In Q1, income in the Baltic countries increased by 29%
In the first quarter of this year, OP Corporate Bank's income in the Baltic countries rose by 29.3% to EUR 19 million, compared to EUR 14 million in Q1 2022. Profit before taxes reached EUR 8 million, a 291% increase from last year (EUR 2 million).
"As one of the largest business financiers in Lithuania, we have maintained stable operations for a decade and remain committed to meeting the needs of domestic companies. During the first quarter, we observed a more measured demand for financing business development," says Leda Irzikeviciene, Country Manager of the OP Corporate Bank Lithuanian branch.
The loan portfolio in the Baltic countries amounted to EUR 2.8 billion at the end of Q1, a 3% decrease from the end of 2022 (EUR 2.9 billion) and a 10.6% increase compared to the end of the first quarter of last year (2.6 billion EUR). Meanwhile, the impairment loss on receivables decreased by 76.7% to EUR 1 million (EUR 3 million first quarter last year).
The deposit portfolio in the Baltic countries reached EUR 1.0 billion at the end of the first quarter and was 31.3% lower than at the end of 2022 (EUR 1.5 billion) and 81.5% higher than at the end of the first quarter of last year (EUR 0.6 billion).
During the first quarter, the bank invested in improving payment transfer systems in the Baltic countries. According to Leda Irzikeviciene, the development and robotization of information systems is one of the bank's strategic priorities.
Overall, OP Corporate Bank plc received EUR 186 million in income from all countries in Q1, a 60.5% increase from last year (EUR 116 million), and earned EUR 81 million in profit before taxes, compared to a loss of EUR 17 million in the same period last year. By the end of March, the loan portfolio increased by 2.4% to reach EUR 27.3 billion (EUR 26.7 billion), while the deposit portfolio decreased by 16% to EUR 12.4 billion (EUR 14.8 billion).
OP Corporate Bank plc is a part of OP Financial Group. OP Financial Group received EUR 1.111 billion in income in Q1 (EUR 816 million) and earned EUR 480 million in profit before tax (EUR 174 million). The loan portfolio at the end of Q1 was 1% higher than a year ago and amounted to EUR 98.8 billion (EUR 97.9 billion), while the deposit portfolio decreased by 1% to EUR 74.1 billion (EUR 75.0 billion).
OP Corporate Bank plc’s Interim Report for 1 January – 31 March 2023 is available here.
OP Financial Group Interim Report for 1 January – 31 March 2023 is available here.