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Okobank Osuuspank. (09IA)

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Wednesday 16 February, 2000

Okobank Osuuspank.

Final Results

Okobank Osuuspankkien Keskuspankki
15 February 2000


              OK0BANK FINANCIAL STATEMENT BULLETIN FOR 1999

OKOBANK Consolidated's net operating profit for 1999 was EUR 111 million
(74 million in 1998). Earnings per share (EPS) were EUR 1.72 (1.12) and return
on equity (ROE) was 16.1 per cent (9.7%). The proposed dividend is EUR 0.70
(0,46 e) on Series A shares and EUR 0.65 (0,42 e) on Series K shares.

- OKOBANK Consolidated's net operating profit for 1999 was EUR 111 million, an
increase of EUR 36.7 million on the previous year. Operating profit included a
non-recurring capital gain of EUR 16.6 million.

- Earnings per share (EPS) were EUR 1.72, as against EUR 1.12 in the previous
year. Return on equity (ROE) rose by more than 6 percentage points from 1998 and
was 16.1 per cent.

- The cost/income ratio was 0.55, as against 0.69 a year earlier.

- The dividend proposal is EUR 0.70 on Series A shares and EUR 0.65 on Series K
shares. The dividend paid in the previous year was EUR 0.46 on Series A shares
and EUR 0.42 on Series K shares.

- The credit portfolio grew by 22 per cent and amounted to EUR 4.7 billion at
the close of the year. Deposits from the public were EUR 1.47 billion, or 12 per
cent greater than they were at the end of 1998.

- Client funds under asset management grew by nearly 72 per cent and were EUR
3.5 billion at the end of the year.

- Moody's investors Service Limited raised OKOBANK's long-term debt rating from
A2 to A1 as from the beginning of October.

- Mr Mikael Silvennoinen, Managing Director, says that OKOBANK Consolidated
achieved its central business objectives and that the result of all the business
areas improved on the previous year.

Net operating profit EUR 111 million

OKOBANK Consolidated's net operating profit for 1999 was EUR 111 million, up EUR
36.7 million and 49 per cent on the previous year. The result was greatly
improved by the EUR 16.6 million euro capital gain that was realised in the
first quarter as well as by operating expenses that were markedly smaller than
they were a year ago.

OKOBANK Consolidated quarterly performance

Million euros                        1999
                               1-3 4-6  7-9 10-12  1999  1998 Change, %
Net income from financial
 operations                    26   28   26    29   109   113        -3
Commission income              13   14   13    25    66    60        11
Net income from securities
 transactions and foreign
 exchange dealing              6    1   -2     5    10    12        -17
Other operating income        25    9    6    10    50    37         33
Total income                  71   52   43    69   235   222          6
Total expenses                30   33   29    39   131   153        -15
Loan and guarantee losses
 and write-downs              -2    0    0     0    -2    -4        -36
Share of profit/loss of
 companies included using
 the equity method             1    1    1     1     5     2         99
Net operating profit          44   21   15    31   111    74         49

OKOBANK Consolidated's net income from financial operations was EUR 108.8
million, down by EUR 3.8 million or 3 per cent on the figure a year earlier.
Net income from financial operations was improved by the growth in lending. In
addition interest expenses declined in the last quarter, when OKOBANK
exercised its right to make a premature repayment and redeemed its two issues
of perpetual bonds in a total amount of USD 250 million. Factor weakening net
income from financial operations was narrower margins, particularly in new
credits granted to retail customers. The margins on OKOBANK's central bank
operations also narrowed and played a part in weakening net income from
financial operations.

Commission and fee income increased by EUR 6.7 million compared with the
previous year. The growth in commission and fee income was weighted towards
the last quarter, when commission income, particularly on securities
transactions, increased significantly.

Commission income, million euros         1999    1998   Change, %

Lending                                    10      10           4
Payment transfers                          14      12          10
Securities brokerage and issuance          27      25          11
Asset management                            7       4          50
Other commission income                     9       9           5

Total                                      66      60          11

Net income from securities transactions totalled EUR 5.7 million, up EUR 0.9
million on 1998. Net income from debt securities and interest rate derivatives
was in the red, resulting in a loss of EUR 5.8 million. A year earlier these
items were slightly loss-making. The losses in 1999 were due to losses on the
transfer of debt securities and to write-downs, because market interest rates
rose substantially in May-October and the bond market was unstable. Net income
from share transactions, however, rose from the previous year's figure of EUR
4.8 million to EUR 11.5 million.

Net income from foreign exchange dealing was EUR 4.4 million. Primarily due to
the transition to the euro, this item was 40 per cent smaller than the figure
a year earlier.

