OP Pohjola’s Financial Statements Bulletin 1 January–31 December 2025: Another strong year for OP Pohjola – operating profit EUR 2,269 million

OP Pohjola
Financial Statements Bulletin
Stock Exchange Release 11 February 2026 9.00 am EET

OP Pohjola’s Financial Statements Bulletin 1 January–31 December 2025: Another strong year for OP Pohjola – operating profit EUR 2,269 million 

• Operating profit was EUR 2,269 million (2,486). Operating profit fell by 9% or EUR 217 million year on year. The fourth-quarter operating profit increased to EUR 554 million (538).
• Net interest income decreased by 12% to EUR 2,372 million (2,694). Insurance service result increased by 23% to EUR 236 million (192) and net commissions and fees decreased by 1% to EUR 812 million (818). Income from customer business, that is, net interest income, insurance service result and net commissions and fees, decreased by a total of 8% to EUR 3,419 million (3,703).
• Impairment loss on receivables reversed were EUR 53 million (-96). The ratio of impairment loss on receivables to loan and guarantee portfolio was -0.05% (0.09). Non-performing exposures decreased, accounting for 2.1% (2.6) of total exposures.
• Investment income increased by 16% to EUR 659 million (567).
• Total expenses grew by 7% to EUR 2,424 million (2,262). The cost/income ratio weakened to 52% (47).
• The loan portfolio grew by 2% to EUR 100.4 billion (98.9). Deposits increased by 4% to EUR 80.9 billion (77.7).
• The CET1 ratio was 21.2% (21.5), which exceeds the minimum regulatory requirement by 6.9 percentage points. Changes in the collateral management process decreased capital adequacy. Changes in the EU Capital Requirements Regulation (CRR3), in effect as of 1 Jan 2025, caused a slight reduction in capital adequacy.
• The Retail Banking segment’s operating profit decreased by 31% to EUR 912 million (1,328). Net interest income decreased by 17% to EUR 1,759 million (2,113). Impairment loss on receivables reversed were EUR 21 million (-95). Net commissions and fees totalled EUR 720 million (729). The cost/income ratio weakened to 65% (51). The loan portfolio grew by 1% to EUR 71.4 billion (70.7). Deposits increased by 5% to EUR 65.9 billion (62.9). Assets under management grew by 13% to EUR 105.5 billion (93.3).
• Corporate Banking segment’s operating profit grew by 10% to EUR 571 million (520). Net interest income grew by 8% to EUR 597 million (554). Impairment loss on receivables reversed were EUR 32million (0). Net commissions and fees totalled EUR 92 million (89). The cost/income ratio was 35% (35). The loan portfolio grew by 3 % to EUR 29.1 billion (28.3). Deposits increased by 3% to EUR 15.9 billion (15.5).
• Insurance segment’s operating profit grew by 2% to EUR 590 million (578). The insurance service result grew by 23% to EUR 236 million (192). Investment income fell to EUR 358 million (382). The combined ratio reported by non-life insurance improved to 87.7% (92.3).
• Group Functions’ operating profit increased to EUR 199 million (19). Income from investment activities, EUR 159 million (16), was increased by changes in the fair value of equities.
• OP Pohjola renewed its owner-customer benefits as of 1 January 2026, when the Act on changing the bonus practices in the financial sector entered into force. As a result, owner-customers benefit even more for using OP Pohjola’s banking, wealth management and insurance services: OP bonuses were increased, customers earn more of them from service use and owner-customers can decide how to use them. In 2025, the combined value to owner-customers of OP bonuses and daily banking services free of monthly charge totalled EUR 420 million.
• 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 2024. Unless otherwise specified, figures from 31 December 2024 are used as comparatives for balance-sheet and other cross-sectional items.
* Change in ratio, percentage point(s).
** As of 1 January 2025, OP Asset Management Ltd, OP Fund Management Company Ltd and OP Real Estate Asset Management Ltd, including subsidiaries, are reported as part of the Retail Banking segment. Comparative information of 2024 has been adjusted accordingly.
*** The presentation of assets under management was changed at the beginning of 2025. Comparatives have been adjusted to correspond to the current definition.

Comments by the President and Group CEO of OP Pohjola:

A new benefits package for owner-customers and our name change to OP Pohjola were among the key reforms of 2025

2025 was a year of transformations for OP Pohjola. In October, we announced a new benefits package for owner-customers and adopted the name, OP Pohjola. Our owner-customers get all their banking, insurance and wealth management services – and even better and clearer benefits – from a single service provider, OP Pohjola. They can now earn more OP bonuses from a wider range of banking and insurance services. Furthermore, owner-customers can use OP bonuses freely and flexibly for banking services, insurance premiums or mutual fund investments. In 2025, owner-customers earned a total of EUR 327 million in OP bonuses.

