OP-Pohjola Group Central Cooperative
Company Release 3 November 2010 at 8.00 am
Release category: Interim report
OP-Pohjola Group January-September 2010
-
The Group's performance was improving steadily: earnings before tax amounted to EUR 438 million (393). Third-quarter earnings were up by 54% year on year.
-
Net interest income remained at the same level in the past three quarters.
-
Other income increased by 26%, while loan losses shrank by 15% in the first three quarters. Compared with the previous quarter, loan losses went down by 23%.
-
September marked the 5th anniversary of the Pohjola acquisition. Cross-selling has been extremely successful: the number of customers who both use Group member bank services and have taken out Pohjola insurance policies has increased by over 60%.
-
OP-Pohjola Group's market share improved in life insurance and mutual funds, remained unchanged in lending, and declined in deposits. Strong growth of private customers' premiums written continued in non-life insurance.
-
The Group's capital adequacy improved further: Tier 1 ratio stood at 12.7% (12.6). This boosts the Group's competitive edge as the financial sector has to cope with tighter regulation.
-
The outlook has improved. Full-year earnings for 2010 are expected to exceed those of 2009, with the greatest uncertainty related to developments in the investment environment and loan losses.
Comments by Reijo Karhinen, Executive Chairman
Our third-quarter performance was very good, exceeding our expectations and actually being the best quarter since 2007. We have performed well throughout the year: net interest income is on the way up, other income is growing steadily, and loan losses are getting smaller and smaller. I await 2011 with confidence. We are a strong Finnish financial sector partner to our existing and new customers.
OP-Pohjola Group is a master of its own fate. Our unique operating model and solid capital adequacy, duly noted by the recent EU-wide stress tests, have boosted our success. Our Group's ability to navigate through difficult times has again proved to be top-notch, and we find ourselves even stronger now than before the financial crisis and recession. Our capital adequacy now exceeds the more stringent level of financial regulation that has been published provisionally.
The fact that we have expanded into a genuine financial services group has stabilised the entire Group's performance. We have succeeded in combining banking and insurance operations in new and innovative ways that our customers also value. Our customers have accumulated loyal customer benefits in the first three quarters to an amount in excess of EUR 110 million, using them, for example, to pay over 800,000 insurance premium bills. We are firmly committed to our customer promise of providing the best loyalty benefits. Our genuine cooperative principles have enabled us - and indeed give us the obligation - to do so.
The Finnish economy has been storming ahead in recent months, and the effects of the recession are less severe than initially feared. This is excellent news. Our country's policymakers have received several analyses on how Finland can be put back on the growth track. Finland's economic decision-makers are looking at super months ahead. Following the parliamentary elections in April 2011, a programme must be drawn that will pave the way of the Finnish economy long into the future. Now we need courage, and we must try to think one step further. No more analyses and reports, it's time for concrete action.
- - -
OP-Pohjola Group's financial performance will be presented to the media by Executive Chairman Reijo Karhinen in a press conference on 3 November 2010 at 12 noon at Teollisuuskatu 1 b, Vallila, Helsinki.
ADDITIONAL INFORMATION
Executive Chairman Reijo Karhinen, tel. +358 (0)10 252 4500
Tony Vepsäläinen, Chief Executive Officer, tel. +358 (0)10 252 4020
Harri Luhtala, CFO, tel. +358 (0)10 252 2433
Carina Geber-Teir, Chief Communications Officer, tel. +358 (0)10 252 8394
