CORRECTION: Oma Savings Bank Plc’s Interim Report 1.1.-31.3.2025: High costs and declining market interest rates weighed on the result, work to strengthen OmaSp continues

OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 5 MAY 2025 AT 13.00 A.M. EET, INTERIM REPORT Q1

CORRECTION: Oma Savings Bank Plc’s Interim Report 1.1.-31.3.2025: High costs and declining market interest rates weighed on the result, work to strengthen OmaSp continues

This release corrects the January-March interim report published todayat9.45 a.m. EET. The CEO’s review contained an incorrect figure regarding the total investments in the Noste project. The corrected sentence reads: Total investments in the Noste project reached EUR 11.6 million over its duration.

Below the corrected stock exchange release and the interim report January-March 2025 attached.

Oma Savings Bank Plc’s Interim Report 1.1.-31.3.2025: High costs and declining market interest rates weighed on the result, work to strengthen OmaSp continues

This release is a summary of Oma Savings Bank’s (OmaSp) January-March 2025 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

CEOKarri Alameri: High costs and declining market interest rates weighed on the result, work to strengthen OmaSp continues

”I had the honour of starting as the CEO of Oma Savings Bank at the end of March. In recent weeks, I have engaged with the bank’s personnel, customers, and stakeholders across Finland. These discussions have underscored OmaSp’s strong customer relationships, employee commitment, as well as comprehensive range of services, and personalised service model. These elements provide a solid foundation for OmaSp’s next phase. It is clear that we must continue refining our policies and evolving our ways of working. Trust in the Company is rebuilt through actions.

The comparable profit before taxes for the first quarter was EUR 4.6 million and the comparable cost/income ratio of 54.4%. Profit and profitability were burdened by increased operating and personnel expenses, as well as lower net interest income due to declining market interest rates.

The increase in costs is primarily attributed to the implementation of the risk management action plan (the “Noste”) initiated in summer 2024. The final investments in the project were made as planned in the first quarter, and new operating models are being integrated into daily operations. Total investments in the Noste project reached EUR 11.6 million over its duration. What is more, we continue to act on the findings of the supervisory assessment.

Net interest income decreased by 18.3% compared to the comparison period, totalling EUR 46.9 million. The decline is due to fallen market interest rates. The volumes transferred from Handelsbanken have contributed to the development of net interest income as market interest rates have declined.

Fee and commission income and expenses (net) remained nearly at the level of the comparison period, amounting to EUR 14.7 million.

The mortgage loan portfolio increased by 3.0%, the corporate loan portfolio by 0.4%, and the deposit base by 2.7% from the level of the previous year.

Impairment losses on financial assets totalled EUR -22.3 million in January–March. Approximately one-third was related to the update of the calculation model for expected credit losses (ECL), another third to increased allowances in the portfolio, which is being wound down in a controlled manner, and the remaining third to other impairment losses on the loan portfolio due to the general uncertain economic situation.

Additionally, a provision of EUR 3.0 million was made for the first quarter to prepare for potential sanctions from the Finnish Financial Supervisory Authority (FIN-FSA) due to deficiencies identified in the final inspection report on the prevention of money laundering and terrorist financing. The FIN-FSA’s audit covered the period prior to December 2023. Measures to rectify the deficiencies were initiated while the audit was underway last year.

Customer and employee satisfaction at an excellent level

Following the Handelsbanken acquisition, we gained 10,000 new customers last autumn, and the integration has progressed smoothly. We have 48 branches covering all key growth and regional centres in Finland. In January–March, approximately 800 new customer relationships were established organically per month. OmaSp has a strong customer base of over 200,000. We are committed to offering services to households and SMEs across our network.

Our customer and employee surveys indicated that satisfaction has remained at the excellent level of previous years. I want to extend my gratitude to our personnel for their exemplary work. Committed and motivated personnel are crucial to OmaSp’s future success.

OmaSp’s financial position is stable, with a good solvency and liquidity position. The total capital (TC) ratio further strengthened to 17.7% at the end of March. The accumulated equity exceeds EUR 583 million.

I look to the future with confidence. We will continue to develop our operations, invest in our core business, and strengthen the customer experience for both existing and new customers. Our strategy aims for profitable growth.”

