OP Pohjola’s Interim Report 1 January–31 March 2026: Operating profit EUR 160 million – income from customer business unchanged year on year, investment income fell

OP Pohjola
Interim Report for 1 January–31 March 2026
Stock Exchange Release 6 May 2026 at 9.00 EEST

OP Pohjola’s Interim Report 1 January–31 March 2026: Operating profit EUR 160 million – income from customer business unchanged year on year, investment income fell

• Operating profit was EUR 160 million (423). Operating profit fell by 62%, or EUR 263 million year on year. The decrease in operating profit was due in particular to the decline in income from investment activities.
• Income from customer business, that is, net interest income, insurance service result and net commissions and fees, totalled EUR 818 million (821). Net interest income decreased by 10% to EUR 549 million (613). Insurance service result increased to EUR 34 million (2) and net commissions and fees increased by 14% to EUR 236 million (206).
• Impairment loss on receivables totalled EUR 9 million. 
A year ago, impairment loss on receivables reversed came to EUR 24 million. The ratio of impairment loss on receivables to loan and guarantee portfolio was 0.04% (-0.10). Non-performing exposures decreased, accounting for 1.9% (2.5) of total exposures.
• Investment income fell to EUR -187 million (37).
• Total expenses grew by 5% to EUR 622 million (590). The cost/income ratio weakened to 78.6% (59.7).
• The loan portfolio grew year on year by 1% to EUR 100.0 billion (99.1). Deposits grew by 5% to EUR 81.3 billion (77.5).
• The CET1 ratio was 21.5% (21.2), which exceeds the minimum regulatory requirement by 7.3 percentage points.
• The Retail Banking segment’s operating profit decreased by 34% to EUR 193 million (291). Net interest income decreased by 16% to EUR 389 million (464). Impairment loss on receivables totalled EUR 6 million. A year ago, impairment loss on receivables reversed came to EUR 26 million. Net commissions and fees increased by 11% to EUR 211 million (190). The cost/income ratio weakened to 67.4% (60.2). The loan portfolio grew to EUR 71.3 billion (71.0), while deposits increased by 4% year on year, to EUR 66.6 billion (64.0). Assets under management grew by 12% year on year to EUR 106.2 billion (94.4).
• The Corporate Banking segment’s operating profit decreased by 15% to EUR 123 million (145). Net interest income decreased by 7% to EUR 136 million (147). Impairment loss on receivables came to EUR 3 million (1). Net commissions and fees increased to EUR 27 million (21). The cost/income ratio was 37.1% (32.5). The loan portfolio grew by 2 % year on year, to EUR 28.8 billion (28.2). Deposits grew by 7% year on year, to EUR 15.3 billion (14.2).
• The Insurance segment’s operating loss was EUR -10 million (-14). Insurance service result grew to EUR 34 million (2). Investment income fell to EUR -50 million (-17). The combined ratio reported by non-life insurance improved to 97.8% (99.5).
• The Group Functions segment’s operating loss was EUR -154 million (23). Income from investment activities, EUR -175 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. As a result, owner-customers benefit even more from using OP Pohjola’s banking, wealth management and insurance services: OP bonuses were increased, customers earn more OP bonuses from service use and owner-customers can decide how to use them. New OP bonuses accrued to owner-customers increased by 24% to EUR 101 million (81).
• 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.
*** The figure for 31 March 2025 was adjusted after the original disclosure.

Comments by the President and Group CEO of OP Pohjola

Geopolitical uncertainty overshadowing economic development

2026 got off to a cautiously optimistic start, but as war broke out in the Middle East in late February, the business environment quickly became more uncertain, increasing geopolitical tension. The effects of the war in the Middle East have reflected on the economy particularly in the form of higher oil prices, which will slow down global economic growth this year.

With this heightened uncertainty, we adjusted our growth outlook downwards in the first quarter of 2026. We estimate the Finnish economy to grow this year by 1%, and the world economy by 2.8%. We predict inflation to increase in Finland temporarily but to remain at a moderate level on the whole. The growth prospects depend largely on how the conflict in the Middle East will develop and at which point oil will be available at the pre-war level. If limited availability is prolonged, growth will be slower than forecast.

