Oma Savings Bank Plc’s Interim Report 1.1.–30.9.2023: Third quarter comparable profit before taxes increased by 121% and comparable ROE increased to 27.4%

OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 30 OCTOBER 2023 AT 8.30 A.M. EET, INTERIM REPORT Q3

Oma Savings Bank Plc’s Interim Report 1.1.–30.9.2023: Third quarter comparable profit before taxes increased by 121% and comparable ROE increased to 27.4%

This release is a summary of Oma Savings Bank’s (OmaSp) January-September 2023 Interim Report, which can be read from the pdf file attached to this stock exchange release and on the Company’s web pages www.omasp.fi

CEO Pasi Sydänlammi:
“OmaSp's business development has continued to be very strong throughout the year. The third quarter was the best in the Company's history in terms of results, and the profit for nine months exceeds EUR 100 million for the first time. Profit development has been boosted by the acquisition carried out in the beginning of the year, the increase in volumes, and the rise in market interest rates. The stream of customers has continued to be strong despite the challenging cyclical situation and over a thousand new customer relationships have been established each month during the third quarter.

During the third quarter, net interest income increased by 103% compared to the previous year. In addition to volume growth, the normalisation of the interest rate environment contributes to strong growth. The rise in fee and commission income and expenses has also continued in the third quarter and fee and commission income and expenses increased by 20% compared to the previous year.

OmaSp's business development at the beginning of the year can be seen as a significant increase in equity. The equity exceeded 500 million for the first time, being approximately EUR 505 million at the end of September. For the third quarter, the comparable return on equity (ROE%) rose to 27.4%, and for the beginning of the year, the comparable return on equity (ROE%) to 25.7%. The comparable cost/income ratio also improved significantly and, for the first time in the third quarter, reached below 30% and was 29.2%. For the beginning of the year, the comparable cost/income ratio was 36.0% including authority fees.

OmaSp continues to prepare for the weakening cyclical situation, and in the third quarter, a total of EUR 5.5 million in credit losses were recorded, of which additional allowances for changes in the economic environment and a one-off item amounted to EUR 2.2 million. The development of credit losses is at the expected level, and our focus is on the effective management of credit risks and securing our customers' finances. The liquidity situation is also strong, and the refinancing market has worked well for banks with high credit ratings.

For the third quarter, the comparable profit before taxes grew by 121% compared to the comparison period and was EUR 41.8 million. For the beginning of the year, the comparable profit before taxes grew by 90% and was nearly EUR 105 million.

Profitable growth at the core of the business – now and in the future
We will continue to implement our strategy and focus on profitable growth and operational efficiency. From the point of view of the owners, there are again interesting things ahead. The project on the application of the IRB approach in capital adequacy is progressing, and in addition, the acquisition of Handelsbanken's Finnish SME business is on the horizon in the autumn of 2024. OmaSp has recently been the most profitable bank in Finland, and we continue the current financial year from excellent starting points. Our eyes are already focused strongly on the future and on the measures, we can take to ensure the bank's success in the future as well.”

January – September 2023
• In January–September, net interest income grew strongly by 88,6% compared to the previous year. Net interest income totalled EUR 140,1 (74,3) 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 third quarter, net interest income increased by 102,7% compared to the comparative period and totalled EUR 54,7 (27,0) million.
• Home mortgage portfolio increased by 24.4% during the previous 12 months. Corporate loan portfolio increased by 17.3% during the previous 12 months.
• Deposit base grew by 29.0% over the previous 12 months.
• In January–September, fee and commission income and expenses (net) item increased due to volume growth by 13,1%. In the third quarter, fee and commission income and expenses (net) item grew by 20,2% compared to the previous year.
• In January–September, total operating income grew by 71,8% and in the third quarter 81,9% 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 23,4% during the beginning of the year and by 17,1% in the third quarter. 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.
• In the third quarter, the impairment losses on financial assets grew as the general economic situation weakened and were in total EUR -5,5 (-1,6) million. The Company has continued to prepare for the uncertainty of the economic environment and EUR 2.2 million of the impairment losses can be explained by additional allowance based on the management's judgement and a one-off item.
• In January–September, profit before taxes grew and was in total EUR 102,5 (49,9) million. The growth was 105,2% compared to the previous year.
• For the third quarter, profit before taxes grew 127,9% and was in total EUR 40,5 (17,8) million.
• In January–September, comparable profit before taxes grew 90,3% compared to the previous year and was in total EUR 104,8 (55,1) million.
• In the third quarter, comparable profit before taxes grew 121,1% and was EUR 41,8 (18,9) million.
• In January–September, cost/income ratio improved and was 37,4 (51,9)%. Also comparable cost/income improved and was 36,0 (49,5)%.
• In the third quarter, cost/income ratio improved and was 30,1 (46,7)%. Also comparable cost/income ratio improved and was 29,2 (45,3)%.
• Comparable return on equity (ROE) improved and was 25,7 (15,7)% for January–September and 27,4 (17,1)% in the third quarter.

The Group's key figures (1,000 euros)	1–9/2023	1–9/2022	Δ %	2023 Q3	2022 Q3	Δ %
Net interest income	140,138	74,296	89%	54,679	26,981	103%
Fee and commission income and expenses, net	35,234	31,154	13%	12,226	10,173	20%
Total operating income	179,877	104,673	72%	65,999	36,287	82%
Total operating expenses	-67,066	-54,353	23%	-19,824	-16,930	17%
Impairment losses on financial assets, net	-9,857	-431	2,184%	-5,548	-1,557	256%
Profit before taxes	102,501	49,941	105%	40,506	17,772	128%
Cost/income ratio, %	37.4%	51.9%	-28%	30.1%	46.7%	-36%
Balance sheet total	7,071,703	5,849,001	21%	7,071,703	5,849,001	21%
Equity	505,290	350,730	44%	505,290	350,730	44%
Return on assets (ROA) %	1.7%	1.0%	68%	1.8%	1.0%	84%
Return on equity (ROE) %	25.1%	14.2%	77%	26.5%	16.1%	65%
Earnings per share (EPS), EUR	2.59	1.34	94%	0.97	0.47	106%
Total capital (TC) ratio %	16.6%	13.8%	20%	16.6%	13.8%	20%
Common Equity Tier 1 (CET1) capital ratio %	14.8%	13.0%	14%	14.8%	13.0%	14%
Comparable profit before taxes	104,819	55,092	90%	41,840	18,921	121%
Comparable cost/income ratio, %	36.0%	49.5%	-27%	29.2%	45.3%	-35%
Comparable return on equity (ROE) %	25.7%	15.7%	64%	27.4%	17.1%	60%

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:

Pasi 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 the fastest growing in the Nordic countries and Finland’s most profitable bank. 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.

Attachment

• OmaSp Interim Report 1.1.-30.9.2023

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