Overview of Banks in Finland

After three years of recession, in 2015, the Finnish economy started to recover. One of the most significant aspects of quick recovery from the recession is the development of the banking system in Finland.

The significant challenge Finland’s banking system has been facing is that the Finnish bank’s impaired assetsImpaired AssetsImpaired Assets are assets on the balance sheet whose carrying value on the books exceeds the market value (recoverable amount), and the loss is recognized on the company’s income statement. Asset Impairment is commonly found in Balance Sheet items such as goodwill, long-term assets, inventory, and accounts receivable.read more are quite high in percentages compared to Sweden (1.1%) and Norway (1.3%). However, Finland is expecting to improve the quality of assets since the interest rates have been quite low and there is a stable housing market.

As per Moody’s report, it is expected that Finnish banks’ funding and liquidity will remain sound for the next 12-18 months.

Structure of Banks in Finland

The structure of Finland’s banking system is quite different.

As of now, there are 17 banks in Finland. These banks can be divided into four categories –

  • Government banksCommercial banksCommercial BanksA commercial bank refers to a financial institution that provides various financial solutions to the individual customers or small business clients. It facilitates bank deposits, locker service, loans, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits.read moreSavings banksForeign banks (actually the branches of foreign banks)

Bank of Finland is the central bank of Finland and controls all the other banks and is considered the national monetary authority. From articulating monetary policy to producing statistics, from issuing bank notesBank NotesA banknote refers to a country’s currency in the form of paper.read more to ensuring the efficiency of the banking system, the Bank of Finland does it all.

Top 10 Banks in Finland

As per the Corporate Finance Institute, here are the top banks in Finland –

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#1. Aktia Savings Bank:

It is one of the largest savings banks in Finland. Aktia Savings Bank is owned by Finnish savings bank institutions, other savings banks, and high net-worth individuals. It was founded in 1991. As per the last report in 2021, the total assets acquired by this bank were EUR 10.67 billion. The net profit in the same year was EUR 42.62 million. The headquarter of this bank is situated in Helsinki, the capital of Finland. Around 948 people work in this bank.

#2. BNP Paribas Fortis:

The headquarter of this bank is in Helsinki. It is one of the foreign banks serving the customers of Finland. BNP Paribas Fortis is the product of the merger between BNP Paribas Group and Belgian Fortis Bank. It was established in 2009. As per the last report in the year 2020, the total assets acquired by this bank were EUR 335.1 billion, and in the same year, the bank generated a net profit of EUR 2.29 billion.

#3. Nordea Bank Finland PLC:

One of the biggest subsidiaries in terms of total assets acquired, Nordea Bank Finland PLC is the subsidiary of Nordea Bank AB. It serves both personal and corporate customers. Its headquarter is also situated in Helsinki. It has over 650 branches across Finland, and it has employed over 6500 people. In 2021, total assets acquired by Nordea Bank Finland PLC were EUR 115.7 million, and the net income for the same year was EUR 30.78 Billion.

#4. OP Corporate Bank PLC:

It is one of the oldest banks in Finland. It was established in 1902. The last name of this bank was Pohjola Bank PLC. It is also headquartered in Helsinki. The employees who work in this bank are huge, around 12,200. In the year 2020, OP Corporate Bank PLC has acquired total assets of EUR 84.0 billion, and in the same year, around EUR 421 million of net profit was generated.

#5. Danske Bank:

It is one of the branches of Danske Bank. Danske Bank has reached over 15 countries, and this bank is one of those branches. Its headquarter is situated in Helsinki. It has two branches in Finland – Helsinki Branch and Danske Bank PLC (subsidiary). In 2020, the total assets acquired by Danske Bank were DKK 4.11 trillion. And Danske Bank has generated a net profit of DKK 4.35 billion in the same year.

#6. Bank of Aland:

The headquarter of the Bank of Aland is situated in Mariehamn, Aland Islands. It is the oldest bank in Finland. It was established in 1919. It has 13 branches across Finland. And it has employed around 700 people. It is one of the largest commercial banks in Finland. In 2021, the bank acquired total assets of EUR 6.09 billion. And the net profit generated by the bank in the same year was EUR 31.49 million.

#7. POP Bank Group:

POP Bank Group is the top bank in Finland in the retail domain. This bank group comprises a central credit institution, Alliance Coop, and 26 cooperative POP banks. It has a varied client, serving private customers, small businesses, and mainly forestry and agricultural clients. In the year 2020, it was reported that POP Bank Group had had total assets of EUR 5.10 billion, and in the same year, the bank group had generated around EUR 5.10 billion of net profit.

#8. Evli Bank PLC:

Evli Bank PLC was established in 1985. The significant offerings of Evli Bank PLC are in investment banking. The headquarter of this bank is in Helsinki. And it has employed over 254 employees. It provides services in asset financeAsset FinanceAsset financing is defined as a loan taken out by an organization using balance sheet assets as collateral, such as land and buildings, vehicles, machinery, trade receivables, and short-term investments. The asset’s value is divided into regular payment intervals of the asset’s unpaid portion plus interest.read more and corporate finance. In 2020, the total assets acquired of Evli Bank PLC were EUR 793.6 million. And the net profit of Evli Bank PLC in the same year was EUR 21.9 million.

#9. Carnegie Investment Bank AB:

It is one of the branches of Carnegie Investment Bank AB of Sweden. The headquarter of this bank is situated in Helsingfors. As expected, this bank offers multiple services in mergers and acquisitionsMergers And AcquisitionsMergers and acquisitions (M&A) are collaborations between two or more firms. In a merger, two or more companies functioning at the same level combine to create a new business entity. In an acquisition, a larger organization buys a smaller business entity for expansion.read more, professional advisory services regarding equity capital markets (ECM), sales trading, and equity research. The main focus of this bank is high net-worth individuals and small businesses in Finland.

#10. Alexander Corporate Finance Oy:

Alexander Corporate Finance Oy is a part of Alexander Group. The headquarters of Alexander Corporate Finance Oy is situated in Helsinki. It was founded almost 30 years ago, in the year 1988. It is a popular investment bank that operates privately and as an independent investment wing. It is run under the authority of the Financial Supervision. The main services that these private banks offer are mergers & acquisitions (M&A), valuation, and capital market transactions.

We hope you liked this guide to top banks in Finland. If you are looking forward to making a career in Banking, then you can check out some of the awesome resources –

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