Q1 results: increased volume of banking operations and profitability
During the first quarter of this year, OP Corporate Bank in all Baltic countries recorded total income of EUR 17 million (compared to EUR 19 million during the same period last year) and earned operating profit of EUR 10 million – 21% more than the same period last year (EUR 8 million).
Over the first three months, net commission and fees from everyday banking operations, fund management services, guarantees provided, letters of credit, and overdrafts increased by 8% to EUR 2.4 million (compared to EUR 2.3 million during the same period last year) as customers utilized these services more, resulting in increased volumes.
"In Lithuania, we expanded our leasing portfolio – we are a leader in financing the transportation sector and continue to strengthen these positions. The country's GDP grew again in the first quarter, which is encouraging. Historically strong transportation sector has also started the year successfully, along with manufacturing and other businesses, and we are responding to their daily operations, financing, and investment needs," said Leda Irzikeviciene, Country Manager of OP Corporate Bank's Lithuania branch.
Total expenses for the bank's activities in all Baltic countries decreased by 22% in the first quarter of this year, amounting to EUR 8 million (compared to EUR 10 million during the same period last year).
"We continue to successfully implement the bank's strategy in the Baltic countries to be a reliable partner for large business customers. We nurture and strengthen these partnerships, assisting businesses in financing their long-term investments and short-term funding needs, as well as managing business risks through derivative financial instruments. The demand for these services is increasing across all countries, supported by the recovering economies of the Baltic states and Finland," says Matias Huhtala, Head of Baltic Banking at OP Corporate Bank plc.
The bank's loan and leasing portfolio in all Baltic countries remained stable in the first quarter at EUR 2.8 billion, the same as the same period last year. The deposit portfolio at the end of the first quarter reached EUR 1.0 billion, similar to the first quarter of the previous year. There continues to be strong demand for sustainable financing. The total sustainable financing portfolio of the entire OP Financial Group reached EUR 6.7 billion at the end of the first quarter.
OP Corporate Bank plc report for the period January 1st to March 31st, 2024 can be found here.
OP Financial Group's results:
OP Corporate Bank is part of Finland's largest financial services group, OP Financial Group, which generated EUR 1.259 billion in total income in the first quarter of this year, 13% higher than the same period last year (EUR 1.111 billion).
The Group's operating profit was EUR 618 million, 29% higher than the first quarter of the previous year (EUR 480 million).
OP Financial Group maintains strong liquidity and funding capabilities. The Group's CET1 ratio is 19.6% – 7.3 percentage points higher than the minimum regulatory requirements.
OP Financial Group's operational results and report for the period January 1st to March 31st, 2024 can be found here.