In the first three quarters, OP Corporate Bank plc has grown its profit in the Baltic states by 16%, the deposit portfolio has reached 2 billion euros
In the first three quarters of this year, OP Corporate Bank plc earned EUR 31 million before taxes in the Baltic states, which is 16% more than last year when the profit was EUR 27 million. During this period, the income of the branches in Latvia, Lithuania, and Estonia reached EUR 53 million, which is slightly less compared to the same period last year when the income was EUR 57 million.
At the end of September, OP Corporate Bank's deposit portfolio in the Baltic states reached EUR 2 billion, which is almost 70% more than in the same period last year, when the bank attracted EUR 1.2 billion in deposits. The credit and leasing portfolio of the bank's branches in Latvia, Lithuania and Estonia was EUR 2.7 billion, compared to 2.8 billion euros a year ago.
Elmārs Prikšāns, General Manager of OP Corporate Bank plc Latvian branch
"Despite the slow economic recovery and uncertainties in export markets, activity in planning and implementing investment projects among companies by the second half of 2024 has increased. The expected decrease in interest rates and low inflation is a good basis for future growth in investment activity. We are pleased with the growing deposit portfolio in Latvia, the activity of new and existing customers who use financing services, daily banking operations, and the funds and risk management products, attracting all the competencies of OP Financial Group," says Elmars Priksans, General Manager of OP Corporate Bank plc Latvian branch.
He adds that customers are increasingly implementing sustainability principles in their core business and uses green financing.
"Currently, our offered green financing solutions for companies are becoming increasingly relevant, and we see that in the future, demand for them will only grow," says E. Priksans.
Net commissions and fees across the Baltics increased by 14% this year. Over the first three quarters, the bank earned EUR 8.3 million in net commissions and fees; EUR 7.3 million last year. The bank's customers in Latvia, Lithuania, and Estonia demonstrated greater demand for guarantees, letters of credit, and cash management services.
In the first three quarters of this year, the bank reduced its operating costs to EUR 24 million in all Baltic states, which is 7% less compared to the same period last year.
“The Baltic branches are successfully strengthening their position in local markets despite varying economic conditions. We serve as a reliable financial partner for large and leading medium-sized enterprises throughout economic and business cycles. We aim for mutually successful partnerships built on trust and positive customer experiences which is why we actively invest in staff training, online service enhancement, and process automation,” stated Matias Huhtala, Head of Baltic Banking at OP Corporate Bank plc.
OP Corporate Bank plc Interim report for the period from January 1 to September 30, 2024 can be found here.
OP Financial Group's profit has increased by 24% in the third quarter
OP Corporate Bank is part of OP Financial Group, Finland’s largest financial services group. By the end of September, OP Financial Group reported its profit before taxes in the amount of EUR 1.948 billion, a 24% increase compared to EUR 1.57 billion the previous year.
For the first three quarters, OP Financial Group’s revenue rose by 10% to EUR 3.650 billion, up from EUR 3.304 billion a year ago.
At the end of the third quarter, the group's portfolio of green and sustainability-linked loans and financing facilities across the Baltics and Finland reached EUR 8.1 billion, a 31% growth from EUR 6.2 billion last year.
The group maintains strong liquidity and financing capacity, with a CET1 capital adequacy ratio of 21.4% as of September, 7.9 percentage points above the minimum requirements and 2.3 percentage points higher than the previous year. The CET1 ratio stood at 19.1% at the end of the third quarter last year.
In this quarter, OP Financial Group achieved one of the group's climate goals faster than planned - to reduce its operational emissions to zero by 2025.
OP Financial Group's Interim report for the period from January 1 to September 30, 2024 can be found here.