OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 6 SEPTEMBER 2022 AT 14.15 P.M. EET, INSIDE INFORMATION

Positive profit warning: Oma Savings Bank Plc upgrades its guidance for year 2022 – comparable profit before taxes increases significantly

Oma Savings Bank Plc (OmaSp or Company) upgrades its previous profit guidance for year 2022. The Company's year 2022 comparable profit before taxes will increase significantly compared to the previous financial year. The result for the financial year is boosted by continued strong business development. Comparable profit before taxes for July-August 2022 was EUR 13.2 million, an increase on the comparative period of 26%.

CEO Pasi Sydänlammi:
“During the summer, OmaSp's business development has continued to be excellent. Both main sources of income have continued strong growth and net interest income increased by 29% during July-August 2022 compared to the same period in the previous year. Rising interest rates will further increase net interest income. An increase of 1% in interest rate will increase net interest income by approximately EUR 20 million annually, calculated from the situation at the end of June.

The Company's cost efficiency has remained at an excellent level and the comparable cost/income ratio was 43.7% in July-August 2022, compared to 42.4% at the same time of the previous year. As the growth continued, the quality of the credit portfolio has remained good and impairment losses on financial assets were only about EUR 0.7 million in July-August 2022.

At the end of June 2022, the Company's total capital (TC) ratio was 13.2%. The capital adequacy position strengthened at the end of July 2022 as market interest rates fell, but as the interest level rose again during August, the fair values of the investments in the liquidity portfolio fell to late June levels. The company is taking measures to increase the buffers of own funds, the first of which will be the issuance of a debenture loan in September 2022. The maximum amount of the debenture loan is EUR 20 million and it will be fully counted in the third quarter's own funds, in addition to the strong earnings for the period. In addition, the Company plans to issue a second debenture loan during the fourth quarter of 2022 with a maximum amount of EUR 20-30 million. A debenture loan is a popular savings product among OmaSp's customers.”

The Group's key figures for July-August 2022 (unaudited):

New outlook and earnings guidance for FY2022 (update 6^th September 2022):
The Company’s business volumes will continue strong growth in FY2022. The Company’s profitable growth is supported by efforts in recent years to improve the customer experience and the availability of customer service through new digital service channels and opening of new units. The increase in net interest income is also strengthened by the rise in market interest rates.

Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2022. A verbal description is used to make a comparison with the comparative period. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management’s insight into the Group’s business development.

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.

Previous outlook and earnings guidance (published in the Financial Statements Release on 7 February 2022):
The Company’s business volumes will continue strong growth in FY2022. The Company’s profitable growth is supported by efforts in recent years to improve the customer experience and the availability of customer service through new digital service channels and opening of new units.

Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2022. A verbal description is used to make a comparison with the comparative period. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management’s insight into the Group’s business development.

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.

Oma Savings Bank Plc

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 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 private and corporate customers. OmaSp focuses primarily on retail banking operations and pro-vides 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.