Other operating income amounted to EUR 49.7 million, compared with EUR 37.4
million in 1998. A non-recurring capital gain of EUR 16.6 million was booked on
the sale of Radiolinja Oy shares in January. In the previous year capital gains
on shares held as financial fixed assets amounted to EUR 3.4 million. Capital
gains on sales of properties and shares in real-estate corporations totalled
EUR 4 million, whereas in 1998 these capital gains added EUR 5.6 million to
income. Property rents increased by EUR 0.7 million and were EUR 21.6 million.
The net yield on capital invested in real estate not in own use was 5.9 per
cent at the end of the year, or 0.7 percentage point higher than it was a year
earlier.

Administrative costs increased by EUR 5.8 million on the previous year, or by
8.2 per cent. Staff costs accounted for more than half of the total amount of
administrative costs, EUR 76.7 million. The amount of staff costs was the same
as in 1998. OK0BANK Consolidated had an average payroll in 1999 of 964
employees, or 10 employees less than in 1998. Data processing and data
communications costs grew by EUR 0.6 million and were EUR 19.6 million. The
growth was due, among other things, to the modification works on information
systems on the euro and the eve of the new millennium as well as to an increase
in the volume of transactions.

The total amount of depreciation, EUR 16.3 million, includes writedowns on
real-estate properties and shares in real-estate corporations, as well as
reversals on them, in a net amount of EUR 3.6 million.

Other operating expenses decreased by EUR 29.4 million, or by 56 per cent on
the previous year. In 1998 expenses included an EUR 27.1 million contribution
to the OKOBANK Group Security Fund. In 1999 a contribution was no longer made
to the Fund. Real-estate expenses diminished by EUR 1.6 million, or by 10.2 per
cent compared with the previous year.

The net effect on income of loan and guarantee losses as well as write-downs on
securities held as financial fixed assets was due to reversals a credit to
income of EUR 2.3 million. In 1998 these items added EUR 3.6 million to income.

The minority interest in companies consolidated according to the equity method
was EUR 4.6 million. Aurum Life Assurance Company accounted for EUR 3.2 million
of this figure and OP-Kotipankki Oyj for EUR 0.8 million.

Extraordinary items includes an entry of EUR 57 million representing the
remainder of the shares of liabilities which were paid to the OKOBANK Group
Security Fund at the beginning of the year. The withdrawal of OKOBANK and
Okopankki Oyj from the Security Fund came into force in January.

After appropriations, taxes and minority interest, OKOBANK Consolidated's
profit for the financial year was EUR 39.1 million.

Total assets EUR 10.8 billion

The consolidated balance sheet at the end of the year stood at EUR 10.8 billion,
an increase of EUR 1.9 billion and 21.3 per cent on the figure at the end of
1998. Total assets rose as a result of the substantial increase in lending. In
addition, OKOBANK prepared for possible liquidity problems over the turn of the
millennium and increased the amount of its debt securities substantially in
December.

Lending and investments

There was brisk demand for credits throughout the year. Credits to the public,
including leasing assets, amounted to more than EUR 4.7 billion at the end of
the year. The amount of these items increased by EUR 854 million from the end of
1998, or by 22 per cent. The proportion of credits to the public in the
consolidated balance sheet was 44 per cent, on a par with the situation a year
earlier. The proportion of corporate loans in the credit portfolio declined by 3
percentage points since the end of the previous year and was 55 per cent.
Credits granted to households accounted for the same share as a year earlier, or
about a quarter.

OKOBANK Consolidated's non-performing claims diminished by EUR 1.8 million to
EUR 12.3 million. In addition, OKOBANK Consolidated had zero-interest claims of
EUR 3.6 million. At the end of 1998, zero-interest claims included a total of
EUR 57 million of OKOBANK's and Okopankki's loans to the OKOBANK Group Security
Fund. The Fund repaid these loans on January 4, 1999. Net of the loans to the
Security Fund, zero-interest claims declined by EUR 2.2 million from the end of
the previous year. The amount of non-performing and zero-interest claims at the
end of the year was 0.3 per cent of loans to the public and guarantees. The
corresponding figure a year earlier, net of non-interest bearing loans to the
Security Fund, was 0.4 per cent. Of the aggregate amount of non-performing and
zero-interest claims, companies accounted for EUR 8.2 million and households for
EUR 4.9 million.

Claims on credit institutions amounted to EUR 1 784 million, an increase of EUR
90 million on the figure a year earlier. Of these claims, loans and capital
investments granted to the Group member banks accounted for 64 per cent, as
against 52 per cent a year earlier. Claims on the member banks grew by EUR 266
million, up 30 per cent since the end of the previous year.

The amount of debt securities increased by EUR 956 million from the end of 1998,
or by 48 per cent, and totalled EUR 2 961 million. Part of the growth was due to
the above-mentioned preparation for possible liquidity problems over the turn of
the year. The amount of banks' certificates of deposit was EUR 1 568 million.
The bulk of this increase of EUR 622 million, or 66 per cent, came towards the
end of the year. Investments in international issues of bonds and notes were
increased. Their amount at the end of the year was EUR 584 million, an increase
of EUR 223 million on the previous year. The proportion of debt securities in
the consolidated balance sheet rose to 27 per cent, from slightly more than 22
per cent a year earlier.

