
| | | | | |
+--------------------+-------------+--------------+---------------+------------+
|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|
+--------------------+-------------+--------------+---------------+------------+
| | | | | |
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity| | | | |
|1 Jan 2015 | 60,000| 245,000| 51,459| 356,459|
+--------------------+-------------+--------------+---------------+------------+
|Reserve for invested| | | | |
|unrestricted equity | | | | |
+--------------------+-------------+--------------+---------------+------------+
|Profit for the | | | | |
|period | | | 14,862| 14,862|
+--------------------+-------------+--------------+---------------+------------+
|Total comprehensive | | | | |
|income | | | | |
+--------------------+-------------+--------------+---------------+------------+
|Other changes | | | -4,996| -4,996|
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity| | | | |
|30 Sep 2015 | 60,000| 245,000| 61,325| 366,325|
+--------------------+-------------+--------------+---------------+------------+
OP MB has presented its capital base and capital adequacy in accordance with the
EU capital requirement regulation and directive (EU 575/2013).
+------------------------------------------+-----------+-----------+-----------+
|Capital base and capital adequacy, TEUR |30 Sep 2015|31 Dec 2014|30 Sep 2014|
+------------------------------------------+-----------+-----------+-----------+
| | | | |
+------------------------------------------+-----------+-----------+-----------+
|Shareholders' equity | 366,325| 356,459| 353,387|
+------------------------------------------+-----------+-----------+-----------+
|Common Equity Tier 1 (CET1) before | | | |
|deductions | 366,325| 356,459| 353,387|
+------------------------------------------+-----------+-----------+-----------+
|Intangible assets | -2,784| -2,610| -2,266|
+------------------------------------------+-----------+-----------+-----------+
|Excess funding of pension liability, | | | |
|indirect holdings and deferred tax assets | | | |
|for losses | -54| -55| |
+------------------------------------------+-----------+-----------+-----------+
|Planned profit distribution / profit | | | |
|distribution as proposed by the Board | | -5,000| -2,250|
+------------------------------------------+-----------+-----------+-----------+
|Share of unaudited profits | -14,862| | |
+------------------------------------------+-----------+-----------+-----------+
|Unrealised gains under transitional | | | |
|provisions | | | |
+------------------------------------------+-----------+-----------+-----------+
|Impairment loss - shortfall of expected | | | |
|losses | -2,212| -1,898| -2,026|
+------------------------------------------+-----------+-----------+-----------+
|Common Equity Tier 1 (CET1) | 346,414| 346,897| 346,845|
+------------------------------------------+-----------+-----------+-----------+
|Instruments included in other Tier 1 | | | |
|capital | | | |
+------------------------------------------+-----------+-----------+-----------+
|Additional Tier 1 capital (AT1) | | | |
+------------------------------------------+-----------+-----------+-----------+
|Tier 1 capital (T1) | 346,414| 346,897| 346,845|
+------------------------------------------+-----------+-----------+-----------+
|Debenture loans | | | |
+------------------------------------------+-----------+-----------+-----------+
|Unrealised gains under transitional | | | |
|provisions | | | |
+------------------------------------------+-----------+-----------+-----------+
|Tier 2 Capital (T2) | | | |
+------------------------------------------+-----------+-----------+-----------+
|Total Capital base | 346,414| 346,897| 346,845|
+------------------------------------------+-----------+-----------+-----------+
| | | | |
+------------------------------------------+-----------+-----------+-----------+
|Risk-weighted assets | | | |
+------------------------------------------+-----------+-----------+-----------+
|Credit and counterparty risk | 222,611| 237,258| 253,331|
+------------------------------------------+-----------+-----------+-----------+
|Market risk | | | |
+------------------------------------------+-----------+-----------+-----------+
|Operational risk | 27,846| 23,527| 23,527|
+------------------------------------------+-----------+-----------+-----------+
|Total | 250,458| 260,785| 276,858|
+------------------------------------------+-----------+-----------+-----------+
| | | | |
