OP Mortgage Bank

Annual Financial Report






OP Mortgage Bank
Financial Statements Bulletin for 2010
9 February 2011, 9.00 am Finnish time (GMT+2)

FINANCIAL STATEMENTS BULLETIN FOR 2010

OP Mortgage Bank's (OPA) loan portfolio grew to EUR 5,008 million in the
January-December period (EUR 4,360 million at the end of 2009)[1].  The bank
increased its loan portfolio significantly in May and in October when it
purchased housing loans from OP-Pohjola Group member cooperative banks. OPA
launched a covered bond issue at a nominal valued of  EUR 1,000 million in June.
The covered bond, issued in 2008 at a nominal value of  EUR 1,000 million,
matured and were paid off in June.

Earnings Development

+-------------------------------+---------+---------+--------+--------+
| EUR thousand                  | Q4/2010 | Q4/2009 |   2010 |   2009 |
+-------------------------------+---------+---------+--------+--------+
|                               |         |         |        |        |
+-------------------------------+---------+---------+--------+--------+
| Income                        |         |         |        |        |
+-------------------------------+---------+---------+--------+--------+
| Net interest income           |   4,577 |   4,675 | 16,350 | 14,030 |
+-------------------------------+---------+---------+--------+--------+
| Net commissions and fees      |  -2,055 |  -2,127 | -8,450 | -7,970 |
+-------------------------------+---------+---------+--------+--------+
| Net income from trading       |       0 |      -4 |     -1 |      0 |
+-------------------------------+---------+---------+--------+--------+
| Net income from investments   |       1 |       0 |      2 |      1 |
+-------------------------------+---------+---------+--------+--------+
| Other operating income        |      11 |       0 |     19 |     26 |
+-------------------------------+---------+---------+--------+--------+
| Total                         |   2,534 |   2,544 |  7,920 |  6,086 |
+-------------------------------+---------+---------+--------+--------+
|                               |         |         |        |        |
+-------------------------------+---------+---------+--------+--------+
| Expenses                      |         |         |        |        |
+-------------------------------+---------+---------+--------+--------+
| Personnel costs               |      65 |     152 |    288 |    297 |
+-------------------------------+---------+---------+--------+--------+
| Other administrative expenses |     374 |     376 |  1,396 |    983 |
+-------------------------------+---------+---------+--------+--------+
| Other operating expenses      |     424 |     214 |  1,398 |    864 |
+-------------------------------+---------+---------+--------+--------+
| Total                         |     864 |     743 |  3,082 |  2,145 |
+-------------------------------+---------+---------+--------+--------+
|                               |         |         |        |        |
+-------------------------------+---------+---------+--------+--------+
| Earnings before tax           |   1,670 |   1,801 |  4,839 |  3,941 |
+-------------------------------+---------+---------+--------+--------+

Earnings before tax for October-December amounted to EUR 1,670  thousand
(1,801). The net interest income decreased to EUR 4,577 thousand (4,675). Net
commissions and fees were negative, as in the previous year, with commission
income increasing to EUR 720 thousand (596) and commission expenses to EUR
 2,775 thousand (2,723).  Commission expenses stem mainly from commissions paid
to OP-Pohjola Group member banks for servicing housing loans. The bank's
expenses amounted to EUR 864 thousand (743).

Earnings before tax for January-December amounted to EUR 4,839 thousand (3,941).
Net interest income rose to EUR 16,350 thousand (14,030) due to the growth of
the loan portfolio.
The bank's expenses increased to EUR 3,082 thousand (2,145). Growth in expenses
derived largely from the ICT-services and the professional services purchased in
connection with the new covered note programme. OPA did not recognise any loan
losses in 2010.

Balance Sheet and Off-balance Sheet Commitments

OPA's balance sheet total amounted to EUR 5,191 million on 31 December (EUR
4,555 million).

