OMA SAVINGS BANK PLC, STOCK MARKET RELEASE OF MAY 2, 2022 AT 8:30 AM EET, Q1 INTERIM REPORT
oma Savings Bank Plc Interim Report 1.1.-31.3.2022: Profitable growth continues – comparable profit before tax increased by 100%
This release is a summary of the January to March 2022 interim report of Oma Savings Bank (OmaSp), 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 not Sydanlammi: Profitable growth continues – comparable profit before tax increased by 100%
“OmaSp’s performance at the start of the year was excellent and we can be very satisfied with the development of the company. Demand in all key product areas remained at a good level and volume growth remained strong at the start of the year. The business transferred from Eurajoen Savings Bank has been successfully integrated into OmaSp’s operations in the first quarter.
Core revenue streams continued to grow strongly, with net interest income up 28% and fee and commission income and expenses up 30% year-on-year. Commercial efficiency has also improved compared to the previous year and the comparable cost/income ratio stands at 51.9%.
The company’s strong performance is reflected in return on equity as well as earnings per share. Return on equity (ROE%) reached 15.3% and comparable return on equity (ROE%) up to 16.8%, both well above the target level of 10%. Earnings per share improved by 56% to EUR 0.49.
Profit before tax increased by 56% to 18.2 million euros. Comparable profit before tax doubled to EUR 20.0 million.
The year continues from a great start
We have been preparing for the application of the IRB method in capital adequacy accounting for a long time and applied for approval with the Finnish Financial Supervisory Authority in early February. With the IRB method, the use of OmaSp capital will become even more efficient in the years to come. It is important for us that the application of the IRB method brings new credit risk management methods and places OmaSp in a position comparable to reference banks.
Earlier this year, we entered into a long-term collaboration with Kyndryl-Samlink for IT services. They have strong expertise in the development of financial IT services and through long-term cooperation we aim to create an even more modern and cost-effective IT environment.
The direct effects of the Russian invasion war have so far been limited on the bank’s operations. The situation is generally reflected in the economic environment by an acceleration of inflation and a rise in interest rates. The war has highlighted the existence of cyber threats and we have updated our preparedness measures and policies.
We continue to invest heavily in improving customer service and the customer experience. We will open a new full-service branch in the city of Espoo during the current year to meet the increased demand in the metropolitan area. We continued to develop digital services and bring new features to mobile banking. We have also started a national collaboration with Suomen Yrittäjät (an interest and service organization for SMEs in Finland). Entrepreneurs and their businesses make up a significant portion of our growing customer base in Finland.
The start of 2022 has been a success and we are continuing the current year from excellent starting points. Consistent with our earnings guidance, we expect OmaSp’s profitable growth to continue.
• Net interest income increased by 28.3% in January-March compared to the same period last year.
• The residential mortgage portfolio increased by a total of 27.9% over the previous 12 months. At the same time, the business loan portfolio increased by 37.8%.
• Deposit inventories have increased by 25.0% over the past 12 months.
• Income and expenses (net) of fees and commissions increased due to volume growth from January to March of 29.7%.
• Total operating income increased by 18.5% during the first quarter and amounted to EUR 34.5 million.
• Impairment losses on financial assets (net) decreased compared to the comparison period and amounted to 2.5 (-2.8) million EUR in January-March.
• The first quarter cost/income ratio increased to 54.6 (49.9)%. The comparable cost/income ratio fell to 51.9 (52.4)%.
• For January-March, the profit before tax increased significantly compared to the comparison period of the previous year and amounted to 18.2 (11.7) million euros.
• The comparable profit before tax for the first part of the year increased significantly compared to the comparative period and amounted to 20.0 (10.0) million euros.
|The key to the group
figures (1,000 euros)
|Net interest income||23,086||17,999||28%||80 130|
|Income and expense from fees and commissions, net||10,251||7,902||30%||33,686|
|Total operating expenses||-18,903||-14,412||31%||-65,294|
|Impairment losses on financial assets, net||2,498||-2,791||-190%||-7,294|
|Cost/revenue ratio, %||54.6%||49.9%||9%||41.9%|
|Total balance sheet||5,518,011||4,459,307||24%||5,372,633|
|Equity||371 118||353,859||5%||401 294|
|Return on assets (ROA) %||1.1%||0.8%||36%||1.4%|
|Return on equity (ROE) %||15.3%||10.5%||46%||17.6%|
|Earnings per share (EPS), EUR||0.49||0.32||56%||2.22|
|Common Equity Tier 1 (CET1) ratio %||14.6%||15.0%||-3%||15.5%|
|Comparable profit before taxes||20,013||10,043||99%||53,142|
|Comparable cost/income ratio, %||51.9%||52.4%||-1%||48.0%|
|Comparable return on equity (ROE) %||16.8%||9.0%||87%||11.2%|
Orlooked for fiscal year 2022 (ungangé)
The Company believes that profitable growth will continue to be strong. The Group’s 2022 comparable pre-tax result will increase compared to the previous year.
Oma Savings Bank Plc
Pasi Sydänlammi, CEO, puh +358 45 657 5506, firstname.lastname@example.org
Sariana Liiri, CFO, puh. +358 40 835 6712, email@example.com
Minna Sillanpää, CCO, tel. +358 50 66592, firstname.lastname@example.org
Nasdaq Helsinki Ltd
OmaSp is a growing Finnish bank and Finland’s largest savings bank by total assets. Approximately 330 professionals provide services nationwide through OmaSp’s 35 branches and digital service channels to more than 150,000 clients. OmaSp focuses primarily on retail banking operations and offers its customers a wide range of banking services both through its own balance sheet and by acting as an intermediary for its partners’ products. Intermediated products include credit insurance, investment and loan products. OmaSp is also engaged in mortgage banking.
The central idea of OmaSp is to provide personalized service and to be local and close to its customers, both in digital and traditional channels. OmaSp strives to provide a high level customer experience through personalized service and easy accessibility. In addition, the development of operations and services is customer-oriented. Staff are engaged and OmaSp seeks to support their career development with cross-functional tasks and continuous development. A substantial part of the staff also holds OmaSp shares.
OmaSp interim report 1.1.-31.3.2022