OP Financial Group has raised 2023’s return target for Profit Shares to 4.5 per cent. This is due to the updated profit distribution policy for Profit Shares, based on which we will aim to pay a return at least 1–2 percentage points above the average 10-year yield on Finnish benchmark government bonds.
We have already raised this year’s return target by 1.2 percentage points to 4.45 per cent in honour of OP Financial Group’s 120th anniversary. A maximum of 30 per cent of OP Financial Group’s earnings can be paid out as returns.
The return target may change on an annual basis
Profit Shares are long-term equity contributions made by owner-customers to their local OP cooperative banks. By investing in them, you will strengthen your OP cooperative bank’s capital adequacy and support local business. They also give you a chance to share in your bank’s success.
Please note that Profit Shares are not deposits and are not protected by the deposit guarantee. In addition, they are not capital guaranteed and there is a risk of losing the capital you invest in them.
The aim is to pay interest on Profit Shares in line with the return target, but this cannot be guaranteed. Interest on Profit Shares is paid out of the distributable surplus. A cooperative bank does not necessarily generate a surplus every year. The return target can change annually, with the final interest rate being confirmed after the end of each financial year. In accordance with the Co-operatives Act, an OP cooperative bank decides on interest payment in a meeting of its Representative Assembly or at a Cooperative Meeting. The payment and amount of such interest depend on the bank’s earnings in every case.