OP Mortgage Bank: Half-year Financial Report for 1 January–30 June 2025
OP Mortgage BankHalf-year Financial Report 1 January–30 June 2025Stock Exchange Release 30 July 2025 at 10.00 EEST
OP Mortgage Bank: Half-year Financial Report for 1 January–30 June 2025
OP Mortgage Bank (OP MB) is the covered bond issuing entity of OP Financial Group. Together with OP Corporate Bank plc, its role is to raise funding for OP Financial Group from money and capital markets.
Financial standing
At the end of June, bonds issued by OP MB totalled EUR 15,800 million (14,800)* and 75 OP cooperative banks had a total of EUR 15,800 million (14,800) in intermediary loans from OP MB.
OP MB's covered bonds after 8 July 2022 are issued under the Euro Medium Term Covered Bond (Premium) programme (EMTCB), pursuant to the Finnish Act on Mortgage Credit Banks and Covered Bonds (151/2022). The collateral is added to the EMTCB cover pool from the member cooperative banks' balance sheets via the intermediary loan process on the issue date of a new covered bond.
In April, OP MB issued its first covered bond of the year in the international capital market. The fixed-rate covered bond of EUR 1 billion has a maturity of five years and three months. All proceeds of the bond were intermediated to 38 OP cooperative banks in the form of intermediary loans.
The terms of issue are available on the op.fi website, under Debt investors: https://www.op.fi/en/op-financial-group/debt-investors/issuers/op-mortgage-bank/emtcb-debt-programme-documentation
Operating profit was EUR 2.9 million (4.4). The company's financial standing remained stable throughout the reporting period.
* The comparatives for 2024 are given in brackets. For income statement and other aggregated figures, January–June 2024 figures serve as comparatives. For balance-sheet and other cross-sectional figures, figures at the end of the previous financial year (31 December 2024) serve as comparatives.
Collateralisation of bonds issued to the public
The European covered bonds (premium) issued under the Euro Medium Term Covered Bond (Premium) Programme (EMTCB) of EUR 25 billion, established on 11 October 2022 in accordance with the Act on Mortgage Credit Banks and Covered Bonds (151/2022), totalled EUR 7,250 million. The cover pool included a total of EUR 8,054 million in loans serving as collateral at the end of June. Overcollateralisation exceeded the minimum requirement under the Act (151/2022).
The covered bonds issued under the Euro Medium Term Covered Note programme (EMTCN) of EUR 20 billion, established on 12 November 2010 in accordance with the Act on Mortgage Credit Banks (Laki kiinnitysluottopankkitoiminnasta, 688/2010), totalled EUR 8,550 million. The cover pool included a total of EUR 9,363 million in loans serving as collateral at the end of June. Overcollateralisation exceeded the minimum requirement under the Act (688/2010).
Capital adequacy
OP MB's Common Equity Tier 1 (CET1) ratio stood at 374.1% (797.0) at the end of June. The ratio decreased due to an increase in total risk exposure amount based on a regulatory change. The changes in the EU Capital Requirements Regulation (CRR3), which entered into force on 1 January 2025, particularly affected the calculation of total risk exposure amount. The figures for the comparative period have been calculated based on the regulation in force in 2024. The minimum CET1 capital requirement is 4.5% and the requirement for the capital conservation buffer is 2.5%. The minimum total capital requirement is 8% (or 10.5% with the increased capital conservation buffer). OP MB fully covers its capital requirements with CET1 capital, which in practice means that it has a CET1 capital requirement of 10.5%. Estimated profit distribution has been subtracted from earnings for the reporting period.
The capital adequacy requirement for credit risk is measured using the Standardised Approach (SA).
As part of OP Financial Group, OP MB is supervised by the European Central Bank. OP Financial Group presents capital adequacy information in its financial statements bulletins and interim and half-year financial reports in accordance with the Act on the Amalgamation of Deposit Banks. OP Financial Group also publishes Pillar 3 disclosures.
Own funds and capital adequacy
TEUR
30 Jun 2025
31 Dec 2024
Equity capital
367,016
368,122
Common Equity Tier 1 (CET1) before deductions
367,016
368,122
Proposed profit distribution
-2,360
-3,466
CET1 capital
364,657
364,656
Tier 1 capital (T1)
364,657
364,656
Tier 2 capital (T2)
Total own funds
364,657
364,656
Total risk exposure amount