The amount of OKOBANK Consolidated's equity holdings remained fairly small. The
amount of the shares which the consolidated companies owned in non-real-estate
companies was EUR 141 million at the end of the year. The amount of equity
investments grew on January 19, 2000, when OKOBANK purchased from Suomi Mutual
Life Assurance Company shares which it owned in Pohjola Group Insurance
Corporation for a total of EUR 44 million. The book value of the share
portfolios in the trading book was EUR 32 million at the and of the year and
unbooked appreciation in value amounted to EUR 15 million.

The book value of shares in real estate and real-estate corporations at the
end of the year was EUR 241 million. The book value of these holdings declined
by about EUR 15 million from the end of the previous year. The amount of
capital invested in real-estate holdings diminished by EUR 24 million and was
EUR 292 million at the end of the year.

Deposits and other liabilities

The amount of deposits from the public stood at EUR 1 473 million at the end
of the year. Deposits increased by EUR 163 million, or 12.4 per cent, since
the end of the previous year. Deposits from the public accounted for about 14
per cent of OKOBANK Consolidated's liabilities.

Debts to credit institutions and central banks grew by EUR 774 million, or 28
per cent, and totalled EUR 3.5 billion at the end of the year. Of these
liabilities, 69 per cent, or EUR 2.4 billion, were deposits which the member
banks of the OKOBANK Group placed with OKOBANK. The member banks' deposits
with OKOBANK grew by 3 per cent from the and of the previous year. At the turn
of the year OKOBANK had EUR 536 million of current liabilities to the Bank of
Finland. At the end of 1998 OKOBANK did not have liabilities to the central
bank.

The growth in lending and debt securities was funded mainly on the money and
capital markets. At the end of the year, the amount of debt securities issued
to the public was about EUR 3.5 billion, an increase of EUR 837 million, or 31
per cent, on the figure a year earlier. Certificate of deposit liabilities
were increased by EUR 771 million from the end of the previous year, or 37 per
cent, and they amounted to EUR 2 869 million at the end of the year.

Subordinated liabilities diminished by EUR 174 million since the end of the
previous year. The decrease was due to the fact that OKOBANK exercised its
right to effect a premature repayment and redeemed its two issues of perpetual
bonds in a total amount of USD 250 million. The amount of domestic and
international debenture loans, however, grew by EUR 19 million.

Equity capital

OKOBANK Consolidated's equity capital at the end of the year stood at EUR 513
million, an increase of EUR 19.3 million since the end of the previous year.
Equity capital included an EUR 32.6 million non-distributable portion that was
transferred to the equity capital account from voluntary provisions and the
depreciation difference. OKOBANK Consolidated's distributable equity at the
end of the year was EUR 54.2 million.

Off-balance sheet items

The amount of guarantees and other off-balance sheet commitments at the end of
the year was EUR 2 048 million, an increase of EUR 322 million on the figure
at the end of 1998. At the end of the year guarantees amounted to EUR 470
million, or EUR 151 million less than a year earlier. The amount of guarantee
liabilities, in turn, grew by EUR 194 million and was EUR 486 million. Unused
credit facilities increased by EUR 221 million to EUR 979 million.

Trading in derivative contracts changed significantly following the
introduction of the euro. The focus of the trading shifted from the OTC market
to the stock exchanges, thereby reducing the credit risk associated with the
contracts. The value of the underlying instruments of derivative contracts
decreased by 69 per cent from the end of 1998 and was EUR 10.1 billion. The
amount of forward rate agreements decreased by 90 per cent to EUR 1.9 billion.
The amount of currency forward agreements was more than EUR 1.3 billion, or 77
per cent, less than a year earlier. Interest rate swaps remained nearly
unchanged in amount and totalled EUR 6.7 billion at the end of the year. Of
the amount of underlying instruments of derivative contracts, interest rate
swaps accounted for 66 per cent, compared with 21 per cent a year earlier. The
credit countervalue of derivative contracts was EUR 175 million, or EUR 133
million less then it was a year earlier.

Capital adequacy

OKOBANK Consolidated's capital adequacy ratio at the end of the year was 12.5
per cent, or 3.7 percentage point lower than a year earlier. The decline in
the capital adequacy ratio was mainly due to the fact that OKOBANK repaid
prematurely, subject to permission from the Financial Supervision, its two
issues of perpetual bonds in a total amount of USD 250 million. These bonds
were previously included in upper Tier II own funds. The capital adequacy
ratio was furthermore weakened by the EUR 931 million growth in risk-weighted
items, representing growth of nearly 18 per cent since the end of 1998.


