Bli medlem
Bli medlem

Du är här

2021-11-01

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)1-9/20211-9/2020Δ %2021 Q32020 Q3Δ %
Net interest income58,25748,92919%20,58817,53917%
Fee and commission income and expenses, net24,59220,92518%8,1076,88318%
Total operating expenses-45,776-38,918
Författare GlobeNewswire