NewzIntel.com

Category: Banking

  • MIL-OSI Economics: Philip N Jefferson: Do non-inflationary economic expansions promote shared prosperity? Evidence from the US labor market

    Source: Bank for International Settlements

    Figures accompanying the speech

    Thank you, Professor O’Connell, for that kind introduction and for the opportunity to talk to this group.1 I am delighted to be back at Swarthmore College. This special community brings back fond memories of fantastic students, great colleagues, and pedagogical excellence.

    Yesterday, I discussed my outlook for the current U.S. economy. I highlighted how the economy is growing and appears to be roughly in balance, with low unemployment and declining inflation. Today, I will review some of the historical evidence pertaining to periods when the Federal Reserve has achieved both components of its dual mandate, maximum employment and stable prices, on a sustained basis-that is, periods of long non-inflationary economic expansions. My title question is whether economic evidence indicates that such expansions also result in greater shared prosperity.

    My focus will be on the labor market. A reason for this focus is that for many individuals, their employment attachment is a key determinant of their household’s overall well-being. My approach will be to compare the current labor market with the labor market at the end of 2019-that is, at the end of the most recent long, non-inflationary expansion. Such a comparison provides a lens through which to view the prospects for broadly shared prosperity fostered by the current U.S. labor market.

    The remainder of my talk is organized as follows. First, I describe the labor market at the end of 2019. After that, I discuss the state of the labor market in the immediate aftermath of the COVID-19 pandemic. Then, I describe the current labor market situation. Next, I discuss possible reasons why strong labor markets facilitate broad-based prosperity. Before concluding, I consider whether the benefits of long expansions are persistent.

    MIL OSI Economics –

  • MIL-OSI Europe: Czech Republic financing from EIB Group in 2024 focused on rail upgrades, energy advances and job creation

    Source: European Investment Bank

    • EIB Group financing in the Czech Republic rose to €2.47 billion last year from €1.86 billion in 2023
    • EIB stepped-up support for Czech railway and energy industries as well as small and medium-sized companies
    • Latest annual results bring EIB Group financing in Czech Republic to almost €9 billion over past five years

    The European Investment Bank (EIB) Group’s new financing in the Czech Republic rose 33% to €2.47 billion last year on the back of stepped-up support for the railway and energy industries as well as a range of companies in the country.

    The total for 2024 amounts to approximately €2.47 billion, including €2.34 billion from the EIB and €190 million from the European Investment Fund (EIF), which focuses on micro companies and small and medium-sized enterprises (SMEs) in Europe. An additional €60 million accounts for joint operations between the EIB and EIF.

    Safer and faster train travel, improved infrastructure to integrate green energy into the power grid for households and businesses and SME growth and job creation were among the main goals of EIB Group financing in the Czech Republic last year. The increase marks the third consecutive year-on-year rise in EIB Group funding in the country. 

    “We are proud to play a vital role in the Czech Republic’s ongoing transformation into a modern, globally competitive economy,” said EIB Vice-President Kyriacos Kakouris. “Our commitment remains strong as we continue supporting the country in key areas such as industrial decarbonisation, renewable energy deployment, energy efficiency, green transport, and ensuring a socially just transition.

    The EIB Group’s financing in the Czech Republic last year was higher than not just the total of €1.86 billion in 2023 but also an average of €1.77 billion in the country over the past five years. Since 2020, EIB Group funding in the Czech Republic has totalled almost €9 billion.

    The EIB Group’s financing in the Czech Republic in 2024 helped create nearly 89,000 jobs in the country, highlighting the organisation’s role in promoting employment and economic growth.

    Top EIB operations in the Czech Republic last year include a €527 million (13 billion Czech korunas) loan to the government to bolster the railway network and a €300 million credit to national rail operator České dráhy to upgrade trains.

    In the Czech energy sector, the EIB provided a €400 million loan to utility ČEZ to strengthen the electricity grid. Overall, EIB financing for this sector in the country doubled in 2024 compared with the year before, bolstering the fight against climate change and a push for energy independence.

    On the company front, the EIB last year supported a range of Czech SMEs and Mid-Caps to the tune of €866 million – an 83% increase from 2023 – through intermediaries such as Moneta Money Bank, Ceskoslovenska Obchodni Banka, CSOB Leasing, Komerční banka and SG Equipment Finance Czech Republic.  It also provided financing of €90 million to e-grocery business Rohlik, one of the three Czech unicorns, and €30 million to Czech software producer Y Soft for research advancements.

    The main EIF operations in the Czech Republic last year include €190 million in equity, inclusive finance and guarantees to support intermediated financial institutions – funding expected to unlock further investments for businesses in the country.

    Scaling-up affordable housing investments across the EU is at the forefront of EIB’s agenda. Through advisory services, it is working closely with the Ministry of Regional Development and Ministry of Finance on the strategic framework for the sector to boost investments and identify project pipeline.  

    The EIB Group’s financing in the Czech Republic over more than three decades totals around €29.4 billion.

    Background information:

    EIB  
    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives by bolstering digitalisation and technological innovation, security and defence, agriculture and bioeconomy, social infrastructure, high-impact investments outside the EU, and the Capital Markets Union.   The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 projects in 2024. These commitments are expected to mobilise around €350 billion in investment, supporting 400 000 companies and 5.8 million jobs.  As for the Czech Republic, the EIB Group signed operations worth a total of €2.47 billion last year.

    All projects financed by the EIB Group are in line with the Paris Climate Accord and the EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

    Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

    MIL OSI Europe News –

  • MIL-OSI Europe: Czech Republic to step up railway improvements with EIB loan of €466 million

    Source: European Investment Bank

    • EIB lends Czech Republic €466 million (11.75 billion Czech korunas) to upgrade key railway lines in country.
    • Financing support to deployment of European Rail Traffic Management System (ERTMS) and creation of safer level crossings.
    • Project highlights Europe-wide push for rail-service improvements.

    The European Investment Bank (EIB) is lending the Czech Republic €466 million (11.75 billion Czech korunas) to upgrade key railway lines across the country, highlighting a push for safer, faster and cleaner transport. The EIB loan will cover technological and design improvements on Czech rail routes that are part of the Trans-European Transport Network (TEN-T) for trains and that connect to countries including Austria and Poland. 

    The Czech Ministry of Finance will direct the EIB credit to the national railway infrastructure administrator, Správa železnic, which will manage the planned works.  These include deploying the European Rail Traffic Management System (ERTMS) on rail lines, retrofitting maintenance vehicles with ERTMS equipment and re-designing level crossings to make them safer.

    The new financing is part of a circa €1 billion funding package approved by the EIB in 2023 for improving Czech railways. The overall goals are to make rail travel in the country safer and faster as well as to encourage a shift away from road transport as part of efforts to slash emissions that cause climate change.

    “The new loan exemplifies our commitment to supporting sustainable transport infrastructure in the Czech Republic,” said EIB Vice-President Kyriacos Kakouris. “By modernising the railway network, we are not only improving the quality of rail services but also contributing to a greener and more sustainable future.”

    The upgrades to be financed by the new EIB credit are due to be completed by the end of 2028 and include roughly 40 individual projects throughout the country. Their geographical spread reflects EIB and European Union goals to deepen regional cohesion as well as tackle globalwarming.

    “Today’s signing of the loan agreement is yet another confirmation of our long-term cooperation with the EIB in modernizing the Czech transport infrastructure. The EIB provides an opportunity to finance major projects under favourable terms for the Czech Republic. By utilizing this loan, Správa železnic can secure subsidies for individual projects from the European Just Transition Mechanism, further enhancing the effectiveness of this financing method,” said Czech Finance Minister Zbynek Stanjura.

    Rail upgrades in the Czech Republic and other European countries will help the EU meet a goal of becoming climate neutral by 2050.  

    „I am very pleased that the EIB’s continued support confirms our readiness to contribute to the development of modern railways to ensure quality and environmentally friendly transport on both the national and trans-European transport network. At the same time, it proves the high quality of our projects also in comparison with other countries, ” commented Czech Transport Minister Martin Kupka.

    This underlying EIB loan also supports the reconstruction of eight railway stations across all three coal regions of the Czech Republic, which is a set of projects that were also selected for a grant from the European Commission under the Public Sector Loan Facility, the third pillar of the Just Transition Mechanism.                                                           

    “The eight railway stations spanning from the westernmost city of Cheb to Ostrava, the capital of the Moravia-Silesia region, have been selected for PSLF grants of more than EUR 20 million,” said Paloma Aba Garrote, Director of the European Climate, Infrastructure and Environment Executive Agency, or CINEA. “The reconstruction of these important public buildings will improve passenger comfort and safety, as well as accessibility for people with disabilities and improve energy efficiency. Moreover, some of these buildings will be refurbished and repurposed to accommodate new office and retail space, which will contribute to the economic revitalisation of the municipalities.”

    Background information

    About the EIB and the Czech Republic

    The European Investment Bank (EIB) is the long-term lending institution of the European Union. It finances sound investments contributing to EU policy goals. The EIB Group invested €2.47 billion (or CZK 63 billion) in the Czech Republic in 2024, supporting regional development and boosting economic resilience while also enhancing environmental sustainability and improving quality of life.

    About PSLF and Just Transition Mechanism (JTM)

    The Public Sector Loan Facility aims at alleviating the social and economic effects of the transition towards climate neutrality in the EU regions. It is a blending facility that combines loans from the EIB with grants from the European Commission to help mainly public sector entities in the most affected EU regions identified in the territorial just transition plans, to mobilise additional public investments and meet their development needs in the transition towards climate neutrality. The first PSLF call for proposals was launched on 19 July 2022 with 10 intermediate cut-offs until the end of 2025. There are 3 cut-off dates per year planned until the end of 2025. The next call for proposals will be launched in the second half of 2025.

    To find out more about PSLF and PSLF-funded projects, visit CINEA website.

    About DG REGIO

    The Directorate-General for Regional and Urban Policy (DG REGIO) is a department of the European Commission responsible for EU policies on regions and cities. It develops and carries out the Commission’s policies on regional and urban policy. It assists the economic and social development of the developed and less developed regions across the European Union.

    CINEA

    The European Climate, Infrastructure and Environment Executive Agency (CINEA) is an Executive Agency established by the European Commission to implement parts of EU funding programmes for transport, energy, climate action, environment and maritime fisheries and aquaculture.

    CINEA aims is to support its beneficiaries, establish strong partnerships, deliver high-quality programme and project management, foster effective knowledge sharing and create synergies between programmes – to support a sustainable, connected, and decarbonised Europe.

    MIL OSI Europe News –

  • MIL-OSI Europe: Czech city Ústí nad Labem to get green upgrades with EIB loan of almost €43 million

    Source: European Investment Bank

    • EIB lends €42.8 million to Ústí nad Labem in north-west Czechia to upgrade municipal infrastructure.
    • Loan to cover building, transport and energy renovations.
    • Improvements also planned for education and social care.

    The European Investment Bank (EIB) is lending €43 million (CZK 1.08 billion) to the Czech city of Ústí nad Labem for a range of green and social improvements, highlighting a Europe-wide push for urban renewal and sustainability.

    Ústí nad Labem, with a population of around 90 000 located near the Czech border with Germany, will use the EIB loan to refurbish buildings, enhance energy efficiency, develop clean power and upgrade services, including public transport, education and social care.

    The city is an industrial centre where a number of Czech manufacturing companies are located. It has a port on the river Elbe and serves as a major road and railway hub. The European Union seeks to make all cities climate-neutral by 2050 to combat global warming.

    “This loan to Ústí nad Labem underscores our commitment to empowering cities in their transition towards climate-neutral and sustainable growth. By modernising infrastructure, improving energy efficiency and advancing renewable energy investments, we are enhancing quality of life while building a greener, more inclusive and resilient future for people,” said EIB Vice-President Kyriacos Kakouris.

    Part of the EIB loan will go to works at the municipal zoo, including upgrading animal pavilions, visitor areas and energy and water management. These efforts support climate action by reducing greenhouse gas emissions.

    The EIB loan stems from an EU initiative, the Just Transition Mechanism (JTM), which aims to address the social and economic impacts of transitioning to a climate-neutral economy. By blending loans from the EIB with grants from the European Commission, JTM supports investments in the regions most affected by this transition, ensuring no community is left behind. Accordingly, the EIB will finance up to 72% of the overall project costs, complemented by funding from EU grants and the city’s budget. The project promoter benefits from the support of the InvestEU Advisory Hub and will apply for a Public Sector Loan Facility (PSLF) grant, which would amount to 25% of the EIB loan amount.  

    The EIB loan aligns with the city’s development strategy supporting sustainable urban renewal. The EIB will also advise the City of Ústí in terms of conducting investments in municipal infrastructure, zoo pavilions, water management and energy savings.

    “Public housing, mobility and energy are key topics in our transformation process and in the long-term and sustainable direction of the city, and I am very pleased that we have managed to secure financing for these types of projects through cooperation with the EIB. I believe that we are only beginning our cooperation with the EIB, that will significantly advance the city and our zoo, which can become a truly modern and energy-self-sufficient area. We are also striving to access EIB support within the ELENA programme,“ said Ústí nad Labem Mayor Petr Nedvědický.          

    This EIB loan overcomes obstacles to market financing, ensuring that Ústí nad Labem can invest in essential public goods, services and a sustainable future.

    Background information

    About the EIB and Czechia

    The European Investment Bank (EIB) is the long-term lending institution of the European Union. It finances investments contributing to EU policy goals. The EIB Group invested €2.47 billion in Czechia in 2024, supporting regional development and boosting economic resilience while also enhancing environmental sustainability and improving quality of life.

    About PSLF and the Just Transition Mechanism

    The Public Sector Loan Facility aims to alleviate the social and economic effects of the transition towards climate neutrality in the EU regions. This blending facility combines loans from the EIB with grants from the European Commission to help mainly public sector entities in the most hard-hit EU regions, which are identified in the territorial just transition plans, to mobilise additional public investments and meet their development needs in the transition towards climate neutrality. The first PSLF call for proposals was launched on 19 July 2022 with ten intermediate cut-offs until the end of 2025. There are three cut-off dates per year planned until the end of 2025. A second call for proposals will be launched in 2026.

    To find out more about PSLF and PSLF-funded projects, please visit the CINEA website.

    CINEA

    The European Climate, Infrastructure and Environment Executive Agency (CINEA) is an executive agency established by the European Commission to implement parts of EU funding programmes for transport, energy, climate action, environment, maritime fisheries and aquaculture.

    CINEA aims to support its beneficiaries, establish strong partnerships, deliver high-quality programme and project management, foster effective knowledge-sharing and create synergies between programmes, to support a sustainable, connected and decarbonised Europe.

    MIL OSI Europe News –

  • MIL-OSI Europe: How to bring startups to global markets

    Source: European Investment Bank

    Since its establishment, the park has been building a startup ecosystem and encouraging young people to become entrepreneurs. It has developed services and programmes for new teams and companies, as well as for more advanced tech firms looking to enter new markets and attract investment.

    “The park’s experts have been providing support in strategy development, venture capital funding, financial negotiations and legal aspects,” Grković says.

    It has also established partnerships across the world in locations such as Israel, France, Spain, the United Kingdom and Switzerand. 

    “In 2024 alone, we organized five missions to discover new markets for Serbian startups, enabling them to participate in leading global tech conferences such as VivaTech, Web Summit, StartupDays, and London Tech Week,” Grković says.

    Startups operating in the Science Technology Park Belgrade are working in the fields of information technology, biomedicine, robotics, nanoscience, energy efficiency, smart cities, and innovative agriculture. They are developing various innovative products in fields as diverse as house plants in apartments, non-invasive remote monitoring of bee colonies, personalized approaches to women’s health, therapeutic toys for speech therapists or robot-based learning platforms for children.

    MIL OSI Europe News –

  • MIL-OSI Europe: Piero Cipollone: Interview with Reuters

    Source: European Central Bank

    Interview with Piero Cipollone, conducted by Balazs Koranyi and Francesco Canepa

    6 February 2025

    The ECB has said that the direction of travel for monetary policy is clear, but the timing and extent of moves is not. What does this guidance mean to you?

    We are moving towards the target. The direction of inflation is clear, despite some small bumps. All incoming information points to a convergence with the target in 2025 and this is what our models are also telling us.

    Our models include market expectations for the interest rate path, so this convergence with the inflation target is coherent with a declining interest rate path.

    Everything is of course contingent on the information at the time of the forecasts, and we will have a new forecast round in March. Before then, we’ll get another inflation print, we’ll have more details on the composition of inflation, and all these feed into the model, as do market expectations for interest rates.

    Does that mean implicitly that you are comfortable with market expectations for further rate cuts as they are embedded in the projections?

    That was conditional on the information we had in December. I am comfortable as long as that path takes us to the target in the medium term in a sustainable way.

    What does the data since that December meeting tell you?

    Overall, I think the direction is the same. I don’t see huge changes in our view, except trade tensions. The overall understanding of where we are going is there, the fundamentals haven’t changed, so I do not expect a big change in direction.

    One thing that might happen is a trade war with the United States. How would that affect your thinking?

    It depends on details such as whether we retaliate, precisely what these tariffs are going to be levied on, and how China is affected.

    If tariffs are imposed on us, the most immediate impact will be on growth.

    The price of goods will be higher in the United States. Who is going to absorb the cost? It could be that European companies, in order to defend their market share, might be willing to sacrifice a bit of their margin in order to stay in the market. We have seen this many times and European firms have a great ability to adjust. Part of this sacrifice might be recovered through the exchange rate. So, in the end, the overall impact may not be that big.

    What concerns me more is if President Trump engages in a full trade war with China. This is a more serious threat because China has 35% of the world’s manufacturing capacity. Trade barriers will force China to sell its goods elsewhere and the competition from China could be a serious threat to us. These goods showing up in Europe could have both a deflationary and a contractionary impact because they would crowd out local products.

    The uncertainty is exceptionally high, everything is in motion. And we can’t assess where it’s all going until things fall in place.

    It’s true we have a goods surplus with the United States. But if you add in services and look at the overall current account, then the balance is close to zero.

    Looking at the very short term, can you support a rate cut in March, as some of your colleagues are already saying?

    I don’t want to seem elusive, but the uncertainty is so high that anything can happen. We all agree there is still room for adjusting rates downwards. But we need to be extremely careful. It’s important to stress this idea of a meeting-by-meeting, data-dependent approach. I want to enter the meeting with an open mind, see the staff assessment and process incoming data.

    But we also all agree that we are still in a restrictive territory.

    Suppose tariffs on China stay, that’s a huge demand shock. On the other hand, we have energy prices moving upwards. It could be a transitory phenomenon, but what if this is more entrenched?

    How far are we from the neutral rate and why has the neutral gone up?

    When you have an estimate range that is 50 or 75 basis points, then it’s a conceptual tool and doesn’t have much bearing on policy, given the high uncertainty. Take estimates that it is between 1.75% and 2.25%. Those are two completely different monetary policies, if you are close to target. It’s such a wide range that one number could imply that you are undershooting and another that you are overshooting. So “neutral” is a very powerful analytical concept but not terribly useful for setting monetary policy, given this embedded uncertainty.

    It’s possible this rate went up but it’s also possible it stayed unchanged given how wide the band is.

    You say you are clearly restrictive now. Would that still apply after the next cut? When does the debate start on when restrictive ends?

    We are almost on target. The closer you get to target, the less you’ll need to stay restrictive.

    It’s also true we have been overly optimistic on growth and had to cut our growth forecasts three times since June. So, it is possible that the recovery is not as strong as expected and thus the inflationary pressure coming from demand is weaker. This could prompt us to reassess our concept of restrictiveness.

    Could this mean that you need to become accommodative to avoid an undershoot?

    I assess the risk around inflation to be balanced and I don’t have evidence of a possible undershoot. Long-term inflation expectations are also very well anchored.

    The latest information, especially the rise in the cost of energy, makes me think that we should be prudent. It might be a transitory phenomenon, but prices have risen substantially. Consumer expectations have also gone up a little as they are very reactive to short-term developments.

    I’m not saying that risks are moving towards being on the upside, but we have no evidence of undershooting either.

    Do the growth revisions suggest fundamental changes in how the economy functions?

    Growth has been disappointing, especially because of investments. Consumption may have been less buoyant than we thought, but it remains broadly on the path that we are expecting. The fundamentals for rising consumption are there. Real incomes are increasing, employment is high, inflation is declining and consumer confidence is holding steady.

    The real problem is investments, and that is only partially linked to monetary policy. The culprit is uncertainty. Investments have been weak since the summer given the overall uncertainty and the direction of trade policy after the US election.

    My sense is that people are holding out before making important investment decisions. There is of course a cost component related to interest rates. But you see that people are investing just to replace old capital stock.

    What can the ECB do about it?

    We have to take care of the cost component and avoid being unduly restrictive. Our goal should be to have the economy growing close to potential and to contribute to reducing uncertainty as much as possible.

    Could another targeted longer-term refinancing operation help investments?

    It doesn’t seem to me that the lack of available funding is the issue. We have seen some tightening of credit conditions but that’s not the key factor here.

    Last week we were talking about a 25% tariff, today not anymore, and tomorrow we don’t know. All companies are trying to understand where it’s all going so that they can make investment decisions.

    How does this uncertainty affect the labour market?

    There could be some softening of the labour market but overall we have been positively surprised. We went through a huge disinflation process with a very strong labour market.

    Labour hoarding has two dimensions. One is the cost. Overall, the cost is still relatively low because, by some measures, real wages are still below the pre-pandemic level. The second reason is that firms are afraid of losing skilled labour and this is still the case.

