Pohjola Group in 2014
(Thomson Reuters ONE) -
Pohjola Bank plc
Stock Exchange Release 5 February 2015 at 8.00 am
Financial Statements Bulletin
Pohjola Group in 2014
- Consolidated earnings before tax amounted to EUR 584 million (479) and
consolidated earnings before tax at fair value to EUR 663 million (464). Return
on equity was 14.3% (14.4). The Core Tier 1 ratio was 12.4% (11.9*) as against
the target of 15%.
- Strong growth in income improved Banking earnings. The loan portfolio grew by
5% to EUR 14.9 billion (14.2). The average margin on the corporate loan
portfolio was 1.44% (1.57). Earnings included EUR 25 million (35) in impairment
loss on receivables.
- Within Non-life Insurance, insurance premium revenue increased by 5% (11). The
combined ratio was 91.0% (91.6). A reduction in the discount rate for pension
liabilities decreased earnings by EUR 62 million (38). Excluding changes in
reserving bases and amortisation on intangible assets arising from company
acquisition, the operating combined ratio improved to 84.7% (86.9). Return on
investments at fair value was 6.7% (3.5).
- Asset Management earnings improved due to higher performance-based management
fees. Assets under management increased by 14% to EUR 43.3 billion (37.9).
- The Board of Directors proposes a dividend per share of EUR 0.43. This means a
dividend payout ratio of 30%.
- OP Cooperative completed its public voluntary bid announced in February 2014
and obtained ownership of all Pohjola Bank plc shares by decision of the
Arbitral Tribunal. Pohjola's series A shares were delisted from the Helsinki
Stock Exchange on 30 September 2014. OP Cooperative was entered as the only
shareholder in Pohjola's shareholder register on 7 October 2014.
- Outlook for 2015: Consolidated earnings from continuing operations before tax
in 2015 are expected to be at the same level as in 2014. For more detailed
information on the outlook, see "Outlook for 2015" below.
October-December
- Consolidated earnings before tax were EUR 117 million (95) and consolidated
earnings before tax at fair value amounted to EUR 144 million (112).
- Banking earnings before tax decreased by 27% due to lower net trading income.
Net interest income grew by 17% year on year. The loan portfolio increased by
2% and the average margin on the corporate loan portfolio decreased by 5 basis
points. Earnings included EUR 7 million (5) in impairment loss on receivables.
- Within Non-life Insurance, insurance premium revenue increased by 2% (13). The
combined ratio was 91.1% (101.4). A reduction in the discount rate for pension
liabilities reduced earnings a year earlier by EUR 38 million. The operating
combined ratio was 89.5% (87.7). Return on investments at fair value was 1.7%
(1.4).
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 2013 are used as
comparatives. Comparative figures have been restated as a result of the
adoption of IFRS 10 Consolidated Financial Statements.
*) In accordance with the Capital Requirements Regulation (EU 575/2013) (CRR)
since 1 January 2014.
**) According to the Solvency II draft (EU 138/2009).
***) Board proposal
Earnings before tax, EUR 2014 2013 Change % Q4/2014 Q4/2013 Change %
million
-------------------------------------------------------------------------------
Banking 303 251 21 55 75 -27
Non-life Insurance 223 166 34 32 4
Group Functions 20 39 -48 11 10 14
Asset Management 38 24 59 18 5
Group total 584 479 22 117 95 23
Change in fair value reserve 79 -15 28 17 63
Earnings before tax at fair 663 464 43 144 112 29
value
Equity per share, ? 10.38 9.54
Average personnel 2,563 2,632 2,516 2,553
-------------------------------------------------------------------------------
The above figures describe Pohjola Group as a whole without the division into
continuing and discontinued operations.
