OMA SÄÄSTÖPANKKI OYJ Oma Savings Bank Plc’s Financial Statements Release 1 January –
This release is a summary of Oma Savings Bank’s (OmaSp) January-
CEO Pasi Sydänlammi:Profitable growth continues - comparable profit before taxes increased by 43% for the 2022 financial year
“OmaSp's business development has continued to be excellent. OmaSp's unique combination of growth and profitability can be seen in the strong accumulation of equity, which enables increasing profit distribution to the owners, as well as investments to enable success also in the future.
The general rise in interest rates, in addition to volume growth, has further accelerated the development of net interest income. Net interest income grew by as much as 40% in the last quarter of the year and by 31% for the whole year. Throughout the year, fee and commission income grew strongly, and the growth was 17% compared to the previous year. Development of fee and commission income slowed towards the end of the year as credit demand moderated due to general economic uncertainty. Balance sheet total increased by almost
The fourth quarter's comparable return on equity (ROE%) rose to a record level and was 18.4%. For the whole year, the comparable return on equity (ROE%) rose to 15.8%.
For the full year, profit before taxes was
OmaSp is well prepared for the uncertainty in the operating environment
OmaSp has continued to prepare for the uncertainty of the operating environment even during the fourth quarter. The bank's liquidity and capital buffers have been strengthened. The direct effects of the Russian invasion war on OmaSp's operations can be seen mainly in the functioning of the refinancing market and in the general economic environment in the form of an acceleration of inflation and a rise in interest rates. The quality of the loan portfolio has remained at a good level and the accumulation of credit losses is low.
Prospects for growth and increasing dividend
OmaSp's constantly strengthening ability to generate profit enables a growing dividend for the owners for the sixth year in a row. The dividend proposal for the spring general meeting is
OmaSp starts from excellent starting points the year 2023. The foundation for profitable growth is created by excellent customer and personnel satisfaction. Preparations for the application of the IRB method in capital adequacy calculation continue as planned, and it will enable capital utilization to be enhanced in the coming years. The largest business arrangement in the Company's history with
In line with our earnings guidance, we expect OmaSp's profitable growth to remain strong and for 2023, the goal is to achieve
Warm thanks to all customers, personnel, owners and partners for 2022!”
January-December 2022
• Net interest income grew strongly by 31.0% in January-December compared to the same period last year. In addition to volume growth, net interest income was increased by increased market interest rates, the effect of which is reflected in interest margin from the third quarter onwards. In the fourth quarter, net interest income increased by 40.1%.
• Home mortgage portfolio increased by a total of 7.8% over the previous 12 months. Corporate loan portfolio increased by 23.9% over the previous 12 months.
• Deposit stocks grew by 7.5% over the previous 12 months.
• Fee and commission income and expenses (net) item increased due to volume growth by 17.0% in January-December. In the fourth quarter, fee and commission income and expenses (net) item decreased by 9.4% due to lower lending fee income as lending slowed down in the last quarter of the year.
• Impairment losses on financial assets decreased compared to the previous year and the impairment losses totalled
• In January-December, profit before taxes decreased due to a significant positive single item recorded in the comparative period 2021 (EUR 22.3 million). Profit before taxes totalled
• For January-December, comparable profit before taxes increased significantly compared with the comparative period and was
• For the last quarter, profit before taxes increased 7.3% and was
• For October-December, comparable profit before taxes increased significantly compared to the previous year and was
• For the whole year, cost/income ratio weakened due to one-off items in the comparative period and was 50.7% (41.9%). Comparable cost/income ratio was at the same level as last year 48.0% (48.0%).
• For the last quarter, cost/income ratio improved and was 47.6% (49.9%). Also comparable cost/income ratio improved and was 44.1% (47.9%).
• Comparable return on equity (ROE) improved and was 15.8% (11.2%) for the whole year. For the last quarter, comparable return on equity (ROE) was 18.4% (11.6)%.
| The Group's key figures ( | 1-12/2022 | 1-12/2021 | Δ% | 2022 Q4 | 2021 Q4 | Δ% |
| Net interest income | 104,930 | 80,130 | 31% | 30,634 | 21,873 | 40% |
| Fee and commission income and expenses, net | 39,396 | 33,686 | 17% | 8,242 | 9,094 | -9% |
| Total operating expenses | -73,062 | -65,294 | 12% | -18,709 | -19,518 | -4% |
| Impairment losses on financial assets, net | -1,747 | -7,294 | -76% | -1,315 | -1,632 | -19% |
| Profit before taxes | 69,226 | 83,271 | -17% | 19,285 | 17,967 | 7% |
| Cost/income ratio, % | 50.7% | 41.9% | 21% | 47.6% | 49.9% | -5% |
| Balance sheet total | 5,941,766 | 5,372,633 | 11% | 5,941,766 | 5,372,633 | 11% |
| Equity | 364,961 | 401,294 | -9% | 364,961 | 401,294 | -9% |
| Return on assets (ROA) % | 1.0% | 1.4% | -30% | 1.0% | 1.1% | -6% |
| Return on equity (ROE) % | 14.5% | 17.6% | -18% | 17.1% | 14.5% | 18% |
| Earnings per share (EPS), EUR | 1.85 | 2.22 | -17% | 0.51 | 0.48 | 6% |
| Total capital (TC) ratio % | 14.9% | 15.6% | -5% | 14.9% | 15.6% | -5% |
| Common Equity Tier 1 (CET1) capital ratio % | 13.3% | 15.5% | -14% | 13.3% | 15.5% | -14% |
| Comparable profit before taxes | 75,850 | 53,142 | 43% | 20,758 | 14,448 | 44% |
| Comparable cost/income ratio, % | 48.0% | 48.0% | 0% | 44.1% | 47.9% | -8% |
| Comparable return on equity (ROE) % | 15.8% | 11.2% | 42% | 18.4% | 11.6% | 58% |
Outlook for the financial year 2023:
The Company estimates that profitable growth will continue to be strong. The Group's 2023 comparable profit before taxes will increase significantly compared to the previous financial year and will exceed
Board of Directors’ proposal for the distribution of profit to AGM
The Board of Directors proposes that, based on the Financial Statements to be approved for 2022, a dividend of
General Meeting
The Annual General Meeting is scheduled to be held on
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
Minna Sillanpää, CCO, tel. +358 50 66592, minna.sillanpaa@omasp.fi
DISTRIBUTION
Major media
www.omasp.fi
OmaSp is a growing Finnish bank and the largest savings bank in
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 con-tinuous development. A substantial part of the personnel also own shares in OmaSp.
Attachment
- OmaSp Financial Statements Release 2022
© OMX, source