Change in Major Asset and Liability Items

+-------------------+-----------+----------+-----------+-----------+-----------+
|                   |           |    30 Sep|  30 June  | 31 March  |           |
|EUR Million        |31 Dec 2010|      2010|   2010    |   2010    |31 Dec 2009|
+-------------------+-----------+----------+-----------+-----------+-----------+
|                   |           |          |           |           |           |
+-------------------+-----------+----------+-----------+-----------+-----------+
|Balance Sheet      |   5,191   |  4,418   |   4,624   |   4,450   |   4,555   |
+-------------------+-----------+----------+-----------+-----------+-----------+
|Receivables from   |   5,008   |  4,213   |   4,398   |   4,203   |   4,360   |
|customers          |           |          |           |           |           |
+-------------------+-----------+----------+-----------+-----------+-----------+
|Receivables from   |           |          |           |           |           |
|financial          |    62     |    48    |    89     |    56     |    55     |
|institutions       |           |          |           |           |           |
+-------------------+-----------+----------+-----------+-----------+-----------+
|Debt securities    |           |          |           |           |           |
|issued to the      |   3,287   |  3,330   |   3,332   |   3,336   |   3,311   |
|public             |           |          |           |           |           |
+-------------------+-----------+----------+-----------+-----------+-----------+
|Liabilities to     |           |          |           |           |           |
|financial          |   1,640   |   840    |   1,070   |    840    |   1,000   |
|institutions       |           |          |           |           |           |
+-------------------+-----------+----------+-----------+-----------+-----------+
|Shareholders'      |    159    |   143    |    142    |    141    |    140    |
|equity             |           |          |           |           |           |
+-------------------+-----------+----------+-----------+-----------+-----------+
|Off-balance sheet  |     7     |    9     |    10     |    12     |    15     |
|commitments        |           |          |           |           |           |
+-------------------+-----------+----------+-----------+-----------+-----------+

The bank's loan portfolio grew to EUR 5,008 million (4,360)[2]. OPA increased
its loan portfolio in the January-December period when it purchased housing
loans from OP-Pohjola-Group member banks for EUR 1,411 million.

On December 2010, households accounted for 99 per cent (99) of the loan
portfolio and housing corporations for 1 per cent (1). The bank's non-performing
loans increased but remained at low levels totalling EUR 1,4 million (0,8) on
December 2010. No impairment losses on loans were recognised.

The carrying amount of the bonds issued to the public totalled EUR 3,287 million
(3,311) on 31 December.  OPA issued its fourth covered bond at a nominal value
of EUR 1,000 million on international capital markets in June. Moody's Investor
Services and Standard & Poor's Rating Services have given the bond their highest
credit ratings of Aaa and AAA. The covered bond, issued in 2008 at a nominal
value of EUR 1,000 million, matured and were paid off in June. In addition to
bonds, OPA funded its operations through financing loans taken out with Pohjola
Bank plc. On 31 December, financing loans totalled EUR 1,640 million (1,000).

Shareholders' equity increased to EUR 159 million (140). Shareholders' equity
increased by EUR 15 million after OP-Pohjola Group Central Cooperative made an
additional investment in the company in October.  Retained earnings amounted to
EUR 13,8 million (10,2) on 31 December.

OPA has hedged against the interest-rate risk associated with its housing loan
portfolio through interest-rate swaps, i.e. base rate cash flows from housing
loans to be hedged are swapped to short-term Euribor cash flows. OPA has also
swapped the fixed interest rates of the bonds it has issued to short-term
variable rates. OPA's interest-rate derivative portfolio totalled EUR 9,622
million (7,832). All derivative contracts have been concluded for hedging
purposes. Pohjola Bank plc is the counterparty to all derivative contracts.

Development of Capital Adequacy

OPA's capital adequacy ratio stood at 9,7 % on 31 December. Shareholder's equity
increased by EUR 15 million in October when OP-Pohjola Group Central Cooperative
made an additional investment in OPA.  OPA calculates its capital adequacy in
compliance with Basel II. The capital requirement for credit risk is calculated
using the Standardised Approach. With respect to the capital adequacy
requirement for operational risks, OPA adopted the Standardised Approach in the
report period.

