Yahoo Finance OP Corporate Bank plc’s Financial Statements Bulletin 1 January–31 December 2022
OP Corporate Bank plc
Financial Statements Bulletin 1 January–31 December 2022
Stock Exchange Release 8 February 2023 at 9.00 am EET
OP Corporate Bank plc’s Financial Statements Bulletin 1 January–31 December 2022
OP Corporate Bank plc’s earnings before tax were EUR 265 million (267).
Total income decreased by 15% to EUR 564 million (661). Net investment income decreased by 30% to EUR 117 million (168). Net interest income decreased by 4% to EUR 396 million (412). A year ago, the increase was especially explained by the recognition in profit or loss of an additional benefit from the interest rate margin of the TLTRO III funding offered by the European Central Bank to banks. Other operating income decreased by EUR 17 million to EUR 32 million (49). Net commissions and fees fell by EUR 12 million to EUR 19 million (31).
Total expenses decreased by 12% to EUR 281 million (320). A year ago, expenses were particularly increased by the transfer of the interest rate benefit from the interest rate margin received under TLTRO III funding to OP Financial Group companies.
Impairment loss on receivables decreased by EUR 56 million to EUR 18 million (74).
The loan portfolio grew in the year to December by 7% to EUR 28.2 billion (26.2). The deposit portfolio decreased by 9% to EUR 14.7 billion (16.1).
The Corporate Banking and Capital Markets segment’s earnings before tax decreased to EUR 186 million (261). Total income decreased by 25% to EUR 313 million (420). Net interest income increased by 6% to EUR 225 million (213). Net investment income decreased by 23% to EUR 130 million (167). Net commissions and fees totalled EUR –49 million (–31). Other operating income decreased to EUR 7 million (70). A year ago, other operating income was increased by capital gain on the sale of OP Custody Ltd and the transfer of the interest rate benefit of OP Corporate Bank’s Group Treasury under TLTRO III funding to business units. Total expenses increased by 4% to EUR 126 million (121). Impairment loss on receivables totalled EUR 1 million (38).
The Asset and Sales Finance Services and Payment Transfers segment’s earnings before tax increased by EUR 48 million to EUR 138 million (90). Total income increased by 11% to EUR 256 million (231). Net interest income increased by 18% to EUR 183 million (155) and net commissions and fees by 8% to EUR 63 million (58). Total expenses increased by 2% to EUR 105 million (104). Impairment loss on receivables totalled EUR 12 million (37).
The Baltics segment’s earnings before tax rose to EUR 24 million (20). Total income increased to EUR 59 million (42). Net interest income increased by 48% to EUR 49 million (33). Net commissions and fees totalled EUR 10 million (9). Total expenses increased by EUR 7 million to EUR 29 million (22). Impairment loss on receivables totalled EUR 6 million (0).
The Group Functions segment’s earnings before tax amounted to EUR –83 million (–105). The financial position and liquidity remained strong.
OP Corporate Bank plc’s CET1 ratio was 11.9% (15.4), which exceeds the minimum regulatory requirement by 3.3 percentage points. OP Financial Group adopted a risk-weighted assets (RWA) floor, based on the Standardised Approach, in the second quarter. On the date of the adoption, this decreased OP Corporate Bank’s CET1 ratio by 2.4 percentage points.
On 30 September 2022, OP Financial Group filed an application with the European Central Bank (ECB) on the use of the Standardised Approach in capital adequacy calculation, instead of the internal models (IRBA) and the currently applied risk-weighted assets floor based on the Standardised Approach. Transfer to the Standardised Approach is estimated to have no essential effect on OP Corporate Bank’s capital adequacy or risk exposure.
Earnings before tax, € million | Q1–4/2022 | Q1–4/2021 | Change, % |
Corporate Banking and Capital Markets | 186 | 261 | -28.7 |
Asset and Sales Finance Services and Payment Transfers | 138 | 90 | 53.8 |
Baltics | 24 | 20 | 18.9 |
Group Functions | -83 | -105 | - |
Total | 265 | 267 | -0.5 |
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Return on equity (ROE), % | 4.9 | 5.2 | -0.3* |
Return on assets (ROA), % | 0.22 | 0.25 | -0.03* |
| 31 Dec 2022 | 31 Dec 2021 | Change, % |
CET1 ratio, % | 11.9 | 15.4 | -3.5* |
Loan portfolio, € million | 28,178 | 26,236 | 7.4 |
Guarantee portfolio, € million | 3,412 | 3,475 | -1.8 |
Other exposures, € million | 6,354 | 5,731 | -10.9 |
Deposits, € million | 14,683 | 16,089 | -8.7 |
Ratio of non-performing exposures to exposures, % | 1.5 | 1.8 | -0.3* |
Ratio of impairment loss on receivables to loan and guarantee portfolio, % | 0.06 | 0.25 | -0.19* |
*Change in ratio
Outlook for 2023
Economic growth slowed down in the course of 2022 and economic surveys suggest that economic development is still likely to deteriorate. Last year, business profitability remained good and the employment situation was strong. High inflation eroded the purchasing power among households and higher interest rates and greater uncertainty cut down on home sales.
The economy is expected to sink into a moderate recession, inflation to decrease slowly while short-term interest rates are predicted to rise further. The economic outlook remains surrounded by an exceptional degree of uncertainty. In addition to economic factors, the price and availability of energy and developments in global markets together with the geopolitical situation may abruptly affect the economic outlook.
Full-year earnings estimates for 2023 will only be provided at the OP Financial Group level, in its financial statements bulletin and interim and half-year financial reports.
The most significant uncertainties affecting earnings performance due to the war in Ukraine and inflation relate to changes in the interest rate and investment environment and to the developments in impairment loss on receivables. In addition, future earnings performance will be affected by the market growth rate and the change in the competitive situation.
All forward-looking statements in this financial statements bulletin 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 plc and its various functions, and actual results may differ materially from those expressed in the forward-looking statements.
Time of publication of 2022 reports:
OP Corporate Bank's Report by the Board of Directors and Financial Statements for 2022 | Week 10 |
OP Corporate Bank's Corporate Governance Statement 2022 | Week 10 |
Schedule for Interim Reports and Half-year Financial Report in 2023:
Interim Report Q1/2023 | 3 May 2023 |
Half-year Financial Report H1/2023 | 25 July 2023 |
Interim Report Q1-3/2022 | 25 October 2023 |
Helsinki, 8 February 2023
OP Corporate Bank plc
Board of Directors
For additional information, please contact
Katja Keitaanniemi, CEO, tel. +358 (0)10 252 1387
Anni Hiekkanen, Chief Communications Officer, tel. +358 (0)10 252 1989
DISTRIBUTION
Nasdaq Helsinki Oy
Euronext Dublin (Irish Stock Exchange)
LSE London Stock 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 Financial Group's central bank.
