OP Yrityspankki Oyj - Company Announcement

OP Financial Group's capital adequacy remains solid in the stress test by the European Banking Authority

OP Financial Group
Stock exchange release
29 July 2016 at 11.15 pm EEST


OP Financial Group's capital adequacy remains solid in the stress test by the
European Banking Authority

OP Financial Group's capital adequacy remained solid in the stress test
conducted together by the European Banking Authority (EBA) and European banking
supervisors. The test measures EU-wide banking capital adequacy developments in
stress scenarios. On the basis of the test results, OP Financial Group's capital
adequacy is well above the minimum official requirements even in an operating
environment of an extremely adverse scenario.

-The stress test results showed explicitly once again that OP Financial Group's
financial strength is on a solid basis. We are a safe partner for our customers.
Thanks to our strong capital base, our performance will remain stable even in
economic shocks. Our long-term approach to business is a strategic strength to
which we want to continue to adhere, states Reijo Karhinen, President and Group
Executive Chairman.

In the baseline scenario of the test under which the operating environment
mainly remains unchanged, OP Financial Group's CET1 ratio will improve further
and be 21.2% in 2018. At the end of March 2016, OP Financial Group's CET1 ratio
was 19.5%.

In an adverse scenario, earnings and capital adequacy will be burdened, for
example, by lower net interest income caused by higher funding costs as well as
higher impairment losses, bringing OP Financial Group's CET1 ratio down to
14.9%, which would still be above the minimum capital adequacy requirements.

Stress tests assess banks' capacity to withstand crises

Stress tests aim at providing supervisors, banks and other market participants
with a common framework for assessing the status of the financial health of EU
banks. The EU-wide stress test conducted in the spring of 2016 included 51 banks
covering around 70% of the total banking assets in the EU. Of the 51 banks
subject to the stress test, 37 are directly supervised by the ECB, OP Financial
Group included.

The EBA has conducted stress tests since 2009, the previous one conducted in
2014. The stress tests have been conducted using the EBA's uniform methodology
and simplified assumptions, and they cannot be used to predict future
developments.

The EBA published the stress test results on its website on 29 July at 10.00 pm
CEST. The tables available on the EBA's website present the results of OP
Financial Group and other banks.

For more information, please contact:
OP Communications, Saturday 30 July from 9 am:
viestinta@op.fi, tel. +358 (0)50 523 9904

Distribution
Nasdaq Helsinki
LSE London Stock Exchange
SIX Swiss Exchange
Major media
op.fi and pohjola.com

OP Financial Group is Finland's largest financial services group whose mission
is to create sustainable prosperity, security and wellbeing for its owner-
customers and in its operating region by means of its strong capital base and
efficiency. OP Financial Group consists of about 180 member cooperative banks,
its central cooperative OP Cooperative, and the latter's subsidiaries and
affiliates. The Group has a staff of 12,000 and 1.6 million owner-customers and
4.3 million customers. www.op.fi

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