Economic Results: OP Bank grows its loan portfolio in the Baltics and achieves record profit

The profit growth is attributed to the increase in contract volumes both in Estonia and the Baltics in general, a strong portfolio, and customers in good standing. As of the end of December, the bank's loan and leasing portfolio in the Baltics grew to 2.92 billion euros, up from 2.89 billion euros a year earlier. The deposit portfolio in Estonia, Latvia, and Lithuania grew by 25%, reaching 1.71 billion euros (1.37 billion euros the previous year).

"Despite the overall state of the Estonian economy, companies were active in the loan market. OP Bank increased both contract and deposit volumes in Estonia in 2024. The portfolio quality is extremely good, indicating the strong condition of Estonian companies. Falling interest rates should further encourage investment activity, including in foreign markets important to Estonia. Lower interest rates also increase disposable incomes, which, together with other factors, support the main engines of the Estonian economy – consumption and the real estate sector – and bring the Estonian economy back to a growth trend," commented Hannes Kaadu, Head of OP Bank’s Estonian branch.

OP Bank earned 59 million euros in interest income in the Baltics last year, 8 million euros less than the previous year. However, the bank's net service fees in the Baltics amounted to 11 million euros last year, 10% more than in 2023. The bank's operating expenses in the Baltics were 35 million euros last year, remaining at the same level as the previous year.

"The bank’s branches in the Baltic countries demonstrate the ability to support businesses through all stages of the economic cycle, adapting to the diverse economic environments across these markets. Over the past year, we have continued to finance our clients' long-term investments and short-term capital needs, while also providing advanced cash management solutions that enhance cash flow efficiency and improve corporate liquidity. We are committed to creating long-term value for our clients, which is why all our teams across the Baltics have undergone comprehensive sustainability training—to better understand our clients’ needs and the sustainability-related challenges they face," said Matias Huhtala, Head of Baltic Banking.

Together with the OP Group, a goal was set to reduce the carbon emissions of their operations. The objective is to achieve zero emissions by the end of this year, and 99% of this target was already met in 2024. Additionally, OP Bank Estonia, along with the OP Group, has set a long-term goal to achieve carbon neutrality in all managed investment funds and corporate loan portfolios by 2050.

Group's Pre-tax Profit Reached 2.49 Billion Euros 

Successful results were shown across the entire group. Finland's largest financial services group, OP Financial Group, which includes OP Corporate Bank branches in Estonia, Latvia, and Lithuania, earned a pre-tax profit of 2.49 billion euros last year. This is 21% more than in 2023, when the pre-tax profit was 2.05 billion euros. The group's revenue was 4.84 billion euros, 7% more than in 2023, when it was 4.52 billion euros. 

In addition to excellent financial results, OP Financial Group also shared its success with owner-customers. In 2024, OP bonuses paid to owner-customers were increased by 40% compared to the 2022 level, bringing the total bonus amount to 314 million euros. Additionally, owner-customers were offered daily banking services without monthly fees, and this approach will continue in 2025. Overall, these benefits amounted to 404 million euros. 
OP Financial Group's strong profitability also enabled significant tax contributions. In 2024, the group paid 449 million euros in income tax, making it one of the largest taxpayers in Finland.