Release details

2019-02-11 14:30 CET
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OP Financial Group's capital adequacy clearly exceeds the new minimum requirement set by the ECB

OP Corporate Bank plc
OP Cooperative
Stock Exchange Release
11 February 2019 at 3.30 pm EET

OP Financial Group's capital adequacy clearly exceeds the new minimum requirement set by the ECB

The European Central Bank (ECB) has updated the capital buffer requirement on OP Financial Group as part of the Supervisory Review and Evaluation Process (SREP). The capital buffer requirement (P2R) will increase from 1.75% to 2% as of 1 March 2019. When taking account of this capital buffer requirement, the new minimum for OP's CET1 ratio is 11% and for its capital adequacy ratio 14.5%.

The ECB has kept the capital adequacy guidance (P2G) unchanged at 1.0%. This guidance included, the CET1 requirement for OP Financial Group is 12%.

OP Financial Group's capital adequacy clearly exceeds the new minimum set. At the end of 2018, OP Financial Group's CET1 ratio stood at 20.5% and the capital adequacy ratio at 22.5%. The new minimum set by the ECB increases the capital requirement based on the Act on the Supervision of Financial and Insurance Conglomerates (FiCo), whereby the FiCo solvency falls by 2 percentage points following the new capital buffer requirement. At the end of 2018, the Fico solvency was 147% (minimum 100).

OP Financial Group is supervised by the European Central Bank (ECB). The SREP is part of normal banking supervision activities carried out by the ECB, aiming to ensure that banks have sufficient risk management methods as well as sufficient capital and liquidity to manage risks and cover risks.

OP Corporate Bank plc
OP Cooperative
Tuuli Kousa
Chief Communications Officer

For additional information, please contact:
OP Communications, tel. +358 (0)50 523 9904, viestinta@op.fi

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OP Financial Group is Finland's largest financial services group whose mission is to create sustainable prosperity, security and wellbeing for its owner-customers and in its operating region by means of its strong capital base and efficiency. OP Financial Group consists of 156 OP cooperative banks, its central cooperative OP Cooperative, and the latter's subsidiaries and affiliates. The Group has a staff of 12,000 and 1.9 million owner-customers.
 www.op.fi

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.

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