3. 1 Financial statements and management report 1 (1) APPENDIX 4, revised 18 December 2007 J. No. 7/120/2005 CONSOLIDATED FINANCIAL STATEMENTS

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1 3. 1 Financial statements and management report 1 (1) CONSOLIDATED BALANCE SHEET OF CREDIT INSTITUTION According to section 31, subsection 1 of the Ministry of Finance Decree (MFD) on financial statements, consolidated financial statements and the management report of credit institutions and investment firms, credit institutions, other financial institutions whose main activity is to offer services as referred to in section 4, subsection 1, paragraph 1 of the Credit Institutions Act, and holding companies of credit institutions shall prepare their consolidated balance sheet in compliance with the layout detailed below. Sections of the MFD lay down general provisions on consistent balance sheet presentation, departures from the layout and more detailed subdivision as well as combining and excluding of items. ASSETS Cash Debt securities eligible for refinancing with central banks Treasury bonds, notes and bills Loans and advances to credit institutions Loans and advances to the public and general government Lease assets Debt securities Issued by the general government Shares and units Participating interests Shares and units in group entities Derivative instruments Intangible assets Goodwill on consolidation long-term expenditure Tangible assets Investment property and shares and units in investment property property and shares and units in property companies tangible assets Claims on unpaid share capital/cooperative investment share capital/savings bank basic fund assets Accrued income and prepayments Deferred tax assets

2 3. 1 Financial statements and management report 2 (2) LIABILITIES LIABILITIES Liabilities to credit institutions Central banks Credit institutions Liabilities to the public and general government Deposits liabilities Debt securities issued to the public Bonds and notes Derivative instruments and other liabilities held for trading liabilities payables Statutory provisions Accrued expenses and deferred income Subordinated liabilities Capital loan Deferred tax liabilities Negative goodwill on consolidation EQUITY AND MINORITY INTEREST Share capital/cooperative share capital/savings bank basic capital Cooperative investment share capital/savings bank basic fund/mortgage society additional capital Share premium Revaluation reserve restricted reserves Legal reserve Fair value reserve From cash flow hedges From translation differences From fair value measurement Reserves provided for in the articles of association or comparable rules reserves Non-restricted reserves Reserve for invested non-restricted equity reserves Retained earnings or loss Profit or loss for the period Minority interest in equity OFF BALANCE SHEET COMMITMENTS Commitments given to a third party on behalf of a customer Guarantees and pledges Irrevocable commitments given in favour of a customer Securities repurchase commitments

3 3. 1 Financial statements and management report 3 (3) CONSOLIDATED BALANCE SHEET OF INVESTMENT FIRM Investment firms, financial institutions, within the same consolidation group, whose main activity is trading in securities and who offer services as referred to in section 15 of the Investment Firms Act (922/2007), and holding companies of investment firms shall prepare their consolidated balance sheet in compliance with the layout detailed below. ASSETS Cash Loans and advances to credit institutions Loans and advances to the public and general government Debt securities Issued by the general government Lease assets Shares and units Participating interests Shares and units in group entities Derivative instruments Intangible assets Goodwill on consolidation long-term expenditure Tangible assets Investment property and shares and units in investment property property and shares and units in property companies tangible assets Claims on unpaid share capital assets Accrued income and prepayments Deferred tax assets

4 3. 1 Financial statements and management report 4 (4) LIABILITIES LIABILITIES Liabilities to credit institutions Liabilities to the public and general government Debt securities issued to the public Bonds and notes Derivative instruments and other liabilities held for trading liabilities payables Statutory provisions Accrued expenses and deferred income Subordinated liabilities Capital loan Deferred tax liabilities Negative goodwill on consolidation EQUITY AND MINORITY INTEREST Share capital Share premium Revaluation reserve restricted reserves Legal reserve Fair value reserve From cash flow hedges From translation differences From fair value measurement Reserves provided for in the articles of association reserves Non-restricted reserves Reserve for invested non-restricted equity reserves Retained earnings or loss Profit or loss for the period Minority interests in equity OFF BALANCE SHEET COMMITMENTS Commitments given to a third party on behalf of a customer Guarantees and pledges Irrevocable commitments given in favour of a customer Securities repurchase commitments

