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Okobank Osuuspank. (09IA)

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Thursday 17 August, 2000

Okobank Osuuspank.

Interim Results

Okobank Osuuspankkien Keskuspankki
17 August 2000



OKOBANK INTERIM REPORT JANUARY 1 - JUNE 30, 2000

OK0BANK CONSOLIDATED'S OPERATING PROFIT EXCEEDED TARGETS AND AMOUNTED TO EURO
110 MILLION (EURO 65 MILLION). COMPARABLE GROWTH WAS 56 PER CENT. RETURN ON
EQUITY WAS 29.4 PER CENT (19 PER CENT). EARNINGS PER SHARE WAS EURO 1.67 (EURO
1.00). CREDIT PORTFOLIO, TOTAL DEPOSITS AND ASSETS UNDER MANAGEMENT GREW.
STOCKBROKING TREBLED SINCE LAST YEAR.

- OKOBANK Consolidated reported operating profit for the January June period of
EURO 110 million, an increase of EURO 45 million on the figure a year earlier.
Net income from investments in shares in Pohjola Group Insurance Corporation
improved the result by EURO 35 million.

- The annualised return on equity was 29.4 per cent. The return on equity in the
corresponding period last year was 19 per cent and the full-year figure for 1999
was 16.1 per cent.

- Earnings per share were EURO 1.67, or EURO 0.67 greater than a year earlier.

- The credit portfolio grew by 10.6 per cent to more than EURO 5.2 billion since
the turn of the year, an increase of 21.6 per cent from the end of June 1999.

- Deposits from the public amounted to EURO 1.6 billion at the end of June, up
8.6 per cent since the turn of the year and 17 per cent greater than the figure
a year earlier.

- Assets under management grew by 20 per cent since the turn of the year and
totalled more than EURO 4.2 billion at the end of June. The amount of assets
under management was about 70 per cent larger than it was a year ago.

- Stockbroking amounted to EURO 5 billion, or about three times the figure a
year earlier.

OKOBANK Consolidated key figures

                                       1-6/2000  1-6/1999  Long term
                                                             targets

Operating profit, EURO million            109.9      64.7
Income/expenses ratio                      2.84      1.96       1.80
Return on equity, annualised, %            29.4      19.0       14.0
Return on assets, annualised, %            1.41      1.02
Earnings per share, EURO                   1.67      1.00


                                      June 30,    Dec. 31,
                                         2000        1999

Capital adequacy ratio,  %              12.1        12.5
Capital adequacy ratio by Tier I
own funds, %                             7.3         7.3         7.0
Total assets, EURO billion              11.6        10.8
Credit stock, EURO billion               5.2         4.7
Non-performing and zero-interest
claims, EURO million                    14.4        15.9
Deposits and assets under
 management, EURO billion                5.8         5.0
Staff                                  1 091       1 031

Result

Operating profit EURO 110 million

OKOBANK Consolidated's operating profit in January-June was EUR0 109.9 million,
up EURO 45.1 million on the corresponding period a year earlier. Operating
profit for the current year included net income of EURO 34.8 million from
Pohjola Group shares. Operating profit for the first quarter of 1999 in turn
included a non-recurring capital gain of EURO 16.6 million on a sale of shares,
whereby comparable operating profit improved by EURO 27 million, or 56 per
cent. The earnings trend in all business areas was better than a year ago.

OKOBANK Consolidated's net income from financial operations in January-June
was EURO 60.5 million, up EURO 6.4 million and 11.8 per cent on the first half
of 1999. Net income from financial operations was improved by a more than one
fifth increase in lending since the end of June last year. The growth in
interest expenses slowed down when 0K0BANK, towards the end of 1999,
prematurely redeemed two of its perpetual bond issues in a total amount of USD
250 million.

Commission income amounted to EURO 45.1 million, an increase of EURO 17.4
million, or 63 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 were more than 80 per cent greater    
than a year earlier. The growth of EURO 4.7 million in commission expenses was 
attributable nearly entirely to the costs of securities brokerage.

 Commission income, million euros   1-6/2000   1-6/1999      Change

 Lending                                 4.7        4.4         0.3
 Payment transfers                       7.4        6.5         0.9
 Securities brokerage                   21.8        8.2        13.6
 Securities issuance                     1.7        2.0        -0.3
 Asset management                        4.3        2.4         1.9
 Other commission income                 5.2        4.2         1.0
 Total                                  45.1       27.7        17.4

Net income from securities transactions and foreign exchange dealing totalled
EURO 7.5 million, an increase of EURO 0.4 Million on the same period a year ago.

  Net income from securities        1-6/2000    1-6/1999     Change
  transactions and foreign exchange
  dealing, million euros

  Net income from transactions in
  debt securities                       -2.2        -1.5       -0.7
  Net income from transactions in
  shares                                 6.6         6.3        0.3
  Net income from foreign exchange
  dealing                                3.0         2.3        0.7
  Total                                  7.5         7.1        0.4

Trading in debt securities resulted in a net loss as a consequence of rising
interest rates, as it did in the same period last year. Net income from
transactions in shares and participations increased by EURO 0.3 million on the 
same period a year ago. Unbooked appreciation in the value of listed shares  
amounted to EURO 10.5 million at the end of June. At the turn of the year  
unbooked appreciation totalled EURO 15 million.

Other operating income consisted mainly of dividend and rental income as well
as capital gains on the sale of real-estate properties. Of the EURO 71.5
million total amount of dividend income, EURO 67.5 million came from dividends
and avoir fiscal tax credits on Pohjola Group shares. In consequence of the
sizeable dividends paid by Pohjola a write-down of EURO 32.7 million on the
shares was entered in the profit and loss account item 'Write-downs on
securities held as financial fixed assets.' Sales of real-estate property
yielded capital gains of EUR 6.8 million in the first half of 2000. Income in  
the first half of 1999 included a non-recurring capital gain of EURO 16.6   
million on a sale of shares.

