H1 results: increased cash management, trade financing volumes and deposit portfolio
In the first half of this year, OP Corporate Bank in the Baltic States earned EUR 35 million in total income (EUR 39 million for the same period last year). The bank's operating profit remained stable in the Baltic States, amounting to EUR 19 million, the same as in the first half of last year.
During this period, net commissions and fees in the Baltic States increased. Compared to the first half of last year, net commissions and fees grew by 16% to EUR 5.4 million (EUR 4.6 million last year). Bank clients in the Baltic States actively utilised fund management services, guarantees, overdrafts, and performed more daily banking operations.
"As interest rates decline, we strategically focus on increasing investment financing, addressing the needs of existing clients, and attracting new ones. The state actively invests in infrastructure, thus significantly increasing the demand for guarantees. Additionally, companies are actively interested in fund management solutions and virtual cash pooling. We can consolidate group company accounts not only in Lithuania but also in other Baltic States and Finland, helping businesses manage cash flows more efficiently," notes Leda Irzikeviciene, Country Manager of OP Corporate Bank Lithuanian branch.
At the end of June, the bank's deposit portfolio in the Baltic States 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, remaining at a similar level to the same period last year.
"We are part of a leading Finnish financial group, making our accumulated expertise, reliability, and high credit ratings attractive to large companies across the Baltic States. Businesses are entrusting more and more deposits to us, and we are recording significant deposit growth. We aim to be a comprehensive business finance partner, offering a wide range of banking services to meet the changing needs of companies," states Matias Huhtala, Head of Baltic Banking at OP Corporate Bank.
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).
At the end of June, OP Financial Group's portfolio of green and sustainability-linked loans and facilities in the Baltic States and Finland amounted to EUR 7.9 billion, which is 32% more than a year ago (EUR 6.6 billion).
The 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