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Oma Savings Bank Plc´s Half-Year Financial Report 1.1.-30.6.2021: Growth continues - the best earnings ever since the beginning of the year
OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 2 AUGUST 2021 AT 8.30 A.M. EET, HALF-YEAR FINANCIAL REPORT
Oma Savings Bank Plc’s Half-Year Financial Report 1.1.-30.6.2021: Growth continues - the best earnings ever since the beginning of the year
This release is a summary of Oma Savings Bank's (OmaSp) January-June 2021 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:
”The beginning of the year was the best in history and all key indicators have improved across the board. Business volumes have continued to grow strongly, and cost efficiency has been further improved.
The main sources of income grew strongly during the first half of the year, net interest income by 20% and fee and commission income by 17%. In addition, we recognized in operating income the one-off item received from the termination of the core banking project, which has a positive effect on the result of approximately EUR 22 million. Credit losses have remained low and the quality of the loan portfolio has continued to improve.
The comparable cost/income ratio improved further during the first half of the year and was 49.6%. Comparable return on equity (ROE) rose to 10.6% during the first half of the year.
The profit before taxes for the second quarter was EUR 38.3 million. Comparable profit before taxes doubled to EUR 14.6 million.
The profit before taxes for the first half of the year rose to a new record level and was EUR 50 million. Comparable profit before taxes increased by a whopping 175% to EUR 24.7 million. OmaSp's balance sheet is approaching the 5 billion mark and increased by 9% during the first half of the year.
The number of shareholders increased significantly
Business growth and continuously strengthened profitability have further improved shareholder value. This has been reflected in the increased interest of investors in OmaSp and the number of new owners has increased 2.5 times during the year.
A record dividend of EUR 0.30 will be paid in the autumn after the end of the profit-sharing restrictions.
Earnings guidance upgraded
OmaSp has issued a positive profit warning twice this year and the earnings guidance was upgraded again in August 2021. The starting points for the rest of the year are excellent.
The merger of Eurajoen Savings Bank into OmaSp is proceeding as planned and the goal is to complete the business transfer in December 2021.”
January – June 2021
• Net interest income increased strongly in April-June by 23.8% and in January-June by 20.0% compared to the same period last year.
• The home mortgage portfolio increased by a total of 5.8% during the second quarter. Over the previous 12 months, the home mortgage portfolio grew 22.7%. At the same time, the corporate loan portfolio increased by 27.6%.
• The deposit stocks grew by 6.6% during the second quarter. The previous 12 months had an increase of 20.9%.
• The ’Fee and commission income and expenses (net)’ item increased in April-June by 17.1% and in January-June by 17.4% compared to the same period last year.
• In June, the company announced that it had agreed with Cognizant to terminate the contract for the core banking project. As part of the agreement Cognizant paid OmaSp a financial compensation, which had a positive impact of approximately EUR 22 million on the company's profit before taxes.
• The company issued a positive profit warning in June and revised its earnings guidance for the financial year 2021.
• The total operating income grew by 143.9% during the second quarter and came to a total of EUR 57.6 million. For January-June, the total operating income grew by 61.9% to EUR 86.8 (53.6) million.
• The impairment losses on financial assets decreased compared to the comparison period and were EUR 0.8 (3.9) million in April-June. For the first half of the year, the impairment losses on financial assets were EUR 3.6 (12.5) million.
• The cost/income ratio improved significantly in the second quarter and was 32.0 (56.2)%. The comparable cost/income ratio improved to 47.0 (52.8)%.
• For April-June, the profit before taxes increased significantly compared to the previous financial year and was EUR 38.3 (6.5) million. For the first half of the year, the profit before taxes increased significantly compared to the previous financial year and was EUR 50.0 (13.7) million.
• The comparable profit before taxes for the second quarter increased significantly compared with the comparative period and was EUR 14.6 (7.3) million. For the first half of the year, the comparative profit before taxes was EUR 24.7 (9.0) million.
The Group's key figures (1,000 euros) | 1-6/2021 | 1-6/2020 | Δ % | 2021 Q2 | 2020 Q2 | Δ % |
Net interest income | 37,668 | 31,391 | 20% | 19,669 | 15,886 | 24% |
Fee and commission income and expenses, net | 16,485 | 14,042 | 17% | 8,583 | 7,328 | 17% |
Total operating expenses | -32,834 | -27,524 | 19% | -18,422 | -13,291 | 39% |
Impairment losses on financial assets, net | -3,603 | -12,453 | -71% | -813 | -3,922 | -79% |
Profit before taxes | 49,956 | 13,678 | 265% | 38,284 | 6,457 | 493% |
Cost/income ratio, % | 38.0% | 51.3% | -26% | 32.0% | 56.2% | -43% |
Balance sheet total | 4,776,891 | 3,838,097 | 24% | 4,776,891 | 3,838,097 | 24% |
Equity | 383,434 | 329,789 | 16% | 383,434 | 329,789 | 16% |
Return on assets (ROA) % | 1.7% | 0.6% | 189% | 2.6% | 0.6% | 341% |
Return on equity (ROE) % | 21.6% | 6.8% | 217% | 33.1% | 6.5% | 410% |
Earnings per share (EPS), EUR | 1.34 | 0.38 | 256% | 1.03 | 0.18 | 477% |
Common Equity Tier 1 (CET1) capital ratio % | 16.4% | 16.4% | 0% | 16.4% | 16.4% | 0% |
Comparable profit before taxes | 24,679 | 8,966 | 175% | 14,636 | 7,276 | 101% |
Comparable cost/income ratio, % | 49.6% | 55.6% | -11% | 47.0% | 52.8% | -11% |
Comparable return on equity (ROE) % | 10.6% | 4.5% | 136% | 12.6% | 7.3% | 73% |
Outlook for the 2021 accounting period (updated 2 August 2021)
The company upgrades in June revised outlook and earnings guidance for 2021 for comparable profit before taxes. The company's profit before taxes and comparable profit before taxes for 2021 will increase significantly compared to the previous financial year. The result for the financial year is boosted by the continued favorable business development.
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 shortly
OmaSp is a growing Finnish bank and the largest savings bank in Finland based on total assets. About 300 professionals provide nationwide services through OmaSp’s 32 branch offices and digital service channels to 140,000 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.
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