0K0BANK Consolidated's expenses net of commission expenses totalled EURO 61
million, or EURO 4.3 million and 7.6 per cent more than a year ago.
Administrative expenses were up EURO 2.5 million, or 6.5 per cent, on the
previous year. Staff costs accounted for about half of the total amount of
EURO 40.7 million in administrative expenses. Staff costs increased by 7 per
cent. OKOBANK Consolidated had an average payroll of 1 014 employees in
January-June, or 45 employees more than in the corresponding period a year
earlier.

The growth in other operating expenses was attributable mainly to the booking
in January-June of EURO 1.6 million of losses on the sale of real-estate
property.

Owing to reversals, the net effect on earnings of loan and guarantee losses
was a credit of EURO 6.5 million. During the same period of 1999, loan losses
and reversals contributed EURO 1.5 million to earnings.

OK0BANK Consolidated quarterly performance

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

 Net income from financial
 operations                           26   28    26    29    30   30
 Commission income                    13   14    13    25    24   21
 Net income from securities
 transactions and foreign exchange
 dealing                               6    1    -2     5     6    1
 other operating income               25    9     6    10    11   80
 Total income                         71   52    43    69    72  133
 Commission expenses                   3    3     3     6     6    4
 Administrative expenses              18   20    18    21    20   21
 Depreciation and write-downs on
 tangible and intangible assets        3    3     3     7     3    3
 Other operating expenses              6    6     5     6     7    7
 Total expenses                       30   33    29    39    37   35
 Profit before loan losses            41   19    14    29    35   98
 Loan and guarantee losses            -2    0     0     0    -2   -5
 Write-downs on securities held as
 financial fixed assets                0   -1     0     0     0   33
 Share of profit/loss of companies
 included using the equity method      1    1     1     1     1    2
 operating profit                     44   21    15    31    27   72

Total assets EURO 11.6 billion

Consolidated total assets at the end of June stood at EURO 11.6 billion. Total
assets were EURO 0.8 billion greater than at the turn of the year and EURO 2.2
billion more than a year earlier.

  Lending and investments

Credits to the public, including leased property, amounted to a good EURO 5.2
billion at the end of June. This represented an increase since the turn of   the
year of EURO 0.5 billion, or 10.6 per cent, and an increase of more than
EURO 0.9 billion, or 21.6 per cent, since the end of June 1999. Loans to the
public accounted for 44 per cent of OKOBANK Consolidated's total assets at
the end of June. The proportion has remained roughly the same during the last
year.

The amount of non-performing and zero-interest claims at the end of June was
EURO 14-4 million. They decreased by EURO 1.5 million since the turn of the
year and were EURO 5.5 million less than a year earlier. Non-performing and
zero-interest claims accounted for 0.2 per cent of OKOBANK Consolidated's
commitments.

Claims on credit institutions increased considerably. Since the end of last
year they grew by EURO 0.9 billion. The amount of loans granted to the OKOBANK
Group member cooperative banks and capital investments in them was more than
EURO 1.2 billion at the end of June. The amount of these claims grew by EURO 84
million from the turn of the year and by EURO 0.3 billion, or 32 per cent, on
the figure a year earlier.

The amount of debt securities at the end of June was more than EURO 2.2 billion
and they accounted for about a fifth of OKOBANK Consolidated's total assets.
The amount of debt securities at the turn of the year was EURO 722 million
greater because OKOBANK prepared itself for the possibility of liquidity
problems at the turn of the millennium and increased the amount of its debt
securities. The amount of banks, certificates of deposit diminished by about
half from the turn of the year and was EURO 0.8 billion at the end of June.

The book value of shares in real-estate and real-estate corporations
diminished by EURO 75 million since the end of last year and amounted to EURO
166 million at the end of June. The bulk of the decrease was due to the sale  of
shares in the Kiinteisto Oy OKO-Vallila property to the OKOBANK Group    
Pension Foundation. The aggregate book value of other shares grew by EURO 70 
million from the end of last year. This was attributable almost entirely to  
the shares in Pohjola Group which OKOBANK purchased.

 Deposits and other liabilities
                                                                             
The amount of deposits from the public was EURO 1.6 billion at the end of June. 
Deposits increased by EURO 127 million, or 8.6 per cent, from the turn of the
year and by EURO 232 million, or 17 per cent, from the end of June of last
year. Deposits from the public accounted for about 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 EURO 356 million from the end of last year,  
to EURO 858 million. Certificate of deposit liabilities in turn amounted to a
good EURO 3.6 billion at the end of June, an increase of EURO 769 million since
the turn of the year.

Liabilities to credit institutions and central banks were more than EURO 3.2
billion, a decrease of EUR 265 million since the end of last year. Liabilities
to the Bank of Finland diminished by EURO 525 million since the turn of the
year and were EURO 11 million. The member cooperative banks, share of   
liabilities to credit institutions and central banks was EURO 2.5 billion at
the end of June, or 77 per cent.

 Off-balance sheet items

The amount of guarantees and other off-balance sheet commitments at the end of
June was EURO 2.2 billion, or EURO 183 million greater than at the turn of the 
year and EURO 364 million greater than a year earlier. Compared with the end
of last year the biggest growth was in unused standby facilities, which
include, among other things, loans granted but not drawn down and the unused
amount of cheque accounts with an overdraft facility. The amount of unused
standby facilities grew by EURO 183 million since the end of last year and was
nearly 1.2 billion.

