2014 in Brief

  • Earnings before tax for 2014 were EUR 915 million (701), year-on-year improvement 31%.
  • Group total income increased by 8%, while expenses decreased.
  • Impairment loss on receivables totalled EUR 88 million (84), that is, at a low level of 0.12% of the loan and guarantee portfolio.
  • The Group's owner-members and OP bonus customers received bonuses and income from equity investments in 2014 to an estimated total of EUR 216 million (193).
  • The Group's taxes for the financial year were EUR 337 million (120).
  • Each of the three business segments improved its performance markedly.
      • Banking earnings before tax increased by 45% to EUR 587million (404). The cost/income ratio improved by 6 percentage points to 56%. The loan portfolio grew by 3.8% and deposits by 3.0% during the year.
      • Earnings before tax by Non-life Insurance increased by 34% to EUR 223 million (166). The operating combined ratio reached a record level of 84.7%. Premiums written increased in the financial year by 5%.
      • Wealth Management earnings before tax increased by 43% to EUR 161 million (113). Mutual fund assets increased during the year by 21% and unit-linked insurance savings by 21%.
      • The number of joint banking and non-life insurance customers increased by 72,000 to 1,590,000.
  • During 2014, OP Financial Group redeemed Pohjola Bank plc shares held by shareholders outside the Group by EUR 2.4 billion, and Pohjola Bank plc's shares were delisted from Helsinki Stock Exchange on 30 September 2014.
  • Despite the purchase of Pohjola Bank plc shares, the Group's capital adequacy is strong. On 31 December, Common Equity Tier 1 (CET1) was 15.1% (17.1). Profit shares that support CET1 were issued by the end of the year for EUR 1,561 million.
  • Earnings before tax in 2015 are expected to be equal or higher than in 2014. For more information, see “Outlook for 2015”.

OP Financial Group's key indicators


2014 2013 Change, %
Earnings before tax, € million 915 701 30.6
  Banking 587 404 45.1
  Non-life Insurance 223 166 34.4
  Wealth Management 161 113 42.5
       
Returns to owner-members and OP bonus customers 195 193 0.7

31 Dec 2014 31 Dec 2013 Change, %
Common Equity Tier 1 (CET1) ratio, % ** 15.1 17.1 -2,0*
Ratio of capital base to minimum amount of capital base (under the Act on the Supervision of Financial and Insurance Conglomerates)** 1.89 2.19 -0,3*
Ratio of receivables more than 90 days overdue to loan and guarantee portfolio, % 0.38 0.42 -0,04*
Joint banking and insurance customers (1,000) 1,590 1,518 4.7
         

* Change in ratio ** The comparatives are presented based on the regulatory framework that came into effect on 1 January 2014.