OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 2 MAY 2022 AT 8.30 A.M. EET, INTERIM REPORT Q1
Oma Savings Bank Plc’s Interim Report 1.1.-31.3.2022: Profitable growth continues - comparable profit before taxes increased by 100%
This release is a summary of Oma Savings Bank’s (OmaSp) January-March 2022 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:Profitable growth continues - comparable profit before taxes increased by 100% “OmaSp's early year performance was excellent and we can be very pleased with the development of the business. Demand in all key product areas has remained at a good level and volume growth has continued strong in the early part of the year. The business transferred from Eurajoen Savings Bank has been successfully integrated into OmaSp's operations during the first quarter.
Main sources of income have continued to develop strongly, Net interest income increased by 28% and Fee and commission income and expenses by 30% compared to the previous year. Business efficiency also improved compared to the previous financial year and the comparable cost/income ratio was 51.9%.
The strong performance of the business is reflected in return on equity as well as earnings per share. Return on equity (ROE%) rose to 15.3% and comparable return on equity (ROE%) to as much as 16.8%, both well above the target level of 10%. Earnings per share improved by 56% to EUR 0.49.
Profit before taxes increased by 56% to EUR 18.2 million. Comparable profit before tax doubled to EUR 20.0 million.
The year continues from an excellent starting point We have been preparing for the application of the IRB method in capital adequacy accounting for a long time and submitted an application for a permit to the Finnish Financial Supervisory Authority in early February. With the IRB method, OmaSp's use of capital will become even more efficient in the coming years. It is important to us that the application of the IRB method brings new methods of credit risk management and puts OmaSp in a comparable position with the benchmark banks.
At the beginning of the year, we entered into a long-term collaboration with Kyndryl-Samlink for IT services. They have strong expertise in developing financial IT services and through long-term cooperation we aim to achieve for 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 as accelerating inflation and rising interest rates. The war has highlighted the existence of cyber threats and we have updated our preparedness measures and policies.
We continue to invest strong in improving customer service and 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 have continued to develop digital services and bring new features to mobile banking. We also launched a nationwide collaboration with Suomen Yrittäjät (an interest and service organization for SMEs in Finland). Entrepreneurs and their companies represent a significant part of our growing customer base in Finland.
The start to 2022 has been successful and we are continuing the current financial year from excellent starting points. In line with our earnings guidance, we expect OmaSp's profitable growth to continue.”
January-March 2022 • Net interest income increased by 28,3% in January-March compared to the same period last year. • Home mortgage portfolio increased by a total of 27.9% over the previous 12 months. At the same time, corporate loan portfolio increased by 37.8%. • Deposit stocks grew by 25.0% over the previous 12 months. • Fee and commission income and expenses (net) item increased due to volume growth in January-March by 29,7%. • Total operating income grew by 18,5% during the first quarter and came to a total of EUR 34,5 million. • Impairment losses on financial assets (net) decreased compared to the comparison period and were EUR 2,5 (-2,8) million in January-March. • Cost/income ratio for the first quarter increased and was 54,6 (49,9)%. The comparable cost/income ratio decreased and was 51,9 (52,4)%. • For January-March, profit before taxes increased significantly compared to the comparison period of the previous year and was EUR 18,2 (11,7) million. • Comparable profit before taxes for the early part of the year increased significantly compared with the comparative period and was EUR 20,0 (10,0) million.
The Group's key figures (1,000 euros)
1-3/2022
1-3/2021
Δ%
1-12/2021
Net interest income
23,086
17,999
28%
80,130
Fee and commission income and expenses, 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
Profit before taxes
18,227
11,672
56%
83,271
Cost/income ratio, %
54.6%
49.9%
9%
41.9%
Balance sheet total
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) capital 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%
Outlook for the financial year 2022 (uncganged) The Company estimates that profitable growth will continue to be strong. The Group's 2022 comparable profit before taxes will increase compared to the previous financial year.
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 330 professionals provide nationwide services through OmaSp’s 35 branch offices and digital service channels to over 150,000 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.