In the fixed income market, both short- and long-term interest rates have increased due to inflationary pressures. The 12-month Euribor, the most commonly used reference rate for home loans, was 2.87% at the end of March, or 0.63 percentage points higher than at the end of 2025. Risk premiums have increased only moderately.

The equity market has fallen clearly after war broke out in the Middle East. At the end of March, the MSCI World Index was 3.9% lower in dollar terms than at the end of last year, and profits in euro terms weakened by 2.3%. In Europe, the Stoxx 600 Europe index fell by 1.5%, while the Nasdaq Helsinki portfolio index rose by 1.1%.

Weaker investment income lowering otherwise good performance

In the unstable business environment, the first-quarter operating profit was EUR 160 million. Financial performance was 62% lower than in the same period a year ago. Operating profit was eroded especially by income from investment activities, falling by EUR 224 million year on year, due to falling share prices and higher interest rates.

Banking did well in the first quarter, but turbulence in the capital market reduced net investment income. Income from customer business was EUR 818 million (821). Net interest income fell by 10% due to market rate developments. Insurance service result increased to EUR 34 million and net commissions and fees increased by 14%.

Impairment loss on receivables totalled EUR 9 million in Q1 whereas a year ago their reversals totalled EUR 24 million.

Expenses increased by 5%, totalling EUR 622 million, mainly due to investments in ICT development and increased personnel costs. The cost/income ratio excluding OP bonuses weakened significantly and stood at 69.7%.

The earnings of all three business segments decreased from the comparison period. Retail Banking’s operating profit was at a good level, EUR 193 million, although performance was down by 34% particularly due to lower net interest income. Despite a 15% decrease, the Corporate Banking segment’s operating profit was at a good level, at EUR 123 million. In the Insurance segment, the insurance service result improved significantly, but operating profit was EUR 10 million in the negative owing to a decrease in income from investment activities.

At the end of March, CET1 ratio was 21.5%, which exceeds the minimum regulatory requirement by 7.3 percentage points. The European Central Bank lowered OP Pohjola’s Pillar 2 requirement from 2.25% to 2% as of 1 January 2026. 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.

Good growth of deposits – loan portfolio more moderate

Deposit portfolio development was strong during the reporting period, and deposits increased by 5% year on year. At the end of March, deposits totalled EUR 81 billion, and deposits by households increased in the year to March by 4% to EUR 51 billion. The loan portfolio, which grew by 1% year on year, was EUR 100 billion. The home loan portfolio remained at the previous year’s level, amounting to EUR 42 billion. OP Pohjola is a clear market leader in both deposits and credit.

The loan repayment capacity of OP Pohjola’s customers has remained good. The number of loan modification applications continued to fall. Corporate loans under special monitoring also fell, and non-performing exposures fell to 1.9% of the loan and guarantee portfolio.

We provide our owner-customers with unique benefits

OP Pohjola’s owner-customers got even better and clearer benefits with the introduction of the new benefits programme on 1 January 2026. Our owner-customers have welcomed the reform and made use of its benefits: 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 2026, we will give our owner-customers a significant additional benefit: OP bonuses are earned more than ten-fold from home, property and comprehensive motor vehicle insurance. This gives our owner-customers an added benefit of more than EUR 30 million during 2026.

The number of OP Pohjola’s investor customers exceeded the million mark

Our customers continue to be interested in systematic investing, and during the first quarter the number of our customers with investments exceeded the one million mark. Almost 20,000 new agreements were made for systematic mutual fund investing in January–March, an increase of 18% year on year. Our customers are active investors, with their net investments in January–March at EUR 1,534 million. Assets under management increased in this quarter to a record level of EUR 106 billion.

We help our customers to build wealth by offering an easy way to invest in OP Pohjola funds using their OP bonuses. By the end of March, already 33,000 owner-customers had chosen to use their OP bonuses for fund investing. Around 20% of those starting to use their OP bonuses for fund investing are new saving and investing customers with us.