    The labour market is softening, however. The problem is manufacturing essentially. But even there we see some light at the end of the tunnel. There seem to be some initial signs of recovery in the Purchasing Managers’ Index and the Economic Sentiment Indicator. I was surprised to see that confidence in the construction sector and manufacturing activity have bottomed out, and we see some possible signs of recovery. Services are holding up overall. If there is some softening in terms of demand for labour, possibly there will be a pick-up in productivity which will reduce the unit labour cost overall. We obviously need to monitor it because, with all this uncertainty, we could see a deterioration. But I am not overly concerned about the labour market.

    Adding up what you said about these modest signs of recovery in manufacturing, does that mean you still believe in the soft-landing narrative and you don’t see a recession?

    We might not be booming but I am not expecting a recession at all. I think consumption will slowly go up because the fundamentals are there, labour income is growing, the cost of borrowing is declining, inflation is declining, and consumer confidence is basically holding up, so it’s possible that the savings rate will decline from a historic high. So, overall, I think consumption will keep going – and that is a big chunk of the economy. Investment should recover too, as soon as all this uncertainty dissipates. First, one cannot hold back forever: imagine you have a bunch of cumulated investment decisions to make. Even if a small percentage of them go through, it will be a positive and you will see that in investment. Second, less restrictive financial conditions are slowly being transmitted to the cost of financing. And third, in 2025-26 we should see an acceleration in the spending of Next Generation EU funds in Europe.

    Moving to the digital euro. Could you give us an update?

    We have started the procurement process and we will be selecting suppliers in June, but the contracts are such that they will only be triggered if the Governing Council decides to issue the digital euro. We have been working on the rulebook and we will be able to finalise it shortly after we have firm EU legislation in place. For example, whether people can have access to one or more wallets will have an influence on the rulebook, so if we don’t have a final legislation, we cannot finalise the rulebook. But it will not take long once the legislation is approved because we have done as much work as possible in the absence of a firm legislation. So the procurement is done and the rulebook is almost done. We are also working with the market to leverage the innovation potential of the digital euro. We think there is huge potential in conditional payments to increase the quality and the menu of the offering on payments.

    So that is a payment that only happens if a certain condition is fulfilled, right?

    Today there is only one type of conditional payment and it is based on time: pay this amount to this person on this date. We think we can do better than that. To make sure that this intuition is right, at the end of October, we issued a call for innovation partnerships. We were surprised to receive 100 offers. People want to experiment with new ideas. We will be doing that for the next six months and we will then prepare a report.

    Would conditional payments require a blockchain? How else would the condition be verified?

    No, it’s not a matter of blockchain. If you have a way to register the transaction on the ledger through a sort of token, that is a possibility. But technicians tell me you can make a transaction conditional even on a traditional ledger. We are working on that, but the information that I can give you is that we can do better than what we are doing today on conditional payment, regardless of the underlying technology. The technology has a bearing on many dimensions, for example latency and privacy.

    Could you give me an example of a conditional payment that could be settled in digital euro?

    For example, if the train is late, today you have to ask to be reimbursed. You could have a solution in which you only pay if the condition is automatically verified. 

    To conclude with where we are in the preparation phase, let me add that since the digital euro is a product, we have to market it. So, we are engaging with focus groups and using surveys to understand how to best finalise the product in order to meet people’s expectations. We are on schedule, so we should be ready to take a decision on moving to the next project phase by November 2025. I don’t know whether at that time the Governing Council will already be able to take a decision to eventually issue a digital euro because that depends on whether we have a legislation at that point. We have been clear that we would not take any decision about the issuance of a digital euro before the legislative act has been adopted.

    We had expected legislation on the digital euro some time ago. What’s holding up the process? Are you sensing a lack of political will?

    I wouldn’t say there’s a lack of political will. I think people want to understand the whole process. The European Commission issued legislation in June 2023, then the European Parliament started to work on that, but mentally they were not there because there was an EU election coming up. Everything stopped. They are starting to work on this now so, to be fair to them, they didn’t have much time. By contrast, in the Council of the European Union’s working party, work is progressing. As far as I know, they have gone through all of the legislative proposal and they are now focusing on the issues that still need to be worked out.  When both the Council and the Parliament have agreed internally, they will sit down with the Commission and try to finalise the legislation. So, we hope they will be able to reach an agreement internally before the summer. But again, political processes are complex and there are many things on the table. Obviously the sooner the better, but we fully understand their needs. My sense is that there is an increased sense of urgency because of the position that has been taken by the new US Administration. The fact that the US President went in so strong on this idea of promoting worldwide US dollar-denominated stablecoins obviously is a signal. The political world is becoming more alert to this. And it’s possible that we will see an acceleration in the process.

    Stablecoins are similar to money market funds that people use if they don’t want to go via the banking system, whereas the digital euro, with its holding limit, will purely be a means of payment. Why do you think a digital euro would be a good response to stablecoins?  

    You’re right, for as long as stablecoins are not used as a means of payment. My sense is that they will be. This is worrisome because if people in Europe start to use stablecoins to pay, given that most of them are American and dollar-based, they will be transferring their deposits from Europe to the United States. It may start with peer-to-peer, cross-border transactions. Then an American tourist may be able to use stablecoins instead of using a credit card, for example. So stablecoins can enter the payment space, for example, if they can compete with card schemes by reducing the price for the merchant. We have seen that important payment providers have already issued stablecoins, like PayPal, for example.

    Turning now to bitcoin, we know that the ECB has got repo lines and swap lines with other central banks. Would the ECB maintain those with a central bank that has bitcoins among its reserves?

    It’s an interesting question. Fortunately we don’t have to think about that right now because no major central bank is thinking about that.

    One is hypothesising.

    We would need to do a risk management assessment of that. Let’s see if any central bank enters this space because I don’t fully see the rationale for it. We will assess it at that point in time, if it happens. I am trying to be rational and think about why I should invest in bitcoin or another crypto-asset. The only rationale is if one thinks that the price will always go up. It doesn’t have any underlying value, there is no asset backing it, there is no earning model.

    On that, it’s a bit like gold.

    The structures of the two markets are completely different: the transparency of the market, the concentration. So, I would be careful about making the analogy. I don’t know how deep the market for gold is, but there are central banks in that market, and not just because of a legacy system. We should not stop at a superficial analogy between gold and bitcoin.

    Why do central banks invest in gold, other than legacy?

    It’s in part due to legacy, but gold has intrinsic, commercial and industrial value. Bitcoin does not have any of that.

    We’ve seen gold and bitcoin make all-time highs at the same time. Or should we say that fiat currencies are making all-time lows?

    Fiat currencies allow you, among other things, to pay. Good luck trying to pay in bitcoin or gold. Central bank money is the safest asset you can imagine and it’s relatively stable in terms of what you can buy with it.

    MIL OSI Europe News –

  • MIL-OSI United Kingdom: Spades in the ground on £295 million West Midlands Metro extension

    Source: United Kingdom – Executive Government & Departments

    Trams will run from Wednesbury to Brierley Hill, providing faster and more reliable transport connections to centre of Birmingham and wider West Midlands.

    • Transport Secretary, Heidi Alexander in the West Midlands to begin work on the £295 million project
    • the extension will better connect the Black Country with the centre of Birmingham, improving access to jobs and opportunities
    • government investment to transform infrastructure and grow the economy as it delivers the Plan for Change

    The Transport Secretary, Heidi Alexander is in the West Midlands today (6 February 2025) to put spades in the ground on the extension of the West Midlands Metro tram network in the Black Country.

    Funded through the government’s £1.05 billion City Region Sustainable Transport Settlement (CRSTS) for the West Midlands, the project will see drastically improved connections for currently underserved communities.

    For the first time, this investment will mean trams will run from Wednesbury to Brierley Hill, providing faster and more reliable transport connections between Dudley and Brierley Hill to the city centre and wider West Midlands and so to jobs and opportunities. 

    Providing first time light rail connection for many local residents, passengers will benefit from journey time savings of up to 30% compared to taking the bus and with greater reliability at peak times.

    The first phase of the extension, running from Wednesbury to Dudley town centre, is already well underway and due to open to passengers in autumn of this year.

    Poor local transport stifles local productivity, particularly in smaller towns and rural areas where so many rely on local buses, trains and trams. That’s why boosting local transport infrastructure is central to the government’s Growth Mission, as is empowering local leaders to deliver better transport for their communities through the Devolution White Paper. This is helping support jobs, boost local business and deliver growth in all 4 corners of the UK as part of the government’s Plan for Change.

    Transport Secretary, Heidi Alexander, said:

    Residents in and around the Black Country have been chronically underserved by public transport, limiting access to jobs and opportunities and stunting economic growth.

    We’re turning the tide on poor transport connections in the West Midlands and delivering a transport system that people can rely on, raising living standards across the region.  

    The extension of the West Midlands Metro will be transformational and I am delighted to officially mark the start of work today as this government gets on with supporting local jobs and business while empowering local leaders to deliver our Plan for Change.

    Once complete, the extension will provide a major boost to local businesses as the extension is set to pass through Cinder Bank, Pedmore Road and the Waterfront business park.

    The Transport Secretary is meeting with West Midlands Mayor Richard Parker and being given a tour of Parkhead Viaduct in Dudley – an iconic 19 century Brunel structure which will come back into use as part of the Metro route.

    Richard Parker, the Mayor of the West Midlands, said:

    Good transport links are essential – helping people get to school, work, local shops and to enjoy a day out. Extending the metro further into the Black Country opens up routes for job opportunities, skills and growth, ensuring fast, reliable journeys for everyone across the West Midlands.

    Now that I have secured the funding from government and we’ve got the approvals needed, the work can start to make this long-awaited project a reality. The restoration of this viaduct shows how we can protect our region’s industrial heritage while developing modern infrastructure.

    With the first phase nearly complete, the Metro is already creating jobs, supporting local businesses, and attracting investment to the area, and soon it will take those same opportunities into Dudley and Merry Hill.

    Rail media enquiries

    Media enquiries 0300 7777878

    Switchboard 0300 330 3000

    Updates to this page

    Published 6 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI Europe: EBA reflects on the short/medium term objectives of its interest rate risk in the banking book Heatmap

    Source: European Banking Authority

    The European Banking Authority (EBA) today published a Report on the short to medium term objectives of its interest rate risk in the banking book (IRRBB) Heatmap, including observations and recommendations to institutions and supervisors.

    Today’s Report addresses the main areas of scrutiny identified by the short to medium term objectives of the Heatmap following the EBA scrutiny on the IRRBB as published on January 2024. It also provides tools to support the assessment of IRRBB risks, without setting any new requirements or thresholds, so as to foster a common understanding of IRRBB risks. The key areas of focus are:

    1. Non-maturity deposits (NMD) behavioural assumptions, where a non-exhaustive list of risk factors impacting NMD repricing behaviour is provided, and which could be considered by institutions when modelling the behaviour of their NMD. It also provides a toolkit to support supervisors in their analysis of NMD modelling.
    2. A non-exhaustive set of complementary dimensions that supervisors could consider for institutions identified as outliers under the supervisory outliers test (SOT) on net interest income (NII). They reflect internal metrics commonly used by institutions without setting new requirements or thresholds. This builds on the EBA Opinion that SOTs are indicators to be taken into account with no automaticity under the Supervisory Review and Evaluation Process (SREP).
    3. Commercial margins of NMD in the SOT on NII in the context of the constant balance sheet assumption. The Report clarifies that institutions should apply the same modelling assumptions on commercial margins as used in their internal measurement systems or, in their absence, consider a constant spread, across scenarios.
    4. Hedging strategies, including a recommendation on the role of interest rate derivatives for prudent IRRBB management and specifying that the repricing modelling of NMD (and its role natural hedging) should be based on the specific features of NMD.

    The EBA will continue its discussions with stakeholders on the various aspects identified in the medium to long term objectives of the Heatmap, such as monitoring the 5-year cap of the weighted average repricing maturity of NMD, credit spread risk arising from non-trading book activities (CSRBB) related aspects, and the Dynamic Risk Management (DRM) project of the International Accounting Standards Board (IASB).

    Legal basis, background, and next steps

    With the publication in the Official Journal of Commission Delegated Regulation (EU) 2024/856 (RTS on SOT) and Commission Delegated Regulation (EU) 2024/857 (RTS on SA) on 24 April 2024, and the publication of Commission Implementing Regulation (EU) 2024/855 (amending ITS on reporting) of 15 March 2024, the regulatory framework on IRRBB has been reinforced. In addition, the latest version of EBA’s Guidelines on IRRBB and CSRBB have been fully applicable in the EU since 31 December 2023.

    The monitoring of the practical implementation of IRRBB standards is framed in the EBA monitoring duties, with a view to contributing to a consistent application of EU law and promoting common supervisory approaches and practices in this area.

    The EBA will continue monitoring some specific aspects, following the publication of its IRRBB Heatmap in January 2024.

    MIL OSI Europe News –

  • MIL-OSI Canada: Remarks by the Deputy Prime Minister and Minister of Finance on new action to lower the cost of housing for Canadians

    Source: Government of Canada News (2)

    I’d like to start by talking about the good news on inflation. Inflation was two per cent in October. That means for the past 10 months inflation in Canada has been within the Bank of Canada’s target range.

    MIL OSI Canada News –

  • MIL-OSI Canada: Remarks by the Deputy Prime Minister announcing $1.2 billion for Toronto, enabling purchase of new Line 2 subway cars

    Source: Government of Canada News (2)

    I would like to start by pointing out that we have some good news regarding the economy. Now in October, inflation was at two per cent. For 10 months inflation was within the Bank of Canada’s target range. This is good news for all Canadians, for all the people who live in Toronto. Because of this, it is now possible for interest rates to come down.

    MIL OSI Canada News –

  • MIL-OSI: R3 partners with IDEMIA Secure Transactions to Transform CBDC Payments Both Online and Offline

    Source: GlobeNewswire (MIL-OSI)

    • R3’s Digital Currency platform integrates IDEMIA Secure Transactions’ offline solution to enable secure, seamless CBDC transactions both online and offline, progressing the global digital payments ecosystem.

    LONDON, Feb. 06, 2025 (GLOBE NEWSWIRE) — R3, the financial markets digital solutions provider, has partnered with IDEMIA Secure Transactions (IST), a division of IDEMIA Group and global provider of secure payment and connectivity solutions, to offer offline payment solutions. This partnership marks a significant step forward in the evolution of Central Bank Digital Currencies (CBDCs), offering enhanced access and usability across both online and offline environments.

    R3’s Digital Currency platform is advancing global financial infrastructure by empowering central banks and financial institutions with programmable digital money for wholesale and retail CBDCs, as well as private digital currencies. Built on R3’s Corda—the leading tokenization platform for regulated institutions with 60+ live applications globally—it offers secure, scalable digital money solutions that ensure network sovereignty and interoperability. Users have control over their networks while maintaining the ability to transact seamlessly across others unlocking access to next-generation services.

    IST provides secure, market-leading offline capabilities for CBDCs, and other digital currencies. The solution leverages hardware security, robust offline payment protocols and device-integrated security layers to enable safe and easy offline transactions directly on user devices. IST also offers secure dynamic provisioning solutions, based on its market leading platform, to remotely deploy offline wallets on user smartphones. Integrating IST’s offline solution with R3’s Digital Currency platform enables CBDCs issued on Corda to be held and used in retail offline transactions, providing cash-like capabilities to the CBDC.

    This collaboration provides a unique advancement in online and offline CBDC usage, enabling end-users to make transactions from a range of devices, including phones and smart cards. This initiative enhances financial inclusion, especially for remote areas where there may be limited or no internet capability, strengthening the digital payment system and diversifying payment options. It also enhances financial services resilience whilst introducing new technologies to support further customer product innovation.

    Commenting on the partnership, Kate Karimson, Chief Commercial Officer of R3, said, “As 130 countries actively explore CBDCs, while many others are pursuing alternative forms of tokenized payment solutions, these innovations have the potential to generate huge financial efficiencies for both the wholesale and retail sector by reducing payment fees and accelerating the movement of money. By enabling secure and efficient offline transactions, IDEMIA Secure Transactions and R3 are unlocking access to this promising technology and building products for an open and connected digital future. We’re excited to expand this initiative to other product capabilities soon.”

    Kate Eagle, Head of Growth & Innovation Incubation at IDEMIA Secure Transactions, said, “IDEMIA Secure Transactions is excited to partner with R3 on our offline digital currency solution. Integrating with R3’s Digital Currency platform to enable CBDCs issued on the Corda network to be exchanged offline from a range of devices expands access to digital currencies and streamlines the wallet payment experience. This partnership also introduces technology that enables consecutive offline payments between payers and payees, leveraging secure chip technology for enhanced and uncompromised security. We are proud to be driving financial inclusion and innovation at the forefront of this sector.”

    Media Enquiries

    Eterna Partners

    (+44) 7442 230170

    R3@eternapartners.com

    About R3

    R3 is the leader in digital currency, digital assets and interoperability solutions. R3 supports Central Banks, Corporates and FMIs by providing them with solutions to progress financial markets digitization.

    Corda is an open, permissioned DLT platform powering the tokenization of assets and currencies connecting global markets. Corda enables tokenization with control, security and privacy, providing asset mobility in a permissioned, trusted environment.

    R3 is committed to progressing financial markets and to enabling an open, trusted and advanced digital economy.

    For further information, please visit www.r3.com.

    The MIL Network –

  • MIL-OSI Canada: Remarks by the Deputy Prime Minister on delivering a tax break for all Canadians and cracking down on short-term rentals

    Source: Government of Canada News (2)

    Inflation was two per cent in October. This means that inflation has been within the Bank of Canada’s target range for the past ten months, or the entire year. Notably, interest rates have already declined four times, and Canada was the first G7 country to cut interest rates.

    MIL OSI Canada News –

  • MIL-OSI Canada: Government of Canada announces re-appointment to Canada Infrastructure Bank Board of Directors

    Source: Government of Canada News

    Mr. Guilmette currently serves as Executive Vice President and Chief Financial Officer of Boralex, where he is responsible for several divisions, including Finance and Accounting, Taxation, Investor Relationst and Internal Controls. Prior to this, he served as Interim Chief Investment Officer at the Canada Infrastructure Bank (CIB), and held previous roles as the Senior Vice-President of Infrastructure Investments PSP Investments, and as Senior Director Private Equity Investments at the Caisse de dépôt et placement du Québec.

    MIL OSI Canada News –

  • MIL-OSI Banking: BaFin warns consumers about various websites advertising automated crypto trading bot

    Source: Bundesanstalt für Finanzdienstleistungsaufsicht – In English

    The Federal Financial Supervisory Authority (BaFin) warns consumers about a series of platforms advertising an AI-controlled algorithm for trading in financial instruments and cryptoassets. Specifically, the following providers are under investigation:

    • zivaprofit7.com – ZivaProfit7 Ai
    • velmocoin.com – Velmo Coin AI
    • zolintex.com – Zolintex AI
    • luxigain.com – LuxiGain AI
    • grabcapital4u.com – GrabCapitaL4u Ai
    • tivanafund.com – TivanaFund AI
    • brixogain.com – Brixo Gain AI
    • brixofund.com – BrixoFund AI
    • pamborich.com – Pamborich Ai
    • zonocash.com – Zono Cash AI
    • econarix.com – Econarix AI
    • zorbofund.com – ZorboFund AI
    • gaintomo.com – GAINTOMO AI
    • trovafund.com – TrovaFund AI
    • gliporich.com – GlipoRich AI
    • viznofund.com – ViznoFund AI
    • grivogain.com – GrivoGain AI

    Anyone offering financial or investment services or crypto-asset services in Germany requires a license from BaFin. However, some companies offer such services without the required license. Information on whether a particular company is authorized by BaFin can be found in the company database.

    The information provided by BaFin is based on Section 37 (4) of the German Banking Act (KWG) and Section 10 (7) of the German Crypto Markets Supervision Act (KMAG).

    Please be aware:

    BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.

    MIL OSI Global Banks –

  • MIL-OSI: OP Mortgage Bank: Financial Statements Bulletin for 1 January‒31 December 2024

    Source: GlobeNewswire (MIL-OSI)

    OP Mortgage Bank
    Financial Statements Bulletin
    Stock Exchange Release 6 February 2025 at 10.00 EET

    OP Mortgage Bank: Financial Statements Bulletin for 1 January‒31 December 2024


    OP Mortgage Bank (OP MB) is the covered bond issuing entity of OP Financial Group. Together with OP Corporate Bank plc, its role is to raise funding for OP Financial Group from money and capital markets.

    Financial standing

    The intermediary loans and loan portfolio of OP MB totalled EUR 14,800 million (16,988)* on 31 December 2024. Bonds issued by OP MB totalled EUR 14,800 million (14,915) at the end of December.

    OP MB’s covered bonds after 8 July 2022 are issued under the Euro Medium Term Covered Bond (Premium) programme (EMTCB), pursuant to the Finnish Act on Mortgage Credit Banks and Covered Bonds (151/2022). The collateral is added to the EMTCB cover pool from the member cooperative banks’ balance sheets via the intermediary loan process on the issue date of a new covered bond.

    In January, OP MB issued its first covered bond of the year in the international capital market. The fixed-rate covered bond worth EUR 1 billion has a maturity of seven years and six months. All proceeds of the bond were intermediated to 63 OP cooperative banks in the form of intermediary loans.

    In March, a fixed-rate covered bond worth EUR 1 billion issued by OP MB in March 2017 matured. At the same time, OP cooperative banks’ intermediary loans worth EUR 1 billion related to the bond in question matured.

    In October, OP MB issued its second covered bond of the year in the international capital market. The fixed-rate covered bond worth EUR 1 billion has a maturity of five years. All proceeds of the bond were intermediated to 48 OP cooperative banks in the form of intermediary loans.

