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Category: Politics

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 –

February 6, 2025

MIL-Evening Report: Hospitals will get $1.7 billion more federal funding. Will this reduce waiting times?
Source: The Conversation (Au and NZ) – By Henry Cutler, Professor and Director, Macquarie University Centre for the Health Economy, Macquarie University

This week, the federal government announced it will pay states and territories an extra, one-off, A$1.7 billion for public hospitals.

This has been billed as a way to fix some ailing hospitals, and shorten waits for care in emergency departments and for elective surgery. But will it really make a difference?

How are hospitals funded?

Australian public hospitals are funded through a collaborative arrangement involving state, territory and federal governments. The federal government provides 37% of public hospital funding annually, primarily through the National Health Reform Agreement. States and territories fund nearly all the rest.

Most federal government funding for public hospitals is determined by an “activity based funding” formula. Funding is based on the number of patients treated and the price of treatment, the latter calculated from average public hospital costs.

State and territory governments manage public hospitals. The federal government has little say on how public hospital money is spent. The exception is when funding relates to something specific, like a new hospital ward.

How the extra funding compares

The federal government will spend $30.19 billion on public hospitals this financial year. The extra funding will grow its public hospital spending by 12% in 2025–26.

Extra funding will likely impact Northern Territory hospitals the most. It will receive $51 million more, a 30% increase.

While larger states will receive additional funding, they have more public hospitals and patients. For example, New South Wales will receive $407 million, but this equates to only an 11% increase from the federal government.

The extra funding is less impressive when compared to total public hospital spending. That was $86 billion in 2022–23, suggesting the extra $1.7 billion will represent less than 2% in additional total funding to public hospitals in 2025–26.

But this extra spending is not in isolation. The federal government has already committed nearly $600 million to establish 87 urgent care clinics around Australia. Their primary purpose is to alleviate pressure on emergency departments and fill gaps in access to after-hours primary care.

Public hospitals are funded mostly by the states and territories, but receive some funding from the federal government.
khuncho24/Shutterstock

Pressure in public hospitals

Public hospital pressure has been building for over a decade. Emergency departments are often clogged, leading to long wait times, mostly because of staff shortages. Around 10% of patients wait more than two hours. There is little slack in the system to counter unpredictable surges in demand for care.

The proportion of emergency department patients seen on time has declined since COVID. The proportion of patients requiring urgent emergency department care seen on-time, for example, has decreased from 67% to 61%. More non-urgent and semi-urgent patients are also not receiving care on time.

Patients are also waiting longer for elective public hospital surgery since COVID, despite an increase in the number of admissions from elective surgery waiting lists.

Proportion of patients seen on time in public hospital emergency departments

Australian Institute of Health and Welfare

Waiting times vary by state and territories. Queensland has the lowest proportion of patients waiting more than 365 days for public hospital elective surgery at 3.9% in 2023–24, while the ACT had the highest at 8.9%.

Encouragingly, waiting times decreased for nearly all elective surgeries compared to 2022–23, suggesting public hospitals may be making inroads into the post-COVID load.

Proportion of patients waiting more than 365 days for public hospital elective surgery

Note: Data for the NT was unavailable.
Australian Institute of Health and Welfare

Will the money help?

While additional funding will help, there is no magic wand. Public hospitals need to substantially reorganise their staff, workflows, beds and buildings. This in an environment that has workforce shortages, burnout, and wage pressures, making major health system changes particularly difficult.

Some hospitals may reduce their waiting times substantially, if states and territories allocate their extra funding to poor performers.

However, poor performance can be related to systemic issues out of the hospital’s control, such as workforce shortages. Without an increase in total health-care workforce size, these poor performing hospitals may look for additional staff from other public hospitals, worsening their performance.

Whether any improvements last is another question.

Public hospitals face increased demand for emergency department care, only mitigated by the potential success of urgent care clinics.

Read more:
Labor’s urgent care centres are a step in the right direction – but not a panacea

Public hospitals also face an increase in demand for elective surgery, as the population ages and chronic disease prevalence increases.

The extra $1.7 billion is only a one off. Funds to reduce waiting times will mostly be spent on more staff, such as nurses, clinicians and administration staff.

Public hospitals will need additional, ongoing funding to keep up with demand, otherwise any initial improvement will dissipate.

Funds to reduce waiting times will mostly be spent on more staff.
Gorodenkoff/Shutterstock

What else needs to happen?

All governments need to invest more in prevention programs to slow the growth in public hospital demand.

More Australians are obese, as a proportion of the population, compared to other OECD countries. This has created a heavy burden.

Reducing financial waste in the health-care system is of huge importance. Savings could be used for long-term improvements in waiting times once the extra funding runs out.

Around 40% of health care is of low value or causes harm. Reducing unnecessary medical tests, speeding up discharges, and reducing avoidable admissions is a good start.

Other changes that could help include:
- setting national performance targets for states and territories to reduce their waiting lists
- stronger monitoring of performance
- holding public hospital managers more accountable for achieving their waiting time targets.
A new National Health Reform Agreement is due to take effect in 2026. Whoever wins this year’s federal election will have to finalise this agreement with the states and territories.

The Commonwealth and states are yet to commit to all of the recommendations from the mid-term review of the current agreement released in October 2023. The extent to which governments accept these recommendations has the potential to create a much greater, long-term impact on waiting times than this extra, one-off payment.

Henry Cutler has previously received funding from Northern Territory Health.

– ref. Hospitals will get $1.7 billion more federal funding. Will this reduce waiting times? – https://theconversation.com/hospitals-will-get-1-7-billion-more-federal-funding-will-this-reduce-waiting-times-249170
MIL OSI Analysis – EveningReport.nz –
February 6, 2025
MIL-OSI Global: Where support for Germany’s far-right AFD is growing and why – podcast

Source: The Conversation – UK – By Laura Hood, Host, Know Your Place podcast, The Conversation

Germany is holding an election on February 23 and the contest is attracting an unusual amount of attention. That’s because the far-right Alternative for Germany (AFD) is polling in second place on 20% of the national vote.

Should the party end up with a vote share on this scale, it would be its best ever result in a national election. It would change the face of the German parliament and force mainstream parties into difficult questions about their longstanding refusal to work with extreme parties.

The AFD’s roots are in nationalistic and racist movements. It continues to take an ultra anti-immigration stance and, in this election, is calling for “demigration” – effectively the deportation of migrants.

In this episode of The Conversation Weekly podcast, Rolf Frankenberger, an expert on right-wing extremism at the University of Tübingen in Germany, explains where the AFD draws its support from and what type of Germany it wants to return to.

Frankenburger has found two clear trends in the geographical distribution of AfD voting. The first is common among far-right parties around the world:

“ There are always exceptions, of course, but the main pattern is that around the big cities like Berlin, like Hamburg, Bremen, Hanover, Münster, Stuttgart, Munich, Frankfurt in these cities and their direct environment and suburbs, the AFD is less important. Whereas in the specific rural areas, like in Saxonia, in the Erzgebirge, in Baden-Württemberg, in the Black Forest, in Rhineland Palatinate, in the more rural areas, they have their strongholds.”

The second, however, is unique to Germany. Support for the AFD is far more concentrated in the east of Germany. This region was the part of the country that made up the communist German Democratic Republic between 1949 and 1990, before German reunification.

“Reunification in Germany produced winners and losers. And in the view of many East German people – and much of it is true – there are inequalities that were produced by reunification.”

These divisions are being exploited to push what Frankenburger terms a form of white supremacist, traditionalist “Völkisch nationalism” – not a term that is well understood outside of Germany but which resonates heavily in domestic politics.

“And so the AFD comes in and says ‘hey, there’s something wrong with the state, there’s something wrong with democracy, and there’s something wrong with our heritage. So we have a strong German heritage. We have an identity, we have an idea and all the others are trying to destroy it’. So it’s a kind of protest.”

To find out more about narratives pushed by the AFD, listen to the interview with Rolf Frankenberger on The Conversation Weekly podcast.

This episode of The Conversation Weekly was written and produced by Mend Mariwany and Gemma Ware. Sound design was by Michelle Macklem, and theme music by Neeta Sarl.

Clips in this episode from AFP News, AfD in English, DW News and Al Jazeera English.

Listen to The Conversation Weekly via any of the apps listed above, download it directly via our RSS feed or find out how else to listen here.

Rolf Frankenberger does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Where support for Germany’s far-right AFD is growing and why – podcast – https://theconversation.com/where-support-for-germanys-far-right-afd-is-growing-and-why-podcast-249045

MIL OSI – Global Reports –

February 6, 2025
MIL-OSI: Danish Government Borrowing and Debt 2024

Source: GlobeNewswire (MIL-OSI)

Today, Danmarks Nationalbank publishes the report Danish Government Borrowing and Debt 2024.

The highlights are:

Central government debt fell to a historic low of kr. 217 billion, equivalent to 7.4 per cent of GDP in 2024. Interest costs remained low at a total of kr. -0.3 billion and the yield spread to Germany became negative during the year. The highest possible credit rating of AAA has been retained with a stable outlook. Consolidation remained a key focus to maintain a well-functioning and liquid government securities market. In February, a new 2-year government bond was opened and in September a 2-year euro denominated bond was issued under the government’s EMTN programme. Robust risk management has continued to stabilise the government’s interest rate and market risk. Combined with the solid Danish economy, the Danish government enters 2025 in a strong position for managing government debt.

Read more in the report Danish Government Borrowing and Debt 2024 at https://www.nationalbanken.dk/en/news-and-knowledge/publications-and-speeches.

Enquiries can be directed to governmentdebt@nationalbanken.dk.

The MIL Network –

February 6, 2025
MIL-OSI United Kingdom: £8 million for Port Talbot growth and regeneration project
Source: United Kingdom – Executive Government & Departments
English

Cymraeg

A new project will support more than 100 jobs and eventually generate more than £87 million for the South Wales economy.
£8.2 million more announced for growth and regeneration project in Port Talbot.

The first of the growth and regeneration projects in Port Talbot will receive £8.2 million from the Tata Steel / Port Talbot Transition Board.

Plans will support more than 100 jobs and eventually generate more than £87 million for the South Wales economy.

Tata Steel / Port Talbot Transition Board has now allocated £51 million into the local community.

More than 100 jobs are expected to be created and supported with the UK Government announcement of £8.2 million funding for the first regeneration project in Port Talbot with other projects set to follow.

Chairing the latest meeting of the Tata Steel Port Talbot Transition Board today (6 February) Welsh Secretary Jo Stevens will announce £8.2 million for the South Wales Industrial Transition from Carbon Hub (SWITCH) supporting more than 100 jobs.

The South Wales Industrial Transition from Carbon Hub project will redevelop a four-acre site at Harbourside, Port Talbot which will include the construction of additional shared space, undertake flood mitigation and the provision of specialist equipment. This investment will help establish an Innovation District in Port Talbot.

This will allow the development of a new facility targeted at supporting the steel and metal industry and supply chain to reduce carbon emissions in production. The facility is expected to create and support more than 100 jobs and eventually benefit the South Wales economy by £87 million.

The latest funding comes from the UK Government’s £80m Tata Steel / Port Talbot Transition Board fund which, since last July, has announced £51 million to support individual steelworkers and businesses in Tata Steel’s supply chain to protect jobs and grow the local economy. The latest announcement is the first project to support growth and regeneration of the region. In the coming months, there will be up to £30 million (as part of the overall £80 million) put into growth and regeneration projects.

This funding supports the UK Government’s mission to kickstart economic growth and will help deliver the ambition to raise living standards in every part of the United Kingdom as set out its Plan for Change.

Welsh Secretary Jo Stevens said:

We said we would back the community of Port Talbot through Tata Steel’s transition and we continue to do exactly that.

In just six months there has now been over £50 million announced by the Transition Board to support individual steelworkers and their families, businesses in the supply chain and now on a major regeneration project for the town.

Millions more will follow and while this remains a very difficult time for Tata workers, their families and the community, we are determined to support our steel communities whatever happens.

The Secretary of State will also ensure that work is progressing at pace to develop a range of wellbeing and mental health interventions. This work will prioritise the provision of mental health support, help build community cohesion, support the delivery of wellbeing initiatives and peer support within the local community including that currently delivered via local community and other support groups. Funding to support this work will be announced at the next transition board meeting.

Cabinet Secretary for Economy, Energy and Planning Rebecca Evans said:

This announcement builds on the investment that will be unlocked through the recent Celtic Freeport and other investments and innovation we are supporting in and around Port Talbot.

Working alongside our Transition Bard partners, we will continue to do everything we can to provide opportunities for growth wherever they arise as well as making sure that the right assistance and support is in place for those impacted by the Tata changes.

The Leader of Neath Port Talbot Council, Cllr Steve Hunt, said:

We welcome this extra tranche of funding as the SWITCH project will attract jobs and investment to Neath Port Talbot as it progresses over the next few years. It also means this area can build on its long history in the steel and metals industries to address the challenges of our time.”

Professor Helen Griffiths, Pro Vice Chancellor for Research and Innovation at Swansea University, said:

SWITCH will leverage Swansea University’s history of uniting academia, industry, local authorities, and government. This significant investment will make Welsh research and innovation expertise even more accessible to business and industry, and help stimulate economic growth, provide long-term employment and foster a thriving community.

The South Wales Industrial Transition from Carbon Hub (SWITCH) delivers research to support industrial decarbonisation transition. This announcement of Transition Board funding for the SWITCH Harboursideproject will create a new base for SWITCH. This will add to the facility’s £20 million funding from the Swansea Bay City Deal, which is also part-funded by the UK Government.

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Published 6 February 2025
MIL OSI United Kingdom –
February 6, 2025
MIL-OSI Russia: NSU Lecturer Wins All-Russian Competition “Knowledge.Lecturer”

Translartion. Region: Russians Fedetion –

Source: Novosibirsk State University – Novosibirsk State University –

The award ceremony for the winners of the fourth season of the All-Russian competition “Knowledge.Lecturer” from the Russian Society “Knowledge” took place at the National Center “Russia” in Moscow on February 5. They were 70 lecturers from 37 regions of the country. Each received 250 thousand rubles to promote their educational content. Among the winners of the fourth season of the competition was the deputy dean for development Faculty of Mechanics and Mathematics, Novosibirsk State University, Doctor of Physical and Mathematical Sciences Timur Nasybullov. In the final, he gave a lecture “Bayes’ Formula as a Philosophy of Life”, in which he explained how this formula can be applied in reality.