5 3. 1 Financial statements and management report 5 (5) INSTRUCTIONS FOR COMPLETION OF A CONSOLIDATED BALANCE SHEET The consolidated balance sheet shall be prepared according to the instructions in Appendix 1, Balance sheet layout and completion instructions, of the standard on financial statements, as applicable. Goodwill on consolidation less depreciation shall be recognised in the consolidated balance sheet as a separate item under intangible assets. Negative goodwill on consolidation shall be recognised in the balance sheet as a separate item before equity and minority interest. Minority interest in equity shall be recognised in the consolidated balance sheet as a separate item after other equity items.

6 3. 1 Financial statements and management report 6 (6) CONSOLIDATED INCOME STATEMENT OF CREDIT INSTITUTION According to section 30, subsection 1 of the MFD, credit institutions, other financial institutions whose main activity is to offer services as referred to in section 4, subsection 1, paragraph 1 of the Credit Institutions Act, and holding companies of credit institutions shall prepare their consolidated income statement in compliance with the layout detailed below. Interest income Interest expense NET INTEREST INCOME Income from equity investments Fee and commission income Fee and commission expense Net gains or net losses on trading in securities and foreign currencies Net gains or net losses on trading in securities Net gains or net losses on trading in foreign currencies Net income from available-for-sale financial assets Net income from hedge accounting Net income from investment property operating income Administrative expenses Staff costs Wages, salaries and fees benefits Pensions Social security contributions administrative expenses Amortisation and impairment of goodwill on consolidation Depreciation, amortisation and impairment of tangible and intangible assets operating expenses Impairment losses on loans and other receivables Impairment losses on other financial assets Share of associates' profit or loss OPERATING PROFIT OR LOSS Income taxes Post-tax profit or loss from ordinary activities Minority interests in profit or loss for the period Profit or loss from ordinary activities after minority interests Income and expenses from other than ordinary activities PROFIT OR LOSS FOR THE PERIOD

7 3. 1 Financial statements and management report 7 (7) CONSOLIDATED INCOME STATEMENT OF INVESTMENT FIRM Investment firms, financial institutions, within the same consolidation group, whose main activity is trading in securities and who offer services as referred to in section 15 of the Investment Firms Act (922/2007), and holding companies of investment firms shall prepare their consolidated income statement in compliance with the layout detailed below. Fee and commission income Net gains or net losses on trading in securities and foreign currencies Net gains or net losses on trading in securities Net gains or net losses on trading in foreign currencies Income from equity investments Interest income Net income from available-for-sale financial assets Net income from hedge accounting Net income from investment property operating income INCOME FROM INVESTMENT SERVICES Fee and commission expense Interest expense Administrative expenses Staff costs Wages, salaries and fees benefits Pensions Social security contributions administrative expenses Amortisation and impairment of goodwill on consolidation Depreciation, amortisation and impairment of tangible and intangible assets operating expenses Impairment losses on loans and other receivables Impairment losses on other financial assets Share of associates' profit or loss OPERATING PROFIT OR LOSS Income taxes Post-tax profit or loss from ordinary activities Minority interests in profit or loss for the period Profit or loss from ordinary activities after minority interests Income and expenses from other than ordinary activities PROFIT OR LOSS FOR THE PERIOD

8 3. 1 Financial statements and management report 8 (8) INSTRUCTIONS FOR COMPLETION OF A CONSOLIDATED INCOME STATEMENT The consolidated income statement shall be prepared according to the instructions in Appendix 2, Income statement layout and completion instructions, of the standard on financial statements, as applicable. Amortisation of goodwill on consolidation and decrease in negative goodwill on consolidation shall be recognised in the consolidated income statement under "Amortisation and impairment of goodwill on consolidation". Decrease in negative goodwill on consolidation may also be recognised as a separate item. Group entities' ownership-interest-based share of associates' profit or loss for the period shall be recognised as an aggregate in the item before operating profit or loss. Minority interests in the profit or loss for the period shall be recognised in the consolidated income statement in a separate item before profit or loss from ordinary activities.

