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OmaSp Interim Report 1.1.-30.9.2022
Kurs & Likviditet
Beskrivning
| Land | Finland |
|---|---|
| Lista | Mid Cap Helsinki |
| Sektor | Finans |
| Industri | Bank |
OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 31 OCTOBER 2022 AT 8.30 A.M. EET, INTERIM REPORT Q3
Oma Savings Bank Plc’s Interim Report 1.1.-30.9.2022: Comparable profit before taxes EUR 18.9 million for the third quarter - an increase of 35% compared to the comparison period
This release is a summary of Oma Savings Bank’s (OmaSp) January-September 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:
“OmaSp's development of the business has continued to be excellent during the third quarter as well. The ever-strengthening profitability has remained strong despite the uncertain operating environment. About a thousand new customer relationships have been still created every month. At the beginning of September, the company issued a positive profit warning.
Operational efficiency is again shown as an excellent cost/income ratio. Comparable cost/income ratio was 45.3% for the third quarter.
Development of both main sources of income has continued to be strong. In addition to volume growth, as expected, development of net interest income has been accelerated by the expected general rise in interest rates. During the third quarter, net interest income increased by 31% and fee and commission income by 25% compared to the previous year.
During the third quarter, return on equity (ROE%) was 16.1% and comparable return on equity (ROE%) rose to 17.1%.
For January-September, profit before taxes amounted to EUR 49.9 million. The figures for the comparative period included a significant one-off item of around EUR 22 million. Comparable profit before tax was EUR 55.1 million, an increase of a whopping 42%.
OmaSp well prepared for the uncertainty in the operating environment
OmaSp has continued to be prepared for uncertainty in the operating environment and initiated measures to strengthen capital and liquidity buffers during the third quarter. The bank's strong financial position and earned confidence enabled a successful emission of EUR 150 million in exceptionally challenging market conditions. A debenture loan of EUR 20 million was also implemented. Interest rate hedging measures have also been implemented during the third quarter.
The quality of OmaSp's loan portfolio is at a good level, and additional allowances have been made for individual customers' payment difficulties. In the third quarter, impairment losses on financial assets of EUR 1.6 million were recorded, which included an additional allowance based on management's judgement of EUR 1.0 million.
OmaSp from excellent starting points toward the end of the year
We will continue investments to ensure future competitiveness and our investments in customer experience. Preparations for the new branch to open in Iso Omena in Espoo are in the final and the branch will be opened to customers in November. Also in Tampere the second full-service branch will be opening in December 2022.
The date of merger of Liedon Savings Bank has been confirmed on 28 February 2023. With the merger, the growing volumes will further improve OmaSp's cost efficiency and business profitability. The arrangement will increase OmaSp's profit by 15-20 million euros in the next few years.
Especially during uncertain times, the importance of the bank's strong financial position is highlighted. Thanks to flexible operating models, OmaSp has been able to deliver strong results even in a changing operating environment, and the bank continues from good starting points towards the end of the financial year.”
January – September 2022
• Net interest income grew strongly by 27,5% in January-September compared to the same period last year. In addition to volume growth, net interest income was increased by increased market interest rates. In the third quarter, net interest income increased by 31,0%.
• Home mortgage portfolio increased by a total of 22.3% over the previous 12 months. Corporate loan portfolio increased by 42.7% over the previous 12 months.
• Deposit stocks grew by 11.4% over the previous 12 months.
• Fee and commission income and expenses (net) item increased due to volume growth by 26,7% in January-September. In the third quarter, fee and commission income and expenses (net) item increased by 25,5%.
• Impairment losses on financial assets decreased compared to the previous year and the impairment losses totalled EUR 0,4 (5,7) million. During the third quarter, impairment losses on financial assets were EUR 1,6 (2,1) million.
• In January-September, profit before taxes decreased due to a significant positive single item recorded in the comparative period 2021 (EUR 22.3 million). Profit before taxes totalled EUR 49,9 (65,3) million.
• For January-September, comparable profit before taxes increased significantly compared with the comparative period and was EUR 55,1 (38,7) million.
• For the third quarter, profit before taxes increased compared with the comparative period and was EUR 17,8 (15,3) million. For the third quarter, comparable profit before taxes increased and was EUR 18,9 (14,0) million.
• For January-September, cost/income ratio weakened due to one-off items in the comparative period and was 51,9% (39,2%). Comparable cost/income ratio was 49,5% (47,8%).
• For the third quarter, cost/income ratio was 46,7% (42,6%). Comparable cost/income ratio was 45,3% (44,3%).
• Comparable return on equity (ROE) improved and was 15,7% (11,1%) for January-September. For the third quarter, comparable return on equity (ROE) was 17,1% (11,6)%.
| The Group's key figures (1,000 euros) | 1-9/2022 | 1-9/2021 | Δ % | 2022 Q3 | 2021 Q3 | Δ % |
| Net interest income | 74,296 | 58,257 | 28% | 26,981 | 20,588 | 31% |
| Fee and commission income and expenses, net | 31,154 | 24,592 | 27% | 10,173 | 8,107 | 25% |
| Total operating expenses | -54,353 | -45,776 | 19% | -16,930 | -12,942 | 31% |
| Impairment losses on financial assets, net | -431 | -5,661 | -92% | -1,557 | -2,058 | -24% |
| Profit before taxes | 49,941 | 65,304 | -24% | 17,772 | 15,348 | 16% |
| Cost/income ratio, % | 51.9% | 39.2% | 32% | 46.7% | 42.6% | 9% |
| Balance sheet total | 5,849,001 | 4,902,204 | 19% | 5,849,001 | 4,902,204 | 19% |
| Equity | 350,730 | 384,963 | -9% | 350,730 | 384,963 | -9% |
| Return on assets (ROA) % | 1.0% | 1.5% | -36% | 1.0% | 1.0% | -3% |
| Return on equity (ROE) % | 14.2% | 18.8% | -24% | 16.1% | 12.7% | 26% |
| Earnings per share (EPS), EUR | 1.34 | 1.76 | -24% | 0.47 | 0.41 | 15% |
| Common Equity Tier 1 (CET1) capital ratio % | 13.0% | 16.5% | -21% | 13.0% | 16.5% | -21% |
| Comparable profit before taxes | 55,092 | 38,695 | 42% | 18,921 | 14,015 | 35% |
| Comparable cost/income ratio, % | 49.5% | 47.8% | 3% | 45.3% | 44.3% | 2% |
| Comparable return on equity (ROE) % | 15.7% | 11.1% | 41% | 17.1% | 11.6% | 47% |
Outlook for the 2022 accounting period (updated 6 September 2022)
The Company estimates that profitable growth will continue to be strong. The Group's 2022 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 330 professionals provide nationwide services through OmaSp’s 35 branch offices and digital service channels to 160,000 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.