Pohjola's promise to its stakeholders, based on its strategy adopted in 2012, is to generate a Total Shareholder Return (TSR) which is at the top level among Nordic peer banks and insurers. In 2013, Pohjola’s TSR was below its Nordic peer banks and insurers. Pohjola share reached a high of 14.67 euros during the financial year.
As its strategic goal, Pohjola aims at a dividend payout ratio of at least 50%, provided that the Core Tier 1 ratio remains at least 10%. The Board of Directors of Pohjola Bank plc proposes to the Annual General Meeting that a per-share dividend of 0.67 (0.46) be paid on Series A shares and EUR 0.64 (0.43) on Series K shares for the financial year 2013. This corresponds to a 50% dividend payout ratio.
OP-Pohjola Group raises funds in the international markets with Pohjola Bank plc and OP Mortgage Bank acting as the issuers of debt instruments. Access to funding remained good in 2013. In 2013, Pohjola issued long-term bonds worth 1.9 billion euros and broadened its funding sources by issuing its first Samurai bonds in the Japanese market. Its strong AA rating affirmed from two credit rating agencies forms the basis of funding. Only two other Nordic banks have an AA credit rating for long-term debt affirmed by two credit rating agencies.
Credit ratings for long-term debt, 31 Dec. 2013
Pohjola Bank plc’s strong credit ratings are based on the entire OP-Pohjola Group’s financial position through joint and several liability.
OP-Pohjola Group Central Cooperative's public voluntary bid
OP-Pohjola Group Central Cooperative will make a public voluntary bid for all Pohjola Bank plc shares. Bid price is € 16,80 per Series A and K share. Premium is 18.1% from the closing price on 5 Feb. 2014 and 23.3% (30.5%) with respect to the weighted average trading price over the past 6 months (12 months). The acceptance period under the tender offer will commence on 24 February 2014 and the bid is expected to remain in force until 1 April 2014.
op.fi > Stock exchange release: OP-Pohjola Group Central Cooperative to commence the public voluntary bid for all Pohjola Bank plc outstanding shares on 24 February 2014 (Includes: Offer Document, Terms and Conditions of the Offer)
The Board of Directors of Pohjola has 13 February 2014 issued a statement pursuant to the Finnish Securities Market Act regarding the bid. The Pohjola Board has concluded that the bid provides a reasonable alternative for shareholders in prevailing circumstances and has recommended that the shareholders of Pohjola accept the bid. As part of its evaluation of the Bid, the Pohjola Board has requested from Deutsche Bank AG, London Branch, to deliver a fairness opinion (the “Fairness Opinion”) concerning the fairness, from a financial point of view, of the Offer Price to Pohjola’s shareholders not affiliated with the offeror or its affiliated parties.