    The terms of issue are available on the op.fi website, under Debt investors: https://www.op.fi/en/op-financial-group/debt-investors/issuers/op-mortgage-bank/emtcb-debt-programme-documentation

    In November, OP MB sold a loan portfolio with a nominal value of EUR 1,825 million back to 85 OP cooperative banks. A capital loss of EUR 7.9 million was recognised on the sale in other operating expenses, and at the same time, income of EUR 5.0 million was recognised in net interest income consisting of income of EUR 7.7 million from the unwinding of hedge accounting items and an expense of EUR 2.7 million from the unwinding of loan EIR amortisations. In addition, EUR 4.5 million was recognised as expected credit loss on the sold loans. Net effect on operating profit was EUR 1.7 million. Previously, OP MB has purchased loans from OP cooperative banks as collateral for the bonds. Currently, OP MB operates on an intermediary loan model in which loans are tagged as collateral for bonds directly in OP cooperative banks’ balance sheets.

    Also, a fixed-rate registered bond (Namensschuldverschreibung) worth EUR 115 million issued by OP MB in November 2012 matured in November. Additionally, a fixed-rate covered bond worth EUR 1 billion issued by OP MB in November 2014 matured in November together with OP cooperative banks’ intermediary loans related to the bond worth EUR 1 billion.

    At the end of December, 92 OP cooperative banks had a total of EUR 14,800 million (14,800) in intermediary loans from OP MB.

    Impairment loss on receivables related to loans in OP MB’s balance sheet totalled EUR 2.5 million (-0.3). Loss allowance was EUR 0.0 million (2.6) following the sale of the loan portfolio.

    Operating profit was EUR 4.4 million (9.3). The company’s financial standing remained stable throughout the reporting period.

    * The comparatives for 2023 are given in brackets. For income statement and other aggregated figures, January–December 2023 figures serve as comparatives. For balance-sheet and other cross-sectional figures, figures at the end of the previous financial year (31 December 2023) serve as comparatives.


     Collateralisation of bonds issued to the public

    The European covered bonds (premium) issued under the EMTCB programme worth EUR 25 billion established on 11 October 2022, in accordance with the Act on Mortgage Credit Banks and Covered Bonds (151/2022), totalled EUR 6,250 million. The cover pool included a total of EUR 6,882 million in loans serving as collateral on 31 December 2024. Overcollateralisation exceeded the minimum requirement under the Act (151/2022).

    The covered bonds issued under the Euro Medium Term Covered Note programme worth EUR 20 billion established on 12 November 2010, in accordance with the Act on Mortgage Credit Banks (Laki kiinnitysluottopankkitoiminnasta, 688/2010), totalled EUR 8,550 million. The cover pool included a total of EUR 9,451 million in loans serving as collateral on 31 December 2024. Overcollateralisation exceeded the minimum requirement under the Act (688/2010).

    Capital adequacy

    OP MB’s Common Equity Tier 1 (CET1) ratio stood at 797.0% (41.8) on 31 December 2024. The ratio was improved by the sale of the loan portfolio back to OP cooperative banks and the resulting reduction in capital requirement for credit risk. The minimum CET1 capital requirement is 4.5% and the requirement for the capital conservation buffer is 2.5%. The minimum total capital requirement is 8% (or 10.5% with the increased capital conservation buffer). OP MB fully covers its capital requirements with CET1 capital, which in practice means that it has a CET1 capital requirement of 10.5%. Estimated profit distribution has been subtracted from earnings for the reporting period.

    OP MB uses the Standardised Approach (SA) to measure its capital adequacy requirement for credit risk. The Standardised Approach is also used to measure the capital requirement for operational risks.

    OP MB belongs to OP Financial Group. As part of the Group, OP MB is supervised by the European Central Bank. OP Financial Group presents capital adequacy information in its financial statements bulletins and interim and half-year financial reports in accordance with the Act on the Amalgamation of Deposit Banks. OP Financial Group also publishes Pillar 3 disclosures.

    Own funds and capital adequacy

    TEUR 31.12.2024 31.12.2023
    Equity capital 368,122 372,160
    Common Equity Tier 1 (CET1) before deductions 368,122 372,160
    Excess funding of pension liability   -13
    Proposed profit distribution -3,466  
    Share of unaudited profits   -7,490
    Insufficient coverage for non-performing exposures   -2,856
    CET1 capital 364,656 361,800
         
    Tier 1 capital (T1) 364,656 361,800
         
    Tier 2 capital (T2)    
    Total own funds 364,656 361,800

    Total risk exposure amount

    TEUR 31.12.2024 31.12.2023
    Credit and counterparty risk 18,581 812,205
    Operational risk (Standardised Approach) 26,636 25,140
    Other risks* 538 27,336
    Total risk exposure amount 45,755 864,682

    * Risks not otherwise covered.

    Ratios

    Ratios, % 31.12.2024 31.12.2023
    CET1 capital ratio 797.0 41.8
    Tier 1 capital ratio 797.0 41.8
    Capital adequacy ratio 797.0 41.8

    Capital requirement

    Capital requirement, TEUR 31.12.2024 31.12.2023
    Own funds 364,656 361,800
    Capital requirement 4,804 90,829
    Buffer for capital requirements 359,852 270,971

    Liabilities under the Resolution Act

    Under regulation applied to the resolution of credit institutions and investment firms, the resolution authority is authorised to intervene in the terms and conditions of investment products issued by a bank in a way that affects an investor’s position. The EU’s Single Resolution Board (SRB) based in Brussels is OP Financial Group’s resolution authority. The SRB has confirmed a resolution strategy for OP Financial Group whereby the resolution measures would focus on the OP amalgamation and on the new OP Corporate Bank that would be formed in case of resolution. According to the resolution strategy, OP Mortgage Bank would continue its operations as the new OP Corporate Bank’s subsidiary.

    The SRB has set a Minimum Requirement for Own Funds and Eligible Liabilities (MREL) for OP MB. From May 2024, the MREL is 16% of the total risk exposure amount and 18.5% of the total risk exposure amount including a combined buffer requirement, and 6% of leverage ratio exposures. The requirement entered into force on 15 May 2024. The requirement includes a Combined Buffer Requirement (CBR) of 2.5%.

    OP MB’s buffer for the MREL requirement was EUR 356 million. The buffer consists of own funds only. OP MB clearly exceeds the MREL requirement. OP MB’s MREL ratio was 797% of the total risk exposure amount.


    Joint and several liability of amalgamation

    Under the Act on the Amalgamation of Deposit Banks (599/2010), the amalgamation of cooperative banks comprises the organisation’s central cooperative (OP Cooperative), the central cooperative’s member credit institutions and the companies belonging to their consolidation groups, as well as credit and financial institutions and service companies in which the above together hold more than half of the total votes. This amalgamation is supervised on a consolidated basis. On 31 December 2024, OP Cooperative’s member credit institutions comprised 93 OP cooperative banks, OP Corporate Bank plc, OP Mortgage Bank and OP Retail Customers plc.

    The central cooperative is responsible for issuing instructions to its member credit institutions concerning their internal control and risk management, their procedures for securing liquidity and capital adequacy, and for compliance with harmonised accounting policies in the preparation of the amalgamation’s consolidated financial statements.

    As a support measure referred to in the Act on the Amalgamation of Deposit Banks, the central cooperative is liable to pay any of its member credit institutions the amount necessary to preventing the credit institution from being placed in liquidation. The central cooperative is also liable for the debts of a member credit institution which cannot be paid using the member credit institution’s assets.

    Each member bank is liable to pay a proportion of the amount which the central cooperative has paid to either another member bank as a support measure or to a creditor of such a member bank in payment of an overdue amount which the creditor has not received from the member bank. Furthermore, if the central cooperative defaults, a member bank has unlimited refinancing liability for the central cooperative’s debts as referred to in the Co-operatives Act.

    Each member bank’s liability for the amount the central cooperative has paid to the creditor on behalf of a member bank is divided between the member banks in proportion to their last adopted balance sheets. OP Financial Group’s insurance companies do not fall within the scope of joint and several liability.

    According to section 25 of the Act on Mortgage Credit Banks (688/2010), which was valid at that time, the creditors of covered bonds issued prior to 8 July 2022 have the right to receive payment, before other claims, for the entire term of the bond, in accordance with the terms and conditions of the bond, out of the funds entered as collateral, without this being prevented by OP MB’s liquidation or bankruptcy. A similar and equal priority also applies to derivative contracts entered in the register of bonds, and to marginal lending facilities referred to in section 26, subsection 4 of said Act. For mortgage-backed loans issued prior to 8 July 2022 and included in the total amount of collateral of covered bonds, the priority of the covered bond holders’ payment right is limited to the amount of loan that, with respect to home loans, corresponds to 70% of the value of shares or property serving as security for the loan and entered in the bond register at the time of the issuer’s liquidation or bankruptcy declaration.

    Under section 20 of the Act on Mortgage Credit Banks and Covered Bonds (151/2022), which entered into force on 8 July 2022, the creditors of bonds issued after 8 July 2022, including the related management and clearing costs, have the right to receive payment from the collateral included in the cover pool, before other creditors of OP MB or the OP cooperative bank which is the debtor of an intermediary loan. A similar priority also applies to creditors of derivative contracts related to covered bonds, including the related management and clearing costs. Interest and yield accruing on the collateral, and any substitute assets, fall within the scope of said priority. Section 44, subsection 3 of the Act on Mortgage Credit Banks and Covered Bonds includes provisions on the creditor’s priority claim regarding cover pool liquidity support. According to said subsection, the creditor has the right to receive payment against the funds contained in the cover pool after claims based on the principal and interest of covered bonds secured by the cover assets included in the cover pool, obligations based on derivatives contracts associated with covered bonds, as well as administration and liquidation costs.


    Sustainability and corporate responsibility

    As of the reporting year 2024, OP Financial Group reports on its sustainability and corporate responsibility in accordance with the European Sustainability Reporting Standards (ESRS) under the EU’s Corporate Sustainability Reporting Directive (CSRD). OP Financial Group’s Report by the Board of Directors and Financial Statements 2024, including CSRD reporting, will be published in March 2025.

    Responsible business is one of OP Financial Group’s strategic priorities. OP Financial Group’s sustainability programme guides the Group’s actions and is built around three themes: Climate and the environment, People and communities, Corporate governance. Read more about the sustainability programme at www.op.fi/en/op-financial-group/corporate-social-responsibility/corporate-social-responsibility-programme

    At OP Financial Group, sustainability and corporate responsibility are guided by a number of principles and policies. OP Financial Group is committed to complying not only with all applicable laws and regulations, but also with a number of international initiatives. The Group is committed to complying with the ten principles of the UN Global Compact initiative in the areas of human rights, labour rights, the environment and anti-corruption. OP Financial Group is a Founding Signatory of the Principles for Responsible Banking under the United Nations Environment Programme Finance Initiative (UNEP FI). Furthermore, OP Financial Group is committed to complying with the UN Principles for Responsible Investment and the UN Principles for Sustainable Insurance.

    OP Financial Group’s biodiversity roadmap includes measures to promote biodiversity. OP Financial Group aims to grow its nature positive handprint by 2030. ‘Nature positive’ means that OP Financial Group’s operations will have a net positive impact (NPI) on nature.

    OP Financial Group has drawn up a Human Rights Statement and Human Rights Policy. The Group respects all recognised human rights. The Human Rights Statement includes the requirements and expectations that OP Financial Group has set for itself and actors in its value chains. OP Financial Group is committed to perform remediation actions if its operations have adverse human rights impacts.

    In March 2024, OP MB published a Green Covered Bond Report on the allocation and impacts of Finland’s first green covered bonds issued in March 2021 and April 2022. Under OP MB’s Green Covered Bond Framework, the proceeds from the bonds have been allocated to mortgages with energy-efficient residential buildings as collateral.

    The environmental impacts allocated to the green covered bonds in 2023 were 59,000 MWh of energy use avoided per year and 8,800 tonnes of CO2-equivalent emissions avoided per year.


    Personnel

    At the end of the reporting period, OP MB had six employees. OP MB has been digitising its operations and purchases all key support services from OP Cooperative and its subsidiaries, reducing the need for its own personnel.


     Governing body members

    The Board composition is as follows:

    Chair Mikko Timonen Chief Financial Officer, OP Cooperative
    Members Satu Nurmi Business Lead, SME Financing,
    OP Retail Customers plc
      Mari Heikkilä Head of Group Treasury & ALM,
    OP Corporate Bank plc

    OP MB’s Managing Director is Sanna Eriksson. The Deputy Managing Director is Tuomas Ruotsalainen, Senior Covered Bonds Manager at OP MB.


    Risk profile

    OP MB has a strong capital base, capital buffers and risk-bearing capacity.

    OP MB’s most significant risks are related to the quality of collateral and to structural liquidity and interest rate risks on the balance sheet, for which limits have been set in the Banking Risk Policy. The key credit risk indicators in use show that OP MB’s credit risk exposure is stable. OP MB has used interest rate swaps to hedge against its interest rate risk. Interest rate swaps have been used to swap home loan interest, intermediary loan interest and interest on issued bonds onto the same basis rate. OP MB has concluded all derivative contracts for hedging purposes, applying fair value hedges which have OP Corporate Bank plc as their counterparty. OP MB’s interest risk exposure is under control and has been within the set limit.

    The liquidity buffer for OP Financial Group is centrally managed by OP Corporate Bank and therefore exploitable by OP MB. At the end of the reporting period, OP Financial Group’s Liquidity Coverage Ratio (LCR) was 193% and the Net Stable Funding Ratio (NSFR) was 129%. OP MB monitors its cash flows on a daily basis to secure funding liquidity and its structural funding risk on a regular basis as part of the company’s internal capital adequacy assessment process (ICAAP).

    An analysis of OP MB’s risk exposure should always take account of OP Financial Group’s risk exposure, which is based on the joint and several liability of all its member credit institutions. The member credit institutions are jointly liable for each other’s debts. All member banks must participate in support measures, as referred to in the Act on the Amalgamation of Deposit Banks, to support each other’s capital adequacy.

    OP Financial Group analyses the business environment as part of its ongoing risk assessment activities and strategy process. Megatrends and worldviews behind OP Financial Group’s strategy reflect driving forces that affect the daily activities, conditions and future of the Group and its customers. Factors currently shaping the business environment include climate, biodiversity loss, scientific and technological innovations, polarisation, demography and geopolitics. External business environment factors are considered thoroughly, so that their effects on customers’ future success are understood. OP Financial Group provides advice and makes business decisions that promote the sustainable financial success, security and wellbeing of its owner-customers and operating region while managing the Group’s risk profile on a longer-term basis. Advice for customers, risk-based service sizing, contract lifecycle management, decision-making, management and reporting are based on correct and comprehensive information.


    Outlook

    Finland’s economy contracted in 2024. However, the economy began to recover as the year progressed and preliminary figures suggest that GDP grew in the second half compared to the same period in 2023. Slower inflation and lower interest rates provide a basis for the recovery to continue. Risks associated with the economic outlook are still higher than usual. The escalation of geopolitical crises or a rise in trade barriers may affect capital markets and the economic environment.

    OP MB’s capital adequacy is expected to remain strong and its risk exposure favourable. This enables the issuance of covered bonds in the future.

    Schedule for financial reports for 2024

    Report by the Board of Directors and Financial Statements 2024 Week 11, 2025
    Corporate Governance Statement 2024 Week 11, 2025

    Schedule for Interim Reports and Half-Year Financial Report in 2025

    Interim Report 1 January–31 March 2025 7.5.2025
    Half-year Financial Report 1 January–30 June 2025 30.7.2025
    Interim Report 1 January–30 September 2025 28.10.2025

    Helsinki, 6 February 2025

    OP Mortgage Bank

    Board of Directors

    Additional information:

    Sanna Eriksson, Managing Director, tel. +358 10 252 2517

    DISTRIBUTION
    LSE London Stock Exchange
    Euronext Dublin (Irish Stock Exchange)
    OAM (Officially Appointed Mechanism)
    Major media
    www.op.fi

    The MIL Network –

  • MIL-OSI Economics: RBI cancels the licence granted to The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore, Tamil Nadu and allows it to function as non-banking institution

    Source: Reserve Bank of India

    Reserve Bank of India (RBI) is satisfied to notify The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore – 607001, Tamil Nadu as a non-banking institution under Section 36A(2) read with Section 56 of the Banking Regulation Act, 1949. Consequently, RBI has cancelled the licence dated March 21, 2000, granted to The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore – 607001, Tamil Nadu to carry on banking business in India under Section 22 read with Section 56 of the Banking Regulation Act,1949, with effect from the close of business on February 6, 2025. This makes it obligatory on the part of The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore – 607001, Tamil Nadu to stop conducting the business of ‘banking’ within the meaning of section 5(b) read with Section 56 of the Act ibid, including acceptance of deposits from non-members with immediate effect. Further, The Cuddalore and Villupuram District Central Co-operative Bank’s Employees Cooperative Bank Ltd., Cuddalore – 607001, Tamil Nadu shall ensure to repay unpaid and unclaimed deposits of non-members held by it, whenever demanded, even after being notified as a non-banking institution.

    (Puneet Pancholy)  
    Chief General Manager

    Press Release: 2024-2025/2087

    MIL OSI Economics –

  • MIL-OSI: Teniz Capital to Lead Second Phase of Black Sea Trade and Development Bank Bond Placement on the Astana International Exchange

    Source: GlobeNewswire (MIL-OSI)

    Almaty, Kazakhstan, 6 February 2025 – Teniz Capital Investment Banking, a leading investment bank in Central Asia and the Middle East, will lead the second phase of bond placement for multilateral financial institution Black Sea Trade and Development Bank (BSTDB) on the Astana International Exchange (AIX).

    This follows a first tranche of 100 million USD, completed in 2024, in which Teniz Capital facilitated the transaction. 

    The second tranche will be directed to supporting BSTDB’s funding capacity and enhance investor participation in Central Asian markets.
     
    “Our objective is to open financial opportunities in the Caspian and Central Asia to Western investors. This second placement, which we expect will be closed quite soon, is a clear indicator of market interest in the region, and in its future economic growth,” the management committee of the entity said. 
     
    Founded in 1999, the BSTDB is an international financial institution based in Thessaloniki, Greece. The institution was created to accelerate regional development through financial instruments such as bond issuances. It has 11 member states, including Greece, Russia, Turkey, and Ukraine.
     
    Teniz Capital employs 50 professionals, with its main headquarters in Almaty and additional offices in Astana’s International Finance Centre and Abu Dhabi.
     
    In 2023, Teniz Capital completed 13 bond transactions across in AIX as well the Kazakhstan Stock Exchange. These transactions included JSC AIFN Retam, Capitalleasing Group Ltd., Jet Group Ltd., Kisamos Shipping DMCC, several placements of Kazakhstan’s sovereign bonds, and underwriting complex, high-value transactions.
     
    Last year, on 29 August, the company announced the expansion of its operations with the launch of a sister company, Teniz Capital Brokerage Ltd.

    For further information, members of the media can contact teniz@definition.city

    This press release contains statements regarding the future of the company and its innovations. Statements regarding the future may be accompanied by words such as “anticipate”, “believe”, “estimate”, “will”, “anticipate”, “pretend”, “power”, “plan”, “potential”, the use of future time and other terms of similar meaning. No undue reliance should be placed on these claims. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including uncertainty of the company’s commercial success, ability to protect our intellectual property rights, and other risks. These statements are based on current beliefs and forecasts and refer only to the date of this press release. The company assumes no obligation to publicly update its forward-looking statements, regardless of whether new information, future events or any other circumstance arise.

    The MIL Network –

  • MIL-OSI: OP Corporate Bank plc’s Financial Statements Bulletin 1 January–31 December 2024

    Source: GlobeNewswire (MIL-OSI)

    OP Corporate Bank plc
    Financial Statements Bulletin
    Stock Exchange Release 6 February 2025 at 9.00 am EET

    OP Corporate Bank plc’s Financial Statements Bulletin 1 January–31 December 2024

    • OP Corporate Bank plc’s operating profit rose to EUR 473 million (329).
    • Total expenses grew by 5% to EUR 773 million (738). Net interest income grew by 8% to EUR 631 million (582). Investment income fell by 35% to EUR 34 million (52). Net commissions and fees grew by 3% to EUR 75 million (73).
    • Impairment loss on receivables decreased to EUR 1 million (96).
    • Total operating expenses decreased by 5% to EUR 298 million (313). The cost/income ratio improved to 39% (42).
    • The loan portfolio grew by 0.8% to EUR 28.3 billion (28.1) year on year. The deposit portfolio increased by 17.3% year on year, to EUR 17.2 billion (14.6).
    • The Corporate Banking and Capital Markets segment’s operating profit increased to EUR 307 million (198). Net interest income grew by 21% to EUR 381 million (316). Net commissions and fees increased to EUR 6 million (3). Investment income fell by 41% to EUR 29 million (49). Operating expenses decreased by 8% to EUR 120 million (131). Impairment loss on receivables reversed came to EUR 6 million. A year ago, impairment loss on receivables totalled EUR 44 million. The cost/income ratio improved to 28% (35).
    • The Asset and Sales Finance Services and Payment Transfers segment’s operating profit increased to EUR 167 million (126). Net interest income grew by 4% to EUR 216 million (207). Net commissions and fees totalled EUR 61 million (64). Operating expenses totalled EUR 119 million (122). Impairment loss on receivables decreased to EUR 9 million (37). The cost/income ratio improved to 40% (43).
    • The Baltics segment’s operating profit rose to EUR 39 million (27). Net interest income decreased to EUR 59 million (67). Net commissions and fees totalled EUR 11 million (10). Operating expenses remained at the previous year’s level at EUR 35 million (35). Impairment loss on receivables reversed came to EUR 3 million. A year ago, impairment loss on receivables totalled EUR 15 million. The cost/income ratio weakened to 49% (45).
    • The Group Functions segment’s operating loss was EUR 40 million. A year ago, the operating loss amounted to EUR 22 million. Funding position and liquidity remained strong.
    • OP Corporate Bank plc’s CET1 ratio rose to 14.1% (13.0), which exceeds the minimum regulatory requirement by 5.4 percentage points.