 Million euros                            Dec. 31,    Dec. 31,
                                              1999        1998
 Own funds
  Tier I                                       448         435
  Tier II                                      355         435
  Deductions                                   -36         -36
  Tier III                                       -          13
 Total                                         767         847
 
Risk-weighted receivables, investments
 and off-balance sheet items                 6 156       5 225

Capital adequacy ratio, %                     12.5        16.2
 
Tier I funds/Risk-weighted items,
total, %                                       7.3         8.3


The OKOBANK Group's capital adequacy ratio at the end of 1999 was 12.4 per
cent. At the end of 1998 it was 12.2 per cent, having been 11.6 per cent at
the end of 1997, and 11.3 per cent at the end of 1996.

Share of the OKOBANK Group Security Fund's Liabilities

An amendment, which came into force towards the end of 1998, to the Credit
Institution Act made it possible for the member banks of the OKOBANK Group to
withdraw from the OKOBANK Group Security Fund. The withdrawal will come into
effect when the bank has paid in full its own share of the liabilities for the
Security Fund's obligations. All the member banks decided to withdraw from the
Security Fund and to pay their share of the liabilities in a manner they
agreed with the Security Fund.

Within OKOBANK Consolidated, OKOBANKS's share of the liabilities was EUR 127
million and Okopankki's was EUR 34 million. In 1998 OKOBANK paid EUR 84
million of its share of the liabilities and Okopankki paid EUR 20 million.
OKOBANK and Okopankki granted to the Security Fund EUR 57 million of
non-interest bearing loans corresponding to their unpaid share of the
liabilities. 0K0BANK and Okopankki paid the remainder of their share of the
liability, EUR 57 million, on January 4, 1999, whereupon the withdrawal from
the security fund came into force. The payments are included in extraordinary
expenses in the profit and loss accounts. The OKOBANK Security fund repaid the
zero-interest loans it received from OK0BANK Consolidated on January 4, 1999.

Development of the business divisions

OKOBANK Consolidated's four business areas as confirmed by the Executive Board
are: Corporate Banking, Investment Banking, Retail Banking and Group Treasury.
OKOBANK Consolidated's other operations consist mainly of real-estate
operations and interests in associated companies.

OKOBANK Consolidated's business divisions in 1999

Business                 % of total          % of net       % of staff
division                     income  operating profit
Corporate
Banking                          30                31             31
Investment
Banking                           8                 8              9
Retail Banking                   24                18             47
Group Treasury

                                 23                33             10
Other operations                 15                10              4

CORPORATE BANKING is the province of the parent bank, OKOBANK, OKO Mortgage
Bank plc, OP-Finance Ltd., and OKO-Venture Capital Ltd. Corporate banking
generated EUR 68 million of income, or 30 per cent of OKOBANK Consolidated's
income. The operations resulted in net operating profit of EUR 34 million. The
return on allocated equity was 8.5 per cent.

The aggregate credit portfolio of OKOBANK, OKO Mortgage Bank and OP-Finance
grew by about 20 per cent and totalled EUR 3 342 million at the end of the
year. Total guarantees outstanding increased by EUR 65 million to EUR 749
million. OP Finance's market share as a granter of leasing and hire-purchase
credits strengthened further.

OKOBANK further strengthened its position as a provider of debt issuance
services and was the largest lead manager of new issues of the banks operating
in Finland. In co-operation with the UNICO banks, OK0BANK participated in
arranging debt issues totalling EUR 2.8 billion.

OKOBANK's venture capital operations were turned into an independent company
in August under the name OKO-Venture Capital Ltd. The capital under management
by the company's venture capital funds amounted to EUR 51.6 million at the
close of the year.

During the year under review, 72 million payment transactions were mediated by
OKOBANK Consolidated, representing an increase of 9 per cent on the previous
year.

OKOBANK Consolidated's INVESTMENT BANKING is centralised within Opstock Ltd.
Income from investment banking amounted to EUR 18 million and generated EUR 9
million of net operating profit. The return on allocated equity was 62.2 per
cent.

The value of the share transactions handled by Opstock Securities nearly
tripled on the previous year, rising to EUR 8.9 billion. Funds under
management by Opstock Asset Management grew by nearly 72 per cent and totalled
EUR 3.5 billion at the close of the year. The share of stock broking rose to
4.2 per cent of share turnover on Helsinki Exchanges.

Opstock's investment research, which the company has developed energetically
in recent years, improved its ranking in a national comparison.

In spring of the current year, Opstock Private, in co-operation with
Okopankki, will begin offering integrated asset management services to private
individuals in the Greater Helsinki area.

The domestic mutual funds run by the OKOBANK Group, whose assets are managed
by Opstock, ranked in the top quarter of Finnish mutual funds in a
twelve-month yield comparison. The palette of index funds was rounded out by
bringing three new funds out on the market.

