Changes in OP Financial Group's structure

OP Financial Group's consolidated financial statements include the accounts of 178 member cooperative banks (181) including Group companies, OP Cooperative Consolidated and OVY Insurance Ltd. During the financial year, mergers of member cooperative banks reduced the number of member cooperative banks and the six former POP Group banks that joined OP Financial Group added to the number of member cooperative banks.

The Supervisory Board of OP Financial Group's central cooperative has made a decision in principle whereby Helsinki OP Bank Plc will be converted from a limited liability company to a cooperative bank during 2016. The new bank will be renamed Helsinki Area Cooperative Bank (Helsingin Seudun Osuuspankki) (OP Helsinki). This decision has made customer ownership within OP Financial Group possible across Finland.

According to plan, OP Helsinki will be part of OP Financial Group central cooperative consolidated as its subsidiary. Since the central cooperative will continue to play a major role in capitalising the new bank, the bank's bylaws are meant to be formulated in such a way that OP Financial Group has a controlling interest of 2/3 in the bank.

The abovementioned planned changes require regulatory approval from the relevant authorities.

Pohjola Bank plc will be renamed OP Corporate Bank plc in the spring of 2016. Omasairaala Oy will be renamed Pohjola Health Ltd in the summer of 2016 when the Tampere hospital unit is opened.

The process of planning and implementation regarding the legal structures of OP Financial Group's central cooperative consolidated is still underway. The Wealth Management segment was transferred from Pohjola Group to direct ownership of the central cooperative at the end of 2015. There is also a plan to transfer Non-life Insurance from Pohjola Group. The transfer of OP Financial Group's central banking operations, being presently part of Pohjola Bank plc, to another subsidiary wholly owned by OP Cooperative, is also under consideration. OP has not yet made decisions on the implementation method of the separation of central banking and the transfer of Non-life Insurance or the related schedule.

As part of internal restructuring, OP Cooperative purchased in June 2015 all OP Life Assurance Company Ltd and OP Card Company Plc shares held by member cooperative banks and Helsinki OP Bank Plc. As a result, the central cooperative consolidated holds all OP Life Assurance Company Ltd and OP Card Company Plc shares.

Aurum Investment Insurance Ltd merged into OP Life Assurance Company Ltd on 31 December 2015.

Suomi Mutual's individual pension insurance portfolio was transferred to OP Life Assurance Company Ltd on 31 December 2015, excluding non-life policy type personal insurance that was transferred to Pohjola Insurance Ltd. During the portfolio transfer, EUR 1.3 billion in assets and insurance liability measured at fair value transferred from Suomi Mutual. The portfolio transfer has no direct earnings effect on OP Financial Group.

Osuuspankki Poppia, Laihian Osuuspankki, Multian Osuuspankki, Petäjäveden Osuuspankki, Keiteleen Osuuspankki and Tuusniemen Osuuspankki, which were part of POP Group, decided in their Cooperative Meetings to join OP Financial Group as independent cooperative banks. Since 19 May 2015, these banks have officially been Group member cooperative banks and their customers have fallen within the scope of OP Financial Group's deposit insurance.

Sotkamon Osuuspankki merged into Kainuun Osuuspankki on 31 May 2015.

Itä-Uudenmaan Osuuspankki merged on 31 July 2015 into Porvoon Osuuspankki that was renamed Itä-Uudenmaan Osuuspankki.

Mynämäen Osuuspankki merged on 31 August 2015 into Nousiaisten Osuuspankki that was renamed Mynämäen-Nousiaisten Osuuspankki.

Hartolan Osuuspankki and Sysmän Osuuspankki merged on 31 August 2015 into Etelä-Päijänteen Osuuspankki that was renamed Järvi-Hämeen Osuuspankki.

Myrskylän Osuuspankki merged into Orimattilan Osuuspankki on 30 September 2015.

Karkun Osuuspankki merged into Tampereen Seudun Osuuspankki on 31 October 2015.

Pyhälaakson Osuuspankki merged into Suomenselän Osuuspankki on 31 December 2015.

Ylivieskan Osuuspankki merged into Kokkolan Osuuspankki on 31 December 2015.

Östra Korsholms Andelsbank and Vasa Andelsbank have accepted a merger plan, according to which the former will merge into the latter. The planned date for registration of the merger execution is 29 February 2016.

Keiteleen Osuuspankki and Pielaveden Osuuspankki have accepted a merger plan, according to which the former will merge into latter. The merged banks will be renamed Nilakan Seudun Osuuspankki.