OP-Pohjola Group's risk-bearing capacity strong in ECB's comprehensive assessment
(Thomson Reuters ONE) -
26 October 2014
Press Release
OP-Pohjola Group's risk-bearing capacity strong in ECB's comprehensive
assessment
The supervisors announce OP-Pohjola Group to have a strong financial standing.
The Group's capital adequacy remained strong both in the European Central Bank's
comprehensive assessment, which looked at European banks' assets using uniform
valuation principles, and in a stress test carried out by European banking
supervisors, which measures capital adequacy developments in different stress
scenarios. The stress test assumptions were more rigorous than earlier ones.
The result of the supervisor's comprehensive assessment is that OP-Pohjola
Group's capital adequacy will remain strong and well above the minimum
requirement even in an operating environment of a very adverse scenario.
In the baseline scenario, meaning that the operating environment remains
unchanged, OP-Pohjola Group's Common Equity Tier 1 (CET1) ratio will improve and
be 17.2% in 2016, while the minimum requirement is 8%.
In the adverse scenario, capital adequacy will be burdened by considerable
impairments, bringing the CET1 ratio down to 12.0%, which is still more than
double the minimum requirement set by the ECB for the comprehensive assessment.
"These results show again that we have a solid foundation and have an excellent
capacity to fend off crises," says OP-Pohjola Group's Executive Chairman Reijo
Karhinen.
"We have been determined to maintain high earnings. These test results show that
we have achieved our main objectives. Both our performance since the beginning
of the financial crisis and the stress test just carried out point in the same
direction. Our ability to respond to our customers' financing needs is very
good.
"On the whole, it was a massive operation. The Asset Quality Review and stress
tests give valuable information about the financial status of banks. I hope
these measures will increase transparency in the financial sector, increase
trust and boost economic activity in Europe," Mr Karhinen concludes.
Despite the purchase of Pohjola Bank plc shares, the Group's capital adequacy is
strong
The stress test is based on the situation at the end of 2013. OP-Pohjola Group
bought Pohjola Bank plc shares held by minority shareholders in the early part
of 2014, reducing the Group CET1 capital. In order to capitalise the purchase of
these shares, cooperative banks have issued Profit shares included under CET1
capital. The purchase of Pohjola shares and the changes to CET1-compliant Profit
and supplementary shares reduced CET1 capital at the end of September by a net
amount of EUR 1.5 billion.
OP-Pohjola Group's CET1 ratio published on 30 September stood at 13.6%. OP-
Pohjola Group would have been above the stress test's minimum requirement by a
clear margin even if the test had been carried out at the end of September.
The objective of comprehensive assessment is to increase transparency and
consistency
The European Central Bank and national supervisory authorities carried out a
comprehensive assessment of the 130 banks in the European Union that are
transferred under ECB supervision in November 2014. A comprehensive assessment
is the first step towards better transparency of banks' balance sheets and
consistency of supervisory measures within Europe. Assessment began in November
2013 and lasted for 12 months.
ECB's comprehensive assessment consisted of an Asset Quality Review (AQR) and a
stress test. The purpose of the AQR was to harmonise the base level for all
banks before the stress test using uniform evaluation methods, while the stress
test was applied to predict banks' capital adequacy developments in a baseline
scenario and and adverse scenario.
The stress tests were carried out using the European Banking Authority's (EBA)
uniform methodology and simplified assumptions, and they cannot be used to
predict future developments.
The Asset Quality Reviews, credit risks, banks' exposures to the government,
stress test scenarios and the detailed results have been presented in the
attached ECB and EBA public templates.
For more information:
Reijo Karhinen, Executive Chairman
Harri Luhtala, CFO
Corporate Communications contacts for media: +358 (0)50 523 9904,
viestinta(at)op.fi
OP-Pohjola is Finland's leading financial services group providing a unique
range of banking, wealth management and insurance services. OP-Pohjola's mission
is to promote the sustainable prosperity, security and wellbeing of its
customer-owners, customers and operating regions. Its objective is to offer the
best and most versatile package of loyal customer benefits on the market. OP-
Pohjola Group consists of about 180 member cooperative banks, its central
institution OP-Pohjola Group Central Cooperative, and the latter's subsidiaries
and affiliates. The Group has a staff of 12,000.
As laid down in the applicable law, OP-Pohjola Group Central Cooperative and its
member credit institutions are ultimately jointly and severally liable for each
other's debts and commitments. The joint liability in the OP-Pohjola Group is
prescribed by the Act on the Amalgamation of Deposit Banks Act. Pohjola Bank plc
and OP Mortgage Bank are responsible for OP-Pohjola's funding operations on
money and capital markets.
Financial services provider OP-Pohjola is continuing its revamp - this time the
focus is on its brand. The changes under way form part of the creation of a new
financial services group fully owned by its customers. OP-Pohjola's name is OP
as of 1 January 2015.
www.op.fi
OP-Group Results of EU-Wide Stress Test:
http://hugin.info/142911/R/1865828/655314.pdf
OP-Group Comprehensive Assessment Outcome:
http://hugin.info/142911/R/1865828/655313.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Pohjola Pankki Oyj via GlobeNewswire
[HUG#1865828]
Unternehmensinformation / Kurzprofil:
Datum: 26.10.2014 - 12:14 Uhr
Sprache: Deutsch
News-ID 346932
Anzahl Zeichen: 7054
contact information:
Town:
POHJOLA
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 200 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"OP-Pohjola Group's risk-bearing capacity strong in ECB's comprehensive assessment"
steht unter der journalistisch-redaktionellen Verantwortung von
Pohjola Pankki Oyj (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