Within OK0BANK Consolidated, RETAIL BANKING is handled by Okopankki Oyj.
Retail banking generated EUR 55 million of income and net operating profit of
EUR 20 million. The return on allocated capital was 22.5 per cent. At the end
of the year Okopankki had nearly 240 000 customers, an increase of 7 per cent
since the end of 1998. Retail customers and households accounted for 87 per
cent of all customers.

The loan portfolio grew by 25 per cent and stood at EUR 1.2 billion at the end
of the year. New loans were raised in an amount of EUR 581 million, which was 45
per cent more than in the previous year. Every third new loan was covered by
Payment Protection Plan insurance.

Total deposits at the end of the year amounted to EUR 1.2 billion, an increase
of 18 per cent on the figure at the end of 1998. Customers handled their
payment transfers to an increasing extent via the Internet, direct debits or
payment ATMs. These forms of payment rose to an 86 per cent share of payment
transactions.

THE GROUP TREASURY function handles OK0BANK's central financial institution
tasks. OKOBANK's net debt to the member banks of the OKOBANK Group was
EUR 1 243 million at the end of 1999. It diminished by EUR 169 million during
the year. The 11 per cent growth in lending by the member banks increased
credits granted by OKOBANK to the member banks by EUR 287 million, or by 43 per
cent from the end of 1998. The member banks repaid a total of EUR 30 million of
capital investments and perpetual bonds subscribed for by OKOBANK.

OKOBANK's credits to the member cooperative banks of the OKOBANK Group and the
deposits which the banks made with OKOBANK

Million euros                                     Dec. 31,   Dec. 31,
                                                      1999       1998

Credits to the member cooperative banks               960        673
Capital investments and perpetual bonds               226        256

Minimum and cash reserve deposits of the
OKOBANK Group member cooperative banks              1 738      1 657
Other deposits of the member cooperative banks        691        684

Group Treasury generated EUR 51 million in income and net operating profit of
EUR 36 million. The return on allocated equity was 30.9 per cent.

OTHER OPERATIONS include real-estate operations as well as via associated
companies, Aurum Life Assurance Company and OP-Kotipankki Oyj, life and
pension insurance as well as telephone banking. Income and expenses of
Corporate Administration are allocated to Other operations. Other operations
generated income of EUR 34 million and net operating profit of EUR 11 million.

The amount of capital invested in OKOBANK Consolidated's real-estate assets
totalled EUR 292 million at the end of the year, a decrease of EUR 24 million
on the figure a year earlier. The total floor space of real-estate properties
at the end of the year was about 166 000 sq.m., of which about a third was in
use by OKOBANK Consolidated.

The capital invested in real-estate property not in use by OKOBANK Consolidated
was EUR 166 million. Of this amount, about half was invested in the three
largest properties.

The net yield of OKOBANK Consolidated's leasable premises at the end of the
year rose to 5.9 per cent, an improvement of 0.7 percentage point on the
figure a year earlier. Leasing contracts made during the year produced a 9.4
per cent net yield. The vacancy rate of premises at the end of the year was 9
per cent, as against 7 per cent a year ago.

In 1999, 28 real estate properties were sold, yielding a capital gain of EUR 4
million, as against EUR 5.5 million a year earlier. Towards the end of the
year, an EUR 4 million write-down was made on the Arkadiankatu 23 property.

Changes in the structure of OK0BANK Consolidated

In May OKOBANK sold the shares outstanding in its subsidiary Vicarius
Fastigheter AB which owned properties in Sweden, to a Swedish real estate
investment company. The deal had a minor effect on earnings.

In May Opstock Ltd., OKOBANK's subsidiary which is engaged in investment
banking, carried out an arrangement which made it possible for the staff to
own shares in Opstock. At the end of the year the staff owned 13 per cent of
Opstock's shares outstanding. Prior to the arrangement, OKOBANK owned
Opstock's entire share capital. The changes in the Group structure do not have
a material effect on the comparability of financial statement data.

The euro and the year 2000

The transition to stage three of EMU went without a hitch at the beginning of
1999. The Bank managed well in handling euro-denominated reporting and
providing service that meets customers' needs.

OK0BANK Consolidated's preparations for the year 2000 went according to plans.
The change-over was made smoothly without abrupt internal or external
disturbances and it was not necessary to have recourse to contingency plans to
ensure the continuity of operations. The system costs of making Y2K
preparations came to about EUR 0.8 million in the year under review.

Major co-operation agreements

At the end of the year the OKOBANK Group, Mutual Pension Insurance Company
Ilmarinen, Suomi Mutual Life Assurance Company, A-Vakuutus Mutual Insurance
Company and Pohjantahti Mutual Insurance Company established a new alliance
which is owned by Finnish customers and whose service palette covers all bank
and insurance services.

