OP Pohjola 's Half-year Financial Report 1 January–30 June 2026: Operating profit for January–June EUR 831 million – excellent second quarter

OP Pohjola
Half-year Financial Report 1 January–30 June 2026
Stock Exchange Release 23 July 2026 at 9.00 EEST

OP Pohjola 's Half-year Financial Report 1 January–30 June 2026: Operating profit for January–June EUR 831 million – excellent second quarter

• Operating profit was EUR 831 million (990). Operating profit fell by 16%, or EUR 159 million year on year. The decrease was due to a decline in net interest income and income from investment activities, and higher expenses.
• Second-quarter operating profit was excellent at EUR 670 million (566). This was OP Pohjola 's third largest operating profit ever for a quarter.
• Income from customer business, that is, net interest income, insurance service result and net commissions and fees, increased to EUR 1,680 million (1,665). Insurance service result increased by 54% to EUR 104 million (68) and net commissions and fees increased by 15% to EUR 465 million (404). Net interest income decreased by 7% to EUR 1,111 million (1,194).
• Impairment loss on receivables totalled EUR 35 million. A year ago, impairment loss on receivables reversed came to EUR 19 million. The ratio of impairment loss on receivables to loan and guarantee portfolio was 0.07% (-0.04). Non-performing exposures decreased, accounting for 1.9% (2.1) of total exposures.
• Investment income fell to EUR 150 million (206).
• Total expenses grew by 9% to EUR 1,273 million (1,169). The cost/income ratio weakened to 59.5% (54.6).
• The loan portfolio grew year on year by 1% to EUR 101.1 billion (99.7). Deposits grew by 1% to EUR 82.1 billion (81.0).
• The CET1 ratio was 21.3% (21.2), which exceeds the minimum regulatory requirement by 7.0 percentage points.
• The Retail Banking segment 's operating profit decreased by 29% to EUR 348 million (489). Net interest income decreased by 13% to EUR 791 million (909). Impairment loss on receivables totalled EUR 30 million (7). Net commissions and fees increased by 14% to EUR 416 million (365). The cost/income ratio weakened to 69.1% (61.9). The loan portfolio grew to EUR 71.6 billion (71.3), while deposits increased by 4% year on year, to EUR 67.8 billion (65.5). Assets under management grew by 18% year on year to EUR 114.9 billion (97.7).
• The Corporate Banking segment 's operating profit decreased by 25% to EUR 233 million (309). Net interest income decreased by 9% to EUR 274 million (300). Impairment loss on receivables came to EUR 6 million. A year ago, impairment loss on receivables reversed came to EUR 26 million. Net commissions and fees increased to EUR 54 million (42). The cost/income ratio weakened to 39.7% (33.5). The loan portfolio grew by 4 % year on year, to EUR 29.8 billion (28.5). Deposits decreased by 8% year on year, to EUR 15.0 billion (16.2).
• Insurance segment 's operating profit grew by 106% to EUR 381 million (185). Insurance service result grew to EUR 104 million (68). Investment income increased to EUR 269 million (115). The combined ratio reported by non-life insurance improved to 91.8% (92.4).
• The Group Functions segment 's operating loss was EUR -145 million (34). Income from investment activities, EUR -184 million (9), was decreased by changes in the fair value of equities.
• OP Pohjola revamped its owner-customer benefits, effective as of 1 January 2026. OP bonuses were increased, they are earned more widely from banking, wealth management and insurance services, and owner-customers can decide how to use their bonuses. New OP bonuses accrued to owner-customers increased by 27% to EUR 206 million (162).
• Outlook: Operating profit for 2026 is expected to be at a good level but lower than that for 2025. For additional information, see 'Outlook '.

OP Pohjola 's key figures and ratios

Comparatives for the income statement items are based on the corresponding figures in 2025. Unless otherwise specified, figures from the end of 2025 are used as comparatives for balance-sheet and other cross-sectional items.

* Change in ratio, percentage point(s).

** Before withholding tax

Comments by the President and Group CEO of OP Pohjola

An excellent second quarter boosted OP Pohjola 's first-half earnings

OP Pohjola 's operating profit for January–June was EUR 831 million. The second quarter saw very strong profit performance: operating profit improved markedly compared to the first quarter, with operating profit for April–June being EUR 670 million. This excellent result was driven especially by the performance of customer business, increases in income from investment activities, and a sustained low level of credit risks and impairment loss on receivables.

Customer business performed well in the banking and insurance business. Income from customer business was EUR 1,680 million. Insurance service result increased by 54% year on year and net commissions and fees increased by 15%. Net interest income fell by 7% year on year, although its rate of decrease slowed down in April–June as a result of trends in market rates. Income from investment activities grew substantially compared to the first quarter of the year, but remained 27% lower than in the first half of the previous year.

