OP Yrityspankki Oyj - Interim report (Q1 and Q3)

OP Corporate Bank plc's Interim Report for 1 January-31 March 2017

OP Corporate Bank plc
Interim Report for 1 January-31 March 2017
27 April 2017 at 9.00 am EEST

OP Corporate Bank plc's Interim Report for 1 January-31 March 2017

  * Consolidated earnings before tax were EUR 133 million (111). The return on
    equity was 11.1% (9.7).
  * Banking earnings before tax increased to EUR 82 million (51) due to higher
    net investment income and net interest income. The loan portfolio increased
    in the year to March by 14.7% to EUR 18.9 billion.The cost/income ratio was
    32% (38).
  * Non-life Insurance earnings before tax decreased to EUR 42 million (59).
    Operating combined ratio was 95.5% (88.6). Net return on investments at fair
    value totalled EUR 50 million (-40).
  * Other Operations earnings before tax were EUR 9 million (1). Liquidity and
    access to funding remained good.
  * The CET1 ratio was 14.6% (14.9), while the target was 15%.
  * Unchanged outlook: OP Corporate Bank Group's consolidated earnings before
    tax are expected to be about the same as or lower than in 2016.

                                  Q1/2017 Q1/2016 Change, % Q1-4/2016

 Earnings before tax, EUR million

   Banking                             82      51      60.4       260

   Non-life Insurance                  42      59     -28.3       231

   Other Operations                     9       1                  13

 Group total                          133     111      20.0       504


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 2016 are used as
comparatives.



 Financial targets                  Q1/2017 2016                         Target

 Customer experience, NPS (-             67
 100-+100)                                    58               70, over time 90

 Common Equity Tier 1 (CET1) ratio,
 %                                     14.6 14.9                             15

 Return on economic capital, %         17.7 17.0                             22

                                                 Expenses in 2019 lower than in
 Expenses of present-day business,                                         2015
 EUR million                            489  471                          (475)

 Dividend payout ratio, %                 - 50.4                             50


Outlook towards the year end

The world economy and world trade showed a marked recovery in the first quarter.
Economic growth in the euro area too picked up. Recovery in the export market
made a strong contribution to Finnish exports.  On the whole, the Finnish
economic outlook has brightened in the first quarter and is now more optimistic
than for many years. Consumer confidence has improved and the housing market has
perked up. Political uncertainty both in export markets and Finland is still,
however, casting a shadow over economic recovery.

The financial sector has had to adjust to a new type of low interest rate
environment. Low interest rates retard growth in banks' net interest income and
erode insurance institutions' income from fixed income investments. Impairment
losses have remained low despite the slow growth that has lasted for several
years now. The most significant strategic risks in the financial sector are
currently associated with changing customer behaviour and operating environment
digitisation. Industry disruption is threatening to slow down growth and erode
income generation in the years to come. In the next few years, the financial
sector will be faced with a strong need to reinvent itself. Changes in the
operating environment will emphasise the role of the management of operational
reinvention, profitability and capital adequacy with a long-term approach.

OP Corporate Bank Group's consolidated earnings before tax are expected to be
about the same as or lower than in 2016. The most significant uncertainties
affecting earnings relate to changes in the interest rate and investment
environment, impairment loss on receivables, the rate of business growth and the
effect of large claims on claims expenditure.

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 statement.

Helsinki, 27 April 2017

OP Corporate Bank plc
Board of Directors

Financial reporting in 2017

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

Schedule for Interim Reports in 2017:

Interim Report H1/2017                                 2 August 2017
Interim Report Q1-Q3/2017                          1 November 2017

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

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.




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Viðhengi:

OP Corporate Bank plc Interim report Q1 2017.pdf