OP Corporate Bank plc
OP Cooperative
Inside information
30 October 2019 at 6.35 p.m. EET
OP Financial Group’s new strategic long-term targets
The Supervisory Board of OP Financial Group's central cooperative confirmed OP Financial Group's new, Group-level strategic long-term targets today, 30 October 2019. The new targets will enter into force as of 1 January 2020.
OP Financial Group’s new strategic long-term targets are:
| Indicator | Target |
| Return on equity (ROE excluding OP bonuses) | 8% in 2025 (new indicator) |
| CET1 ratio | To be determined (previously: 22%) |
| Brand recommendations, NPS (Net Promoter Score, private and corporate customers) | 30 in 2025 (previously: 25) |
The target CET1 ratio will be determined later after the effects of the regulatory and supervisory environment have become clear. In OP Financial Group’s view, the most significant open changes in the regulatory and supervisory environment include the amendments to the Act on Credit Institutions that will enter into force at the end of 2020, the obligations, if any, imposed by the supervisor due to ECB’s targeted review of internal (IRBA) models (TRIM), and obligations, if any, imposed by the supervisor due to the new definition of default.
In addition, OP Financial Group’s credit rating target is at least at the level of AA-/Aa3.
The Supervisory Board of OP Financial Group's central cooperative confirmed the Group's new strategy at its meeting in June 2019. At the same time, the Supervisory Board confirmed OP Financial Group’s vision for future direction, to be “the leading and most appealing financial services group in Finland”, and a more detailed content of the vision.
OP Financial Group’s strategic priorities for 2020 that support its vision are:
- Best customer experience
- More benefit for owner-customers
- Excellent employee experience
- Faster growth in profits than in expenses
- Productive development.
OP Corporate Bank plc will not in future set own separate financial targets.
OP Corporate Bank plc
OP Cooperative
Tuuli Kousa
Chief Communications Officer
Further information and requests for interviews
OP Communications, tel. +358 50 523 9904, viestinta@op.fi
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OP Financial Group is Finland's largest financial services group whose mission is to promote the sustainable prosperity, security and wellbeing of its owner-customers and business environment. OP Financial Group consists of 149 member cooperative banks, its central cooperative OP Cooperative, and the latter's subsidiaries and affiliates. The Group has a staff of 12,000 and 1.98 million owner-customers.
OP Corporate Bank and OP Mortgage Bank are responsible for OP's funding in money and capital markets. As laid down in the applicable law, OP Corporate Bank, OP Mortgage Bank and their parent company OP Cooperative and other OP Financial Group member credit institutions are ultimately jointly and severally liable for each other's debts and commitments. OP Corporate Bank acts as OP's central bank.