OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 3 November 2025 AT 9.30 A.M. EET, INTERIM REPORT Q3
Oma Savings Bank Plc’s Interim Report January-September 2025: Moderate result in challenging operating environment – solvency strengthened further
This release is a summary of Oma Savings Bank's (OmaSp) January-September 2025 Interim Report, which can be read from the pdf file attached to this stock exchange release. The report is also available on the Company's website at www.omasp.fi.
CEO Karri Alameri: Moderate result in challenging operating environment – solvency strengthened further
”Despite ongoing economic uncertainty reflected in our business we have maintained a robust operational foundation and delivered a solid result in the third quarter. Our customers continued to exercise caution, with demand for housing loans remaining subdued and investment appetite among SMEs at a low level.
We have continued our determined work to streamline the Company’s processes. During the third quarter, we advanced risk management and internal operating model development projects. The action plan initiated in the second quarter to address the observations made by the supervisor in February will continue until the end of 2025, and EUR 1.7 million related costs were recorded for the third quarter. Also, the controlled winding down portfolio related to non-compliance with the guidelines was advanced, and investigation costs of EUR 0.5 million were recorded.
The comparable result before taxes for the third quarter was EUR 16.1 (27.6) million. As anticipated, the result was weighed down by the decline in net interest income and the increase in operating expenses. The comparable cost/income ratio for the third quarter was 50.1 per cent (36.8). Earnings per share were EUR 0.37.
Comparable operating expenses increased in the third quarter by 10.7 per cent to EUR 26.3 (23.8) million, primarily due to the growth in the number of personnel and branch network expansion. In addition, the Company has several development projects underway to improve risk management processes and to implement the measures required by the supervisor. During the third quarter, however, expenses decreased compared to earlier in the year, as planned.
A smaller loan portfolio and a reduction in market interest rates led to a 23.2 per cent decrease in net interest income, totalling EUR 40.2 (52.4) million.
Fee and commission income and expenses (net) increased by 2.5 per cent to EUR 12.5 (12.2) million, driven mainly by a higher fee and commission income from lending and fund savings. Growth was also supported by the pick-up in capital markets after market swings in the early part of the year.
The mortgage loan portfolio decreased by 3.7 per cent, and the corporate loan portfolio by 17.9 per cent year-on-year. The deposit portfolio decreased by 0.7 per cent.
The challenges in the operating environment are reflected in the quality of the loan portfolio. However, impairment losses on financial assets decreased by 23.8 per cent to EUR -10.1 (-13.3) million. The general economic situation continues to affect the SME sector in particular and is reflected in increased payment difficulties.
Our strength is based on personal and accessible banking services
Oma Savings Bank’s nationwide branch network serves both private and corporate customers in Finland’s key growth and regional centres. This autumn, we expanded several branches to meet growing demand, reaffirming our commitment to personal and accessible banking services.
Our customer-centric approach continues to be recognised, with customer satisfaction remaining high. In the latest EPSI Rating bank survey, we were ranked third for private customer satisfaction, well above the industry average. Customers report feeling valued, receiving the support they need, and perceiving good value for their money. Nonetheless, we recognise opportunities to improve corporate customer satisfaction and are actively enhancing our service quality to better meet their expectations.
In September, S&P Global Ratings affirmed Oma Savings Bank Plc’s credit rating remaining at BBB/A-2, while updating the outlook from stable to negative, particularly due to an increase in non-performing loans (NPLs). S&P expects credit quality to improve gradually, but slowly. In response, during the third quarter we confirmed a plan to reduce the number of NPLs.
The unsecured senior-term bond of EUR 200 million was issued in September under our bond program. It will cover the MREL requirement that will come into effect next year in advance. The bond attracted strong demand with the order book exceeding EUR 600 million, demonstrating investor confidence in our Company.
Our personnel is our most valuable asset. Throughout the autumn we have organised numerous events to foster competence and alignment. Regular employee surveys indicate excellent commitment and satisfaction, providing a robust foundation for our Company’s future success. I extend my sincere thanks to our personnel for their outstanding contributions also this quarter.
Our Company’s financial position is strong. The total capital (TC) ratio strengthened to 19.2 per cent (15.6) at the end of September. The accumulated equity was EUR 605.2 (576.1) million. Common Equity Tier 1 (CET1) capital ratio reached 18.2 per cent, exceeding the current regulatory minimum by 8.9 percentage points.
