Okobank Osuuspank.

1st Quarter Results - Part 1

Okobank Osuuspankkien Keskuspankki
4 May 2000

PART 1

                    OKOBANK Osuuspankkien Keskuspankki Oyj
                    Interim Report January 1 - March, 2000


- OKOBANK Consolidated reported operating profit for the January-March period of
EUR 37 million, a decrease of EUR 6 million on the figure a year earlier.  In
comparative terms, operating profit improved by more than EUR 10 million because
the operating profit a year earlier included a nearly EUR 17 million
non-recurring capital gain.

- The annualised return on equity was 20.8 per cent.  The return on equity in
the corresponding period last year was 26 per cent and the full-year figure for
1999 was 16.1 per cent.

- Earnings per share were EUR 0.56, as against EUR 0.68 a year earlier.

- The credit portfolio grew by 7.4 per cent to EUR 5.1 billion since the turn of
the year.  From the end of March 1999 the growth was 27 per cent.

- Deposits from the public amounted to EUR 1.5 billion at the end of March, an
increase of 4.6 per cent since the turn of the year and 16.9 per cent greater
than the figure a year earlier.

- Assets under management grew by 13 per cent since the turn of the year and
totalled EUR 4 billion at the end of March.  The amount of assets under
management was nearly 80 per cent larger than it was a year ago.

- Stockbroking amounted to EUR 6.4 billion, nearly four times the figure a year
earlier.


OKOBANK Group key figures

                                                 1-3        1-3      Long term
                                                2000       1999        targets

Operating profit, EUR million                   37,4       43,6
Income/expenses ratio                           1,96       2,35           1,80
Return on equity, annualised, %                 20,8       26,0           14,0
Return on assets, annualised, %                 0,95       1,46
Earnings per share, EUR                         0,56       0,68
           
                                           March 31,  March 31,
                                                2000       1999

Capital adequacy ratio, %                       11,5       15,9
Capital adequacy ratio by Tier I own funds, %    6,7        8,1            7,0
Total assets, EUR billion                       11,3        9,1
Credit stock, EUR billion                        5,1        4,0
Client funds (deposits and assets under
management), EUR billion                         5,5        3,6
Staff                                            990        943


OKOBANK Consolidated quarterly performance

Million euros                                        1999                2000
                                            1-3    4-6     7-9   10-12    1-3

Net income from financial operations         26     28      26      29     30
Commission income                            13     14      13      25     24
Net income from securities transactions
 and foreign exchange dealing                 6      1      -2       5      6
Other operating income                       25      9       6      10     11

Total Income                                 71     52      43      69     72

Commission expenses                           3      3       3       6      6
Administrative expenses                      18     20      18      21     20
Depreciation and write-downs on tangible
 and intangible assets                        3      3       3       7      3
Other operating expenses                      6      6       5       6      7

Total expenses                               30     33      29      39     37

Profit before loan losses                    41     19      14      29     35
Loan and guarantee losses                    -2      0       0       0     -2
Write-downs on securities held as 
 financial fixed assets                       0     -1       0       0      0
Share of profit/loss of companies
 included using the equity method             1      1       1       1      1

Operating profit                             44     21      15      31     37


Operating profit EUR 37 million

OKOBANK Consolidated's operating profit in January-March was EUR 37.4 million, a
decrease of EUR 6.2 million on the corresponding period a year earlier.  Since
the operating profit for the first quarter of 1999 included an EUR 16.6 million
non-recurring capital gain on the sale of Radiolinja Oy shares, the operating
profit in comparable terms improved by more than EUR 10 million.  The good
earnings trend was attributable mainly to the substantial growth in net income
from financial operations and commission income.

The income/expenses ratio in January-March was 1.96, compared with 2.35 during
the same period a year ago.  Earnings per share (EPS) were EUR 0.56, or EUR 0.12
less than in the first quarter of 1999.  The annualised return on equity (ROE)
was 20.8 per cent, as against 26 per cent in the corresponding period of last
year.

OKOBANK Consolidated's net income from financial operations in January-March was
EUR 30.4 million, up EUR 4.3 million and 16.7 per cent on the first quarter of
1999.  Net income from financial operations was improved by the growth in
lending and the slight upward trend in margins on corporate financing.  In
addition, interest expenses declined when OKOBANK exercised its right to make a
premature payment and redeemed towards the end of 1999 its two issues of
perpetual bonds in a total amount of USD 250 million.

