OP Mortgage Bank Shows Strength in First Half of 2025
Let me walk you through the latest half-year financial update from OP Mortgage Bank, covering the period from January 1 to June 30, 2025. It’s a solid example of how a financial institution can maintain stability even in a shifting economic climate.
OP Mortgage Bank, or OP MB for short, is the entity within OP Financial Group responsible for issuing covered bonds—essentially a way to raise money by selling debt backed by high-quality mortgage loans. By the end of June, the total bonds issued had reached €15.8 billion, which is up from €14.8 billion the previous year. That same €15.8 billion had also been provided as intermediary loans to 75 OP cooperative banks, keeping funds circulating within the group.
One major highlight came in April when OP MB issued its first covered bond of the year on the international market—a €1 billion, fixed-rate bond with a maturity of five years and three months. All proceeds from that bond were distributed to 38 cooperative banks, reinforcing OP’s unique interconnected structure.
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When it comes to financial performance, OP MB reported an operating profit of €2.9 million—down slightly from €4.4 million the previous year. But despite that dip, the company’s overall financial position remained stable. Their Common Equity Tier 1 (CET1) capital ratio was reported at 374.1%, which, while lower than last year's astonishing 797%, still represents very strong capital adequacy. The decrease was mainly due to changes in EU regulation (specifically CRR3), which affected how risk exposure is calculated. Even with those changes, OP MB comfortably exceeds the required capital levels.
The bank continues to issue its bonds under the EMTCB program, and it’s worth noting that the amount of collateral backing these bonds—more than €8 billion in one case and €9.3 billion in another—exceeds the legal minimums, which adds another layer of investor security.
They’ve also made clear strides in sustainability. The bank published a report in March showing that their green covered bonds helped avoid 58,000 MWh of energy use and 5,500 tons of CO₂-equivalent emissions in 2024. These bonds fund mortgages for energy-efficient homes, making this a win-win for finance and the environment.
As for risk management, everything seems to be well in hand. Interest rate risks are hedged with swaps, liquidity is monitored daily, and OP MB benefits from the broader risk buffers of the OP Financial Group. The bank is also well-prepared for EU-level resolution rules, with a strong MREL buffer and clear plans in case of financial stress.
So overall, OP Mortgage Bank’s mid-year report shows a strong, stable performance with proactive risk management, a solid capital base, and growing focus on sustainability—important signals of long-term resilience and responsibility in today’s financial world.
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