+------------------------------------------+-----------+-----------+-----------+
|Key ratios, % | | | |
+------------------------------------------+-----------+-----------+-----------+
|CET1 capital ratio | 138.3| 133.0| 125.3|
+------------------------------------------+-----------+-----------+-----------+
|Tier 1 capital ratio | 138.3| 133.0| 125.3|
+------------------------------------------+-----------+-----------+-----------+
|Capital adequacy ratio | 138.3| 133.0| 125.3|
+------------------------------------------+-----------+-----------+-----------+
| | | | |
+------------------------------------------+-----------+-----------+-----------+
|Basel I floor | | | |
+------------------------------------------+-----------+-----------+-----------+
|Capital base | 346,414| 346,897| 346,845|
+------------------------------------------+-----------+-----------+-----------+
|Basel I capital requirements floor | 300,245| 304,995| 315,857|
+------------------------------------------+-----------+-----------+-----------+
|Capital buffer for Basel I floor | 46,169| 41,901| 30,989|
+------------------------------------------+-----------+-----------+-----------+
+-------------------+----------------------------------------------------------+
|Classification of | |
|financial assets | |
|and liabilities, | |
|TEUR | |
+-------------------+----------------+--------------+---------------+----------+
| | | Recognised at| | |
| | | fair value| | |
| |Loans and other|through profit| Available| |
|Financial assets | receivables| or loss| for sale| Total|
+-------------------+----------------+--------------+---------------+----------+
|Receivables from | | | | |
|credit institutions| 200,823| | | 200,823|
+-------------------+----------------+--------------+---------------+----------+
|Derivative | | | | |
|contracts | | 200,981| | 200,981|
+-------------------+----------------+--------------+---------------+----------+
|Receivables from | | | | |
|customers | 9,194,581| | | 9,194,581|
+-------------------+----------------+--------------+---------------+----------+
|Shares and | | | | |
|participations | | | 40| 40|
+-------------------+----------------+--------------+---------------+----------+
|Other receivables | 58,208| | | 58,208|
+-------------------+----------------+--------------+---------------+----------+
|Other assets | 2,787| | | 2,787|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 30 Sep | | | | |
|2015 | 9,456,400| 200,981| 40| 9,657,420|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 30 Sep | | | | |
|2014 | 10,215,871| 252,120| 40|10,468,031|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 31 Dec | | | | |
|2014 | 9,541,160| 261,346| 40| 9,802,546|
+-------------------+----------------+--------------+---------------+----------+
| |
+-------------------+----------------+--------------+---------------+----------+
| | | Recognised at| | |
| | | fair value| | |
|Financial | |through profit| Other| |
|liabilities | | or loss| liabilities| Total|
+-------------------+----------------+--------------+---------------+----------+
|Liabilities to | | | | |
|credit institutions| | | 1,425,000| 1,425,000|
+-------------------+----------------+--------------+---------------+----------+
|Derivative | | | | |
|contracts | | 5,639| | 5,639|
+-------------------+----------------+--------------+---------------+----------+
|Debt securities | | | | |
|issued to the | | | | |
|public | | | 7,770,710| 7,770,710|
+-------------------+----------------+--------------+---------------+----------+
|Subordinated | | | | |
|liabilities | | | | |
+-------------------+----------------+--------------+---------------+----------+
|Other liabilities | | | 89,746| 89,746|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 30 Sep | | | | |
|2015 | | 5,639| 9,285,456| 9,291,095|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 30 Sep | | | | |
|2014 | | 9,295| 10,105,349|10,114,644|
+-------------------+----------------+--------------+---------------+----------+
|Balance at 31 Dec | | | | |
|2014 | | 8,298| 9,437,789| 9,446,086|
+-------------------+----------------+--------------+---------------+----------+
|Valuation | | | | |
|difference of debt | | | | |
|securities issued | | | | |
|to the public | | | | |
|(difference between| | | | |
|fair value and | | | | |
|carrying amount) | | | | |
|30 Sep 2015 | | | 251,962| 251,962|
+-------------------+----------------+--------------+---------------+----------+
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.