Commission income amounted to EUR 23.9 million, an increase of EUR 10.6 million,
or 80 per cent, on the corresponding period last year.  The bulk of the growth
came from commission income on stockbroking.  This was also reflected in
commission expenses, which more than doubled on the January-March period a year
earlier.  More than 90 per cent of the EUR 3.5 million increase in commission
expenses was due to the costs of securities brokerage.

Commission income, million               1-3/00       1/3/99        Change
euros            

Lending                                     2.4          2.0           0.4
Payment transfers                           3.4          3.2           0.2
Securities brokerage                       13.1          3.9           9.2
Securities issuance                         0.6          0.8          -0.2
Asset management                            1.7          0.9           0.8
Other commission income                     2.7          2.5           0.2

Total                                      23.9         13.3          10.6


Net income from securities transactions and foreign exchange dealing totalled
EUR 6.2 million and was roughly on a par with the same period a year ago.

Net income from securities               1-3/00       1-3/99        Change
transactions and foreign
exchange dealing, million
euros

Net income from transactions in debt
securities                                 -1.0          1.4          -2.4

Net income from foreign
exchange dealing                            1.3          1.3           0.0

Net income from
transactions in shares                      5.9          3.6           2.3

Total                                       6.2          6.3          -0.1

Trading in debt securities resulted in a net loss of a million euros.  In
January-March of last year debt securities yielded income of EUR 1.4 million. 
The unstable interest rate market hampered trading in debt securities in the
first quarter.  Net income from foreign exchange dealing equalled the previous
year's figure.  Net income from transactions in shares and participations grew
from EUR 3.6 million last year to EUR 5.9 million.  Unbooked appreciation in the
value of listed shares amounted to EUR 12.1 million at the end of March.  At the
turn of the year unbooked appreciation totalled EUR 15 million.

Other operating income, consisting mainly of dividend and rental income as well
as capital gains on the sale of real-estate properties, were a total of EUR 2.3
million greater than the figure in the corresponding period a year ago,
adjusting for the non-recurring capital gain on the sale of shares.

OKOBANK Consolidated had total income in January-March of EUR 71.6 million, an
increase of EUR 0.6 million on the first quarter of 1999.

Administrative expenses were up EUR 1.3 million, or 7 per cent, on the previous
year.  Staff costs accounted for half of the total amount of EUR 19.5 million in
administrative expenses.  Staff costs increased by about 5 per cent.  OKOBANK
Consolidated had an average payroll of 968 employees in January-March, or 27
employees more than in the corresponding period a year earlier.

The EUR 1.7 million growth in the total amount of depreciation and other
operating expenses was due mainly to the depreciation and expenses of a new
company that was included in the consolidated annual accounts, the real-estate
company Kiinteisto Oy Kanta-Sarvis II, as well as to the EUR 0.7 million loss on
the sale of real-estate and shares in real-estate companies that was booked in
the January-March period.

The net effect on earnings of loan and guarantee losses was again positive, as
it was during the corresponding period in the previous year.

Total assets EUR 11.3 billion

Consolidated total assets at the end of March stood at EUR 11.3 billion.  Total
assets were EUR 0.5 billion greater than at the turn of the year and EUR 2.3
billion more than a year earlier.

Lending and investments

Brisk demand for loans continued in the January-March period.  Credits to the
public, including leased property, amounted to nearly EUR 5.1 billion at the end
of March.  This represented an increase since the turn of the year of EUR 350
million, or 7.4 per cent, and an increase of nearly 1.1 billion, or 27 per cent,
since the end of March 1999.  Loans to the public accounted for 45 per cent of
OKOBANK Consolidated's total assets at the end of March.  The corresponding
figure a year earlier was 44 per cent.

The amount of non-performing and zero-interest claims at the end of March was
EUR 16.2 million.  They increased by EUR 0.3 million since the turn of the year
but diminished by EUR 3.3 million since the end of March of last year.