We are committed to building an even stronger bank and advancing consolidation measures as planned, while also striving to enhance efficiency and customer experience across all service channels. Our objective remains profitable growth, grounded in the Company’s core strengths.”
| The Group’s key figures (1,000 euros) | 1-9/2025 | 1-9/2024 | Δ % | 1-12/2024 | 2025 Q3 | 2024 Q3 | Δ % |
| Net interest income | 131,119 | 162,184 | -19% | 213,097 | 40,223 | 52,374 | -23% |
| Fee and commission income and expenses, net | 37,337 | 37,641 | -1% | 50,745 | 12,483 | 12,176 | 3% |
| Total operating income | 172,493 | 205,687 | -16% | 270,068 | 53,079 | 64,111 | -17% |
| Total operating expenses | -91,939 | -77,087 | 19% | -111,004 | -26,838 | -27,697 | -3% |
| Impairment losses on financial assets, net | -41,525 | -75,807 | -45% | -83,379 | -10,116 | -13,272 | -24% |
| Profit before taxes | 37,246 | 52,007 | -28% | 74,589 | 15,524 | 22,836 | -32% |
| Cost/income ratio, % | 53.9% | 37.6% | 43% | 41.3% | 51.1% | 43.4% | 18% |
| Balance sheet total | 7,536,135 | 7,775,086 | -3% | 7,709,090 | 7,536,135 | 7,775,086 | -3% |
| Equity | 605,224 | 557,950 | 8% | 576,143 | 605,224 | 557,950 | 8% |
| Return on assets (ROA) % | 0.5% | 0.7% | -29% | 0.8% | 0.7% | 1.0% | -32% |
| Return on equity (ROE) % | 6.6% | 10.1% | -34% | 10.7% | 8.2% | 13.4% | -39% |
| Earnings per share (EPS), EUR | 0.89 | 1.26 | -30% | 1.80 | 0.37 | 0.55 | -33% |
| Total capital (TC) ratio % | 19.2% | 15.4% | 25% | 15.6% | 19.2% | 15.4% | 25% |
| Common Equity Tier 1 (CET1) capital ratio % | 18.2% | 14.2% | 28% | 14.4% | 18.2% | 14.2% | 28% |
| Comparable profit before taxes | 39,726 | 58,711 | -32% | 86,656 | 16,123 | 27,575 | -42% |
| Comparable cost/income ratio, % | 52.3% | 34.5% | 51% | 37.8% | 50.1% | 36.8% | 36% |
| Comparable return on equity (ROE) % | 7.1% | 11.4% | -38% | 12.4% | 8.5% | 16.2% | -47% |
January–September 2025
- For the third quarter, profit before taxes was EUR 15.5 (22.8) million and comparable profit before taxes was EUR 16.1 (27.6) million.
- For January–September, profit before taxes was EUR 37.2 (52.0) million and comparable profit before taxes was EUR 39.7 (58.7) million.
- Total capital (TC) ratio was 19.2 (15.6)%.
- As a result of the decline in the loan portfolio and in market interest rates net interest income decreased by 23.2% in the third quarter and in January–September by 19.2% compared to the previous year.
- Mortgage portfolio decreased by 3.7% during the previous 12 months. Corporate loan portfolio decreased by 17.9% during the previous 12 months. The decrease in the loan portfolio is due to the divestment of a few large customers, whose needs have outgrown the Company’s capacity as well as the exit from high-risk customers, and progress in the controlled winding down portfolio.
- Deposit base decreased by 0.7% over the past 12 months. The deposit base declined during the first quarter due to changes in the deposits of individual corporate customers. During the second quarter, the deposit base increased by 2.5% and during the third quarter by 0.8%.
- In the third quarter, fee and commission income and expenses (net) increased by 2.5% totalling EUR 12.5 (12.2) million. Commission income related to lending and saving in funds increased from the comparison period, while commission income related to payment transactions and card business decreased. Fee and commission expenses decreased compared to the comparison period. In January–September, net fee income decreased by 0.8% totalling EUR 37.3 (37.6) million.
- In the third quarter, total operating income decreased by 17.2% and in January–September by 16.1%. In the third quarter, comparable total operating income decreased by 18.1%.
