OP Pohjola Reports Strong Performance Despite Operating Profit Decline
News related to:OP Pohjola · 3 min read
OP Pohjola reported a strong performance in its interim report for the period from 1 January to 30 September 2026, highlighting growth in its loan portfolio and customer business, while also noting a decline in operating profit.
The company's operating profit for the first nine months of 2026 stood at EUR 1,396 million, a decrease of 19% from the same period in 2025, when it was EUR 1,715 million. The decrease was attributed to a decline in net interest income and income from investment activities, as well as an increase in OP bonuses and expenses.
Customer business continued to grow, with income from customer business increasing to EUR 2,582 million, up from EUR 2,559 million in the same period last year. The insurance service result improved by 4% to EUR 188 million, while net commissions and fees rose by 16% to EUR 700 million. However, net interest income decreased by 5% to EUR 1,695 million, with a 2% decrease in net interest income without OP bonuses earned by owner-customers to EUR 1,925 million.
The loan portfolio grew by 3% to EUR 103.2 billion, with the corporate loan portfolio increasing by 10% to EUR 31.1 billion. Deposits also grew by 3% to EUR 82.0 billion. Non-performing exposures decreased, accounting for 1.9% of total exposures, down from 2.1% in the same period last year.
OP Pohjola's capital adequacy remained strong, with a CET1 ratio of 21.4%, exceeding the minimum regulatory requirement by 7.2 percentage points. The company's Retail Banking segment saw an operating profit of EUR 625 million, a 16% decrease from EUR 740 million in the same period last year. Corporate Banking's operating profit fell by 25% to EUR 341 million, from EUR 454 million in the previous year. The Insurance segment, however, performed well, with an operating profit of EUR 489 million, a 14% increase from EUR 429 million.
The group's outlook for 2026 is cautiously optimistic, with the company expecting operating profit to remain at a good level but lower than in 2025. The strong performance in the third quarter was attributed to the continued growth in customer business and the effective management of credit risks.
OP Pohjola also reported a clear turnaround in the business environment, with the global economy showing resilience despite the impacts of the Middle East War. Finland's economy, in particular, saw accelerated growth, with a 2% increase in the third quarter of 2026. Exports continued to grow well, investments picked up, and private consumption began to recover. Corporate confidence grew, and the first positive signs appeared on the labour market after a long downturn. Consumers also showed more confidence in their finances, with an uptick in home-buying intentions.
Interest rate hikes impacted the business environment, with both short and long-term interest rates rising due to inflationary pressures. The 12-month Euribor reached 3.33% at the end of September, compared to 2.24% at the end of 2025. However, Finland's inflationary outlook remained more moderate than elsewhere in Europe, with price rises mainly driven by surging energy prices.
Despite the challenges, OP Pohjola's strong capital base and excellent liquidity provided a solid foundation for serving its customers. The company's owner-customer benefits were revamped, with new OP bonuses accruing to owner-customers increasing by 29% to EUR 314 million. These benefits were expanded and given more flexibility, allowing customers to decide how they are used. The popularity of long-term home loans increased, with a 30-year loan term being selected for 25% of new home loans.
The company also noted a growing interest in saving and investing among its customers. The number of mutual fund investors grew, with 194,000 new mutual fund investment agreements being made in the first nine months of 2026. OP Pohjola continued to offer OP First Investment, a EUR 100 investment in OP World Index fund, for babies born in Finland in 2027, with over 20,000 babies receiving the investment since 2025.
In conclusion, OP Pohjola's strong performance in the first nine months of 2026, despite the challenges, reflects the company's resilience and adaptability in a changing economic landscape.