Knowledge.Lecturer (formerly the “League of Lecturers”) is an all-Russian competition that allows each region to identify talented educators and create opportunities for their professional growth in this field. Within its framework, anyone can try their hand as a lecturer, improve their public speaking skills and find their audience. This is the flagship project of the Russian Knowledge Society, which has been implemented since 2021. Since the start of the project, more than 41,000 people have become its participants.

The fourth season of the All-Russian competition Znanie.Lektor was held from April 23, 2024 to February 5, 2025. More than 19 thousand people from all regions of Russia took part in it, including more than 5 thousand schoolchildren in a special nomination. They prepared author’s lectures on 14 competition topics and passed a multi-stage selection, which included training in public speaking, organizing their own lectures in their home region, interviews with experts. The 140 strongest participants among adults and students from 52 regions of Russia reached the final of the competition. They overcame the selection of more than 100 people per place. Each finalist received the honorary title of lecturer of the Russian Society “Znanie”.

The awards to the best lecturers were presented by the Minister of Education of the Russian Federation Sergey Kravtsov, Advisor to the President of the Russian Federation Elena Yampolskaya, General Director of the Russian Society “Knowledge” Maxim Dreval and others.

Presenting the awards, the Minister of Education of the Russian Federation Sergey Kravtsov noted that the future of our country depends on teachers, mentors, and lecturers, because they not only teach their students, but also shape the worldview of the younger generation.

“Today, together with you, we are developing our sovereign education system so that our schoolchildren are interested in our culture, language, and have a broad outlook,” said Sergei Kravtsov.

Maxim Dreval, General Director of the Russian Society “Knowledge”, spoke about new measures to support lecturers, which the Society plans to implement this year. In his opinion, it is very important to provide lecturers with the opportunity to develop, improve their skills and share experiences. Therefore, a project will be launched in March of this year, within the framework of which they can become participants in inspiring meetings, master classes, film screenings, intellectual games. More than a thousand events are planned by the end of the year, which will take place in every region of Russia. Their culmination will be the annual forum at the Mashuk Knowledge Center, which will bring together lecturers from all over the country. Presumably, it will take place in the fall.

— When I learned about the Znanie.Lektor competition, I immediately decided that I would participate in it to test myself. Yes, I am a teacher and I give a lot of lectures — both at NSU and outside the university. I often speak to schoolchildren — I tell them about mathematics. I think that this is very important for any teacher. In mathematics, as in any other science, not only scientific and research activities are important. They also need to be talked about. If this is not done, it will not reach either educational institutions, or technologies, or ordinary people. Therefore, every scientist should be a bit of a showman and in an understandable language in an accessible form tell a wide audience about their own results.

As part of the competition, I gave 8 lectures to schoolchildren. I immediately announced that I was ready to speak at schools, and I received many applications to give lectures. I talked about various interesting and useful facts from the world of mathematics, about how mathematics is used in real technologies. And even more interesting – how this science is shown in a funny way in all sorts of toys and puzzles, like the Rubik’s cube.

It is important for me that thanks to winning the competition, the geography of my performances will expand and I will be invited to give lectures not only to schools in Novosibirsk and the Novosibirsk region, but also to other cities and regions. I see special value in this and want young people to study mathematics more, because in the future they will be able to create technologies of the future with the help of this science, – said Timur Nasybullov.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

February 6, 2025
MIL-OSI China: Xi holds talks with Brunei’s Sultan

Source: People’s Republic of China – State Council News

BEIJING, Feb. 6 — Chinese President Xi Jinping held talks with Sultan of Brunei Haji Hassanal Bolkiah Mu’izzaddin Waddaulah in Beijing on Thursday, calling on the two countries to deepen mutually beneficial cooperation and strategic coordination.

Xi said that since the establishment of diplomatic ties more than 30 years ago, the two countries have continuously deepened political mutual trust, actively aligned development strategies, and achieved fruitful results in practical cooperation in various fields.

The two countries have also maintained good coordination in international and regional affairs, set an example of equality and mutual benefit between countries of different sizes, and made positive contributions to regional peace, stability, development and prosperity, he added.

Xi said the joint building of a China-Brunei community with a shared future conforms to the trend of the times, serves the fundamental interests of the two countries and two peoples, and opens a new chapter in bilateral relations.

He called on the two countries to deepen mutually beneficial cooperation and strategic coordination, respect and trust each other, and always be good neighbors facing each other across the sea, good friends trusting each other, and good partners for common development.

MIL OSI China News –

February 6, 2025

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*

Outlook

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 –

February 6, 2025

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

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 –

February 6, 2025

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 –

February 6, 2025
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.

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Published 6 February 2025
MIL OSI United Kingdom –
February 6, 2025
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 –

February 6, 2025

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

Full ING Group FY/4Q 2024 Press Release (PDF)

The MIL Network –

February 6, 2025

MIL-OSI Africa: Secretary-General’s message on the International Day of Zero Tolerance for Female Genital Mutilation [scroll down for French version]

Source: United Nations – English

emale genital mutilation is a horrific act of gender-based violence.

More than 230 million girls and women alive today are survivors of this abhorrent practice.

As one of the most brutal manifestations of gender inequality, female genital mutilation inflicts profound, lifelong physical and mental harm, carries life-threatening health risks, and violates the rights of women and girls to bodily autonomy, safety, and dignity.

Eradicating this vicious human rights violation is urgent, and it is possible.

As this year’s theme reminds us, we are making progress, but we must pick up the pace. We must strengthen global movements to break down harmful attitudes, beliefs and gender stereotypes. And we need to bolster strong partnerships between governments, grassroots organizations and survivors to supercharge efforts and eliminate this scourge by 2030.

The Pact for the Future, agreed at the United Nations last September, includes a commitment by Member States to eliminate female genital mutilation by tackling negative social norms and gender discrimination.

Let’s join forces to make female genital mutilation history and ensure a brighter, healthier, and more just future for all women and girls everywhere.

*****

Les mutilations génitales féminines sont d’atroces actes de violence de genre.

Plus de 230 millions de filles et de femmes actuellement en vie ont réchappé à cette pratique abominable.

Les mutilations génitales féminines sont l’une des manifestations les plus brutales de l’inégalité entre les genres : elles infligent des blessures physiques et psychologiques profondes et irréversibles, elles engendrent des risques mortels pour la santé et elles portent atteinte aux droits des femmes et des filles de disposer de leur corps et de vivre en toute sécurité et dans la dignité.

Il est urgent, et de surcroît possible, de faire disparaître cette violation barbare des droits humains.

Comme nous le rappelle le thème de cette année, nous avançons, quoiqu’il faille accélérer la cadence. Il nous faut renforcer les mouvements qui, à travers le monde, viennent à bout des comportements néfastes et déconstruisent les croyances pernicieuses ainsi que les stéréotypes préjudiciables liés au genre. Il nous faut en outre consolider les partenariats entre les pouvoirs publics, les organisations citoyennes et les survivantes pour amplifier les efforts et extirper ce fléau d’ici à 2030.

Dans le Pacte pour l’avenir adopté sous les auspices de l’Organisation des Nations Unies en septembre dernier, les États Membres se sont notamment engagés à éliminer les mutilations génitales féminines en luttant contre les normes sociales négatives et la discrimination fondée sur le genre.

Unissons nos forces pour reléguer les mutilations génitales féminines aux oubliettes de l’histoire et pour assurer à toutes les femmes et à toutes les filles, partout dans le monde, une meilleure santé ainsi qu’un avenir plus radieux et plus juste.

MIL OSI Africa –

February 6, 2025
MIL-OSI Russia: Sergei Sobyanin: Moscow is developing digital services in the cultural sphere

Translartion. Region: Russians Fedetion –

Source: Moscow Government – Government of Moscow –

Moscow has created an ecosystem of digital services that simplify interactions between city residents and cultural institutions. These include a single library card, a service for renting spaces in city cultural institutions, a ticket system on the mos.ru portal, and others. Sergei Sobyanin spoke about new functions and the development of digital services in the cultural sphere in his Telegram channel.

Source: Sergei Sobyanin’s Telegram channel @Mos_Sobyanin

Unified library card

Since 2018, apply single library card can be done in person at the city library. In 2021, the mos.ru portal launched an electronic service, “Obtaining a single library card,” with which users can obtain a digital version of the document. As of 2024, Muscovites have already issued about 1.2 million library cards. It is convenient to use the digital version of the single library card in the My ID mobile app.

A single library card can be linked to a school card “Moskvenok”. In this case, access to the funds of the capital’s libraries will be provided by the usual school key card. In addition, the ticket can be linked to a Muscovite card. Since 2021, readers have been finding, booking the books they need and extending their use using the service “Moscow Libraries” on the mos.ru portal. Here you can also view a list of events taking place in the capital’s reading rooms. And a recommendation system using artificial intelligence technologies will offer the user a selection of literature based on his tastes and booking history.

In 2024, Muscovites were given the opportunity to pick up publications from book machines — contactless street book distribution points. They were placed in 10 city parks. You can pick up a book from a book machine using a single library card. Residents of the capital have already received more than 2.8 thousand publications in this way.

Muscovites received over 6.6 million publications with a single library card in 2024 DIT reminded about useful functions of the service “Moscow Libraries”

Portal “Discover Moscow”

Information portal “Get to Know Moscow” was created in 2013 and became one of the first digital projects telling about the sights and history of the city. Today the portal presents 407 museums, 2341 buildings, 702 monuments, 490 memorial sites, 287 routes around the city, 32 virtual tours and 134 online quests.

The portal operates on the principle of a digital encyclopedia: each registered user can offer information about an object, which is verified before publication, and audiovisual elements.

The portal hosts contests and thematic quizzes. The “Poster” section contains a schedule of events held in Moscow’s cultural institutions.

The portal has mobile applications for Android and iOS. In 2024, a new type of content appeared in the mobile application “Discover Moscow” – users can see in augmented reality (AR) mode how buildings and structures that have not survived to this day would look in modern urban development. For example, the Red Gate, the Sukharev Tower, the building of the eighth Stalinist skyscraper and other historical architectural objects.

The portal “Learn Moscow” published an online quiz for the 270th anniversary of the founding of Moscow State University In 2024, the portal “Discover Moscow” was visited about six million times

City venue rental service

Since 2021, Muscovites can rent premises in city cultural institutions on the mos.ru portal to hold lectures, master classes, educational classes and other events. Today, the service “Together with culture” offers more than 1.5 thousand premises in 42 cultural institutions. Since the project’s creation, Muscovites have booked the capital’s venues more than 43 thousand times.

The service is used by both business representatives and ordinary citizens. In 2024, it was most often used by individuals, who mainly booked premises for master classes, meetings and trainings. Legal entities and individual entrepreneurs, as a rule, organized concerts, held rehearsals, seminars and lectures.

More than 20 thousand events were held on the sites of the “Together with Culture” service in 2024 The Moscow Department of Information Technologies told which sites can be rented in the “Together with Culture” service for events with children

Online services for enrolling in children’s art schools and clubs

In the summer of 2024, the mos.ru portal upgraded its online registration service for educational programs at children’s art schools, as well as for clubs organized in cultural centers, libraries, and parks. During the admissions campaign, about 10 thousand educational programs and clubs were available for registration. During the service’s operation, Muscovites have submitted about 700 thousand applications for enrollment of children in additional education institutions.

Mosbilet system

Mosbilet was launched in the fall of 2020. With this system, you can buy tickets to museums and theaters, rent and pay for city skating rinks, swimming pools and picnic areas. Today, 43 percent of tickets for events at city cultural institutions are purchased through this system, all of which are sold without a markup. Last year alone, more than 7.4 million tickets were issued through the system. It is expected that by the end of 2025, Mosbilet will be able to purchase tickets to all city cultural institutions.

How to use QR codes for tickets to events in Moscow cultural institutions Plan your leisure time and buy tickets: what else can the “Posters” section on mos.ru help with?

Ticket purchase service via Mos ID

In December 2024, a service for selling tickets to events in Moscow cultural institutions via Mos ID, an account on the mos.ru portal, was launched. Buying tickets through the city ticket system Mosbilet using a standard or full mos.ru account simplifies the process of entering data into the electronic ticket sales form: there is no need to enter the last name, first name, email address and phone number manually. Ticket QR codes are generated and displayed in the city mobile applications “My Moscow”, “Moscow State Services” and “My id”, as well as in your personal account on mos.ru. They can be shown at the entrance instead of a paper ticket. From March 15, 2025, when entering using a QR code from the application, visitors will not be required to present a document entitling them to do so.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please Note; This Information is Raw Content Directly from the Information Source. It is account to What the Source Is Stating and Does Not Reflect the Position of Mil-Sosi or Its Clients.

HTTPS: //vv.mos.ru/mayor/tkhemes/12350050/

MIL OSI Russia News –

February 6, 2025
MIL-OSI United Nations: Secretary-General’s message on the International Day of Zero Tolerance for Female Genital Mutilation [scroll down for French version]

Source: United Nations secretary general

Female genital mutilation is a horrific act of gender-based violence.

More than 230 million girls and women alive today are survivors of this abhorrent practice.

As one of the most brutal manifestations of gender inequality, female genital mutilation inflicts profound, lifelong physical and mental harm, carries life-threatening health risks, and violates the rights of women and girls to bodily autonomy, safety, and dignity.

Eradicating this vicious human rights violation is urgent, and it is possible.

As this year’s theme reminds us, we are making progress, but we must pick up the pace. We must strengthen global movements to break down harmful attitudes, beliefs and gender stereotypes. And we need to bolster strong partnerships between governments, grassroots organizations and survivors to supercharge efforts and eliminate this scourge by 2030.

The Pact for the Future, agreed at the United Nations last September, includes a commitment by Member States to eliminate female genital mutilation by tackling negative social norms and gender discrimination.

Let’s join forces to make female genital mutilation history and ensure a brighter, healthier, and more just future for all women and girls everywhere.

*****

Les mutilations génitales féminines sont d’atroces actes de violence de genre.

Plus de 230 millions de filles et de femmes actuellement en vie ont réchappé à cette pratique abominable.

Les mutilations génitales féminines sont l’une des manifestations les plus brutales de l’inégalité entre les genres : elles infligent des blessures physiques et psychologiques profondes et irréversibles, elles engendrent des risques mortels pour la santé et elles portent atteinte aux droits des femmes et des filles de disposer de leur corps et de vivre en toute sécurité et dans la dignité.

Il est urgent, et de surcroît possible, de faire disparaître cette violation barbare des droits humains.

