Customer business developed favourably and full-year earnings before tax were EUR 1,017 million
- Earnings before tax amounted to EUR 1,017 million (1,031).
- Income from customer business showed favourable development. Net interest income increased by 7% to EUR 1,175 million and net commissions and fees by 1% to EUR 887 million. Net insurance income increased by 19% to EUR 566 million - comparable change was -2%.
Investment income fell by 46% to EUR 280 million and other operating income by 26% to EUR 61 million. Investment income was affected by a year-on-year decrease of EUR 227 million in capital gains.
- Expenses decreased by 5% to EUR 1,681 million. OP Financial Group transferred the management of the majority of the personnel's statutory earnings-related pension insurance and the related portfolio to Ilmarinen Mutual Pension Insurance Company at the end of 2018. The transfer reduced OP Financial Group's pension costs and improved earnings before tax by EUR 286 million while improving the Group's capital adequacy ratio by 0.4 percentage points.
- Impairment loss on receivables was EUR 46 million (48), or still low.
- The CET1 ratio was 20.5% (20.1).
- Banking earnings before tax increased by 28% to EUR 795 million. Net interest income increased by 4% and net commissions and fees decreased by 6%. The transfer of the pension liability improved the segment's earnings by EUR 172 million. The loan portfolio increased by 6% and deposits by 6%.
- Non-life Insurance earnings before tax decreased by 37% to EUR 133 million. Insurance premium revenue increased by 2% and expenses by 9%. Investment income fell by EUR 159 million. The reduction in the discount rate for insurance liability increased claims incurred by EUR 102 million a year ago.
- Wealth Management earnings before tax decreased by 14% to EUR 213 million. Net commissions and fees decreased by 11% and investment income by 11%. The transfer of the pension liability improved the segment earnings by EUR 35 million. Assets under management decreased by 8%.
- Other Operations earnings before tax were EUR -123 million (-45). The earnings were eroded by an increase in depreciation/amortisation and impairment losses as well as by a decrease in net investment income. The transfer of the pension liability improved the segment earnings by EUR 71 million. Non-recurring income of EUR 42 million was included in income a year ago.
- In 2018, OP invested EUR 384 million (454) in developing its operations and improving customer experience.
- OP bonuses given out rose by 4% to EUR 230 million.
- In January-December, the number of OP cooperative banks' owner-customers increased by 79,000 to over 1.9 million and that of OP Financial Group's joint banking and insurance customers by 21,000 to over 1.8 million.
- Earnings before tax for 2019 are expected to be lower than in 2018. For more detailed information on the outlook, see "Outlook for 2019".
OP Financial Group is Finland's largest financial services group whose mission is to create sustainable prosperity, security and wellbeing for its owner-customers and in its operating region by means of its strong capital base and efficiency. OP Financial Group consists of 156 OP cooperative banks, its central cooperative OP Cooperative, and the latter's subsidiaries and affiliates. The Group has a staff of 12,000 and 1.9 million owner-customers.