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Oma Savings Bank Plc's Interim report 1.1.-31.3.2021: Strong earnings from the beginning of the year

Oma Säästöpankki Oyj
·6-min read

OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 3 MAY 2021 AT 8.30 A.M. EET, INTERIM REPORT Q1

Oma Savings Bank Plc’s Interim Report 1.1.-31.3.2021: Strong earnings from the beginning of the year

This release is a summary of Oma Savings Bank’s (OmaSp) January-March 2021 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:
The bank's result for the beginning of the year was excellent. Our main source of income, net interest income and fee and commission income (net), continued to grow strongly. During the beginning of the year, our net interest income increased by 16% and fee and commission income (net) by 18% compared to the previous year. At the same time, operating expenses remained well under control and the cost/income ratio at an excellent level of 49.9%. Return on equity (ROE%) rose to 10.5%, exceeding the target level.

The quality of the loan portfolio is at a good level. We are closely monitoring the financial impact of the corona pandemic and we increased the loss allowance based on management’s judgement by EUR 1.5 million during the beginning of the year. The allowance is now nearly EUR 6 million and is fully available.

The profit before taxes for January-March increased by 62% compared to the comparison period, amounting to EUR 11.7 million. The comparable profit before taxes was EUR 10 million.

Dividends have increased eightfold in six years
The great performance of the business and strong growth in earnings are directly reflected in the bank's dividend payment ability. During the first quarter, we paid dividends for the 2019 financial year within the authorities' profit-sharing restrictions. In March, the Annual General Meeting decided to pay a record dividend of EUR 0.30 per share, as proposed by the Board. The dividend to be paid includes a dividend of EUR 0.24 per share for the financial year 2020 and an additional dividend of EUR 0.06 per share for the financial year 2019. The dividend will be paid upon completion of the profit-sharing restrictions.

The financial year continues from an excellent starting point
Merger negotiations proceeds with the Eurajoen Savings Bank, and decisions will be made in the governing bodies of both banks during the second quarter.

The bank's financial position is strong, and we expect the rapid growth of the business to continue even in the current financial year.”


January-March 2021
• Net interest income continued to increase strongly 16.1% in January-March compared to the same period last year.
• The home mortgage portfolio increased by 4.3% in the early part of the year. Over the previous 12 months, the home mortgage portfolio grew 20%. At the same time, the corporate loan portfolio increased by 17.4%.
• Deposit stocks grew by 1.6% during the first quarter. The previous 12 months had an increase of 19.1%.
• The ’Fee and commission income and expenses (net)’ item increased by 17.7% in the early part of the year over the comparative period.
• Impairment losses on financial assets were EUR 2.8 (8.5) million in January-March. Impairment losses on financial assets are highlighted by the additional loss allowance based on management’s judgement due to prolongation of the corona pandemic. During the first quarter, the company increased its additional loss allowance based on management’s judgement by EUR 1.5 million as the corona pandemic continues to last.
• The cost/income ratio for the first quarter was 49.9 (47.5)%. The comparable cost/income ratio improved to 52.4 (58.2)%.
• The profit before taxes for the first quarter increased significantly compared to the previous financial year and was EUR 11.7 (7.2) million.
• The comparable profit before taxes for the first quarter increased significantly compared with the comparative period and was EUR 10,0 (1,7) million.

The Group's key figures (1,000 euros)

1-3/2021

1-3/2020

Δ %

1-12/2020

Net interest income

17,999

15,505

16%

67,819

Fee and commission income and expenses, net

7,902

6,714

18%

29,257

Total operating expenses

-14,412

-14,233

1%

-51,676

Impairment losses on financial assets, net

-2,791

-8,531

-67%

-21,587

Profit before taxes

11,672

7,222

62%

37,707

Cost/income ratio, %

49.9%

47.5%

5%

46.6%

Balance sheet total

4,459,307

3,526,023

26%

4,381,999

Equity

353,859

317,519

11%

353,493

Return on assets (ROA) %

0.8%

0.7%

19%

0.8%

Return on equity (ROE) %

10.5%

7.4%

41%

9.1%

Earnings per share (EPS), EUR

0.32

0.20

59%

1.04

Common Equity Tier 1 (CET1) capital ratio %

15.0%

16.6%

-10%

15.9%

Comparable profit before taxes

10,043

1,690

494%

26,729

Comparable cost/income ratio, %

52.4%

58.2%

-10%

51.2%

Comparable return on equity (ROE) %

9.0%

1.8%

399%

6.5%


Outlook for 2021 (unchanged)
The company estimates that profitable growth will continue to be strong despite overall economic uncertainty and the Group's 2021 profit before taxes and comparable profit before taxes will grow compared to the previous accounting period.


Oma Savings Bank Plc


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 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 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 con-tinuous development. A substantial part of the personnel also own shares in OmaSp.

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