The value of the underlying instruments of derivative contracts diminished
further during the first half of the year. The aggregate value of underlying
instruments was slightly less than EURO 8.9 billion at the end of June, which
was EURO 1.2 billion less than at the turn of the year. The reduction was
attributable to forward rate agreements and currency forward contracts. Since
the end of June of last year, the value of the underlying instruments of
derivative contracts decreased by about EURO 6 billion, or by 40 per cent. The
credit countervalue of derivative contracts was EURO 111 million, or EURO 63
million less than at the turn of the year and EURO 167 million less than a year
earlier.

  Capital adequacy 12.1 per cent

OKOBANK Consolidated's capital adequacy ratio at the end of June was 12.1 per
cent, or 0.4 percentage point lower than at the turn of the year. The ratio of
Tier I own funds to the total amount of riskweighted items was 7.3 per cent,
or the same as at the end of last year. Tier I own funds include the net
profit for the report period less the imputed dividend payout. The capital
adequacy ratio was weakened by the growth of EURO 607 million, or 10 per cent,
in risk weighted items since the end of last year.

  Million euros                     June 30,   June 30,    Dec. 31,
                                        2000       1999        1999
  own funds
   Tier 1                                496        465         448
   Tier II                               355        465         355
   Deductions                            -36        -36         -36
   Tier III                                          11           -
  Total                                  815        904         767

  Risk-weighted receivables,
  investments and off-balance sheet
  items                                6 763      5 647       6 156
  Capital adequacy ratio,               12.1       16.0        12.5
  Tier I funds/Risk-weighted items,
  total, %                               7.3        8.2         7.3

  Review by business area

The results of all the business areas improved on the previous year. Net
income from investments in shares in Pohjola Group increased other operational
income substantially. This meant that the largest business areas accounted for
a clearly smaller share of both OKOBANK Consolidated's income and operating
profit than they did in 1999.

  Operating profits by divisions                       Percentage of
                                              consolidated operating
                                                              profit
                                     1-6/2000   1-6/2000       1999
                                    EURO million     %          %

  Corporate Banking                      30.5         28         31
  investment Banking                      8.5          8          8
  Retail Banking                         14.4         13         16
  Group Treasury                         21.3         19         33
  Other operations                       25.1         32         10
  Total                                 109.9        100        100
                                                 
  Corporate banking

OK0BANK Consolidated's corporate banking is handled through the parent bank,
OKOBANK, together with OKO Mortgage Rank plc, OP-Finance Ltd and OKO-Venture
Capital Ltd. The Corporate Banking division offers corporate customers
financing, payment transfer and cash management services as well as services
connected with the money, capital and foreign exchange markets.

The development of electronic banking services is the Corporate Banking
division's most important area for capital expenditures in 2000. The strategy
for developing the corporate financing web services was announced in March.
In May OKOBANK became the first bank in Finland to put subscriptions of bonds
issued on the retail market on its website. In July the division introduced a
 service which enables corporate customers to engage in real-time currency and 
money market dealing from their own workstations. Many of the Group member  
banks are already users of this service, too.

  Operational result

                                     1-6/2000    1-6/2000       1999
                                  EURO million         %          %

  Income/percentage of consolidated
  income                                   42          21         30
  operating profit/percentage of
  consolidated operating profit          30.5          28         31
  Return on allocated capital                        14.4        8.5
  Risk-weighted claims and
  commitments/percentage of
  consolidated risk-weighted claims
  and commitments                       4 460          66         68

                                       Number           %         %

  Staff/percentage of consolidated
  staff                                   339          31         31

                                     June 30,    June 30,   Dec. 31,
                                         2000        1999       1999

  Credit stock, EURO million            3 743       3 099      3 453

The Corporate Ranking division reported operating profit in the first half of
the year of EURO 30.5 million, compared with EURO 34.5 million for the full
year 1999. The share of OKOBANK Consolidated's operating profit was 3
percentage points less than in 1999.

Income showed positive development. The good trend in income was attributable
to the substantial growth in net income from lending as well as from          
commission income. The net effect of loan losses and reversals was a credit to
income of EURO 5.8 million.

The amount of risk-weighted commitments grew by EURO 273 million from the
beginning of the year, an increase of 6.5 per cent. The annualised return on
allocated capital improved by 5.9 percentage points and was 14.4 per cent for
the first half of the year.

  Financing services

Demand for financing services remained buoyant in January-June. The aggregate
portfolio of loans and leasing contracts of OKOBANK, OKO Mortgage Bank and
OP-Finance was EURO 3 743 million at the end of June. The figure represents
growth of 21 per cent from the end of June of the previous year and a good 8
per cent since the turn of the year. The 12-month growth in the portfolio of
finance company credits was 29 per cent and that of other credits 18 per
cent.

Non-performing and other zero-interest credits amounted to EURO 5.4 million at
the end of June, representing 0.13 per cent of the credit portfolio. The
amount at the end of 1999 was EURO 5.2 million, or 0.14 per cent of the credit
portfolio.

EURO 252 million in funds was obtained for customers through debt issues,
exceeding the amount of funds obtained all last year by 10 per cent. As
measured by the number of issues and funds raised, OKOBANK was Finland's
second largest arranger of debt issues in the first part of the year.

 Cash management services

The number of outgoing and incoming payment transactions handled in the
January-June period exceeded 38 million, up 12.6 per cent on the same period
last year. The payment transactions handled amounted to EURO 28.8 billion, an
increase of 28 per cent on the previous year.

  Money, capital market and foreign exchange services

Volume of money market products, bonds and customer dealings involving
foreign exchange products in the first half of the year totalled EURO 43.2
billion, up 22 per cent on the previous year.

  Outlook

Corporate Banking's earnings in July-December are estimated to be on a par
with the first half of the year.

