OP Bank Group
OP Bank Group had a fantastic year, with increasing profits and an acquisition that has enhanced the bank’s growth potential significantly.
Its takeover of Pohjola Group, the country’s second largest non-life insurer and leading life insurer and asset manager, diversified the group’s business portfolio and earnings profile, and offers excellent cross-selling opportunities. It also offers substantial cost synergies through the integration of operational functions. Cost-efficiency targets were tightened in the new group’s strategy, with the long-term target for cost/income ratio lowered to 52% and annual cost growth expected not to exceed 1% in 2006-10.
The group developed co-operations with other Finnish financial institutions, such as Kesko, a leading retailer covering card developments, payments and consumer finance, and Ilmarinen, a leading pension insurer.
“Last year was a period of great achievements for us, culminating in the acquisition of Pohjola Group,” says Antti Tanskanen, CEO. “The deal has already offered ample rewards in terms of faster growth and improved customer acquisition, and we expect the benefits to increase further once the integration process is completed. Another cornerstone of our success in the coming years will be the forceful development of our customer loyalty programme, which will provide our customers with yet another incentive to satisfy all their banking and insurance needs with us.”
