OP Mortgage Bank: Financial Statements Bulletin for 1 January‒31 December 2025

Core Viewpoint - OP Mortgage Bank has maintained a stable financial standing with a strong capital base and continues to issue covered bonds to support its cooperative banks, despite regulatory changes affecting its capital ratios [5][8][43]. Financial Standing - Bonds issued by OP Mortgage Bank totaled EUR 14,800 million at the end of December, with all funds intermediated to 54 OP cooperative banks as intermediary loans [2]. - Operating profit for the year was EUR 4.8 million, showing a slight increase from EUR 4.4 million in the previous year [5]. - The Common Equity Tier 1 (CET1) ratio decreased to 378.0% from 797.0% due to an increase in total risk exposure amount following regulatory changes [8][13]. Capital Adequacy and Risk Exposure - OP Mortgage Bank's CET1 capital stood at EUR 364,657 million, fully covering its capital requirements [11][9]. - The total risk exposure amount increased significantly to EUR 96,465 million from EUR 45,755 million, primarily due to changes in the calculation of credit and operational risks [12]. - The bank's MREL ratio was 378% of the total risk exposure amount, indicating a strong buffer above the required levels [17]. Covered Bonds and Collateralization - The EMTCB program established a total of EUR 25 billion, with EUR 7,250 million in covered bonds issued, and a cover pool of EUR 8,054 million in loans serving as collateral [6]. - OP Mortgage Bank issued a fixed-rate covered bond of EUR 1 billion in April 2025, with proceeds intermediated to 38 OP cooperative banks [4]. Sustainability and Corporate Responsibility - OP Pohjola's sustainability efforts are guided by a program updated at the end of 2025, focusing on climate, communities, and corporate governance [28]. - The bank has committed to various international initiatives, including the UN Global Compact and the Principles for Responsible Banking [29]. Personnel and Governance - At the end of the reporting period, OP Mortgage Bank had six employees, with key support services digitized and sourced from OP Cooperative [34][35]. - The governing body includes a Chair and several members from OP Cooperative and OP Corporate Bank, ensuring strong oversight [36].