Expenses increased by 9% from the previous year, totalling EUR 1,273 million, mainly due to investments in ICT development and increased personnel costs. The cost/income ratio excluding OP bonuses weakened and stood at 54.3%.

The quality of the loan portfolio remained good, even though impairment loss on receivables totalled EUR 35 million in January–June, whereas a year ago their reversals totalled EUR 19 million.

All three business segments performed well in the first half of the year. The strongest performer was the Insurance segment with its earnings increasing to EUR 381 million thanks to a solid insurance service result and favourable development of income from investment activities. Retail Banking 's operating profit was EUR 348 million, and Corporate Banking 's operating profit was EUR 233 million.

OP Pohjola 's capital adequacy is very strong. At the end of June, OP Pohjola 's CET1 ratio was 21.3%, which exceeds the minimum regulatory requirement by 7.0 percentage points, that is, by EUR 5.7 billion. OP Pohjola is one of the most financially solid large banks in Europe. Strong capital base and excellent liquidity form a solid foundation for serving our customers.

Positive economic development continued in the first half of the year despite uncertainties

According to estimates, the first half of 2026 saw the global economy continuing on a stable growth trajectory at an average rate. The war in the Middle East weighed on the business environment. Confidence in the economy began to increase in the spring, and Finland 's economic growth gained momentum in the first half of the year. Exports continued to grow, and both consumption and investments picked up. We estimate the Finnish economy to grow this year at a rate of 1%, and the world economy by 2.8%. The geopolitical situation remains uncertain and the economic outlook depends largely on how the situation in the Middle East and the energy market develops.

Inflation led to higher short-term and long-term interest rates on the fixed income market in the early part of the year. The 12-month Euribor, the most commonly used reference rate for home loans, was 2.73% at the end of June, or 0.49 percentage points higher than at the turn of the year.

The equity market experienced considerable volatility, but strengthened after the uncertainty in early spring. The MSCI global equity index rose by the end of June in US dollars by 8.9% and in euros by 11.9% compared to December 2025. In the Finnish equity market, the OMX Helsinki index was 10.6% higher at the end of H1 than at the turn of the year.

The customers ' financial standing remained good

The loan repayment capacity of OP Pohjola 's customers has remained good. The number of requests for a change in repayment plan and repayment holidays continued to decrease, and non-performing exposures amounted to 1.9% of all exposures. Our customers ' extremely good loan repayment capacity serves as an indicator of their financial stability.

Deposits increased by 1% year on year. At the end of June, deposits totalled EUR 82.1 billion. Household deposits increased by 3% year on year, to EUR 51.6 billion. The loan portfolio grew by 1% year on year, amounting to EUR 101.1 billion. OP Pohjola is a clear market leader in both deposits and credit in Finland.

The reformed loyalty programme supports wealth building of owner-customers

Launched at the beginning of this year, the reformed loyalty programme for owner-customers has been extremely well received by its target audience. Although the majority of our owner-customers still use OP bonuses for banking and insurance services, an increasing number of owner-customers also use their OP bonuses for saving and investing. By the end of June, 35,000 owner-customers had chosen to use their OP bonuses for fund investing.

Our customers ' actions clearly reflect a growing interest in saving and investing. In the first half of the year, a total of 126,000 new agreements on investing in mutual funds were made, the customers made a total of EUR 2.5 billion of net investments and the assets under management reached a record level of EUR 115 billion. Wealth Management performed well as a whole, which reflects the customers ' growing interest in long-term saving, investment and wealth building.

Demand for corporate financing increased

Finland 's economy needs growth, and growth is created in companies. We saw encouraging signs of growing demand for corporate finance in the first half of the year. Companies were increasingly active in seeking financing for investments, growth and internationalisation. The amount of corporate loans drawn down at OP Pohjola grew by 44% year on year.

In June, Ilmarinen and OP Pohjola launched a joint growth financing programme of EUR 300 million to spur growth and investments in Finnish growth companies. We want to be involved in building solutions that encourage Finnish companies to invest, grow and transform themselves, even in an uncertain business environment. The programme has aroused great interest among companies.

OP Pohjola is Finland 's biggest provider of finance and insurance for corporate customers. Thanks to our strong market position, broad regional network and diverse financing solutions, we can continue to support companies ' growth, investments and transformations throughout Finland.

OP Pohjola chosen as the payment service provider for the Finnish Government – we are building groundbreaking solutions for the future of payments

The Finnish Government has chosen OP Pohjola as the state 's main payment service provider for the next five years, starting from the beginning of 2027. After the five years have passed, the Government can extend the agreement by two additional years. Around 240 billion euros in payment transactions flow through the State of Finland 's accounts each year. For OP Pohjola, this is an important task that comes with great responsibility: the state 's payment transactions are a key element of Finland 's critical economic infrastructure, which must function reliably and smoothly at all times. Winning the competitive tendering for Government payment services reflects OP Pohjola 's ability to provide high-quality and reliable payment services.

