Pohjola Pankki Oyj Updates Strategy and Revised Financial Targets
Pohjola Pankki Oyj (Pohjola) announced that on October 31, 2012, Pohjola's Board of Directors adopted Pohjola Group's updated strategy and revised financial targets. The strategic theme is called "Value and efficiency through integration". The updated strategy highlights improving customer experience, seeking more targeted growth in order to improve return on capital, making more efficient use of OP-Pohjola Group's advantages and strengths, improving efficiency and increasing capital adequacy ratios. Banking will concentrate on deepening customer relationships by focusing growth on business and products with high capital efficiency. Non-life Insurance aims to continue its cross-selling and improve efficiency. Within Asset Management, the main objective is to raise investment returns of OP Mutual Funds and to intensify OP-Pohjola Group's integration. The Board of Directors also adopted the Group's new financial targets aiming at higher profitability and efficiency, and a stronger capital base. Pohjola abandoned its target for the return on equity (13.0%) calculated at fair value and set a new return-on-equity target at 13.0% calculated on earnings after tax. It raised its capital adequacy target by replacing the Tier One ratio target of 9.5% with the Core Tier One ratio target of 11%. Pohjola also revised its dividend policy and set a target level for its total expenses: at the end of 2015 they will be at the same level as at the end of 2012.
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