9 3. 1 Financial statements and management report 9 (9) NOTES TO The information to be disclosed as notes to the consolidated financial statements has been specified in chapter 6, sections of the MFD. The statutory notes to the parent company's financial statements may be disclosed, as applicable, as notes to the consolidated financial statements, and the latter may be disclosed in conjunction with the parent company's notes following their order of presentation. Notes on division of share capital into share classes, on share issues, warrants, share ownership and net income from leasing activities need not be recognised in the consolidated financial statements. Information on preparation of consolidated financial statements (section 34 of the MFD) The following information shall be disclosed in the notes to the consolidated income statement and balance sheet: accounting policies disclosure of changes in accounting policies and methods and the effects of those changes on the profit or loss and financial position of the group justifications for departure from the parent company's measurement and amortisation policies in preparing the consolidated financial statements justifications for departure from the policy of adjusting the accounting policies followed in a consolidated subsidiary's financial statements to the accounting policies followed concerning the group's core activities justifications for departure from the group's measurement and amortisation policies in preparing a consolidated associate's financial statements disclosure of such changes in group structure which materially affect the consolidated financial statements' comparability with the consolidated financial statements for the preceding period basis for the exchange rate used for translating the items of foreign subsidiaries' and associates' financial statements into Finnish currency justifications for an amortisation period longer than five years for goodwill on consolidation. Notes on subsidiaries and associates (section 35 of the MFD) The following information shall be disclosed as notes on subsidiaries and associates: name and registered office of a consolidated subsidiary and ownership interest, in the subsidiary, of group entities and persons acting in their own name but on group entities' account

10 3. 1 Financial statements and management report 10 (10) information as above on a non-consolidated subsidiary and disclosure of the amount of equity and profit or loss of such a subsidiary in its most recent financial statements information as in the first item on a consolidated associate and disclosure of the amount and recognition of equity at the time of acquisition information as in the first item on a non-consolidated associate and disclosure of the amount of equity and profit or loss of such an associate in its most recent financial statements disclosure of basis for combined voting power, if an associate has been consolidated according to chapter 6, section 15 of the Accounting Act (proportionally consolidated joint venture) disclosure of events of material significance to a subsidiary's profit or loss and financial position which have occurred between the balance sheet dates of the subsidiary and its parent company, if the subsidiary has been consolidated on the basis of financial statements prepared as of another date than the end of the parent company's period adequate information for assessment of the relations between a consolidated company which is neither a credit institution, financial institution nor an ancillary services undertaking and other companies within the same group. Appropriations less deferred tax liabilities shall always be included in non-consolidated subsidiaries' or associates' note on equity. Notes on finance leases (section 33 of the MFD) In notes on receivables on finance leases, information by main lease type (property leasing, car leasing etc.) shall be disclosed on gross investments, present values of minimum lease payments receivable, unearned finance income and residual values of leased assets accruing to the lessor. notes to consolidated financial statements (section 36 of the MFD) Also the following information shall be disclosed in the notes to the consolidated financial statements: specification of deferred tax liabilities and changes of them into liabilities based on appropriations, liabilities based on consolidation measures and liabilities included in subsidiaries' own income statements and balance sheets, if they all have been combined in the consolidated income statement and balance sheet unamortised goodwill on consolidation relating to associates average number of employees in joint ventures which have been consolidated as referred to in chapter 6, section 15 of the Accounting Act portion of accumulated depreciation difference and voluntary provisions recognised under equity. In connection with each note or as a separate item after statutory notes, other information shall be disclosed which possibly is necessary to give a true and fair view of the group's financial position or the profit or loss from its activities.

Overview of consolidated financial statements

Overview of consolidated financial statements Consolidated balance sheet On 31 December 2015 On 31 December 2014 In EUR millions Assets Cash and balances at central banks 64,943 43,409 Loans and advances