OP Company Financial institution plc
Inventory Trade Launch 10 February 2021 at 9.00 am EET
Monetary Statements Bulletin
OP Company Financial institution plc’s Monetary Statements Bulletin for 1 January–31 December 2020
- Consolidated earnings earlier than tax rose to EUR 529 million (412). Web insurance coverage earnings elevated by 38% to EUR 555 million (402) and web curiosity earnings by 10% to EUR 325 million (295). Transferring the remainder of the administration of the statutory earnings-related pension insurance coverage to Ilmarinen Mutual Pension Insurance coverage Firm on the finish of 2020 lowered the Group’s and the Insurance coverage phase’s pension prices by EUR 85 million. Excluding the impact of the pension legal responsibility switch, whole bills elevated by 1% to EUR 641 million. The consolidated earnings have been decreased by a fall of 41% in funding earnings to EUR 228 million (384).
- Company Banking earnings earlier than tax elevated by 15% to EUR 301 million (262). Web funding earnings elevated by 22% to EUR 140 million (115) and web curiosity earnings by 3% to EUR 395 million (383). Company Banking earnings have been weakened by a rise in bills to EUR 231 million (220). Impairment loss on receivables totalled EUR 53 million (51). The mortgage portfolio grew within the yr to December by 1% to EUR 24.0 billion (23.7).
- Insurance coverage earnings earlier than tax rose by 44% to EUR 288 million (200). Web insurance coverage earnings elevated by 38% to EUR 556 million (402). The discount within the low cost fee for insurance coverage legal responsibility elevated non-life insurance coverage claims incurred by EUR 45 million (136). Funding earnings fell by 69% to EUR 75 million (242). The working mixed ratio improved to 87.8% (92.7).
- Different Operations earnings earlier than tax have been EUR –58 million (–50). Liquidity remained good regardless of the Covid-19 disaster.
- The Group’s CET1 ratio was 15.1% (14.9).
|Earnings earlier than tax, € million||Q1–4/2020||Q1–4/2019||Change, %|
|Return on fairness (ROE), %||9.2||7.8||1.4*|
|Return on property (ROA), %||0.55||0.49||0.06*|
|31 Dec 2020||31 Dec 2019||Change, %|
|CET1 ratio, %||15.1||14.9||0.1*|
|Mortgage portfolio, € million||24,485||23,829||2.8|
|Deposits, € million||13,300||11,103||19.8|
|Ratio of non-performing receivables to mortgage and assure portfolio, %||1.1||0.5||0.5*|
|Ratio of impairment loss on receivables to mortgage and assure portfolio, %||0.20||0.19||0.01*|
Comparatives deriving from the earnings assertion are primarily based on figures reported for the corresponding intervals a yr in the past. Except in any other case specified, balance-sheet and different cross-sectional figures on 31 December 2019 are used as comparatives.
*Change in ratio
Outlook for 2021
The variety of Covid-19 infections elevated in most international locations over the autumn. Because of this, the financial restoration that began final summer season faltered considerably. In direction of the tip of the yr, the consequences of the pandemic on the economic system started to ease off, primarily affecting the service sector. Financial restoration will proceed because the pandemic will proceed to subside. In monetary markets, expectations are optimistic. Coverage actions by central banks are anticipated to settle down markets and maintain rates of interest low.
The Covid-19 pandemic will proceed to trigger uncertainty over the financial outlook. A sudden worsening of the pandemic would have an effect on OP Company Financial institution in 3 ways: financial uncertainty and uncertainty within the monetary and capital market would enhance, an increase in monetary difficulties amongst clients would enhance credit score threat and reduce the demand for providers, and a worsening illness state of affairs may make it harder for OP Monetary Group to run its operations effectively.
Probably the most important uncertainties affecting earnings efficiency as a result of Covid-19 disaster relate to adjustments within the rate of interest and funding setting and to the developments in impairment losses. As well as, future earnings efficiency might be affected by the market development fee, change within the aggressive state of affairs and the impact of huge claims on claims expenditure.
Full-year earnings estimates for 2021 will solely be supplied on the OP Monetary Group degree, in its monetary statements bulletin and interim studies.
All forward-looking statements on this Interim Report expressing the administration’s expectations, beliefs, estimates, forecasts, projections and assumptions are primarily based on the present view of the long run growth within the enterprise setting and the long run monetary efficiency of OP Company Financial institution Group and its varied capabilities, and precise outcomes could differ materially from these expressed within the forward-looking statements.
Time of publication of 2020 studies:
|OP Company Financial institution’s Report by the Board of Administrators and Monetary Statements for 2020|| Week 10, 2021
|OP Company Financial institution’s Company Governance Assertion 2020|| Week 10, 2021
Schedule for Interim Experiences and Half-year Monetary Report in 2021:
|Interim Report Q1/2021||28 April 2021|
|Half-year Monetary Report H1/2021||28 July 2021|
|Interim Report Q1−3/2021||27 October 2021|
Helsinki, 10 February 2021
OP Company Financial institution plc
Board of Administrators
For extra data, please contact:
Katja Keitaanniemi, President and CEO, tel. +358 (0)10 252 1387
Tuuli Kousa, Chief Communications and Company Accountability Officer, tel. +358 (0)10 252 2957
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OP Company Financial institution plc is a part of OP Monetary Group. OP Company Financial institution and OP Mortgage Financial institution are accountable for OP’s funding in cash and capital markets. As laid down within the relevant regulation, OP Company Financial institution, OP Mortgage Financial institution and their father or mother firm OP Cooperative and different OP Monetary Group member credit score establishments are finally collectively and severally answerable for one another’s money owed and commitments. OP Company Financial institution acts as OP Monetary Group’s central financial institution.