OP Corporate Bank
Semi-annual financial report January 1, 2024 – June 30, 2024
Stock Exchange Release 24 July 2024, 9am EEST
OP Corporate Bank plc Half-yearly financial report 1 January to 30 June 2024
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OP Corporate Bank Operating profit increased to €218 million (171).
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Net interest income increased by 16% to €306 million (263). Investment income decreased by 54% to €18 million (40). Net fees and charges totaled €38 million (40).
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Impairment losses on accounts receivable decreased to €16 million (23).
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Total operating expenses decreased by 11% to €147 million (166). The cost:income ratio improved to 39% (46).
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The loan portfolio decreased by 0.3% to €27.4 billion (€27.4 billion) in the year to June. The deposit portfolio increased by 26.6% in the year to June to €14.7 billion (€11.6 billion).
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Corporate Banking and Capital Markets Operating profit increased to €152 million (98). Net interest income increased by 28% to €191 million (149). Investment income decreased by 49% to €15 million (29). Operating expenses decreased by 18% to €60 million (73). The reversal of impairment losses on accounts receivable amounted to €1 million. Impairment losses on accounts receivable in the previous year totaled €14 million.
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Asset and Sales Financing Services and Payment Transfers The division’s operating profit was €72 million (71). Net interest income increased 4% to €107 million (103). Net commissions and fees amounted to €31 million (32). Operating expenses decreased 6% to €60 million (64). Impairment losses on accounts receivable amounted to €17 million (8).
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Baltic States The division’s operating profit was €19 million (19). Net interest income decreased to €29 million (34). Net commissions and fees amounted to €5 million, remaining at the prior-year level. Operating expenses decreased by 11% to €16 million (18).
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Group Functions The division’s operating loss was €25 million, compared to an operating loss of €18 million last year. Financial position and liquidity remain strong.
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OP Corporate Bank The CET1 ratio came in at 14.1% (13.0), 5.4 percentage points above the regulatory minimum requirement.
OP Corporate Bank Key Indicators
|
Operating profit (loss), million euros |
First half of 2024 |
First half of 2023 |
change, % |
1st Quarter to 4th Quarter of 2023 |
|
Corporate Banking and Capital Markets |
152 |
98 |
54.6 |
198 |
|
Asset and Sales Financing Services and Payment Transfers |
72 |
71 |
0.8 |
126 |
|
Baltic States |
19 |
19 |
-1.2 |
27 |
|
Group Function |
-twenty five |
-18 |
43.0 |
-twenty two |
|
total |
218 |
171 |
27.1 |
329 |
|
Total Revenue |
380 |
360 |
5.7 |
738 |
|
total cost, total expenses, total expenses |
-147 |
-166 |
-11.5 |
-313 |
|
Cost/income ratio, % |
38.6 |
46.1 |
-7.5 |
42.4 |
|
Return on equity (ROE), % |
7.4 |
6.2 |
1.2* |
5.9 |
|
Return on assets (ROA), % |
0.45 |
0.31 |
0.14* |
0.30 |
|
June 30, 2024 |
June 30, 2023 |
change, % |
December 31, 2023 |
|
|
CET1 ratio, % |
14.1 |
13.3 |
0.8* |
13.0 |
|
Loan portfolio, million euros |
27,373 |
27,449 |
-0.3 |
28,076 |
|
Guaranteed portfolio, million euros |
2,813 |
2,990 |
-5.9 |
3,184 |
|
Other exposures, EUR million |
5,380 |
5,892 |
-8.7 |
5,745 |
|
Deposits, million euros |
14,710 |
11,620 |
26.6 |
14,629 |
|
Non-performing loan ratio (%) |
2.2 |
1.7 |
0.5* |
2.2 |
|
Accounts receivable impairment losses as a percentage of loans and guarantees portfolio |
0.11 |
0.15 |
-0.04* |
0.31 |
Income statement comparisons are based on the corresponding figures for 2023. Unless otherwise stated, figures as of December 31, 2023 are used for balance sheet and other cross-sectional comparisons.
* Ratio, percentage point change.
Outlook for 2024
The Finnish economy underperformed in the first half of 2024. GDP contracted year-on-year and unemployment rose. However, economic confidence has improved since spring. Slowing inflation and lower interest rates pave the way for economic recovery. Risks related to the economic outlook remain higher than normal. An intensification of the geopolitical crisis could have a sudden impact on capital markets and the economic environment.
Full year 2024 profit guidance is provided only at group level in OP Financial Group’s preliminary, interim and half-year financial reports.
The most significant uncertainties affecting OP Corporate Bank’s earnings performance relate to trends in the business environment, changes in interest rates and the investment environment, and trends in impairment losses on accounts receivable. Future earnings performance will also be affected by changes in market growth rates and competitive conditions.
The forward-looking statements contained in this half-year financial report which represent management’s expectations, beliefs, estimates, projections, forecasts and assumptions are based on current views regarding future developments 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.
Interim report schedule for 2024:
|
2024 Q1-Q3 Interim Report |
October 31, 2024 |
Helsinki, 24 July 2024
OP Corporate Bank
board of directors
For further information, please contact:
Katja Keitaanniemi, CEO, Tel: +358 (0)10 252 1387
Head of Corporate Communications, Lotta Ala Cluj, Tel: +358 (0)10 252 8719
distribution
Nasdaq Helsinki
Euronext Dublin (Irish Stock Exchange)
LSE London Stock Exchange
Major Media
op.fi
OP Corporate Bank is part of the OP Financial Group. OP Corporate Bank and OP Mortgage Bank are responsible for OP’s financing in the money and capital markets. As provided by applicable law, OP Corporate Bank, OP Mortgage Bank and their parent company, OP Cooperative, and the other credit institutions that are members of the OP Financial Group are ultimately jointly liable for each other’s debts and obligations. OP Corporate Bank acts as the central bank for the OP Financial Group.