January–March 2025

• In January–March, net interest income decreased by 18.3% compared with the same period last year. Net interest income totalled EUR 46.9 (57.4) million.
• Mortgage portfolio increased by 3.0% during the previous 12 months. Corporate loan portfolio increased by 0.4% during the previous 12 months.
• Deposit base increased by 2.7% over the past 12 months.
• From January to March, fee and commission income and expenses (net) decreased mainly due to lower lending commissions compared to the comparison period, 2.6%.
• From January to March, total operating income decreased by 18.9% compared to the comparison period. In the first quarter, comparable total operating income decreased by 19.8% and was EUR 59.5 (74.3) million.
• From January to March, total operating expenses grew in total by 31.9%. The growth is mainly explained by the costs of the Company’s ongoing extensive risk management development projects, the authority processes and the promotion of a controlled winding down plan related to the non-compliance with the guidelines. In addition, the number of personnel increased compared to the comparison period due to business arrangements, the opening of new branches and the strengthening of the risk management processes. Other operating expenses were in total EUR 22.2 (16.4) million, of which the development costs of the risk management action plan and investigation costs amounted to EUR 5.3 million.
• Comparable total operating expenses grew by 27.9% in the first quarter and were EUR 32.2 (25.2) million. Of this amount the risk management action plan (the ”Noste”) amounted to EUR 3.3 million. The measures implemented in the first quarter completed the action plan initiated in the summer of 2024.
• For January-March, the impairment losses on financial assets were in total EUR -22.3 (-23.1) million. During the reporting period, the Company updated the calculation model for expected credit losses (ECL) as part of a larger operational programme and development of risk control. The total impact of the updated model increased the ECL by approximately EUR 8.5 million. In addition, the amount of impairment losses was impacted by an increase in allowances in the controlled winding down of the portfolio, which had an impact of approximately EUR 5.7 million. In other credit portfolio, impairment losses amounted to approximately EUR 8.1 million, and the development was particularly affected by the overall economic uncertainty.
• For January-March, profit before taxes was EUR 3.1 (24.7) million and comparable profit before taxes was EUR 4.6 (25.6) million.
• In the first quarter, cost/income ratio was 57.4 (35.2)% and comparable cost/income ratio was 54.4 (34.1)%.
• In the first quarter, comparable return on equity (ROE) was 2.5 (15.5)%.
• Total capital (TC) ratio was 17.7 (15.6)%.

The Group's key figures (1,000 euros)	1.3.2025	1.3.2024	Δ %	1.12.2024
Net interest income	46,88	57,369	-18 %	213,097
Fee and commission income and expenses, net	12,439	12,766	-3 %	50,745
Total operating income	60,074	74,08	-19 %	270,068
Total operating expenses	-34,24	-25,958	32 %	-111,004
Impairment losses on financial assets, net	-22,322	-23,112	-3 %	-83,379
Profit before taxes	3,111	24,668	-87 %	74,589
Cost/income ratio, %	57.4%	35.2%	63 %	41.3%
Balance sheet total	7,517,814	7,531,291	0 %	7,709,090
Equity	583,026	527,426	11 %	576,143
Return on assets (ROA) %	0.1%	1.0%	-88 %	0.8%
Return on equity (ROE) %	1.7%	14.9%	-89 %	10.7%
Earnings per share (EPS), EUR	0.07	0.60	-88 %	1.80
Total capital (TC) ratio %	17.7%	16.9%	5 %	15.6%
Common Equity Tier 1 (CET1) capital ratio %	16.5%	15.4%	8 %	14.4%
Comparable profit before taxes	4,617	25,626	-82 %	86,656
Comparable cost/income ratio, %	54.4%	34.1%	60 %	37.8%
Comparable return on equity (ROE) %	2.5%	15.5%	-84 %	12.4%

Outlook for the financial year 2025 adjusted

OmaSp updated its expected credit loss (ECL) calculation model in the first quarter and made a provision to prepare for possible sanctions following the final inspection report from the FIN-FSA on anti-money laundering and terrorist financing. These had a total one-off impact of approximately EUR -11 million on the results. Overall economic uncertainly has further increased. Therefore, OmaSp maintains its earnings guidance on the Group’s comparable profit before taxes to be EUR 65–80 million for the financial year 2025, with a clarification that the figure is expected to be below the mid-point of the range.

Business outlook and earnings guidance are as follows:

The outlook for the Company's business for the financial year 2025 is affected by the decline in market interest rates and the continued high level of costs due to IT investments and system improvements required by risk management and quality processes. In addition, the Company continues to invest in customer experience on different channels. The uncertainty of the operating environment and economic situation affects the development of balance sheet items and comparable profit for the financial year 2025.

Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2025. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management’s insight into the Group’s business development.

We estimate the Group’s comparable profit before taxes to be EUR 65–80 million for the financial year 2025, with a clarification that the figure is expected to be below the mid-point of the range (comparable profit before taxes was EUR 86.7 million in the financial year 2024).

Oma Savings Bank Plc

Additional information:
Karri Alameri, CEO, tel. +358 45 656 5250, karri.alameri@omasp.fi

DISTRIBUTION: 
Nasdaq Helsinki Ltd
Major media
www.omasp.fi

OmaSp is a solvent and profitable Finnish bank. About 500 professionals provide nationwide services through OmaSp’s 48 branch offices and digital service channels to over 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

• Oma Savings Bank Plc Interim Report 1.1.-31.3.2025