+-------------------+---------+---------+------------+-------------+-----------+
|OWN FUNDS, EUR     |   31 Dec|   30 Sep|            |             |           |
|thousand           |     2010|     2010|30 June 2010|31 March 2010|31 Dec 2009|
+-------------------+---------+---------+------------+-------------+-----------+
|Tier I             |  157,669|  141,513|     140,764|      140,057|    139,067|
+-------------------+---------+---------+------------+-------------+-----------+
|     of which      |         |         |            |             |           |
|capital loans      |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|Tier II            |   20,000|   20,000|      20,000|       20,000|     20,000|
+-------------------+---------+---------+------------+-------------+-----------+
|Decreases          |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|Total              |  177,669|  161,513|     160,764|      160,057|    159,067|
+-------------------+---------+---------+------------+-------------+-----------+
|                   |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|Risk-weighted      |         |         |            |             |           |
|receivables,       |         |         |            |             |           |
|investments and    |         |         |            |             |           |
|off-balance sheet  |         |         |            |             |           |
|commitments        |1,836,279|1,556,949|   1,627,208|    1,562,989|  1,622,243|
+-------------------+---------+---------+------------+-------------+-----------+
|                   |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|Capital adequacy   |         |         |            |             |           |
|ratio, %           |      9.7|     10.4|         9.9|         10.2|        9.8|
+-------------------+---------+---------+------------+-------------+-----------+
|                   |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|Tier I ratio to    |         |         |            |             |           |
|risk-weighted      |         |         |            |             |           |
|receivables,       |         |         |            |             |           |
|investments and    |         |         |            |             |           |
|off-balance sheet  |         |         |            |             |           |
|commitments        |      8.6|      9.1|         8.7|          9.0|        8.6|
+-------------------+---------+---------+------------+-------------+-----------+


The increase in shareholders' equity arising from the measurement of pension
liabilities and the assets covering them, under IFRS, is not considered own
funds. Furthermore, intangible assets was also deducted from own funds.

+------------------+---------+---------+------------+--------------+-----------+
|Risk-weighted     |         |         |            |              |           |
|receivables,      |         |         |            |              |           |
|investments and   |         |         |            |              |           |
|off balance-sheet |         |         |            |              |           |
|commitments,  EUR |   31 Dec|   30 Sep|            |              |           |
|thousand          |     2010|     2010|30 June 2010| 31 March 2010|31 Dec 2009|
+------------------+---------+---------+------------+--------------+-----------+
|                  |         |         |            |              |           |
+------------------+---------+---------+------------+--------------+-----------+
| Receivables and  |1,824,798|1,543,476|   1,613,851|     1,548,950|  1,610,079|
|investments       |         |         |            |              |           |
+------------------+---------+---------+------------+--------------+-----------+
|  Off-balance-    |    2,748|    2,621|       2,505|         3,187|      4,039|
|sheet items       |         |         |            |              |           |
+------------------+---------+---------+------------+--------------+-----------+
| Market risk      |        -|        -|           -|             -|          -|
+------------------+---------+---------+------------+--------------+-----------+
| Operational risks|    8,733|   10,852|      10,852|        10,852|      8,125|
+------------------+---------+---------+------------+--------------+-----------+
|Risk-weighted     |         |         |            |              |           |
|receivables,      |         |         |            |              |           |
|investments and   |1,836,279|1,556,949|   1,627,208|     1,562,989|  1,622,243|
|off balance-sheet |         |         |            |              |           |
|commitments, total|         |         |            |              |           |
+------------------+---------+---------+------------+--------------+-----------+

The increase in the amount of risk-weighted receivables was due to an increased
loan portfolio.

Joint Responsibility and Joint Security

Under the Act on Cooperative Banks and Other Cooperative Credit Institutions,
the amalgamation of the cooperative banks comprises the organisation's central
institution (OP-Pohjola Group Central Cooperative), the Central Cooperative's
member credit institutions and the companies belonging to their consolidation
groups. This amalgamation is supervised on a consolidated basis. The Central
Cooperative and its member banks are ultimately responsible for each other's
liabilities and commitments. The Central Cooperative's members at the end of the
report period comprised OP-Pohjola  Group's 213 member banks as well as Pohjola
Bank plc, Helsinki OP Bank Plc,  OP Mortgage Bank and OP-Kotipankki Plc. OP-
Pohjola Group's insurance companies do not fall within the scope of joint
responsibility.