    OP Corporate Bank plc’s key indicators

    € million Q1–4/2024 Q1–4/2023 Change, %
    Operating profit (loss), € million 473 329 43.8
    Corporate Banking and Capital Markets 307 198 55.2
    Asset and Sales Finance Services and Payment Transfers 167 126 33.1
    Baltics 39 27 43.5
    Group Functions -40 -22 —
    Total income 773 738 4.7
    Total expenses -298 -313 -4.6
    Cost/income ratio, % 38.6 42.4 -3.8*
    Return on equity (ROE), % 7.9 5.9 2.0*
    Return on assets (ROA), % 0.48 0.30 0.19*
      31 Dec 2024 31 Dec 2023 Change, %
    CET1 ratio, % 14.1 13.0 1.1*
    Loan portfolio, € million 28,295 28,076 0.8
    Guarantee portfolio, € million 2,660 3,184 -16.5
    Other exposures, € million 5,238 5,745 -8.8
    Deposits, € million 17,155 14,629 17.3
    Ratio of non-performing exposures to exposures, % 1.8 2.2 -0.5*
    Ratio of impairment loss on receivables to loan and guarantee portfolio, % 0.00 0.31 -0.30*

    Comparatives for the income statement items are based on the corresponding figures in 2023. Unless otherwise specified, figures from 31 December 2023 are used as comparatives for balance-sheet and other cross-sectional items.
    * Change in ratio, percentage point(s).

    Outlook

    Finland’s economy contracted in 2024. However, the economy began to recover as the year progressed and preliminary figures suggest that GDP grew in the second half compared to the same period in 2023. Slower inflation and lower interest rates provide a basis for the recovery to continue. Risks associated with the economic outlook are still higher than usual. The escalation of geopolitical crises or a rise in trade barriers may affect capital markets and the economic environment. 

     A full-year earnings estimate for 2025 will only be provided at Group level, in OP Financial Group’s financial statements bulletin and in its interim and half-year financial reports.

     The most significant uncertainties affecting OP Corporate Bank’s earnings performance relate to developments in the business environment, changes in the interest rate and investment environment, and developments in impairment loss on receivables. In addition, future earnings performance will be affected by the market growth rate and the change in the competitive situation.

     Forward-looking statements in these financial statements bulletin expressing the management’s expectations, beliefs, estimates, forecasts, projections and assumptions are based on the current view of developments in the business environment and the financial performance of OP Corporate Bank plc and its various functions, and actual results may differ materially from those expressed in the forward-looking statements.

    Time of publication of 2024 reports:

    OP Corporate Bank’s Report by the Board of Directors and Financial Statements for 2024 Week 11
    OP Corporate Bank’s Corporate Governance Statement 2024 Week 11

    Schedule for Interim Reports and Half-year Financial Report in 2025: 

    Interim Report Q1/2025 7 May 2025
    Half-year Financial Report H1/2025 30 July 2025
    Interim Report Q1−3/2025 28 October 2025

    Helsinki, 6 February 2025

     OP Corporate Bank plc
    Board of Directors

    For additional information, please contact
    Katja Keitaanniemi, Chief Executive Officer, tel. +358 (0)10 252 1387
    Piia Kumpulainen, Chief Communications Officer, tel. +358 10 252 7317

    DISTRIBUTION
    Nasdaq Helsinki Oy
    Euronext Dublin (Irish Stock Exchange)
    LSE London Stock Exchange
    Major media
    op.fi

    OP Corporate Bank plc is part of OP Financial Group. OP Corporate Bank and OP Mortgage Bank are responsible for OP’s funding in money and capital markets. As laid down in the applicable law, OP Corporate Bank, OP Mortgage Bank and their parent company OP Cooperative and other OP Financial Group member credit institutions are ultimately jointly and severally liable for each other’s debts and commitments. OP Corporate Bank acts as OP Financial Group’s central bank.

    The MIL Network –

  • MIL-OSI: OP Financial Group’s Financial Statements Bulletin 1 January–31 December 2024: Excellent business performance continued – full-year operating profit EUR 2,486 million

    Source: GlobeNewswire (MIL-OSI)

    OP Financial Group
    Financial Statements Bulletin
    Stock Exchange Release 6 February 2025 9.00 am EET

    Financial Statements Bulletin 1 January–31 December 2024: Excellent business performance continued – full-year operating profit EUR 2,486 million 

    • Operating profit increased by 21% to EUR 2,486 million (2,050).

    • Income from customer business, or net interest income, insurance service result and net commissions and fees, increased to EUR 3,805 million (3,605). Net interest income grew by 5% to EUR 2,796 million (2,654). Insurance service result increased by 136% to EUR 192 million (81) and net commissions and fees decreased by 6% to EUR 818 million (870).

    • Impairment loss on receivables was EUR 96 million (269), or 0.09% (0.26) of the loan and guarantee portfolio.

    • Investment income increased by 20% to EUR 465 million (389).

    • Total expenses grew by 3% to EUR 2,262 million (2,201). The cost/income ratio improved to 47% (49).

    • The loan portfolio was at the previous year’s level at EUR 98.9 billion (98.9), while deposits grew by 4% year on year to EUR 77.7 billion (74.5).

    • The CET1 ratio was 21.5% (19.2), which exceeds the minimum regulatory requirement by 8.1 percentage points. The changes in the EU Capital Requirements Regulation (CRR3), which took effect on 1 January 2025, are expected to cause a slight reduction in the capital adequacy of OP Financial Group.

    • Retail Banking segment’s operating profit rose by 4% to EUR 1,275 million (1,223). Net interest income grew by 3% to EUR 2,112 million (2,041). Impairment loss on receivables decreased by EUR 78 million to EUR 95 million (173). Net commissions and fees decreased by 10% to EUR 619 million (686). The cost/income ratio was 51% (49). The loan portfolio decreased by 0.3% year on year, to EUR 70.7 billion (70.9). Deposits increased by 3% to EUR 62.9 billion (61.2).

    • Corporate Banking segment’s operating profit grew by 40% to EUR 572 million (408). Net interest income grew by 11% to EUR 657 million (591). Impairment loss on receivables decreased by EUR 96 million to EUR 0 million (96). Net commissions and fees increased by 4% to EUR 199 million (192). The cost/income ratio improved to 38% (41). In the year to December, the loan portfolio grew by 1% to EUR 28.3 billion (28.1). Deposits increased by 12% to EUR 15.4 billion (13.8).

    • Insurance segment’s operating profit grew by 39% to EUR 578 million (414). The insurance service result increased by EUR 110 million to EUR 192 million (81). Investment income increased by 10% to EUR 382 million (347). The combined ratio reported by non-life insurance improved to 92.3% (93.8).

    • Group Functions operating profit was EUR 19 million (-26). Net interest income increased by EUR 15 million to EUR 16 million (1).

    • OP Financial Group increased the OP bonuses to be earned by owner-customers for 2024 by 40% compared to the normal level of 2022. Additionally, owner-customers got daily banking services without monthly charges in 2024. Together, these benefits were estimated to add up to more than EUR 404 million in value for owner-customers in 2024. The benefits will be in force until the end of 2025.

    • Outlook: OP Financial Group’s operating profit for 2025 is expected to be at a good level but lower than that for 2023 and 2024. For more detailed information on the outlook, see “Outlook”.

    OP Financial Group’s key indicators

    € million Q1–4/2024 Q1–4/2023 Change, %
    Operating profit, € million         2,486         2,050         21.3
    Retail Banking         1,275         1,223         4.3
    Corporate Banking         572         408         40.4
    Insurance         578         414         39.4
    Group Functions         19         -26 –
    New OP bonuses accrued to owner-customers, € million         -314         -275         14.1
    Total income**         4,844         4,520         7.2
    Total expenses         -2,262         -2,201         2.8
    Cost/income ratio, %**         46.7         48.7 -2.0*
    Return on equity (ROE), %         11.6         10.6 0.9*
    Return on equity, excluding OP bonuses, %         13.0         12.0 1.0*
    Return on assets (ROA), %         1.24         0.98 0.26*
    Return on assets, excluding OP bonuses, %         1.39         1.11 0.28*
      31 Dec 2024 31 Dec 2023 Change, %
    CET1 ratio, %*         21.5         19.2 2.3*
    Loan portfolio, € billion         98.9         98.9         0.0
    Deposits, € billion         77.7         74.5         4.3
    Ratio of non-performing exposures to exposures, %         2.64         2.94 -0.30*
    Ratio of impairment loss on receivables to loan and guarantee portfolio, %         0.09         0.26 -0.17*
    Owner-customers (1,000) 2,115 2,094         1.0

    Comparatives for the income statement items are based on the corresponding figures in 2023. Unless otherwise specified, figures from 31 December 2023 are used as comparatives for balance-sheet and other cross-sectional items.
    * Change in ratio, percentage point(s).
    ** OP bonuses to owner-customers, which were previously shown on a separate line in the income statement, have been divided under the following items based on their accrual: interest income, interest expenses, and commission income from mutual funds. The line ‘OP bonuses to owner-customers’ is no longer shown in the income statement. Comparative information has been adjusted accordingly. For more detailed information on the change, see Note 1 to the Half-year Financial Report 1 January–30 June 2024, Accounting policies and changes in accounting policies and presentation.

    Comments by the President and Group Chief Executive Officer:

    Uncertainty overshadowed the business environment – Finland’s economy began to recover as the year ended

    In 2024, the exceptionally tense geopolitical situation of previous years continued to predominate in Finland’s neighbouring regions. Russia’s war of aggression against Ukraine approached its third year and the Middle East conflict spilled over into new areas. A tectonic shift is underway in international politics and the global economy, creating uncertainty in the economy and our broader business environment.

    Although the world economy grew by 3% last year, Europe’s grew by just over 1%. Finland’s economy contracted for the second year running. However, the economy began to recover gradually as the year ended and OP Financial Group expects Finland’s GDP to grow by a couple of per cent in 2025.

    Construction and the related sectors were particularly affected by the sluggish economy. Risks in the real estate sector remained high and the number of bankruptcies increased substantially on the previous year.

    Inflation in Finland fell markedly, from 3.6% to 0.7%, on the year before. On the other hand, unemployment rose, reaching 8.9% in December. Market interest rates fell almost continuously from early 2024 and the Euribor rates were clearly lower by the year’s end.

    Despite the pickup in late 2024, home sale volumes and demand for home loans fell considerably year on year. Home prices continued their downward trend.

    The fall in market rates boosted the stock markets, raising share prices on several stock exchanges. However, Nasdaq Helsinki’s stock indices ended 2024 in slightly negative territory for the year as a whole.

    OP Financial Group had an excellent year – strong earnings enable outstanding benefits for owner-customers

    OP Financial Group performed extremely well and operating profit increased by 21% year on year, to EUR 2,486 million in 2024.

    Our excellent earnings will enable us to continue providing our over 2.1 million owner-customers with considerable benefits in 2025. As in 2024, our owner-customers will get daily banking services without monthly charges and accrue 40% extra OP bonuses compared to the normal level of 2022. This is how we will help to ease the strain on households in these economically challenging times. The total value of higher benefits on OP bonuses and daily services will be around EUR 400 million in 2025, which is a significant overall financial benefit.

    Being customer-owned, OP Financial Group will continue to share its financial success through a range of financial and other benefits for its owner-customers.

    Income from OP Financial Group’s customer business grew to a record level of more than EUR 3.8 billion. The improvement in the insurance service result was particularly strong, being 136% higher than a year earlier. Growth in net interest income slowed to 5% and net commissions and fees decreased by 6% year on year, chiefly due to the benefit (provided for owner-customers) of zero monthly charges for daily banking services. Income from investment activities grew considerably from 2023’s level and OP Financial Group’s total income reached over EUR 4.8 billion – 7% higher than a year earlier.

    OP Financial Group’s costs grew by 3% year on year, due to rising personnel costs and higher investments in ICT development. Compared to the previous year, its cost/income ratio improved by two percentage points to 47%, an excellent level even in international terms.

    All three business segments performed extremely well

    All three business segments performed extremely well. The Retail Banking segment’s operating profit rose by 4% year on year, to EUR 1,275 million. Insurance recorded an operating profit of EUR 578 million, growing by 39% compared to a year ago. Corporate Banking’s operating profit was EUR 572 million, up by 40% over the previous year.

    Strong capital adequacy and excellent liquidity provide security and stability in an uncertain business environment

    OP Financial Group’s CET1 ratio improved again, to 21.5%, exceeding the minimum regulatory requirement by 8.1 percentage points. OP Financial Group is one of the most financially solid large banks in Europe. Excellent profitability, strong capital adequacy and liquidity are critical factors for banks and insurance companies, building trust among customers, partners and other stakeholders. In OP Financial Group, these factors are at an excellent level, providing the Group with an even stronger basis than before for meeting future challenges.

    Deposits grew substantially and the loan portfolio stopped shrinking – customers’ loan repayment capacity remained good

    OP Financial Group’s deposit portfolio grew by more than 4% from 2023. Household, corporate and institutional deposits were on an upward trend at the end of the year. OP Financial Group’s market share of deposits rose to over 40%.

    By late 2024, OP Financial Group’s loan portfolio had reached the same level as at the end of 2023. After a long decline, the loan portfolio began to grow again in the early autumn. OP Financial Group maintained its strong market position in the home loan and corporate loan markets. Our market share of home loans was 39%. For corporate loans, we had a market share of 38%.

    OP Financial Group’s home loan customers made home loan repayments punctually and meticulously in 2024. The situation was eased by the fall in market rates. The number of loan modification applications was lower than in recent years. The number of corporate loans under special monitoring declined in comparison to last year. Non-performing exposures decreased from 2.9% to 2.6%. Impairment loss on receivables decreased markedly year on year.

    Wealth management continued to grow rapidly throughout the year

    We aim to coach our customers in making better financial choices. Wealth management is one of our growth focus areas – we intend to make a clear growth leap in this business in the coming years.

    The number of OP Financial Group unitholders rose to over 1.4 million. Moreover, the number of new systematic investment agreements increased by a third. Mutual fund investors were particularly attracted by international and sustainability-themed investment opportunities. Sustainability is a priority for younger investors in particular. At EUR 111 billion in value at the year’s end, customers’ investment assets managed by OP Financial Group grew by 8%.

    OP-mobile was used more than 700 million times – use of artificial intelligence is growing fast

    OP Financial Group’s use of digital services grew substantially again. Personal and corporate customers increasingly use digital channels for banking and insurance. Last year, customers logged in to OP-mobile around 708 million times – an average of 59 million times per month. OP-mobile already has more than 1.7 million active users.

    We moved, with increasing speed, into using artificial intelligence to ease our customers’ daily lives and help our employees in their work.

    In June, we launched OP Aina, a personal assistant on OP-mobile. OP Aina helps our customers with a range of banking and insurance matters on a 24/7 basis. It is the first financial service in Finland to use artificial intelligence and alerts. Our customers have eagerly adopted the service, which already had around 6.25 million service interactions by the end of 2024. We use it to provide customers with even more personalised and readily available services than before.

    Cybersecurity and well-functioning digital services are at the core of our operations

    OP Financial Group’s digital services functioned extremely well all year, despite the rapidly growing number of denial of service attacks.

    We continued our significant investments in cybersecurity to ensure that our customers’ money and data remain secure under all circumstances. Our customers were subjected to a high number of phishing and scam attempts throughout the year, and we have taken active measures to protect them even more effectively from such threats.

    OP Financial Group fulfils its corporate responsibilities as one of Finland’s largest corporate taxpayers

    OP Financial Group is of major direct and indirect importance to Finland’s economic development. In accordance with our mission, we aim to create sustainable prosperity, security and wellbeing for our owner-customers and operating region.

    Being one of Finland’s largest payers of corporate tax, we contributed almost EUR 400 million for 2023 – over 5% of all corporate tax paid in the period.

    We want to point the way towards futures filled with hope for people living in Finland. The success of Finland and all those who live here is our number one priority now and in the future.

    In good shape going into 2025

    OP Financial Group is in great shape to support its customers as the Finnish economy slowly recovers. We provide competitive banking and insurance services for a range of needs.

    My warm thanks to all our customers for the trust you have shown in OP Financial Group in 2024. We want to continue being worthy of your trust in the year that has just begun. I would also like to thank our employees and governing bodies for the excellent work they did last year.

    Timo Ritakallio
    President and Group CEO

    January–December

    OP Financial Group’s operating profit was EUR 2,486 million (2,050), up by 21.3% or EUR 436 million year on year. Income from customer business (net interest income, net commissions and fees and the insurance service result) increased by a total of 5.6% to EUR 3,805 million (3,605). The cost/income ratio improved to 46.7% (48.7). New OP bonuses accrued to owner-customers, which are included in earnings, increased by 14.0% to EUR 307 million.

    Net interest income grew by 5.3% to EUR 2,796 million. Net interest income reported by the Retail Banking segment increased by 3.5% to EUR 2,112 million and that by the Corporate Banking segment increased by 11.3% to EUR 657 million. OP Financial Group’s loan portfolio was at the previous year’s level at EUR 98.9 billion, while deposits grew by 4.3% year on year, to EUR 77.7 billion. Household deposits increased by 2.8% year on year, to EUR 47.8 billion. New loans drawn down by customers during the reporting period totalled EUR 22.2 billion (22.0).

    Impairment loss on loans and receivables, which reduces earnings, totalled EUR 96 million (269). A year ago, expected credit losses concerning the real estate and construction sector increased the impairment loss on receivables. Final credit losses totalled EUR 200 million (77). In 2024, OP Financial Group enhanced the recognition process for final credit losses. After a loan has been transferred for legal collection, the loan principal is written down to the value of collateral. During the fourth quarter, a total of EUR 125 million of such credit losses were recognised. Correspondingly, stage 3 expected credit losses reversed totalled EUR 93 million. At the end of the reporting period, loss allowance was EUR 824 million (929), of which management overlay accounted for EUR 77 million (109). Non-performing exposures accounted for 2.6% (2.9) of total exposures. Impairment loss on loans and receivables accounted for 0.1% (0.3) of the loan and guarantee portfolio.

    Net commissions and fees decreased by 6.0% to EUR 818 million. Owner-customers have received daily banking services without monthly charges since October 2023. This contributed to the decrease in payment transfer net commissions and fees. Net commissions and fees for payment transfer services decreased by EUR 56 million to

    EUR 291 million, and those for residential brokerage by EUR 6 million to EUR 63 million.

    Insurance service result increased by EUR 110 million to EUR 192 million. Insurance service result includes EUR 529 million (485) in operating expenses. Non-life insurance net insurance revenue, including the reinsurer’s share, grew by 6.1% to EUR 1,760 million. Net claims incurred after the reinsurer’s share grew by 4.4% to EUR 1,116 million. The combined ratio reported by non-life insurance improved to 92.3% (93.8).

    Investment income (net investment income, net insurance finance expenses and income from financial assets held for trading) increased by a total of 19.5% to EUR 465 million. Investment income grew as a result of the increase in the value of equity investments in particular. Net investment income together with net finance income describe investment profitability in the insurance business. The combined return on investments at fair value of OP Financial Group’s insurance companies was 7.6% (3.4).

    Net income from financial assets recognised at fair value through profit or loss, or notes and bonds, shares and derivatives, totalled EUR 1,975 million (1,706). Net income from investment contract liabilities totalled EUR 851 million (642). Net insurance finance expenses totalled EUR 727 million (722).

    In banking, net income from financial assets held for trading decreased by 19.1% to EUR 44 million due to the decrease in interest income from notes and bonds.

    Other operating income increased to EUR 44 million (40).

    Total expenses grew by 2.3% to EUR 2,262 million. Personnel costs rose by 12.1% to EUR 1,081 million. The increase was affected by headcount growth and pay increases. OP Financial Group’s personnel increased by approximately 1,000 year on year. The number of employees increased in areas such as sales, customer service, service development, risk management and compliance. Depreciation/amortisation and impairment loss on PPE and intangible assets decreased by 35.5% to EUR 146 million.

    A year ago, impairment loss recognised mainly for information systems and property in own use totalled EUR 60 million. Other operating expenses increased by 2.4% to EUR 1,036 million. ICT costs totalled EUR 514 million (460). Development costs were EUR 349 million (294) and capitalised development expenditure EUR 58 million (62). Charges of financial authorities fell by EUR 61 million to EUR 16 million. The EU’s Single Resolution Board (SRB) did not collect stability contributions from banks for 2024. In 2023, OP Financial Group paid a total of EUR 62 million in stability contributions.

    At EUR 307 million (269), OP bonuses for owner-customers are included in earnings and are divided under the following items based on their accrual: EUR 160 million (150) under interest income, EUR 82 million (67) under interest expenses, EUR 48 million (38) under commission income from mutual funds, and EUR 17 million (15) under the insurance service result.

    Income tax amounted to EUR 499 million (408). OP Financial Group paid EUR 397 million in corporate tax for 2023. The effective tax rate for the reporting period was 20.1% (19.9). Comprehensive income after tax totalled EUR 2,067 million (1,719).

    OP Financial Group’s equity amounted to EUR 18.1 billion (16.3). Equity included EUR 3.3 billion (3.3) in Profit Shares, terminated Profit Shares accounting for EUR 0.4 billion (0.4).

    OP Financial Group’s funding position and liquidity are strong. The Group’s LCR was 193% (199), and its NSFR was 129% (130).

    Outlook

    Finland’s economy contracted in 2024. However, the economy began to recover as the year progressed and preliminary figures suggest that GDP grew in the second half compared to the same period in 2023. Slower inflation and lower interest rates provide a basis for the recovery to continue. Risks associated with the economic outlook are still higher than usual. The escalation of geopolitical crises or a rise in trade barriers may affect capital markets and the economic environment.