Payments are rapidly becoming digital and customers expect payments to be easy, secure and reliable. In June, we launched an improved Siirto service that brings together a "pay a friend " feature, paying in online stores and receiving bills in a single service. Almost a million OP Pohjola customers already use Siirto, which is now available on OP-mobile. The revamped service makes our customers ' daily life smoother by integrating commonly used payment services into regular banking services.

OP Pohjola wants to be involved in building future payment solutions in Finland and Europe. We will participate in the European Central Bank 's digital euro pilot project, and in May we joined the European Qivalis consortium, which is developing a euro-backed digital stablecoin for companies. Operational reliability and security of payments, and the development European payment solutions are increasingly important for both people in Finland and other Europeans. By participating in the digital euro pilot project and the Qivalis consortium, we can help ensure that the perspectives of Finnish consumers and companies are reflected in the development of new European payment solutions.

Artificial intelligence strengthens our competitiveness

Artificial intelligence is one of the key means for building OP Pohjola 's long-term competitiveness. We want to leverage AI to enhance the customer and employee experience while simultaneously boosting productivity and quality of operations.

In the first half of the year, our AI journey proceeded as planned. We already use AI extensively in areas like customer service, digital services, the processing of insurance compensations, anti-financial crime and supporting our personnel in their daily work. AI enables us to provide our customers with smoother, more personalised services and improve the quality and productivity of work.

This is not a single technology project but a major change in practices. According to the Nordic AI Index 2026 by Impaktly, OP Pohjola is among the leading Nordic companies in the use of artificial intelligence. This gives us a strong foundation for continuing our determined work on developing technology, data and competence.

My warm thanks to all our customers for the trust you showed in us at the start of this year. We aim to continue being worthy of the confidence you place in us. I would also like to thank our employees and governing bodies for their excellent work for our customers and all of Finland.

Timo Ritakallio
President and Group CEO

January–June

Operating profit was EUR 831 million (990), down by 16.0% year on year. Income from customer business, that is, net interest income, net commissions and fees and insurance service result increased to a total of EUR 1,680 million (1,665). The cost/income ratio weakened to 59.5% (54.6).

New OP bonuses accrued to owner-customers increased by 27.3% to EUR 206 million. At the beginning of 2026, OP bonuses were increased and the range of services that provide them was widened. Cost/income ratio excluding OP bonuses was 54.3% (51.0).

Net interest income decreased by 6.9% to EUR 1,111 million. Net interest income reported by the Retail Banking segment decreased by 13.1% to EUR 791 million and that by the Corporate Banking segment decreased by 8.6% to EUR 274 million. Loan portfolio grew by 1.4% to EUR 101.1 billion while deposits grew by 1.4% to EUR 82.1 billion, year on year. Household deposits increased by 2.8% year on year, to EUR 51.6 billion. New loans drawn down by customers during the reporting period totalled EUR 14.0 billion (13.1).

Impairment loss on receivables totalled EUR 35 million. A year ago, impairment loss on receivables reversed came to EUR 19 million. Final credit losses totalled EUR 38 million (36). At the end of the reporting period, loss allowance was EUR 674 million (677), of which management overlay accounted for EUR 48 million (58). Non-performing exposures decreased, accounting for 1.9% (2.1) of total exposures. Impairment loss on loans and receivables accounted for 0.07% (-0.04) of the loan and guarantee portfolio.

Net commissions and fees grew by 15.1% to EUR 465 million. During the comparison period, owner-customers got daily banking services without monthly charges. Net commissions and fees for payment services increased by EUR 46 million to EUR 164 million and those for mutual funds by EUR 19 million to EUR 109 million.

The insurance service result grew to EUR 104 million (68). Insurance service result includes EUR 292 million (269) in operating expenses. Non-life insurance net insurance revenue, including the reinsurer 's share, grew to EUR 895 million (870). Net claims incurred after reinsurers ' share decreased by 1.4% to EUR 539 million. The combined ratio reported by non-life insurance improved to 91.8% (92.4).

Investment income (net investment income, net insurance finance expenses and income from financial assets held for trading) decreased to EUR 150 million (206). Insurance 's net investment income together with net finance expenses describe investment profitability in the insurance business. The combined return on investments at fair value of OP Pohjola 's insurance companies was 4.5% (1.1). Income from investment activities decreased due to changes in the fair value of equity investments by Group Functions.