Together with Kesko, the Finnish central wholesale and retail chain, the
OKOBANK Group signed an important co-operation agreement on the development of
services for loyal customers. In the first stage of the co-operation, Kesko's
customers will be offered the possibility of integrating into their loyal
customer cards an interest-bearing advance payment account with Okopankki Oyj
or with other member banks of the OKOBANK Group.

Outlook

In the current year the operating environment is estimated to remain
favourable for the stable development of OKOBANK Consolidated, as it did last
year. The growth in lending is forecast to slow down somewhat compared with
1999, but the narrowing of margins appears to have come to a halt despite the
tough competition, particularly in corporate banking. Brisk population growth in
the Greater Helsinki area coupled with growth in the economy offer a solid basis
for profitable retail banking. The structural change in financial wealth is
estimated to continue at a fast rate and to maintain brisk demand for investment
services.

In 2000 OKOBANK Consolidated is well positioned to improve its operational
profitability further. Consolidated net operating profit may nevertheless fall
short of the figure in 1999, when the net operating profit included a
significant non-recurring capital gain.

THE PARENT BANK, OKOBANK

OKOBANK'S net operating profit for 1999 was EUR 86.6 million, an increase of
EUR 31.8 million on the previous year. The improved result is attributable to
the substantial growth in income and to lower costs. Net income from financial
operations was slightly smaller than it was a year ago. The biggest item
boosting other income was an EUR 16.6 million capital gain on the sale of
Radiolinja Oy shares. Dividends received from subsidiaries and associated
companies as well as avoir fiscal tax credits were EUR 6.1 million greater
than they were in the previous year. The reduction in expenses was primarily
due to the fact that an annual contribution no longer had to be paid to the
OKOBANK Group Security Fund.

The profit for the financial year after appropriations and taxes was EUR 31
million.

OKOBANK's total assets on the balance sheet date were EUR 9.2 billion. This
represented an increase from the end of the previous year of EUR 1.8 billion,
or 24 per cent. Loans to the public totalled EUR 1.8 billion, an increase of
EUR 0.3 billion or 21 per cent, since the end of 1998. The amount of
non-performing and zero-interest claims at the end of the year was EUR 7.6
million. The amount of these items declined by EUR 4 million if the
zero-interest loan to the OKOBANK Security Fund at the end of 1998 is not
taken into account.

Liabilities to credit institutions grew by EUR 320 million and were slightly
less than EUR 3.2 billion. The member banks' share of these debts was 76 per
cent. The growth in lending was financed mainly on the money and capital
markets. The amount of debt securities issued to the public grew by EUR 851
million and was more than EUR 3 billion at the end of the year.

OKOBANK's equity capital at the and of the year stood at EUR 429 million, of
which distributable equity totalled EUR 68.4 million.

It is proposed that a dividend of EUR 0.70 be paid on Series A shares and EUR
0.65 on Series K shares. All in all, the proposed dividend payout is EUR 32.1
million.

OKOBANK's capital adequacy ratio at the end of the year was 15.1 per cent.

Share capital and shareholders

In 1999 OKOBANK's share capital increased from EUR 188.9 million to EUR 196.4
million. The increase was due to the subscriptions for OKOBANK Series A shares
made on the basis of the issue of bonds with warrants targeted at the
Government Security Fund in connection with the purchase of Savings Bank of
Finland Ltd. A total of 892 500 of these shares were registered in early 1999.

An extraordinary general meeting of OKOBANK's shareholders held on June 30,
1999, passed a resolution, in accordance with the proposal of the Executive
Board, according to which OKOBANK and the OKOBANK Group Central Cooperative
will introduce a share option-based incentive system covering the entire
staff. Bonds with equity warrants were offered for subscription by the
personnel by OKOBANK Consolidated, the OKOBANK Group Central Cooperative and
its other subsidiaries, the OKOBANK Group Mutual Insurance Company, the
OK0BANK Group Pension Fund and the OKOBANK Group Research Foundation as well
as by OKOBANK's wholly-owned subsidiary OP-Sijoitus Oy. The issue of bonds
with warrants amounts to EUR 460 000 and the warrants attached to the bonds
entitle their holders to subscribe for a total maximum of 4 600 000 OKOBANK
series A shares. The subscription price of the shares is EUR 10.99 and the
subscription price will be lowered by the amount of dividends to be
distributed before the share subscription. The subscription period for the
shares will begin stepwise on October 1, 2002, and end for all equity warrants
on October 30, 2006.

About 50 per cent of the entire personnel subscribed for the bonds, and the
issue was fully subscribed. On the basis on the terms and conditions of the
issue, an EUR 28 760 subscription for bonds with warrants was approved for
OP-Sijoitus Oy for the purpose of offering the bonds at a later date to
persons in the present or future employ of OKOBANK Consolidated.