    OP Financial Group’s operating profit for 2025 is expected to be at a good level but lower than that for 2023 and 2024.

    The most significant uncertainties affecting OP Financial Group’s earnings performance are associated with developments in the business environment, changes in the interest rate and investment environment and developments in impairment loss on receivables. All forward-looking statements in this Financial Statements Bulletin 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 Financial Group’s financial performance will be presented to the media by President and Group Chief Executive Officer Timo Ritakallio in a press conference on 6 February 2025 at 11am at Gebhardinaukio 1, Vallila, Helsinki.

    Media enquiries: OP Corporate Communications, tel. +358 10 252 8719, viestinta@op.fi

    OP Corporate Bank plc and OP Mortgage Bank will publish their own financial statements bulletins.

    Time of publication of 2024 reports:

    Report by the Board of Directors (incl. Sustainability Report) and Financial Statements 2024 Week 11
    OP Financial Group’s Corporate Governance Statement 2024 Week 11
    OP Financial Group’s Annual Report 2024 Week 11
    OP Amalgamation Pillar 3 Disclosures 2024 Week 11
    OP Financial Group’s Remuneration Report for Governing Bodies 2024 Week 11
    Remuneration Policy for Governing Bodies at OP Financial Group Week 11

    Schedule for Interim Reports and Half-year Financial Report in 2025:

    Interim Report 1 January–31 March 2025 7 May 2025
    Half-year Financial Report 1 January–30 June 2025 30 July 2025
    Interim Report 1 January–30 September 2025 28 October 2025
    OP Amalgamation Pillar 3 Disclosures 31 March 2025 Week 19
    OP Amalgamation Pillar 3 Disclosures 30 June 2025 Week 33
    OP Amalgamation Pillar 3 Disclosures 30 September 2025 Week 45

    Helsinki, 6 February 2025

    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

    www.op.fi 

    DISTRIBUTION 
    Nasdaq Helsinki Oy 
    Euronext Dublin (Irish Stock Exchange) 
    LSE London Stock Exchange 
    Major media
    op.fi  

    OP Financial Group is Finland’s largest financial services group, with more than two million owner-customers and over 14,000 employees. We provide a comprehensive range of banking and insurance services for personal and corporate customers. OP Financial Group 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 120 years now. www.op.fi

    The MIL Network –

  • MIL-OSI: Launch of new share buyback programme in accordance with the ‘Safe Harbour’ rules

    Source: GlobeNewswire (MIL-OSI)

    Based on the profit for 2024 and a very strong solvency ratio, the Board of Directors of Alm. Brand A/S has resolved to exercise the authority to buy back treasury shares for a total amount of up to DKK 52.2 million. The authority to buy back treasury shares was granted at the company’s annual general meeting held on 18 April 2024. The authorisation is valid until the next annual general meeting and may be exercised for up to 10% of the share capital.

    Purpose
    The purpose of the share buyback is to reduce the share capital. At a general meeting in Alm. Brand A/S, a resolution to cancel the shares bought through the programme will be proposed.

    Timeline
    The share buyback programme runs from 6 February 2025 until 28 February 2025 at the latest, both days included. During this period, Alm. Brand A/S will acquire treasury shares for a total amount of up to DKK 52.2 million in accordance with article 5 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 (MAR) and Commission Delegated Regulation (EU) 2016/1052, which together with MAR constitutes the ‘Safe Harbour’ rules.

    Terms of the share buyback

    • Alm. Brand A/S is required to appoint a lead manager to make trading decisions independently of and without any influence from Alm. Brand A/S and to make the buybacks within the limits announced. Alm. Brand A/S has appointed Danske Bank A/S as lead manager of the share buyback process.
    • In accordance with the share buyback programme, Alm. Brand A/S may acquire up to 7 million shares, corresponding to 0.45% of the existing share capital of Alm. Brand A/S.
    • The shares are in no circumstances to be acquired at a price deviating by more than 10% from the most recently quoted market price at the time of acquisition.
    • The shares are not to be acquired at a price exceeding the price of the last registered independent trade or exceeding the price of the highest independent quote on the trading venue on which the acquisition is made.
    • The maximum number of shares that may be acquired on any trading day may not exceed 25% of the average daily trading volume for shares in Alm. Brand A/S on the trading venue on which the acquisition is made. The average daily trading volume is calculated over a period of 20 days preceding the relevant trading day.

    Once a week after the launch of the share buyback programme and at the end of the programme, a company announcement will be published with information on transactions effected under the programme.

    Contact

    Please direct any questions regarding this announcement to:

    Investors and equity analysts:                             

    Head of IR, Rating & ESG Reporting                    
    Mads Thinggaard                                                 
    Mobile no. +45 2025 5469                                   

    Attachment

    The MIL Network –

  • MIL-OSI Africa: Afreximbank challenges Africa’s miners to take bold steps to own the continent’s resources

    Source: Africa Press Organisation – English (2) – Report:

    CAPE TOWN, South Africa, February 5, 2025/APO Group/ —

    Africa must take bold steps to own its resources, create jobs and build industries that sustain prosperity for generations, African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has told African leaders, policymakers, mining industry leaders and global partners at the African Mining Indaba 2025 in Cape Town, South Africa, on Sunday.

    In a keynote address at the ministerial symposium of the Indaba, Mr. Denys Denya, Senior Executive Vice President of the Afreximbank Group, argued that the continent was standing at a crossroads and could either continue exporting its wealth and remain a marginal player in the global economy or take the bold steps to own its resources.

    He noted that “While the global mining industry generated approximately US$1.7 trillion in revenue in 2023, Africa’s share of this wealth remains disproportionately low. Our continent extracts the raw materials that power the world’s industries, yet it is estimated that we retain as little as between four per cent and 20 per cent of the total value of our minerals due to minimal local processing and limited downstream development. The result? Lost economic opportunities, exposure to volatile commodity cycles and a persistent reliance on external markets for refined products derived from our own resources.” “The choice is ours. The time to act is now. Let us work together: governments, financial institutions, investors, and industry players to build an Africa where mining is not just about extraction but about transformation, innovation and wealth creation,” said Mr. Denya. “Africa has the resources, the market potential, and the policy frameworks to transition from a resource-dependent continent to an industrial powerhouse. However, success will depend on bold, decisive action from all stakeholders. Policymakers must implement clear, enforceable regulations that mandate local value addition and create investment-friendly environments. Private sector investors must step up with capital and technology to develop processing, refining, and manufacturing facilities.”

    Reversing this trend demanded bold, coordinated action, he argued. “We must move beyond extraction and invest in refining, smelting and advanced manufacturing. African nations must increase local processing capacity for minerals such as bauxite, lithium, cobalt and iron ore.”

    He added that regional collaboration was essential as no single country could build a mining value chain in isolation.

    Mr. Denya highlighted the importance of the African Continental Free Trade Area (AfCFTA) in developing intra-African mineral value chains and strengthening cross-border collaboration and said that attracting capital for mining-related infrastructure, technology transfer and skills development were critical.

    “Our mining policies must also prioritise environmental, social and governance standards, ensuring that mining benefits communities rather than displacing them,” he said, adding that the approach would create millions of skilled jobs for the youth and reduce reliance on volatile global markets while strengthening intra-African trade.

    Reiterating Afreximbank’s commitment to supporting Africa’s mining sector and ensuring that mineral wealth drove economic growth rather than perpetuate resource dependency, Mr. Denya announced that, over the past three years, the Bank had approved more than US$1 billion in support of mining and mineral sector projects across the continent, including financing the development and construction of a bauxite processing plant in Guinea, supporting the expansion of a manganese processing plant in Gabon and providing working capital financing to a diamond company in Botswana.

    Other major projects being supported by the Bank include a petrochemical fertilizer plant in Angola, a titanium dioxide pigment plant in South Africa and the feasibility study for the development of a limestone mine processing plant in Malawi, he added.

    Mr. Denya said that the establishment of the US$10-billion AfCFTA Adjustment Fund, managed by FEDA, Afreximbank’s impact investment subsidiary, would provide critical financial support to countries and businesses transitioning to the new trade regime, including those in the mining sector, and that the Bank’s efforts to harmonise standards and implement the Africa Collaborative Transit Guarantee Scheme would also facilitate seamless movement of minerals and mining equipment across borders, reducing logistical bottlenecks.

    Afreximbank was also leveraging digital platforms, such as the Africa Trade Gateway and the Pan-African Payment and Settlement System, to enable efficient transactions and market access, which would ensure that Africa’s vast mineral wealth was utilised to drive industrialisation, value addition and economic resilience across the continent, he added.

    Mr. Denya also noted that Afreximbank, in collaboration with development partners, was driving the development and expansion of industrial parks and special economic zones (SEZs) to address infrastructure challenges that hinder industrial growth.

    One of the most transformative initiatives under that pillar was the DRC/Zambia Electric Vehicle Battery Manufacturing Special Economic Zones – a project that positions Africa at the centre of the global energy transition by the implementation of battery precursor SEZs aimed at making the two countries globally competitive investment destinations for the battery electric vehicle value chain.

    The African Mining Indaba 2025, taking place from 3 to 6 February, is the premier gathering where Africa policymakers, industry leaders and global partners work to shape the future of the African mining sector.

    MIL OSI Africa –

  • MIL-OSI Africa: XTransfer and Ecobank Group Partner to Empower African Small and Medium-sized Enterprises’ (SMEs) Foreign Trade

    Source: Africa Press Organisation – English (2) – Report:

    XTransfer and Ecobank Group Partner to Empower African Small and Medium-sized Enterprises’ (SMEs) Foreign Trade XTransfer will leverage Ecobank’s extensive network across Africa, enabling its Chinese clients to collect funds in local African currencies while assisting African SMEs in making payments in their local currencies to negate foreign exchange issues LOMÉ, Togo, February 6, 2025/APO Group/ — XTransfer, the world-leading and China’s No.1 B2B Cross-Border Trade Payment Platform, and Ecobank Group (www.Ecobank.com), the leading private pan-African financial services group with unrivalled African expertise, have signed a landmark Memorandum of Understanding of Cooperation (MOU) to roll out comprehensive cross-border financial services to Africa’s small and medium-sized enterprises (SMEs) engaged in foreign trade. The collaboration will facilitate trade between China and African countries. In recent years, China and Africa have continued to deepen trade cooperation, with the scale of imports and exports rising rapidly. In 2023, bilateral trade reached a record US$282 billion. From January to November 2024, China’s exports to Africa totalled US$160 billion, a 1.4% increase from the previous year, while imports from Africa reached US$107 billion, marking a substantial rise of 6.6%. Despite this growth, African SMEs engaged in foreign trade face numerous challenges related to cross-border payments and fund collections. These challenges include difficulties in opening accounts with traditional banks, a high risk of funds being frozen, difficulties in foreign exchange and related losses, lengthy remittance times and high remittance costs. The partnership between XTransfer and Ecobank Group will foster collaboration between both parties to provide comprehensive cross-border payment solutions for African SMEs’ foreign trade. XTransfer will leverage Ecobank’s extensive network across Africa, enabling its Chinese clients to collect funds in local African currencies while assisting African SMEs in making payments in their local currencies to negate foreign exchange issues. Bill Deng, Founder and CEO of XTransfer, stated, “We are excited about the partnership with Ecobank. This collaboration represents a significant milestone for XTransfer and greatly enhances our global payment capabilities. Leveraging Ecobank’s extensive payment network in Africa will accelerate our business expansion in the region. We are looking forward to the synergies and opportunities this partnership will create. Together, we will drive innovation and improve the financial landscape, making financial services more efficient and accessible for African SMEs.” Jeremy Awori, CEO Ecobank Group, said, “We are proud to partner with XTransfer to advance seamless cross-border payment solutions between Africa and China. This partnership builds on our established strategy, which includes a representative office in China and a dedicated China desk. By integrating XTransfer’s cutting-edge solutions with our pan-African payment platform, we simplify payments, reduce transaction costs, and enable African businesses to thrive in global trade.” The partnership will facilitate trade between SMEs in China and African countries and also streamline foreign trade transactions between African companies and their global partners. Ultimately, this will help reduce the costs of global trade and enhance the global competitiveness of African SMEs. This partnership aligns with Ecobank’s goals of driving financial integration by facilitating seamless cross-border trade, which is the backbone of the continent’s economy growth. By collaborating with XTransfer, Ecobank is strengthening its position as a key player in the global payments industry by reducing trade barriers, enabling African SMEs to thrive in international markets and contribute to the continent’s sustainable development. Distributed by APO Group on behalf of Ecobank Transnational Incorporated. Media Contact: XTransfer Limited Maggie NG Public Relations Director Tel: +852 6287 2989 Email: maggie.ng@xtransfer.com     Ecobank Transnational Incorporated Christiane Bossom Group Communications Ecobank Transnational Incorporated Email: groupcorporatecomms@ecobank.com Tel: +228 22 21 03 03 Web: www.Ecobank.com About XTransfer: XTransfer, the world-leading and China’s No.1 B2B Cross-Border Trade Payment Platform, is dedicated to providing small and medium-sized enterprises (SMEs) with secure, compliant, fast, convenient and low-cost foreign trade payment and fund collection solutions, significantly reducing the cost of global expansion and enhancing global competitiveness. Founded in 2017, the company is headquartered in Shanghai and has branches in Hong Kong SAR, the United Kingdom, the Netherlands, the United States, Canada, Australia, Singapore, Vietnam, Thailand, Malaysia, the Philippines, the UAE, and Nigeria. XTransfer has obtained local payment licences in Mainland China, Hong Kong SAR, Singapore, the United Kingdom, the United States, Canada, and Australia. With more than 600,000 enterprise clients, XTransfer has become the industry No.1 in China. By cooperating with well-known multinational banks and financial institutions, XTransfer has built a unified global multi-currency clearing network and built a data-based, automated, internet-based and intelligent anti-money laundering risk control infrastructure centred on SMEs. XTransfer uses technology as a bridge to link large financial institutions and SMEs around the world, allowing SMEs to enjoy the same level of cross-border financial services as large multinational corporations. XTransfer completed its Series D financing in September 2021 and achieved unicorn status. The Company possesses a diverse composition of international investors, including D1 Capital Partners LP, Telstra Ventures, China Merchants Venture, eWTP Capital, Yunqi Capital, Gaorong Capital, 01VC, MindWorks and Lavender Hill Capital Partners. For more information, please visit: https://www.XTransfer.com/ About Ecobank: Ecobank Group is the leading private pan-African banking group with unrivalled African expertise. Present in 35 sub-Saharan African countries, as well as France, the UK, UAE and China, its unique pan-African platform provides a single gateway for payments, cash management, trade and investment. The Group employs over 14,000 people and offers Consumer, Commercial, Corporate and Investment Banking products, services and solutions across multiple channels, including digital, to over 32 million customers. For further information, please visit www.Ecobank.com

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    MIL OSI Africa –

  • MIL-OSI United Kingdom: New UK High Commissioner to Solomon Islands presents credentials

    Source: United Kingdom – Executive Government & Departments

    Paul Turner was appointed British High Commissioner to Solomon Islands and Nauru in July 2024.

    High Commissioner Paul Turner presenting his credentials to Prime Minister of Solomon Islands Jeremiah Manele.

    His Majesty’s new High Commissioner to Solomon Islands and non-resident High Commissioner to the Republic of Nauru, His Excellency Paul Robert Turner presented his credentials this week to the Prime Minister of Solomon Islands, Hon. Jeremiah Manele.

    Paul Turner was appointed British High Commissioner to Solomon Islands and Nauru in July 2024. Paul’s experience covers the UK Government and international organisations, including the World Bank, African Development Bank and the European Union.

    With the UK Department for International Development (DFID), Paul oversaw economic and trade portfolios in East and Southern Africa as well as in China. More recently, he worked for the World Bank in Uganda. 

    Paul has also led development teams in a range of fragile states including Afghanistan and the Western Balkans. Earlier in his career, he was private secretary to Ministers in DFID and the Home Office. 

    Acknowledging the bilateral relations between the two countries, Prime Minister Manele said UK is one of the first countries to forge ties with Solomon Islands since 1978. He also provided an overview of his government’s priorities including education, health, climate change and trade.

    In response, High Commissioner Paul Turner said that his mission was to expand bilateral relations between the two countries and be a key partner of the Government of Solomon Islands in addressing the impact of climate change.

    The High Commissioner said he was keen to explore opportunities in a number of economic sectors, especially the local cocoa industry and affirmed that one of his personal goals is to produce tangible outcomes in the sector during his time in office.

    The High Commissioner is the UK Government’s representative in a Commonwealth nation. They are responsible for the direction and work of the High Commission and its Deputy High Commissions and/or Consulates, including political work, trade and investment, press and cultural relations, and visa and consular services.

    Updates to this page

    Published 6 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI New Zealand: Waitangi Day Address at Ōnuku Marae

    Source: New Zealand Governor General

    Kei aku rangatira o Ngāi Tahu, tēnā koutou. Nāu rā te karanga, kia haramai ahau, i tēnei rā o Waitangi. Nāu anō te tino mōhio, ki te manaaki tangata. Nā reira aku mihi nui. Tēnā koutou katoa.

    I wish to specifically acknowledge: the Right Honourable Christopher Luxon, Prime Minister; the Right Honourable Gerry Brownlee, Speaker of the House of Representatives; Rear Admiral Mathew Williams, Vice Chief of Defence Force; Tā Tipene O’Regan, Member of the Order of New Zealand; Mr Justin Tipa, Chair of Te Rūnanga o Ngāi Tahu, and your wider iwi leadership team; Mr Riki Tainui, representative for Ōnuku Rūnanga, and all representatives and whānau from Papatipu Rūnanga across Te Waipounamu.

    And, finally, to all distinguished guests, including representatives from central and local government, and all who have travelled to be here today – tēnā koutou katoa.

    Thank you for inviting me and my husband, Dr Davies, to Ōnuku, this beautiful place, to join with you in commemorating Waitangi Day this year. I know that the last Governor-General to attend commemorations at Ōnuku was my predecessor, Dame Patsy Reddy, six years ago, and I am honoured to be here today, in this very special part of Aotearoa New Zealand.

    Standing in this place, bearing, as it does, such deep history, and looking out at this harbour, of such astonishing beauty, I cannot help but be reminded of the whakataukī: ‘Whatungarongaro te tangata toitū te whenua. As people disappear from sight, the land remains.’

    I stand here and I think of those moments so significant in the history of Ngāi Tahu, Te Waipounamu, and Aotearoa, that have taken place here, on this whenua. I picture the HMS Herald entering Akaroa Harbour on the 28th of May 1840, and of Edward Williams and William Stewart coming ashore to explain the document they carried.

    In the following days, your tupuna surely gave deep consideration to what this Treaty might mean for Ngāi Tahu: for their tamariki and mokopuna, and for future generations – many of whom are gathered here today. I imagine Iwihau and Hone Tīkao returning to this place, on the 30th of May 1840, and signing that seventh sheet of Te Tiriti o Waitangi.

    Of course, it was also here, 158 years later, that the then Prime Minister, the Right Honourable Jenny Shipley, standing where I am now, delivered the Crown’s apology to Ngāi Tahu – expressing profound regret for the Government’s breaches of Te Tiriti in its dealings with your iwi, and initiating the process of redress and healing.

    I wholeheartedly commend Ngāi Tahu for all that you’ve achieved in these intervening years. You continue to be great leaders, collaborators, and champions, not only for this region, but for all of New Zealand – across the spheres of education and agriculture; business and the arts; innovation and sustainability – and working always with the vision, generosity, and enterprise for which your iwi is so rightly renowned.

    On that note, I wish to take this opportunity to again acknowledge Tā Tipene O’Regan. It has truly been one of the great honours of my term as Governor-General to present you, Tā Tipene, with your Order of New Zealand – our country’s highest civilian honour – for all you’ve done for Ngāi Tahu, and for Aotearoa.

    It was the author and former Governor-General of Canada, John Buchan, who said: ‘The task of leadership is not to put greatness into humanity, but to elicit it, for the greatness is already there.’ Thank you, on behalf of all New Zealanders, Tā Tipene, for the clarity, intelligence, and selflessness of your leadership, and the greatness you have elicited through your service over so many years.

    Across all its endeavours, Ngāi Tahu continues to seek the very best outcomes for your people, and for this precious land. I was deeply impressed by your Climate Change Strategy, emphasising, as it does, not only the urgency of the issues, but a model for principled, collective action in facing them.

    Perhaps most profoundly, it speaks to those often-neglected facts: that we are each a part of the natural world – and that, in the irreversible degradation and loss of the environment around us, we are, in turn, losing some deep and irreplaceable part of ourselves – inhabiting and sharing this beautiful, fragile earth which is our only home.

    I was moved to find that the pou in this whare behind me represent not only rangatira from the Banks Peninsula, but from across the country – including my own tupuna. In doing so, it stands beautifully for the way that, no matter where we may be from, we are bound together as people of Aotearoa: for the enduring nature of the relationship we share, enshrined in our Treaty.

    In such a way, I believe Te Tiriti o Waitangi to be this nation’s taonga: a gift given to us by our tupuna, and our guiding light towards a vision of nationhood conceived, debated, and pledged, at Waitangi, Ōnuku, and across Aotearoa.

    As our minds begin to turn towards 2040, the bicentenary of Te Tiriti, and to the long-term future of this country, it is our rangatahi who will lead us there, guided by our elders. I urge us to do all we can to empower them – to be examples in the way we conduct ourselves; to hold onto our own youthful sense of hope and purpose; and to be there for each other, in the spirit of understanding, goodness, and grace with which our Treaty was signed, here, 185 years ago.

    In this, our national project, I can think of no better guiding principle than the few, very simple lines of New Zealand poet, Jenny Bornholdt:

    Always refer back
    to the heart.
    It is where
    the world 
    began.

