Supplementary interest rate of 1.2% added to return target for Profit Shares in 2022

We will celebrate OP Financial Group’s 120th anniversary next year. In honour of this, we are offering our owner-customers the possibility of a 1.2% supplementary interest rate on Profit Shares. On this basis, the return target for 2022 will total 4.45%, compared to 3.25% now. The interest will be paid if the return target and distribution criteria are fulfilled.

Owner-customers can invest in Profit Shares, which are equity contributions made to their local OP cooperative banks. By subscribing, you will strengthen your bank’s capital adequacy and support local business. This will give you the opportunity to share in your bank’s success and participate in building a sustainable life for tomorrow in your local area.

How to invest in Profit Shares and gain supplementary interest?

Supplementary interest for the anniversary year will start to accrue on 1 January 2022. If you already own Profit Shares, interest based on the return target will start accruing for you automatically. 

If you want to subscribe for Profit Shares, you can do so during your bank’s subscription period (the period during which you can buy Profit Shares). Interest based on the 3.25% return target will begin to accrue for you from the subscription date. If you subscribe by 31 December 2021, you will also accrue interest based on the supplementary rate of 1.2% automatically, from the start of 2022.

The interest will be paid if the return target and distribution criteria are fulfilled. Our group is one of Europe’s strongest banks in terms of capital adequacy – our CET1 ratio was strong at 19% at the end of September 2021.

How interest is determined and paid

We aim to pay interest on Profit Shares in accordance with the return target, but we cannot guarantee this. Your own OP cooperative bank will pay possible interest from its distributable surplus under the Co-operatives Act. A cooperative bank does not necessarily generate a surplus every year. 

The interest payment and amount depend on your bank's financial performance. The Representative Assembly or Annual Cooperative Meeting decides on interest and its payment for each calendar year. If the distribution criteria are fulfilled, interest for 2022 will be paid in June 2023.  

Profit Shares are not capital-protected products and their repayment is subject to certain conditions. This means that the invested capital can be lost. The stated return target is not a basis for making reliable assumptions about future returns and does not take account of taxation or other expenses. The Profit Share is provided by OP cooperative bank.