The central institution is obligated to provide its member credit institutions
with instructions on their internal supervision and risk management, their
operations in securing liquidity and capital adequacy, and compliance with
uniform accounting principles in preparing the coalition's consolidated
financial statements.

The central institution and its member credit institutions are jointly
responsible for the liabilities of the central institution or a member credit
institution placed in liquidation or bankruptcy that cannot be paid from its
assets. The liability is divided between the central institution and the member
credit institutions in ratios following the balance sheet total.

Inspite of the joint responsibility and the joint security, pursuant to Section
25 of the Act on Mortgage Credit Bank Operations, the holder of a bond with
mortgage collateral shall, notwithstanding the liquidation or bankruptcy of a
mortgage credit bank, have the right to receive payment, before other claims,
for the entire loan period of the bond, in accordance with the contract terms,
from the funds entered as collateral for the bond.

Personnel

On 31 December, OPA had five employees. It purchases all key support services
from Central Cooperative and its Group companies, which reduces the need for
more staff.

Administration

The General Meeting held in August confirmed the composition of the new Board of
Directors. Mr. Harri Luhtala, Chief Financial Officer, OP-Pohjola Group Central
Cooperative was elected as a new member of the Board of Directors and Mr. Harri
Nummela was left out of the Board of Directors. The Board composition is as
follows:

Chairman   Harri Luhtala  Chief Financial Officer, OP-Pohjola      Group Central
Cooperative
Vice Chairman   Mikko Hyttinen   Senior Vice President, OP-Pohjola Group
       Central Cooperative
Members   Sakari Haapakoski   Bank Manager, Oulun Osuuspankki
   Jari Himanen   Managing Director, Etelä-Karjalan        Osuuspankki
Hanno Hirvinen   Executive Vice President, Pohjola Bank plc
                        Heikki Kananen                        Managing Director,
Mäntsälän Osuuspankki
                        Matti Nykänen              Senior Vice President, OP-
Pohjola Group                                                         Central
Cooperative
Mikko Rosenlund   Managing Director, Tampereen Seudun     Osuuspankki

Managing Director       Lauri Iloniemi.

Outlook

The existing issuance programme will make it possible to issue new covered bonds
in 2011.    The overall quality of the credit portfolio is expected to remain
strong.

Income Statement

+-------------------------------+---------+---------+--------+--------+
| EUR thousand                  | Q4/2010 | Q4/2009 |   2010 |   2009 |
+-------------------------------+---------+---------+--------+--------+
|                               |         |         |        |        |
+-------------------------------+---------+---------+--------+--------+
| Interest income               |  19,407 |  14,005 | 63,314 | 68,928 |
+-------------------------------+---------+---------+--------+--------+
| Interest expenses             |  14,829 |   9,330 | 46,963 | 54,899 |
+-------------------------------+---------+---------+--------+--------+
| Net interest income           |   4,577 |   4,675 | 16,350 | 14,030 |
+-------------------------------+---------+---------+--------+--------+
| Net commissions and fees      |  -2,055 |  -2,127 | -8,450 | -7,970 |
+-------------------------------+---------+---------+--------+--------+
| Net income from trading       |       0 |      -4 |     -1 |      0 |
+-------------------------------+---------+---------+--------+--------+
| Net income from investments   |       1 |       0 |      2 |      1 |
+-------------------------------+---------+---------+--------+--------+
| Other operating income        |      11 |       0 |     19 |     26 |
+-------------------------------+---------+---------+--------+--------+
| Personnel costs               |      65 |     152 |    288 |    297 |
+-------------------------------+---------+---------+--------+--------+
| Other administrative expenses |     374 |     375 |  1,396 |    983 |
+-------------------------------+---------+---------+--------+--------+
| Other operative expenses      |     424 |     214 |  1,398 |    864 |
+-------------------------------+---------+---------+--------+--------+
| Earnings before tax           |   1,670 |   1,801 |  4,839 |  3,941 |
+-------------------------------+---------+---------+--------+--------+
| Income taxes                  |     505 |     469 |  1,264 |  1,017 |
+-------------------------------+---------+---------+--------+--------+
| Profit for the period         |   1,164 |   1,333 |  3,574 |  2,924 |
+-------------------------------+---------+---------+--------+--------+