Claims on credit institutions increased considerably.  Since the turn of the
year they grew by a billion euros and amounted to EUR 2.8 billion.  This was due
to the fact that at the end of March OKOBANK invested about EUR 0.9 billion of
liquid funds in the form of short-term deposits with domestic and foreign banks.
 The amount of loans granted to the OKOBANK Group member cooperative banks and
capital investments was EUR 1 249 million at the end of March.  The amount of
these claims grew by EUR 100 million from the turn of the year and by EUR 362
million, or 41 per cent, since the end of March 1999.

Debt securities accounted for more than a fifth of OKOBANK Consolidated's total
assets at the end of March.  Debt securities totalled EUR 2.4 billion.  The
amount of debt securities at the turn of the year was EUR 565 million greater
because at the end of the year OKOBANK prepared itself for the possibility of
liquidity problems at the turn of the year and increased the amount of its debt
securities.  The amount of banks' certificates of deposit at the end of March
was EUR 651 million, or EUR 937 million less than at the end of 1999.  The
amount of foreign bonds and notes was increased.  At the end of March they
totalled EUR 634 million, which was EUR 50 million more than at the turn of the
year and EUR 167 million more than a year earlier.

Deposits and other liabilities

The amount of deposits from the public was EUR 1 541 million at the end of
March.  Deposits increased by EUR 68 million, or 4.6 per cent, from the turn of
the year and by EUR 223 million, or 16.9 per cent from the end of March of last
year.  Deposits from the public accounted for 14 per cent of OKOBANK
Consolidated's liabilities.

The growth in lending was funded mainly on the money and capital markets.  The
amount of bonds and notes grew by EUR 349 million from the end of last year, to
EUR 850 million, and certificate of deposit liabilities increased by EUR 93
million, totalling nearly EUR 3 billion.  Liabilities to credit institutions and
central banks were EUR 3.6 billion, or roughly at the same level as at the turn
of the year.  The member cooperative banks' share of these liabilities was EUR
2.4 billion, or 68 per cent.

Off-balance sheet items

The amount of guarantees and other off-balance sheet commitments at the end of
March was nearly EUR 2 billion, or EUR 68 million less than at the turn of the
year but EUR 309 million greater than at the end of March of last year. 
Compared with the corresponding period a year earlier the biggest growth was in
unused standby facilities, EUR 197 million.  The amount of unused standby
facilities at the end of March was EUR 955 million.

The value of the underlying instruments of derivative contracts diminished
further during the first quarter.  The value of underlying instruments at the
end of March was slightly less than EUR 9.2 billion, which was EUR 0.9 billion
less than at the end of last year.  Most of the reduction was attributable to
forward rate agreements.  Since the end of March 1999, the value of the
underlying instruments of derivative contracts decreased by EUR 12.2 billion, or
57 per cent.  The credit countervalue of derivative contracts was EUR 151
million, or EUR 24 million less than at the end of 1999 and EUR 161 million less
than a year earlier.

Capital adequacy 11.5 per cent

OKOBANK Consolidated's capital adequacy ratio at the end of March was 11.5 per
cent, or 1.0 percentage point lower than at the turn of the year.

The capital adequacy ratio for Tier I own funds was 6.7 per cent, whereas it was
7.3 per cent at the end of last year.  The capital adequacy ratio was weakened
by the growth of EUR 540 million, or 8.8 per cent, in risk-weighted items since
the end of last year.  The net profit for the financial period has not been
included in Tier I own funds.


Million euros                       March 31,     March 31,       Dec. 31,
                                        2000          1999           1999

Own funds

Tier I                                   447           437             448
Tier II                                  355           437             355
Deductions                               -36           -36             -36
Tier III                                   -            13               -

Total                                    766           851             767

Risk-weighted
Receivables, Investments
and off-balance sheet
items                                  6 697         5 362           6 156

Capital adequacy ratio, %               11.5          15.9            12.5
                                       
Tier I funds/Risk-
weighted items, total, %                 6.7           8.1             7.3


Review of operations

Corporate banking

OKOBANK Consolidated's corporate banking is handled through the parent bank,
OKOBANK, OKO Mortgage Bank plc, OP-Finance Ltd and OKO-Venture Capital Ltd.  The
Corporate Banking division offers corporate customers financing and cash
management services as well as services connected with the money, capital and
foreign exchange markets.