When OP Pohjola succeeds, our owner-customers also benefit. In late 2025, we announced that our good financial performance would enable a more than tenfold increase in OP bonuses earned from home, property and motor vehicle insurance in 2026, providing a total additional benefit of more than EUR 30 million for our owner-customers. The additional benefit applies both to current and new owner-customers. More services indeed mean bigger bonuses – now more than ever.

The business environment was marked by uncertainty in 2025

The economy developed in two phases in 2025. Early 2025 was overshadowed by exceptional uncertainty due to geopolitical and trade policy, but global economic growth ultimately came close to the long-term average, with confidence rising at the end of the year. The euro area’s economy performed better than expected. GDP grew by around 1.4%, inflation settled close to the ECB’s target of 2% and the interest rate outlook remained stable.

On the financial market, stock prices fell sharply in April due to the uncertainty and trade war in the first half of the year, but a rapid recovery saw stock prices achieving new records at the year’s end. For example, the MSCI World Index was 19% higher in US dollars than at the start of 2025, but the weakening of the dollar reduced euro-denominated returns to 5%. In Europe, stock markets rose by 21% and the Nasdaq Helsinki rose by 30%.

Finland’s economy recovered only moderately in 2025, growing slightly towards the end of the year. Exports grew by around 3%, prices rose slowly and inflation is expected to remain low in 2026, due to sluggish growth and high unemployment. Private consumption was at a standstill and the savings rate increased. Investments are expected to grow in 2026, as construction recovers and public investments continue to increase due to higher defence spending.

OP Pohjola had another strong year

OP Pohjola performed extremely well in the uncertain business environment. Our operating profit for 2025 was EUR 2,269 million, the second-best figure in our history. This was 9% less than our record performance in 2024. The excellent performance was due to a better insurance service result and higher income from investment activities in particular. In addition, an exceptional reversal of impairment loss on receivables was recorded of EUR 53 million, chiefly due to customers’ improved finances, whereas a EUR 96 million impairment loss on receivables was recognised a year earlier.

OP Pohjola’s income from customer business (net interest income, insurance service result and net commissions and fees) decreased by 8%, year on year, to EUR 3,419 million. Net interest income fell by 12% due to lower market rates. The insurance service result grew by 23% and net commissions and fees decreased by 1%. Income from investment activities increased by 16% as a result of the positive trend in returns from equity investments.

OP Pohjola invests extensively in artificial intelligence and its development. Expenses increased by 7% in 2025, mainly due to ICT and development costs. In 2025, our ICT development focused on broad-based leveraging of AI, improvement of our data capabilities and updating of our banking and insurance business core systems. OP Pohjola’s cost/income ratio remained competitive at 52.2%.

All three of our segments performed well in 2025. Corporate Banking was particularly successful: its operating profit increased by 10% to EUR 571 million. A reversal of impairment loss on receivables in Corporate Banking totalled EUR 32 million and the segment’s cost/income ratio was extremely competitive at 35%. The Insurance segment’s earnings grew by 2% to EUR 590 million. In particular, the insurance service result developed favourably, growing by 23% year on year. Non-life insurance’s combined ratio improved again to 87.7%. Furthermore, Retail Banking’s operating profit of EUR 912 million was a good performance, despite the decrease in net interest income due to lower market rates. The segment’s operating profit was particularly affected by falling market rates, which led to a reduction in net interest income.

At the end of December, OP Pohjola’s CET1 ratio was 21.2%, which exceeds the minimum regulatory requirement by 6.9 percentage points. OP Pohjola is one of the most financially solid large banks in Europe. Strong capital adequacy and excellent liquidity provide security in an uncertain business environment.

Loan portfolio and deposits grew – customers’ loan repayment capacity remained good

OP Pohjola’s deposit portfolio grew by more than 4% year on year, to almost EUR 81 billion. Household deposits grew by 5% in 2025, to over EUR 50 billion. OP Pohjola’s market share of deposits in Finland has been growing markedly in recent years, exceeding 40% at the end of the year.

Our loan portfolio increased by 1.5% to EUR 100.4 billion. The loan portfolio’s quality remained exceptionally high: non-performing exposures continued to decrease and credit risks were very low. Customers’ loan repayment capacity remained good and falling interest rates lowered debt-servicing costs. The home loan portfolio remained at the previous year’s level, but home sales picked up during the year. New home loans drawn down in January–December were 9.4% higher than a year earlier, totalling almost EUR 6 billion. We are the clear market leader in home loans in Finland.

