OP Corporate Bank plc’s Interim Report for 1 January–30 September 2021

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OP Corporate Bank plc
Interim Report 1 January–30 September 2021
Stock Exchange Release 27 October 2021 at 9.00am EEST

OP Corporate Bank plc’s Interim Report 1 for January–30 September 2021

  • Consolidated earnings before tax improved to EUR 469 million (319). Total income increased by 24% to EUR 1,037 million (838). Investment income of EUR 214 million rose by EUR 76 million year on year. Net insurance income increased by 14% to EUR 528 million (463). Net interest income decreased by 4% to EUR 235 million (244). Total expenses increased by 10% to EUR 519 million (473). Impairment loss on receivables totalled EUR 25 million (65).

  • Corporate Banking earnings before tax improved to EUR 279 million (194). Total income increased by EUR 63 million to EUR 498 million (434). Net investment income increased to EUR 128 million (104) million and net interest income to EUR 306 million (298). Earnings were also strengthened by lower impairment loss on receivables. The loan portfolio decreased in the year to September by 0.5% to EUR 24.4 billion (24.6).

  • Insurance earnings before tax improved to EUR 282 million (169). Net insurance income increased by 14% to EUR 529 million (463). Investment income rose to EUR 83 million (21). The operating combined ratio improved to 81.8% (86.0).

  • Other Operations earnings before tax were EUR –92 million (–43). Liquidity remained strong.

  • The Group’s CET1 ratio was 14.8% (15.1).

  • On 2 July 2021, OP Corporate Bank plc’s Board of Directors approved a demerger plan whereby the shares of Pohjola Insurance Ltd, OP Corporate Bank plc’s subsidiary, will be transferred to the direct ownership of OP Cooperative. The planned date for registration of the implementation of the demerger is 29 November 2021. After the partial demerger, OP Corporate Bank plc will be engaged in corporate banking and central bank business.

  • Pohjola Insurance Ltd, OP Corporate Bank’s subsidiary, 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 Corporate Bank plc’s Board of Directors made a decision on 27 October 2021, whereby OP Corporate Bank plc will sell all OP Custody Ltd shares to OP Cooperative. After the planned structural arrangements have been carried out, OP Corporate Bank plc no longer constitutes a reporting group.

Earnings before tax, € million



Change, %


Corporate Banking










Other Operations





Group total





Return on equity (ROE), %





Return on assets (ROA), %





30 Sep 2021

30 Sep 2020

Change, %

31 Dec 2020

CET1 ratio, %





Loan portfolio, € million**





Guarantee portfolio, € million





Other exposures, € million





Deposits, € million





Ratio of non-performing exposures to exposures, %***





Ratio of impairment loss on receivables to loan and guarantee portfolio, %





Comparatives deriving from the income statement are based on figures reported for the corresponding periods a year ago. Unless otherwise specified, balance-sheet and other cross-sectional figures on 31 December 2020 are used as comparatives.

*Change in ratio
** Reference data from Q3/2020 has been adjusted to correspond to the current monitoring.
*** The name and content of the ratio were changed in Q1/2021. Comparatives have been adjusted accordingly. More detailed information on the change can be found under table Forborne loans and non-performing receivables in the Risk exposure section of this Interim Report.

Outlook for 2021

The world and Finnish economies continued their recovery in the third quarter, but the speed of recovery began to tail off. The recovery was strengthened by the lifting of Covid-19 restrictions, which boosted the service sectors in particular. However, industry suffered from supply chain problems caused by the rapid economic recovery and partly by the Covid-19 pandemic.

Prices of many raw materials have risen as a result of the fast recovery, pushing up inflation. Although the inflationary surge is largely expected to be transient, a rise in energy prices in the autumn revived inflation concerns in the market. Uncertainty in the stock market grew in the early autumn and interest rate expectations rose.

The recovery is expected to continue in the near term. Household and corporate finances in Finland are healthy and the mood on the housing market should remain favourable. The outlook for short-term market rates is stable. However, several factors are expected to increase uncertainty about the future. Restrictions due to the Covid-19 pandemic may still be resumed, slowing the recovery. Higher energy prices may weaken spending power and production chain problems could lead to interruptions in manufacturing. Uncertainty may also be registered in the financial market.

A sudden worsening of the pandemic would affect OP Corporate Bank in three ways: economic uncertainty and uncertainty in the financial and capital markets would increase, a rise in financial difficulties among customers would increase credit risk and decrease the demand for services, and a worsening disease situation could make it more difficult for OP Financial Group to run its operations efficiently.

The most significant uncertainties affecting earnings performance due to the Covid-19 crisis relate to changes in the interest rate and investment environment and to the developments in impairment losses. In addition, future earnings performance will be affected by the market growth rate, change in the competitive situation and the effect of large claims on claims expenditure.

Full-year earnings estimates for 2021 will only be provided at the OP Financial Group level, in its financial statements bulletin and interim and half-year financial reports.

All forward-looking statements in this Interim Report expressing the management's expectations, beliefs, estimates, forecasts, projections and assumptions are based on the current view of the future development in the business environment and the future financial performance of OP Corporate Bank Group and its various functions, and actual results may differ materially from those expressed in the forward-looking statements.

Schedule for Financial Statements Bulletin 2021 and Interim Reports and Half-year Financial Report in 2022:

Financial Statements Bulletin 2021

9 February 2022

Interim Report Q1/2022

4 May 2022

Half-year Financial Report H1/2022

27 July 2022

Interim Report Q1-3/2022

26 October 2022

Helsinki, 27 October 2021

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 and Corporate Responsibility Officer, tel. +358 (0)10 252 2957

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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.

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