OP Mortgage Bank: Interim Report 1 January–31 March 2026

OP Mortgage Bank
Interim Report 1 January–31 March 2026
Stock Exchange Release 6 May 2026 at 10.00 EEST

OP Mortgage Bank: Interim Report 1 January–31 March 2026

OP Mortgage Bank is the covered bond issuing entity of OP Pohjola. Together with OP Corporate Bank plc, its role is to raise funding for OP Pohjola from money and capital markets.

Financial standing

Bonds issued by OP Mortgage Bank totalled EUR 14,800 million (14,800)* at the end of March. All funds received from the bonds have been intermediated in their entirety to 51 OP cooperative banks in the form of intermediary loans.

OP Mortgage Bank 's covered bonds after 8 July 2022 are issued under the Euro Medium Term Covered Bond (Premium) programme (EMTCB), pursuant to the Finnish Act on Mortgage Credit Banks and Covered Bonds (151/2022). The collateral is added to the EMTCB cover pool from OP cooperative banks ' balance sheets via the intermediary loan process on the issue date of a new covered bond.

The terms of issue are available on the op.fi website, under Debt investors: www.op.fi/en/op-financial-group/debt-investors/issuers/op-mortgage-bank/emtcb-debt-programme-documentation

Operating profit was EUR 1.7 million (1.7). The company 's financial standing remained stable throughout the reporting period.

* The comparatives for 2025 are given in brackets. For income statement and other aggregated figures, January–March 2025 figures serve as comparatives. For balance-sheet and other cross-sectional figures, figures at the end of the previous financial year (31 December 2025) serve as comparatives.

Collateralisation of bonds issued to the public

The European covered bonds (premium) issued under the EMTCB programme of EUR 25 billion established on 11 October 2022, in accordance with the Act on Mortgage Credit Banks and Covered Bonds (151/2022), totalled EUR 7,250 million. The cover pool included a total of EUR 8,056 million in loans serving as collateral at the end of March. Overcollateralisation exceeded the minimum requirement under the Act (151/2022).

The covered bonds issued under the Euro Medium Term Covered Note programme (EMTCN) of EUR 20 billion, established on 12 November 2010 in accordance with the Act on Mortgage Credit Banks (Laki kiinnitysluottopankkitoiminnasta, 688/2010), totalled EUR 7,550 million. The cover pool included a total of EUR 8,241 million in loans serving as collateral at the end of March. Overcollateralisation exceeded the minimum requirement under the Act (688/2010).

Capital adequacy

OP Mortgage Bank 's Common Equity Tier 1 (CET1) ratio stood at 1,848.3% (378.0) at the end of March. The ratio increased due to a change in the calculation of operational risks. The minimum CET1 capital requirement is 4.5% and the requirement for the capital conservation buffer is 2.5%. The minimum total capital requirement is 8% (or 10.5% with the increased capital conservation buffer). OP Mortgage Bank fully covers its capital requirements with CET1 capital, which in practice means that it has a CET1 capital requirement of 10.5%. Estimated profit distribution has been subtracted from earnings for the reporting period.

The capital adequacy requirement for credit risk is measured using the Standardised Approach (SA).

As part of OP Pohjola, OP Mortgage Bank is supervised by the European Central Bank (ECB). OP Pohjola presents capital adequacy information in its financial statements bulletins and interim and half-year financial reports in accordance with the Act on the Amalgamation of Deposit Banks. OP Pohjola also publishes Pillar 3 disclosures.

Joint and several liability of amalgamation

Under the Act on the Amalgamation of Deposit Banks (599/2010), the amalgamation of cooperative banks comprises the organisation 's central cooperative (OP Cooperative), the central cooperative 's member credit institutions and the companies belonging to their consolidation groups, as well as credit and financial institutions and service companies in which the above together hold more than half of the total votes. This amalgamation is supervised on a consolidated basis. On 31 March 2026, OP Cooperative 's member credit institutions comprised 51 OP cooperative banks, OP Corporate Bank plc, OP Mortgage Bank and OP Retail Customers plc.

The central cooperative is responsible for issuing instructions to its member credit institutions concerning their internal control and risk management, their procedures for securing liquidity and capital adequacy, and for compliance with harmonised accounting policies in the preparation of the amalgamation 's consolidated financial statements.
As a support measure referred to in the Act on the Amalgamation of Deposit Banks, the central cooperative is liable to pay any of its member credit institutions the amount necessary to preventing the credit institution from being placed in liquidation. The central cooperative is also liable for the debts of a member credit institution which cannot be paid using the member credit institution 's assets.

Each member bank is liable to pay a proportion of the amount which the central cooperative has paid to either another member bank as a support measure or to a creditor of such a member bank in payment of an overdue amount which the creditor has not received from the member bank. Furthermore, if the central cooperative defaults, a member bank has unlimited refinancing liability for the central cooperative 's debts as referred to in the Co-operatives Act.