The corporate loan portfolio grew by almost 3%. OP Pohjola has a strong desire and ability to finance growth among Finnish companies. During 2025, we adjusted our credit policy to improve access to financing for businesses. As Finland’s largest provider of corporate loans, we support the growth and success of Finland and its private sector.

Wealth management saw strong growth in 2025

Systematic investing continued to become more popular among our customers. A record number of 195,000 new agreements were made for systematic mutual fund investment in January–December, an increase of 18% year on year. The number of OP mutual fund unitholders rose to a record level – almost 1.6 million – and assets under management grew by 13% to more than EUR 105 billion.

At OP Pohjola, we help people in Finland to thrive financially. We also encourage systematic, long-term saving and investment. In the first half of 2025, we launched the OP First Investment fund – EUR 100 in the OP-World Index fund for every baby born in Finland that year. In May–December, almost 10,500 babies received their OP First Investment. This adds up to more than a million euros for babies born in Finland and their families. Furthermore, at the end of 2025 we announced the continuation of OP First Investment into 2026, when we will again provide every newborn in Finland with a EUR 100 fund investment.

Wealth management is one of our key growth areas, which we will also strengthen through strategic partnerships. At the end of 2025, we announced a partnership with three leading international financial management firms, J.P. Morgan, Goldman Sachs and BlackRock. This cooperation will enable us to provide customers with an even broader and higher-quality range of wealth management services.

We particularly invested in artificial intelligence and banking security in 2025

Leveraging of technology, data and AI is a priority in OP Pohjola’s strategy. During the year, we invested systematically in the use of AI as part of our banking and insurance services and in enhancing our customer experience. AI-assisted services enabled smoother, faster and more personalised service use. In January–December, more than 7.5 million customer encounters occurred through our AI-assisted service, OP Aina.

Competence development forms a key part of our AI strategy. In 2025, more than 80% of our personnel participated in AI training, and almost 13,000 of our employees now use an AI assistant. This helps our staff to use new technologies responsibly, in support of customers, and improves the employee experience.

Alongside AI, we improved banking security throughout the year. We invested in cybersecurity, preventing a significant number of cyberattacks and fraud attempts once again. In addition, we launched a new cooperation model to prevent bank fraud. Close cooperation with authorities and telecom operators improved our ability to identify and prevent fraud attempts, and support our customers amid rapid change.

OP Pohjola aims to strengthen its position as a financial-sector pioneer in the use of AI. Accordingly, in February 2026 we announced cooperation with Qutwo to establish a new quantum and artificial intelligence research unit. This represents a strategically significant step towards building future capabilities through new opportunities in quantum computing and advanced artificial intelligence, while creating entirely new ways of developing our services.

There were 54 OP cooperative banks at the end of 2025

Structural development of OP cooperative banks accelerated in 2025, when the number of member banks in OP Pohjola fell from 93 to 54. Bigger and stronger OP cooperative banks will strengthen our ability to serve our owner-customers and corporate customers on a broader, more versatile basis around Finland. Mergers and enhancement of our joint ways of working will enable us to deepen our expertise further, while increasing our financing resources. On this basis, we can meet local companies’ investment and growth needs even more effectively, while retaining the personal customer relationships and local knowledge that our customers value.

My warm thanks to all our customers for the trust you showed in us in 2025. I would also like to thank our employees and governing bodies for their excellent work during the year. Our strong financial position provides an excellent basis to begin 2026 with confidence and continue our long-term work for the benefit of our customers and the whole of Finland.

Timo Ritakallio
President and Group CEO

January–December

OP Pohjola’s operating profit was EUR 2,269 million (2,486), down by 8.7% on the record level of the comparison period. Income from customer business (net interest income, net commissions and fees and insurance service result) decreased by a total of 7.7% to EUR 3,419 million (3,703). The cost/income ratio weakened to 52.2% (46.7). New OP bonuses accrued to owner-customers increased by 4.4% to EUR 327 million.

As a result of lower market interest rates, net interest income decreased by 12.0% to EUR 2,372 million. Net interest income reported by the Retail Banking segment decreased by 16.8% to EUR 1,759 million and that by the Corporate Banking segment increased by 7.7% to EUR 597 million. OP Pohjola’s loan portfolio grew by 1.5% to EUR 100.4 billion while deposits grew by 4.1% to EUR 80.9 billion. Household deposits increased by 4.9% to EUR 50.0 billion. New loans drawn down by customers during the reporting period totalled EUR 27.2 billion (22.2).