Financial targets 2014 2013 Q4/2014 Q4/2013 Target
-------------------------------------------------------------------------------
Return on equity, % 14.3 14.4 11.3 17.5 13
Common Equity Tier 1 ratio (CET1), % *) 12.4 11.9 15
Operating cost/income ratio by Banking,
% 33 36 40 34 < 35
Operating combined ratio by Non-life
Insurance, % 84.7 86.9 89.5 87.7 < 92
Operating expense ratio by Non-life
Insurance, % 18.4 18.7 21.5 19.9 18
Non-life Insurance solvency ratio (under
Solvency II framework), % **) 117 125 120
Operating cost/income ratio by Asset
Management, % 42 53 30 56 < 45
Total expenses in 2015 at the same level
as at the end of 2012 598 581 152 155 569
AA rating affirmed by at least two
credit rating agencies or credit ratings
at least at the main competitors' level 2 2 2
Dividend payout ratio at least 50%,
provided that CET 1 ratio is at least
15%. Dividend payout ratio is 30% until
CET1 ratio of 15% has been achieved. 30***) 50 > 50 (30)
-------------------------------------------------------------------------------
Outlook for 2015
The euro area economy will continue to grow at a slow rate and remains prone to
disturbances despite the loose financial policy of the European Central Bank and
other measures taken to support economic growth. Similarly, economic growth in
Finland is expected to remain weak, although exports have begun to grow slowly.
The tension in international politics will continue to cause uncertainty for the
Finnish economy, slowing the country's recovery from recession.
Modest economic development combined with the tensions of international politics
are weakening growth prospects in the financial sector. Historically low
interest rates will erode banks' net interest income and weaken insurance
institutions' investment income. The significance of measures that support
capital adequacy and profitability is heightened by changes in the operating
environment and the tightening of regulation.
Despite the challenging operating environment, Pohjola Group's consolidated
earnings from continuing operations before tax in 2015 are expected to be at the
same level as in 2014. The most significant uncertainties affecting earnings in
2015 relate to the rate of business growth, impairment loss on receivables,
developments in bond and capital markets, the effect of large claims on claims
expenditure and to the discount rate applied to insurance liabilities.
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 Pohjola Group and its various functions,
and actual results may differ materially from those expressed in the forward-
looking statements.
Helsinki, 5 February 2015
Pohjola Bank plc
Board of Directors
This Financial Bulletin is available at www.pohjola.com > Media > Releases.
Financial reporting in 2015
Pohjola Bank plc publishes the following financial information pursuant to the
regular disclosure obligation of a securities issuer:
Schedule for Interim Reports in 2015:
Interim Report Q1/2015: 29 April 2015
Interim Report H1/2015: 5 August 2015
Interim Report Q1-3/2015: 28 October 2015
DISTRIBUTION
NASDAQ OMX Helsinki Ltd
London Stock Exchange
SIX Swiss Exchange
Major media
www.pohjola.com, www.op.fi
For additional information, please contact
Jouko Pölönen, President and CEO, tel. +358 (0)10 253 2691
Carina Geber-Teir, Chief Communications Officer, tel. +358 (0)10 252 8394
Pohjola is part of the leading Finnish customer-owned financial services group,
OP Financial Group. Pohjola provides its customers with banking, non-life
insurance and asset management services. Pohjola is OP Financial Group's central
bank and is, together with OP Mortgage Bank, responsible for OP Financial
Group's funding operations on money and capital markets. As laid down in the
applicable law, Pohjola, its parent company OP Cooperative and the member credit
institutions are ultimately jointly and severally liable for each other's debts
and commitments. The joint liability in OP is prescribed by the Act on the
Amalgamation of Deposit Banks Act.
www.pohjola.fi
Pohjola Bank plc Financial Statements Bulletin 2014:
http://hugin.info/142911/R/1891919/670041.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#1891919]
Unternehmensinformation / Kurzprofil:
Datum: 05.02.2015 - 07:03 Uhr
Sprache: Deutsch
News-ID 369343
Anzahl Zeichen: 10787
contact information:
Town:
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Kategorie:
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