OP Pohjola is Finland’s biggest provider of finance and insurance for corporate customers

Finland’s economy needs growth and OP Pohjola wants to be a partner for companies boldly engaged in growth and transformation. We are Finland’s biggest corporate financier and insurer, and increase our risk appetite in a controlled way in corporate financing. We also continue to speed up financing processes to enable companies and investments eligible for financing to get the financing they need smoothly. OP Pohjola is the market leader in corporate loans, and in January–March 2026 the volume of credit granted increased by 36% year on year, especially to SMEs.
We not only support the growth of Finnish companies through financing, but also by strengthening competencies. We are offering SMEs 25,000 LinkedIn Learning licences. In March 2026, we also chose 11 ambitious SMEs for a Growth Platform programme that we implement together with the Kasvuryhmä growth collective. The programme is very popular and a great number of applications were submitted.

Artificial intelligence improves customer and employee experience and work efficiency

We use artificial intelligence to develop a more fluent, more personal and more accessible service to our customers. We use AI more and more in customer service and digital applications. OP Aina, our customers’ AI-based assistant, deals with customer encounters online and in OP-mobile, helping with many day-to-day situations. During the first quarter of 2026, OP Aina had 2.2 million customer encounters – over 40% more than a year ago. OP Aina solved the majority of service situations immediately.

Using AI is changing the way we work more and more. It takes care of routine jobs, improves work quality and gives personnel time for more demanding decision-making and encounters that are significant to customers. AI supports our employees in daily work as a digital co-worker and improves work productivity and meaningfulness. 92% of our employees use AI on a daily basis, and the experience of benefiting from its use has risen significantly.

We are improving our long-term competitiveness also through AI research and competence. In February 2026, OP Pohjola established a financial research unit in cooperation with Qutwo, making use of quantum computing and AI to study the business opportunities of banking and insurance services of the future.

OP Pohjola supports the building blocks of economic growth in Finland

OP Pohjola carries its responsibility for the future of Finnish society by supporting competencies and research. In 2027, OP cooperative banks and OP Cooperative will donate a total of EUR 10 million to Finnish universities and the National Defence University. The goal is to boost education and research that play a key role in improving competitiveness, economic growth and confidence in the future among young people, especially during challenging times.

We support young people’s first steps in working life and support their competencies, employment and confidence in the future. Through the Summer jobs paid for by OP programme we enable thousands of young people to get work for the summer around Finland. In 2026, OP cooperative banks will offer 3,000 young people aged between 15 and 17 to get a summer job through local associations. OP Pohjola also employs almost 400 summer employees and trainees this year.

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 it going forward. 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–March

Operating profit was EUR 160 million (423), down by 62.1% year on year. Income from customer business, that is, net interest income, net commissions and fees and insurance service result, totalled EUR 818 million (821). The cost/income ratio weakened to 78.6% (59.7).

New OP bonuses accrued to owner-customers increased by 24.4% to EUR 101 million. At the beginning of 2026, OP bonuses were increased and the range of services that provide them was widened. 

Net interest income decreased by 10.4% to EUR 549 million. Net interest income reported by the Retail Banking segment decreased by 16.0% to EUR 389 million and that by the Corporate Banking segment decreased by 7.4% to EUR 136 million. Loan portfolio grew by 0.9% to EUR 100.0 billion while deposits grew by 4.8% to EUR 81.3 billion, year on year. Household deposits increased by 3.5% year on year, to EUR 50.7 billion. New loans drawn down by customers during the reporting period totalled EUR 5.8 billion (6.1).

Impairment loss on receivables totalled EUR 9 million. A year ago, impairment loss on receivables reversed came to EUR 24million. Final credit losses totalled EUR 13 million (16). At the end of the reporting period, loss allowance was EUR 674 million (677), of which management overlay accounted for EUR 52 million (58). Non-performing exposures decreased, accounting for 1.9% (2.5) of total exposures. Impairment loss on loans and receivables accounted for 0.04% (-0.10) of the loan and guarantee portfolio.

Net commissions and fees grew by 14.1% to EUR 236 million. A year ago, owner-customers got daily banking services without monthly charges. Net commissions and fees for payment services increased by EUR 23 million to EUR 82 million and those for mutual funds by EUR 7 million to EUR 53 million.

The insurance service result grew to EUR 34 million (2). Insurance service result includes EUR 148 million (142) in operating expenses. Non-life insurance net insurance revenue, including the reinsurer’s share, grew by 7.3% to EUR 449 million. Net claims incurred after the reinsurer’s share grew by 3.0% to EUR 295 million. The combined ratio reported by non-life insurance improved to 97.8% (99.5).

