Inside information, negative profit warning: Oma Savings Bank Plc publishes preliminary information on Q2/2024 result and updates its guidance

OMA SAVINGS BANK PLC STOCK EXCHANGE RELEASE, 24 JULY 2024 AT 20:25 P.M EET, INSIDE INFORMATION

Inside information, negative profit warning: Oma Savings Bank Plc publishes preliminary information on Q2/2024 result and updates its guidance

Oma Savings Bank Plc (OmaSp or the Company) has today announced the credit stock study carried out by external experts and its results. The results confirm that the problems are limited to previously identified non-compliance with the guidelines. The Company will recognise a significant additional allowance based on management's judgement for the second quarter. OmaSp publishes preliminary data on the preliminary result for the second quarter of 2024 and updates its guidance at the same time in light of the latest data.

Based on unaudited and preliminary data, OmaSp's second quarter net interest income will increase by seven percent and fee and commission income and expenses by one percent compared to the comparison period. Total operating expenses increased by eight percent compared to the comparison period. Impairment losses on financial assets total approximately EUR 39.4 million in the second quarter and approximately EUR 62.5 million for the whole early part of the year. Comparable profit before taxes and without additional allowances based on management’s judgement is approximately EUR 80.6 million for the whole early part of the year. The comparable profit before taxes is approximately EUR 5.5 million for the second quarter and EUR 31.1 million for the whole early part of the year.

New outlook and guidance (updated 24 July 2024)
The profitable development of the Company's business continues, supported by the investments made in the customer experience and service network. The Company will continue to invest extensively in the development of risk management and quality processes in the second half of 2024. The SME customer business to be acquired from Handelsbanken will improve the Company's profitability from the second half of 2024 onwards.

Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2024. 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 80–100 million for the financial year 2024 (the comparable profit before taxes was EUR 143.6 million in the financial year 2023).

Previous outlook and guidance (published 16 April 2024):
The Company's profitable growth will continue driven by investments in customer experience and service network. The SME customer business to be acquired from Handelsbanken will improve the Company’s profitability from the second half of 2024 onwards.

Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2024. 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 120–140 million for the financial year 2024 (the comparable profit before taxes was EUR 143.6 million in the financial year 2023).

OmaSp will publish its second quarter result on 29 July 2024 at approximately 8:30 am and will have a webcast in Finnish starting at 10:00 am. The webcast link can be accessed here. Due to the silent period, we do not comment on the preliminary results before the publication of the Interim Report.

Oma Savings Bank Plc

Additional information:
Sarianna Liiri, CEO, 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 solvent and profitable Finnish bank. About 500 professionals provide nationwide services through OmaSp’s 45 branch offices and digital service channels to over 200,000 private and corporate 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.