At the end of 1999 OKOBANK had 24 349 registered shareholders. The largest
shareholder was OKOBANK'S parent company, the OK0BANK Group Central
Cooperative, which held 41.3 per cent of OKOBANK's shares and 61.2 per cent of
the voting rights. Numerically, the largest shareholder group was private
individuals, of whom there were 23 276.

On January 24, 2000, OKOBANK's Executive Board approved conversion demands
made to it, in accordance with the Articles of Association, concerning the
conversion of 15 614 502 Series K shares into the same number of Series A
shares. As a consequence of the conversions, the proportion of votes held by
the owner with the largest amount of shares, the OKOBANK Group Central
Cooperative, will fall to 55.1 per cent.

Nominee-registered shares accounted for 7.6 per cent of the Series A shares
following the conversion of share series. At the end of the previous year the
corresponding proportion was 17.1 per cent.

OKOBANK's credit ratings

In October Moody's Investors Service Limited raised OKOBANK's long-term debt
rating from A2 to A1. At the end of the year OKOBANK's credit ratings from
International rating agencies were as follows:

Rating Agency          Short-term debt     Long-term debt

Standard & Poor's'             A-2                   -
Moody's                        P-1                  A1
Fitch IBCA                     FI                   A

In addition, both Moody's and Fitch IBCA raised in 1999 their individual rating
based on OKOBANK's profit-making ability (Moody's financial strength rating and
the Pitch IBCA individual rating).

Major subsidiaries

All of OKOBANK's major subsidiaries posted a profit. Okopankki Oyj's net
operating profit was EUR 21 million (19 million in 1998), OP Finance Ltd's being
EUR 12 million (9 million in 1998), Opstock Ltd's being EUR 9 million (6 million
in 1998) and OKO Mortgage Bank plc's being EUR 5 million (7 million in 1998).

Administration

At its organisation meeting held on March 24, 1999, OKOBANK's Supervisory Board
re-elected as its Chairman Seppo Penttinen and likewise re-elected Paavo
Haapakoski as its Vice Chairman.

Juhani Elomaa, the member of OK0BANK's Executive Board who was in charge of
investment banking, resigned from membership of the Executive Board at his own
request, effective February 3, 2000.

Consolidated profit and loss account

Million euros                         1-12/99  1-12/98     Change, %

Interest income                          355      424            -16
Interest expenses                        247      311            -21
Net Income from financial operations     109      113             -3
Income from equity investments             4        3             17
Commission income                         66       60             11
Commission expenses                       15       16             -9
Net income from securities
transactions and foreign exchange
dealing                                   10       12            -17
Net income from securities
transactions                               6        5             19
Net income from foreign exchange
dealing                                    4        7            -40
Other operating income                    46       34             35
Administrative expenses                   77       71              8
Staff costs                               40       40              0
Other administratIve expenses             37       31             19
Depreciation and write-downs on
tangible and intangible assets            16       14             19
Other operating expenses                  23       53            -56
Loan and guarantee losses                 -2       -3            -45
Write-downs on securities held as
financial fixed assets                    -1       -1             24
Share of profit/loss of companies
included in the consolidated accounts
using the equity method                    5        2              -
Net operating profit                      111      74             49
Extraordinary items                       -57     -90            -36
Extraordinary income                        0      14              -
Extraordinary expenses                     57     104            -45
Profit (loss) before appropriations
and taxes                                  54     -15              -
Income taxes                              -14       0              -
Share of profit/loss for the financial
period attributable to minority
interests                                   1       0              -
Profit (loss) for the financial year       39     -15              -

Financial ratios                           1999     1998

Turnover, million e                         525      562
Earnings per share (EPS), euros            1.72     1.12
Equity per share, euros                   10.97    10.56
Return on equity, (ROE), %                 16.1      9.7
Cost to income ratio                       0.55     0.69
Staff on average                            964      974

Consolidated balance sheet

Million euros                 Dec. 31,    Dec. 31,   Change, %
                                  1999        1998

Liquid assets                      601         582           3
Debt securities eligible
for refinancing with
central banks                    1 791         512           -
Claims on credit
institutions                     1 784       1 694           5
Claims on the public and
public sector entities           4 561       3 755          21
Leasing assets                     178         130          37
Debt securities                  1 170       1 492         -22
Shares and participations           79          77           2
Participating interests             55          51           7
Shares and participations
in consolidated companies            7           5          40
Consolidated goodwill                0           0           0
Other long-term
expenditure                          9          12         -25
Tangible assets                    257         274          -6
Other assets                       257         259          -1
Accrued income and
prepayments                         86          91          -5
Total assets                    10 836       8 936          21

