1

Pohjola November 2008 2 OP-Pohjola Group & Pohjola Bank in brief

• The leading financial services company in - with a strong diversified presence in • Retail and corporate banking • • Mutual Funds and Asset Management

• Market position 1. or 2. in all key areas

• One of the highest rated banks in Europe (AA-/Aa1/AA-; all stable)

• Characterised by • a strong capital position • stable earnings • strong liquidity • low loan loss provisions • no SIV exposure, low risk exposure in bond portfolios 3

Finnish Economy 4

Change in GDP volume

8 %

6 United States 4

2

0

-2 Eurozone -4 Finland -6

-8 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f

Source: Reuters EcoWin 5 Trade balance and current account in Finland 12-month moving total

20 EUR billion

15 Trade balance

10

5 Current account

0

-5 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08f 09f

Source: Bank of Finland 6 Harmonized index* of consumer prices annual change

6 % * except United States 5 United States 4

3

2

1 Eurozone Finland 0

-1 97 98 99 00 01 02 03 04 05 06 07 08

Source: Reuters EcoWin 7 Unemployment rate in Finland 25 %

20

15

10

5

0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

Source: Statistics Finland 8

Average House Prices

Average house prices Average house prices

300 Index 450 Index 1996=100 Sweden 400 1996=100 250 Ireland 350

200 300 Netherlands Great Britain Spain 250 United States 150 Finland 200 Finland 150 100 France 100

50 50 96 97 98 99 00 01 02 03 04 05 06 07 08 96 97 98 99 00 01 02 03 04 05 06 07 08 Source: Reuters EcoWin Sources: Reuters EcoWin, Statistics Sweden n 9

Finnish Financial Industry 10 OP-Pohjola Group's market share of households' housing loans 36 %

35

34

33

32

31

30 3/05 9/05 3/06 9/06 3/07 9/07 3/08 9/08 11

Market Shares 31 December 2007

% Deposits % Loans 40 40

35 35

30 30

25 25

20 20

15 15

10 10

5 5

0 0 OP- Danske Savings Local Aktia Others Nordea OP- Danske Handels- Savings Aktia Others Pohjola Bank Bank Cooper. Savings Pohjola Bank banken Bank Savings Banks Bank Bank 12 Mutual fund companies´ market shares 1998 - 2008 35 %

30

25 Latest data 9/2008 20

15

10

5

0 Nordea OP- Danske SEB Evli Glitnir Others Pohjola Bank Gyllenberg Group Source: Finnish Association of Mutual Funds 13 Market shares in life insurance Gross premiums written 2007 35 % 30,7 30

25 23,4 21,7 20

15 9,8 10 7,2 7,2 5

0 OP-Pohjola Nordea Sampo* Skandia Tapiola Others Group * Sampo Life and Kaleva 14 Market shares of non-life insurance premiums written 2007 Domestic direct insurance 35 %

30 27,3 26,5 25 20,8 20

15 10,5 10 8,6 6,3 5

0 OP-Pohjola If Tapiola** Fennia Local Other Group* Insurance*** Source: Federation of * Pohjola Non-Life, A-Insurance, Eurooppalainen and OVY ** incl. Turva *** incl. Palonvara Finnish Financial Services 15

OP-Pohjola Group

Structure, strategies and financial performance 16

The Structure of OP-Pohjola Group and Pohjola Bank Group

RetailRetail Bank Bank inin HelsinkiHelsinki Area Area

MutualMutual 227227 FundsFunds MemberMember Cooperative LifeLife Cooperative InsuranceInsurance BanksBanks OP-PohjolaOP-Pohjola Group Group OtherOther CentralCentral Cooperative Cooperative

BankingBanking PohjolaPohjola BankBank plcplc AssetAsset OP Mortgage ManagementManagement Bank Non-lifeNon-life InsuranceInsurance

GroupGroup Functions Functions Legal structure: OP-Pohjola Group has joint and several liability for each others’ commitments. 17

Joint Responsibility for Liability

• Joint responsibility within the OP-Pohjola Group is based on the Cooperative Bank Act and the Member Credit Institutions are committed to the joint responsibility in their articles of association (commercial banks) or statutes (Member Cooperative Banks) • In the event that a Member Credit Institution or the Central Cooperative is unable to pay any debts owed the other Member Credit Institutions/ Central Cooperative are jointly and severally responsible for paying that debt • The outstanding debt is apportioned among the Central Cooperative and the Member Credit Institutions in proportion to their assets as a percentage of the total group assets from the most recently adopted balance sheets • The joint responsibility under the cooperative system includes the Central Cooperative and its Member Credit Institutions • The Member Cooperative Banks of the OP-Pohjola Group, Pohjola Bank plc Helsinki OP Bank Plc, OP-Kotipankki Oyj and OP Mortgage Bank • Insurance companies within the OP-Pohjola Group are not included in the cooperative joint responsibility 18 OP-Pohjola Group on the deposit and lending markets* 40 % 35 Market share 30 of lending Latest value 9/2008 25 20 Market share 15 of deposits 10 5 0 1902 1922 1942 1962 1982 2002 2022