Investment income (net investment income, net insurance finance expenses and income from financial assets held for trading) decreased to EUR -187 million (37). Income from investment activities decreased due to changes in the fair value of equity investments by Insurance and Group Functions. 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 –0.7% (–1.1).

Net income from financial assets recognised at fair value through profit or loss, or notes and bonds, shares and derivatives, totalled EUR -414 million (-448). Net income from investment contract liabilities totalled EUR 127 million (184). Net insurance finance expenses totalled EUR 111 million (229).

In banking, net income from financial assets held for trading decreased to EUR 5 million (71) as a result of changes in the value of derivatives.

Other operating income totalled EUR 13 million (-11). 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 5.5% to EUR 622 million. Personnel costs rose by 7.6% to EUR 301 million. The increase was affected by headcount growth and pay increases. Personnel increased by almost 150, especially in areas such as risk management and compliance, and service development. Depreciation/amortisation and impairment loss on PPE and intangible assets decreased by 20.6% to EUR 25 million. Other operating expenses increased by 6.3% to EUR 296 million. ICT costs totalled EUR 155 million (139). Development costs were EUR 110 million (101) and capitalised development expenditure EUR 11 million (13). Charges of financial authorities were EUR 1 million (1). The EU’s Single Resolution Board (SRB) does not collect stability contributions from banks for 2026.

At EUR 101 million (73), OP bonuses for owner-customers are included in earnings and are divided under the following items based on their accrual: EUR 49 million (33) under interest income, EUR 27 million (22) under interest expenses, EUR 17 million (13) under commission income from mutual funds, and EUR 9 million (4) under the insurance service result.

Income tax amounted to EUR 62 million (85). The effective tax rate for the reporting period was 38.9% (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 88 million (362).

Equity amounted to EUR 19.6 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 192% (186) and NSFR was 132% (131).

OP Cooperative’s Annual Cooperative Meeting

On 22 April 2026, OP Cooperative held its Annual Cooperative Meeting which elected members of the Supervisory Council, the auditor and the sustainability reporting assurer.

The Supervisory Council will now have 21 members. The meeting re-elected the following members to the Supervisory Council who were due to resign: Key Account Manager Jan Drugge, entrepreneur Erkki Haavisto, Lawyer Miia Hirvonen, Lawyer Taija Jurmu, Managing Director Juha Korhonen, Managing Director Sanna Metsänranta, Chair of the Board of Directors Annukka Nikola, Managing Director Leena Perämäki, Managing Director Pertti Purola, HR Director Titta Saksa, entrepreneur Miika Sunikka, Director of Rural Affairs Hannu Tölli and Managing Director Mikko Vepsäläinen.

New Supervisory Council members elected were Managing Director Sanna-Mari Jyräkoski, Business Development Manager Jussi Kemilä, Managing Director Mika Kivimäki, Managing Director Mika Korkia-aho, Vice President, Chief Human Resources Officer Mervi Leipijärvi, CEO Mikko Leskelä, Managing Director Janne Pohjolainen and Professor of Business Law Janne Ruohonen.

At its reorganising meeting on 22 April 2026, the Supervisory Council re-elected Chair of the Board of Directors Annukka Nikola as Chair and Lawyer Taija Jurmu as First Vice Chair. Managing Director Mika Kivimäki was elected as Second Vice Chair. 

The Annual Cooperative Meeting elected PricewaterhouseCoopers Oy (PwC), an audit firm, to act as auditor for the financial year 2026, with APA Lauri Kallaskari as the chief auditor appointed by PwC.

The Annual Cooperative Meeting elected PricewaterhouseCoopers Oy, a sustainability audit firm, to assure OP Pohjola’s sustainability reporting for the financial year 2026, with Tiina Puukkoniemi, ASA, acting as the chief authorised sustainability auditor appointed by PwC.

Outlook

The war in the Middle East overshadows the global economic outlook, weakens the growth of Finland’s economy and increases inflation. 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 CEO Timo Ritakallio in a press conference on 6 May 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 will publish their own interim reports.

Schedule for financial reports in 2026

Helsinki, 6 May 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

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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