Liabilities to credit
institutions and central
banks                           3 513       2 739           28
Liabilities to the public
and public sector entities      2 356       1 977           19
Debt securities issued to
the public                      3 494       2 657           31
Other liabilities                 483         413           17
Accrued expenses and
referred income                    57          65          -12
Compulsory provisions               1           2          -58
Subordinated liabilities          404         579          -30
Imputed taxes due                  13          10           29
Minority interests                  2           -            -
  Share capital                   196         189            4
  Share issue account               -           8            -
  Share premium account             1           0            -
  Revaluation reserve              25          25            0
  Other restricted
  reserves                        203         203            0
  Non-restricted reserves          24          24            0
  Profit brought forward           24          59          -60
  Profit/loss for the
  financial year                   39         -15            -
Equity capital, total             513         493            4
Total liabilities              10 836       8 936           21

Off-balance sheet commitments

Million euros               Dec. 31,    Dec. 31,     Change, %
                                1999        1998
Commitments given to a
third party on behalf of a
customer
 Guarantees and pledges          966         934             3
Irrevocable commitments
given in favour of a
customer                       1 082         792            36
Total                          2 048       1 726            19

Assets pledged as collateral on own behalf and on behalf of third parties, plus
the liabilities and commitments for which the collateral has been pledged

Million euros                          Dec. 31,
                                           1999

Assets pledged as collateral for own
liabilities
 Pledges                                  1 741
 Mortgages                                   80

Liabilities and commitments for which
the collateral has been pledged
 Liabilities to the public and
 public sector entities                      27

 Debt securities issued to the public         8

Collateral pledged on behalf of a
 consolidated company
  Pledges                                     8 

Collateral pledged on behalf of others
  Mortgages                                  10

PENSION LIABILITIES

Except for Opstock Ltd, the statutory pension coverage of the staff of OKOBANK
Consolidated has been arranged through the OKOBANK Group Pension Fund.
Supplementary pension benefits have been arranged through the OKOBANK Group
Pension Foundation, except for Opstock Ltd. No new beneficiaries have been
admitted to the foundation after June 30, 1991. The statutory pension coverage
of the staff of OKOBANK Stockholm Branch has been arranged according to
Swedish statutes. The consolidated companies have no direct liabilities rising
from pension commitments. The pension liabilities of the consolidated
companies have been covered in full.

LEASING LIABILITIES

OKOBANK Consolidated's leasing payments in 2000 are EUR 0.2 million, and
during subsequent financial years EUR 0.2 million.

Breakdown of off-balance sheet commitments at the end of the year

Million euros                             Dec. 31,   Dec. 31,
                                              1999       1998

Guarantees                                     470        620
Guarantee commitments                          470        292
Unused standby facilities                      979        758
Other commitments                              129         55
 
Commitments given, total                     2 048      1 726

Off-balance sheet commitments given by OK0BANK to subsidiaries or on behalf of
them stood at EUR 26 million, and to associated companies or on behalf of them
at EUR 2 million.

Sales receivables and accounts payable arising from selling or purchasing of
assets on behalf of a customer

Million euros                             Dec. 31,
                                              1999

Sales receivables                               92
Accounts payable                                88

Derivative contracts in OKOBANK Consolidated

Million euros                  Dec. 31,    Dec. 31,   Change, %
                                   1999        1999
Values of the underlying
instruments
  Futures and forwards            1 893      19 674         -90
  Options
    Purchased                         -           -           -
    Written                           -           -           -
  Interest rate swaps             6 663       6 791          -2
Interest rate derivatives,
total                             8 556      26 465         -68
  Futures and forwards            1 334       5 827         -77
  Options
    Purchased                        20           -           -
    Written                          19         102         -81
  Interest rate and
  currency swaps                    128         136          -6
Currency derivatives,
total                             1 500       6 066         -75
Equity derivatives                    -           -           -
Total                            10 056      32 531         -69

Equivalent credit values 
of the contracts

Interest rate derivatives           116         206         -44
Currency derivatives                 59         103         -43
Total                               175         308         -43


Annual General Meeting and financial information in 2000

The Executive Board has proposed that OKOBANK's Annual General Meeting be held
at the Helsinki Fair Centre on March 29, 2000, at 13.30.

The record date for the payment of dividends is April 3, 2000. The Executive
Board will propose to the Annual General Meeting that the dividend be paid
after the record date on April 10, 2000.

OKOBANK Consolidated will publish its financial statements in week 12.

OKOBANK Consolidated's Interim Report for the January-March period will be
published on May 4, 2000, for January-June on August 17, 2000 and for
January-September on November 2, 2000.

The figures in this financial statement bulletin are unaudited.

OKOBANK Osuuspankkien Keskuspankki Oyj
Executive Board

OKOBANK Osuuspankkien Keskuspankki Oyj


Markku Koponen
Assistant Director


FOR ADDITIONAL INFORMATION, PLEASE CONTACT
Mr Antti Tanskanen, Chairman and CEO of the OKOBANK Group,
tel. +358-9-404 2202
Mr Mikael Silvennoinen, Managing Director of OKOBANK,
tel. +358-9-404 2549

                                                                                                                                                                                 

a d v e r t i s e m e n t