    My sincerest thanks once again to Ngāi Tahu for inviting and hosting us so graciously and generously here today. I wish you all the very best for the rest of your day of celebrations, and for your hopes and aspirations for these years ahead.

    He ao te rangi ka uhia, he huruhuru, te manu ka tau. Tēnā tatau katoa.

    MIL OSI New Zealand News –

  • MIL-OSI: ING posts full-year 2024 net profit of €6,392 million and outstanding commercial growth

    Source: GlobeNewswire (MIL-OSI)

    ING posts full-year 2024 net profit of €6,392 million and outstanding commercial growth

    Full-year profit before tax of €9,300 million, supported by growing customer base and increase in lending and deposits
    • Mobile primary customer base rises by 1.1 million in 2024 to 14.4 million
    • Net core lending growth of €28 billion, or 4%, and net core deposits growth of €47 billion (7%)
    • Total income of €22.6 billion; double-digit growth in fee income, surpassing €4 billion for the first time
    • Full-year return on equity of 13.0%; proposed final cash dividend of €0.71 per share
     
    4Q2024 profit before tax of €1,771 million with a CET1 ratio of 13.6%
    • Increase of 434,000 mobile primary customers in the fourth quarter, with growth in all markets
    • Total income resilient year-on-year, supported by continuously strong fee income
    • Risk costs remain below our through-the-cycle average, reflecting strong asset quality
    • CET1 ratio decreases to 13.6% following the shareholder distribution announced in October
     

    CEO statement

    “In 2024, we have made very good progress in the implementation of our strategy. We have accelerated growth, diversified our income, provided superior value to customers and continued to play a leading role in supporting our clients’ sustainable transition,” said ING CEO Steven van Rijswijk. “We’re pleased with our strong results and are on track to make the targets as communicated on our Capital Markets Day in June. We have continued to invest in the growth of our business, resulting in a larger customer base and higher revenues, while continuously executing our plans to drive operational efficiencies.

    “We have increased the number of our mobile primary customers by 1.1 million, resulting in a total of 14.4 million mobile primary customers, with Germany, the Netherlands, Spain and Poland especially contributing to the growth. Core lending has also grown across all markets, by €28 billion, with particularly strong growth of €19 billion in our mortgage portfolio, especially in Germany and the Netherlands. Our deposit base has risen by €47 billion, again with contributions from all Retail countries and our Wholesale business. In Wholesale Banking, we have seen strong results from Financial Markets and we have continued investing in our front office and building our product foundations.

    “Total income has increased to a record €22.6 billion and we have posted a net result of €6.4 billion, maintaining a high level after a very strong 2023. Fee income has increased 11% year-on-year, following an increase in both assets under management and in customer trading activity in Retail. Fee income growth in Wholesale Banking was mainly driven by a higher number of capital markets issuance deals for our clients.

    “Sustainability is a priority for our clients and for ING. We have increased our sustainable volume mobilised to €130 billion, up from €115 billion in 2023, showing strong progress against our 2027 target of €150 billion per annum. During the year, we have engaged with more than 1,600 of our Wholesale Banking clients on their transition plans. In Retail Banking, including in Germany, the Netherlands and Australia, we have supported our customers with sustainable mortgages, renovation loans and digital tools, allowing them to identify possible energy upgrades to their homes and connecting them with accredited home renovators.

    “For the coming year, we remain vigilant as we foresee ongoing geopolitical volatility and a fragmented economic outlook. We are confident that we have the right strategy to deliver value to all of our stakeholders by growing our customer base, continuing to diversify our income and supporting clients in their sustainable transitions. I would like to take this opportunity to thank our shareholders for their continued support, our clients for their continued trust and our employees for their hard work and collaboration.”
     
    Further information
    All publications related to ING’s Full year and 4Q 2024 results can be found at the quarterly results page on ING.com. For more on investor information, go to www.ing.com/investors.

    A short ING ON AIR video with CEO Steven van Rijswijk discussing our FY/4Q2024 results is available on Youtube.

    For further information on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom or via the @ING_news feed on X. Photos of ING operations, buildings and its executives are available for download at Flickr.
     
    Investor conference call, Media meeting and webcasts
    Steven van Rijswijk, Tanate Phutrakul and Ljiljana Čortan will discuss the results in an Investor conference call on 6 February 2025 at 9:00 a.m. CET. Members of the investment community can join the conference call at +31 20 708 5074 (NL), or +44 330 551 0202 (UK) (registration required via invitation) and via live audio webcast at www.ing.com.

    Steven van Rijswijk, Tanate Phutrakul and Ljiljana Čortan will also discuss the results in a media meeting on 6 February 2024 at 11:00 a.m. CET. Journalists are welcome at ING’s Cedar office, Bijlmerdreef 106, Amsterdam. Alternatively, they can dial-in in listen-only mode via +31 20 708 5073 (NL), or +44 330 551 0200 (UK) – quote ING Media Call 4Q2024 when prompted by the operator. The meeting can also be followed via live audio webcast at www.ing.com.
     
    Investor enquiries
    E: investor.relations@ing.com

    Press enquiries

    T: +31 20 576 5000
    E: media.relations@ing.com
     
    ING Profile
    ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is: empowering people to stay a step ahead in life and in business. ING Bank’s more than 60,000 employees offer retail and wholesale banking services to customers in over 100 countries.

    ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

    ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING’s ESG rating by MSCI was reconfirmed by MSCI as ‘AA’ in August 2024 for the fifth year. As of December 2023, in Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’. Our current ESG Risk Rating, is 17.2 (Low Risk). ING Group shares are also included in major sustainability and ESG index products of leading providers. Here are some examples: Euronext, STOXX, Morningstar and FTSE Russell.

    Important legal information
    Elements of this press release contain or may contain information about ING Groep N.V. and/ or ING Bank N.V. within the meaning of Article 7(1) to (4) of EU Regulation No 596/2014 (‘Market Abuse Regulation’).

    ING Group’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS- EU’). In preparing the financial information in this document, except as described otherwise, the same accounting principles are applied as in the 2023 ING Group consolidated annual accounts. The Financial statements for 2024 are in progress and may be subject to adjustments from subsequent events. All figures in this document are unaudited. Small differences are possible in the tables due to rounding.

    Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to a number of factors, including, without limitation: (1) changes in general economic conditions and customer behaviour, in particular economic conditions in ING’s core markets, including changes affecting currency exchange rates and the regional and global economic impact of the invasion of Russia into Ukraine and related international response measures (2) changes affecting interest rate levels (3) any default of a major market participant and related market disruption (4) changes in performance of financial markets, including in Europe and developing markets (5) fiscal uncertainty in Europe and the United States (6) discontinuation of or changes in ‘benchmark’ indices (7) inflation and deflation in our principal markets (8) changes in conditions in the credit and capital markets generally, including changes in borrower and counterparty creditworthiness (9) failures of banks falling under the scope of state compensation schemes (10) noncompliance with or changes in laws and regulations, including those concerning financial services, financial economic crimes and tax laws, and the interpretation and application thereof (11) geopolitical risks, political instabilities and policies and actions of governmental and regulatory authorities, including in connection with the invasion of Russia into Ukraine and the related international response measures (12) legal and regulatory risks in certain countries with less developed legal and regulatory frameworks (13) prudential supervision and regulations, including in relation to stress tests and regulatory restrictions on dividends and distributions (also among members of the group) (14) ING’s ability to meet minimum capital and other prudential regulatory requirements (15) changes in regulation of US commodities and derivatives businesses of ING and its customers (16) application of bank recovery and resolution regimes, including write down and conversion powers in relation to our securities (17) outcome of current and future litigation, enforcement proceedings, investigations or other regulatory actions, including claims by customers or stakeholders who feel misled or treated unfairly, and other conduct issues (18) changes in tax laws and regulations and risks of non-compliance or investigation in connection with tax laws, including FATCA (19) operational and IT risks, such as system disruptions or failures, breaches of security, cyber-attacks, human error, changes in operational practices or inadequate controls including in respect of third parties with which we do business and including any risks as a result of incomplete, inaccurate, or otherwise flawed outputs from the algorithms and data sets utilized in artificial intelligence (20) risks and challenges related to cybercrime including the effects of cyberattacks and changes in legislation and regulation related to cybersecurity and data privacy, including such risks and challenges as a consequence of the use of emerging technologies, such as advanced forms of artificial intelligence and quantum computing (21) changes in general competitive factors, including ability to increase or maintain market share (22) inability to protect our intellectual property and infringement claims by third parties (23) inability of counterparties to meet financial obligations or ability to enforce rights against such counterparties (24) changes in credit ratings (25) business, operational, regulatory, reputation, transition and other risks and challenges in connection with climate change and ESG-related matters, including data gathering and reporting (26) inability to attract and retain key personnel (27) future liabilities under defined benefit retirement plans (28) failure to manage business risks, including in connection with use of models, use of derivatives, or maintaining appropriate policies and guidelines (29) changes in capital and credit markets, including interbank funding, as well as customer deposits, which provide the liquidity and capital required to fund our operations, and (30) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors contained therein) and ING’s more recent disclosures, including press releases, which are available on www.ING.com.

    This document may contain ESG-related material that has been prepared by ING on the basis of publicly available information, internally developed data and other third-party sources believed to be reliable. ING has not sought to independently verify information obtained from public and third-party sources and makes no representations or warranties as to accuracy, completeness, reasonableness or reliability of such information.

    Materiality, as used in the context of ESG, is distinct from, and should not be confused with, such term as defined in the Market Abuse Regulation or as defined for Securities and Exchange Commission (‘SEC’) reporting purposes. Any issues identified as material for purposes of ESG in this document are therefore not necessarily material as defined in the Market Abuse Regulation or for SEC reporting purposes. In addition, there is currently no single, globally recognized set of accepted definitions in assessing whether activities are “green” or “sustainable.” Without limiting any of the statements contained herein, we make no representation or warranty as to whether any of our securities constitutes a green or sustainable security or conforms to present or future investor expectations or objectives for green or sustainable investing. For information on characteristics of a security, use of proceeds, a description of applicable project(s) and/or any other relevant information, please reference the offering documents for such security.

    This document may contain inactive textual addresses to internet websites operated by us and third parties. Reference to such websites is made for information purposes only, and information found at such websites is not incorporated by reference into this document. ING does not make any representation or warranty with respect to the accuracy or completeness of, or take any responsibility for, any information found at any websites operated by third parties. ING specifically disclaims any liability with respect to any information found at websites operated by third parties. ING cannot guarantee that websites operated by third parties remain available following the publication of this document, or that any information found at such websites will not change following the filing of this document. Many of those factors are beyond ING’s control.

    Any forward-looking statements made by or on behalf of ING speak only as of the date they are made, and ING assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or for any other reason.

    This document does not constitute an offer to sell, or a solicitation of an offer to purchase, any securities in the United States or any other jurisdiction.

    Attachment

    The MIL Network –

  • MIL-OSI Economics: Underwriting Auction for sale of Government Securities for ₹22,000 crore on February 07, 2025

    Source: Reserve Bank of India

    Government of India has announced the sale (re-issue) of Government Securities, as detailed below, through auctions to be held on February 07, 2025 (Friday).

    As per the extant scheme of underwriting commitment notified on November 14, 2007, the amounts of Minimum Underwriting Commitment (MUC) and the minimum bidding commitment under Additional Competitive Underwriting (ACU) auction, applicable to each Primary Dealer (PD), are as under:

    (₹ crore)
    Security Notified Amount MUC amount per PD Minimum bidding commitment per PD under ACU auction
    6.92% GS 2039 12,000 286 286
    7.09% GS 2054 10,000 239 239

    The underwriting auction will be conducted through multiple price-based method on February 07, 2025 (Friday). PDs may submit their bids for ACU auction electronically through Core Banking Solution (E-Kuber) System between 10:30 A.M. and 11:00 A.M. on the day of underwriting auction.

    The underwriting commission will be credited to the current account of the respective PDs with RBI on the day of issue of securities.

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/2085

    MIL OSI Economics –

  • MIL-OSI: Societe Generale: Fourth quarter & 2024 full year results

    Source: GlobeNewswire (MIL-OSI)

    RESULTS AT 31 DECEMBER 2024

    Press release                                                        
    Paris, 6 February 2025

    2024 RESULTS ABOVE ALL GROUP TARGETS
    GROUP NET INCOME OF EUR 4.2 BILLION, +69% vs. 2023

    Annual revenues of EUR 26.8 billion, up by +6.7% vs. 2023, above the ≥+5% target set for 2024, driven in particular by the strong rebound in net interest income in France and by an excellent performance in Global Banking and Investor Solutions with revenues above EUR 10 billion

    Cost-to-income ratio of 69.0%, below the target of <71% set for 2024, thanks to tight control of costs, which are stable vs. 2023

    Cost of risk at 26 basis points, at the lower end of the 2024 guidance range

    Profitability (ROTE) of 6.9%, above the target of >6% expected for 2024

    CET1 ratio of 13.3% at end-2024, around 310 basis points above regulatory requirement

    +75% INCREASE IN DISTRIBUTION TO SHAREHOLDERS VS. 2023

    Proposed distribution of EUR 1,740 million1, equivalent to EUR 2.18 per share1, composed of:

    • a cash dividend of EUR 1.09 per share to be proposed to the General Meeting
    • a share buyback programme of EUR 872 million, equivalent to EUR 1.09 per share1. ECB approval has been obtained to launch the programme, due to start on 10 February 2025
    • Increase of the payout ratio to 50% of net income2

    2025 FINANCIAL TARGETS, STRONG CAPITAL, EXECUTION DISCIPLINE

    Revenue growth of more than +3%3 vs. 2024

    Decrease in costs above -1%3 vs. 2024

    Improvement of the cost-to-income ratio, less than 66% in 2025

    Cost of risk between 25 and 30 basis points in 2025

    Increase of the ROTE, more than 8% in 2025

    CET1 ratio above 13% post Basel IV throughout the year 2025

    With a solid CET1 ratio ahead of the capital trajectory, we are proposing to improve the distribution policy with:

    • an overall distribution payout ratio of 50% of net income2
    • a balanced distribution between cash dividends and share buybacks

    Slawomir Krupa, the Group’s Chief Executive Officer, commented:
    “In 2024, our performance improves materially. All our targets are exceeded and ahead of plan. Strong capital build-up, strong and sustainable business growth, strong cost control and risk management, and a material progress in our integration projects led to the doubling of the earnings per share. Against this strong backdrop, we are improving both the 2024 distribution and our distribution policy. I would like to thank the entire Societe Generale team for their dedication and remarkable commitment, every single day, to serving our clients and our Bank.
    We will continue to focus in 2025 on the relentless execution of our strategy, improving our performance even further.”

    1. GROUP CONSOLIDATED RESULTS
    In EURm Q4 24 Q4 23 Change 2024 2023 Change
    Net banking income 6,621 5,957 +11.1% +12.5%* 26,788 25,104 +6.7% +5.7%*
    Operating expenses (4,595) (4,666) -1.5% -0.7%* (18,472) (18,524) -0.3% -1.6%*
    Gross operating income 2,026 1,291 +57.0% +61.3%* 8,316 6,580 +26.4% +26.6%*
    Net cost of risk (338) (361) -6.4% -4.9%* (1,530) (1,025) +49.3% +48.6%*
    Operating income 1,688 930 +81.6% +87.4%* 6,786 5,555 +22.2% +22.5%*
    Net income/expense from other assets (11) (21) +48.9% +45.2%* (77) (113) +31.4% +26.3%*
    Income tax (413) (302) +36.6% +40.5%* (1,601) (1,679) -4.7% -4.9%*
    Net income 1,273 612 x 2.1 x 2.1* 5,129 3,449 +48.7% +49.6%*
    O.w. non-controlling interests 233 183 +27.0% +33.6%* 929 957 -3.0% -9.3%*
    Group net income 1,041 429 x 2.4 x 2.5* 4,200 2,492 +68.6% +73.2%*
    ROE 5.8% 1.5%     6.1% 3.1% +0.0% +0.0%*
    ROTE 6.6% 1.7%     6.9% 4.2% +0.0% +0.0%*
    Cost to income 69.4% 78.3%     69.0% 73.8% +0.0% +0.0%*

    Asterisks* in the document refer to data at constant perimeter and exchange rates

    The Board of Directors of Societe Generale, which met on 5 February 2025 under the chairmanship of Lorenzo Bini Smaghi, examined the Societe Generale Group’s results for Q4 24 and endorsed the 2024 financial statements.

    Net banking income 

    Net banking income stood at EUR 6.6 billion, up by +11.1% vs. Q4 23.

    Revenues of French Retail, Private Banking and Insurance were up by +15.5% vs. Q4 23 and totalled EUR 2.3 billion in Q4 24. Net interest income increased in Q4 24 (+36% vs. Q4 23), in line with the latest estimates. Assets under management in Private Banking and Insurance increased by +7% each in Q4 24 vs. Q4 23. Lastly, BoursoBank showed strong growth momentum with more than 460,000 new clients in the quarter, allowing to reach a client base of 7.2 million clients at end-December 2024, above the target of 7 million clients set for end-2024. In addition, BoursoBank posted a positive contribution to Group net income in 2024 for the second year in a row.

    Global Banking and Investor Solutions registered a +12.4% increase in revenues relative to Q4 23. Revenues amounted to EUR 2.5 billion for the quarter, driven by strong momentum across all businesses. Global Markets grew by 9.8% in Q4 24 vs. Q4 23. Revenues from the Equities business were up by +10%, reaching a record level for a fourth quarter. They were driven by favourable market conditions, particularly after the result of the presidential elections in the United States. Fixed Income and Currencies were up by +9% owing to solid commercial activity in financing and intermediation across all asset classes. In Financing and Advisory, solid commercial momentum was recorded in structured finance and the performance of M&A and advisory continued to rebound. Likewise, Global Transaction & Payment Services posted a +26% increase in revenues vs. Q4 23, driven by a sustained commercial development across all businesses, particularly in correspondent banking.

    Mobility, International Retail Banking and Financial Services’ revenues were up by +2.0% vs. Q4 23, mainly due to an increase in margins at Ayvens. International Retail Banking recorded a -3.6% fall in revenues vs. Q4 23 at EUR 1.0 billion, due to a scope effect related to the asset disposals finalised in Africa (Morocco, Chad, Congo, Madagascar). Revenues were up +3.4% at constant perimeter and exchange rates. Revenues from Mobility and Financial Services were up by +8.3% vs. Q4 23 mainly due to non-recuring items in Q4 23 and improved margins at Ayvens.

    The Corporate Centre recorded revenues of EUR -159 million in Q4 24.

    Over 2024, net banking income increased by +6.7% vs. 2023.

    Operating expenses 

    Operating expenses came out to EUR 4,595 million in Q4 24, down by -1.5% vs. Q4 23.
    They include a scope effect of around EUR 46 million related to the integration of Bernstein’s cash equity operations and a decrease in transformation costs of EUR 26 million. Excluding these items, operating expenses were down by nearly -2% in Q4 24 vs. Q4-23 owing to the effect of the cost saving measures implemented across all business lines.

    The cost-to-income ratio stood at 69.4% in Q4 24, significantly lower than in Q4 23 (78.3%).

    Over 2024, operating expenses remained relatively stable (-0.3% vs. 2023), thanks from rigorous cost management. The cost-to-income ratio stood at 69.0% (vs. 73.8% in 2023), a level below the target of 71% for 2024.

    Cost of risk

    The cost of risk fell to 23 basis points over the quarter (or EUR 338 million). This includes a EUR 386 million provision for non-performing loans (around 26 basis points) and a reversal of a provision on performing loans for EUR -48 million.

    At end-December, the Group’s provisions on performing loans amounted to EUR 3,119 million, stable relative to 30 September 2024. The EUR -453 million contraction relative to 31 December 2023 is mainly owing to the application of IFRS 5.

    The gross non-performing loan ratio stood at 2.81%4,5 at 31 December 2024, significantly down vs. end of September 2024 (2.95%). The net coverage ratio on the Group’s non-performing loans stood at 81%6 at 31 December 2024 (after taking into account guarantees and collateral).

    Net profits from other assets

    The Group recorded a net loss of EUR -11 million in Q4 24, mainly related to the accounting impacts of finalised asset sales, such as the disposals of our activities in Morocco and Madagascar.

    Group net income

    Group net income stood at EUR 1,041 million for the quarter, equating to a Return on Tangible Equity (ROTE) of 6.6%.

    Over the year, Group net income stood at EUR 4,200 million, equating to a Return on Tangible Equity (ROTE) of 6.9%.

    Shareholder distribution

    The Board of Directors approved the distribution policy for the 2024 fiscal year, aiming to distribute EUR 2.18 per share, equivalent to EUR 1,740 million, of which EUR 872 million in share buyback7. A cash dividend of EUR 1.09 per share will be proposed at the General Meeting of Shareholders on 20 May 2025. The dividend will be detached on 26 May 2025 and paid out on 28 May 2025.

    1. AN ESTABLISHED ESG STRATEGY FROM WHICH TO STEP FORWARD

    In 2024, Societe Generale accelerated the execution of its ESG roadmap, particularly with respect to the contribution to the environmental transition:

    • The Group now covers ~70% of companies’8 financed emissions, with 10 alignment targets for the carbon-intensive sectors. It has already reduced its oil and gas upstream exposure by more than 50% since the end of 20199
    • In Q2 24 and ahead of schedule, the Group reached its target of EUR 300 billion for sustainable finance planned for the period 2022-2025. A new target of EUR 500 billion, complementing the work carried out as part of the portfolio alignment, was announced for the period 2024-2030. This will help increase the orientation of financial flows towards decarbonization activities.

    The Group has broadened the scope of actions to prepare for a sustainable future by supporting new players and new technologies:

    • The EUR 1 billion investment for the transition, announced during the Capital Markets Day, has entered its operationalization phase
    • A new partnership with the EIB to unlock up to EUR 8 billion in the wind industry supply chain in Europe was signed in Q4 24.