The development of Internet bank services is the Corporate Banking division's
most important area for capital expenditures in 2000.  The strategy for
developing the corporate financing Internet bank services was announced in
March.  During the first quarter, guarantees were brought within the scope of
network services.

Operational result
                                   1-3/2000       1-3/2000            1999
                                   EUR million           %               %
Income/percentage of
consolidated income                     20.5           31               30

Operating profit/percentage of
consolidated operating
profit                                  13.3           36               31

Return on allocated
capital                                              12.6              8.5

Risk-weighted claims and
commitments/percentage of
consolidated risk-weighted
claims and commitments
(at the end of the period)             4 453           66               68

                                      Number            %                %
Staff/percentage of
consolidated staff (at the
end of the period)                       303           31               31


The Corporate Banking division reported operating profit of EUR 13.3 million in
the first part of the year, representing a significant increase in its share of
OKOBANK Consolidated's operating profit.

The division's income and its share of OKOBANK Consolidated's income showed
positive development thanks to the good trend in net income from lending and to
improved results in selling money market and capital market services compared
with last year.  The net effect of loan losses and reversals was again positive.

The amount of risk-weighted commitments grew by EUR 266 million from the
beginning of the year, an increase of more than 6 per cent.  The return on
allocated equity capital was 12.6 per cent, an improvement of 4 percentage
points. 

Financing services

Demand for financing services remained buoyant in January-March.  The aggregate
portfolio of loans and leasing contracts of OKOBANK, OKO Mortgage Bank and
OP-Finance was EUR 3 786 million at the end of March.  The figure represents
growth of 27 per cent from the end of March of the previous year and 7.5 per
cent from the end of 1999.  The 12-month growth in the portfolio of finance
company credits was 37 per cent and that of other credits 25 per cent.

Non-performing and other zero-interest credits amounted to EUR 6.2 million at
the end of March, representing 0.16 per cent of the credit portfolio.  The
amount at the end of 1999 was EUR 5.1 million, or 0.15 per cent of the credit
portfolio.

                                           Credit stock       3-month change
                                           EURO million                    %

March 31, 1999                                  2 984 
June 30, 1999                                   3 217                    7.8
September 30, 1999                              3 309                    2.9
December 31, 1999                               3 522                    6.4
March 31, 2000                                  3 786                    7.5

EUR 242 million in funds was obtained for customers through debt issues,
exceeding the amount of funds obtained all last year by 10 per cent.

Cash management services

The number of outgoing and incoming payment transactions handled in the
January-March period reached 19 million, up 14 per cent on the figure a year
ago.  Commissions obtained from payment transactions totalled EUR 3.4 million,
an increase of 6 per cent on the first quarter of 1999.

Money, capital market and foreign exchange services

First quarter volume of money market products, bonds and customer dealings
involving foreign exchange products totalled EUR 20.7 billion, up 13 per cent on
the previous year.

Investment banking

Opstock Ltd is responsible for OKOBANK Consolidated's investment banking
operations, which comprise asset management, stockbroking, investment research
and corporate finance.

Operational result
                                              1-3/2000     1-3/2000     1999
                                          EURO million            %        %

Income/percentage of
consolidated income                                7.0           11        8

Operating
profit/percentage of
consolidated operating
profit                                             4.7           13        8

Return on allocated
capital                                                       117.9     61.8

                                                Number            %        %

Staff/percentage of
consolidated staff (at the
end of the period)                                  99           10        9


Of OKOBANK Consolidated's business areas, investment banking showed the biggest
proportional increase in operating profit growth in the first quarter. Operating
profit was EUR 4.7 million, more than trebling on the operating profit generated
in January-March 1999.

Commission income received by Opstock amounted to more than EUR 13 million,
increasing by 160 per cent on the first quarter of last year.  Commission
expenses in turn more than trebled and were EUR 5.7 million.  The share of
OKOBANK Consolidated's income represented by investment banking operations,
adjusted for commission expenses, grew from 8 per cent to 11 per cent.

Owing to the growth in operations, expenses were up 40 per cent to EUR 2.4
million.

The annualised return on equity allocated to investment banking was 117.9 per
cent, which clearly exceeded the return for all of 1999.