 Investment banking

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

  Operational result

                                       1-6/2000  1-6/2000        1999           
                                 EURO million      %              %

 Income/percentage of consolidated
 income                                  13.4           7           8
 Operating profit/percentage of
 consolidated operating profit            8.5           8           8 
 Return on allocated capital                         94.9        61.8

                                       Number        %             %

 Staff/percentage of consolidated
 staff                                    113          10           9

                                     June 30,    June 30,    Dec. 31,
                                         2000        1999        1999

 EURO million

 Client funds under management          4 249       2 523       3 539
 Shares brokered, from the
 beginning of the year                  4 983       1 630       4 432

 The investment banking result improved markedly. operating income in the first
 half of the year was EURO 8.5 million, an increase of EURO 5.8 million on the
 previous year.

 Commission income received by Opstock amounted to more than EURO 23 million,
 increasing by 129 per cent on the first half of last year. Commission expenses
 in turn were up 145 per cent to EURO 9.2 million. The share of OKOBANK
 Consolidated's income represented by investment banking operations, adjusted
 for commission expenses, was 7 per cent.

 As a consequence of the growth in operations, non-commission expenses
 increased by a million euros, or by more than a quarter compared with the
 first half of last year and amounted to EURO 4.8 million.

 The annualised return on capital allocated to investment banking was 94.9 per
 cent, which was 33.1 percentage points better than the full-year yield in 1999.

 Asset management

 The amount of client assets under management by Opstock Asset Management was
 EURO 4 249 million at the end of June. The volume of client assets continued
 its fast growth and was 20 per cent more than at the end of 1999 and 68 per
 cent greater than at the end of June 1999. The increase was due mainly to the
 growth in assets invested in the OKOBANK Group's mutual funds and life
 assurance policies. During the report period four new mutual funds started up,
 the three newest of which are sectoral funds.

 Stockbroking

 Equities brokerage on Helsinki Exchanges remained very brisk in January-June
 2000. Trading volumes in May and June nevertheless declined somewhat. The
 volume of brokerage an the equity market was three times the figure reported
 for the first half of 1999. Opstock's  share brokerage in the first half of    
the year amounted to EURO 5 billion and its market share was 4.2 per cent. In  
the same period last year it had a 4.1 per cent market share.

 In June already 55 per cent of households' brokerage orders came in over the
 Internet. The proportion of orders placed over the Internet has grown quite
 rapidly, having been 29 per cent in 1999. 

 Corporate finance

 In the first half of the year Opstock Corporate Finance played an active role
 in Private Placement and M&A transactions. The company was the lead manager in
 the successful IPO of Wecan Electronics Oy. 

 Private banking

 Private banking activities focusing on asset management for private
 individuals were started together with Okopankki in June. Opstock Private
 offers services for private individuals in the Greater Helsinki area who have
 a need for discretionary and integrated asset management. In co-operation with
 Okopankki, Opstock Private offers its clients not only asset management
 expertise but also complete account, loan and payment transfer services.

 In order to keep the strong growth in operations well under control, in the
 current year opstock has continued its programme of improving the
 functionality of systems and processes. As a consequence of the expansion of
 operations and the growth in volumes, Opstock's staff increased from 83
 employees at the turn of the year to 113 employees at the end of June. 

Outlook

 The volume of stockbroking is estimated to be smaller in the latter part of
 the year than it was in January-June. Accordingly, the Investment Banking
 division's result in July-December is likely to fall somewhat short of the
 figure for January-June. 

Retail banking

 Retail banking operations within OKOBANK Consolidated are handled by Okopankki
 Oyj, which offers comprehensive banking services for retail customers as well
 as small and medium-sized corporate customers in the Greater Helsinki area.

 Operational result

                                    1-6/2000   1-6/2000       1999
                             EURO   million          %          %

 Income/percentage of consolidated
 income                                 32.7         17         24
 operating profit/percentage of
 consolidated operating profit          14.4         13         18
 Return on allocated capital                       30.6       22.5
 Risk-weighted claims and
 commitments       
 /percentage of
 consolidated risk-weighted claims
 and commitments                          1 005         15          15

                                         Number          %           %

 Staff/percentage of consolidated
 staff                                      503         46          47

                                       June 30,   June 30,    Dec. 31,
                                           2000       1999        1999
 EURO million

 Credit stock                             1 315      1 072       1 218
 Deposits                                 1 162      1 044       1 151
 Brokered mutual fund investments
 and life assurance policies                196        116         125

 Operating profit from retail banking showed positive development in the first
 half of the year and was EURO 14.4 million. Its share of OKOBANK               
Consolidated's operating profit nevertheless fell by 5 percentage points from  
the figure in 1999.

 Income amounted to EURO 32.7 million and its share of 0K0BANK Consolidated's
 total income was 7 percentage points smaller than it was for the full year in
 1999. More than two thirds of the income consisted of net income from
 financial operations and 28 per cent came from commission income. The growth
 in income was attributable to the increase in net income from financial
 operations and commission income. Net income from financial operations was
 improved by the growth in lending as well as the wider interest rate spread
 between the credit portfolio and total deposits. Commission income was boosted
 in particular by the continued brisk pace of stockbroking.

 Expenses increased by 6 per cent compared with the first half of 1999. The
 growth in the number of personnel owing to expanding operations increased
 staff costs by 7 per cent, and volume growth in turn lifted data processing
 costs by 13 per cent. EURO 0.4 million of loan losses was booked.

 The annualised return on capital allocated to retail banking improved markedly
 and was 30.6 per cent in January-June, as against 22,5 per cent in 1999.

 Customers

 The number of Okopankki's customers grew further during the first half of the
 year, rising by slightly less than 3 per cent. The total number of customers
 was about 246 400. The number was 7 per cent greater than a year ago.

