OP Corporate Bank plc
Interim Report 1 January–30 September 2019
Stock Exchange Release 29 October 2019 at 9.00 EET
OP Corporate Bank plc’s Interim Report 1 January–30 September 2019
- Consolidated earnings before tax decreased to EUR 331 million (370). Net interest income increased by 4% to EUR 211 million. Earnings were eroded by a EUR 23 million decrease in net insurance income, a EUR 22 million increase in ICT costs and a EUR 12 million decrease in investment income. Impairment loss on receivables increased by EUR 5 million.
- Corporate Banking earnings before tax weakened by 23% to EUR 201 million. Earnings were decreased by changes made in the valuation models of derivatives in the first quarter, value changes in credit and counterparty risks, lower capital gains than a year ago, as well as higher ICT costs and impairment loss on receivables. The loan portfolio increased in the year to September by 9.1% to EUR 23.7 billion. The cost/income ratio was 43.6% (36.3).
- Insurance earnings before tax increased by 28% to EUR 166 million due to growth in investment income. The operating combined ratio was 91.8% (90.5).
- Other Operations earnings before tax were EUR –36 million (–21) due to lower net interest income and net investment income. Liquidity and access to funding remained good.
| Earnings before tax, EUR million | Q1–3/2019 | Q1–3/2018 | Change, % | Q1–4/2018 |
| Corporate Banking | 201 | 262 | -23.3 | 361 |
| Insurance | 166 | 129 | 28.0 | 120 |
| Other Operations | -36 | -21 | - | -42 |
| Group total | 331 | 370 | -10.7 | 439 |
| Return on equity (ROE), % | 8.4 | 9.8 | -1.3* | 8.5 |
| Return on assets (ROA), % | 0.52 | 0.62 | -0.10* | 0.54 |
Comparatives deriving from the income statement are based on figures reported for the corresponding period a year ago. Unless otherwise specified, balance-sheet and other cross-sectional figures on 31 December 2018 are used as comparatives.
*Change in ratio
| Financial targets | 30 Sep 2019 | 31 Dec 2018 | Target |
| Customer experience, Net Promoter Score (NPS, -100–+100) | 76 | 71 | 70 |
| CET1 ratio, % | 14.1 | 15.1 | 15 |
| Return on economic capital, % | 12.3 | 14.4 | 22 |
| Expenses of present-day business (12-month rolling)*, EUR million | 596 | 593 | Expenses in 2020 lower than in 2015 (475) |
| Dividend payout ratio, % | 49.9 | 50 |
*Excluding expenses of the health and wellbeing business.
OP Corporate Bank will not in future set own separate financial targets. The financial targets will in future be set at OP Financial Group level.
Financial reporting in 2020
Time of publication of 2019 reports:
| OP Corporate Bank's Report by the Board of Directors and Financial Statements for 2019 | Week 9 |
| OP Corporate Bank's Corporate Governance Statement 2019 | Week 9 |
Schedule for Financial Statements Bulletin for 2019 and Interim Reports in 2020:
| Financial Statements Bulletin 2019 | 4 February 2020 |
| Interim Report Q1/2020 | 28 April 2020 |
| Half-year Financial Report H1/2020 | 21 July 2020 |
| Interim Report Q1−3/2020 | 22 October 2020 |
Helsinki, 29 October 2019
OP Corporate Bank plc
Board of Directors
For additional information, please contact:
Katja Keitaanniemi, President and CEO, tel. +358 (0)10 252 1387
Tuuli Kousa, Chief Communications Officer, tel. +358 (0)10 252 2957
DISTRIBUTION
Nasdaq Helsinki Oy
Euronext Dublin (Irish Stock Exchange)
LSE London Stock Exchange
SIX Swiss Exchange
Major media
op.fi
OP Corporate Bank plc is part of OP Financial Group. OP Corporate Bank and OP Mortgage Bank are responsible for OP's funding in money and capital markets. As laid down in the applicable law, OP Corporate Bank, OP Mortgage Bank and their parent company OP Cooperative and other OP Financial Group member credit institutions are ultimately jointly and severally liable for each other's debts and commitments. OP Corporate Bank acts as OP's central bank.