* Up until 12/2002 deposit banks' loans to and deposits placed by Finnish non-MFI's; since 1/2003 MFI's loans to and deposits placed by euro area non-MFI's 19 OP-Pohjola Group Earnings before tax, 12 month moving total 1995-2003 FAS €1,2001 200 million

1 000

800

600

400

200

0 95 96 97 98 99 00 01 02 03 04 05 06 07 09/08 20

OP-Pohjola Group Income statement

€ million Change 1 January to 30 September 2008 2007 € million % Net interest income 873 771 101 13 Other income 639 901 -262 -29 Total income 1,512 1,672 -161 -10 Personnel costs 440 407 33 8 Other expenses 459 419 40 10 Total expenses 899 826 73 9 Impairments of receivables 27 10 18 Returns to owner-members 119 80 40 50 and OP bonus customers Earnings before tax 466 757 -291 -38 21

OP-Pohjola Group Balance sheet items

€ million 09/2008 12/2007

Total assets 75 507 65 716 Credit stock 50 170 44 776 Non-performing and zero-interest claims 234 147 Deposits 33 022 29 001 Equity capital 5 470 5 638 22

OP-Pohjola Group Ratios

9/2008 12/2007 Net interest margin, % * 1.6 1.7 Cost/ income ratio, Banking and Investment Services, % 50 49 Return on equity (ROE), % 8.0 13.7 Return on equity at fair value, % -1.7 10.9 Return on assets (ROA), % 0.63 1.18 Non-performing and zero-interest bearing receivables of loans and guarantees, % 0.4 0.3 Tier 1 ratio, % 12.4 12.6 Capital adequacy ratio, % 12.4 13.8

* Net interest income as a % of average total assets 23

The amalgamation of the cooperative banks Own funds and capital adequacy

% 6,000€6,000 million 24 Tier 2 own funds

5,000 20 Subordinated loans

4,000 14.3 14.3 14.3 14.1 13.8 12.8 16 Tier 1 own funds 12.3 12.4 excl. subordinated 3,000 12 loans 12.7 12.8 12.6 12.7 12.6 12.7 12.3 12.4 Capital adequacy ratio, 2,000 8 %

Tier 1 funds/ Risk- 1,000 4 weighted items, total, %

0 0 Deductions of own funds are not Dec. March June Sept. Dec. March June Sept. included 2006 2007 2007 2007 2007 2008 2008 2008 24 Nordic banks: Total capital ratio

Danske Bank

Nordea

SEB

Handelsbanken

DnB NOR

Swedbank

OP-Pohjola Group

0 5 10 15 20 % 30.9.2008 2007 2006 25 Asset Mix OP-Pohjola Group Loans and leasing assets by sector

September 30, 2008

Communication and publishing Telecommunications 2 % and electronics Housing associations 10 % 2 % Energy Households: Construction 3 % other loans 6 % Food industry 22 % 3 % Services 9 % Wholesale and retail Corporates trade 30 % 13 % Others 7 % Households: housing loans Other industry 48 % 4 % Forest industry 4 % Real-estate activities 27 % Metal industry 5 % Transports and traffics 5 % 26

OP-Pohjola Group Loan portfolio by sector

Non-performing and Change zero-interest loans € million 30 Sept. 2008 30 Sept. 2007 € million % 30 Sept. 2008 Of loans

Non-banking corporate sector and housing associations 15,051 30% 12,334 28% 2,716 22% 71 0.5% Industry 2,795 6% 2,346 5% 449 19% 13 0.5% Construction 872 2% 799 2% 74 9% 11 1.3% Trade and catering 2,207 4% 1,669 4% 538 32% 12 0.5% Property investment 3,971 8% 3,280 8% 691 21% 15 0.4% Other companies 3,656 7% 2,830 6% 826 29% 13 0.4% Housing associations 1,549 3% 1,410 3% 139 10% 6 0.4% Finance and insurance 14 0% 47 0% -33 -70% 0 0.9% Public corporations and non-profit organisations 861 2% 820 2% 42 5% 5 0.6% Households 33,434 67% 29,942 69% 3,492 12% 147 0.4% Home mortgages 23,778 47% 20,952 48% 2,827 13% 75 0.3% Foreign 621 1% 498 1% 123 25% 12 1.9% Other items, net 100 0% -57 157 Total 50,081 100% 43,584 100% 6,497 15% 234 0.5% 27