Comme nous le rappelle le thème de cette année, nous avançons, quoiqu’il faille accélérer la cadence. Il nous faut renforcer les mouvements qui, à travers le monde, viennent à bout des comportements néfastes et déconstruisent les croyances pernicieuses ainsi que les stéréotypes préjudiciables liés au genre. Il nous faut en outre consolider les partenariats entre les pouvoirs publics, les organisations citoyennes et les survivantes pour amplifier les efforts et extirper ce fléau d’ici à 2030.

Dans le Pacte pour l’avenir adopté sous les auspices de l’Organisation des Nations Unies en septembre dernier, les États Membres se sont notamment engagés à éliminer les mutilations génitales féminines en luttant contre les normes sociales négatives et la discrimination fondée sur le genre.

Unissons nos forces pour reléguer les mutilations génitales féminines aux oubliettes de l’histoire et pour assurer à toutes les femmes et à toutes les filles, partout dans le monde, une meilleure santé ainsi qu’un avenir plus radieux et plus juste.

MIL OSI United Nations News –

February 6, 2025

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.”

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.

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.

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”.

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.

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.

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.

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 5^th, 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 31^st, 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

Societe-Generale-Q4-2024-Financial-Results-Press-release-en

The MIL Network –

February 6, 2025

MIL-Evening Report: We know how hard it is for young people to buy a home – so how are some still doing it anyway?

Source: The Conversation (Au and NZ) – By Rachel Ong ViforJ, John Curtin Distinguished Professor & ARC Future Fellow, Curtin University

PrasitRodphan/Shutterstock

For young Australians, breaking into the housing market feels tougher than ever. Many now fear they’ll never be able to own a home.

Despite public debates on whether it’s truly harder to buy a house than it was decades ago, falling homeownership rates across generations suggest the market has indeed shifted significantly against those just starting out.

But if it’s so difficult, how are some young people still managing to buy homes? Our newly published study set out to investigate the major barriers – and the factors – that might tip the scales in favour of ownership.

Despite the challenges imposed by high home prices relative to incomes, some young Australians are still finding a way onto the property ladder.

While being a good saver helps, a boost from the “bank of mum and dad” can be a game changer.

A fading dream

Using 14 years of data from the 2006-2020 government-funded Household, Income and Labour Dynamics in Australia (HILDA) survey, we tracked independent adults aged 25-44 who were not homeowners.

Our calculations from the HILDA survey show for those aged 25-44 , average house prices across major cities in 2006 were 4.5 times the average household income.

In Sydney, for example, the average price of properties faced by these young people was about A$600,000 in 2006 while the average household income was $102,000.

Across major cities, this ratio rose steadily to 6 times income in 2018, before dropping slightly to 5.4 times income at the start of the pandemic.

For young people in cities, house prices are spiralling upward at faster rates than their incomes.

A generous ‘bank’ available to some

As property markets have become more unaffordable, the share of non-homeowning young people receiving help from the “bank of mum and dad” has climbed.

We estimated from the HILDA survey that in 2006, 3.1% of this group received more than $5,000 in transfers or inheritance from their parents, rising to 5.3% by 2020.

Young people are good savers

Contrary to popular some commentary that young people are unable to purchase a house because they are spending their money on “smashed avocados”, young people are actually saving more.

In 2006, around two-thirds of non-homeowning adults aged 25-44 saved regularly by putting money aside each month, saved non-regular income, or saved money left over after they met their spending needs. This proportion increased to four in five of young non-homeowning adults in 2020.

In general, young non-homeowners are also financially planning further ahead. In 2006, 47% were planning more than a year ahead. By 2020, this share had risen to 55%.

How are some young people buying houses?

We looked at how the personal saving habits of young people influence their homeownership chances, taking each person’s finances and living situation into account.

Not surprisingly, saving regularly does improve the likelihood of eventually buying a house. However, being a regular saver is much less likely to offset the impact of rising prices than parental help.

Our research found that once prices exceed three times an individual’s income, their odds of becoming a homeowner are halved.

No, brunch is not to blame for the state of Australia’s housing market.
Tatiana Volgutova/Shutterstock

In much of Australia, prices are already well above that mark. In all state capitals, they’ve gone beyond six times annual household income – a line where the odds of homeownership fall to about a third.

However, we found having access to the “bank of mum and dad” can shift these odds dramatically.

We found receiving financial assistance of more than $5,000 quadruples the odds of becoming a homeowner.

Parents also help in indirect ways. Young people living in rent-free dwellings provided by family or friends had more than double the odds of private renters.

This puts those from well-off families at a distinct advantage. Those without parental assistance face steeper deposit hurdles and risk missing out on access to areas with better job prospects.

How governments can help

For those without parental assistance, governments have an important role to play. Property prices will continue to soar faster than incomes grow, unless policies are implemented to address both supply and demand challenges.

Loosening restrictions on mortgage borrowing could help some first homebuyers overcome the hurdle to homeownership. But there’s a worrying trade-off between making it easier to borrow and exposing young people to more financial risk.

Government grants that place more cash into the hands of first-time homebuyers will likely push house prices up further, unless supply of entry-level properties can keep up.

Such grants should also be carefully targeted to those without access to personal or family resources to help buy a home.

Finally, tax reforms could be used to increase the supply of dwellings in first homeowner entry markets, and hold back demand from multi-property owners who can crowd out first-time home buyers.

Read more:
Our housing system is broken and the poorest Australians are being hardest hit

Rachel Ong ViforJ is the recipient of an Australian Research Council Future Fellowship (project FT200100422). She also receives funding from the Australian Housing and Urban Research Institute.

Christopher Phelps and Jack Hewton do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. We know how hard it is for young people to buy a home – so how are some still doing it anyway? – https://theconversation.com/we-know-how-hard-it-is-for-young-people-to-buy-a-home-so-how-are-some-still-doing-it-anyway-248666

MIL OSI Analysis – EveningReport.nz –

February 6, 2025
MIL-OSI Video: Tariffs, globalization, and democracy, with Harvard economist Dani Rodrik

Source: World Economic Forum (video statements)

Dani Rodrik has long argued against unfettered globalization and supports countries’ use of industrial policy to pursue economic development.

The Harvard economist joins us to talk about the usefulness and limitations of trade tariffs, economic nationalism, and the impact of global economics on democracy.

Catch up on all the action from the Annual Meeting 2025 at wef.ch/wef25 (http://wef.ch/wef25) and across social media using the hashtag #WEF25.

Links:

World Economic Forum Centre for Regions, Trade and Geopolitics (https://centres.weforum.org/centre-for-regions-trade-and-geopolitics/home) : https://centres.weforum.org/centre-for-regions-trade-and-geopolitics/home From Blind Spots to Insights: Enhancing Geopolitical Radar to Guide Global Business: https://www.weforum.org/publications/from-blind-spots-to-insights-enhancing-geopolitical-radar-to-guide-global-business/ Related podcasts:

What just happened in Davos, and how is the world different now? (https://www.weforum.org/podcasts/radio-davos/episodes/davos-2025-what-just-happened/) The global economy ‘at a crossroads’ ahead of Davos: Chief Economists Outlook (https://www.weforum.org/podcasts/radio-davos/episodes/chief-economists-outlook-ralph-ossa-wto/)

Global Risks Report: the big issues facing the world at Davos 2025 (https://www.weforum.org/podcasts/radio-davos/episodes/global-risks-report-2025/)

IMF’s Gita Gopinath: What’s ahead for economic growth in 2025 (https://www.weforum.org/podcasts/meet-the-leader/episodes/gita-gopinath-imf-economic-outlook/)

Check out all our podcasts on wef.ch/podcasts (http://wef.ch/podcasts) :

YouTube: (https://www.youtube.com/@wef/podcasts) – https://www.youtube.com/@wef/podcasts

Radio Davos (https://www.weforum.org/podcasts/radio-davos) – subscribe (https://pod.link/1504682164) : https://pod.link/1504682164

Meet the Leader (https://www.weforum.org/podcasts/meet-the-leader) – subscribe (https://pod.link/1534915560) : https://pod.link/1534915560

Agenda Dialogues (https://www.weforum.org/podcasts/agenda-dialogues) – subscribe (https://pod.link/1574956552) : https://pod.link/1574956552

Join the World Economic Forum Podcast Club (https://www.facebook.com/groups/wefpodcastclub) : https://www.facebook.com/groups/wefpodcastclub

https://www.youtube.com/watch?v=w_Mj61EUEFg

MIL OSI Video –

February 6, 2025

MIL-OSI Australia: (WIP) New industry standards for online safety: what service providers need to know

Source: Allens Insights

Deadline to carry out risk assessments is fast approaching 8 min read

Certain online service providers must complete a risk assessment and implement required compliance measures by 21 June 2025. This relates to the following types of material:

child sexual exploitation
pro-terrorism
extreme crime and violence (Class 1A material)
crime and violence
drug-related material (Class 1B material).

This is required by two industry standards referred to as the Phase 1 Standards:

Online Safety (Relevant Electronic Services)—Class 1A and Class 1B Material) Industry Standard 2024 (the RES Standard); and
Online Safety (Designated Internet Services—Class 1A and Class 1B Material) Industry Standard 2024 (the DIS Standard).

In this Insight, we cover who needs to carry out a risk assessment and the obligations that two new industry standards impose.

Key takeaways

The Phase 1 Standards came into effect on 22 December 2024.

As soon as practicable, and by no later than 21 June 2025, providers of certain relevant electronic services (RES) and designated internet services (DIS) must conduct their own risk assessment to determine the likely risk of class 1A ¹ and class 1B² materials being accessed, generated, distributed or stored using their service.
The Phase 1 Standards impose a range of obligations depending on the service provider’s risk tier (ie Tier 1 (high), Tier 2 (medium) or Tier 3 (low)), or the type of service it is pre-assessed or defined to be if it has a unique risk profile (eg a High impact generative AI DIS or a dating service).
New regulation of the access and exposure to class 1C³ and class 2⁴ material on service providers is forthcoming. By no later than 28 February 2025, industry bodies will submit the phase 2 industry codes for the eSafety Commissioner (the Commissioner) to assess whether they should be registered under the Act.
The Government also tabled the statutory review of the Online Safety Act on 4 February 2025. It contains 67 recommendations, most notably: introducing a digital duty of care, raising the civil penalties for non-compliance and empowering the Commissioner with greater investigative, information-gathering and monitoring powers. The Government has not currently proposed any legislation to implement the recommendations, but it is a key area to watch with the federal election looming.

How did we get here?

The Act provides for industry bodies to develop new codes to regulate Class 1 and Class 2 materials. The industry bodies (including the Communications Alliance, Australian Mobile Telecommunications Association, Digital Industry Group, and Interactive Games and Entertainment Association) adopted a two-phase approach to develop these codes.

During phase 1, industry bodies drafted eight codes to regulate Class 1A and Class 1B material. Six of these industry codes were registered in 2023, and they apply to the following sections of the online industry: social media services, app distribution services, hosting services, internet carriage services, equipment providers and search engine services. The other two codes were not registered because the Commissioner was not satisfied that they provided appropriate community safeguards. As a result, the Commissioner developed and registered the RES Standard and DIS Standard.

Development of the phase 2 industry codes have been underway since July 2024, with public consultation concluding on 22 November 2024. These codes are intended to deal with class 1C and class 2 materials, which includes online pornography and other high-impact material.

Phase 1 Standards

The Phase 1 Standards apply to two sections of the online industry—providers of RESs and DISs

RES	DIS
A service that enables end-users in Australia to communicate with other end-users by: email instant messaging SMS MMS chat services as well as: services that enable end-users to play online games with each other; and online dating services. Note: A service that meets the definition of a RES will be required to comply with the RES Standard, regardless of whether it also meets the definition of another industry section.⁵	A service that: allows end-users in Australia to access material using internet carriage services; or delivers material to persons who have the appropriate equipment for receiving that material via an internet carriage service. *Note:* This is a very broad category that includes many apps and websites, as well as file and photo storage services, and some services that deploy or distribute generative artificial intelligence models.⁶ A DIS is expressly not: a social media service; a RES; an on-demand program service; or other specified and exempt services.⁷ A service that meets the definition of a DIS will be required to comply with the DIS Standard, unless the service’s predominant purpose is more closely aligned with another industry code or industry standard.⁸

RES

DIS

A service that enables end-users in Australia to communicate with other end-users by:

email
instant messaging
SMS
MMS
chat services

as well as:

services that enable end-users to play online games with each other; and
online dating services.

Note: A service that meets the definition of a RES will be required to comply with the RES Standard, regardless of whether it also meets the definition of another industry section.⁵

A service that:

allows end-users in Australia to access material using internet carriage services; or
delivers material to persons who have the appropriate equipment for receiving that material via an internet carriage service.

Note: This is a very broad category that includes many apps and websites, as well as file and photo storage services, and some services that deploy or distribute generative artificial intelligence models.⁶ A DIS is expressly not:

a social media service;
a RES;
an on-demand program service; or
other specified and exempt services.⁷

A service that meets the definition of a DIS will be required to comply with the DIS Standard, unless the service’s predominant purpose is more closely aligned with another industry code or industry standard.⁸

The RES Standard and DIS Standard classifies certain service providers as ‘pre-assessed’ or ‘defined’ categories. A service provider that falls within either the pre-assessed or defined categories is not required to conduct its own risk assessment. Instead, it is deemed to either fall within a particular risk tier, or it has a unique risk profile such that no specific risk tier is attributed to it.

Service providers that are not captured in the table below must conduct their own risk assessment or default to assigning the service a Tier 1 risk profile.⁹

RES Standard

DIS Standard

Pre-assessed category:

Communication relevant electronic service
Gaming service with communication functionality
Dating service

Pre-assessed category:

High impact DIS
Classified DIS
General purpose DIS
Enterprise DIS

Defined category:

Telephony RES
Enterprise RES
Gaming service with limited communication functionality

Defined category:

End-user managed hosting service
High impact generative AI DIS
Model distribution platform

The risk assessment must be undertaken by a person with the relevant skills, experience and expertise to carry it out.¹⁰

The Phase 1 Standards require certain matters to be taken into account, so far as they are relevant to the service, to determine the overall risk tier for it.¹¹ These are summarised below. Depending on the nature of a service and the context it operates in, service providers are likely to have additional risk factors to consider beyond the ones below.

Applicability to RES or DIS

Matters to be taken into account for risk assessment

Both RES and DIS

Predominant purpose of the service
Functionality of the service¹²
Extent to which material posted on, generated by or distributed using the service will be available to end-users of the service in Australia
Terms of use for the service
Terms of arrangements under which the provider acquires content to be made available on the service
Ages of end-users and likely end-users of the service
Outcomes of the forward-looking analysis conducted under section 8(4) of the RES Standard and DIS Standard
Safety by design guidance and tools published or made available by a government agency or a foreign or international body
Risk to the online safety of end-users in Australia in relation to material generated by artificial intelligence.

