2015 EU-wide Transparency Exercise Summary for OP-Pohjola Group
Core Content
The document presents the results of the 2015 EU-wide Transparency Exercise for the OP-Pohjola Group, including capital structure, risk exposure amounts, and profit and loss (P&L) data. It provides a detailed breakdown of capital components, regulatory references, and risk exposures categorized by different risk types.
Capital Structure Overview
Capital Components (As of 31/12/2014 and 30/06/2015)
| Capital Component |
31/12/2014 (EUR) |
30/06/2015 (EUR) |
COREP Code |
Regulation |
| Own Funds |
7,316 |
8,326 |
CA1 (1) |
Articles 4(118) and 72 of CRR |
| CET1 Capital |
6,384 |
7,439 |
CA1 (1.1.1) |
Article 50 of CRR |
| Capital Instruments Eligible as CET1 |
1,709 |
2,234 |
CA1 (1.1.1.1) |
Articles 26(1) (a), (b), 27–29, 36(1) (f), 42 of CRR |
| Retained Earnings |
4,064 |
4,131 |
CA1 (1.1.1.2) |
Articles 26(1) (c), 26(2), 36(1) (a), (f) of CRR |
| Accumulated Other Comprehensive Income |
-568 |
-367 |
CA1 (1.1.1.3) |
Articles 4(100), 26(1) (d), 36(1) (f) of CRR |
| Other Reserves |
1,947 |
2,192 |
CA1 (1.1.1.4) |
Articles 4(117), 26(1) (e) of CRR |
| Adjustments to CET1 due to prudential filters |
-81 |
-63 |
CA1 (1.1.1.9) |
Articles 32–35, 36(1) (f) of CRR |
| Intangible assets (including Goodwill) |
-450 |
-482 |
CA1 (1.1.1.10 + 1.1.1.11) |
Articles 4(113), 36(1) (b), 37 of CRR; Articles 4(115), 36(1) (b), 37 (a) of CRR |
| Transitional adjustments |
102 |
155 |
CA1 (1.1.1.6 + 1.1.1.8 + 1.1.1.26) |
Various CRR articles |
Capital Ratios
| Capital Ratio |
31/12/2014 |
30/06/2015 |
| CET1 Capital Ratio |
15.11% |
18.00% |
| Tier 1 Capital Ratio |
15.49% |
18.34% |
| Total Capital Ratio |
17.31% |
20.14% |
Risk Exposure Amounts (As of 31/12/2014 and 30/06/2015)
| Risk Exposure Type |
31/12/2014 (EUR) |
30/06/2015 (EUR) |
| Credit Risk |
37,289 |
36,000 |
| Securitisation Risk |
436 |
31 |
| Market Risk |
1,377 |
1,461 |
| Total Risk Exposure |
42,254 |
41,334 |
Note: Risk exposure amounts include hedges that are not securitisation positions, as per Article 338.3 of CRR.
Profit and Loss (P&L) Data
| P&L Item |
31/12/2014 (EUR) |
30/06/2015 (EUR) |
| Interest Income |
2,686 |
1,265 |
| Interest Expenses |
1,650 |
755 |
| Net Operating Income |
2,022 |
1,041 |
| Administrative Expenses |
944 |
506 |
| Depreciation |
74 |
48 |
| Impairment Expenses |
92 |
37 |
| Profit or Loss Before Tax |
906 |
453 |
| Profit or Loss After Tax |
670 |
342 |
Additional Tier 1 and Tier 2 Capital
| Capital Type |
31/12/2014 (EUR) |
30/06/2015 (EUR) |
| Additional Tier 1 Capital |
161 |
141 |
| Tier 2 Capital |
772 |
746 |
Summary of Key Information
- The OP-Pohjola Group reported an increase in own funds from 7,316 EUR to 8,326 EUR between 2014 and 2015.
- CET1 Capital increased from 6,384 EUR to 7,439 EUR, indicating improved capital quality.
- The Total Risk Exposure Amount decreased from 42,254 EUR to 41,334 EUR, with a notable drop in securitisation risk.
- Capital ratios improved significantly, with CET1 Capital ratio increasing from 15.11% to 18.00%, Tier 1 from 15.49% to 18.34%, and Total Capital from 17.31% to 20.14%.
- The P&L showed a decrease in net operating income, from 2,022 EUR to 1,041 EUR, with a reduction in interest income and expenses.
- Transitional adjustments were applied to CET1 Capital, with a net increase from 102 EUR to 155 EUR.
- Risk exposure for market risk increased slightly from 1,377 EUR to 1,461 EUR, primarily driven by commodities risk.
Key Regulatory References
- CET1 Capital is defined under Article 50 of CRR.
- Own Funds are defined under Articles 4(118) and 72 of CRR.
- Risk exposure amounts are reported under Articles 92(3), 95, 96, and 98 of CRR.
- Transitional adjustments are referenced in Articles 469–472, 478, and 481 of CRR.
Conclusion
The 2015 EU-wide Transparency Exercise highlights the OP-Pohjola Group's capital strength and risk management practices. The bank improved its capital ratios and made adjustments to its CET1 capital, which reflects a stronger capital position. The risk exposure data shows a slight overall reduction, but market risk increased, especially in commodities. The P&L data indicates a decline in profitability, possibly due to interest rate changes and operational costs. The report also emphasizes the importance of regulatory compliance and transitional adjustments in capital reporting.
