OP Corporate Bank plc's Interim Report 1 January–31 March 2024
May 08 2024 - 2:00AM
OP Corporate Bank plc's Interim Report 1 January–31 March 2024
OP Corporate Bank plcInterim Report 1 January–31 March 2024Stock
Exchange Release 8 May 2024 at 9.00 am EEST
OP Corporate Bank plc's Interim Report 1 January–31
March 2024
- OP Corporate
Bank plc's operating profit rose to EUR 112 million
(81).
- Net interest income
grew by 23% to EUR 157 million (127). Investment income fell by 72%
to EUR 9 million (31). Net commissions and fees increased to
EUR 19 million (17).
- Impairment loss on
receivables totalled EUR 12 million (11).
- Total operating
expenses decreased by 24% to EUR 71 million (94). The cost/income
ratio improved to 36% (50).
- In the year to
March, the loan portfolio grew by 2.0% to EUR 27.8 billion (27.3)
and the deposit portfolio by 7.1% to EUR 13.3 billion (12.4).
- The
Corporate Banking and Capital Markets segment’s operating
profit increased to EUR 80 million (33). Net interest income grew
by 38% to EUR 97 million (70). Investment income fell by 45% to
EUR 10 million (18). Operating expenses decreased by 32% to
EUR 30 million (44). Impairment loss on receivables reversed
amounted to EUR 1 million. A year ago, impairment loss on
receivables totalled EUR 13 million.
- The Asset
and Sales Finance Services and Payment Transfers segment’s
operating profit was EUR 37 million (39). Net interest income grew
by 7% to EUR 55 million (51). Net commissions and fees increased to
EUR 17 million (15). Operating expenses decreased by 21% to EUR 28
million (36). Impairment loss on receivables totalled EUR 13
million. A year ago, impairment loss on receivables reversed came
to EUR 2 million.
- The
Baltics segment's operating profit amounted to EUR 10
million (8). Net interest income decreased to EUR 15 million (16).
Net commissions and fees, EUR 2 million, were at the previous
year’s level. Operating expenses decreased by 22% to EUR 8 million
(10).
- The Group
Functions segment’s operating loss was EUR 15 million. A
year ago, operating profit was EUR 1 million. Financial position
and liquidity remained strong.
- OP Corporate
Bank plc’s CET1 ratio was 13.3% (13.0), which exceeds the
minimum regulatory requirement by 4.6 percentage points.
OP Corporate Bank plc’s key indicators
Operating profit (loss), € million |
Q1/2024 |
Q1/2023 |
Change, % |
Q1–4/2023 |
Corporate Banking and Capital Markets |
80 |
33 |
139.3 |
198 |
Asset and Sales Finance Services and Payment Transfers |
37 |
39 |
-5.0 |
126 |
Baltics |
10 |
8 |
20.5 |
27 |
Group Functions |
-15 |
1 |
- |
-22 |
Total |
112 |
81 |
37.7 |
329 |
Total income |
196 |
186 |
5.0 |
738 |
Total expenses |
-71 |
-94 |
-24.1 |
-313 |
Cost/income ratio, % |
36.5 |
50.5 |
-14.0 |
42.4 |
Return on equity (ROE), % |
7.5 |
6.0 |
1.5* |
5.9 |
Return on assets (ROA), % |
0.46 |
0.44 |
0.01* |
0.30 |
|
31 Mar 2024 |
31 Mar 2023 |
Change, % |
31 Dec 2023 |
CET1 ratio, % |
13.3 |
13.1 |
0.2* |
13.0 |
Loan portfolio, € million |
27,850 |
27,312 |
2.0 |
28,076 |
Guarantee portfolio, € million |
3,030 |
3,438 |
-11.9 |
3,184 |
Other exposures, € million |
5,558 |
6,513 |
-14.7 |
5,745 |
Deposits, € million |
13,258 |
12,377 |
7.1 |
14,629 |
Ratio of non-performing exposures to exposures, % |
2.2 |
1.9 |
0.3* |
2.2 |
Ratio of impairment loss on receivables to loan and guarantee
portfolio, % |
0.16 |
0.14 |
0.02* |
0.31 |
Comparatives for the income statement are based on the
corresponding figures in 2023. Unless otherwise specified, figures
from 31 December 2023 are used as comparatives for balance-sheet
and other cross-sectional items. * Change in ratio.
Decisions by OP Corporate Bank plc's Annual General
Meeting
On 2 April 2024, 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 Uudenmaan Osuuspankki 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 Legal Officer and Group General Counsel Tiia Tuovinen
who acted in this position until the end of 2023 and will leave OP
Financial Group at her own request on 1 July 2024. She acts as
Senior Advisor from the beginning of January until the end of June.
The AGM elected Mikko Vepsäläinen, Managing Director of
Pohjois-Savon Osuuspankki, as a new Board member.
The AGM elected PricewaterhouseCoopers Oy, an audit firm, to act
as OP Corporate Bank’s auditor for the financial year 2024, with
Lauri Kallaskari, Authorised Public Accountant, acting as the chief
auditor appointed by PricewaterhouseCoopers Oy.
The AGM of 2 April 2024 adopted the Financial Statements for
2023 and discharged members of the Board of Directors and the CEO
from liability. The AGM decided that a dividend of EUR
76,000,000.00 be distributed for the financial year 2023, totalling
EUR 0.24 per share, and that following dividend distribution, the
remaining amount of EUR 188,955,506.86 be recognised in the
retained earnings/loss account. Following dividend distribution,
the company’s distributable earnings total EUR 3,073,216,428.77 and
its distributable funds total EUR 3,404,597,265.83.
Outlook for 2024
The Finnish economy declined in the first quarter, but recovery
in the export market, improvement in spending power and a fall in
interest rates are anticipated to ameliorate the economy towards
the year end. The escalation of geopolitical crises may abruptly
affect capital markets and the economic environment.
A full-year earnings estimate for 2024 will only be provided at
Group level in OP Financial Group's financial statements bulletin
and interim and half-year financial reports.
The most significant uncertainties affecting OP Corporate Bank’s
earnings performance due to geopolitical risks and inflation relate
to developments in the business environment, changes in the
interest rate and investment environment and to the 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 Interim Reports and
Half-year Financial Report in 2024:
Half-year Financial Report H1/2024 |
24 July 2024 |
Interim Report Q1−3/2024 |
31 October 2024 |
Helsinki, 8 May 2024
OP Corporate Bank plcBoard of
Directors
For additional information, please
contact:Katja Keitaanniemi, Chief Executive Officer, tel.
+358 (0)10 252 1387Lotta Ala-Kulju, Head of Corporate
Communications, tel. +358 (0)10 252 8719
DISTRIBUTIONNasdaq Helsinki OyEuronext Dublin (Irish Stock
Exchange)LSE London Stock ExchangeMajor mediaop.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.
- OP Corporate Bank plc's Interim Report Q1 2024