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2021-10-27

OP Financial Group’s Interim Report for 1 January–30 September 2021: Earnings before tax EUR 858 million – strong increase in income from customer business

OP Financial Group
Interim Report 1 January–30 September 2021
Stock Exchange Release 27 October 2021 09.00am EEST

OP Financial Group’s Interim Report for 1 January–30 September 2021: Earnings before tax EUR 858 million – strong increase in income from customer business

  • Earnings before tax improved by 63% to EUR 858 million (526).
  • Income from customer business increased by a total of 7% to EUR 2,274 million (2,116). Net interest income increased by 1% to EUR 971 million (960), net insurance income by 14% to EUR 542 million (476) and net commissions and fees by 12% to EUR 761 million (679).
  • Investment income rose by EUR 128 million, to EUR 204 million (76) year on year. on year.
  • Total income increased by 14% to EUR 2,573 million (2,268).
  • Total expenses remained at the previous year’s level at EUR 1,420 million (1,414).
  • Impairment loss on receivables was EUR 95 million (183), or 0.13% (0.25) of the loan and guarantee portfolio. A year ago, impairment loss on receivables was increased by the effects of the Covid-19 pandemic on loan portfolio quality and by the adoption of the new definition of default based on a regulatory change.
  • OP Financial Group’s loan portfolio grew by 1% to EUR 95 billion (94) and deposits by 6% to EUR 75 billion (71) year on year.
  • The CET1 ratio was 19.0% (18.9).
  • Retail Banking earnings before tax improved to EUR 224 million (100). Net interest income increased by 3% and net commissions and fees by 8%. Impairment loss on receivables decreased by EUR 48 million to EUR 70 million (118). The loan portfolio grew by 2% and deposits by 6% in the year to September.
  • Corporate Banking earnings before tax improved to EUR 356 million (221). Net interest income increased by 3%, net commissions and fees by 38% and net investment income by 23%. Impairment loss on receivables decreased by EUR 41 million to EUR 25 million (66).
  • Insurance earnings before tax improved to EUR 380 million (195). Net insurance income grew by 14% to EUR 552 million (485). Investment income rose by EUR 127 million to EUR 135 million (8). The operating combined ratio improved to 81.8% (86.0) in non-life insurance.
  • Other Operations earnings before tax were EUR –70 million (39). A year ago, the sale of the Vallila property improved earnings by EUR 96 million.
  • New OP bonuses accrued to owner-customers totalled EUR 157 million (194). The accrual of OP bonuses was changed as of 1 November 2020.
  • OP Financial Group paid interest on Profit Shares for 2020 to holders of those shares on 4 October 2021. In its profit distribution, OP Financial Group has complied with the ECB’s recommendation that expired on 30 September 2021.
  • Pohjola Insurance Ltd, part of OP Financial Group, will sell Pohjola Hospital Ltd to Pihlajalinna Terveys Oy for EUR 31.8 million. The transaction is subject to approval by the Finnish Competition and Consumer Authority.
  • OP Financial Group announced in a stock exchange release on 16 August 2021 that it has improved its earnings outlook for 2021. Earnings before tax for 2021 are expected to be higher than in 2020. For more detailed information on the outlook, see "Outlook towards the year end".

OP Financial Group’s key indicators

  Q1–3/2021 Q1–3/2020 Change, % Q1–4/2020
Earnings before tax, € million 858 526 63.1 785
Retail Banking 224 100 123.3 115
    Corporate Banking 356 221 60.6 349
Insurance 380 195 95.4 348
    Other Operations -70 39 -278.8 3
New OP bonuses accrued to owner-customers, € million -157 -194 - -255
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