OP Uusimaa OP Uusimaa's Financial Review 1 January–31 December 2024
OP Uusimaa's result better than expected – operating profit EUR 222.2 million
Key figures and ratios:
- Operating profit was EUR 222.2 million (233.2).
- Returns remained at the same level at EUR 536 million (536). Net interest income increased by 2% to EUR 413 million (404). Net commissions and fees decreased* by 6% to EUR 108 million (115).
- Impairment loss on receivables in the income statement totalled EUR 18 million (40).
- Total expenses increased by 12% to EUR 240 million (214). The cost/income ratio weakened to 45% (40).
- The loan portfolio increased by 7% to EUR 17 billion (16) and the deposit portfolio increased by 4% to EUR 12 billion (11) year on year.
- The CET1 ratio was 18.3% (17.6).
- Our owner-customers earned a total of EUR 71 million (60) in OP bonuses.
* comparable growth 4%, considering the benefit of zero monthly charges for daily banking services.
OP Uusimaa key figures and ratios
| Q1–4/2024 | Q1–4/2023 | Change, % |
Operating profit, EUR million | 222 | 233 | -4.7 |
New OP bonuses accrued to owner-customers, EUR million | -71 | -60 | 16.6 |
Total income | 536 | 536 | -0.1 |
Total expenses | -240 | -214 | 11.9 |
Cost/income ratio, % | 44.8 | 40.0 | 4.8% pp |
| 31 December 2024 | 31 December 2023 | Change, % |
CET1 ratio, % | 18.3 | 17.6 | 0.7 pp |
Loan portfolio, EUR billion | 17.1 | 15.9 | 7.4 |
Deposits, EUR billion | 11.8 | 11.4 | 3.8 |
Ratio of non-performing exposures to exposures, % | 2.1 | 2.6 | -0.5 pp |
Owner-customers (1,000) | 376 | 362 | 3.9 |
Comparatives for the income statement items are based on the corresponding figures in 2023. Unless otherwise specified, figures from 31 December 2023 are used as comparatives for balance-sheet and other cross-sectional items.
OP Uusimaa's strong performance enables considerable benefits for owner-customers
OP Uusimaa's business developed better than expected during the year. OP Uusimaa's operating profit for January–December 2024 was EUR 222 million (233).
"Our strong profit performance enables us to provide owner-customers with exceptionally good benefits. The benefits have helped our customers through economically challenging times," says Olli Lehtilä, Managing Director of OP Uusimaa.
OP Uusimaa's owner-customers gained 40% extra OP bonuses in 2024 compared to 2022. What's more, OP Uusimaa did not charge owner-customers monthly fees for using daily banking services in 2024. The total value of these additional benefits to OP Uusimaa owner-customers amounted to around EUR 36 million in 2024. OP Uusimaa's owner-customers earned EUR 71 million in OP bonuses.
The benefits will also continue in 2025.
Returns in 2024 stood at EUR 536 million (536), the same level as the previous year. Net interest income grew by 2% to EUR 413 million. Net interest income peaked in the summer due to falling market interest rates. Comparable net commissions and fees increased by 4%, but were still 6% lower year on year, chiefly due to the free daily banking service benefit provided for owner-customers.
Total expenses grew by 12% from the previous year. The growth of personnel expenses and the central cooperative's charges contributed to the increased expenses.
"We have made particularly significant investments in the competence of our personnel and have also increased our headcount. These investments have resulted in strong growth in every business area, as well as even better service for our customers," says Olli Lehtilä.
OP Uusimaa's NPS, a measure of customer experience improved and reached 79 (76).
OP Uusimaa's cost/income ratio weakened to 44.8% (40.0) from the previous year.
Growth in deposits and loans
Deposits at OP Uusimaa increased by 4% year on year, to nearly EUR 12 billion. The bank's share of total deposits in Finland increased to 7.3% (7.1). The year on year increase in deposits totalled EUR 429 million.
The demand for new home loans began to pick up starting in late summer, due to falling market interest rates. In 2024, OP Uusimaa received 5% more home loan applications than in the same period the previous year. The growth in demand was particularly focused on commuter towns.
OP Uusimaa's home loan portfolio grew by 2.7% in 2024, totalling EUR 11.3 billion at the end of December.
OP Uusimaa's market share of home loans continued to increase, accounting for 10.6% (10.2) of total home loans in Finland at the end of December. In 2024, OP Uusimaa accounted for 33.5% (32.7) of new home loans granted by OP Financial Group and for 13.4% (13.4) of total new home loans in Finland.
In 2024, 50% more new corporate loans were taken out than in 2023. Uusimaa's corporate and institutional loan portfolio grew by 8% from the beginning of the year.
"OP Uusimaa's investments in corporate business are now reflected in the very favourably developing volume of corporate loans granted by OP Uusimaa," states Olli Lehtilä.
In construction and the real estate sector, the situation has been challenging since last year.
"We believe that the bottom has been reached in construction. We expect that the need for starting new projects will increase in the second half of this year," says Olli Lehtilä.
Basic renovation loans for housing companies granted by OP Uusimaa in January–December rose by 56% from the corresponding period in 2023. The growth is chiefly due to loans transferred from Handelsbanken.
The loan repayment capacity of OP Uusimaa's customers has remained good. Non-performing exposures began to decrease during the year, attaining a low level of 2.1% (2.6%) of total exposures.
"Home loan customers have been repaying their loans diligently. The number of loan modification applications has also remained at a low level," says Olli Lehtilä.
Interest rate protection is included in 31% of the home loans of OP Uusimaa's personal customers, and 7% of housing company loans.
"The rate of interest rate protection of housing company loans increased by 1.3 percentage points in 2024, which shows that housing companies have focused on long-term financial management a little more than before," says Olli Lehtilä.
Twice the number of new saver and investor customers
"Our customers' interest in securing their financial futures and accumulating wealth has markedly increased in 2024," says Olli Lehtilä.
In 2024, OP Uusimaa customers increased their investment holdings in net terms by EUR 428 million, up by 2% over the previous year. Interest in stock investing remained strong: the number of new book-entry accounts and equity savings accounts rose by 40% over the previous year.
In January–December, OP Uusimaa received twice the number of new saver and investor customers compared to the previous year. The number of new Private Banking agreements made totalled over 538 (488).
In 2024, OP Uusimaa's owner-customers subscribed for Profit Shares worth EUR 93 million. On 2 May 2024, OP Uusimaa launched a new Profit Share issue, which will continue until 30 April 2026. The return target for 2025 is 4.5%.