DIS only

Manner in which material is created or contributed to in connection with the service
Whether the service includes chat, messaging or other communications functionality
Risk that any generative AI features of the service will be used to generate high-impact materials
Design features and controls deployed to mitigate the risks related to material generated by AI and high-impact materials generated by generative AI features of the service

Obligations that flow from risk assessment

The Phase 1 Standards impose a range of obligations depending on the service provider’s risk tier arising from the risk assessment (ie Tier 1, Tier 2 or Tier 3), or the type of service it is pre-assessed or defined to be if it has a unique risk profile (eg Telephony RES, High impact generative AI DIS or dating service).

A high-level summary of the obligations that may be applicable to certain RESs and DISs include:

Implement, enforce and publish relevant terms of use.
Ensure that there are systems in place to address circumstances where there is a breach of terms in respect of class 1A and class 1B material, including processes to report such material to an enforcement authority if it represents a serious and immediate threat to a person in Australia.
Implement a system for disrupting access and distribution of class 1A materials through the RES or DIS.
Implement a system to detect and remove class 1A materials that is accessible through the RES or DIS.
Implement reporting arrangements to ensure compliance with the Phase 1 Standards.
Ensure that features and settings that would minimise the risk of class 1A or class 1B material are incorporated before material changes are made to the service.
Ensure end-users can effectively control associated communication functions.
Implement policies, procedures and mechanisms to report or make complaints, and to respond to complaints.
Notify the Commissioner of proposed changes to the features and functions of the service, unless the change will not significantly increase the relevant risk.
Cooperate with and report to the Commissioner as required.

What’s next?

The Commissioner has stated that no enforcement action will be taken in the first six months of the Phase 1 Standards coming into effect, apart from in exceptional circumstances—eg in response to serious or deliberate non-compliance. The initial focus will be on working with industry bodies and service providers to raise awareness of their obligations under the Phase 1 Standards.¹³

The Commissioner has a range of enforcement options under the Act to address non-compliance with the Phase 1 Standards. These include:

a formal warning
an enforceable undertaking
an injunction
an infringement notice
civil penalty proceedings or a court order requiring a service provider to cease its service.

Notably, failure to comply with the Phase 1 Standards may, currently, result in a penalty of up to $49.5 million.¹⁴ Service providers should promptly take proactive measures to ensure they are complying with their obligations under the Phase 1 Standards (including conducting a risk assessment if necessary) to avoid enforcement action by the Commissioner, which may commence from 22 June 2025.

Service providers should also be aware that new regulation of the access and exposure to class 1C and class 2 material is forthcoming. The Commissioner will undertake an assessment of whether the draft phase 2 industry codes meet the statutory requirements when they are submitted for registration, which must be no later than 28 February 2025.

Review of Online Safety Act

On 4 February 2025, the Government tabled the statutory review of the Online Safety Act (the Report). This independent review was initially delivered to the Government in October 2024 and makes 67 recommendations aimed at strengthening Australia’s online safety framework.

Key recommendations in the Report include:

Legislating a statutory digital duty of care that is intended to place the onus on digital platforms to prevent online harms.
Raising the civil penalties for breaches of the Act (ie the maximum penalty to be increased to the greater of 5% of global annual turnover or $50 million).
Empowering the Commissioner with stronger investigative, information-gathering and enforcement powers, such as the power to require certain providers of online service to undertake compliance audits at their own expense.
Requiring providers of services with the greatest reach or risk to provide an annual transparency report and publish a summarised version on its website.

There is currently no proposed legislation (or timetable for legislation) to implement the recommendations, but the Government has said it will continue to carefully consider all recommendations put forward in the Report and respond in due course. With the federal election looming, the Government’s (and Opposition’s) response to online safety reform is a key area to watch.

MIL OSI News –

February 6, 2025

MIL-OSI Asia-Pac: Policy on mediation implemented

Source: Hong Kong Information Services

A policy incorporating mediation clauses in government contracts came into effect today.

The Department of Justice (DoJ) explained that the clauses outline that contract parties agree to use mediation to resolve disputes first before resorting to arbitration or litigation.

In addition, the DoJ today promulgated “The Government of the Hong Kong Special Administrative Region Mediation Rules (2025 Edition)”. It stressed that these shall not affect the operation of “The Government of the Hong Kong Special Administrative Region Construction Mediation Rules (1999 Edition)”.

The implementation of mediation clauses follows the issuance of a Policy Statement on the Incorporation of Mediation Clauses in Government Contracts on November 6 last year.

The DoJ said it anticipates that private organisations will make reference to and adopt similar mediation clauses in their own contracts, thereby deepening a “mediate first” culture.

MIL OSI Asia Pacific News –

February 6, 2025
MIL-OSI Australia: Investing to promote higher quality supports for NDIS participants

Source: Ministers for Social Services

6 February 2025

Joint with:

The Hon Amanda Rishworth MP
Minister for Social Services
Minister for National Disability Insurance Scheme

The Hon Dr Anne Aly MP
Minister for Early Childhood Education
Minister for Youth
Minister Assisting the Minister for the National Disability Insurance Scheme

Ensuring every NDIS participant has access to the highest quality supports will be the focus of two new pilots to commence this year.

Grant rounds will this week open for the two 12-month pilots – the Support Coordination Pilot and Supported Independent Living Pilot – that will help set a benchmark for quality and pricing.

Registered providers only will be invited to apply.

Supported Independent Living is one type of Home and Living support and includes help or supervision in the home with daily tasks, such as personal care or cooking meals. SIL helps NDIS participants live as independently as possible, while building their capacity and skills.

Support coordinators assist NDIS participants to understand and implement supports included in their plan. They link the participant to providers and other community and government services. A support coordinator will also support the participant to build skills and direction.

The two pilots will be run by the National Disability Insurance Agency and providers will be financially incentivised for participating if they demonstrate high quality.

An analysis will then be conducted and the pilots will inform future approaches to ensure taxpayers and participants get the best value for money for services provided.

The pilots will evaluate the characteristics of quality service provision, and costs and outcomes associated with providing quality services, including to participants who have complex support needs and are at risk of not receiving supports.

Learnings from the pilots will inform the NDIA’s role as market steward, as the Agency continues to review current NDIS pricing models as part of its commitment to a revised pricing approach.

A further pilot will be released later this year which will focus on smaller SIL providers, such as those who deliver more bespoke services, those who support regional and remote communities, and those who specialise in service provision for First Nations and CALD participants.

“We want to ensure we have the right supports that demonstrate high quality and the best use of taxpayer money,” Minister Rishworth said.

“The highest quality supports for participants will in turn lead to better outcomes. We don’t want quality to be a lottery.

“These pilots will help ensure the NDIA has the information and insights it needs to deeply understand how providers are working to offer quality supports, and the cost of delivering these supports.”

Minister Assisting the Minister for the National Disability Insurance Scheme Anne Aly said, these initiatives will provide us with valuable insights, driving quality improvements across the NDIS.

“Working with established, high-quality providers, we can ensure that participants, particularly those with high and complex needs, continue to have access to quality care and services that meet those needs.” Minister Aly said.

The two pilots follow significant reforms to the NDIS to ensure the Scheme’s sustainability for generations to come.

December data shows the Scheme remains in line with forecasts of 12 per cent growth in costs this financial year, before coming down to the National Cabinet target of 8 per cent growth next year.

“These savings are built on significant reform to support participants to spend in line with their funding period, rather than exhausting all of their funding too soon,” Minister Rishworth said.

“This strengthening of the NDIS will ensure every dollar in the Scheme goes towards quality supports for participants.”

MIL OSI News –

February 6, 2025
MIL-OSI Australia: Remarks to the Business Council of Australia Dinner

Source: Australian Treasurer

Thanks to Bran for the invitation, Geoff for the introduction and to you all for being here.

It’s a pleasure to be back for this annual gathering on Ngunnawal and Ngambri land. I acknowledge, as Geoff did, elders, customs and traditions.

I know I speak for Mark, Katy, Don, Chris, Murray and Andrew when I say our attendance is a symbol of our appreciation for your engagement with us on economic policy.

It’s also another chance to thank you for the jobs and opportunities you create around Australia.

And from a personal point of view, to thank you for the opportunity we have to catch up every month or 2 with the board or other small groups, to compare notes.

This bigger gathering is timely in political terms with an election due by May.

It’s also timely from an economic perspective.

We’ve seen really important data released in the last month, a new administration in the US making some big announcements, some volatility in markets as well.

I want to focus almost exclusively on economics tonight.

Because 2 inflation readings and the jobs figures have brought the soft landing we have been working towards into sharper focus.

Last week’s CPI data saw underlying inflation fall to a 3‑year low and headline inflation fall to an almost 4‑year low.

That represents the sharpest moderation in a parliamentary term since inflation targeting began.

Even more extraordinary that we’ve made this substantial and sustained progress on inflation at the same time as we’ve seen the creation of more than 1.1 million new jobs.

I put it this way because I think we’re on the cusp of achieving something remarkable, together.

Inflation is down, unemployment is still low, and, unlike most of our peers, we’ve avoided even one negative quarter of growth.

You’d know and appreciate how unusual this is in historical terms and in contemporary global experience as well.

Every other time we’ve gone through an inflation spike, it’s been followed by higher unemployment.

On other occasions and now in most other advanced economies progress on inflation has been paid for with much higher unemployment and negative quarters of growth.

Since the start of 2022 every major advanced economy, and two-thirds of the OECD, has gone backwards at least once.

We’ve made as much or more progress on inflation without paying that price.

Before I get carried away here let me acknowledge 3 important truths.

Australians are still under very substantial if not severe financial pressure – we get that.

Our economy is not productive enough – more on that shortly.

And our economy is barely growing – an inevitable consequence of higher interest rates and global pressures.

In this soft economy there have still been some remarkable developments we shouldn’t dismiss or diminish:

The lowest average unemployment rate for any government in 50 years.

Stronger employment growth than any major advanced economy.

Four in every 5 of the 1.1 million jobs created in the private sector.

More jobs created in the market sector than any first‑term government on record.

Record labour force participation.

The strongest rate of real wage growth since 2020 – and now 4 consecutive quarters of annual real wage growth.

The narrowest gender pay gap on record.

Unemployment at 4 per cent and inflation below 3 per cent at the same time, for the first time in half a century.

The highest level of business investment in over a decade, in the last financial year.

25,000 new businesses created each month this term, the highest average on record.

27 share market record highs since the election –

25 per cent growth in household wealth via super and shares as a result.

The biggest nominal improvement in the budget in a Parliamentary term.

The first back‑to‑back surpluses in almost 2 decades.

We know the job’s not done and the economy is not yet what we want it to be but there is progress to be proud of too.

I run through this list not to take the credit, but to share it.

Because our exceptionalism is the result of governments, employers and employees all doing their bit.

This is the soft landing we’ve been planning and preparing for.

We decided we’d rather deliver a soft landing than clean up after a hard one.

It’s why our economic plan was always about fighting inflation without ignoring risks to growth.

Public demand has played a role in keeping the economy from going backwards over the past 2 years.

But we know that the best kind of strong and sustainable economic growth means growth led by the private sector.

When I’ve said this on many occasions before, I’ve seen it written up as some kind of reluctant admission, but I think it’s just common sense.

Our economy is at its best when it’s private companies powering growth and propelling us forward.

This is what guides our productivity agenda.

It has 5 pillars:

Creating a more dynamic and resilient economy.

Building a skilled and adaptable workforce.

Harnessing data and digital technology.

Delivering quality care more efficiently.

Investing in cheaper, cleaner energy and the net zero transformation.

We’ve asked the Productivity Commission for a big piece of work on each pillar, deliberately timed for the second half of this year to inform whoever wins the election.

But we haven’t been waiting for those inquiries to land.

We’ve already put in place some substantial and under‑recognised policy:

Abolishing 500 nuisance tariffs.

Introducing comprehensive competition reforms.

The biggest overhaul to merger settings in 50 years.

Better designing and informing our capital markets.

Reforming our foreign investment framework.

A $900 million National Productivity Fund.

Record investment in skills.

The Universities Accord.

Finishing the NBN.

Investing in quantum computing.

Reforming the NDIS.

Unlocking tens of billions in private investment via the Capacity Investment Scheme.

Realising net zero industrial opportunities through a Future Made in Australia –

Like our green hydrogen, critical minerals, and green aluminium production incentives.

This list isn’t exhaustive but it’s indicative and I use it to make this point:

There was a big focus on productivity in this first term and there will be an even bigger focus in a second, should we win one.

Let me give you a couple of examples.

Take regulation.

Here I pay tribute to all the work Katy has been driving to harmonise standards, streamline accreditation and make it easier to export Australian goods.

This year, we’ll also stand up our single front door for investors –

And I can let you know tonight I’ve asked Danielle Wood to look into how we can further streamline regulation as part of the inquiries the PC are doing on our 5 pillars.

This is all aimed at making it easier to invest, easier to hire, easier to trade and easier to do business in Australia.

Historically, more than half of our productivity growth has come from working smarter – combining our skills and capital resources in more efficient and innovative ways.

Here it’s AI and the digital economy where we see huge opportunities.

You only need to look at the events of the last few weeks to get a sense of the scale and breadth of the sweeping change AI presents.

From the Americans announcing the $800 billion Stargate AI project one day –

To Chinese start‑up DeepSeek causing $1 trillion to be wiped from Nvidia’s market cap – the biggest one‑day rout in the history of the US share market.

It’s clear AI will become a bigger part of our economy and lives.

How we respond will shape the future.

Australia is among the top 5 global destinations for the data centre infrastructure AI depends on.

Our reputation and software development know‑how also means we’re a priority market for AI app development.

Already 70 per cent of Australian businesses have implemented AI and another 20 odd per cent are planning to in the next year.

It’s a big focus for us now and will be over the coming years.

Ed has already done a lot of work on how we get the policy settings right – including how to make sure AI is deployed safely and sustainably.

Our focus with AI is also on the huge gains on offer, not just the guardrails.

We want to continue to build and foster innovation, so more workers and more businesses adapt and adopt AI to their advantage.

And also give investors clarity and certainty to invest in AI infrastructure in Australia with confidence.

That will be a big focus our National AI Capability Plan for Australia.