Key Ratios

+---------------------------+---------+---------+------+------+
|                           | Q4/2010 | Q4/2009 | 2010 | 2009 |
+---------------------------+---------+---------+------+------+
| Return on equity (ROE), % |     3.1 |     4.7 |  2.4 |  2.6 |
+---------------------------+---------+---------+------+------+
| Cost/income ratio, %      |      34 |      29 |   39 |   35 |
+---------------------------+---------+---------+------+------+

Calculation of key ratios

Return on equity, % = Annualised profit for the period / Equity capital (average
equity capital at the beginning and end of the period) × 100

Cost/income ratio, % = Personnel costs + Other administrative expenses + Other
operating expenses / Net interest income + Net commission income + Net income
from trading + Total net income from investments + Other operating income × 100

Balance Sheet

+-------------------+---------+---------+------------+-------------+-----------+
|                   |   30 Dec|   30 Sep|            |             |           |
|EUR thousand       |     2010|     2010|30 June 2010|31 March 2010|31 Dec 2009|
+-------------------+---------+---------+------------+-------------+-----------+
|                   |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|Receivables from   |         |         |            |             |           |
|financial          |         |         |            |             |           |
|institutions       |   61,673|   48,373|      88,815|       56,093|     55,017|
+-------------------+---------+---------+------------+-------------+-----------+
|Derivative         |         |         |            |             |           |
|contracts          |   71,255|   95,897|     103,945|       94,378|     75,934|
+-------------------+---------+---------+------------+-------------+-----------+
|Receivables from   |         |         |            |             |           |
|customers          |5,008,381|4,212,596|   4,398,089|    4,202,733|  4,360,036|
+-------------------+---------+---------+------------+-------------+-----------+
|Investments assets |       17|       17|          17|           17|         17|
+-------------------+---------+---------+------------+-------------+-----------+
|Intangible assets  |      914|      954|         942|          886|        942|
+-------------------+---------+---------+------------+-------------+-----------+
|Tangible assets    |        3|        4|           4|            5|          5|
+-------------------+---------+---------+------------+-------------+-----------+
|Other assets       |   48,790|   59,985|      32,441|       95,524|     63,177|
+-------------------+---------+---------+------------+-------------+-----------+
|Tax receivables    |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|Total assets       |5,191,034|4,417,826|   4,624,252|    4,449,634|  4,555,128|
+-------------------+---------+---------+------------+-------------+-----------+
|                   |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|Liabilities to     |         |         |            |             |           |
|financial          |         |         |            |             |           |
|institutions       |1,640,000|  840,000|   1,070,000|      840,000|  1,000,000|
+-------------------+---------+---------+------------+-------------+-----------+
|Derivative         |         |         |            |             |           |
|contracts          |   21,835|    5,417|      12,012|        5,756|     11,971|
+-------------------+---------+---------+------------+-------------+-----------+
|Debt securities    |         |         |            |             |           |
|issued to the      |         |         |            |             |           |
|public             |3,286,747|3,329,640|   3,331,736|    3,336,060|  3,310,811|
+-------------------+---------+---------+------------+-------------+-----------+
|Reserves and other |         |         |            |             |           |
|liabilities        |   63,513|   80,000|      48,390|      106,233|     71,727|
+-------------------+---------+---------+------------+-------------+-----------+
|Tax liabilities    |      140|      135|         219|          450|        395|
+-------------------+---------+---------+------------+-------------+-----------+
|Subordinated debt  |         |         |            |             |           |
|securities         |   20,000|   20,000|      20,000|       20,000|     20,000|
+-------------------+---------+---------+------------+-------------+-----------+
|Total liabilities  |5,032,235|4,275,192|   4,482,356|    4,308,500|  4,414,904|
+-------------------+---------+---------+------------+-------------+-----------+
|Shareholders'      |         |         |            |             |           |
|equity             |         |         |            |             |           |
+-------------------+---------+---------+------------+-------------+-----------+
|  Share capital    |   60,000|   60,000|      60,000|       60,000|     60,000|
+-------------------+---------+---------+------------+-------------+-----------+
|  Reserve for      |         |         |            |             |           |
|invested           |         |         |            |             |           |
|unrestricted       |         |         |            |             |           |
|       . equity    |   85,000|   70,000|      70,000|       70,000|     70,000|
+-------------------+---------+---------+------------+-------------+-----------+
|  Retained earnings|   13,799|   12,635|      11,896|       11,135|     10,224|
+-------------------+---------+---------+------------+-------------+-----------+
|Total equity       |  158,799|  142,635|     141,896|      141,135|    140,224|
+-------------------+---------+---------+------------+-------------+-----------+
|Total liabilities  |         |         |            |             |           |
|and shareholders'  |         |         |            |             |           |
|equity             |5,191,034|4,417,826|   4,624,252|    4,449,634|  4,555,128|
+-------------------+---------+---------+------------+-------------+-----------+

