OP-Pohjola Group continues to show markedly larger capital buffers than those required by the recommendation of the European Banking Authority (EBA). Accordingly, no measures to enhance the capital base are required of the Group. OP-Pohjola Group has both a high Core Tier 1 ratio and low exposure to sovereign debt.
On 30 June 2012, OP-Pohjola Group's Core Tier 1 ratio, measured based on the EBA methodology, stood at 14.5%, which is clearly above the minimum core capital ratio of 9% set by the EBA. OP-Pohjola Group member banks have no direct GIIPS sovereign debt exposures.
The EBA has monitored the implementation of its December 2011 recommendation on the recapitalisation needs of major European banks. Based on its exercise, the EBA has again issued a report providing information on sovereign debt exposures by all of the banks covered by the recommendation showing the end-2011 and June-end 2012 status. The report also reveals the structure of Tier 1 capital and risk-weighted assets.
In the EBA's exercise, banks' European sovereign debt exposures are measured at market value, and banks are required to show a Core Tier 1 ratio of at least 9%.
The exercise concerning OP-Pohjola Group applies to its banking business covering, among others, Pohjola Bank plc and the Group member cooperative banks.
For more information about the EBA's capital buffer exercise, go to the Financial Supervisory Authority's website, www.finanssivalvonta.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 is Finland's leading financial services group providing a unique range of banking, investment and insurance services. The Group's mission is to promote 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. The Group has a staff of over 13,000. OP-Pohjola Group posted earnings before tax of EUR 518 million in 2011 and had total assets of EUR 92 billion on 31 December 2011. The Group has over four million customers.
www.op.fi