Pohjola Bank plc to redeem Lower Tier 2 subordinated note of EUR 170 million

Pohjola Bank plc
Stock Exchange Release
15 February 2013, 11.35 am

Pohjola Bank plc to redeem Lower Tier 2 subordinated note of EUR 170 million

Pohjola Bank plc (Pohjola) will redeem Lower Tier 2 subordinated note of EUR 170 million, which it issued in March 2008. According to the terms and conditions, the note was to mature in 25 March 2018 but with the Finnish Financial Supervisory Authority`s permission the issuer has the right to call in the note early in March 2013.

The note is listed on the London Stock Exchange.

On 31 December 2012, Pohjola Group`s capital adequacy ratio under the Act on Credit Institutions stood at 13.1%, Tier 1 ratio at 12.4%, Core Tier 1 ratio at 10.6% and the capital adequacy ratio under the Act on the Supervision of Financial and Insurance Conglomerates was 1.70.

The abovementioned redemption will reduce Pohjola Group`s capital adequacy ratio under the Act on Credit Institutions by 1.1 percentage points, Tier 1 ratio by 0.4 percentage points and the capital adequacy ratio under the Act on the Supervision of Financial and Insurance Conglomerates by 0.03 (pro forma). The redemption will not change the Core Tier 1 ratio.

Pohjola Group is part of OP-Pohjola Group. On 31 December 2012, OP-Pohjola Group`s Core Tier 1 ratio was 14.1%. Excluding the effect of transitional provisions limiting the benefit of risk-based measurement methods, the above ratio was 14.8%. On 31 December 2012, the Tier 1 ratio and the capital adequacy ratio under the Act on Credit Institutions were at the same level as the Core Tier 1 ratio. On the same date, OP-Pohjola Group`s capital adequacy ratio under the Act on the Supervision of Financial and Insurance Conglomerates stood at 1.90.

The abovementioned redemption will reduce OP-Pohjola Group`s Core Tier 1 Ratio by 0.5 percentage points (pro forma). The other ratios above will also be affected in the same way. The redemption will reduce OP-Pohjola Group`s capital adequacy ratio under the Act on the Supervision of Financial and Insurance Conglomerates by 0.05 (pro forma).

Pohjola Bank plc


Carina Geber-Teir
Chief Communications Officer

For more information, please contact:
Vesa Aho, CFO, tel. +358 (0)10 252 2336
Hanno Hirvinen, Executive Vice President, tel. +358 (0)10 252 2221
Niina Pullinen, Senior Vice President, Investor Relations, tel. +358 (0)10 252 4494


Distribution
NASDAQ OMX Helsinki Ltd
LSE London Stock Exchange
SIX Swiss Exchange
Major media
op.fi and pohjola.com

Pohjola Bank plc is a Finnish financial services group which provides its customers with banking, non-life insurance and asset management services. Our mission is to promote the prosperity, security and wellbeing of our customers. Profitable growth and an increase in company value form our key objectives. Pohjola Group serves corporate customers in Finland and abroad by providing an extensive range of financial, investment, cash-management and non-life insurance services. We offer non-life insurance and private banking services to private customers. Pohjola Series A shares have been listed on the Large Cap List of the NASDAQ OMX Helsinki since 1989. The number of shareholders totals around 32,000. Pohjola`s consolidated earnings before tax came to 374 million euros in 2012 and the balance sheet total amounted to 45 billion euros on 31 December 2012. Pohjola is part of OP-Pohjola Group, the leading financial services group in Finland with over four million customers.

www.pohjola.com




This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters 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 Thomson Reuters ONE

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