OP’s Ritakallio: In Finland, the bottom of the recession seems to have passed

Market leader in Finnish banks OP Group Profits increased in the second quarter. Operating profit rose to 611 million euros, about one-fifth of the same period last year.

CEO of OPPLE Timo Ritakallio The bottom of Finland’s recession appears to have been passed. Ritakallio said the economy is expected to recover over the rest of the year, driven by exports and consumer demand.

– In Finland, the bottom of the recession appears to have been passed and the economy is expected to recover over the rest of the year, driven by exports and consumer demand. Economic growth is expected to accelerate to an annual rate of 2% next year, but this is still just a matter of resuming the long-term slow growth trend, Rita Kallio commented in the mid-term report.

OP’s interest margin, the difference between lending and borrowing, increased by 11% to 698 million euros in the April-June period. The development of the interest margin, which is at the core of the bank’s business operations, has been supported by the end of the zero interest rate period, with many banks recently being able to enjoy higher interest margins than before.

OP’s net fee income fell 10% to €195 million in the second quarter compared with the same period last year.

Ritakallio said mortgage demand is significantly below year-ago levels.

– However, Ritakallio predicts that the real estate market seems to be turning in a positive direction in the near future.

Ritakallio said the weakness in economic development remained evident, especially in the construction and related sectors.

——The risks of the entire real estate industry are still high. Business investment is at a low level.