Impairment loss on receivables reversed came to EUR 53 million, particularly due to a better financial situation among customers and due to loan repayments. A year ago, impairment loss on receivables totalled EUR 96 million. Final credit losses totalled EUR 94 million (200). At the end of the reporting period, loss allowance was EUR 677 million (824), of which management overlay accounted for EUR 58 million (77). Non-performing exposures decreased, accounting for 2.1% (2.6) of total exposures. Impairment loss on loans and receivables accounted for -0.05% (0.09) of the loan and guarantee portfolio.

Net commissions and fees totalled EUR 812 million (818). Payment transfer net commissions and fees increased by EUR 4 million to EUR 239 million. Net commissions and fees of real estate agency services fell by EUR 7 million to EUR 50 million.

Insurance service result grew by 23.0% to EUR 236 million. A year ago, claims related to weather phenomena increased claims incurred. Insurance service result includes EUR 554 million (529) in operating expenses. Non-life insurance net insurance revenue, including the reinsurer’s share, grew by 2.3% to EUR 1,800 million. Net claims incurred after the reinsurer’s share decreased by 7.9% to EUR 1,028 million. The combined ratio reported by non-life insurance improved to 87.7% (92.3).

Investment income (net investment income, net insurance finance expenses and income from financial assets held for trading) increased by a total of 16.2% to EUR 659 million. 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 3.9% (7.6).

Net income from financial assets recognised at fair value through profit or loss, or notes and bonds, shares and derivatives, totalled EUR 1,540 million (1,975). Net income from investment contract liabilities totalled EUR -748 million (-851). Net insurance finance expenses totalled EUR 297 million (727).

In banking, net income from financial assets held for trading came to EUR 160 million (146) as a result of changes in the value of derivatives.

Other operating income totalled EUR 8 million (44). A EUR 23 million valuation adjustment in patient insurance policies with full risk for own account decreased other operating income.

Total expenses grew by 7.2% to EUR 2,424 million. Personnel costs rose by 3.9% to EUR 1,122 million. The increase was affected by headcount growth and pay increases. OP Pohjola’s personnel increased by almost 400. The number of employees increased in areas such as sales, customer service, service development, risk management and compliance. Cancelling the transfer of the earnings-related supplementary pension liability decreased personnel costs by EUR 20 million. Depreciation/amortisation and impairment loss on PPE and intangible assets decreased by 4.3% to EUR 152 million. Other operating expenses increased by 11.0% to EUR 1,149 million. ICT costs totalled EUR 591 million (514). Development costs were EUR 423 million (349) and capitalised development expenditure EUR 53 million (58). Charges of financial authorities were EUR 17 million (16). The EU’s Single Resolution Board (SRB) did not collect stability contributions from banks for 2025.

At EUR 310 million (307), OP bonuses for owner-customers are included in earnings and are divided under the following items based on their accrual: EUR 149 million (160) under interest income, EUR 92 million (82) under interest expenses, EUR 53 million (48) under commission income from mutual funds, and EUR 16 million (17) under the insurance service result.

Income tax amounted to EUR 462 million (499). The effective tax rate for the reporting period was 20.4% (20.1). Comprehensive income after tax totalled EUR 1,940 million (2,067). A change in the fair value reserve increased comprehensive income for the reporting period.

OP Pohjola’s equity amounted to EUR 19.7 billion (18.1). Equity included EUR 3.1 billion (3.3) in Profit Shares, terminated Profit Shares accounting for EUR 0.3 billion (0.4).

OP Pohjola’s funding position and liquidity are strong. OP Pohjola’s LCR was 186% (193) and NSFR was 131% (129).

Outlook

Exceptional risks are still present in the business environment. Despite geopolitical tensions, the basic forecast for the global economy for the next few years is stable, and the Finnish economy is expected to recover gradually. However, escalation of geopolitical crises or an increase in trade barriers may weaken confidence in the economy in Finland and affect capital markets and the business 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, changes in the investment environment 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 11 February 2026 at 11am at Gebhardinaukio 1, Vallila, Helsinki. Media enquiries: OP Pohjola Communications, tel. +358 10 252 8719, viestinta@op.fi

OP Corporate Bank plc and OP Mortgage Bank plc will publish their own financial statements bulletins.

Financial reporting

Schedule for reports for 2025:

Schedule for financial reports in 2026:

Helsinki, 11 February 2026

OP Osuuskunta
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