 In February the services offered by Okopankki improved with the addition of
 OKOBANK Group-developed WAP services incorporating the most recent level of
 security. These include monitoring of account transactions and the Visa Card
 situation, transfers to and from account as well as payment of bills by means
 of a WAP phone.

 In June the OKOBANK Group became the first bank in Finland to introduce an
 electronic ID code in its web services. Electronic verification and signatures
 make it easier to use banking services.

 The number of Okopankki's electronic banking service contracts with retail
 customers was 13 per cent greater at the end of June than it was at the start
 of the year. The number of GSM and WAP service contracts grew by 31 per cent
 in January-June. The aggregate number of electronic, GSM and WAP service
 contracts was about 86 000. In addition, some 4 300 corporate customers
 handled their payment transfers by means of the Opnet service.

 Lending

 Lending developed well, as it did in the previous year. New loans amounting to
 EURO 293 million were drawn down in the January-June period. The amount was
 more than 10 per cent greater than during the first half of 1999. The credit
 portfolio at the end of June stood at EURO 1 315 million, up 8 per cent on the
 end of 1999 and nearly 23 per cent greater than at the end of June of last
 year. The fall in spreads on new lending, which continued throughout all of
 last year, came to a halt in the current year.

 Non-performing and zero-interest loans amounted to EURO 5.3 million at the end
 of June, representing 0.4 per cent of the credit portfolio. The relative share
 was at the same level as at the end of 1999.

 Deposits and asset management

 Total deposits at the end of June stood at EURO 1 162 million, an increase of
 EURO 11 million since the turn of the year and up 11 per cent on the previous
 year. The aggregate amount of brokered mutual fund investments and life
 assurance policies was EURO 196 million at the end of June, an increase of 31
 per cent since the end of 1999 and 68 per cent greater than at the end of June
 last year.

 Outlook

 Retail Banking is estimated to reach the same level of earnings in the latter
 part of the year as it did in January-June.

 Group Treasury

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

 Operational result

                                    1-6/2000   1-6/2000       1999
                            EURO    million       %            %

 Income/percentage of consolidated
 income                                 28.4         14         23
 Operating profit/percentage of
 consolidated operating profit          21.3         19         33
 Return on allocated capital                       35.1       30.9
 Risk-weighted claims and
 commitments/percentage of
 consolidated risk-weighted claims
  and commitments                      1 283          19         20

                                      Number        %             %

  Staff/percentage of consolidated
  staff                                  102           9         10

  Central banking operations

                                    June 30,   June 30,   Dec. 31,
                                        2000        1999       1999
  EURO million
  Capital investments to and
  perpetual bonds of the member
  banks                                  214         237        226
  other credits to the member banks    1 057         740        960

  Member banks, minimum reserve and
  cash reserve deposits                1 749       1 710      1 738
  member banks, other deposits           762         563        674

  OK0BANK's net liabilities to the Group member cooperative banks totalled EURO
  1 240 million at the end of June. The figure grew by EURO 14 million from the
  end of 1999 but was down EURO 56 million on the corresponding date of the
  previous year. The aggregate amount of credits, capital investments and
  perpetual bonds granted to the member cooperative banks grew by EURO 84
  million from the turn of the year, or by 7 per cent. The amount of these
  claims at the end of June was EURO 1 271 million. The amount of the member
  cooperative banks, deposits with OKOBANK was EURO 2.5 billion, an increase of
  EURO 97 million and 4 per cent since the end of last year.

  Funding and investments

  Investments in foreign bonds were increased by EURO 87 million from the end   
 of 1999, to EURO 671 million. The amount of such investments was 15 per cent
  greater than at the turn of the year and 53 per cent greater than a year ago.

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

  Income from sales of shares and changes in valuation totalled EURO 6.7        
 million in January-June. Income for the same period a year ago was EURO 6.2    
million. At the end of June unbooked appreciation in share values amounted to  
EURO 10.5 million. The amount of dividends and avoir fiscal tax credits in     
January-June was EURO 2.9 million.

  Outlook

  Owing to increased uncertainty in the equity market, the division's result in
  the second half of the year is estimated to be lower than it was in the first
  half.

  Other operations

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

  Operational result

                                     1-6/2000   1-6/2000       1999
                              EURO   million          %          %

  Income/percentage of consolidated
  income                                 80.5         41         15
  Operating profit/percentage of
  consolidated operating profit          35.1         32         10
  Return on allocated capital                       76.6

                                        Number        %          %

  Staff/percentage of consolidated
  staff                                    34          3          4

  Property business

 During the current year, the objective of OK0BANK Consolidated's property
 business is to boost the yield on real-estate investments and to reduce the
 amount of capital invested in real-estate holdings. in the first half of the
 year, 21 properties were sold. The amount of capital tied up in properties
 diminished by EURO 90 million since the turn of the year and totalled EURO 202
 million at the end of June. The net capital gain on these deals was EURO 5.2
 million.

 The net yield from properties not in own use rose to 6.3 per cent at the end
 of June. At the end of 1999 it was 5.9 per cent. At the end of June unleased
 premises amounted to 3 000 square metres, or nearly 6 600 square metres less
 than at the end of last year. The vacancy rate dropped to 3 per cent, from 9
 per cent at the end of 1999.

 The amount of capital invested in real-estate holdings in the Bank's own use
 diminished by EURO 89 million from the end of last year and was EURO 36        
million at the end of June. The decrease was due to the sale by 0K0BANK in May 
of its head office property to the OKOBANK Group Pension Foundation. The head  
office property consists of Kiinteisto Oy OKO-Vallila and Kiinteisto Oy        
PaijAnteentie 12. The deal generated a capital gain of more than EURO 2        
million.

