Oma Savings Bank Plc's Interim Report 1.1.-30.9.2021: Accelerated by an excellent quarter, we already exceeded last year's record result

OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 1 NOVEMBER 2021 AT 8.30 A.M. EET, INTERIM REPORT Q3

Oma Savings Bank Plc’s Interim Report 1.1.-30.9.2021: Accelerated by an excellent quarter, we already exceeded last year's record result

This release is a summary of Oma Savings Bank’s (OmaSp) January-September 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 development of OmaSp's earnings and the growth of business volumes have remained strong. All key indicators have improved compared to the comparison period. After nine months, we have already surpassed last year's record earnings.

Demand for home mortgages and corporate loans has continued to be excellent and the loan portfolio has grown rapidly throughout the year. The quality of the loan portfolio is at a good level and the level of credit losses is very low. For the third quarter, the profit before taxes was EUR 15.3 million. Comparable profit before taxes increased by 29% to EUR 14 million.

Both main sources of income have developed strongly throughout the year, net interest income increased by 19% and fee and commission income by 18%. The comparable cost/income ratio continued to improve and was 47.8% from January to September. Comparable return on equity (ROE) rose to 11.1%. For the beginning of the year, the profit is EUR 65.3 million, an increase of a whopping 140%. Comparable profit before taxes almost doubled to EUR 38.7 million.

Investments in digital services
The changing operating environment offers us new opportunities in the field of digital services. Significant investments have been made in, among other things, cloud and data security capabilities, mobile development and extensively to system development. The investments made will improve the customer experience, bring immediate efficiency to our operations and strengthen our competitiveness even in the future.

Strong growth continues
We raised our earnings guidance in early August and issued a positive profit warning again. From the beginning of October, we raised our medium-term strategical profitability target by 10 percentage points. The target level for the cost/income ratio is now less than 45%, which is exceptionally ambitious in the industry. The number tells about the efficiency of our operations.

The acquisition with Eurajoen Savings Bank will take place at the beginning of December and our foothold will expand in the region of Satakunta. According to the current estimate, the positive profit impact of the acquisition on OmaSp is approximately EUR 14-16 million, and in the coming years we estimate the effect on the profit to be EUR 3-5 million.

We welcome the structural arrangements that are taking place within the industry with pleasure. As an agile operator, we have always benefited from changes in the operating environment and we are confident that this will continue to happen.”

January – September 2021
• Net interest income continued to increase strongly by 17,4% in the third quarter and in January-September by 19,1% compared to the same period last year.
• The home mortgage portfolio increased by a total of 22.0% over the previous 12 months. At the same time, the corporate loan portfolio increased by 25.7%.
• The deposit stocks grew by 18.1% over the previous 12 months.
• The ’Fee and commission income and expenses (net)’ item increased in July-September by 17,8% and in January-September by 17,5% 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 the company a financial compensation, which had a positive impact of approximately EUR 22 million on the company's profit before taxes. The compensation was recorded in the second quarter.
• The total operating income grew by 15,0% during the third quarter and came to a total of EUR 30,3 million. For January-September, the total operating income grew by 46,4% to EUR 117,1 (80,0) million.
• The impairment losses on financial assets increased compared to the comparison period and were EUR 2,1 (1,5) million in July-September. For January-September, impairment losses on financial assets decreased compared to the previous year and amounted to EUR 5,7 (14,0) million.
• The cost/income ratio improved in the third quarter and was 42,6 (43,2)%. The comparable cost/income ratio improved to 44,3 (48,0)%.
• In August, the company issued a positive profit warning and revised its earnings outlook for the financial year 2021.
• For July-September, the profit before taxes increased compared to the previous financial year and was EUR 15,3 (13,5) million. For the beginning of the year, the profit before taxes increased compared to the previous financial year and was EUR 65,3 (27,2) million.
• The comparable profit before taxes for the third quarter increased compared with the comparative period and was EUR 14,0 (10,9) million. For January-September, the comparative profit before taxes was EUR 38,7 (19,8) million.

The Group's key figures (1,000 euros)	1-9/2021	1-9/2020	Δ %	2021 Q3	2020 Q3	Δ %
Net interest income	58,257	48,929	19%	20,588	17,539	17%
Fee and commission income and expenses, net	24,592	20,925	18%	8,107	6,883	18%
Total operating expenses	-45,776	-38,918	18%	-12,942	-11,394	14%
Impairment losses on financial assets, net	-5,661	-13,984	-60%	-2,058	-1,531	34%
Profit before taxes	65,304	27,166	140%	15,348	13,488	14%
Cost/income ratio, %	39.2%	48.6%	-19%	42.6%	43.2%	-1%
Balance sheet total	4,902,204	3,952,766	24%	4,902,204	3,952,766	24%
Equity	384,963	343,208	12%	384,963	343,208	12%
Return on assets (ROA) %	1.5%	0.8%	87%	1.0%	1.1%	-8%
Return on equity (ROE) %	18.8%	8.7%	116%	12.7%	12.5%	2%
Earnings per share (EPS), EUR	1.76	0.73	139%	0.41	0.36	15%
Common Equity Tier 1 (CET1) capital ratio %	16.5%	16.5%	0%	16.5%	16.5%	0%
Comparable profit before taxes	38,695	19,819	95%	14,015	10,853	29%
Comparable cost/income ratio, %	47.8%	53.1%	-10%	44.3%	48.0%	-8%
Comparable return on equity (ROE) %	11.1%	6.3%	76%	11.6%	10.0%	16%

Outlook for the 2021 accounting period (updated 2 August 2021)
The company´s business volumes will continue strong growth during financial year 2021. The Group's 2021 profit before taxes and comparable profit before taxes will increase significantly compared to the previous financial year.

Oma Savings Bank Plc
Board of Directors

Additional information:

Pasi Sydänlammi, CEO, tel. +358 45 657 5506, pasi.sydanlammi@omasp.fi
Sarianna Liiri, CFO, tel. +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.

Attachment

• OmaSp Interim Report 1.1.-30.9.2021