OP Corporate bank Plc’s interim report 1.1.-30.6.2018

OP Corporate bank Plc

Stock exchange release 1.8.2018 there is 09.00

Interim report 1.1-30.6.2018

OP Corporate bank Plc’s interim report 1.1.-30.6.2018

  • The group’s profit before tax was € 244 million (280). Return on equity was 9.7 percent (11.6). Return on total assets was 0.60% (0,75).

  • Earnings before tax increased to 183 million euros (167). Lending volumes increased on a year by 9.3 percent to eur 21 billion. The cost-income ratio was 35.1 percent (30.8 m).

  • Earnings before tax decreased to eur 60 million (98). The operative combined ratio was 91,9 (92,5). Net income from investments at fair value was eur 14 million (78).

  • Other operations reported a profit before tax of eur 1 million (16). The liquidity and availability of funding remained good.

  • CET1-capital ratio was 15.6 per cent (16.0 m). The goal is 15 per cent.

  • Licentiate of technology Katja Keitaanniemi was appointed managing director of OP Corporate. She will begin her work 6.8.2018.

  • Outlook unchanged: the OP Företagsbankskoncernens profit before tax is expected to be approximately as large as 2017.

As the comparative figures for the results have been used in the figures for the corresponding periods in 2017. For when comparing balance sheet and other cross-sectional items, which figure is used at the end of 2017, unless otherwise mentioned. OP Corporate banking took 1.1.2018 applied IFRS 9 «Financial instruments». As the comparative figures for the results have been used in centuries according to the standard IAS 39 for the corresponding periods in 2017. For when comparing balance sheet and other cross-sectional items, which figure is used, in accordance with IAS 39 at the end of 2017, if not otherwise mentioned.

* Change in the ratio

Economic objectives

30.6.2018

31.12.2017

Goal

Customer experience, NPS (-100-+100)

70

69

70, in the long term, 90

CET1 ratio, %

15,6

16,0

15

Return on economic capital, %

16,2

17.8 the

22

Expenses for current business operations*, mill. e

566

534

Costs 2020

under cost 2015 (475)

Utdelningsförhållande of the profit for the financial period, %

 

49,7

50

*The costs of health and välbefinnanderörelsen has been deducted from the costs. Moving 12 months.

Prospects for the remainder of the year

The outlook for the global economy and the economy within the euro area are still favourable despite the fact that economic growth in the euro area has not quite reached up to the expectations in the second quarter. As a result of the good economic developments, the European central bank is gradually normalizing its monetary policy. In Finland, too, economic growth has been favourable. The economy has grown significantly on a broad front, employment has improved, the current account continued to show surplus and the confidence in the economy is good.

Economic development is also estimated in the near future be favorable despite the fact that the growth rate of the economy in Finland is projected to slow. The main risks in the near future has to do with the growing uncertainty in the financial markets, as well as with the political world. In the longer term, there is a risk that economic growth will be modest, unless the economy can be renewed enough when the population is ageing and the development is proceeding.

For the financial services industry has the world as a whole, been quite favourable. The low market interest rates have slowed the growth in the banks ‘net interest income and lower revenue from the insurance companies’ fixed-income investments, but also at the same time enhanced the customer kreditbetalningsförmåga. Impairment losses are very small. The most important strategic risks in the financial sector is associated currently with the change in customer behaviour, the digitalisation of the world, the competition outside of the traditional industry and the growing complexity of the regulation. Brytningsskedet in the industry threatens to in the next few years slow down the growth and break down the revenues. The financial industry stands in the next few years the face of a strong need to be renewed. Changes in the operating environment increases the importance of a long-term renewal and the importance of controlling the profitability and capital adequacy.

OP Företagsbankskoncernens profit before tax is expected to be approximately as large as 2017. The major uncertainties in the performance connects itself to the changes in the interest rate and placeringsmiljön, the development of the impairment losses, the rate of growth in the market, changes in the competitive environment and the effect of large claims on claims expenditure. The standard IFRS 9, which was introduced at the beginning of 2018, is expected to increase resultatvolatiliteten in the short term and immediately after the adoption reducing investment income.

All estimates presented in this interim report are based on the current views on the development of the world, OP Företagsbankskoncernen and its functions, and actual results may differ significantly.

Helsinki 1.8.2018

OP Corporate bank Plc

The board of directors

Financial information 2018

OP Corporate bank Plc publishes the following financial information on the basis of their regular notification obligations in its capacity as issuer of the securities.

The interim reports 2018, the publication of the following days:

Interim report 1.1-30.9.2018

31.10.2018

DISTRIBUTION

Nasdaq Helsinki

Euronext Dublin (Irish Stock Exchange)

LSE the London Stock Exchange

SIX Swiss Exchange

Central media

www.op.fi

Details:

Hannu Jaatinen, Acting. executive director, tel 010 252 2874

Carina Geber-Teir, Communications director, tel 010 252 8394

OP Corporate bank Plc are a part of Finland’s leading customer-owned financial services group OP Group. OP Corporate bank and OP mortgage bank are responsible for the OPs borrowing on the money and capital markets. OP Corporate bank, OP mortgage bank and their parent company OP Cooperative and other member credit institutions of the OP bank has a statutory joint and several liability for each other’s debts and commitments.

OP Corporate bank is also the central bank for OP.

OP Corporate bank Plc’s interim report Q2 2018

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: OP Yrityspankki Oyj via Globenewswire

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