 Other operations

 OKOBANK Consolidated's earnings include EURO 2.6 million from the result of
 Aurum Life Assurance Company. The Company's premiums written increased by 186
 per cent on the first half of 1999, rising to EURO 230 million, and the        
balance on technical account grew by 41 per cent to EURO 7.6 million.

 The share of OP-Kotipankki Oyj's profit included in the consolidated result
 was EURO 0.6 million. Op-Kotipankki's operating profit was EURO 1.9 million,   
up 26 per cent on the previous year. The credit portfolio grew by 50 per cent
 from the end of 1999, reaching EURO 126 million, whereas total deposits
 diminished by 21 per cent to EURO 54 million.

 At the end of 1999 OKOBANK formed a co-operation alliance together with
 Ilmarinen Mutual Pension Insurance Company, Suomi Mutual Life Assurance
 Company, A-Vakuutus Mutual insurance Company and Pohjantahti Mutual Insurance
 Company. Accordingly, in January OKOBANK purchased shares in Pohjola Group
 Insurance Corporation from Suomi Mutual Life Assurance Company, and it made a
 similar purchase of these shares in May from Ilmarinen Mutual Pension
 Insurance Company. Following these deals, the shares owned by OKOBANK
 represent 3.2 per cent of Pohjola Group's share capital and 4,6 per cent of
 the voting rights. In April-June OKOBANK received EURO 67.5 million in         
dividends and avoir fiscal tax credits on its Pohjola Group shares. Following  
the payment of dividends, OKOBANK booked a write-down of EURO 32.7 million on  
the shares.

 Following the ownership arrangements carried out in May and June, the alliance
 began studying ways of creating more closely knit operational co-operation. in
 April Ilmarinen mutual Pension Insurance Company and the OKOBANK Group entered
 into an agreement on the marketing and sale of statutory employees' pension
 insurance (TEL) and self-employed personal pension insurance (YEL) policies
 through the branch offices of Okopankki Oyj and the member cooperative banks.

 The parent bank, OKOBANK

 OKOBANK's operating profit in the January-June period was EURO 98.6 million,
 compared with EURO 60.7 million in the first half of last year. The operating
 profit figure for the current year includes EURO 34.8 million of net income on
 investments in shares in Pohjola Group. A year earlier, operating profit
 included a non-recurring gain of EURO 16.6 million on a sale of shares.

 Net income from financial operations was EURO 28.8 million, an increase of 
 EURO 3.2 million on the previous year. Other operating income was up EURO 65.5
 million on the same period a year earlier.

 Total expenses increased by EURO 1.1 million. The net effect on earnings of
 loan and guarantee losses was a credit to income of EURO 5.4 million. A
 write-down of EURO 32.7 million was booked on Pohjola Group shares.

 OKOBANK's total assets at the end of June stood at slightly less than EURO 9.9
 billion. Since the turn of the year total assets grew by EURO 632 million, or
 6.8 per cent, and from the end of June last year by EURO 1.9 billion, or 24    
per cent. The amount of loans to the public at the end of June was slightly    
less than EURO 2.1 billion. The credit portfolio grew by EURO 274 million, or  
15.3 per cent, from the turn of the year and by EURO 406 million, or 24.4 per  
cent from the end of June 1999. Non-performing and zero-interest claims        
amounted to EURO 3.5 million, down EURO 0.6 million since the end of 1999.     
OKOBANK's capital adequacy ratio was 14.7 per cent. The Bank had a payroll of  
331 employees at the end of June.

 Credit ratings

 OKOBANK's credit ratings from international credit rating agencies have not
 changed after the turn of the year.

 Rating Agency             Short-term debt     Long-term debt

 Standard & Poor's             A-2
 Moody's                       P-1                 Al
 Fitch IBCA                     F1                 A

 OKOBANK's equity capital

 In January OKOBANK's Executive Board approved the conversion requests made to
 it according to the relevant provision of the Articles of Association
 concerning the conversion of 15 813 392 Series K shares to the same number of
 Series A shares. Thereafter the number of Series A shares quoted on Helsinki
 Exchanges rose to 34 765 112, representing 74.4 per cent of OKOBANK's entire
 shares outstanding and 36.8 per cent of the voting rights.

 At the end of June OKOBANK's largest shareholder was the OKOBANK Group Central
 Cooperative, which held 41.3 per cent of OKOBANK'S shares and 55.5 per cent of
 the voting rights.

 Supervisory Board and authorisation granted to it

 OKOBANK's Annual General meeting held on March 29, 2000, elected a new
 Supervisory Board for the Bank. At its organisation meeting held on the same
 day the Supervisory Board re-elected Seppo Penttinen as its chairman and
 likewise re-elected Paavo Haapakoski as its vice chairman.

 In accordance with the proposal of the Bank's Executive Board, the Annual
 General Meeting authorised the Supervisory Board, for one year from the Annual
 General Meeting, to decide on increasing the share capital through a rights
 issue, the floating of an issue of convertible bonds and/or the granting of
 share options. The aggregate number of the new Series A shares to be
 subscribed for on the basis of the authorisations can be a maximum of 12
 million shares and the aggregate number of new Series K shares can be a
 maximum of 4 million shares.

 The authorisation also includes the right to disapply shareholders,
 pre-emptive right to subscribe for new shares, convertible bonds and share
 options. Shareholders' pre-emptive right to subscribe for new shares can be
 disapplied only in the interest of ensuring the Bank's capital adequacy or in
 connection with corporate or industry-wide structural arrangements if the Bank 
has a weighty economic reason for doing so. A decision may not be taken on     
behalf of parties closely associated with the Bank. The valid unused           
authorisations can in this case correspond, in respect of the total amount of  
the increases and the total amount of the votes conferred by the shares        
issued, to a maximum of one fifth of the registered share capital and total    
votes conferred by the shares at the time of the authorisation resolution of   
the general meeting of shareholders and the Supervisory Board's decision to    
increase the share capital.

