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2019-05-07 08:00 CEST
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OP Corporate Bank plc's Interim Report for 1 January-31 March 2019

OP Corporate Bank plc
Stock Exchange Release 7 May 2019 at 09.00 EEST
Interim Report 1 January-31 March 2019

OP Corporate Bank plc's Interim Report for 1 January-31 March 2019 

  • Consolidated earnings before tax decreased to EUR 64 million (150). Net interest income rose by 4% to EUR 67 million. Total income was decreased by lower net insurance income and investment income, and higher expenses, which were mainly due to the EU stability contribution. Impairment loss on receivables remained low.
  • From the beginning of 2019, OP Corporate Bank Group's new segments are Corporate Banking, Insurance and Other Operations.
  • Corporate Banking earnings before tax decreased by 59% to EUR 45 million due to a decline in net investment income as well as the EU stability contribution. The loan portfolio increased in the year to March by 10% to EUR 22.5 billion. The cost/income ratio was 56.0% (31.7).
  • Insurance earnings before tax decreased by 14% to EUR 29 million due to higher claims incurred that weakened net insurance income. The operating combined ratio was 97.5% (93.2).
  • Other Operations earnings before tax were EUR -11 million (6) due to lower net investment income. Liquidity and access to funding remained good.
Earnings before tax, EUR million Q1/2019 Q1/2018 Change, % Q1-Q4/2018
  Corporate Banking 45 109 -58.8 361
  Insurance 29 34 -14.2 120
  Other Operations -11 6 -278.1 -42
Group total 64 150 -57.5 439
Return on equity (ROE), % 5.0 12.0 -7.0* 8.5
Return on assets (ROA), % 0.30 0.76 -0.5* 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 31 March 2019 31 Dec 2018 Target
Customer experience, NPS (-100-+100) 75 71 70
CET1 ratio, % 14.6 15.1 15
Return on economic capital, % 11.4 14.4 22
Expenses of present-day business (12-month rolling)*, EUR million 605 593 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 H1/2019: 30 July 2019
Interim Report Q1-3/2019: 29 October 2019

Helsinki, 7 May 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

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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.