We want you to bring forward your ideas, your innovation and your ambition to shape that plan.

We’ll always listen when you do –

We read with interest the BCA’s 2025 election platform this week, with technology, AI and deregulation all featuring.

Because we know to make the momentous changes happening in the digital economy, energy transformation, services sector, geopolitics and demographics work for us, your ideas and insights will be key.

The patterns of history tell us what happens when our relationship is at its best.

Those of you who have heard me speak a lot will recognise my obsession with our fourth economy.

Let me put this in some broader context.

You all spend as much time in airport bookshops as me.

And you’re all probably bigger readers than I am when it comes to investing and market cycles.

So I know you’d all be familiar with people like Ray Dalio, George Friedman, or Neil Howe and William Strauss.

They’re all grappling with a similar question:

Where do we fit in the bigger sweep of economic history and how should that inform our strategy?

In the US, 80‑year historical cycles lead from one kind of society and economy to the next.

For Australia it’s more like 40‑years.

Every 4 decades or so from the 1900s we have transformed our economy.

From largely agrarian at the start of the 20th century.

To one that was industrial and protected after the Second World War.

And then unshackled and opened up to the world in the 1980s.

Every time one of these 3 economies has taken shape the private sector has been at the forefront of the transformation.

In the 1900s it was the wool and wheat industries.

In the 1940s it was manufacturing, underpinned by trade agreements which supported our domestic and export industries.

And 40 years later, it was the services and financial sector – new drivers of growth unlocked as Labor dismantled the tariff wall and floated the dollar.

The BCA itself came to life during one of these seismic shifts – following Bob’s National Economic Summit in 1983.

It’s 4 decades since we unleashed our third economy –

And we’re now building a fourth, transformed by technology and powered by cleaner and cheaper energy.

An economy that ensures Australians are primary beneficiaries of all the churn and change occurring around the world.

Over the last 15 years, we’ve seen 3 major economic shocks, war, and tensions in our region.

At the same time as the big 5 shifts identified in our Intergenerational Report transform the world.

From globalisation to fragmentation;

From hydrocarbons to renewables;

From information technology to AI;

From a younger population to an older one;

And changes to our industrial base.

All this is shaped by a pronounced slowdown in China, a new administration in the US with new priorities, and an uncertain outlook for Europe and the Middle East.

The fourth economy is about how we make Australia an island of opportunity and prosperity in a sea of uncertainty.

Modernising our economy, managing pressures, and maximising our advantages.

We see a powerful and pre-eminent place for the private sector in the future we will build together.

Propelling our growth and pushing us forward.

Innovating and investing.

Employing and upskilling.

Our political opponents want to pick fights with you on cultural issues and take the country backwards, divided.

We want to work with you on the economy to take the country forwards, together.

We know we wouldn’t be approaching this soft landing without you.

And we know that we can’t build Australia’s fourth economy without you either.

For all these reasons I’m looking forward to the discussion tonight.

MIL OSI News –

February 6, 2025
MIL-OSI Australia: Address to OECD International Workshop on Rigorous Impact Evaluation Approaches including Randomised Controlled Trials

Source: Australian Treasurer

As is customary in Australia, I acknowledge the Ngunnawal people, on whose lands I am recording these remarks, and all First Nations people joining this international workshop.

Thank you to our OECD Public Management and budgeting colleagues, Jon Blondal, Andrew Blazey and the team for helping to coordinate this event and offering me the opportunity to provide this opening address. This event is being run by the OECD in collaboration with the Australian Centre for Evaluation in the Department of the Treasury. The Australian Government is delighted to be contributing to global efforts to advocate for better evidence. And we are keen to connect with international endeavours that promote its generation, synthesis and sharing in public policy.

Today, I want to discuss how countries can collaborate to better create and use evidence. This is a substantial reform. Indeed, I argue that randomised trials and better use of evidence isn’t just another worthy public policy tweak. It’s bigger than that. Much bigger. Effectively using evidence to make policy decisions is a public administration reform on par with the biggest changes in good government that humanity has put into place. It is the seventh phase of good government.

Let’s take a quick moment to run through the major milestones in the history of public administration.

Six big reforms in the history of public administration

Throughout history, there have been 6 big reforms in public administration.

The first was the rise of bureaucracy and professionalised governance. It was during the 18th and 19th centuries that public administration shifted from patronage and informal systems to emphasising impartiality, specialisation, and accountability. Democratic institutions and a robust civil society provided the conditions for an independent and accountable civil service.

The second big reform occurred in the early 20th century. The efficiency revolution – scientific management of public administration that focused on efficiency and rational organisation – was inspired by industrial principles.

In response to economic crises and post‑WWII recovery, we saw the rise of the third big reform – the welfare state and the expansion of government responsibilities in social welfare, healthcare and economic planning.

The fourth big reform in public administration in the late 20th century was market‑oriented governance. We saw governments adopt private‑sector practices like outsourcing, performance metrics, and competition.

Concerns about accountability also carried through to the fifth big historic reform – the era of digital transformation and e‑governance. The early 21st century saw technology revolutionise public administration. It enabled data‑driven decision‑making and citizen engagement.

Building on the lessons learnt during the digital transformation, the past decade has seen the move towards adaptive governance – the sixth big reform in public administration. Top‑down processes were swapped out for more flexible, collaborative and cross‑sector approaches that embrace ‘long‑term systems thinking’ to address interconnected crises such as climate change (Brunner and Lynch 2017).

Each of these 6 big reforms from the past 3 centuries has helped to reshape government and improve citizens’ lives.

The seventh big reform in public administration: randomised trials

Today I want to argue that we are on the cusp of a seventh big reform in public administration.

It will involve the widespread adoption of randomised trials as a means of testing policies by providing a counterfactual.

This reform should include the synthesis of quality evidence about what works, and what doesn’t, to provide public administrators with irrefutable knowledge that can improve people’s lives.

Let’s consider a couple of examples to see how this might work in practice.

Eye care is often a neglected field of public health in developing economies.

In rural Bangladesh, a randomised trial of providing free reading glasses involved more than 800 adults with jobs requiring close attention to detail, such as tea pickers, weavers, and seamstresses (Jacobs 2024). The study found that when workers were given free reading glasses, they earned 33 per cent more than those who were not given glasses (Sehrin et al. 2024).

Speaking to The New York Times, Dr Nathan Congdon, one of the authors of the study findings, said that ‘…what makes the results especially exciting is the potential to convince governments that vision care interventions are as inexpensive, cost‑effective and life‑changing as anything else that we can offer in healthcare’ (Jacobs 2024).

As well as garnering evidence on what does work, the widespread adoption of randomised trials must also include quality evidence about what doesn’t work.

In 2014, the US state of Massachusetts launched a 4‑year intervention program called the Juvenile Justice Pay for Success Initiative (Patrick DL 2014). The program aimed to reduce recidivism and improve employment outcomes in young men who were at high risk of re‑offending (Third Sector 2024).

The initiative involved an experimental financial contract called ‘Pay For Success’ – also known as a social impact bond. Funders assumed the US$27 million up‑front financial risk. And the government would only refund the cost of the program if a third‑party evaluator and validator determined that the initiative achieved a reduction in the number of days the young men spent in jail, and improvements in their employment and job readiness (Patrick DL 2014).

At the end of the 4‑year program, a randomised trial found no discernible effects on reincarceration or employment (Coalition for Evidence‑Based Policy 2025). Neither the recidivism nor employment outcomes were sizable enough to trigger the repayment under the pay‑for‑success contract (Roca et al. 2025).

Why randomised trials should be prioritised over other forms of evaluation

When the evaluation of a social program does not produce the hoped‑for results, it’s difficult to avoid feelings of disappointment.

But this has been the reality for some time.

We know from the history of large, well‑conducted randomised trial evaluations that only a small percentage find that the intervention being evaluated produces a meaningful improvement over the status quo.

As Peter Rossi attested in his 1987 Iron Law of Evaluation, ‘The expected value of any net impact assessment of any large‑scale social program is zero’ (Arnold Ventures 2018a).

But here’s the light on the hill.

The ‘iron law’ applies to most fields of research. That includes medicine, where 50–80 per cent of positive results from initial clinical studies are overturned by a subsequent randomised trial (Arnold Ventures 2018a).

In medicine, the move towards randomised trials continues to save lives and stop unnecessary interventions.

For every new treatment such as AIDS drugs, the HPV vaccine and genetic testing – medicine has discarded old ones, like bloodletting, gastric freezing and tonsillectomy (Leigh 2018).

The willingness to test cures against placebos, or the best available alternative, is how we make progress. In public policy, we can do the same. If it works, we use it; if not, it’s back to the lab.

The central goal of evaluation: finding interventions that work

The key is having a big, ambitious goal to strive towards.

I propose the primary goal of government evaluation should be to find interventions that work.

More specifically – to build a body of programs backed by strong, replicated randomised trial evidence of important, lasting improvements in people’s lives.

In other words, evidence that provides policymakers with confidence that if another jurisdiction were to implement the program faithfully in a similar population, it would improve people’s lives in a meaningful way.

Imagine being able to confidently draw from a codified body of social programs and interventions that your jurisdiction could test, deploy and regulate.

In the United States, the Coalition for Evidence‑Based Policy points towards Saga Education, a high‑dosage mathematics tutoring program for year 9 and 10 students in low‑income US schools that underwent 3 rigorous randomised trials. This program produced sizable, statistically significant effects on students’ maths scores on the district tests at the end of the tutoring year (Arnold Ventures 2024a). I’ll come back to this program a bit later.

Similarly, the Coalition for Evidence‑Based Policy points to 2 job‑training programs for low‑income adults that were both shown to increase long‑term earnings by 20 to 40 per cent. These programs focused on the fast‑growing IT and financial services sectors, where jobs are well paid, and employees are in high demand (Arnold Ventures 2022a and 2022b).

Finding interventions that work should be evaluators’ central goal. It is the only plausible path by which rigorous evaluations will improve the human condition. If we don’t allocate spending based on rigorous evidence, it is hard to see how governments can make progress on critical social problems.

Here in Australia, a think tank study examined a sample of 20 Australian Government programs conducted between 2015 and 2022 (Winzar et al. 2023).

Their report concluded that 95 per cent of the programs, which had a total expenditure of over A$200 billion, were not properly evaluated. And its analysis of Australian state and territory government evaluations reported similar results.

The researchers noted that the problems with evaluation started from the outset of program and policy design. They also estimated that fewer than 1.5 per cent of government evaluations use a randomised design (Winzar et al. 2023).

This finding echoes the Australian Productivity Commission’s 2020 report into the evaluation of Indigenous programs (Productivity Commission 2020).

This report concluded that ‘both the quality and usefulness of evaluations of policies and programs affecting Aboriginal and Torres Strait Islander people are lacking’, and that ‘Evaluation is often an afterthought rather than built into policy design’ (Productivity Commission 2020).

Finding what works: using strong signals from prior research

If we accept that the central goal of evaluation is to find interventions that work, there are important implications for researchers and research funders.

It means that it makes sense to evaluate an intervention, using a large randomised trial, only if there is a strong signal in prior research.

Examples of prior research could include a pilot randomised trial, a high‑quality quasi‑experiment, or a randomised trial of a related program.

This is the approach that Arnold Ventures is taking in the US via the Coalition for Evidence‑Based Policy, the US nonprofit relaunched under the leadership of Jon Baron (Coalition for Evidence‑Based Policy n.d.).

Rigorous testing enabled Arnold Ventures to create a growing body of proven interventions in education and training (Coalition for Evidence‑Based Policy n.d.). It’s an approach also being used by the US Department of Education in its Investing in Innovation Fund, which was recently renamed the Education Innovation and Research Program. It has yielded a much higher success rate in identifying interventions with true effectiveness. In 2019, robust evidence standards used by the Fund (as it was at the time) resulted in positive impacts for 40 to 50 per cent of its larger grants.

Compare this to the US Department of Health and Human Services’ Teen Pregnancy Prevention Program, which had a much lower hit rate of success – just 17 per cent – for its larger grants (Arnold Ventures 2019).

Arnold Ventures (2018b) proposes a strategy for policy and researchers that involves 3 tiers of evidence – top, middle and low.

Expand the implementation of programs backed by strong (‘top tier’) evidence of sizable, sustained effects on important life outcomes.

Fund and/or conduct rigorous evaluations of programs backed by highly promising (‘middle tier’) evidence, to hopefully move them into the top tier.

Build the pipeline of promising programs through modest investments in the development and initial testing of many diverse approaches (as part of a ‘lower tier’).

This is about systematising our use of evidence: a familiar approach in medicine, but one that has not been standard practice for all policymakers.

It is about producing tangible proof that randomised policy trials improve lives, in that way that we already have tangible proof that randomised medical trials save lives.

As a specific example of this kind of approach, in the US state of Maryland, a partnership between Arnold Ventures and the state government is already scaling‑up proven programs.

In August last year, the high‑dosage maths tutoring program for 9th and 10th graders I mentioned earlier (Saga Education) and ASSISTments – an educational tool for mathematics – received scale‑up funding under the US$20 million Maryland Partnership for Proven Programs with Arnold Ventures (Arnold Ventures 2024b).

In the UK, the development of the What Works Network is a world‑leading achievement which owes credit to the network of evidence‑based policymakers. That includes the extraordinary David Halpern, who will be speaking on the panel shortly (for an excellent snapshot of his recommendations for the coming decade, see Halpern 2023).

Across health and housing, education and employment, hundreds of UK randomised trials have been conducted. For a practitioner, policymaker or curious member of the British public, it is now easier than ever to see what we know, and what we do not (Leigh 2024a).

For example, the Education Endowment Foundation has run literally hundreds of randomised trials in the education sector. It uses these findings, alongside rigorous evaluations conducted outside the UK, to advocate for evidence‑based education policies (Education Endowment Foundation n.d.).

The Education Endowment Foundation has commissioned 316 research projects (208 of which are randomised trials). Sixty per cent of schools in England have taken part in a randomised trial funded by the Foundation. Seventy per cent of school leaders use the Education Endowment Foundation’s teaching and learning toolkit when making their funding decisions on spending for pupils from disadvantaged backgrounds.

Here in Australia, we are committed to taking a stronger approach towards evidence‑based policymaking.

In July 2023 we established the Australian Centre for Evaluation in the Department of the Treasury.

The main role of the centre is to collaborate with other Australian Government departments to conduct rigorous evaluations, including randomised trials. Such agreements have already been forged with federal agencies responsible for employment, health, education and social services.

