Oma Savings Bank Plc’s Half-Year Financial Report 1.1.-30.6.2023: Best quarter in history again - comparable profit before taxes increased 140% and comparable ROE% increased to 27.3%

OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 31 JULY 2023 AT 8.30 A.M. EET, HALF-YEAR FINANCIAL REPORT

Oma Savings Bank Plc’s Half-Year Financial Report 1.1.-30.6.2023: Best quarter in history again - comparable profit before taxes increased 140% and comparable ROE% increased to 27.3%

This release is a summary of Oma Savings Bank's (OmaSp) January-June 2023 Half-Year Financial Report, which can be read from the pdf file attached to this stock exchange release. In addition, alongside with the Half-Year Financial Report, the Company also publishes Disclosure information on capital adequacy and risk management in accordance with the Pillar III as a separate report, available as an attached pdf file. Both reports are also available on the Company's website at www.omasp.fi.

CEO Pasi Sydänlammi:
“OmaSp's business development has continued strong throughout the beginning of the year. The bank's profit development and cost efficiency have improved further, and June's result was the best single month ever.

During the second quarter, the business transferred from Liedon Savings Bank has been successfully integrated into OmaSp. The agreement announced in late May to acquire Handelsbanken's Finnish SME business has been positively received by customers and in the market overall.

The normalisation of the interest rate environment has further supported the growth of net interest income in addition to volume growth. During the second quarter, net interest income increased by 103% compared to the previous year. The development of fee and commission income and expenses picked up clearly in the second quarter and fee and commission income and expenses increased by 17% compared to the previous year. For the beginning of the year, the net interest income increased by 81% and fee and commission income and expenses by 10% compared to the previous year. The acquisition of Liedon Savings Bank's business has had a significant positive impact on the figures for the second quarter.

OmaSp's business development at the beginning of the year is reflected in a very strong return on equity. The comparable return on equity (ROE%) rose to 27.3% for the second quarter and the comparable return on equity (ROE%) was 24.1% for the beginning of the year. The comparable cost//income ratio also improved significantly and was 33.7% in the second quarter. For the beginning of the year, the comparable cost/income ratio was 40.0% including authority fees.

For the second quarter, the comparable result before taxes grew by 140% compared to the comparison period and was EUR 38.8 million. For the beginning of the year, the comparable profit before taxes grew by 74% and was EUR 63 million.

The quality of the loan portfolio has remained at a good level. For the second quarter, the accumulated credit losses totalled EUR 2.7 million, of which additional allowances for changes in the economic environment amounted to EUR 2.0 million.

The Company's balance sheet has grown to over EUR 7 billion as a result of the acquisition of Liedon Savings Bank. In the first half of the year, equity has increased by approximately EUR 114 million to more than EUR 470 million. The Company's capital adequacy has strengthened even further.

OmaSp's financial position is strong, and we continue the financial year from excellent starting points. The role of a successful bank as a reliable partner for customers is emphasized especially during uncertain times.”

January – June 2023
• In January-June, net interest income grew strongly by 80.6% compared to the previous year. Net interest income totalled EUR 85.5 (47.3) million. Net interest income was increased especially by the rise of market interest rates, and in addition, the volumes that have increased since March with the acquisition of Liedon Savings Bank's business.
• In the second quarter, net interest income increased by 103.2% compared to the comparative period and totalled EUR 49.2 (24.2) million.
• Home mortgage portfolio increased by 26.5% during the previous 12 months. Corporate loan portfolio increased by 19.5% during the previous 12 months.
• Deposit base grew by 23.4% over the previous 12 months.
• In January-June, fee and commission income and expenses (net) item increased due to volume growth by 9.7%. In the second quarter, fee and commission income and expenses (net) item grew by 17.0% compared to the previous year.
• In January-June, total operating income grew by 66.5% and in the second quarter 86.7% compared to the previous year. The acquisition of Liedon Savings Bank's business has had a positive impact on the development of net interest income and fee and commission income due to increased volumes.
• Total operating expenses grew in total by 26.2% and in the second quarter by 17.0%. The increase in expenses during the beginning of the year can be explained by the expanded branch network due to the corporate restructuring, increased authority fees and IT development costs.
• Impairment losses on financial assets still remained at a moderate level and were in total EUR -4.3 (1.1) million during the beginning of the year. In the comparison period, a positive profit impact due to model changes was recorded as ECL decreased, which explains the change from the previous year.
• In the second quarter, the impairment losses on financial assets were in total EUR -2.7 (-1.4) million of which EUR 2.0 million can be explained by the additional allowance based on the management's judgment and the allowance of macro variable model for the deterioration of the economic environment.
• In January-June, profit before taxes grew and was in total EUR 62.0 (32.2) million. The growth was 92.7% compared to the previous year. For the second quarter, profit before taxes grew 177.6% and was in total EUR 38.7 (13.9) million.
• For the beginning of the year, comparable profit before taxes grew 74.1% compared to the previous year and was in total EUR 63.0 (36.2) million. In the second quarter, comparable profit before taxes grew 140.3% and was EUR 38.8 (16.2) million.
• In January-June, cost/income ratio improved and was 41.6 (54.7)%. Also comparable cost/income improved and was 40.0 (51.6)%.
• In the second quarter, cost/income ratio improved and was 34.4 (54.7)%. Also comparable cost/income ratio improved and was 33.7 (51.4)%.
• Comparable return on equity (ROE) improved and was 24.1 (15.4)% for January-June and 27.3 (14.2)% in the second quarter.