Net income from financial assets recognised at fair value through profit or loss, or notes and bonds, shares and derivatives, totalled EUR 1,667 million (100). Net income from investment contract liabilities totalled EUR -986 million (-51). Net insurance finance expenses totalled EUR 563 million. A year ago, net insurance finance income totalled EUR 35 million.

In banking, net income from financial assets held for trading decreased to EUR 38 million (115) as a result of changes in the value of derivatives.

Other operating income totalled EUR 18 million (-1). A year ago, a EUR 23 million valuation adjustment in patient insurance policies with full risk for own account decreased other operating income.

Total expenses grew by 9.0% to EUR 1,273 million. Personnel costs rose by 10.1% to EUR 606 million. The increase was affected by headcount growth and pay increases as well as the cancellation of the transfer of the earnings-related supplementary pension liability a year ago. Personnel increased by almost 170 year on year, especially in areas such as sales, customer service, service development, risk management and compliance. In addition, the cancellation of the transfer of the earnings-related supplementary pension liability decreased personnel costs by EUR 20 million a year ago.

Depreciation/amortisation and impairment loss on PPE and intangible assets grew by 11.5% to EUR 69 million. Impairment loss totalled EUR 19 million (3). Other operating expenses increased by 7.6% to EUR 599 million. ICT costs totalled EUR 320 million (284). Development costs were EUR 231 million (204) and capitalised development expenditure EUR 20 million (28). Charges of financial authorities were EUR 1 million (0). The EU 's Single Resolution Board (SRB) does not collect stability contributions from banks for 2026.

At EUR 206 million (154), OP bonuses for owner-customers are included in earnings and are divided under the following items based on their accrual: EUR 98 million (75) under interest income, EUR 55 million (45) under interest expenses, EUR 34 million (26) under commission income from mutual funds, and EUR 20 million (8) under the insurance service result.

Income tax amounted to EUR 213 million (199). The effective tax rate for the reporting period was 25.6% (20.1). The deferred tax rate increased because deferred tax assets were not recognised for part of the decrease in the fair value of equities. It is not probable that the decrease in the fair value of all equities is used for tax purposes. Comprehensive income after tax totalled EUR 654 million (855).

Equity amounted to EUR 20.2 billion (19.7). Equity included EUR 3.0 billion (3.1) in Profit Shares, terminated Profit Shares accounting for EUR 0.2 billion (0.3).

OP Pohjola 's funding position and liquidity are strong. LCR was 180% (186) and NSFR was 130% (131).

Outlook

In 2026, the Finnish economy is estimated to grow at nearly the pace seen in the first quarter. Continued high geopolitical uncertainty, along with a potential rise in energy prices and interest rates, may weaken economic growth. The escalation of geopolitical crises or a rise in trade barriers may affect capital markets and the economic environment of OP Pohjola and its customers.

OP Pohjola 's operating profit for 2026 is expected to be at a good level but lower than that for 2025.

The main uncertainties affecting OP Pohjola 's earnings performance are associated with developments in the business environment, the capital market and developments in impairment loss on receivables. Forward-looking statements expressing the management 's expectations, beliefs, estimates, forecasts, projections and assumptions are based on the current view on developments in the economy, and actual results may differ materially from those expressed in the forward-looking statements.

Press conference

OP Pohjola 's financial performance will be presented to the media by President and Group Chief Executive Officer Timo Ritakallio in a press conference on 23 July 2026 at 11am at Gebhardinaukio 1, Vallila, Helsinki.

Media enquiries: OP Corporate Communications, tel. +358 10 252 8719, viestinta@op.fi

OP Corporate Bank plc and OP Mortgage Bank plc will publish their own Half-year Financial Reports.

Financial reporting

Schedule for financial reports in 2026:

Helsinki, 23 July 2026

OP Cooperative
Board of Directors

For additional information, please contact:

Timo Ritakallio, President and Group CEO, tel. +358 10 252 4500
Mikko Timonen, Chief Financial Officer, tel. +358 10 252 1325
Piia Kumpulainen, Chief Communications Officer, tel. +358 10 252 7317

Distribution:
Nasdaq Helsinki Ltd
Euronext Dublin (Irish Stock Exchange)
London Stock Exchange
Major media
op.fi

OP Pohjola is Finland’s largest provider of financial services, with more than two million owner-customers and approximately 15,000 employees. We provide a comprehensive range of banking and insurance services for personal and corporate customers. OP Pohjola consists of OP cooperative banks, its central cooperative OP Cooperative, and the latter 's subsidiaries and affiliates. Our mission is to promote the sustainable prosperity, security and wellbeing of our owner-customers and operating region. Together with our owner-customers, we have been building Finnish society and a sustainable future for over 120 years now. www.op.fi

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