Off-balance Sheet Commitments
+-------------------------+------+------+------------+-------------+-----------+
|                         |30 Dec|30 Sep|            |             |           |
|EUR thousand             |  2010|  2010|30 June 2010|31 March 2010|31 Dec 2009|
+-------------------------+------+------+------------+-------------+-----------+
|Binding credit           |      |      |            |             |           |
|commitments              | 7,456| 8,820|       9,939|       12,245|     15,108|
+-------------------------+------+------+------------+-------------+-----------+

Change Calculation on Shareholders' Equity

+--------------------+-------------+--------------+---------------+------------+
|                    |             |              |       Retained|            |
|EUR thousand        |Share capital|Other reserves|       earnings|Total equity|
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity|             |              |               |            |
|1 Jan 2009          |       60,000|        20,000|          7,317|      87,317|
+--------------------+-------------+--------------+---------------+------------+
|Reserve for invested|             |              |               |            |
|unrestricted        |             |              |               |            |
|     equity         |             |        50,000|               |      50,000|
+--------------------+-------------+--------------+---------------+------------+
|Profit for the      |             |              |               |            |
|period              |             |              |          2,924|       2,924|
+--------------------+-------------+--------------+---------------+------------+
|Other changes       |             |              |            -18|         -18|
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity|             |              |               |            |
|31 Dec 2009         |       60,000|        70,000|         10,224|     140,224|
+--------------------+-------------+--------------+---------------+------------+
|                    |             |              |               |            |
+--------------------+-------------+--------------+---------------+------------+
|                    |             |              |       Retained|            |
|EUR thousand        |Share capital|Other reserves|       earnings|Total equity|
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity|             |              |               |            |
|1 Jan 2010          |       60,000|        70,000|         10,224|     140,224|
+--------------------+-------------+--------------+---------------+------------+
|Reserve for invested|             |              |               |            |
|unrestricted        |             |              |               |            |
|     equity         |             |        15,000|               |      15,000|
+--------------------+-------------+--------------+---------------+------------+
|Profit for the      |             |              |               |            |
|period              |             |              |          3,574|       3,574|
+--------------------+-------------+--------------+---------------+------------+
|Other changes       |             |              |               |           0|
+--------------------+-------------+--------------+---------------+------------+
|Shareholders' equity|             |              |               |            |
|31 Dec 2010         |       60,000|        85,000|         13,799|     158,799|
+--------------------+-------------+--------------+---------------+------------+

Cash Flow Statement

+----------------------------+--------+------------+
| EUR thousand               |   2010 |       2009 |
+----------------------------+--------+------------+
|                            |        |            |
+----------------------------+--------+------------+
| Liquid assets 1 January    | 41,128 |     18,379 |
+----------------------------+--------+------------+
| Cash flow from operations  | 10,597 | -1,256,212 |
+----------------------------+--------+------------+
| Cash flow from investments |   -246 |       -440 |
+----------------------------+--------+------------+
| Cash flow from financing   | 10,193 |  1,279,401 |
+----------------------------+--------+------------+
| Liquid assets 31 December  | 61,672 |     41,128 |
+----------------------------+--------+------------+

