Interim results | The increase in interest rates rains on OP’s coffers – net interest income rose by 25 percent

OP GROUP the result clearly improved from a year ago. OP’s profit before taxes in January-December was 1,265 million euros, compared to 1,127 million euros a year earlier.

OP’s result improved from 2021 by more than 12 percent.

Net interest income from banking increased to EUR 1,618 million, compared to EUR 1,409 million a year ago. Retail bank’s net interest income increased by 25 percent and Yrityspanki’s net interest income by 10 percent from a year ago.

The bank’s net interest income is generated by the difference between the interest charged on loans and the interest paid on deposits. Interest rates rose exceptionally fast last year, which supports banks’ profitability.

OP’s the insurance margin increased by 20 percent to 889 million euros last year. The uncertainty of the investment market, on the other hand, hit OP’s fee income. The group’s net fee income decreased by 3 percent to EUR 1,005 million.

“The results of all three of our business areas were at a good level,” OP’s CEO Timo Ritakallio says in the announcement.

“Despite the deterioration of the general economic situation, the credit management ability of both personal customers and corporate customers remained good throughout the year and the number of bad debts did not increase. The total number of impairments also remained at a low level.”

OP expects its results to improve further this year thanks to increased interest rates. OP warns, however, that it is difficult to predict the economic development of the year that has begun, due to, among other things, accelerated inflation and the uncertainty brought about by the war in Ukraine.