Asset management

The amount of client assets under management by Opstock Asset Management was EUR
4 billion at the end of March.  The volume of client assets continued its fast
growth and was 13 per cent more than at the end of 1999 and nearly 80 per cent
greater than a year ago.  The increase was due mainly to the growth in capital
invested in the OKOBANK Group's mutual funds.  During the report period four new
mutual funds started up, the three newest of which are sectoral funds.

                                              Clients'              3-month
                                          funds under                change
                                           management                     %
                                          EUR billion

March 31, 1999                                 2 244
June 30, 1999                                  2 523                  12.4
September 30, 1999                             2 605                   3.2
December 31, 1999                              3 539                  35.9
March 31, 2000                                 3 995                  12.9

Stockbroking

Equities brokerage on Helsinki Exchanges remained very brisk in January-March.
The volume of brokerage during the report period was EUR 67 billion, which was
more than three times the figure registered in January-March of 1999.  Opstock's
market share was 4.8 per cent, compared with 4.2 per cent a year ago.

Of share brokerage orders, more than 50 per cent came in over the Internet in
January-March.  In 1999 the share of orders placed over the Internet was 29 per
cent.

                         Shares brokered          3-month
                         EUR billion              change %
1-3/1999                    1 740                    
4-6/1999                    3 260                    87.4
7-9/1999                    4 965                    52.3
10-12/1999                  8 863                    78.5
1-3/2000                    6 411                   -27.7

In order to keep the strong growth in operations well under control, Opstock has
continued its programme of improving the functionality of systems and processes
that was started last year.

Retail banking

The OKOBANK Group's retail banking operations are handled by Okopankki Oyj,
whose service palette comprises comprehensive banking services for retail
customers as well as small and medium-sized corporate customers in the Greater
Helsinki area.

Operational result

                                   1-3/2000          1-3/2000            1999 
                                   EUR million              %               %
Income/percentage of
consolidated income                       16.3            25               24

Operating profit/                       
percentage of consolidated
operating profit                           7.3            19               18

Return on allocated                                
capital                                                 31.8             22.5   
              
Risk-weighted claims and                  
commitments/percentage
of consolidated risk-
weighted claims and
commitments (at the end
of the period)                             944            14               15

                                        Number             %                %
Staff/percentage of
consolidated staff                     
(at the end of the period)                 454            46               47

Operating profit from retail banking showed positive development in the first
quarter and was EUR 7.3 million, representing 19 per cent of OKOBANK
Consolidated's operating profit.

Income amounted to EUR 16.3 million and its share of OKOBANK Consolidated's
total income rose slightly.  Two thirds of the income came from net income from
financial operations and one third from commission income.  Half of the growth
in income came from the increase in net income from financial operations and
half from commission income.  Net income from financial operations was improved
by the growth in lending as well as by the higher interest spread between
lending and deposits.  Commission income was increased, above all, by the
continued brisk activity within securities brokerage.

Operating expenses increased by 9 per cent compared with the January-March
period last year.  The increase in the number of staff that was caused by the
expansion of operations raised staff costs, and the growth in volumes led to
higher data processing costs.  The amount of credit losses was EUR 0.1 million.

The annualised return on equity allocated to retail banking improved
significantly and was 32 per cent in January-March.  In 1999 it was 22.5 per
cent.

Customers

The number of Okopankki's customers grew further in the first quarter of the
year.  The number of customers in the January-March period increased by 1.6 per
cent.  The total number of customers at the end of March was 243 400, an
increase of more than 7 per cent on the figure a year earlier.  The number of
electronic bank service contracts with Okopankki's customers increased by 11 per
cent to more than 80 000 in January-March, and the number of GSM contracts,
included in them, rose by 18 per cent to 24 000.

Lending

As in the previous year, the trend in lending was positive.  EUR 139 million in
new loans was raised during the first quarter, an increase of 26 per cent on the
corresponding period in 1999.  The credit portfolio at the end of March was EUR
1 261 million, up 3.5 per cent since the end of 1999 and 25 per cent since the
end of March of last year.  The fall in margins on new loans, which continued
throughout last year, appears to have come to a halt.

                                         Credit stock          3-month change 
                                          EUR million                       %

March 31, 1999                                  1 008               
June 30, 1999                                   1 072                    6.3
September 30, 1999                              1 134                    5.8
December 31, 1999                               1 218                    7.4
March 31, 2000                                  1 261                    3.5

Non-performing and other zero-interest loans amounted to EUR 5.2 million at the
end of March, representing 0.4 per cent of the credit portfolio.  The relative
proportion was at the same level as at the end of 1999.