- In the third quarter, total operating expenses decreased by 3.1% compared to the comparison period. In January-September, total operating expenses increased by 19.3%. Personnel expenses increased by 35.0% in the third quarter. In January-September, personnel expenses increased by 33.1%. The number of personnel at the end of the period was 651 (548).
- In the third quarter, other operating expenses decreased by 18.0% and were in total EUR 14.8 (18.1) million and in January–September EUR 54.3 (47.0) million. In the comparison period 2024 in the third quarter, a total of EUR 3.9 million was recorded as costs related to business arrangements and the investigation of non-compliance with the guidelines, which is reflected in a decrease in the cost level during the reporting period.
- For the third quarter, a total of EUR 1.7 million was recorded for the implementation of the action plans related to the Finnish Financial Supervisory Authority’s (FIN-FSA) final reports. The implementation of the action plans will continue until the end of the financial year 2025. EUR 0.5 million of investigation costs related to non-compliance with the guidelines were recorded in the third quarter.
- In the third quarter, comparable total operating expenses grew by 10.7% and were EUR 26.3 (23.8) million.
- In the third quarter the impairment losses on financial assets decreased by 23.8% and were in total EUR -10.1 (-13.3) million. The positive development was hindered by payment difficulties within the SME sector due to the weak economic environment as well as discretionary additional allowances for individual customers. In the third quarter, allowances made for the controlled winding down portfolio increased the amount of impairment losses by EUR 5.1 million.
- For January–September, impairment losses on financial assets were in total EUR -41.5 (-75.8) million. The allowances for the controlled winding down portfolio in January-September increased the amount of impairment losses by EUR 12.7 million.
- In the third quarter, the cost/income ratio was 51.1 (43.4)% and in January–September, 53.9 (37.6)%.
- In the third quarter, comparable cost/income ratio was 50.1 (36.8)% and in January–September, comparable cost/income ratio was 52.3 (34.5)%.
- In the third quarter, comparable return on equity (ROE) was 8.5 (16.2)% and in January–September, 7.1 (11.4)%.
Outlook for 2025 (unchanged - updated on 15 June 2025)
Oma Savings Bank Plc (OmaSp) lowered its earnings guidance for year 2025 as the Company’s cost level is expected to remain high throughout the 2025 financial year due to investments in risk management and quality processes, increased headcount, and efforts to address the findings of the Finnish Financial Supervisory Authority’s (FIN-FSA) inspection. In addition, the update of the ECL model implemented during the first quarter has increased the level of credit loss provisions more than anticipated. Furthermore, fee and commission income is expected to grow more slowly than anticipated in the prevailing economic environment. The Company estimates the Group's comparable profit before taxes is EUR 50-65 million for the financial year 2025.
Business outlook and earnings guidance for the financial year 2025 (updated on 15 June 2025):
The outlook for the Company's business for the financial year 2025 is affected by the decline in market interest rates and the continued high level of costs due to IT investments and system improvements required by risk management and quality processes. In addition, the Company continues to invest in customer experience on different channels. The uncertainty of the operating environment and economic situation affects the development of balance sheet items and comparable profit for the financial year 2025.
Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2025. 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.
We estimate the Group’s comparable profit before taxes to be EUR 50–65 million for the financial year 2025, (comparable profit before taxes was EUR 86.7 million in the financial year 2024).
Oma Savings Bank Plc
Additional information:
Karri Alameri, CEO, tel. +358 45 656 5250, karri.alameri@omasp.fi
Sarianna Liiri, CFO, tel. +358 40 835 6712, sarianna.liiri@omasp.fi
Pirjetta Soikkeli, CCO, tel. +358 40 750 0093, pirjetta.soikkeli@omasp.fi
DISTRIBUTION:
Nasdaq Helsinki Ltd
Main media
www.omasp.fi
OmaSp is a solvent and profitable Finnish bank. About 600 professionals provide nationwide services through OmaSp’s 48 branches and digital service channels to over 200,000 private and corporate customers. OmaSp focuses primarily on retail banking operations, offering a comprehensive range of banking services both through its own balance sheet as well 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’s core idea is to provide personal service and to be local and close to its customers, both on digital and traditional channels. OmaSp strives to offer premium level customer experience through personal service and easy accessibility. The development of operations and services is also customer oriented. The personnel is committed and OmaSp seeks to support their career development with versatile tasks and continuous development. A significant part of the personnel also owns shares in OmaSp.
Attachment
OmaSp Interim Report January-September 2025