The cash flow statement presents the cash flows for the period on the cash
basis, divided into cash flows from operations, investments and financing. Cash
flows from operations includes the cash flows generated from day-to-day
operations. Cash flow from investments includes payments related to tangible and
intangible assets, investments held to maturity and shares that are not
considered as belonging to cash flow from operations. Cash flow from financing
includes cash flows originating in the financing of operations either on equity
or liability terms from money or capital market. Liquid assets include cash in
hand and receivables from financial institutions payable on demand.  The
statement has been prepared using the indirect method.

+---------------------------------------------------+----------------+---------+
|Fair values of financial assets and liabilities    |                |         |
+-----------------+-----------------+---------------+----------------+---------+
|                 |                 |  Recognised at|                |         |
|                 |                 |     fair value|                |         |
|                 |        Loans and| through profit|   Available for|         |
|EUR Thousand     |      receivables|        or loss|            sale|    Total|
+-----------------+-----------------+---------------+----------------+---------+
|Financial assets |                 |               |                          |
+-----------------+-----------------+---------------+----------------+---------+
|Receivables from |                 |               |                |         |
|financial        |                 |               |                |         |
|institutions     |           61,673|               |                |   61,673|
+-----------------+-----------------+---------------+----------------+---------+
|Derivative       |                 |               |                |         |
|contracts        |                 |         71,255|                |   71,255|
+-----------------+-----------------+---------------+----------------+---------+
|Receivables from |                 |               |                |         |
|customers        |        5,008,381|               |                |5,008,381|
+-----------------+-----------------+---------------+----------------+---------+
|Equities         |                 |               |              17|       17|
+-----------------+-----------------+---------------+----------------+---------+
|Other receivables|           48,790|               |                |   48,790|
+-----------------+-----------------+---------------+----------------+---------+
|Balance at 31    |                 |               |                |         |
|December 2010    |        5,118,844|         71,255|              17|5,190,117|
+-----------------+-----------------+---------------+----------------+---------+
|Balance at 31    |                 |               |                |         |
|December 2009    |        4,478,235|         75,934|              17|4,554,186|
+-----------------+-----------------+---------------+----------------+---------+
|                 |                 |               |                          |
+-----------------+-----------------+---------------+----------------+---------+
|                 |                 |  Recognised at|                |         |
|                 |                 |     fair value|                |         |
|                 |                 | through profit|           Other|         |
|EUR Thousand     |                 |        or loss|     liabilities|    Total|
+-----------------+-----------------+---------------+----------------+---------+
|Liabilities to   |                 |               |                |         |
|financial        |                 |               |                |         |
|institutions     |                -|               |       1,640,000|1,640,000|
+-----------------+-----------------+---------------+----------------+---------+
|Derivative       |                 |               |                |         |
|contracts        |                -|         21,835|                |   21,835|
+-----------------+-----------------+---------------+----------------+---------+
|Debt securities  |                 |               |                |         |
|issued to the    |                 |               |                |         |
|public           |                -|               |       3,286,747|3,286,747|
+-----------------+-----------------+---------------+----------------+---------+
|Subordinated     |                 |               |                |         |
|liabilities      |                -|               |          20,000|   20,000|
+-----------------+-----------------+---------------+----------------+---------+
|Other liabilities|                -|               |          63,653|   63,653|
+-----------------+-----------------+---------------+----------------+---------+
|Balance at 31    |                 |               |                |         |
|December 2010    |                -|         21,835|       5,010,399|5,032,235|
+-----------------+-----------------+---------------+----------------+---------+
|Balance at 31    |                 |               |                |         |
|December 2009    |                -|         11,971|       4,402,933|4,414,904|
+-----------------+-----------------+---------------+----------------+---------+

Debt securities issued to the public are carried at amortised cost.  On 31
December 2010, the fair value of these debt instruments was approximately EUR
63 343 thousand higher than their carrying amount, based on information
available in markets and employing commonly used valuation techniques.
Subordinated liabilities are carried at amortised cost. Their  fair value are
substantially lower than their carrying amount, but determining fair values
realiably is difficult in the current market situation.