The Group's key figures (1,000 euros)	1-6/2023	1-6/2022	Δ %	2023 Q2	2022 Q2	Δ %
Net interest income	85,459	47,316	81%	49,236	24,229	103%
Fee and commission income and expenses, net	23,007	20,981	10%	12,555	10,730	17%
Total operating income	113,878	68,386	67%	63,181	33,843	87%
Total operating expenses	-47,242	-37,424	26%	-21,674	-18,521	17%
Impairment losses on financial assets, net	-4,309	1,126	-483%	-2,714	-1,372	98%
Profit before taxes	61,996	32,168	93%	38,699	13,942	178%
Cost/income ratio, %	41.6%	54.7%	-24%	34 .4%	54.7 %	-37%
Balance sheet total	7,014,730	5,890,317	19%	7,014,730	5,890,317	19%
Equity	470,229	355,874	32%	470,229	355,874	32%
Return on assets (ROA) %	1.5%	0.9 %	70%	1.7%	0.8 %	116%
Return on equity (ROE) %	23.7%	13.7%	73%	27.2%	12.2 %	123%
Earnings per share (EPS), EUR	1.57	0.86	81%	0.93	0.37	152%
Total capital (TC) ratio %	16.0%	13.2%	21%	16.0%	13.2%	21%
Common Equity Tier 1 (CET1) capital ratio %	14.1%	13.2%	7%	14.1%	13.2%	7%
Comparable profit before taxes	62,979	36,171	74%	38,822	16,158	140%
Comparable cost/income ratio, %	40.0%	51.6 %	-23%	33.7%	51.4 %	-34%
Comparable return on equity (ROE) %	24.1%	15.4 %	57%	27.3%	14.2 %	92%

Outlook for the 2023 accounting period (unchanged)
The Company estimates that profitable growth will continue to be strong. The Group's 2023 comparable profit before taxes will increase significantly compared to the previous financial year and will exceed EUR 100 million.

Oma Savings Bank Plc
Board of Directors

Additional information:

APasi Sydänlammi, CEO, puh +358 45 657 5506, pasi.sydanlammi@omasp.fi
Sarianna Liiri, CFO, puh. +358 40 835 6712, sarianna.liiri@omasp.fi
Minna Sillanpää, CCO, tel. +358 50 66592, minna.sillanpaa@omasp.fi

DISTRIBUTION
Nasdaq Helsinki Ltd
Major media
www.omasp.fi

OmaSp is a growing Finnish bank and the largest savings bank in Finland based on total assets. About 500 professionals provide nationwide services through OmaSp’s 45 branch offices and digital service channels to 200,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations.

OmaSp core idea is to provide personal service and to be local and close to its customers, both in digital and traditional channels. OmaSp strives to offer premium level customer experience through personal service and easy accessibility. In addition, the development of the operations and services is customer-oriented. The personnel is committed and OmaSp seeks to support their career development with versatile tasks and continuous development. A substantial part of the personnel also own shares in OmaSp.

Attachments

• OmaSp Half-Year Financial Report 30 June 2023
• OmaSp Pillar III Disclosure Report on capital adequacy and risk management 30 June 2023

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