OP Corporate Bank plc
Stock Exchange Release, 2 February 2017 at 9.00 am EET
Financial Statements Bulletin
OP Corporate Bank plc's Financial Statements Bulletin for 1 January-31 December 2016
|Earnings before tax, EUR million|
Comparatives deriving from the income statement are based on figures reported for continuing operations for the corresponding period a year ago. Unless otherwise specified, balance-sheet and other cross-sectional figures on 31 December 2015 are used as comparatives.
|Customer experience, NPS (-100-+100)||58||70, over time 90|
|Common Equity Tier 1 (CET1) ratio, %||14.9||14.1||15|
|Return on economic capital, %||17.0||21.6||22|
|Expenses of present-day business, EUR million||471||475||Expenses in 2019 lower than in 2015|
|Dividend payout ratio, %*||50.4||30||50|
* Board proposal
Outlook for 2017
The Finnish economy recovered last year driven by consumer spending and construction in particular. Brexit, in particular, added uncertainty during 2016. The uncertainty remained, however, transient. Confidence indicators improved during the rest of the year. In Finland, consumer confidence in particular improved, which was helped by lower unemployment. The housing market picked up and home prices rose moderately. The world economy is expected to recover slightly, which together with pro-competitiveness measures should gradually support Finnish exports. The Finnish economy is expected to continue to grow at a relatively steady rate on a broader base than before. Political uncertainty in export markets and partly in Finland too will cast a shadow over the economic outlook.
Low market interest rates will erode banks' net interest income and weaken insurance institutions' investment income, but then again will support customers' repayment capacity. Impairment losses in the banking sector have been low despite the persistent slow economic growth. The financial sector's preparation for changing customer behaviour and challenges presented by digitisation will substantially increase the need for reinvention in the sector across the board. Industry disruption is threatening to erode income generation too in the years to come. Changes in the operating environment will emphasise the role of the management of operational efficiency, profitability and capital adequacy with a long-term approach.
OP Corporate Bank Group's consolidated earnings before tax in 2017 are expected to be about the same as or lower than in 2016. The most significant uncertainties affecting earnings relate to changes in the interest rate and investment environment, impairment loss on receivables, the rate of business growth and the effect of large claims on claims expenditure.
All forward-looking statements in this Financial Statement Bulletin 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 OP Corporate Bank Group and its various functions, and actual results may differ materially from those expressed in the forward-looking statements.
Helsinki, 2 February 2017
OP Corporate Bank plc
Board of Directors
Financial reporting in 2017
OP Corporate Bank plc publishes the following financial information pursuant to the regular disclosure obligation of a securities issuer:
Schedule for Interim Reports in 2017:
|Interim Report Q1/2017||27 April 2017|
|Interim Report H1/2017||2 August 2017|
|Interim Report Q1-3/2017||1 November 2017|
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www.op.fi , www.pohjola.com
For additional information, please contact
Jouko Pölönen, President and CEO, tel. +358 (0)10 253 2691
Carina Geber-Teir, Executive Vice President, Corporate Communications, tel. +358 (0)10 252 8394
OP Corporate Bank is part of the leading Finnish customer-owned financial services group, OP Financial Group. OP Corporate Bank and OP Mortgage Bank are responsible for OP's funding in money and capital markets. As laid down in the applicable law, OP Corporate Bank, OP Mortgage Bank and their parent company OP Cooperative and other OP Financial Group member credit institutions are ultimately jointly and severally liable for each other's debts and commitments. OP Corporate Bank acts as OP's central bank.