OP Financial Group's Half-year Financial Report 1 January–30 June 2025: Strong result despite uncertain business environment
OP Financial GroupHalf-year Financial Report 1 January–30 June 2025Stock Exchange Release 30 July 2025 at 9.00 EEST
OP Financial Group's Half-year Financial Report for 1 January–30 June 2025: Strong result despite uncertain business environment
Operating profit was EUR 990 million (1,229). Operating profit fell by 19% or EUR 239 million year on year.
Net interest income decreased by 12% to EUR 1,194 million (1,353). Insurance service result increased by 83% to EUR 68 million (37) and net commissions and fees increased by 1% to EUR 404 million (400). Income from customer business, that is, net interest income, insurance service result and net commissions and fees, decreased by a total of 7% to EUR 1,665 million (1,790).
Impairment loss on receivables reversed came to EUR 19 million. A year ago, impairment loss on receivables totalled EUR 67 million. The ratio of impairment loss on receivables to loan and guarantee portfolio was -0.04% (0.13).
Investment income decreased by 36% to EUR 206 million (323).
Total expenses grew by 6% to EUR 1,169 million (1,104). The cost/income ratio weakened to 55% (46).
The loan portfolio grew year on year by 2% to EUR 99.7 billion (97.7). Deposits increased by 7% to EUR 81.0 billion (75.3).
The CET1 ratio was 20.8% (21.5), which exceeds the minimum regulatory requirement by 6.1 percentage points. Changes in the collateral management process decreased capital adequacy. The changes in the EU Capital Requirements Regulation (CRR3), which took effect on 1 January 2025, caused a slight reduction in the capital adequacy of OP Financial Group.
The Retail Banking segment's operating profit decreased by 31% to EUR 489 million (714). Net interest income decreased by 17% to EUR 909 million (1,093). Impairment loss on receivables totalled EUR 7 million (52). Net commissions and fees increased by 2% to EUR 365 million (359). The cost/income ratio weakened to 62% (49). The loan portfolio grew year on year by 1% to EUR 71.3 billion (70.4). Deposits increased by 4% to EUR 65.5 billion (62.9). Assets under management grew by 7% to EUR 97.7 billion (91.3).
Corporate Banking segment's operating profit grew by 25% to EUR 309 million (246). Net interest income grew by 9% to EUR 300 million (274). Impairment loss on receivables reversed came to EUR 26 million. A year ago, impairment loss on receivables totalled EUR 16 million. Net commissions and fees decreased by 9 % to EUR 42 million (46). The cost/income ratio was 34% (35). The loan portfolio grew year on year by 4 % to EUR 28.5 billion (27.4), while deposits increased by 25% to EUR 16.2 billion (13.0).
The Insurance segment's operating profit decreased by 31% to EUR 185 million (267). The insurance service result grew to EUR 68 million (37). Investment income fell to EUR 115 million (232). The combined ratio reported by non-life insurance improved to 92.4% (100.4).
Group Functions' operating profit was EUR 34 million (-8). Net interest income grew to EUR 5 million (-7).
OP Financial Group increased the OP bonuses to be earned by owner-customers for 2025 by 40% compared to the normal level of 2022. Additionally, owner-customers get daily banking services without monthly charges in 2025. During the reporting period, the combined value to owner-customers of OP bonuses and daily banking services free of monthly charge totalled EUR 208 million.
Outlook: OP Financial Group's operating profit for 2025 is expected to be at a good level but lower than that for 2023 and 2024. For more detailed information on the outlook, see "Outlook".
OP Financial Group's key figures and ratios
€ million
H1/2025
H1/2024
Change, %
Q1–4/2024
Operating profit, € million
990
1,229
-19.5
2,486
Retail Banking**
489
714
-31.4
1,328
Corporate Banking**
309
246
25.5
520
Insurance
185
267
-30.7
578
Group Functions
34
-8
,
19
New OP bonuses accrued to owner-customers, € million
-162
-154
5.3
-314
Total income
2,139
2,400
-10.9
4,844
Total expenses
-1,169
-1,104
5.8
-2,262
Cost/income ratio, %*
54.6
46.0
8.6
46.7
