Notes to OP Financial Group Financial Statements

RISK EXPOSURE BY BANKING

 

Note 73. Sensitivity analysis of market risk



31 Dec. 2014 31 Dec. 2013
EUR million Risk parameter
Change Effect on earnings Effect on equity capital Effect on earnings Effect on equity capital
Interest rate risk Interest rate 1 pp 75 7 88 13
Currency risk Market value 10 pps 7 - 5 -
Volatility risk




Interest rate volatility Volatility 10 basis points 1 - 2 -

Currency volatility Volatility 10 pps 1 - 1 -
Credit risk premium Credit risk margin 0.1 pp 1 36 1 31
Price risk




Equity portfolio Market value 10% - 8 - 12

Private equity funds Market value 10% 1 5 1 6

Property risk Market value 10% 44 - 46 -

Interest rate risk has been calculated as the sum of the intrinsic values of Group member banks’ 12-month net interest income volatility and the volatility of the present values of the Group’s other balance sheet cash flows.