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OMA SAVINGS BANK PLC, STOCK MARKET RELEASE DATED MAY 2, 2022, 8:30 AM EET, Q1 INTERIM REPORT
granny Interim report of Sparkassen AG 1.1.-31.3.2022: Profitable growth continues – comparable earnings before taxes increased by 100%
This press release is a summary of Oma Savings Bank (OmaSp) January to March 2022 Interim Report available in the PDF file attached to this stock exchange release and on the company’s website at www.omasp.fi
CEO Pasi Sydänlammi: Profitable growth continues – comparable earnings before taxes increased by 100%
“GrandmaSps early year performance was Excellent and we can be very satisfied with the business development. Demand in all major product areas remained at good levels and volume growth continued strongly at the beginning of the year. The business transferred from Eurajoen Savings Bank has been successfully integrated GrandmaSps operations in the first quarter.
The main sources of income continued to perform strongly, with net interest income up 28% and fee and commission income and expenses up 30% year-on-year. Business efficiency also improved compared to the previous financial year and the comparable cost-income ratio was 51.9%.
The strong performance of the company is reflected in both the return on equity and the earnings per share. Return on equity (ROE%) increased to 15.3% and comparable return on equity (ROE%) to 16.8%, both well above the 10% target. Earnings per share improved by 56% to EUR 0.49.
Profit before tax increased by 56% to EUR 18.2 million. The comparable result before taxes doubled to EUR 20.0 million.
The year continues from an excellent starting position
We have spent a long time preparing for the use of the IRB method in capital adequacy calculations and submitted an application for approval to the Finnish Financial Supervisory Authority in early February. With the IRB method, OmaSp’s use of capital will become even more efficient in the coming years. It is important to us that the application of the IRB method brings new methods of credit risk management and puts OmaSp in a comparable position with the benchmark banks.
At the beginning of the year we entered into a long-term cooperation with Kyndryl-Samlink for IT services. They have strong expertise in the development of financial IT services and through long-term cooperation we strive for an even more modern and cost-effective IT environment.
The direct impact of the Russian invasion war on the bank’s operations has so far been limited. The situation is generally reflected in the economic environment in accelerating inflation and rising interest rates. The war has highlighted the existence of cyber threats and we have updated our preparedness measures and policies.
We continue to invest heavily in improving customer service and customer experience. We will open a new full-service branch in the city of Espoo in the current year to meet the increased demand in the metropolitan area. We have further developed the digital services and introduced new functions for mobile banking. We also started a nationwide cooperation with Suomen Yrittäjät (an interest and service organization for SMEs in Finland). Entrepreneurs and their companies represent a significant part of our growing customer base in Finland.
The start of 2022 was successful and we are continuing the current financial year from an excellent starting position. Consistent with our earnings guidance, we expect OmaSp to continue its profitable growth.”
January-march 2022
• Net interest income increased by 28.3% from January to March compared to the same period last year.
• The residential mortgage portfolio increased by a total of 27.9% over the last 12 months. At the same time, the corporate loan portfolio increased by 37.8%.
• Deposit stocks grew by 25.0% over the last 12 months.
• Commission income and expenses (net) increased by 29.7% from January to March due to volume growth.
• Total operating income increased by 18.5% to EUR 34.5 million in the first quarter.
• Impairment losses on financial assets (net) decreased compared to the same period of the previous year and amounted to EUR 2.5 (-2.8) million from January to March.
• The cost/income ratio rose to 54.6 (49.9)% in the first quarter. The comparable cost/income ratio fell and amounted to 51.9 (52.4)%.
• For January-March, earnings before taxes increased significantly compared to the same period of the previous year and amounted to EUR 18.2 (11.7) million.
• The comparable profit for the year before taxes increased significantly compared to the comparable period to EUR 20.0 (10.0) million.
|
The key of the group |
1-3/2022 |
1-3/2021 |
Δ% |
1-12/2021 |
|
interest income |
23,086 |
17,999 |
28% |
80,130 |
|
Commission Income and Expense, Net |
10,251 |
7,902 |
30% |
33,686 |
|
business expenses |
-18,903 |
-14,412 |
31% |
-65,294 |
|
Impairment losses on financial assets, net |
2,498 |
-2,791 |
-190% |
-7,294 |
|
profit before taxes |
18,227 |
11,672 |
56% |
83,271 |
|
Cost to Income Ratio, % |
54.6% |
49.9% |
9% |
41.9% |
|
total assets |
5.518.011 |
4,459,307 |
24% |
5,372,633 |
|
Equity capital |
371.118 |
353,859 |
5% |
401,294 |
|
Return on Total Assets (ROA) % |
1.1% |
0.8% |
36% |
1.4% |
|
Return on Equity (ROE) % |
15.3% |
10.5% |
46% |
17.6% |
|
Earnings per share (EPS), EUR |
0.49 |
0.32 |
56% |
2.22 |
|
Common Equity Tier 1 (CET1) ratio % |
14.6% |
15.0% |
-3% |
15.5% |
|
Comparable profit before tax |
20.013 |
10,043 |
99% |
53,142 |
|
Comparable cost/income ratio, % |
51.9% |
52.4% |
-1% |
48.0% |
|
Comparable Return on Equity (ROE) % |
16.8% |
9.0% |
87% |
11.2% |
Oohlook for the 2022 financial year (unchanged)
The company expects profitable growth to remain strong. The Group’s comparable earnings before taxes for 2022 will increase compared to the previous financial year.
Grandma Savings Bank Plc
Additional Information:
Pasi Sydänlammi, CEO, phew +358 45 657 5506, [email protected]
Sariana Liiri, CFO, phew. +358 40 835 6712, [email protected]
Minna Sillanpää, CCO, Tel. +358 50 66592, [email protected]
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Nasdaq Helsinki Ltd
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www.omasp.fi
OmaSp is a growing Finnish bank and the largest savings bank in Finland in terms of total assets. Around 330 specialists support more than 150,000 customers nationwide via the 35 branches and digital service channels of OmaSp. Mainly focused on retail banking, OmaSp offers its customers a wide range of banking services both through their own balance sheets and as an intermediary for their partners’ products. Intermediate products include credit, investment and credit insurance products. OmaSp is also engaged in mortgage banking business.
The core idea of OmaSp is to offer personal service and to be local and close to its customers in both digital and traditional channels. OmaSp strives to provide a superior customer experience through personal service and easy accessibility. In addition, the development of operations and services is customer-oriented. The employees are committed and OmaSp wants to support their career development with varied tasks and continuous development. A significant part of the workforce also owns shares in OmaSp.
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