Led by Eleanor Williams, armed with a modest budget of A$2 million per year and just over a dozen staff, the Centre operates on smarts and gentle persuasion, not mandates or orders (Leigh 2024b).

No agency is forced to use the services of the Australian Centre for Evaluation, but all are encouraged to do so. This reflects the reality that evaluation, unlike audit, isn’t something that can be done as an afterthought. A high‑quality impact evaluation needs to be built into the design of a program from the outset (Leigh 2024b).

The centre takes an active role in considering aspects that are relevant to all evaluations, such as rigorous ethical review and access to administrative microdata. The Australian Bureau of Statistics is playing a pivotal role in brokering access to administrative data for policy experiments.

Collaboration with evaluation researchers outside of government is critical, too. Thanks to a joint initiative by the Centre and the Australian Education Research Organisation, we now have the Impact Evaluation Practitioners Network, which is bringing together government and external impact evaluators.

The centre has several randomised trials currently underway, and I await the results with interest.

In the next month, the centre will release a Randomised Controlled Trial Showcase Report, featuring examples of public policy‑related trials in Australia.

Another organisation doing extraordinarily thorough research across the whole of social policy and the social sciences is the nonprofit Campbell Collaboration.

For example, the Campbell Countering Violent Extremism evidence synthesis program is a global research initiative that is attracting attention here in Australia. The program originated from a 5‑country partnership of Australia, Canada, New Zealand, the UK and the US (Campbell Collaboration n.d.). Professor Lorraine Mazerolle from the University of Queensland is one of the principal investigators on the program (Campbell Collaboration n.d.).

Creating an experimenting society

Bringing a ‘what works’ philosophy to social policy is vital to helping the most vulnerable.

And it is by no means a new idea. It follows the path forged by the prominent social scientist Donald Campbell.

He is of course, the ‘Campbell’ in the Campbell Collaboration, which was named after him to honour his substantial contributions to social science and methodology.

Over 50 years ago, Dr Campbell wrote Methods for the Experimenting Society, outlining his vision for helping governments to produce better‑informed policies and social interventions via research and evaluation (Campbell 1991).^[1]

In this paper, Campbell forewarns policymakers of the ‘over‑advocacy trap’, where advocates of a new social program or policy make exaggerated claims about its effectiveness in order to get it adopted (Campbell 1991). He effectively highlights the tension between the need for strong advocacy to get social programs funded and adopted, and the need for rigorous evaluation to determine their true effectiveness (Campbell 1991).

Thirty years after Dr Campbell wrote Methods for the Experimenting Society, the US Department of Education was allocating over a billion US dollars each year to an after‑school program called the 21st Century Community Learning Center initiative.

The program, which was initiated in 1998, saw children attending the centres for up to 4 hours of after‑school programs, where they partook in everything from tutoring to drama to sports. It attracted high‑profile advocates, including the former Californian governor and Mr Universe, Arnold Schwarzenegger.

It’s no wonder then, that a randomised trial by Mathematica in 2003 startled everyone with its findings (Haskins 2009). Attending the after‑school program raised a child’s likelihood of being suspended from school (Leigh 2018). And there was no evidence that the after‑school program improved academic outcomes.

The program’s prominent advocates had fallen head‑first into the over‑advocacy trap.

Overcoming denial with collaboration and momentum

American political scientist Ron Haskins commented on how easy it was for Schwarzenegger to flex his celebrity muscle to overcome a negative evaluation. ‘The lesson here, yet again, is that good evidence does not speak for itself in the policy process and is only one – sometimes a rather puny – element in a policy debate’ (Haskins 2009).

Overcoming denial in the face of irrefutable evidence requires continuous collaboration and sustained momentum. In 2025 and beyond, we will need both to reach the tipping point on the widespread use of rigorous impact evaluation across public policy. It will be harder to run roughshod over good evidence if OECD nations continue to collaborate – both internally with non‑profit researchers outside of government, and externally with other nations.

Philanthropic foundations in the UK, US and other OECD nations have a strong track record in supporting randomised policy trials. Initiatives such as the Maryland Partnership for Proven Programs and Arnold Ventures, which I mentioned earlier, demonstrate that the ‘what works’ philosophy in social policy is gaining traction.

Here in Australia, the Paul Ramsay Foundation launched a A$2.1 million open grant round in 2024. Its structure is similar to a successful model that the Laura and John Arnold Foundation has deployed in the United States over the past decade (Leigh 2024c).

The grants, which last for 3 years and are valued at up to A$300,000 each, will support up to 7 experimental evaluations conducted by non‑profits with a social impact mission. For example, improving education outcomes for young people with disabilities, reducing domestic and family violence, or helping jobless people find work (Paul Ramsay Foundation 2024).

The Australian Centre for Evaluation supported the open grant round, and is helping to connect grantees with administrative data relevant to the evaluation, and I am excited to see what we learn from these studies (Leigh 2024b).

One of the most appealing advantages of well‑conducted randomised trials is that they resonate well with 3 democratic principles: non‑arbitrariness, revisability and public justification (Tanasoca and Leigh 2023).

This gives us good democratic reasons to seek out such evidence for policymaking. Indeed, the more democratic a regime is, the more likely it is to conduct randomised trials (Tanasoca and Leigh 2023).

Recall the first big public administration reform – the growth of a professionalised civil service – rested on the development of democratic institutions. Nobel laureates Daron Acemoglu and James Robinson call this the ‘red queen effect’, in which societies offering more public goods also need to offer more democratic social power (Acemoglu and Robinson 2019).

The seventh reform – randomised trials and evidence‑based policymaking – takes us further along the corridor. Things are not true simply because politicians assert them. Policies must be backed by evidence, and citizens must be able to test and trust that evidence.

Democracies are on this journey together, and international collaboration is vital to reaching the tipping point.

This is not about the performative use of words like ‘evaluation’ and ‘evidence’. It is about raising the quality and quantity of evidence, which is one reason that I keep referring to randomised trials. I acknowledge the work of the OECD towards achieving the goal of institutionalising rigorous evaluation across public policy areas, as per the OECD Recommendation of the Council on Public Policy Evaluation (OECD 2022).

The second annual update of the Global Commission on Evidence also confirms the many signs of momentum towards the Commission’s 3 implementation priorities to formalise and strengthen domestic evidence‑support systems, enhance and leverage the global evidence architecture, and put evidence at the centre of everyday life (Global Commission on Evidence 2024).

Conclusion

We’re here because we care about good government. And because we understand that evaluation and evidence science are not fields in their infancy.

Just as we don’t put homeopathy on the same level as science‑based medicine, it is a mistake to think that evidence‑free policy is on a par with evidence‑based policy.

OECD governments have decades of experience about how to identify evidence gaps, put policies to the test, and implement the most effective programs (Leigh 2024a).

Policymaking by focus groups and gut‑feel alone is the modern‑day equivalent of bloodletting and lobotomies in medicine (Leigh 2024a). Which is why the seventh big reform to public administration must focus on finding interventions that work. And on building a body of programs backed by strong, replicated randomised trial evidence of important, lasting improvements in people’s lives.

This goal requires OECD nations to get behind the momentum of the Global Commission on Evidence.

This will have massive benefits. It will save lives. It will save dollars. And it will make government work better.

So let’s make it happen.

My thanks to officials in the Australian Centre for Evaluation for valuable drafting assistance, and to Jon Baron, President and CEO of the Coalition for Evidence‑Based Policy, and David Halpern CBE, President Emeritus at the Behavioural Insights Team, for valuable discussions that helped shape this speech.

References

Acemoglu D and Robinson JA (2019) The Narrow Corridor: States, Societies, and the Fate of Liberty, Penguin, New York.

Arnold Ventures (21 March 2018a) ‘How to solve U.S. social problems when most rigorous program evaluations find disappointing effects (part one in a series)’, Straight Talk on Evidence, accessed 15 January 2025.

Arnold Ventures (13 April 2018b) ‘How to solve U.S. social problems when most rigorous program evaluations find disappointing effects (part 2 – a proposed solution)’, Straight Talk on Evidence, accessed 15 January 2025.

Arnold Ventures (18 June 2019) ‘Evidence‑Based Policy ‘Lite’ Won’t Solve U.S. Social Problems: The Case of HHS’s Teen Pregnancy Prevention Program’, Straight Talk on Evidence, accessed 15 January 2025.

Arnold Ventures (26 October 2022a) ‘Year Up’, Social Programs That Work, accessed 15 January 2025.

Arnold Ventures (21 March 2022b) ‘Per Scholas Employment/Training Program for Low-Income Workers’, Social Programs That Work, accessed 15 January 2025.

Arnold Ventures (11 July 2024a) ‘Saga Math Tutoring’, Social Programs That Work, accessed 15 January 2025.

Arnold Ventures (28 August 2024b) Governor Moore Announces $20 Million in Grants for Education Programs, First Awards Under Maryland Partnership for Proven Programs with Arnold Ventures [media release], Arnold Ventures, accessed 16 January 2025.

Australian Education Research Organisation (n.d.), About us, Australian Education Research Organisation website, accessed 22 January 2025.

Brunner R and Lynch A (2017) ‘Adaptive Governance’, Oxford Research Encyclopedia of Climate Science, doi:10.1093/acrefore/9780190228620.013.601.

Campbell Collaboration (n.d.) Our work, Campbell Collaboration website, accessed 16 January 2025.

Campbell Collaboration (n.d.) About the CVE programme, Campbell Collaboration website, accessed 21 January 2025.

Campbell DT (1991) ‘Methods for the Experimenting Society’, Evaluation Practice, 12(3):223–260.

Education Endowment Foundation (n.d.) How we work, Education Endowment Foundation website, accessed 22 January 2025.

Global Commission on Evidence to Address Societal Challenges (2024), ‘Global Evidence Commission update 2024: Building momentum in strengthening domestic evidence‑support systems, enhancing the global evidence architecture, and putting evidence at the centre of everyday life’ [PDF 5MB], McMaster Health Forum, Hamilton, accessed 17 January 2025.

Halpern D (2023) ‘Foreword’, in Sanders M and Breckon J (eds) The What Works Centres: Lessons and Insights from an Evidence Movement, Bristol University Press, Bristol.

Haskins R (17–18 August 2009) ‘Chapter 3 With a scope so wide: using evidence to innovate, improve, manage, budget’ [roundtablee presentation] Strengthening Evidence‑based Policy in the Australian Federation, Session 1 Evidence‑based policy: Its principles and development Canberra, accessed 16 January 2025.

Jacobs A (4 April 2024) ‘Glasses Improve Income, Not Just Eyesight’, The New York Times, accessed 15 January 2025.

Leigh A (2018) Randomistas: How Radical Researchers Changed Our World, Black Inc, Melbourne.

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Leigh A (17 June 2024) ‘Address to the Australian Evaluation Showcase, Canberra’ [presentation], Australian Evaluation Showcase, Canberra, accessed 15 January 2025.

Leigh A (28 November 2024c) ‘Address to 10th Annual Social Impact Measurement Network Australia Awards’ [presentation], 10th Annual Social Impact Measurement Network Australia Awards, Virtual, accessed 17 January 2025.

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Footnotes

^[1] Campbell’s paper was written around 1971 and used in presentations to the Eastern Psychological Association and the American Psychological Association. It was revised and first published in 1988 (see Campbell 1991).

MIL OSI News –

February 6, 2025
MIL-OSI Australia: MEDIA RELEASE: Unions till the soil for more extreme IR changes

Source: Australian Mines and Metals Association – AMMA

Resource sector employers are concerned trade union leaders are building the case for more extreme anti-business industrial relations changes ahead of this year’s federal election.

The Australian today reports the Australian Council of Trade Unions (ACTU) is lobbying the Albanese Government to ban employers from taking lockout action in response to industrial action by employees.

“The right to lock out striking employees is very rarely used as it ultimately hurts the business as well as penalises the workforce,” said AREEA Chief Executive Steve Knott AM.

“But when faced with extreme demands and damaging strikes, it may be the last response action left available to employers within Australia’s IR system.

“Employers are still reeling from three substantial packages of egregiously pro-union changes to Australia’s IR legislation passed during the Albanese Government’s first term.

“Unions can now force bargaining on employers without requiring the majority support of the workforce.

“They are incentivised to draw out disputes beyond nine months so they can get their enterprise agreement terms arbitrated by the Fair Work Commission; and they can threaten and organise strikes in support of multi-employer bargaining campaigns.

“These are all new features of the IR system that were not announced prior to the Government’s election in 2022 and were passed into law with very limited justification or consultation.

“We are already seeing a notable increase in industrial disputes. ABS data shows during the Albanese Government’s first term the average number of industrial disputes is up 25% and the average number of working days lost is up 53%, compared to the prior nine years of Coalition Government.

“Australian employers are facing greater employment costs and complexity than ever before and unprecedented third-party interference in the management of their workforces.

“Should the Government cede to the ACTU’s demands to limit or reduce lockouts – sometimes the last line of defence for besieged employers – it may as well ask businesses to hand over a blank cheque to militant unions to write their own terms and conditions.”

Despite the Government’s assurances of no further substantial legislative IR changes, Mr Knott said employers suspected a pipeline of further union demands should the ALP win a second term.

“Union wish-list items are likely to include non-member union bargaining fees and unfettered rights to strike at any time,” Mr Knott said.

“It’s also curious the ACTU would go public with this particular IR policy demand just days before the Government is set to be handed its report on the impacts of its first IR legislation amendment package – which included significant overhaul of Australia’s enterprise bargaining laws.

“These developments have employers very nervous about what the ACTU is planning for a potential second term of the Albanese Government.

“The Government should take this opportunity to categorically rule out any change to lockout provisions and restate its position on no additional amendments to IR laws.”

MIL OSI News –

February 6, 2025
MIL-Evening Report: Mandatory minimum sentencing is proven to be bad policy. It won’t stop hate crimes
Source: The Conversation (Au and NZ) – By Lorana Bartels, Professor of Criminology, Australian National University

Shutterstock

Weeks after Opposition Leader Peter Dutton announced his support for mandatory minimum jail terms for antisemitic offences, the government has legislated such laws. Minister for Home Affairs Tony Burke stated the federal parliament would now be “putting in place the toughest laws against hate speech that Australia has ever had”.

It follows a concerning recent spate of antisemitic attacks in Australia, including on Jewish places of worship, schools, businesses and homes.

Last week, a caravan was found on the outskirts of Sydney, filled with explosives and a list of Jewish targets.

Understandably, there is fear in the Jewish community.

