OP Mortgage Bank: Interim Report 1 January–30 September 2025

Core Insights - OP Mortgage Bank (OP MB) is the covered bond issuing entity of OP Pohjola, which changed its name on 28 October 2025 [1] - The financial standing of OP MB remains stable, with bonds issued totaling EUR 14,800 million by the end of September 2025 [2][5] Financial Performance - Operating profit for the reporting period was EUR 4.3 million, down from EUR 6.4 million in the previous year [5] - The Common Equity Tier 1 (CET1) ratio decreased to 377.0% from 797.0% due to an increase in total risk exposure amount [8][13] Bond Issuance and Collateralization - OP MB issued a fixed-rate covered bond of EUR 1 billion in April 2025, with proceeds intermediated to 38 OP cooperative banks [4][42] - The cover pool for bonds issued under the Euro Medium Term Covered Bond (Premium) programme totaled EUR 8,052 million in loans as of 30 September 2025, exceeding the minimum overcollateralization requirement [6][7] Capital Adequacy - OP MB's CET1 capital requirement is fully covered, with a minimum requirement of 10.5% [9] - The total risk exposure amount increased significantly to EUR 96,736 thousand from EUR 45,755 thousand in the previous year [12] Risk Management - OP MB has a strong capital base and risk-bearing capacity, with key credit risk indicators showing stability [37] - Interest rate swaps are utilized to hedge against interest rate risk, maintaining control over interest risk exposure [38] Sustainability Initiatives - OP Pohjola is committed to sustainability, reporting in accordance with the European Sustainability Reporting Standards [27][28] - The company has issued green covered bonds, with environmental impacts including 58,000 MWh of energy use avoided and 5,500 tonnes of CO2-equivalent emissions avoided in 2024 [32][33] Governance and Personnel - OP MB had six employees at the end of the reporting period, with key support services digitized and sourced from OP Cooperative [34] - The Board of Directors includes members with significant experience in finance and banking [35][36]