Oma Savings Bank Plc's Interim Report 1.1.-30.9.2019: Continued solid growth in business volumes - record-high profit
OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 7 NOVEMBER 2019 AT 8.30 A.M. EET, INTERIM REPORT Q3
Oma Savings Bank Plc’s Interim Report 1.1.-30.9.2019: Continued solid growth in business volumes – record-high profit
This release is a summary of Oma Savings Bank’s (OmaSp) January-September 2019 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 growth of our main sources of income, net interest income and fee and commission income, has continued to be strong. In the third quarter, the comparable cost-to-income ratio improved to an excellent 47.7% level. Comparable profit before taxes grew 33% to EUR 9.1 million and profit before taxes grew 13% to EUR 8.3 million. The home mortgage, corporate loan and deposit portfolios continued to grow rapidly and the average loan margin remained practically unchanged.
I am delighted with how our investments in the customer experience and digital services have resulted in increasing customer flows and a brisk growth in our basic business profits. A good example is Jyväskylä where we launched new bank operations two years ago. The business became profitable within the first year and now was the perfect time to increase the personnel and invest in larger and more visible premises on the ground floor. Additionally, we launched the OmaBotti chatbot, which serves our customers on our bank's website around the clock. We also made available to our customers a modern mobile payment service, Google Pay.
We are constantly developing and streamlining our operations. It is important to make bold decisions when times are good, to ensure that we do well in the future. I am also confident that our business concept will work in a changing operating environment and that our focus on high-quality personal service and digital services will further boost our market share. Our growth will continue to be brisk together with our customers and our competent and enterprising personnel – also in the future.
January-September 2019
- Net interest income grew in in July–September by 16.0% and January–September by 18.3% and compared to the same period last year.
- Our home mortgage portfolio grew strongly: by 4.6% during July–September and 15.2% in January–September. At the same time, the corporate loan portfolio increased 3.5% and 14.3% respectively.
- Deposit stocks grew rapidly, 6.8% during Q3. Growth for the whole year amounted to 13.2%.
- The fee and commission income item increased in July–September by 2.8% compared to the same period last year, but fell in January–September by 1.5%. Comparability is impacted by the clarification of the fee and commission income over-time recognition principles during 2019, which had an impact of EUR -1.3 million on fee and commission income. Taking this into account, the fee and commission income item is growing strongly.
- Impairment losses on financial assets were EUR 2.4 (1.7) million in July–September. The corresponding item in January–September was EUR 5.9 (3.5) million.
- The Q3 profit before taxes grew 12.9% compared to the comparable period, totalling EUR 8.3 (7.4) million. The January–September profit before taxes was EUR 27.0 (20.5) million.
- Comparable profit before taxes for July–September grew 33.2% compared to the comparable period, totalling EUR 9.1 (6.9) million. The comparable profit before taxes for the entire year grew 13.2%, to EUR 22.2 (19.6) million.
| The Group's key figures (1,000 euros) | 1-9/2019 | 1-9/2018 | Δ% | 2019 Q3 | 2018 Q3 | Δ% |
| Net interest income | 42,503 | 35,925 | 18% | 14,868 | 12,820 | 16% |
| Total operating income | 69,636 | 57,806 | 20% | 21,181 | 19,806 | 7% |
| Impairment losses on financial assets, net | -5,923 | -3,549 | 67% | -2,371 | -1,737 | 36% |
| Profit before taxes | 27,038 | 20,460 | 32% | 8,342 | 7,391 | 13% |
| Cost/income ratio, % | 52.7% | 58.5% | -10% | 49,4 % | 53,9 % | -8% |
| Balance sheet total | 3,370,459 | 2,841,945 | 19% | 3,370,459 | 2,841,945 | 19% |
| Equity | 318,145 | 254,633 | 25% | 318,145 | 254,633 | 25% |
| Return on assets (ROA) % | 1.0% | 0.8% | 22% | 0.8% | 0.8% | -5% |
| Return on equity (ROE) % | 10.0% | 8.9% | 13% | 8.5% | 9.5% | -10% |
| Earnings per share (EPS), euro | 0.78 | 0.66 | 18% | 0.23 | 0.24 | -4% |
| Common Equity Tier 1 (CET1) capital ratio % | 17.4% | 16.6% | 5% | 17.4% | 16.6% | 5% |
| Comparable profit before taxes | 22,209 | 19,627 | 13% | 9,123 | 6,850 | 33% |
| Comparable cost-to-income ratio, % | 56.6% | 59.3% | -5% | 47.7% | 55.4% | -14% |
| Comparable return on equity (ROE) % | 7.8% | 8.6% | -9% | 9.3 % | 8.8% | 6% |
The calculation principles of the key figures and alternative key figures are presented in note G15 of the financial statements.
Items linked to the comparability of the key figures and the actual calculation are presented in the income statement.
Outlook for the 2019 accounting period (unchanged):
The company’s business volumes have grown strongly throughout the first three quarters and are predicted to maintain their solid growth during the final quarter. 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 the opening of new units.
Provided that profitable growth continues, thecompany estimates that the Group’s comparable profit before taxes for 2019 will grow compared to the previous accounting period. At the same time, the profit before taxes for 2019 is estimated to grow compared to the previous accounting period.
Oma Savings Bank Plc
Additional information:
Pasi Sydänlammi, CEO, puh +358 45 657 5506, pasi.sydanlammi@omasp.fi
Sarianna Liiri, CFO, puh. +358 40 835 6712, sarianna.liiri@omasp.fi
Additional information and interview requests for media:
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 300 professionals provide nationwide services through OmaSp’s 38 branch offices and digital service channels to over 136,000 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.
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