OP-Pohjola Group
Press release
8 December 2011 at 7.00 pm
The European Banking Authority (EBA) has updated its assessment concerning banks' capital buffers on the basis of figures on 30 September 2011. In this calculation, banks' investments in European government bonds are valued at market value, and banks are required to have a Core Tier 1 ratio of at least 9%. Banks have again published all their government bond exposure.
According to EBA's estimate, OP-Pohjola Group is not required to take any action to improve its capital adequacy because the Group's Core Tier 1 ratio is high and the sovereign bond risks are low. OP-Pohjola Group's Core Tier 1 ratio was 11.1% on 30 September 2011, which was clearly above the minimum level of 9% set by the EBA. Neither did the valuation of government bonds at market value in the balance sheet under acquisition costs on 30 September 2011 create any need to increase the amount of capital. OP-Pohjola Group member banks' direct investments in PIIGS government bonds had a value of EUR 42 million on 30 September.
"These calculations show again that OP-Pohjola Group's capacity to cope with crises is high," says the Group's Executive Chairman Reijo Karhinen.
"As we said in our January-September interim report, we want to continue to have a profile as a player with solid capital adequacy. Therefore we decided to raise our capital adequacy target (Core Tier 1) to 15% and in doing so lead the way in the entire sector," he continues.
EBA's updated estimate on the equity was calculated on 71 large European banks. The estimate concerning OP-Pohjola Group has to do with banking operations, covering, among others, Pohjola Bank plc and the Group member cooperative banks.
For more information about EBA's capital buffer estimates, go to the Financial Supervisory Authority's website on wwwfinanssivalvonta.fi.
For further information, please contact:
Harri Luhtala, CFO, tel. +358 (0)10 252 2433
Carina Geber-Teir, Chief Communications Officer, tel. +358 (0)10 252 8394
OP-Pohjola Group in brief
OP-Pohjola Group is Finland's leading financial services group providing a unique range of banking, investment and insurance services. The Group has the mission of promoting the sustainable prosperity, well-being and security of its owner-members, customers and operating regions through its local presence. Its objective is to offer the best and most versatile package of loyal customer benefits on the market. OP-Pohjola Group consists of some 200 Group member banks and the Group's central institution OP-Pohjola Group Central Cooperative with its subsidiaries and closely related companies, the largest of which is the listed company Pohjola Bank plc. With a staff of over 12,000, OP-Pohjola Group earnings before tax for 2010 were EUR 575 million and total assets of EUR 84 billion on 31 December 2010. The Group has over four million customers.
www. op.fi