OP Corporate Bank plc
Interim Report 1 January-31 March 2025
Stock Exchange Release 7 May 2025 at 9.00 am EEST
OP Corporate Bank plc's Interim Report 1 January-31 March 2025
- OP Corporate Bank plc's operating profit rose to EUR 140 million (112).
- Total income grew by 10% to EUR 215 million (196). Net interest income, EUR 157 million, remained at the previous year's level (157). Investment income increased to EUR 24 million (9). Net commissions and fees decreased by 14% to EUR 17 million (19). Other operating income increased to EUR 17 million (11).
- Impairment loss on receivables decreased to EUR 1 million (12).
- Total operating expenses increased by 3% to EUR 73 million (71). The cost/income ratio improved to 34% (36).
- The loan portfolio grew by 1.4% to EUR 28.2 billion (27.8) year on year. The deposit portfolio increased by 20.9% year on year, to EUR 16.0 billion (13.3).
- The Corporate Banking and Capital Markets segment's operating profit increased to EUR 86 million (80). Net interest income decreased by 2% to EUR 94 million (97). Net commissions and fees totalled EUR 1 million (1). Investment income increased to EUR 22 million (10). Operating expenses increased by 4% to EUR 31 million (30). Impairment loss on receivables totalled EUR 3 million. A year ago, impairment loss on receivables reversed came to EUR 1 million. The cost/income ratio improved to 26% (27).
- The Asset and Sales Finance Services and Payment Transfers segment's operating profit increased to EUR 49 million (37). Net interest income, EUR 55 million, remained at the previous year's level (55). Net commissions and fees decreased to EUR 14 million (17). Operating expenses increased by 4% to EUR 29 million (28). Impairment loss on receivables reversed came to EUR 2 million. A year ago, impairment loss on receivables totalled EUR 13 million. The cost/income ratio weakened to 38% (36).
- The Baltics segment's operating profit amounted to EUR 9 million (10). Net interest income, EUR 15 million, remained at the previous year's level (15). Net commissions and fees totalled EUR 2 million (2). Operating expenses increased to EUR 9 million (8). The cost/income ratio weakened to 49% (45).
- The Group Functions segment's operating loss was EUR 3 million. A year ago, the operating loss amounted to EUR 15 million. Funding position and liquidity remained strong.
- OP Corporate Bank plc's CET1 ratio remained at 13.9% (14.1), which exceeds the minimum regulatory requirement by 5.1 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.
OP Corporate Bank plc's key indicators
| € million | Q1/2025 | Q1/2024 | Change, % | Q1-4/2024 |
| Operating profit (loss), € million | 140 | 112 | 24.9 | 473 |
| Corporate Banking and Capital Markets | 86 | 80 | 7.1 | 307 |
| Asset and Sales Finance Services and Payment Transfers | 49 | 37 | 30.1 | 167 |
| Baltics | 9 | 10 | -5.4 | 39 |
| Group Functions | -3 | -15 | - | -40 |
| Total income | 215 | 196 | 9.6 | 773 |
| Total expenses | -73 | -71 | 2.5 | -298 |
| Cost/income ratio, % | 34.1 | 36.5 | -2.3* | 38.6 |
| Return on equity (ROE), % | 9.2 | 7.5 | 1.7* | 7.9 |
| Return on assets (ROA), % | 0.59 | 0.46 | 0.13* | 0.48 |
| 31 Mar 2025 | 31 Mar 2024 | Change, % | 31 Dec 2024 | |
| CET1 ratio, % | 13.9 | 13.3 | 0.6* | 14.1 |
| Loan portfolio, € million | 28,234 | 27,850 | 1.4 | 28,295 |
| Guarantee portfolio, € million | 2,735 | 3,030 | -9.7 | 2,660 |
| Other exposures, € million | 5,389 | 5,558 | -3.1 | 5,238 |
| Deposits, € million | 16,031 | 13,258 | 20.9 | 17,155 |
| Ratio of non-performing exposures to exposures, % | 1.6 | 2.2 | -0.6* | 1.8 |
| Ratio of impairment loss on receivables to loan and guarantee portfolio, % | 0.02 | 0.16 | -0.14* | 0.00 |
* Change in ratio, percentage point(s).
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.
Decisions by OP Corporate Bank plc's Annual General Meeting
On 13 March 2025, the Annual General Meeting (AGM) of OP Corporate Bank plc re-elected OP Financial Group's President and Group Chief Executive Officer Timo Ritakallio as Chair of OP Corporate Bank's Board of Directors. As other Board members, the AGM elected OP Uusimaa Managing Director Olli Lehtilä, OP Turun Seutu Managing Director Petteri Rinne, OP Financial Group's Chief Financial Officer Mikko Timonen and OP Financial Group's Chief People and Culture Officer Hannakaisa Länsisalmi. As new board member to replace Mikko Vepsäläinen, OP Häme Managing Director Mika Kivimäki was elected.
The AGM elected PricewaterhouseCoopers Oy, an audit firm, to act as OP Corporate Bank's auditor for the financial year 2025. Lauri Kallaskari, Authorised Public Accountant, acts as the chief auditor appointed by PricewaterhouseCoopers Oy.
The AGM of 13 March 2025 adopted the Financial Statements for 2024 and discharged members of the Board of Directors and the CEO from liability. The AGM decided that dividends to be distributed total EUR 112,000,000.00, or EUR 0.35 per share, and that following dividend distribution, the remaining amount of EUR 260,323,566.01 be recognised in the retained earnings account. Following dividend distribution, the company's distributable earnings total EUR 3,309,605,085.96 and its distributable funds total EUR 3,640,985,923.02.
Outlook
The global economic outlook has weakened due to increased tariffs and a higher level of uncertainty. The Finnish economy is likely to grow less than previously expected and the outlook is exceptionally uncertain. The escalation of geopolitical crises or a rise in trade barriers may affect capital markets and the economic environment of OP Corporate Bank and its customers.
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 Interim 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's and its various functions, and actual results may differ materially from those expressed in the forward-looking statements.
Schedule for 2025 Interim Reports and Half-year Financial Report:
| Half-year Financial Report 1 January-30 June 2025 | 30 July 2025 |
| Interim Report 1 January-30 September 2025 | 28 October 2025 |
Helsinki, 7 May 2025
OP Corporate Bank plc
Board of Directors
For additional information, please contact:
Katja Keitaanniemi, Chief Executive Officer, 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.