Each member bank 's liability for the amount the central cooperative has paid to the creditor on behalf of a member bank is divided between the member banks in proportion to their last adopted balance sheets. OP Pohjola 's insurance companies do not fall within the scope of joint and several liability.

The creditors of covered bonds issued prior to 8 July 2022 according to section 25 of the Act on Mortgage Credit Banks (688/2010), which was valid at that time, have the right to receive payment, before other claims, for the entire term of the bond, in accordance with the terms and conditions of the bond, out of the funds entered as collateral, without this being prevented by OP Mortgage Bank 's liquidation or bankruptcy. A similar and equal priority also applies to derivative contracts entered in the register of bonds, and to marginal lending facilities referred to in section 26, subsection 4 of said Act. For mortgage-backed loans included in the total amount of collateral of covered bonds issued prior to 8 July 2022, the priority of the covered bond holders ' payment right is limited to the amount of loan that, with respect to home loans, corresponds to 70% of the value of shares or property serving as security for the loan and entered in the bond register at the time of the issuer 's liquidation or bankruptcy declaration.

Under section 20 of the Act on Mortgage Credit Banks and Covered Bonds (151/2022), which entered into force on 8 July 2022, the creditors of bonds issued after 8 July 2022, including the related management and clearing costs, have the right to receive payment from the collateral included in the cover pool, before other creditors of OP Mortgage Bank or the OP cooperative bank which is the debtor of an intermediary loan. A similar priority also applies to creditors of derivative contracts related to covered bonds, including the related management and clearing costs. Interest and yield accruing on the collateral, and any substitute assets, fall within the scope of said priority.

Section 44, subsection 3 of the Act on Mortgage Credit Banks and Covered Bonds includes provisions on the creditor 's priority claim regarding cover pool liquidity support. According to said subsection, the creditor has the right to receive payment against the funds contained in the cover pool after claims based on the principal and interest of covered bonds secured by the cover assets included in the cover pool, obligations based on derivatives contracts associated with covered bonds, as well as administration and liquidation costs.

Sustainability and corporate responsibility

Sustainability and corporate responsibility is embedded in OP Pohjola 's business and strategy. The work on sustainability and corporate responsibility is guided by the updated sustainability programme which took effect at the beginning of 2026. It is based on three main themes: Climate and nature, People and communities and Corporate governance. The update to the programme included new, more precise metrics under each key theme. More information about the sustainability programme and its calculation principles is available at https://www.op.fi/en/op-financial-group/corporate-social-responsibility/corporate-social-responsibility-programme. 

OP Pohjola reports on its sustainability and corporate responsibility in accordance with the European Sustainability Reporting Standards (ESRS) under the EU 's Corporate Sustainability Reporting Directive (CSRD).

OP Pohjola 's sustainability report is prepared on a consolidated basis for the entire OP Pohjola, on the same grounds and restrictions as OP Pohjola 's Financial Statements. OP Pohjola consists of OP cooperative banks and the central cooperative (OP Cooperative), as well as a number of subsidiaries and affiliates. OP Mortgage Bank is a member credit institution, under the Act on the Amalgamation of Deposit Banks, which is permanently affiliated to a central cooperative as provided for in the Act. According to the Accounting Act 's rules on the scope of application of sustainability reporting, a member credit institution can determine that the rules in section 7 of the Act do not apply in its case. OP Mortgage Bank has decided that sustainability information regarding the company will be included in OP Pohjola 's sustainability report, and will not be reported separately.

OP Pohjola has published a transition plan that guides the implementation of the climate goals and the development of sustainable business in accordance with the Paris Agreement. The targets of the transition plan are part of the sustainability programme.

OP Mortgage Bank issued Finland 's first green covered bonds in March 2021 and in April 2022. Under OP Mortgage Bank 's Green Covered Bond Framework, proceeds from the bonds have been allocated to mortgages with energy-efficient residential buildings as collateral.

The annual Green Covered Bond report on the allocation and impact of green covered bonds is available in the debt investors section at op.fi: https://www.op.fi/en/op-financial-group/debt-investors/green-bonds/green-covered-bonds. The environmental impacts allocated to the green covered bonds in 2025 were 60,000 MWh of energy use avoided per year and 5,500 tonnes of CO2-equivalent emissions avoided per year.

Personnel

At the end of the reporting period, OP Mortgage Bank had five employees. OP Mortgage Bank has been digitising its operations and purchases all key support services from OP Cooperative and its subsidiaries, reducing the need for its own personnel.

Governing body members

The Board composition is as follows:

  
OP Mortgage Bank 's Managing Director is Sanna Eriksson. The Deputy Managing Director is Tuomas Ruotsalainen, Senior Covered Bonds Manager at OP Mortgage Bank.

