Pohjola Group performance for January-June 2015

Pohjola Bank plc
Stock Exchange Release 5 August 2015 at 8.00 am
Interim Report

Pohjola Group performance for January-June 2015 

• Consolidated earnings before tax were EUR 361 million (336) and consolidated earnings before tax at fair value amounted to EUR 306 million (393). The return on equity was 17.0% (17.2).
• The Common Equity Tier 1 (CET1) ratio was 13.8% (12.4) as against the target of 15%.
• Earnings reported by Banking improved by 4% year on year. The loan portfolio grew by 7% to EUR 15.9 billion (14.9). Earnings included EUR 18 million (8) in impairment loss on receivables.
• Non-life Insurance earnings improved by 9% year on year as a result of an increase in investment income. Insurance premium revenue rose by 5% (7). Combined ratio was 89.4 (86.1). Operating combined ratio*) was 87.8% (84.5). Return on investments at fair value was 1.3% (3.4).
• Earnings before tax reported by Other Operations improved by 25% year on year thanks to higher net investment income and lower expenses in Other Operations.
• Within Wealth Management, earnings remained at the previous year's level. Assets under management increased by 7% to EUR 46.3 billion (43.3).
• Change in the outlook: Consolidated earnings from continuing operations before tax in 2015 are expected to be at the same level as or higher than in 2014 (previous estimate: "at the same level as in 2014"). For more detailed information on the outlook, see "Outlook towards the year end" below.
  
  
  
  

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 2014 are used as comparatives.

Earnings before tax, € million	H1/2015	H1/2014	Change, %	2014
Banking	175	167	4	303
Non-life Insurance	145	133	9	223
Other Operations	28	22	25	20
Wealth Management	14	14	2	38
Group total	361	336	7	584
Change in fair value reserve	-55	57		79
Earnings before tax at fair value	306	393	-22	663
Equity per share, €	10.80	9.81		10.38
Average personnel	2,485	2,592		2,563

The above figures describe Pohjola Group as a whole without the division into continuing and discontinued operations.