OP-Pohjola Group Non-performing and zero-interest loans

€ million 30 Sept. 2008 30 Sept. 2007 Change, % 31 Dec. 2007

Households 147 117 25.0 92 Companies 64 67 -3.6 52 Housing associations and others 23 9 3 Total 234 192 21.7 147 Non-performing loans of loan and 0.4 0.4 0.03* 0.3 guarantee portfolio, % * Percentage points 28

Pohjola Bank plc Earnings before Tax by Business Segment 29 January–September € million 150 125

97 100 88 73

50

14 10 0

-15 -50 -57

-100 Banking Asset Non-life Insurance Group Functions Management

1-9/2007 1-9/2008 30 Own Funds and Capital Adequacy

€ million % 2 000 50 1 800 45

1 600 721 40 362 550 378 279 1 400 258 35

1 200 1233 30 1185 1181 1203 1 000 25 1002 948 800 20

600 12,8 12,9 15 10,9 10,8 10,9 11,4 400 10 9,6 9,0 9,3 200 8,2 8,2 8,5 5 0 0 2005 2006 2007 Q1/08 Q2/08 Q3/08

Tier 1 Tier 2 Capital adequacy ratio, % Tier 1 ratio, %

* For capital adequacy measurement, treatment of insurance company holdings changed as of 2007 31 Income Statement

rolling €million 7-9/08 7-9/07 1-9/08 1-9/07 12Mo 1-12/07 Net interest income 45 27 120 85 150 115 Impairments 11 1 8 2 7 1 Net interest income after impairments 34 26 113 83 143 114 Net income from non-life insurance 98 103 280 310 403 433 Net commissions and fees 24 24 79 83 111 115 Net trading income -26 -16 -72 -7 -99 -34 Net investment income 0 5 9 28 10 28 Other operating income 14 15 42 51 62 71 Total income 145 156 450 549 629 728 Total expenses 102 100 337 328 448 440 Earnings before tax 43 56 114 220 181 288

Earnings per share, € 0,15 0,20 0,41 0,80 0,65 1,04 32

Funding Profile 33 Long-term Credit Ratings*)

Moody's Investors Standard Fitch Service & Poor´s Ratings Pohjola Bank Aa1 AA- AA- Aa1 AA- AA- Aa1 AA- AA- Nordea Aa1 AA- AA- DnB NOR Aa1 AA- - Swedbank Aa2 A+ A+ SEB Aa3 A A+

Pohjola Insurance Ltd**) A1 A+ - If **) A2 A -

Finnish sovereign Aaa AAA AAA

*) Long-term debt **) Insurance financial strength 34

OP-Pohjola Group Funding Profile

€8080 billion Non-life insurance liabilities 2.5 70 5.7 Life insurance liabilities 2.4 4.0 60 6.0 0.7 Liabilities to financial 50 35.4 institutions 40 30.2 Liabilities to customers 30 Debt securities issued to the 20 14.8 15.8 public Other liabilities 10 5.3 6.6 5.6 5.5 0 Equity capital 30 Sept. 2007 30 Sept. 2008 35

LT2, UT2 and Tier 1 by Call Date

450 000 000

400 000 000

350 000 000

300 000 000 Tier1 250 000 000 Upper tier2 200 000 000 Lower tier2

150 000 000

100 000 000

50 000 000

0 2010 2011 2012 2013 2014 2015 36

Issued Senior Debt by Maturity

3 000 000 000

2 500 000 000

2 000 000 000

Other 1 500 000 000 USD EUR 1 000 000 000

500 000 000

0 2008 2009 2010 2011 2012 2014 2015 37

Issued Senior Debt by Maturity

Pohjola OP-Mortgage Bank 4 000 000 000

3 500 000 000

3 000 000 000

2 500 000 000

2 000 000 000

1 500 000 000

1 000 000 000

500 000 000

0 2008 2009 2010 2011 2012 2014 2015 2016 38

Contact Information

Jouko Pölönen, CFO, Pohjola Group tel. +358 10 252 3405 mobile +358 50 350 8226 [email protected]

Hanno Hirvinen, Executive Vice President Head of Group Treasury tel. +358 10 252 2221 mobile +358 50 522 8322 [email protected] 39 40