Steady business financing demand observed in the first half in the Baltics
OP Corporate Bank continues to grow in the Baltic countries. In the first half of this year, bank's total income in Lithuania, Latvia, and Estonia reached EUR 39 million, which was 29% higher compared to the same period last year (EUR 30 million). Operating profit has increased by 109.7% this year, reaching EUR 19 million (compared to EUR 9 million in the first half of 2022).
"We have been observing a consistent need for business financing in the Baltic countries in the first half of this year. Financing volumes in Lithuania showed moderate growth, while the overall portfolio in all countries remained at the same level as last year's summer. The deposit portfolio is slightly larger than last year at the same time," says Leda Irzikeviciene, Country Manager of the OP Corporate Bank Lithuania branch.
In the first half of the year, the loan portfolio in the Baltic countries remained at a similar level as the previous year, amounting to EUR 2.8 billion compared to the end of June 2022.
The deposit portfolio in the Baltic countries reached EUR 0.9 billion, showing a 10.5% increase compared to the same period last year (EUR 0.8 billion).
According to Leda Irzikeviciene, the bank will continue its efforts to automate various processes, invest in system developments, and focus on sustainable financing in Lithuania.
"We prioritize providing a positive experience for our clients, and we value how they perceive the services we offer. This year, a customer survey conducted by the research company 'Kantar' showed that our clients highly appreciate our services, with indicators surpassing the averages in the European and global banking sectors," notes Leda Irzikeviciene.
According to the survey data, the customer retention index in Lithuania is 117 points, while in Europe, it is 71, and globally, it is 74.
In all countries, OP Corporate Bank plc's income for the first half of this year totalled EUR 360 million, which is 63.2% higher than the previous year when the bank's revenues amounted to EUR 221 million. The bank's profit before taxes for this year was EUR 171 million, an increase of 519.8% compared to the first half of the previous year (EUR 28 million).
The bank's loan portfolio at the end of June amounted to EUR 27.449 billion and showed a slight change from the loan volumes at the end of the first half of the previous year (EUR 27.537 billion).
The total deposit portfolio amounted to EUR 11.6 billion, which was 18.7% smaller compared to the same period last year when the deposit portfolio reached EUR 14.2 billion.
Interim report for OP Corporate Bank plc covering the period from January 1, 2023, to June 30, 2023, can be found here.
OP Corporate Bank plc is part of the financial services group OP Financial Group, which employs 13,000 employees. In the first half of this year, the group earned EUR 2.286 billion in total income, which is 44.1% higher than the same period last year (EUR 1.587 billion). The operating profit amounted to EUR 986 million, showing an increase of 145.2% compared to the previous year (EUR 402 million).
Operational results and interim report for OP Financial Group for the period from January 1, 2023, to June 30, 2023, can be found here.