 The Supervisory Board was authorised to decide on those entitled to subscribe
 for shares, the subscription price and the other terms and conditions of
 subscription. The Supervisory Board has not exercised the authorisation
 granted to it.

 Major subsidiaries

 Okopankki Oyj reported operating profit of EURO 15 million,up EURO 4.5 million
 on the same period a year ago. The income/expenses ratio was 1.80 as against
 1.59 a year earlier. Total assets grew by EURO 104 million from the end of     
last year and stood at EURO 1 671 million at the end of June. The capital      
adequacy ratio was the same as at the turn of the year, or 9.3 per cent. At    
the end of June Okopankki had a staff of 503 employees.

 Opstock Ltd posted operating profit of EURO 8.5 million, an increase of 
 EURO 5.6 million on the figure a year ago. The income/expenses ratio was 1.61, 
or 0.25 better than during the corresponding period last year. At the end of   
June the Company employed 113 people.

 OP-Finance Ltd's operating profit was EURO 7.4 million,up EURO 1.8 million on
 the same period last year. The income/expenses ratio was 1.93, as against 1.88
 a year earlier. Total assets at the end of June stood at EURO 1 021 million,
 growing by EURO 66 million since the turn of the year. The capital adequacy
 ratio was 9.8 per cent, having been 9.6 per cent at the end of last year.
 OP-Finance Ltd had a payroll of 135 employees at the end of June.

 OKO Mortgage Bank plc reported operating profit of EURO 3.4 million, the same
 figure as a year earlier. The income/expenses ratio was 2.74, compared with
 3.43 during the corresponding period of 1999. OKO Mortgage Bank had total
 assets at the end of June of EURO 920 million, an increase of EURO 29 million
 since the turn of the year. The capital adequacy ratio was the same as at the
 end of 1999, or 16 per cent. OKO Mortgage Bank had a staff of 8 employees at
 the end of June.

 In June 0K0BANK's Executive Board and the Board of Directors of OKO Mortgage
 Bank plc decided on a merger plan according to which OKO Mortgage Bank will
 merge with OKOBANK on December 31, 2000.

 Full-year outlook

 OKOBANK Consolidated's first-half operating profit exceeded targets.
 Comparable operating profit adjusted for non-recurring items was also better
 than forecast. The factors affecting the positive trend were the growth in net 
income from financial operations and other income as well as reversals on loan 
losses.

 In July-December operating profit is expected to be somewhat lower than the
 first-half result adjusted for non-recurring items. OKOBANK Consolidated's
 full-year operating profit will nevertheless be substantially larger than it
 was in 1999. The earnings estimate is based on the assumption that the trend
 in the national economy remains positive without major disturbances.

 Consolidated profit and loss account

 Million euros                     1-6/00 1-6/99  Change,% 1-12/99
 
 Interest income                      223    174        28     349
 Net leasing income                     5      3        35       7
 Interest expenses                    167    124        35     247
 Net income from financial
 operations                            60     54        12     109
 Income from equity investments        72      3                 4
 Commission income                     45     28        63      66
 Commission expenses                   11      6        78      15
 Net income from securities
 transactions                           4      5        -8       6
 Net income from foreign exchange
 dealing                                3      2        34       4
 Other operating income                20     31       -35      46
 Staff costs                           21     20         7      40
 Other administrative expenses         20     19         6      37
 Depreciation and writedowns on
 tangible and intangible assets         6      6         3      16
 Other operating expenses              14     12        14      23
 Loan and guarantee losses             -7     1                -2
 Write-downs on securities held as
 financial fixed assets                33     -1                -1
 Share of profit/loss of companies
 included in the consolidated
 accounts using the equity method       3      2                 5
 Operating profit                     110     65        70     111
 Extraordinary income                   -      -                 -
 Extraordinary expenses                 -     -29               -57
 Income taxes of extraordinary
 items                                  -      8                16
 Profit/loss after extraordinary
 items                                110     44                70
 Income taxes                          31     18                30
 Share of profit/loss for the
 financial period attributable to
 minority interests                     1      0                 1
 Profit for the financial period       78     26                39
 
 Financial ratios                  1-6/00   1-6/99   1-12/99
 Earnings per share (EPS), euros     1.67   1.00      1.72
 Equity per share, euros            11.94  10.67     10.97
 Return on equity, (ROE), %
 (annualised)                         29.4    19.0     16.1
 Return on assets, (ROA), %
 (annualised)                         1.41    1.02     0.82
 Income to expenses ratio             2.84    1.96     1.80
 Staff on average                    1 014     969      964

 In calculating financial ratios in the interim financial statement, taxes
 constitute the taxes on the profits for the period under review.

 Calculation of financial ratios

 Earnings per share 
 Operating profit less the minority interest share of the
 profit for the financial period less taxes divided by the share issue-adjusted
 average number of shares during the financial period.

 Equity per share 
 Equity capital and voluntary provisions and the depreciation
 difference less imputed taxes due and minority interest at the end of the
 financial period divided by the share issue-adjusted number of shares at the
 end of the financial period.

 Return on equity 
 The annualised operating profit less taxes divided by the
 total amount of the average equity capital, minority interests as well as
 voluntary provisions and the depreciation difference less imputed taxes due at
 the beginning and end of the period.

 Return on assets 
 The annualised operating profit less taxes divided by the
 average total assets at the beginning and end of the period.

 Income/expenses ratio 
 The sum, shown in the profit and loss account, of net
 income from financial operations, income from equity investments, commission
 income, net income from securities transactions and foreign exchange dealing
 as well as other operating income divided by the sum of commission expenses,
 administrative expenses, depreciation and other operating expenses.