The government’s decision to pursue mandatory minimum sentencing is contrary the 2023 ALP National Policy Platform stating:

Labor opposes mandatory sentencing. This practice does not reduce crime but does undermine the independence of the judiciary, leads to unjust outcomes, and is often discriminatory in practice.

The evidence shows that Labor’s official policy platform is correct. Mandatory minimum sentencing is unlikely to help solve this issue – or any other issue for that matter. It has a poor track record of reducing crime.

What is mandatory sentencing?

Australian criminal laws usually set a maximum penalty for an offence. It is then the role of the courts (a judge or magistrate) to set the sentence, up to the maximum penalty.

This allows the judiciary to exercise discretion in sentencing. It means the courts can take into account a range of relevant factors when determining an appropriate sentence, guided by the sentencing laws in each jurisdiction.

However, laws that demand a mandatory sentence set a minimum penalty for an offence, thereby significantly reducing the role of judicial discretion.

Sentencing decisions are made by judges in Australian courts.
Shutterstock

Let’s imagine two people are appearing in court, to be sentenced for exactly the same offence.

Defendant A (Kate) is 18 years old and has pleaded guilty. It is her first offence. She is Aboriginal, a victim of childhood domestic violence and lives on the streets. She has recently started to get help for her mental health problems.

Defendant B (Jim) is 35. He has a long criminal history, including breaches of bail and parole. He has never been out of prison for more than six months at a time. He has pleaded not guilty and doesn’t think he has done anything wrong.

The maximum penalty for this offence is five years. Under standard sentencing laws, a judge would usually give different sentences to Kate and Jim, based on their personal circumstances and future prospects. Jim would generally get a more severe sentence than Kate.

Now, let’s imagine parliament decides to set a mandatory minimum sentence of two years in prison. This means the judge has to send both Kate and Jim to prison for at least two years, despite the differences between them, even if a community-based sentence might be more appropriate for Kate.

So do mandatory minimum sentences work?

The main arguments for mandatory sentences are that they:
- reflect community standards
- provide consistency
- avoid judicial leniency, and
- reduce crime.
The evidence for each of these is weak.

A study with members of the Victorian public who had served on juries found strong support for sentencing discretion.

This is confirmed by recent research from the Queensland Law Reform Commission. It found general support from the public for individualised responses, not an inflexible approach to sentencing.

Mandatory sentencing yields more consistent outcomes, but denies flexibility in cases where defendants should be treated differently.

The argument that mandatory sentencing reduces crime is also contested.

Study after study has shown that harsher penalties do not reduce crime.

It is uncontested, however, that certainty of detection (whether you’ll get caught) is the primary deterrent factor, not the severity of the sentence (assuming that the perpetrator is aware of it).

Mandatory sentencing also brings risks

Let’s review the arguments against mandatory sentencing.

Firstly, it undermines judicial independence, the separation of powers (between the courts and executive government) and the rule of law: a concept based on fairness in the judicial system.

Mandatory sentencing also shifts discretion to other, less transparent, parts of the criminal justice system (for example, police and prosecution services), as they frame the charges that will bring defendants to court in the first place.

Secondly, a guilty plea is a mitigating factor the court considers when sentencing. Mandatory sentencing means there is little incentive for defendants to plead guilty. This increases workloads, delays, costs, and has consequent negative effects for victims.

In addition, juries may be reluctant to convict if they know the minimum sentence will insist upon a prison term. This can lead to inappropriate not guilty verdicts.

Undermining the right to a fair trial

Australia has previously come under fire from the United Nations for its mandatory sentencing laws.

These requirements are found in the International Covenant on Civil and Political Rights, which entered into force for Australia in 1980.

Indeed, the Law Council of Australia has suggested mandatory sentencing is inconsistent with the international prohibition against arbitrary detention, and undermines the right to a fair trial, given that such sentences have been somewhat predetermined.

These laws can also lead to injustice. As the example above shows, mandatory sentencing can impact disproportionately on vulnerable people, such as Indigenous people, and women with disabilities.

These cohorts are already far more vulnerable than non-Indigenous men (who account for most people who offend).

Adverse effects on imprisonment rates

The High Court recently stated that the mandatory minimum sentence will have the effect of lifting sentencing levels generally.

But the research shows longer prison sentences are much more expensive and less effective than community-based sentencing options in reducing crime.

Let’s leave the final word on this subject with the Law Council of Australia:

achieving a just outcome in the particular circumstances of a case, while maintaining consistency across similar cases and with Australia’s human rights obligations, is […] paramount.

We need effective responses to all forms of racial and religious hatred, including antisemitic hate crimes, but populist, knee-jerk reactions are highly unlikely to make the community safer. Clear-headed thinking will best stand the test of time, not policy developed in anger or fear.

Lorana Bartels is a Director of the Justice Reform Initiative. She is a supporter of the Jewish Council of Australia. She has received research funding from the ACT, Commonwealth, Queensland, Tasmanian and Victorian governments. She recently undertook a project for the Queensland government, which examined the use of mandatory minimum sentences for murder. She is a member of the Tasmanian Sentencing Advisory Council, which recently completed a project on hate crimes.

Rick Sarre does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Mandatory minimum sentencing is proven to be bad policy. It won’t stop hate crimes – https://theconversation.com/mandatory-minimum-sentencing-is-proven-to-be-bad-policy-it-wont-stop-hate-crimes-249266
MIL OSI Analysis – EveningReport.nz –
February 6, 2025
MIL-Evening Report: Sweeping reform of the electoral laws puts democracy at risk. They shouldn’t be changed on a whim

Source: The Conversation (Au and NZ) – By Joshua Black, Visitor, School of History, Australian National University

The Albanese government is trying once more to legislate wide-ranging changes to the way federal elections are administered.

The 200-page Electoral Reform Bill, if passed, would transform the electoral donation rules by imposing donation and spending caps, increasing public funding, and improving transparency.

As noble as it sounds, the bill in its current form would undermine Australian democracy by favouring established parties over independent candidates and other new players.

Competitive disadvantage

The proposed donation caps are a case in point.

Donors could give A$20,000 per year, per recipient, to a branch of a party or candidate for electioneering purposes. In practice, that means donors could give no more than $20,000 per year to an independent but could contribute $180,000 to the Labor Party via each of its state and federal branches, or $160,000 to the Liberal Party (which has one less branch than the ALP).

The donation cap would reset annually and after each federal election, allowing a single donor to give $720,000 to the Labor Party in one election cycle or $640,000 to the Liberals, but no more than $20,000 to an independent who declares their candidacy in the year of an election.

Avoiding the American road

There are welcome components in the bill. Faster disclosure and lower donation thresholds would make the system more transparent. Given the large amount of undisclosed funding – “dark money ” – currently propping up political parties, this would be a significant improvement.

But democracy is not cheap.

Last year, the Financial Times reported Donald Trump and Kamala Harris spent a combined US$3.5 billion (A$5.6 billion) on their presidential races. This kind of money helps to sustain an American two-party system largely immune to challengers.

Australian campaigns look nothing like this, but there has been increased interest in the money spent in particular seats in recent years.

Former Labor minister Kim Carr revealed in his recent book Labor spent $1 million to defeat the Greens in the Melbourne electorate of Batman in 2018, while the LNP reportedly spent $600,000 campaigning to retain the affluent electorate of Fadden in 2023.

The bill before Parliament would cap election spending at $800,000 in each lower house seat. But the major parties could promote their generic party brand or a frontbench MP (in a seat other than their own) without affecting their capped spending.

These unfair discrepancies would reward the major parties while kneecapping independents whose first hurdle is to get their name “out there”.

Haunted by billionaires

The government argues its bill limits the influence of “big money” in politics, namely mining boss Clive Palmer, who spent $117 million at the last election.

For the Coalition, it is the community independents and their Climate 200 supporters who represent a kind of money “without precedent in the Australian political system” according to departing MP Paul Fletcher.

Rather than getting big money out of politics, this bill would make the major parties’ own funding pipelines the only money that matters.

The bill recognises “nominated entities” whose payments to associated political parties would not be limited by donation caps. Independents would not have this privilege.

Meanwhile, the long delay before the commencement of the bill in 2026 would give wealthy donors time to get their ducks in order. They could amass their own war chests before the new laws are due to come in to force and then register them as nominated entities at a later date.

Who pays? The taxpayer, of course!

Parties and candidates with more than 4% of the primary vote currently receive public election funding. The Hawke government introduced this measure as a “small insurance” against corruption.

The bill would raise the return to $5 per vote, which would mean an extra $41 million in funding, on top of the $71 million handed over after the 2022 election. Most of this money would go to the major parties.

The windfall would come with no extra guardrails or guidelines about how those funds could be spent. There are no laws to guarantee truth in political advertising at the federal level. Voters may well be paying for more political advertising that lies to them.

Closed consultations

Labor’s current strategy is to seek Coalition support for these changes to the rules of democracy.

Special Minister of State Don Farrell claims to have consulted widely on the design of the bill, but that came as news to independents David Pocock and Kate Chaney when asked about it last week.

The government’s haste and secrecy suggest it wants neither the bill nor its motives closely scrutinised.

Australians care about the quality of their democracy. Polling research by the Australia Institute last November showed four in five Australians expect electoral changes to be reviewed by a multi-party committee.

That’s what is needed for this bill. To do otherwise would threaten the integrity of Australian elections – or invite a High Court challenge that may overturn the entire system if the court rules freedom of political expression is at stake.

Democracy matters. The rules must not be changed on a whim.

Joshua Black is a Postdoctoral Research Fellow at The Australia Institute, and formerly a Palace Letters Fellow at the Whitlam Institute within Western Sydney University.

– ref. Sweeping reform of the electoral laws puts democracy at risk. They shouldn’t be changed on a whim – https://theconversation.com/sweeping-reform-of-the-electoral-laws-puts-democracy-at-risk-they-shouldnt-be-changed-on-a-whim-249144

MIL OSI Analysis – EveningReport.nz –

February 6, 2025
MIL-OSI USA: Tuberville Thanks President Trump for Signing Executive Order Protecting Women’s Sports, Urges Senate to Bring Protection of Women and Girls in Sports Act to the Floor for a Vote

US Senate News:

Source: United States Senator for Alabama Tommy Tuberville

WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) celebrated National Girls and Women in Sports Day by participating in several events and interviews to promote his bill, the Protection of Women and Girls in Sports Act. Sen. Tuberville reintroduced his hallmark Title IX legislation—which is cosponsored by 37 of his colleagues—in the Senate last month. Companion legislation passed the House on a bipartisan basis in January.

Sen. Tuberville also praised President Trump for his leadership in signing an Executive Order today to protect women’s sports and restore Title IX protections for women and girls everywhere. While Senator Tuberville is grateful for President Trump’s commonsense leadership, he insists Congress has to pass his bill to ensure Title IX protections are made permanent. Sen. Tuberville discussed this earlier this week on “The Megyn Kelly Show” when he said, “A lot of people don’t realize that an Executive Order […] only lasts as long as that president’s there. So, we got some work to do. […] As you said—we’ve got to get it to the floor. John Thune told me he’s going to get it to the floor. […] If it’s not going to pass, we’ll do it again, but we’ve got to get people on the record because this is something that’s very dear to the heart of all parents across the country—and it’s dead wrong.”

When White House Press Secretary Karoline Leavitt was asked about this earlier today, she said, “It’s incredibly important that Congress immediately act on this priority. I think the President is really setting the tone—making this an immediate priority for this administration, just as he promised to do on the campaign trail.”

Sen. Tuberville also commemorated National Girls and Women in Sports Day by reintroducing the Protection of Women in Olympic and Amateur Sports Act to prohibit any governing body recognized by the U.S. Olympic Committee (USOC) from allowing men to participate in any women’s Olympic athletic events.

Tuberville Joins “The Faulkner Focus”

Sen. Tuberville joined Harris Faulkner on “The Faulkner Focus” to discuss the latest with the Protection of Women and Girls in Sports Act, as well as his efforts to protect women’s Olympic sports.

Read an excerpt from the interview below or watch here.

FAULKNER: “This Executive Order that Trump is getting ready to put in play comes as today we recognize National Girls and Women in Sports Day. Also on this day, Senator, you are reintroducing that bill called the Protection of Women in Olympic and Amateur Sports Act. This is an effort to ensure that Trump’s protections are permanent. Tell us about it, Senator.”

TUBERVILLE: “Exactly, and you know I started coaching 40 years ago—right when Title IX started. And, Harris, let me tell you something. This is the best thing that this place has ever done. It gave young girls and women a different opportunity to build on leadership and have a future. And, so, this past four years—gender has been under attack. Parents have been under attack. Education has been under attack, and it all goes back to trying to not define what a woman is, and they can’t even define that. They’re telling us right now that men can have babies. So, at the end of the day, I’m giving a speech on the floor today. Leader Thune has promised he’s gonna put this bill on the floor sooner or later. This is my third time that I’ve had this up for a vote. The Democrats don’t want anything to do with it, but I gotta feeling a lot of them are gonna change their mind. And then at three o’clock, President Trump’s going to sign the Executive Order. But as you said, if when he goes out of office, if we don’t get a Republican back in there, this will change back into the gender nonsense that these Democrats have been pushing for the last four years. We have to protect women and girls in sports. And we also have to protect women and girls in Olympic sports because we have the Olympics coming here soon. And if we don’t do that, we’re gonna see men boxing against women like we did this past summer.”

Tuberville Speaks on Senate Floor

Senator Tuberville also delivered a floor speech where he called out Democrats’ out-of-touch, woke ideology that says men can get pregnant and boys should compete in women’s sports.

Read excerpts from the speech below or watch the full speech here.

“I’m here to call for a vote on my legislation, S.9, the Protection of Women and Girls in Sports Act, that would save Title IX and save women’s sports. Today is National Girls and Women in Sports Day—that’s today. To celebrate, President Trump will sign an Executive Order this afternoon in the White House ending Democrats’ intentional destruction of Title IX and saving women’s sports.

I’m very thankful for his leadership on this. President Trump’s Executive Order will make sure women’s sports are protected for at least the next four years. But unfortunately, Executive Orders can be reversed. Congress needs to act on this to make sure the next Democrat administration, whenever it is, can’t take the same steps to destroy Title IX that the Biden administration took. For the past four years, the Biden administration waged an all-out assault on gender. Since the beginning of time, people have agreed that sex is assigned at birth and determined by God. But under the Biden administration, you had people claiming that men can get pregnant. Here on this floor, I heard that. Pure insanity.