    At the same time, ESG risk management continues to be strengthened, enhancing forward-looking assessments of environmental risk materiality and further integrating environmental, social and governance risks into the risk framework.
    Lastly, the Group is moving forward with its ambitions as a responsible employer: at the end of 2024, the “Group Leaders Circle” (Top 250) had ~30% women executives10 and ~30% international members. As announced during the Capital Markets Day, the EUR 100 million envelope commitment to reduce the gender pay gap was launched in 2023.

    1. THE GROUP’S FINANCIAL STRUCTURE

    At 31 December 2024, the Group’s Common Equity Tier 1 ratio stood at 13.3%11, around 310 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was well ahead of regulatory requirements at 156% at end-December 2024 (145% on average for the quarter), and the Net Stable Funding Ratio (NSFR) stood at 117% at end-December 2024.

    All liquidity and solvency ratios are well above the regulatory requirements.

      31/12/2024 31/12/2023 Requirements
    CET1(1) 13.3% 13.1% 10.24%
    Fully-loaded CET1 13.3% 13.1% 10.24%
    Tier 1 ratio (1) 16.1% 15.6% 12.17%
    Total Capital(1) 18.9% 18.2% 14.73%
    Leverage ratio(1) 4.34% 4.25% 3.60%
    TLAC (% RWA)(1) 29.7% 31.9% 22.31%
    TLAC (% leverage)(1) 8.0% 8.7% 6.75%
    MREL (% RWA)(1) 34.2% 33.7% 27.58%
    MREL (% leverage)(1) 9.2% 9.2% 6.23%
    End of period LCR 156% 160% >100%
    Period average LCR 145% 155% >100%
    NSFR 117% 119% >100%
    In EURbn 31/12/2024 31/12/2023
    Total consolidated balance sheet 1,574 1,554
    Shareholders’ equity (IFRS), Group share 70 66
    Risk-weighted assets 390 389
    O.w. credit risk 327 326
    Total funded balance sheet 952 970
    Customer loans 463 497
    Customer deposits 614 618

    At 31 December 2024, the parent company had issued EUR 43.2 billion in medium/long-term debt under its 2024 funding program. The subsidiaries had issued EUR 4.7 billion. In all, the Group has issued a total of EUR 47.9 billion.

    At 10 January 2025, the parent company 2025 funding program was executed at 47% for vanilla notes.

    The Group is rated by four rating agencies: (i) FitchRatings – long-term rating “A-”, stable outlook, senior preferred debt rating “A”, short-term rating “F1”; (ii) Moody’s – long-term rating (senior preferred debt) “A1”, negative outlook, short-term rating “P-1”; (iii) R&I – long-term rating (senior preferred debt) “A”, stable outlook; and (iv) S&P Global Ratings – long-term rating (senior preferred debt) “A”, stable outlook, short-term rating “A-1”.

    1. FRENCH RETAIL, PRIVATE BANKING AND INSURANCE
    In EURm Q4 24 Q4 23 Change 2024 2023 Change
    Net banking income 2,267 1,963 +15.5% 8,657 8,053 +7.5%
    Of which net interest income 1,091 801 +36.2% 3,868 3,199 +20.9%
    Of which fees 1,028 948 +8.5% 4,108 3,975 +3.3%
    Operating expenses (1,672) (1,683) -0.7% (6,634) (6,756) -1.8%
    Gross operating income 596 280 x 2.1 2,024 1,297 +56.0%
    Net cost of risk (115) (163) -29.6% (712) (505) +41.0%
    Operating income 481 118 x 4.1 1,312 792 +65.6%
    Net profits or losses from other assets (2) 5 n/s 6 9 -35.1%
    Group net income 360 90 x 4.0 991 596 +66.2%
    RONE 9.1% 2.3%   6.3% 3.9%  
    Cost to income 73.7% 85.7%   76.6% 83.9%  

    Commercial activity

    SG Network, Private Banking and Insurance 

    The SG Network’s average outstanding deposits amounted to EUR 232 billion in Q4 24, down by -1% on Q4 23, with strong shift of inflows into investment products and savings life insurance.

    The SG Network’s average loan outstandings contracted by -4% vs. Q4 23 to EUR 194 billion, but -2.5% excluding PGE (state guaranteed loans). Outstanding loans to corporate and professional clients grew vs. Q3 24 excluding state guaranteed PGE loans, and individual clients lending experienced an increased commercial momentum.

    The average loan to deposit ratio came to 83.6% in Q4 24, down by 2.6 percentage points relative to Q4 23.

    Private Banking activities saw their assets under management12 maintain a record level of EUR 154 billion in Q4 24, up by +7% vs. Q4 23. Net gathering stood at EUR 6.3 billion in 2024, the annual net asset gathering pace (net new money divided by AuM) being at +4% in 2024. Net banking income came to EUR 348 million over the quarter, a decrease of -2% vs. Q4 23. It stands at EUR 1,469 million for 2024, unchanged from 2023.

    Insurance, which covers activities in and outside France, posted a very strong commercial performance. Life insurance outstandings increased sharply by +7% vs. Q4 23 to reach a record EUR 146 billion at                end-December 2024. The share of unit-linked products remained high at 40%. Savings Life insurance gross inflows amounted to EUR 3.4 billion in Q4 24, and EUR 18.3 billion for 2024, up by +42% vs. 2023.

    Personal protection and P&C premia were up by +3% vs. Q4 23 (+5% at constant perimeter).

    BoursoBank 

    BoursoBank’s growth momentum continued with more than 460K new clients in the fourth quarter of 2024. BoursoBank reached almost 7.2 million clients in December 2024, above 2024 target.

    Thanks notably to its comprehensive banking offer and recognized among the “Digital Leaders”13, the Bank has a low attrition rate (~3% in 2024), still down vs. 2023.

    BoursoBank continued its profitable growth trajectory in 2024 with a cost per client down by -17.0% vs. 2023 with an expanding client base, more than 1.3 million net clients over 12 months (+22.4% vs. 2023).

    Loans outstanding improved by +5.4% relative to Q4 23, at EUR 16 billion in Q4 24.

    Average outstanding in savings including deposits and financial savings were +15.5% higher vs. Q4 23 at EUR 64 billion. Deposits outstanding totalled EUR 39 billion in Q4 24, posting another strong increase of +15.4% vs. Q4 23, driven by interest-bearing savings. Average life insurance outstandings, at EUR 13 billion in Q4 24, rose by +10.2% vs. Q4 23 (o/w 48% in unit-lined products, +3.8 percentage points vs. Q4 23). The activity continued to register strong gross inflows over the quarter (+50.4% vs. Q4 23, 65% unit-linked products).

    For the second year in a row, BoursoBank recorded a positive contribution to Group net income in 2024.

    At end of 2025, BoursoBank aims to exceed 8 million clients.

    Net banking income

    Over the quarter, revenues amounted to EUR 2,267 million (including PEL/CEL provision), up by +15% compared with Q4 23 and up by +1% compared with Q3 24. Net interest income grew by +36% vs. Q4 23 and +3% vs. Q3 24. Fee income rose by +9% relative to Q4 23.

    Over the year, revenues reached EUR 8,657 million, up by +8% compared with 2023 (including PEL/CEL provision). Net interest income was up by +21% vs. 2023. Fees increased by +3% relative to 2023.

    Operating expenses

    Over the quarter, operating expenses came to EUR 1,672 million, down -1% compared to Q4 23. The cost-to-income ratio reached 73.7% in Q4 24 and improved by 12 percentage points vs. Q4 23.

    Over the year, operating expenses totalled EUR 6,634 million, decreasing by -2% vs. 2023.                                         The cost-to-income ratio stood at 76.6% and improved by 7.3 percentage points compared with 2023.

    Cost of risk

    Over the quarter, the cost of risk amounted to EUR 115 million, or 20 basis points, down compared with Q3 24 (30 basis points).

    Over the year, the cost of risk totalled EUR 712 million, or 30 basis points.

    Group net income

    Over the quarter, Group net income totalled EUR 360 million. RONE stood at 9.1% in Q4 24.

    Over the year, Group net income totalled EUR 991 million. RONE stood at 6.3% for the year.

    1. GLOBAL BANKING AND INVESTOR SOLUTIONS
    In EURm Q4 24 Q4 23 Change 2024 2023 Change
    Net banking income 2,457 2,185 +12.4% +11.6%* 10,122 9,642 +5.0% +4.8%*
    Operating expenses (1,644) (1,601) +2.7% +2.0%* (6,542) (6,788) -3.6% -3.7%*
    Gross operating income 812 584 +39.0% +37.9%* 3,580 2,854 +25.4% +25.0%*
    Net cost of risk (97) (38) x 2.5 x 2.5* (126) (30) x 4.2 x 4.3*
    Operating income 715 546 +31.0% +30.1%* 3,455 2,824 +22.3% +21.9%*
    Group net income 627 467 +34.4% +33.0%* 2,788 2,280 +22.2% +21.7%*
    RONE 16.6% 12.2% +0.0% +0.0%* 18.4% 14.8% +0.0% +0.0%*
    Cost to income 66.9% 73.3% +0.0% +0.0%* 64.6% 70.4% +0.0% +0.0%*

    Net banking income

    Global Banking & Investor Solutions delivered an excellent fourth quarter, with revenues up by +12.4% compared with Q4 23, at EUR 2,457 million.

    Over 2024, revenues reached a record14 level of EUR 10,122 million, up by +5.0% vs. FY23, owing to excellent momentum across all business lines.

    Global Markets and Investor Services recorded a sharp rise in revenues over the quarter vs Q4 23 of +9.8% to EUR 1,493 million. Over 2024, they totalled EUR 6,557 million, up by +4.5% vs. FY 2023. This growth is the result of solid performance across all activities.

    Global Markets posted both a record fourth quarter and a record1 year with revenues, respectively, of EUR 1,332 million, up +9.5% vs. Q4 23, and EUR 5,884 million, up +5.6% vs. 2023, in a market environment that remains conducive.

    The Equities business delivered an excellent performance, with both a record year and fourth quarter. In Q4 24, revenues amounted to EUR 831 million, a steady increase of +10.0% vs. Q4 23, benefiting from a strong commercial dynamic post US elections especially in flow, listed products and financing activities. Over 2024, revenues increased sharply by +12.2% versus 2023 to EUR 3,569 million.

    Fixed Income and Currencies grew by +8.8% to EUR 501 million in Q4 24, thanks to a solid performance across all products, with an increased client engagement across Corporates and Financial Institutions following the impact of the US elections on rates and currencies. In addition, European rates and currencies franchise outperformed, together with solid secured financing opportunities in the Americas. Over 2024, revenues decreased slightly by -3.2% to EUR 2,315 million.

    Securities Services’ revenues were sharply up by +12.4% versus Q4 23 at EUR 162 million but increased by +4.8% excluding the impact of equity participations. The business continued to reap the benefit of a positive fee generation trend and robust momentum in fund distribution, especially in France and Italy. Over 2024, revenues were down by -4.0%, but up by +2.8% excluding equity participations. Assets under Custody and Assets under Administration amounted to EUR 4,921 billion and EUR 623 billion, respectively.

    The Financing and Advisory business posted revenues of EUR 964 million, up by +16.7% vs. Q4 23. Over 2024, revenues totalled EUR 3,566 million, up by +5.8% vs. 2023.

    The Global Banking & Advisory business grew steadily by +13.7% compared with Q4 23 with a double digit increase in fees vs. Q4 23 driven by strong origination and distribution volumes in Fund Financing and Structured Finance. The rebound in M&A and Advisory continued in the fourth quarter with a strong increase in revenues. This is the second best quarter ever in terms of revenues, close to record Q4 22. Over 2024, revenues grew by +3.2% vs. 2023.

    The Global Transaction & Payment Services business once again delivered an excellent performance compared with Q4 23. The sharp increase in revenues of +26.1% was driven by solid commercial momentum in all activities, as well as a high level of fee generation, led by a strong performance in correspondent banking. Over 2024, revenues saw a steady increase of +13.9%. This represents a record year and fourth quarter.

    Operating expenses

    Operating expenses came out to EUR 1,644 million for the quarter, including around EUR 32 million in transformation costs. They are up by +2.7% relative to Q4 23. The cost-to-income ratio came to 66.9% in Q4 24.

    Over 2024, operating expenses decreased by -3.6% compared with 2023 and the cost-to-income ratio came to 64.6%.

    Cost of risk

    Over the quarter, the cost of risk was EUR 97 million, or 24 basis points vs. 9 basis points in Q4 23.

    Over 2024, the cost of risk was EUR 126 million, or 8 basis points.

    Group net income

    Group net income recorded strong growth, up by +34.4% vs. Q4 23 to EUR 627 million. Over 2024, Group net income rose sharply by +22.2% to EUR 2,788 million.

    Global Banking and Investor Solutions reported significant RONE of 16.6% over the quarter and 18.4% over 2024.

    1. MOBILITY, INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES
    In EURm Q4 24 Q4 23 Change 2024 2023 Change
    Net banking income 2,056 2,016 +2.0% +6.7%* 8,458 8,507 -0.6% -3.8%*
    Operating expenses (1,240) (1,281) -3.2% +0.8%* (5,072) (4,760) +6.6% +1.7%*
    Gross operating income 816 734 +11.1% +17.0%* 3,386 3,747 -9.6% -10.9%*
    Net cost of risk (133) (137) -2.5% +2.2%* (705) (486) +45.1% +43.5%*
    Operating income 682 598 +14.2% +20.4%* 2,681 3,261 -17.8% -19.1%*
    Net income/expense from other assets (2) (12) +86.1% +84.3%* 96 (11) n/s n/s
    Non-controlling interests 203 152 +33.1% +39.6%* 826 826 -0.1% -7.1%*
    Group net income 314 284 +10.5% +16.1%* 1,270 1,609 -21.1% -20.0%*
    RONE 12.0% 11.0%     12.2% 16.6%    
    Cost to income 60.3% 63.6%     60.0% 56.0%    

    (2)()

    Commercial activity

    International Retail Banking

    International Retail Banking15 activity remained strong in Q4 24 with outstanding loans at EUR 59 billion, up by +3.4%* vs. Q4 23 and deposits at EUR 74 billion, up by +3.9%* vs. Q4 23.

    Europe continues to post good commercial performance for both entities in individual and corporate client segments. With EUR 43 billion in Q4 24, outstanding loans increased by 4.9%* vs. Q4 23, across segments in Romania and more particularly in home loans in the Czech Republic. Outstanding deposits totalled EUR 55 billion in Q4 24, up by +3.8%* vs. Q4 23, mostly driven by Romania.

    In the Africa, Mediterranean Basin and Overseas France network, outstanding loans were stable* vs. Q4 23, with EUR 16 billion in Q4 24, on the back of the good performance in retail. Outstanding deposits of EUR 20 billion in Q4 24 increased by 4.0%* vs. Q4 23, mainly driven by sight deposits in retail.

    Mobility and Financial Services

    Overall, Mobility and Financial Services maintained a good commercial performance.

    Ayvens’ earning assets totalled EUR 53.6 billion at end-December 2024, a +2.9% increase vs. end-December 2023.

    Consumer Finance posted outstandings of EUR 23 billion in Q4 24, still down by -4.0% vs. Q4 23.

    With EUR 15 billion in Q4 24, Equipment Finance outstandings slightly decreased by -1.4% vs. Q4 23.

    Net banking income

    Over the quarter, Mobility, International Retail Banking and Financial Services’ revenues rose by +2.0% vs. Q4 23 to EUR 2,056 million in Q4 24.

    Over the year, revenues were stable compared with 2023 at EUR 8,458 million.

    International Retail Banking revenues reached EUR 1,029 million, up by +3.4%* vs. Q4 23. Over 2024, revenues amounted to EUR 4,161 million, up by 3.8%* vs. 2023.

    Revenues in Europe, which amounted to EUR 539 million in Q4 24, rose by +6.4%* vs. Q4 23, driven by the +3.5%* increase in net interest income for both KB in Czech Republic and BRD in Romania. Fee income increased strongly over the quarter in the Czech Republic, up by +29.5%* vs. Q4 23. Over 2024, revenues improved by +2.8%* vs. 2023 at EUR 2,028 million.

    The Africa, Mediterranean Basin and French Overseas network maintained a sustained level of revenues in Q4 24 of EUR 490 million, stable* vs. Q4 23, mainly driven by fee growth. Over 2024, revenues improved by +4.8%* vs. 2023 at EUR 2,133 million.

    Overall, revenues from Mobility and Financial Services were up by 8.3% vs. Q4 23 at EUR 1,026 million. They remained stable vs. 2023, at EUR 4,298 million in 2024.

    At Ayvens, net banking income stood at EUR 707 million in Q4 24, a sharp increase of +16,3% vs. Q4 23 as reported, and of +2.0% adjusted for non-recurring items16. The amount of margins stood at 541 basis points, generating revenues up +12%1 vs. T4-23. The used car sales markets are gradually normalising, as expected, with an average Used Car Sale (UCS) result per unit of EUR 1,2671 per unit this quarter, vs. EUR 1,4201 in Q3 24 and EUR 1,7061 in Q4 23. In 2024, Ayvens posted an increase in revenues of +1.2% vs. 2023 (at EUR 3,015 million), with an increase in underlying margins.

    The Consumer Finance entities posted revenues of EUR 216 million in Q4 24, still down by -4.2% vs. Q4 23. These are stabilizing from Q3 24, with an improvement in the margin for new production. Revenues from the Equipment Finance business was down this quarter by -9.3% vs. Q4 23, with EUR 103 million in Q4 24. In 2024, overall revenues for both businesses decreased by -4.0% vs. 2023.

    Operating expenses

    Over the quarter, operating expenses remained contained at EUR 1,240 million (-3.2% vs. Q4 23, stable* at constant perimeter and exchange rates). The cost-to-income ratio stood at 60.3% in Q4 24 vs. 63.6% in Q4 23.

    Over the year, operating expenses came to EUR 5,072 million, up by +6.6% vs. 2023. They include transformation costs of around EUR 200 million.

    International Retail Banking recorded an increase in costs of +4.8%* vs. Q4 23 (down by -2.1% at current perimeter and exchange rates, to EUR 577 million in Q4 24), still including the new bank tax in Romania, implemented since January 2024.

    Mobility and Financial Services costs reached EUR 663 million in Q4 24, down by -4.2% vs. Q4 23.

    Cost of risk

    Over the quarter, the cost of risk amounted to EUR 133 million or 32 basis points, which was considerably lower than in Q3 24 (48 basis points).

    Over the year, the cost of risk normalised to a level of 42 basis points, compared with 32 basis points in 2023.

    Group net income

    Over the quarter, Group net income came out to EUR 314 million, up by +10.5% vs. Q4 23. RONE stood at 12.0% in Q4 24. RONE was 16.3% in International Retail Banking, and 9.1% in Mobility and Financial Services in Q4 24.

    Over 2024, Group net income came out to EUR 1,270 million, down by -21.1% vs. 2023. RONE stood at 12.2% in 2024. RONE was 16.4% in International Retail Banking, and 9.4% in Mobility and Financial Services in 2024.

    1. CORPORATE CENTRE
    In EURm Q4 24 Q4 23 Change 2024 2023 Change
    Net banking income (159) (207) +23.4% +24.4%* (450) (1,098) +59.0% +59.6%*
    Operating expenses (39) (101) -61.8% -61.8%* (224) (220) +1.6% +1.4%*
    Gross operating income (197) (308) +36.0% +36.5%* (674) (1,318) +48.9% +49.5%*
    Net cost of risk 7 (23) n/s n/s 12 (4) n/s n/s
    Net income/expense from other assets (7) (15) +51.3% +51.3%* (179) (111) -61.3% -61.4%*
    Income tax (37) (45) -17.9% -16.6%* 81 (130) n/s n/s
    Group net income (261) (412) +36.7% +37.0%* (848) (1,994) +57.5% +57.8%*

    The Corporate Centre includes:

    • the property management of the Group’s head office,
    • the Group’s equity portfolio,
    • the Treasury function for the Group,
    • certain costs related to cross-functional projects, as well as several costs incurred by the Group that are not re-invoiced to the businesses.

    Net banking income

    Over the quarter, the Corporate Centre’s net banking income totalled EUR -159 million, vs. EUR  – 207 million in Q4 23.

    Over the year, the Corporate Centre’s net banking income totalled EUR -450 million, vs. EUR – 1,098 million in 2023. It includes the booking in Q3 24 of exceptional proceeds received of approximately EUR 0.3 billion17.

    Operating expenses

    Over the quarter, operating expenses totalled EUR -39 million, vs. EUR -101 million in Q4 23.

    Over the year, operating expenses totalled EUR -224 million, vs. EUR -220 million in 2023.

    Net losses from other assets

    Pursuant notably to the application of IFRS 5, the Group booked in Q4 24 various impacts from ongoing disposals of assets.

    Group net income

    Over the quarter, the Corporate Centre’s Group net income totalled EUR -261 million, vs. EUR -412 million in Q4 23.

    Over the year, the Corporate Centre’s Group net income totalled EUR -848 million, vs. EUR -1,994 million in 2023.

    To be noted that starting from 2025, normative return to businesses will be based on a 13% capital allocation.

          8.   2024 AND 2025 FINANCIAL CALENDAR

    2025 Financial communication calendar
    April 30, 2025 First quarter 2025 results
    May 20, 2025 2024 Combined General Meeting
    May 26, 2025 Dividend detachment
    May 28, 2025 Dividend payment
    July 31, 2025 Second quarter and first half 2025 results
    October 30, 2025          Third quarter and nine months 2025 results
    The Alternative Performance Measures, notably the notions of net banking income for the pillars, operating expenses, cost of risk in basis points, ROE, ROTE, RONE, net assets and tangible net assets are presented in the methodology notes, as are the principles for the presentation of prudential ratios.