 Consolidated balance sheet

 Million euros               June 30,  June 30,     Change,% Dec. 31,
                                 2000      1999                  1999
 
Liquid assets                    564       155                   601
 Debt securities eligible
 for refinancing with
 central banks                  1 025        613       67       1 791
 Claims on credit
 institutions                   2 709      2 068       31       1 784
 Claims on the public and
 public sector entities         5 050      4 158       21       4 561
 Leasing assets                   190        150       27         178
 Debt securities                1 213      1 428     - 15       1 170
 Shares and participations        148         76        94         79
 Participating interests           55         53         5         55
 Shares and participations
 in consolidated companies          8          6        41          7
 Consolidated goodwill              0          0       -39          0
 other intangible assets           12         10        12          9
 Tangible assets                  176        264       -33        257
 Other assets                     365        333        10        257
 Accrued income and
 prepayments                       86        106       -19         86
 Total assets                  11 602      9 420        23     10 836

 Liabilities to credit
 institutions and central
 banks                          3 248      2 817        15      3 513
 Liabilities to the public
 and public sector entities     2 016      1 814        11      2 356
 Debt securities issued to
 the public                     4 617      2 939        57      3 494
 other liabilities                596        589         1        483
 Accrued expenses and
 referred income                  143        86        65         57
 Compulsory provisions              1         1        18          1
 Subordinated liabilities         410       663       -38        404
 imputed taxes due                 13        10        30         13
 Minority interests                 2         1                    2
  Share capital                   196       196                  196
  Share issue account               -         0                    -
  Share premium account             1         0                    1
  Revaluation reserve              25        25                   25
  Other restricted
  reserves                        203       203                  203
  Non-restricted reserves          23        24                   24
  Profit brought forward           31        24                   24
  Profit for the financial
  period                           78        26                   29
 Equity capital, total            558       499        12        513
 Total liabilities             11 602     9 420        23     10 836

 Off-balance sheet commitments

 Million euros               June 30,  June 30,  Change,%   Dec. 31,
                                 2000      1999                 1999

 Commitments given to a
 third party on behalf of a
 customer
 Guarantees and pledges           998       929         7        966
 Irrevocable commitments
 given in favour of a
 customer                       1 233       937        32      1 082
 Total                          2 231     1 867        20      2 048

 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                         June 30,   June 30,  Dec. 31,
                                           2000       1999      1999
 Assets pledged as collateral for own
 liabilities
  Pledges                                 1 105      1 066     1 741
  Mortgages                                   -          -        80
 
 Liabilities and Commitments for which
 the collateral has been pledged
  Liabilities to credit institutions
  and central banks                          21         28         -
  Liabilities to the public and
  public sector entities                     30         97        27
  Debt securities issued to the public        8         12         8
 
 Collateral pledged on behalf of a
 consolidated company
  Mortgages                                   5          3         8
 
 Collateral pledged on behalf of others
  Pledges                                     1          -         -
  Mortgages                                  10         10        10

 Off-balance sheet commitments

 Million euros                         June 30,   June 30,  Dec. 31,
                                           2000       1999      1999
 Guarantees                                 442        501       470
  on behalf of subsidiaries                   0          0         0
  on behalf of associated
  companies                                   0          -         0
 Guarantee commitments                      521        406       470
  on behalf of subsidiaries                   1          1         1
  on behalf of associated companies           1          1         1
 Unused standby facilities                1 162        893       979
  for subsidiaries                           66         14        25
  for associated companies                    2          1         2
 Other commitments                          105         67       129
 
 Commitments given, total                 2 231      1 867     2 048
 
 Commitments given for subsidiaries or
 on behalf of them, total                    69         18        26
 Commitments given for associated
 companies or on behalf of them, total        2          2         2

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

 Million euros                          June 30,  June 30,   Dec. 31,
                                           2000       1999      1999
 Sales receivables                           74         55        92

 Accounts payable                            79         58        88

Derivative contracts in OKOBANK Consolidated

Million euros                 June 30,  June 30,  Change,%    Dec. 31,
                                 2000      1999                 1999
Values of the underlying
instruments
   Futures and forwards          1 075     5 860       -82      1 893
   Options
     Purchased                       -         -                    -
     Written                         -         -                    -
   Interest rate swaps           6 931     6 656         4      6 663
Interest rate derivatives,
total                            8 007    12 516        -36     8 556
   Futures and forwards            644     2 095        -69     1 334
   Options
     Purchased                      48        66       -28         20
     Written                        46        87       -47         19
   Interest rate and
   currency swaps                  113        78        46        128
Currency derivatives,
total                              851      2 324      -63      1 500
Equity derivatives                   -         -                    -
other derivatives                    8         -                    -
Total                            8 866     14 840      -40     10 056

Equivalent credit values of the contracts

Interest rate derivatives           85       153      -45        116
Currency derivatives                27       125      -79         59
Total                              ill       278      -60        175

other contingent liabilities and commitments

OKOBANK's commitments to venture capital funds at June 30, 2000, were EURO 24.5
million. The above-mentioned commitments are included in the section
'Off-balance sheet commitments'.

This Interim Report has been prepared in accordance with the directive of the
Financial Supervision entitled 'Guideline on interim reports of credit
institutions whose shares are subject to public trading' (18/410/98) in
disapplication of the decision of the Ministry of Finance on the obligation of
an issuer of securities to publish information on a regular basis. The
Accounting Board has granted an industry specific exemption (1999/1554)
enabling observance of the directive mentioned.

The figures in the Interim Report are unaudited.

The Interim Report of OKOBANK for January-September 2000 will be published on
November 2, 2000.


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