OP Pohjola’s Interim Report for 1 January–30 September 2025: OP Pohjola's operating profit EUR 1,715 million

Core Insights - OP Pohjola reported an operating profit of EUR 1,715 million for the first nine months of 2025, a decrease of 12% compared to the same period in 2024, but the third quarter showed a record profit of EUR 725 million [3][16][34] - The company has announced a new benefits package for owner-customers, effective from January 2026, which aims to enhance customer engagement and service offerings [6][7][8] Financial Performance - Operating profit decreased by 12% year-on-year to EUR 1,715 million, with total income falling by 7% to EUR 3,393 million [4][34] - Net interest income dropped by 13% to EUR 1,776 million, while net commissions and fees increased by 1% to EUR 602 million [3][35] - The insurance service result surged by 90% to EUR 181 million, contributing positively to the overall performance [3][38] - Total expenses rose by 6% to EUR 1,725 million, leading to a weakened cost/income ratio of 51% [3][19] Segment Performance - Retail Banking's operating profit fell by 31% to EUR 740 million, primarily due to a 17% decrease in net interest income [3][20] - Corporate Banking's operating profit increased by 21% to EUR 454 million, supported by an 8% rise in net interest income [3][20] - The Insurance segment's operating profit decreased by 6% to EUR 429 million, despite a significant increase in the insurance service result [3][20] Capital and Liquidity - The CET1 ratio stood at 21.0%, exceeding the minimum regulatory requirement by 6.7 percentage points, indicating strong capital adequacy [3][21] - OP Pohjola maintained excellent liquidity, with a loan portfolio growing by 2% to EUR 100.2 billion and deposits increasing by 5% to EUR 79.8 billion [3][23][24] Market Environment - The economic outlook has improved following geopolitical tensions, with the euro area experiencing a growth rate of 1.5% in the first half of 2025 [10][11] - Finland's GDP is expected to grow at an average of almost 2% in 2026-2027, supported by rising corporate investments and a recovering construction sector [12][13] Strategic Initiatives - The company is focusing on enhancing its corporate customer business, particularly in SME financing, to stimulate economic growth [27][29] - OP Pohjola is investing in ICT development, including AI capabilities, to improve operational efficiency and customer service [19][32]