    This document contains forward-looking statements relating to the targets and strategies of the Societe Generale Group.

    These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of existing prudential regulations.

    These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Group may be unable to:

    – anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;

    – evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation.

    Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in Societe Generale’s markets in particular, regulatory and prudential changes, and the success of Societe Generale’s strategic, operating and financial initiatives.

    More detailed information on the potential risks that could affect Societe Generale’s financial results can be found in the section “Risk Factors” in our Universal Registration Document filed with the French Autorité des Marchés Financiers (which is available on https://investors.societegenerale.com/en).

    Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the information contained in such forward-looking statements. Other than as required by applicable law, Societe Generale does not undertake any obligation to update or revise any forward-looking information or statements. Unless otherwise specified, the sources for the business rankings and market positions are internal.

          9.   APPENDIX 1: FINANCIAL DATA

    GROUP NET INCOME BY CORE BUSINESS

    In EURm Q4 24 Q4 23 Variation 2024 2023 Variation
    French Retail, Private Banking and Insurance 360 90 x 4.0 991 596 +66.2%
    Global Banking and Investor Solutions 627 467 +34.4% 2,788 2,280 +22.2%
    Mobility, International Retail Banking & Financial Services 314 284 +10.5% 1,270 1,609 -21.1%
    Core Businesses 1,301 841 +54.7% 5,048 4,486 +12.5%
    Corporate Centre (261) (412) +36.7% (848) (1,994) +57.5%
    Group 1,041 429 x 2.4 4,200 2,492 +68.6%

    MAIN EXCEPTIONAL ITEMS

    In EURm Q4 24 Q4 23 12M24 12M23
    Net Banking Income – Total exceptional items 0 41 287 (199)
    One-off legacy items – Corporate Centre 0 41 0 (199)
    Exceptional proceeds received – Corporate Centre 0 0 287 0
             
    Operating expenses – Total one-off items and transformation charges (76) (102) (613) (765)
    Transformation charges (76) (102) (613) (730)
    Of which French Retail, Private Banking and Insurance 7 18 (132) (312)
    Of which Global Banking & Investor Solutions (32) (64) (236) (167)
    Of which Mobility, International Retail Banking & Financial Services (51) (56) (199) (251)
    Of which Corporate Centre 0 0 (47) 0
    One-off items 0 0 0 (35)
    Of which French Retail, Private Banking and Insurance 0 0 0 60
    Of which Global Banking & Investor Solutions 0 0 0 (95)
             
    Other one-off items – Total (7) (115) (74) (820)
    Net profits or losses from other assets (7) (15) (74) (112)
    Of which Mobility, International Retail Banking and Financial Services 0 0 86 0
    Of which Corporate Centre (7) (15) (160) (112)
    Goodwill impairment – Corporate Centre 0 0 0 (338)
    Provision of Deferred Tax Assets – Corporate Centre 0 (100) 0 (370)

    CONSOLIDATED BALANCE SHEET

    In EUR m   31/12/2024 31/12/2023
    Cash, due from central banks   201,680 223,048
    Financial assets at fair value through profit or loss   526,048 495,882
    Hedging derivatives   9,233 10,585
    Financial assets at fair value through other comprehensive income   96,024 90,894
    Securities at amortised cost   32,655 28,147
    Due from banks at amortised cost   84,051 77,879
    Customer loans at amortised cost   454,622 485,449
    Revaluation differences on portfolios hedged against interest rate risk   (292) (433)
    Insurance and reinsurance contracts assets   615 459
    Tax assets   4,687 4,717
    Other assets   70,903 69,765
    Non-current assets held for sale   26,426 1,763
    Investments accounted for using the equity method   398 227
    Tangible and intangible fixed assets   61,409 60,714
    Goodwill   5,086 4,949
    Total   1,573,545 1,554,045
    In EUR m   31/12/2024 31/12/2023
    Due to central banks   11,364 9,718
    Financial liabilities at fair value through profit or loss   396,614 375,584
    Hedging derivatives   15,750 18,708
    Debt securities issued   162,200 160,506
    Due to banks   99,744 117,847
    Customer deposits   531,675 541,677
    Revaluation differences on portfolios hedged

    against interest rate risk

    		   (5,277) (5,857)
    Tax liabilities   2,237 2,402
    Other liabilities   90,786 93,658
    Non-current liabilities held for sale   17,079 1,703
    Insurance and reinsurance contracts liabilities   150,691 141,723
    Provisions   4,085 4,235
    Subordinated debts   17,009 15,894
    Total liabilities   1,493,957 1,477,798
    Shareholder’s equity   – –
    Shareholders’ equity, Group share   – –
    Issued common stocks and capital reserves   21,281 21,186
    Other equity instruments   9,873 8,924
    Retained earnings   33,863 32,891
    Net income   4,200 2,493
    Sub-total   69,217 65,494
    Unrealised or deferred capital gains and losses   1,039 481
    Sub-total equity, Group share   70,256 65,975
    Non-controlling interests   9,332 10,272
    Total equity   79,588 76,247
    Total   1,573,545 1,554,045

          10.    APPENDIX 2: METHODOLOGY

    1 –The financial information presented for the fourth quarter and full year 2024 was examined by the Board of Directors on February 5th, 2025 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress.

    2 – Net banking income

    The pillars’ net banking income is defined on page 42 of Societe Generale’s 2024 Universal Registration Document. The terms “Revenues” or “Net Banking Income” are used interchangeably. They provide a normalised measure of each pillar’s net banking income taking into account the normative capital mobilised for its activity.

    3 – Operating expenses

    Operating expenses correspond to the “Operating Expenses” as presented in note 5 to the Group’s consolidated financial statements as at December 31st, 2023. The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 42 of Societe Generale’s 2024 Universal Registration Document.

    4 – Cost of risk in basis points, coverage ratio for non-performing loan outstandings

    The cost of risk is defined on pages 43 and 770 of Societe Generale’s 2024 Universal Registration Document. This indicator makes it possible to assess the level of risk of each of the pillars as a percentage of balance sheet loan commitments, including operating leases.

    In EURm   Q4 24 Q4 23 2024 2023
    French Retail, Private Banking and Insurance Net Cost Of Risk 115 163 712 505
    Gross loan Outstandings 233,298 240,533 235,539 246,701
    Cost of Risk in bp 20 27 30 20
    Global Banking and Investor Solutions Net Cost Of Risk 97 38 126 30
    Gross loan Outstandings 160,551 168,799 162,749 169,823
    Cost of Risk in bp 24 9 8 2
    Mobility, International Retail Banking & Financial Services Net Cost Of Risk 133 137 705 486
    Gross loan Outstandings 167,911 164,965 167,738 150,161
    Cost of Risk in bp 32 33 42 32
    Corporate Centre Net Cost Of Risk (7) 23 (12) 4
    Gross loan Outstandings 25,730 23,075 24,700 20,291
    Cost of Risk in bp (11) 40 (5) 2
    Societe Generale Group Net Cost Of Risk 338 361 1,530 1,025
    Gross loan Outstandings 587,490 597,371 590,725 586,977
    Cost of Risk in bp 23 24 26 17

    The gross coverage ratio for non-performing loan outstandings is calculated as the ratio of provisions recognised in respect of the credit risk to gross outstandings identified as in default within the meaning of the regulations, without taking account of any guarantees provided. This coverage ratio measures the maximum residual risk associated with outstandings in default (“non-performing loans”).

    5 – ROE, ROTE, RONE

    The notions of ROE (Return on Equity) and ROTE (Return on Tangible Equity), as well as their calculation methodology, are specified on pages 43 and 44 of Societe Generale’s 2024 Universal Registration Document. This measure makes it possible to assess Societe Generale’s return on equity and return on tangible equity.
    RONE (Return on Normative Equity) determines the return on average normative equity allocated to the Group’s businesses, according to the principles presented on page 44 of Societe Generale’s 2024 Universal Registration Document.
    Group net income used for the ratio numerator is the accounting Group net income adjusted for “Interest paid and payable to holders if deeply subordinated notes and undated subordinated notes, issue premium amortisation”. For ROTE, income is also restated for goodwill impairment.
    Details of the corrections made to the accounting equity in order to calculate ROE and ROTE for the period are given in the table below:

    ROTE calculation: calculation methodology

    End of period (in EURm) Q4 24 Q4 23 2024 2023
    Shareholders’ equity Group share 70,256 65,975 70,256 65,975
    Deeply subordinated and undated subordinated notes (10,526) (9,095) (10,526) (9,095)
    Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation(1) (25) (21) (25) (21)
    OCI excluding conversion reserves 757 636 757 636
    Distribution provision(2) (1,740) (995) (1,740) (995)
    Distribution N-1 to be paid – – – –
    Equity end-of-period for ROE 58,722 56,500 58,722 56,500
    Average equity for ROE 58,204 56,607 57,223 56,396
    Average Goodwill(3) (4,192) (4,068) (4,108) (4,011)
    Average Intangible Assets (2,883) (3,188) (2,921) (3,143)
    Average equity for ROTE 51,129 49,351 50,194 49,242
             
    Group net Income 1,041 430 4,200 2,493
    Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation (199) (215) (720) (759)
    Cancellation of goodwill impairment – – – 338
    Adjusted Group net Income 842 215 3,480 2,073
    ROTE 6.6% 1.7% 6.9% 4.2%

    181920

    RONE calculation: Average capital allocated to Core Businesses (in EURm)

    In EURm Q4 24 Q4 23 Change 2024 2023 Change
    French Retail , Private Banking and Insurance 15,731 15,445 +1.9% 15,634 15,454 +1.2%
    Global Banking and Investor Solutions 15,129 15,247 -0.8% 15,147 15,426 -1.8%
    Mobility, International Retail Banking & Financial Services 10,460 10,313 +1.4% 10,433 9,707 +7.5%
    Core Businesses 41,320 41,006 +0.8% 41,214 40,587 +1.5%
    Corporate Center 16,884 15,601 +8.2% 16,009 15,809 +1.3%
    Group 58,204 56,607 +2.8% 57,223 56,396 +1.5%

    6 – Net assets and tangible net assets

    Net assets and tangible net assets are defined in the methodology, page 45 of the Group’s 2024 Universal Registration Document. The items used to calculate them are presented below:
    2122

    End of period (in EURm) 2024 2023 2022
    Shareholders’ equity Group share 70,256 65,975 66,970
    Deeply subordinated and undated subordinated notes (10,526) (9,095) (10,017)
    Interest of deeply & undated subordinated notes, issue premium amortisation(1) (25) (21) (24)
    Book value of own shares in trading portfolio 8 36 67
    Net Asset Value 59,713 56,895 56,996
    Goodwill(2) (4,207) (4,008) (3,652)
    Intangible Assets (2,871) (2,954) (2,875)
    Net Tangible Asset Value 52,635 49,933 50,469
           
    Number of shares used to calculate NAPS(3) 796,498 796,244 801,147
    Net Asset Value per Share 75.0 71.5 71.1
    Net Tangible Asset Value per Share 66.1 62.7 63.0

    7 – Calculation of Earnings Per Share (EPS)

    The EPS published by Societe Generale is calculated according to the rules defined by the IAS 33 standard (see page 44 of Societe Generale’s 2024 Universal Registration Document). The corrections made to Group net income in order to calculate EPS correspond to the restatements carried out for the calculation of ROE and ROTE.
    The calculation of Earnings Per Share is described in the following table:

    Average number of shares (thousands) 2024 2023 2022
    Existing shares 801,915 818,008 845,478
    Deductions      
    Shares allocated to cover stock option plans and free shares awarded to staff 4,402 6,802 6,252
    Other own shares and treasury shares 2,344 11,891 16,788
    Number of shares used to calculate EPS(4) 795,169 799,315 822,437
    Group net Income (in EUR m) 4,200 2,493 1,825
    Interest on deeply subordinated notes and undated subordinated notes (in EUR m) (720) (759) (596)
    Adjusted Group net income (in EUR m) 3,480 1,735 1,230
    EPS (in EUR) 4.38 2.17 1.50

    2324
    8 – The Societe Generale Group’s Common Equity Tier 1 capital is calculated in accordance with applicable CRR2/CRD5 rules. The fully loaded solvency ratios are presented pro forma for current earnings, net of dividends, for the current financial year, unless specified otherwise. When there is reference to phased-in ratios, these do not include the earnings for the current financial year, unless specified otherwise. The leverage ratio is also calculated according to applicable CRR2/CRD5 rules including the phased-in following the same rationale as solvency ratios.

    9 – Funded balance sheet, loan to deposit ratio

    The funded balance sheet is based on the Group financial statements. It is obtained in two steps:

    • A first step aiming at reclassifying the items of the financial statements into aggregates allowing for a more economic reading of the balance sheet. Main reclassifications:

    Insurance: grouping of the accounting items related to insurance within a single aggregate in both assets and liabilities.
    Customer loans: include outstanding loans with customers (net of provisions and write-downs, including net lease financing outstanding and transactions at fair value through profit and loss); excludes financial assets reclassified under loans and receivables in accordance with the conditions stipulated by IFRS 9 (these positions have been reclassified in their original lines).
    Wholesale funding: Includes interbank liabilities and debt securities issued. Financing transactions have been allocated to medium/long-term resources and short-term resources based on the maturity of outstanding, more or less than one year.
    Reclassification under customer deposits of the share of issues placed by French Retail Banking networks (recorded in medium/long-term financing), and certain transactions carried out with counterparties equivalent to customer deposits (previously included in short term financing).
    Deduction from customer deposits and reintegration into short-term financing of certain transactions equivalent to market resources.

    • A second step aiming at excluding the contribution of insurance subsidiaries, and netting derivatives, repurchase agreements, securities borrowing/lending, accruals and “due to central banks”.

    The Group loan/deposit ratio is determined as the division of the customer loans by customer deposits as presented in the funded balance sheet.

    NB (1) The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding rules.
    (2) All the information on the results for the period (notably: press release, downloadable data, presentation slides and supplement) is available on Societe Generale’s website:
    www.societegenerale.com in the “Investor” section.

    Societe Generale

    Societe Generale is a top tier European Bank with more than 126,000 employees serving about 25 million clients in 65 countries across the world. We have been supporting the development of our economies for 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.

    The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:

    • French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
    • Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
    • Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.

    Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

    For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com.

    1 Based on the number of shares in circulation at 31 December 2024 excluding own shares, subject to usual approvals from the General Meeting
    2 Reported Group net income, after deduction of interest on deeply subordinated notes and undated subordinated notes, restated from non-cash items that have no impact on CET1 ratio
    3 Excluding assets sold
    4 Ratio calculated according to EBA methodology published on 16 July 2019
    5 Ratio excluding loans outstanding of companies currently being disposed of in compliance with IFRS 5 (in particular Société Générale Equipment Finance, SG Marocaine de Banques and La Marocaine Vie)
    6 Ratio of S3 provisions, guarantees and collaterals over gross outstanding non-performing loans
    7 The share buyback programme and the subsequent capital reduction, aim also, and in priority, at fully offsetting the dilutive impact of the future capital increase as part of the next Group Employee Share Ownership Plan, the principle of which was adopted by the Board of Directors on February 5, 2025
    8 Scopes 1 & 2 of corporate clients’ financed emissions
    9Target: -80% upstream exposure reduction by 2030 vs. 2019, with an intermediary step in 2025 at -50% vs. 2019
    10 The target is to have at least 35% of women executives by 2026
    11Including IFRS 9 phasing
    12France and International (including Switzerland and the United Kingdom)
    13 Banking App #1 in France and #2 worldwide based on Sia Partners International Mobile Banking Benchmark in October 2024
    14 At comparable business model in the post Global Financial Crisis (GFC) regulatory regime

    15 Including entities reported under IFRS 5, excluding entities sold in Morocco and Madagascar in December 2024
    16 Excluding non-recurring items on either margins or UCS (mainly linked to fleet revaluation at EUR 107m in Q4 23 vs. EUR 0m in Q4 24, prospective depreciation at EUR -191m in Q4 23 vs. EUR -87m in Q4 24, hyperinflation in Turkey at EUR -27m in Q4 23 vs. EUR -40m in Q4 24 and MtM of derivatives at EUR -137m in Q4 23 vs. EUR -2m in Q4 24)

    17 As stated in Q2 24 results press release
    18 Interest net of tax
    19 Based on the 2024 proposed distribution, subject to usual approvals of the General Meeting
    20 Excluding goodwill arising from non-controlling interests
    21 Interest net of tax
    22 Excluding goodwill arising from non-controlling interests
    23 The number of shares considered is the number of ordinary shares outstanding at the end of the period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousand of shares)
    24 The number of shares considered is the average number of ordinary shares outstanding during the period, excluding treasury shares and buybacks, but including the trading shares held by the Group

    Attachment

    The MIL Network –

  • MIL-OSI NGOs: Inflicting harm and denying care in the West Bank report

    Source: Médecins Sans Frontières –

    Israeli forces and settlers have increased the use of extreme physical violence against Palestinians in the occupied West Bank since the all-out war on Gaza began in October 2023, according to a new report by Medecins Sans Frontieres (MSF). In total, at least 870 Palestinians have been killed and over 7,100 injured between October 2023 and January 2025.

    According to our new report, “Inflicting harm and denying care”, the escalation of violence in the West Bank has severely hindered access to healthcare and is part of a pattern of systemic oppression by Israel which has been described by the International Court of Justice (ICJ) as amounting to racial segregation and apartheid.

    “Inflicting harm and denying care” in the West Bank pdf — 13.7 MB Download

    MIL OSI NGO –

  • MIL-OSI NGOs: “Inflicting harm and denying care” in the West Bank: MSF report on escalation of attacks and obstructions of healthcare

    Source: Médecins Sans Frontières –

    Jerusalem – Israeli forces and settlers have increased the use of extreme physical violence against Palestinians in the occupied West Bank since the all-out war on Gaza began in October 2023, according to a new report by Medecins Sans Frontieres (MSF). In total, at least 870 Palestinians have been killed and over 7,100 injured between October 2023 and January 2025. 

    According to the MSF report, “Inflicting harm and denying care”, the escalation of violence in the West Bank has severely hindered access to healthcare and is part of a pattern of systemic oppression by Israel which has been described by the International Court of Justice (ICJ) as amounting to racial segregation and apartheid.

    “Inflicting harm and denying care” in the West Bank pdf — 13.7 MB Download

    The report which covers a one-year period from October 2023 and 2024, provides in-depth interviews from 38 MSF patients and personnel, hospital staff paramedics and volunteers supported by MSF who report prolonged and violent Israeli military incursions and stricter movement restrictions, all of which have severely hindered access to essential services, particularly healthcare.  The situation has further deteriorated since the ceasefire in Gaza and has exacerbated dire living conditions for many Palestinians who are paying an immense physical and psychological toll.

    “Palestinian patients are dying because they simply cannot reach hospitals,” says Brice de le Vingne, MSF emergency coordinator. “We’re seeing ambulances blocked by Israeli forces at checkpoints while carrying critical patients, medical facilities surrounded and raided during active operations, and healthcare workers subjected to physical violence while trying to save lives.”

    Every volunteer paramedic risks their life to provide life-saving treatment to the people living in the camp. Palestine, September 2024.
    Alexandre Marcou/MSF

    An increased number of attacks on medical personnel and facilities have been reported to MSF teams, including attacks on hospitals, destruction of makeshift medical sites in refugee camps, as well as the harassment, detention, injury, and killing of first responders and medical workers by Israeli forces.

    Between October 2023 and December 2024, WHO has recorded 694 attacks on healthcare in the West Bank, with hospitals and healthcare structures often besieged by military force. Healthcare workers express a feeling of insecurity as they are frequently harassed, detained, injured and even killed.

    “Israeli forces surrounded the stabilisation point [in Tubas], closing both its entrances, even though it was very clear that this was a medical building,” says a medic from the Palestinian Red Crescent Society, supported by MSF. “They ordered all the paramedics to exit the stabilisation point. There were around 22 of us paramedics there. Israeli soldiers shot inside and outside the building, damaging our supplies and the stabilisation point.”

    In case of medical emergency, restrictions of movement can have deadly consequences. Access to healthcare in this context has been severely impeded by the obstruction and targeting of ambulance movements and the escalation of violent military raids resulting in injuries, fatalities and the destruction of vital civilian infrastructure, including roads, healthcare, water pipelines and electrical systems, particularly in Tulkarem and Jenin refugee camps. In remote areas and outskirts of cities like Jenin or Nablus, the situation is especially dire, as patients with chronic conditions, such as those who need regular dialysis treatment, are forced to stay home due to the untenable obstacles to reaching healthcare.

    On top of the frequent Israeli military incursions, settler violence and the ever-increasing expansion of settlements has left many Palestinians vulnerable to violence and afraid to move across the West Bank. In total, 1,500 attacks by Israeli settlers against Palestinians have been reported by OCHA between October 2023 and 2024.

    As the occupying power, Israel has legal obligations under international law to ensure access to healthcare and protect medical personnel. The healthcare system in the West Bank is under immense strain and forced into a state of perpetual emergency.

    MSF calls Israel to stop the violence against healthcare workers, patients and health facilities and to stop obstructing medical personnel from performing lifesaving duties.

    MIL OSI NGO –

  • MIL-OSI Economics: Result of the Daily Variable Rate Repo (VRR) auction held on February 06, 2025

    Source: Reserve Bank of India

    Tenor 1-day
    Notified Amount (in ₹ crore) 25,000
    Total amount of bids received (in ₹ crore) 21,674
    Amount allotted (in ₹ crore) 21,674
    Cut off Rate (%) 6.51
    Weighted Average Rate (%) 6.52
    Partial Allotment Percentage of bids received at cut off rate (%) NA

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/2084

    MIL OSI Economics –