But it didn’t stop there. They weren’t content to just erase gender norms that have been accepted for thousands and thousands of years. No. They wanted to allow transgender men to participate against women and girls in sports. This has been happening at schools all across the country. Young women have been forced to compete against men and even share locker rooms and showers. And on top of that, your taxpayer dollars are paying for this nonsense. Over the past several years under the Joe Biden administration, 900 women’s medals have gone to men. 900. That is absolutely wrong.

This one is personal for me. My first coaching job was in women’s basketball—years ago. Title IX was just starting to be implemented when I took that first job. I saw firsthand the immediate difference it made. Before Title IX, at a lot of schools, college women’s athletics didn’t really exist. Back then, there were more than 10x as many male athletes in college as female athletes. After Title IX, that quickly changed. For the first time, the young women I coached had equal access to facilities, resources, and competition. I saw these hardworking young women go on to earn college scholarships, start careers, and become leaders of our country. I still keep in touch with many of these young women today, and I’m deeply proud of them.

Looking back on it now, I wonder if they would have had the same opportunities without Title IX. Would they have had the same successes if they had had to compete against males 40 years ago? This really shouldn’t be controversial. It’s just common sense. A recent poll from the New York Times of all publications showed 79% of all Americans believe men should not compete in women’s sports. 79%.

President Trump campaigned largely on this issue. If you remember, his campaign spent nearly $20 million dollars on TV ads about the importance of keeping men out of women’s sports. So, on November 5, 2024 the American people didn’t just elect President Trump. They also decisively rejected this ridiculous notion that men can get pregnant and boys should compete against women in sports. Ridiculous. And they definitely didn’t want their tax dollars funding schools that allow boys to share locker rooms with girls.

My bill would prevent a school from receiving any federal funding if they let boys compete in women’s sports. It also defines gender [as] male and female for this purpose. I was glad to see President Trump sign an Executive Order defining gender during his first few days in office. The President also made it clear in the Executive Order that he wants Congress to take action on this as well because he understands it can go away with the sign [of] an ink pen.

That’s why today I’m also reintroducing a bill to prohibit men from competing in women’s Olympic sports because men competing against women at any level is dangerous. We are all deeply disturbed—all of us were deeply disturbed this past summer to see videos of boys and men boxing against women. You know, when I was growing up, we were taught never to hit a girl, but I guess that’s over now because of the Democrats. One study found out that males can punch up to 162% harder than females. Somebody is going to get killed or seriously injured if we don’t stop this absolute nonsense. It’s unsafe, it’s unfair, and it’s just plain wrong.

The Protection of Women in Olympic and Amateur Sports Act will make sure men aren’t allowed to compete against women in any sport, but especially not in a violent sport like boxing. This bill will restore fairness for the American women who train their whole lives to represent our country on the world stage. Their entire lives, they train. I know we’re all looking forward to the United States hosting the Summer Olympics in 2028 in Los Angeles. I hope our bill [has] been passed and signed in law long before that so we can all enjoy some healthy, safe women-against-women or men-against-men competition during those Olympics.

But this huge issue goes way beyond politics. I’ve heard from parents, student, teachers, and coaches all over the country about this. These are people who have personally seen the benefits of Title IX and are very concerned about Democrats’ attempts to take these opportunities away from women and girls.

There are countless stories of girls who have benefited from Title IX in my state of Alabama.

This includes athletes like Rachel Argent of Thorsby High School in Chilton County, Alabama. Rachel’s athletic ability and good grades drew the attention of college coaches across Alabama. […] Because of her talent and work ethic, Rachel received basketball scholarships to Faulkner State Community College in Bay Minette, Alabama. After [getting] her degree, she got a softball scholarship at Samford University. That scholarship […] put her on the right direction. […] She didn’t have to worry about landing a full-time job while she went to school and participated in sports. […]

After college, Rachel returned to Thorsby High School as a teacher and a coach. She wanted to give back to the school what she had gotten from Title IX. She taught Health and Physical Education for grades kindergarten to twelve. She coached girls’ softball, basketball, track, and volleyball. She made an impact on hundreds of girls across our state of Alabama. It was all made possible again by Title IX.

Rachel’s daughter, Addie, played softball, tennis, golf, and basketball at Chilton County High School. She got a gold scholarship to the University of Mobile where she graduated with a degree in Nursing. Her athletics scholarship was part of her getting a degree and becoming a nurse. There are countless other young women like Addie and Rachel across Alabama and every other state across the country. More than 50,000 young women in Alabama alone competed in high school sports this past year, 50,000. Every single one of them deserves the full benefit of fair competition.

And I’m grateful that every member of the Senate Republican leadership is a cosponsor of my Protection of Women and Girls in Sports Act. They’ve been very supportive. Leader Thune is a proud cosponsor of my bill, and I’m glad to have his support. Leader Thune is committed to scheduling a vote on this bill and putting every Democrat on the record on whether or not they support men competing in women’s sports. We brought this bill to the floor for a vote during the last Congress. Really, we brought it twice, and every single Democrat always voted against it. What does that tell you?

Leader Thune has not rescheduled it for a vote yet this congress. Right now, we’ve obviously got a lot of things to do with [confirming] President Trump’s cabinet. Then we get started on the reconciliation process and getting the American economy jumpstarted again. We have a lot to accomplish in the first 100 days of the Trump administration, and I hope this bill is part of that 100 days.

President Trump will sign an Executive Order again today banning men from competing in women’s sports. Let’s lock that commitment in. Let’s lock it in for young girls and women all across this country. Let’s bring this bill to the floor for a vote very soon so the Senate can send it to the President’s desk and make this permanent.

To my Senate colleagues who are on the fence about this, I would ask—do you have daughters? Do you have granddaughters? Do you have nieces? Would you want them competing against men in sports? Would you feel comfortable with them sharing a locker room with a biological male?

I’m excited to welcome my first granddaughter in a couple weeks, Rosie Grace. I would raise hell if she was forced to compete, dress, or use the same showers as men. And American taxpayers should not be forced to foot the bill for any schools that are allowing this to happen. The days of woke, swamp politicians running our government are over. Common sense has been restored to the White House, and Congress needs to get back to work and let President Trump work on this bill.

This isn’t about politics. This is about right and wrong. The American people have delivered a verdict. They want men out of women’s sports and women’s locker rooms.

President Trump is 100% with us on this. The time to act is now. It’s time to restore Title IX protections and save women’s sports.”

Tuberville Attends White House Executive Order Signing

Sen. Tuberville went to the White House for President Trump’s signing of an Executive Order restoring Title IX protections for women and girls everywhere. During his speech, President Trump shouted out Sen. Tuberville for all of the work he has done to champion women’s sports in Congress and throughout his coaching career.

The President also shouted out 3x Superbowl Champion Patrick Mahomes, whom Coach Tuberville recruited when he was at Texas Tech University.

“And Tommy Tuberville [is here], a great coach,” said President Trump. “You know, his quarterback was named ‘Mahomes.’ He was a great college coach and I said ‘How good was he?’ and he said, ‘You don’t wanna know how good—he made me into a great coach.’”

Tuberville Joins Kudlow from White House

Following the Executive Order signing, Sen. Tuberville joined “Kudlow” on Fox Business live from Pebble Beach at the White House.

Read excerpts from the interview below or watch here.

KUDLOW: “No more biological men in women’s sports. Wow. Big signing today by President Trump. Joining us now to talk about it is Alabama Senator, Tommy Tuberville. Senator Tuberville, good to see you, sir. Tell us about the signing. Tell us what was in the signing, if you would.”

TUBERVILLE: “Well, it’s been too long happening, Larry. It’s just unfortunate—for the last four years we’ve had to put up with this nonsense of biological boys and men participating in women’s sports. Not just in sports here, but also in the Olympics. It was a great day. Had a lot of people there [for the] Executive Order putting a stop to it, but we’ve gotta permanently do it. I’ve got a bill that’s the Protection of Women and Girls in Sports Act that we’ve got. Hopefully, we get it on the floor soon where we can make it permanent. There’s no reason in the world why men and boys should be able to participate in women’s [sports]. It’s just wrong, it’s dangerous. And, you know, it’s just a great day that we finally got this done.”

KUDLOW: “Senator Tuberville, you mentioned the Olympics. So, good question—how will the Olympic Committee look at this resolution? Will they abide by it? Will they fight it? What do you anticipate, sir?”

TUBERVILLE: “Well, you got to remember, Larry. This is gonna be in L.A. the next time they have it. President Trump mentioned that. The Olympic Committee, two years ago, decided to let each sport decide what they wanted to do and how they wanted to handle it. Unfortunately, boxing let men participate against the women and it was terrible—it really was. Somebody’s gonna get hurt. And so, hopefully, they come to their senses. President Trump will probably get involved in this—with the Olympic Committee, knowing him. And hopefully, we can get all men and boys banned from any kind of [women’s] sports in the Olympics. It’s just not fair.”

KUDLOW: “You know, it’s so ironic to me, Senator, politically. For all these years, going back to, I’m gonna say, Gloria Steinem in the 1970s—over 50 years. The Democratic Party said it was the party to defend women. Okay? But in recent years, as you well know, with the trans movement and so forth and biological men now being allowed to play in women’s sports, etcetera, etcetera. All of a sudden, the Democrats are in favor of that and are wrecking women’s sports and treating women athletes, female athletes incredibly unjustly? I mean, how do you figure that? Do they see the stupidity of this whole story or not?”

TUBERVILLE: “Yeah. They see it. They just won’t admit it. The problem they have, Larry, is they’ve lost the middle class. They have no support anymore. […] They’ve lost their base. They’re not going back. They’ve really gotten so far out there, Larry. You know, even the Democrats [think men shouldn’t compete in women’s sports]. A lot of Democrats voted for President Trump because of this one issue that the Democrats kept pushing.”

Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

MIL OSI USA News –

February 6, 2025
MIL-OSI China: State Council discusses draft government work report

Source: China State Council Information Office 2

Chinese Premier Li Qiang presides over a plenary meeting of the State Council convened to discuss a draft government work report on Feb. 5, 2025. [Photo/Xinhua]
China’s State Council on Wednesday convened a plenary meeting to discuss a draft government work report.
The document will be deliberated at the top legislature’s annual session in March.
Premier Li Qiang, who presided over the State Council plenary meeting, said that it is necessary to respond fully to public expectations and concerns, comprehensively address the need to promote high-quality development, and revise the report further.
As the new year unfolds with new circumstances and tasks, the systematic and innovative implementation of clear major policies and strategic deployments already outlined by the Central Committee of the Communist Party of China is imperative, Li said.
Focusing on development goals, efforts to enhance counter-cyclical adjustments in response to changing conditions should be intensified, he noted, urging moves to introduce tangible, accessible policy measures, as well as moves to foster greater interaction between policies and the market.
The premier also stressed that strong initiatives should be undertaken to achieve breakthroughs in key areas such as reinforcing domestic circulation, promoting technological innovation and facilitating industrial upgrades, while also aiming to cultivate new advantages for China’s long-term development.
A more robust, high-standard approach to creating a first-class business environment will be adopted, providing improved conditions for all types of enterprises to innovate and develop in the country, and offering more opportunities for various talent to engage in entrepreneurship.

MIL OSI China News –

February 6, 2025
MIL-OSI China: Experts: US curb against China to disrupt intl trade order

Source: China State Council Information Office

The United States government’s latest move to eliminate a “de minimis” tariff exemption for small packages and low-value items imported from China will disrupt the normal international trade order, wreak havoc in the fast-growing cross-border e-commerce industry, and ultimately hurt the interests of US consumers, said experts and industry insiders on Wednesday.

They added that in order to mitigate the negative impacts of escalating trade protectionism, China’s cross-border online retailers should strengthen the establishment of overseas warehouses, accelerate the localization of supply chains and operations, and diversify their business layouts in emerging markets.

Their comments came on the heels of the US decision to halt a trade exemption, known as “de minimis”, that allows exporters to ship packages worth less than $800 into the US duty-free. The decision came as part of the announcement of the imposition of an additional 10 percent tariff on goods from China.

The US Postal Service said on Tuesday that it had temporarily stopped accepting packages from the Chinese mainland and the Hong Kong Special Administrative Region, a move that may block or delay parcels from Chinese cross-border e-commerce platforms including Shein and PDD Holdings’ Temu, as well as some from Amazon, from entering the US.

However, the agency said later in a notice that it will resume accepting packages from the Chinese mainland and Hong Kong starting on Wednesday.

Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation, said the US protectionist measures against China will not only increase the costs of cross-border transactions and hinder technological advancement and innovation in the global e-commerce landscape, but will also damage the interests of US consumers, especially low-income groups.

“The elimination of a small-package tax exemption will pose challenges to Chinese cross-border online marketplaces, and force these platforms to adjust pricing strategies and establish more local warehousing and logistics facilities in overseas markets, in order to reduce dependence on cross-border transportation and lower international logistics costs,” Hong said.

In response to the US Postal Service’s temporary suspension of the acceptance of incoming international parcels from the Chinese mainland and Hong Kong, Foreign Ministry spokesman Lin Jian said at a news conference on Wednesday that the US should stop politicizing and instrumentalizing trade and cracking down on Chinese companies.

Lin said China will continue to take necessary measures to safeguard the legitimate interests of Chinese enterprises.

Both Shein and Temu have gained popularity among US consumers, as they offer a wide selection of merchandise, including apparel, consumer electronics, jewelry, shoes, bags and accessories at competitive prices. Most of the products are shipped directly from factories or warehouses in China.

Zhu Keli, founding director of the China Institute of New Economy, said the US move to contain the rise of Chinese cross-border online retailers will have an adverse impact on the healthy development of the global e-commerce industry, create barriers to the free flow of commodities and services, and violate the basic principles of the market economy, thus “impeding technological progress and industrial upgrading and stunting global economic growth”.

The “de minimis” provision has existed since the 1930s in the US, but the threshold has increased and its use has come under increasing scrutiny in recent years. The number of shipments entering the US under the exemption has surged more than 600 percent in the past 10 years, according to US Customs and Border Protection.

Moreover, media reports said that the European Union will increase customs checks on goods shipped directly by e-commerce retailers like Temu and Shein to EU consumers. The new customs guidelines would require these online marketplaces to disclose more information on EU-bound packages in order to track and inspect them more efficiently.

Zhu said it is of great importance for Chinese cross-border e-commerce platforms to accelerate steps to expand their presence in more diverse markets, while improving the added value of products and the service level, as well as enhancing brand competitiveness globally, amid increasing cost pressures caused by tariff hikes in the US and mounting regulatory challenges in Europe.

MIL OSI China News –

February 6, 2025

Category: Politics

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