+-------------------------------------+----------------------------------------+
|Derivative contracts 30 Sep 2015, |Nominal values/residual term to maturity|
|TEUR | |
+-------------------------------------+---------+---------+---------+----------+
| |Less than| 1-5|More than| |
| | 1 year| years| 5 years| Total|
+-------------------------------------+---------+---------+---------+----------+
|Interest rate derivatives | | | | |
+-------------------------------------+---------+---------+---------+----------+
|Hedging |2,402,198|7,179,977|7,238,168|16,820,343|
+-------------------------------------+---------+---------+---------+----------+
|Trading | | | | |
+-------------------------------------+---------+---------+---------+----------+
|Total |2,402,198|7,179,977|7,238,168|16,820,343|
+-------------------------------------+---------+---------+---------+----------+
+-------------------------+-------------------+----------+
| | Fair values | Credit |
+-------------------------+-------+ | |
| | Assets|Liabilities|equivalent|
+-------------------------+-------+-----------+----------+
|Interest rate derivatives| | | |
+-------------------------+-------+-----------+----------+
|Hedging |200,981| 5,639| 393,589|
+-------------------------+-------+-----------+----------+
|Trading | | | |
+-------------------------+-------+-----------+----------+
|Total |200,981| 5,639| 393,589|
+-------------------------+-------+-----------+----------+
+-------------------------------------+----------------------------------------+
|Derivative contracts 31 Dec 2014, |Nominal values/residual term to maturity|
|TEUR | |
+-------------------------------------+---------+---------+---------+----------+
| |Less than| 1-5|More than| |
| | 1 year| years| 5 years| Total|
+-------------------------------------+---------+---------+---------+----------+
|Interest rate derivatives | | | | |
+-------------------------------------+---------+---------+---------+----------+
|Hedging |4,496,752|9,141,000|4,396,000|18,033,752|
+-------------------------------------+---------+---------+---------+----------+
|Trading | | | | |
+-------------------------------------+---------+---------+---------+----------+
|Total |4,496,752|9,141,000|4,396,000|18,033,752|
+-------------------------------------+---------+---------+---------+----------+
+-------------------------+-------------------+----------+
| | Fair values | Credit |
+-------------------------+-------+-----------+ |
| | Assets|Liabilities|equivalent|
+-------------------------+-------+-----------+----------+
|Interest rate derivatives| | | |
+-------------------------+-------+-----------+----------+
|Hedging |261,346| 8,298| 449,799|
+-------------------------+-------+-----------+----------+
|Trading | | | |
+-------------------------+-------+-----------+----------+
|Total |261,346| 8,298| 449,799|
+-------------------------+-------+-----------+----------+
+-----------------------------+------------------------------------------------+
|Grouping of the balance sheet| |
|according to the valuation | |
|method, TEUR | |
+-----------------------------+------------------------------------------------+
|30 Sep 2015 |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 | 200,981| |200,981| |
+-----------------------------+-------------------+---------+-------+----------+
|Total | 200,981| |200,981| |
+-----------------------------+-------------------+---------+-------+----------+
|Liabilities recognised at | | | | |
|fair value | | | | |
+-----------------------------+-------------------+---------+-------+----------+
|Derivate contracts | 5,639| | 5,639| |
+-----------------------------+-------------------+---------+-------+----------+
|Total | 5,639| | 5,639| |
+-----------------------------+-------------------+---------+-------+----------+
|Financial liabilities not | | | | |
|recognised | | | | |
|at fair value | | | | |
+-----------------------------+-------------------+---------+-------+----------+
|Debt securities issued to the| | | | |
|public | 7,770,710|7,884,708|137,965| |
+-----------------------------+-------------------+---------+-------+----------+
|Total | 7,770,710|7,884,708|137,965| |
+-----------------------------+-------------------+---------+-------+----------+
| |
| |
| |
+-----------------------------+------------------------------------------------+
|31 Dec 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 | 261,346| |261,346| |
+-----------------------------+-------------------+---------+-------+----------+
|Total | 261,346| |261,346| |
+-----------------------------+-------------------+---------+-------+----------+
|Liabilities recognised at | | | | |
|fair value | | | | |
+-----------------------------+-------------------+---------+-------+----------+
|Derivate contracts | 8,298| | 8,298| |
+-----------------------------+-------------------+---------+-------+----------+
|Total | 8,298| | 8,298| |
+-----------------------------+-------------------+---------+-------+----------+
|Financial liabilities not | | | | |
|recognised | | | | |
|at fair value | | | | |
+-----------------------------+-------------------+---------+-------+----------+
|Debt securities issued to the| | | | |
|public | 7,810,673|7,995,455|142,607| |
+-----------------------------+-------------------+---------+-------+----------+
|Total | 7,810,673|7,995,455|142,607| |
+-----------------------------+-------------------+---------+-------+----------+
| |
| |
|OP MB does not hold any transfers between the levels of fair value |
|valuation. |
+------------------------------------------------------------------------------+
Helsinki, 28 October 2015
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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LSE London Stock Exchange
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Major media
op.fi
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