Derivative Contracts 31 December 2010

+-------------+-----------------------------------+------------------+---------+
|             |Nominal values/the remaining       |   Fair values    |         |
|EUR thousand |maturity                           |                  |         |
+-------------+--------+---------+------+---------+------+-----------+         |
|             |        |         |  More|         |      |           |         |
|             |    Less|         |  than|         |      |           | Credit  |
|             | than 1 |         |    5 |         |      |           |counter- |
|             |    year|1-5 years| years|    Total|Assets|Liabilities|  value  |
+-------------+--------+---------+------+---------+------+-----------+---------+
|Interest rate|        |         |      |         |      |           |         |
|derivatives  |        |         |      |         |      |           |         |
+-------------+--------+---------+------+---------+------+-----------+---------+
|Hedging      | 364,261|9,258,120|     -|9,622,381|71,255|     21,835|  144,451|
+-------------+--------+---------+------+---------+------+-----------+---------+
|Trading      |        |         |      |         |      |           |         |
+-------------+--------+---------+------+---------+------+-----------+---------+
|Total        | 364,261|9,258,120|     -|9,622,381|71,255|     21,835|  144,451|
+-------------+--------+---------+------+---------+------+-----------+---------+

Derivative Contracts 31 December 2009

+------------+-------------------------------------+------------------+--------+
|EUR thousand|Nominal values/the remaining maturity|   Fair values    |        |
+------------+----------+---------+------+---------+------+-----------+        |
|            |          |         |  More|         |      |           |        |
|            |          |         |  than|         |      |           | Credit |
|            | Less than|         |    5 |         |      |           |counter-|
|            |    1 year|1-5 years| years|    Total|Assets|Liabilities| value  |
+------------+----------+---------+------+---------+------+-----------+--------+
|Interest    |          |         |      |         |      |           |        |
|rate        |          |         |      |         |      |           |        |
|derivatives |          |         |      |         |      |           |        |
+------------+----------+---------+------+---------+------+-----------+--------+
|Hedging     | 2,227,376|5,605,061|     -|7,832,436|75,934|     11,971| 156,431|
+------------+----------+---------+------+---------+------+-----------+--------+
|Trading     |          |         |      |         |      |           |        |
+------------+----------+---------+------+---------+------+-----------+--------+
|Total       | 2,227,376|5,605,061|     -|7,832,436|75,934|     11,971| 156,431|
+------------+----------+---------+------+---------+------+-----------+--------+


All derivative contracts have been entered into for hedging purposes, regardless
of their classification in accounting.

Related-party transactions

OPA's related parties include OP-Pohjola Group Central Cooperative and its
subsidiaries, the OP-Pohjola Group pension insurance organisations OP-Pension
Fund and OP-Pension Foundation, and the company's administrative personnel.
Standard terms and conditions for credit are applied to loans granted to the
related parties. Loans are tied to generally used reference rates. Related-party
transactions have not undergone any substantial changes since 31 December 2009.

The Financial Statements Bulletin for 1 January - 31 December 2010 has been
prepared in accordance with IAS 34 (Interim Financial Reporting), as approved by
the EU.  The Financial Statements 2010 contain a description of the accounting
policies applied. Given that all figures have been rounded off, the sum total of
individual figures may deviate from the presented sums.

Helsinki, 9 February 2011

OP Mortgage Bank
Board of Directors


For further information, please contact Mr Lauri Iloniemi, Managing Director,
tel. +358 10 252 3541
[1] For balance sheet and other cross-sectional figures, the point of comparison
is the figure at the end of 2009. Comparatives deriving from the income
statement are based on figures reported for the corresponding period a year ago.






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Source: OP Mortgage Bank via Thomson Reuters ONE

[HUG#1486854]