OP Corporate Bank plc
Half-year Financial Report 1 January–30 June 2019
Stock Exchange Release 30 July 2019 at 09.00 am EEST
OP Corporate Bank plc's Half-year Financial Report 1 January–30 June 2019
- Consolidated earnings before tax decreased to EUR 187 million (244). Earnings were eroded by the EUR 28 million decrease in investment income, the EUR 19 million increase in other operating expenses and the EUR 19 million increase in impairment loss on receivables.
- Corporate Banking earnings before tax weakened by 36% to EUR 121 million due to changes made in the valuation models of derivative positions in the first quarter and lower capital gains than a year ago. Expenses were increased by the EU stability contribution. The loan portfolio increased in the year to June by 11% to EUR 23.2 billion. The cost/income ratio was 46.5% (35.8).
- Insurance earnings before tax increased by 57% to EUR 97 million due to growth in investment income. The operating combined ratio was 92.5% (91.9).
- Other Operations earnings before tax were EUR –31 million (–6) due to lower net investment income. Liquidity and access to funding remained good.
| Earnings before tax, EUR million | H1/2019 | H1/2018 | Change, % | Q1–4/2018 |
| Corporate Banking | 121 | 188 | -35.6 | 361 |
| Insurance | 97 | 62 | 57.1 | 120 |
| Other Operations | -31 | -6 | - | -42 |
| Group total | 187 | 244 | -23.0 | 439 |
| Return on equity (ROE), % | 7.4 | 9.7 | -2.2* | 8.5 |
| Return on assets (ROA), % | 0.46 | 0.60 | -0.14* | 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 Jun 2019 | 31 Dec 2018 | Target |
| Customer experience, Net Promoter Score (NPS, -100–+100) | 75 | 71 | 70 |
| CET1 ratio, % | 14.4 | 15.1 | 15 |
| Return on economic capital, % | 12.4 | 14.4 | 22 |
| Expenses of present-day business (12-month rolling)*, EUR million | 599 | 593 | Expenses in 2020 lower than in 2015 (475) |
| Dividend payout ratio, % | 49.9 | 50 |
*Excluding expenses of the health and wellbeing business.
Schedule for Interim Reports in 2019
| Interim Report Q1-3/2019: | 29 October 2019 |
Helsinki, 30 July 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.
