9M results: growth in deposit portfolio, net commissions and fees, and profit across the Baltics

At the end of September, OP Corporate Bank’s deposit portfolio in the Baltics reached EUR 2.0 billion, a 70% increase from the previous year’s EUR 1.2 billion. The loan and leasing portfolio across Lithuanian, Latvian, and Estonian branches totaled EUR 2.7 billion, compared to EUR 2.8 billion a year prior.

 “Lithuania’s economic recovery has exceeded early-year forecasts, fueling investment growth across agriculture, transport, energy, and infrastructure sectors. This growth is reflected in our increased financing activity for these sectors. We are pleased with the expanding deposit portfolio in Lithuania and with the active engagement of both new and existing clients in using our financing, daily banking operations, cash, and risk management products, which leverage the full expertise of the OP Group,” commented Leda Irzikeviciene, Country Manager at OP Corporate Bank Lithuanian branch.

Net commissions and fees across the Baltics increased by 14% this year. Over the first three quarters, the bank earned EUR 8.3 million in net commissions and fees, up from EUR 7.3 million last year. Clients in Lithuania, Latvia, and Estonia demonstrated greater demand for guarantees, letters of credit, and cash management services.

 “In an environment shaped by geopolitical challenges and macroeconomic tensions in export markets, investment activity in Lithuania shows growth, and gradually declining interest rates are spurring market activity and investor confidence. Lithuania’s economy is showing resilience to global shifts, contributing to regional stability and economic revitalization,” observed Irzikeviciene.

 Over the nine months of this year, the bank reduced its total expenses across the Baltics, which amounted to EUR 24 million, 7% lower than the previous year’s EUR 26 million.

 “The Baltic branches are successfully strengthening their position in local markets, despite varying economic conditions. We serve as a reliable financial partner for large and leading medium-sized enterprises throughout economic and business cycles. We aim for mutually successful partnerships built on trust and positive client experiences, which is why we actively invest in staff training, online service enhancement, and process automation,” stated Matias Huhtala, Head of Baltic Banking at OP Corporate Bank.

Interim report for OP Corporate Bank plc for the period from January 1 to September 30, 2024 can be found here‍

OP Financial Group exceeds forecasted profit

OP Corporate Bank is part of OP Financial Group, Finland’s largest financial services group. By the end of September, OP Financial Group reported higher-than-expected operating profit, earning EUR 1.948 billion over nine months, a 24% increase compared to EUR 1.57 billion the previous year.

For the first three quarters, OP Financial Group’s revenue rose 10% to EUR 3.650 billion, up from EUR 3.304 billion a year ago.

At the end of the third quarter, the group's portfolio of green and sustainability-linked loans and financing facilities across the Baltics and Finland reached EUR 8.1 billion, a 31% growth from EUR 6.2 billion last year.

The group maintains strong liquidity and financing capacity, with a CET1 capital adequacy ratio of 21.4% as of September, 7.9 percentage points above the minimum requirements and 2.3 percentage points higher than the previous year. The CET1 ratio stood at 19.1% at the end of the third quarter last year.

This quarter, OP Financial Group achieved carbon neutrality in its operations one year ahead of schedule.

Operating results and interim report for OP Financial Group for the period from January 1 to September 30, 2024 can be found here‍