OP Corporate Bank plc's Half-year Financial Report 1 January–30 June 2025
OP Corporate Bank plc's Half-year Financial Report 1 January–30 June 2025

OP Corporate Bank plc’s Half-year Financial Report 1 January–30 June 2025

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OP Corporate Bank plc’s Half-year Financial Report 1 January–30 June 2025

OP Corporate Bank plc’s CET1 ratio remained at 14.0% (14.1) The changes in the EU Capital Requirements Regulation (CRR3), which took effect on 1 January 2025, caused a slight reduction in capital adequacy. The loan portfolio grew by 4.1% to EUR 28.5 billion (27.4) year on year. The deposit portfolio increased by 19.5% year onyear, to EUR 17.6 billion ( 14.7) The most significant uncertainties affecting OP Corporate Bank’s performance relate to developments in the business environment, changes in interest rate and investment environment, and impairment loss on receivables. In addition, geopolitical crises or mounting trade barriers will only be provided in Financial Group’s financial statements at Group level. A full-year estimate for 2025 earnings for the OP Corporate Group will be provided at Financial Group level, but only at the Group level in its interim financial bulletin and in its financial statements and in the financial statements for the first half of this year.

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OP Corporate Bank plc’s CET1 ratio remained at 14.0% (14.1), which exceeds the minimum regulatory requirement by 4.6 percentage points. The changes in the EU Capital Requirements Regulation (CRR3), which took effect on 1 January 2025, caused a slight reduction in capital adequacy.

The Baltics segment’s operating profit amounted to EUR 19 million (19). Net interest income grew by 6% to EUR 31 million (29). Net commissions and fees totalled EUR 5 million (5). Operating expenses increased by 17% to EUR 19 million (16). The cost/income ratio weakened to 51% (46).

The Asset and Sales Finance Services and Payment Transfers segment’s operating profit increased by 46 % to EUR 105 million (72). Net interest income was EUR 108 million (107). Net commissions and fees decreased to EUR 29 million (31). Operating expenses decreased by 4% to EUR 58 million (60). Impairment loss on receivables reversed came to EUR 16 million. A year ago, impairment loss on receivables totalled EUR 17 million. The cost/income ratio was 40% (40).

The Corporate Banking and Capital Markets segment’s operating profit increased by 20% to EUR 182 million (152). Net interest income grew by 17% to EUR 161 million (137). Net commissions and fees decreased to EUR 2 million (3). Investment income increased to EUR 70 million (68). Operating expenses increased by 4% to EUR 62 million (60). Impairment loss on receivables reversed came to EUR 9 million. A year ago, impairment loss on receivables reversed came to EUR 1 million. The cost/income ratio improved to 26% (28).

The loan portfolio grew by 4.1% to EUR 28.5 billion (27.4) year on year. The deposit portfolio increased by 19.5% year on year, to EUR 17.6 billion (14.7).

Total income grew by 11% to EUR 422 million (380). Net interest income grew by 13% to EUR 286 million (253). Investment income increased to EUR 72 million (71). Net commissions and fees decreased by 12% to EUR 33 million (38). Other operating income increased by 63% to EUR 30 million (18).

Story Continues

OP Corporate Bank plc’s key indicators

€ million H1/2025 H1/2024 Change, % Q1–4/2024 Operating profit (loss), € million 300 218 37.9 473 Corporate Banking and Capital Markets 182 152 19.8 307 Asset and Sales Finance Services and Payment Transfers 105 72 45.7 167 Baltics 19 19 -0.2 39 Group Functions -6 -25 — -40 Total income 422 380 10.8 773 Total expenses -147 -147 0.4 -298 Cost/income ratio, % 34.9 38.6 -3.6* 38.6 Return on equity (ROE), % 9.7 7.4 2.4* 7.9 Return on assets (ROA), % 0.62 0.45 0.17* 0.48

30 Jun 2025 30 Jun 2024 Change, % 31 Dec 2024 CET1 ratio, % 14.0 14.1 -0.1* 14.1 Loan portfolio, € million 28,509 27,373 4.1 28,295 Guarantee portfolio, € million 2,644 2,813 -6.0 2,660 Other exposures, € million 5,352 5,380 -0.5 5,238 Deposits, € million 17,584 14,710 19.5 17,155 Ratio of non-performing exposures to exposures, % 1.4 2.2 -0.8* 1.8 Ratio of impairment loss on receivables to loan and guarantee portfolio, % -0.17 0.11 -0.27* 0.00

Comparatives for the income statement items are based on the corresponding figures in 2024. Unless otherwise specified, figures from 31 December 2024 are used as comparatives for balance-sheet and other cross-sectional items.

*Change in ratio, percentage point(s).

Outlook

Trade-policy risks have been reduced by the preliminary tariff agreement between the US and EU, which may increase confidence in the economy. On the other hand, the higher tariffs will impact negatively on the economic outlook. Moreover, equity markets and the business environment of OP Corporate Bank and its customers could be affected by spreading geopolitical crises or mounting trade barriers.

A full-year earnings estimate for 2025 will only be provided at Group level, in OP Financial Group’s financial statements bulletin and in its interim and half-year financial reports.

The most significant uncertainties affecting OP Corporate Bank’s earnings performance relate to developments in the business environment, changes in the interest rate and investment environment, and developments in impairment loss on receivables. In addition, future earnings performance will be affected by the market growth rate and the change in the competitive situation.

Forward-looking statements in this Half-year Financial Report expressing the management’s expectations, beliefs, estimates, forecasts, projections and assumptions are based on the current view of the future development in the business environment and the future financial performance of OP Corporate Bank plc and its various functions, and actual results may differ materially from those expressed in the forward-looking statements.

Financial reporting

Schedule for financial reporting in 2025:

Interim Report 1 January–30 September 2025 28 October 2025

Helsinki, 30 July 2025

OP Corporate Bank plc

Board of Directors

For additional information, please contact:

Katja Keitaanniemi, CEO, tel. +358 10 252 1387

Piia Kumpulainen, Chief Communications Officer, tel. +358 10 252 7317

DISTRIBUTION

Nasdaq Helsinki Oy

Euronext Dublin (Irish Stock Exchange)

LSE London Stock Exchange

Major media

op.fi

OP Corporate Bank plc is part of OP Financial Group. 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 Financial Group’s central bank.

Source: Finance.yahoo.com | View original article

Source: https://finance.yahoo.com/news/op-corporate-bank-plcs-half-060000367.html

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