Risk profile

OP Mortgage Bank has a strong capital base, capital buffers and risk-bearing capacity.

OP Mortgage Bank 's most significant risks are related to the quality of collateral and to structural liquidity and interest rate risks on the balance sheet, for which limits have been set in the Banking Risk Policy. The key credit risk indicators in use show that OP Mortgage Bank 's credit risk exposure is stable. OP Mortgage Bank uses interest rate swaps to hedge against its interest rate risk. Interest rate swaps have been used to swap intermediary loan interest and interest on issued bonds to the same interest-rate basis. OP Mortgage Bank has concluded all derivative contracts for hedging purposes, applying fair value hedges which have OP Corporate Bank plc as their counterparty. OP Mortgage Bank 's interest risk exposure is under control and has been within the set limit.

The liquidity buffer for OP Pohjola is centrally managed by OP Corporate Bank and therefore exploitable by OP Mortgage Bank. At the end of the reporting period, OP Pohjola 's Liquidity Coverage Ratio (LCR) was 192% and the Net Stable Funding Ratio (NSFR) was 132%. OP Mortgage Bank monitors its cash flows on a daily basis to secure funding liquidity and its structural funding risk on a regular basis as part of the company 's internal capital adequacy assessment process (ICAAP).

An analysis of OP Mortgage Bank 's risk exposure should always take account of OP Pohjola 's risk exposure, which is based on the joint and several liability of all its member credit institutions. The member credit institutions are jointly liable for each other 's debts. All member banks must participate in support measures, as referred to in the Act on the Amalgamation of Deposit Banks, to support each other 's capital adequacy.

OP Pohjola analyses the business environment as part of its ongoing risk assessment activities and strategy process.  At present, global factors identified as particularly shaping the business environment include geopolitics and trade policy, threats to corporate security, climate, biodiversity loss, and scientific and technological innovations. In addition to these, significant change drivers in Finland include the demographic and regional development and growing public debt. 

By taking account of the changes occurring in both customer understanding and the business environment, OP Pohjola can advise its customers, and by that promote their sustainable prosperity and security. This way, OP Pohjola can also manage its own risk profile in the long term.

OP Pohjola has extensive business operations in different areas of the financial sector. Changes in the business environment and unexpected shocks may have a range of impacts on the prosperity of OP Pohjola 's customers and on OP Pohjola 's premises, ICT infrastructure and personnel, and also on OP Pohjola 's risk profile, capitalisation and liquidity. OP Pohjola assesses the effects of transformative developments and of any shock events on continuity of operations by means of scenario work and by continuously preparing for such effects through action plans.

Decisions by the shareholder

Matters within the remit of OP Mortgage Bank 's AGM were decided in accordance with the shareholder 's (OP Cooperative) decision on 26 March 2026.

A shareholder 's decision confirmed the 2025 Financial Statements and the Board members and CEO were discharged from liability. A decision was made to distribute a total of EUR 3,846,450.24 in dividends, or EUR 50.22 per share. After dividend distribution, it was decided that the remaining amount of EUR 637.11 will be recognised under retained earnings/losses.

By decision of the shareholder, it was decided to elect three (3) members to the Board of Directors.  A decision was made to re-elect the following persons as members of the Board of Directors: Mikko Timonen (Chair), Mari Heikkilä and Satu Nurmi, whose term of office begins from this shareholder’s decision and ends at the end of the next Annual General Meeting or when an equivalent shareholder’s decision is made.

PricewaterhouseCoopers Oy, a firm of authorised public accountants, was elected as the auditor for the financial year 2026, with Heini Hänninen, Authorised Public Accountant, acting as the chief auditor, appointed by PricewaterhouseCoopers Oy.

The shareholder also decided to change the company 's business name to OP Asuntoluottopankki Oyj, in Swedish OP Bostadslånebanken Abp and in English OP Mortgage Bank plc. The change is planned to enter into force on 8 June 2026.

Outlook

The war in the Middle East overshadows the global economic outlook, weakens the growth of Finland 's economy and increases inflation. The escalation of geopolitical crises or a rise in trade barriers may affect capital markets and the economic environment of OP Pohjola and its customers.

A full-year earnings estimate for 2026 will only be provided for OP Pohjola, in OP Pohjola 's financial statements bulletin and in its interim and half-year financial reports.

OP Mortgage Bank 's capital adequacy is expected to remain strong and its risk exposure favourable. This enables issuance of new covered bonds.

Schedule for Interim Reports in 2026

Helsinki, 6 May 2026

OP Mortgage Bank
Board of Directors

For more information, please contact:
Sanna Eriksson, Managing Director, tel. +358 10 252 2517

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