OP Corporate Bank plc financial results in the Baltics for January 1 – June 30, 2024
In the first half of this year, OP Corporate Bank plc in the Baltics earned EUR 35 million in total income; EUR 39 million for the same period last year. The bank's operating profit in the Baltics remained stable, amounting to EUR 19 million, the same as in the first half of the last year.
Compared to the first half of the last year, net commissions and fees in the Baltic States increased by 16%, i.e., from EUR 4.6 million to 5,4 million. Bank’s customers in the Baltic States actively utilised fund management services, guarantees, overdrafts, and performed more daily banking operations.
“In the first half of this year, small positive trends are starting to appear in the investment activity. It brought already expected interest rate cuts by the European Central Bank. This is good news for business and the overall stability of the situation - inflation slows down, rates stabilize, it allows businesses to better plan investments ahead and restart development plans that may have slowed down. The banking industry is one of the first to see the beginnings of business projects and from conversations with our customers we see cautious optimism when considering investments,” says Elmārs Prikšāns, General Manager of OP Corporate Bank plc Latvian branch.
At the end of June, the bank's deposit portfolio in the Baltics was 63% larger, amounting to EUR 1.5 billion. A year ago, it was EUR 0.9 billion. The loan and leasing portfolio amounted to EUR 2.6 billion.
"As part of a leading Finnish financial group, our accumulated expertise, reliability, and high credit ratings are attractive to large companies across the Baltics. Businesses are entrusting us with more and more deposits – we are recording significant deposit growth. We strive to be a comprehensive business finance partner – offering a wide range of banking services tailored to the evolving needs of companies," says Matias Huhtala, Head of Baltic Banking at OP Corporate Bank plc.
A stable half-year was also due to the reduced total expenses of the Baltic branches. The bank's expenses in all three Baltic States decreased by almost 11%, amounting to EUR 16 million, compared to EUR 18 million last year.
OP Corporate Bank plc report for 1 January - 30 June 2024 can be found here.
OP Financial Group Results
OP Corporate Bank is part of the Finnish financial services leader OP Financial Group. In the first half of the year, the group earned EUR 2.4 billion in revenues, an 11% increase compared to the same period last year (EUR 2.164 billion).
The group's operating profit amounted to EUR 1.229 billion, almost 25% higher than in the first half of last year (EUR 986 million).
OP Financial Group maintains strong liquidity and funding capabilities. The group's Common Equity Tier 1 (CET1) ratio as of 30 June was 20.8%, which is 7.5 percentage points higher than the minimum regulatory requirements.
OP Financial Group results and report for 1 January - 30 June 2024 can be found here.