Payment of interest on Profit Shares is postponed

In line with the recommendations of the European Central Bank (ECB) and the Financial Supervisory Authority (FIN-FSA), we have to postpone the profit distribution of OP cooperative banks, i.e. the payment of interest on Profit Shares for the financial year 2019. The payment of interest will be postponed from June 2020 to October 2020.

We at OP Financial Group want to observe the recommendation and, in this way, assume our responsibility as Finland’s largest financial services group. With the recommendation, the ECB and FIN-FSA aim to safeguard banks’ ability to support the real economy by providing funding to businesses and households in order to alleviate the effects of the economic crisis caused by the corona pandemic. 

OP Financial Group is one of Europe’s strongest banks in terms of capital adequacy, and our capacity to withstand crises is high. By observing the ECB’s recommendation, we seek to ensure that we can help Finnish businesses and households in the best possible way to get through this situation.

OP cooperative bank’s Profit Share

Profit Shares are long-term equity contributions made by OP cooperative banks’ owner-customers to their own OP cooperative bank. A return target is set annually on Profit Shares. For 2019, this target was 3.25%. Interest on Profit Shares is paid annually out of the bank’s distributable surplus, based on the decision by the Representative Assembly or the Cooperative Meeting.

We will send an online message and letter about this to Profit Share holders. We apologise that we have to postpone the payment of interest on Profit Shares.