Deposits and asset management

Total deposits at the end of March stood at EUR 1 175 million, or roughly at the
same level as at the end of 1999 but 17 per cent greater than at the same time a
year earlier.  The aggregate amount of deposits as well as brokered mutual fund
investments and life assurance policies - which in the table below are referred
to as retail banking customer funds - was 7 per cent greater at the end of March
than it was at the end of 1999 and a fifth larger than at the end of March of
last year.  During the first months of the year already more than 50 per cent of
investment-related transactions was handled via the bank's Internet investment
services, which were overhauled last autumn.

                                   Clients' funds in          3-month change
                                      retail banking                       %
                                         EUR million

March 31, 1999                                 1 107
June 30, 1999                                  1 160                    4.8
September 30, 1999                             1 208                    4.1
December 31, 1999                              1 300                    7.6
March 31, 2000                                 1 385                    6.5

Group Treasury

Group Treasury is responsible for OKOBANK's central financial institution tasks,
OKOBANK Consolidated's long-term funding as well as fixed income and equity
investments.

Operational result
                                      1-3/2000        1-3/2000          1999
                                   EUR million               %             %
Income/percentage of            
consolidated income                       18.2              27            23

Operating profit/percentage      
of consolidated operating
profit                                    14.8              39            33
  
Return on allocated capital                               46.6          30.9

Risk-weighted claims and      
commitments/percentage of
consolidated risk-weighted
claims and commitments (at
the end of the period)                   1 389              20            20

                                        Number               %             %
Staff/percentage of
consolidated staff (at the
end of the period)                          98              10            10


Central banking operations
                                        3/2000          3/1999       12/1999
                                   EUR million     EUR million   EUR million
Capital investments to and            
perpetual bonds of the
member banks                               236             256           226

Other credits to the 
member banks                             1 060             678           960

Member banks' minimum   
reserve and cash
reserve deposits                         1 743           1 695         1 738

Member banks' other        
deposits                                   694             709           691

OKOBANK's net liabilities to the member cooperative banks totalled EUR 1 141 
million at the end of March.  The figure diminished by EUR 102 million from the
end of 1999 and by EUR 329 million from the corresponding period in the previous
year.  The aggregate amount of credits granted to the member cooperative banks,
capital investments and perpetual bonds grew by EUR 100 million from the turn of
the year, or by more than 8 per cent.  The amount of these claims at the end of
March was EUR 1 297 million.  The amount of the cooperative banks' deposits,
however, remained at nearly the previous level.

Funding and investments

Investments in foreign bonds were increased by EUR 50 million from the end of
1999, to EUR 634 million.  The amount of such investments was 9 per cent greater
than at the end of 1999 and 36 per cent greater than a year ago.

Major changes did not take place in the structure of funding in the
January-March period.  Long-term foreign funding was increased by EUR 300
million in the first part of the year.

Sales of shares and appreciation in share values resulted in a credit to income
in January-March of EUR 6.2 million.  In the corresponding quarter of last year
this income amounted to EUR 3.5 million.  At the end of March unbooked
appreciation in share values amounted to EUR 12.1 million.  EUR 2 million in
dividends was credited to income in the January-March period.

Other operations

The result for other operations includes the earnings generated by the property
business as well as the associated companies Aurum Life Assurance Company and
OP-Kotipankki Oyj together with the income and expenses arising from
consolidated administration functions.

Operational result
                              1-3/2000          1-3/2000  %        1999  %
                              EUR million         
Income/percentage of 
consolidated income               4.0               6               15

Operating profit/percentage
of consolidated operating
profit                           -2.6                               10

                              Number                %               %
Staff/percentage of 
consolidated staff             36                   4               4

Income from other operations in January-March was EUR 4.2 million.  The share
which this income represented in OKOBANK Consolidated's total income fell to 6
per cent, from the previous year's 15 per cent.  In the previous year this
income item included an EUR 16.6 million non-recurring capital gain on the sale
of shares.  Owing to the small amount of income, the operating result was EUR
2.6 million negative.


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