Oma Savings Bank Plc · OMXHEX:OMASP
Oma Savings Bank — Debt Investor Presentation (March 2019)
39 slides from Oma Savings Bank's debt investor presentation, March 2019
Slide 1: Oma Savings Bank Credit Investor Presentation March 2019
Oma Savings Bank Credit Investor Presentation March 2019 0
Slide 2: Executive summary
Executive summary • Oma Savings Bank (OmaSp) is the largest savings bank in Finland according to the balance sheet. Total assets stood at in excess of EUR 2.9bn at the end of 2018. • The bank has over 136,000 active customers consisting mostly of private customers (59% of lending), corporate custome
Slide 3: Content overview
Content overview Introduction to Oma Savings Bank Key Financials Cover Pool Operating Environment Planned Transaction & Contact Details 2
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Slide 5: History and balance sheet development
History and balance sheet development Before year 2009 2013-2016 2017- • Savings Bank operations commenced 1875 • Expansion into a nationwide bank in Finland • 2017 Public credit rating from S&P through mergers and acquisitions • 2017 Licence granted for Mortgage credit bank operations 2009-2012 • O
Slide 6: OmaSp today – profitable growth
OmaSp today – profitable growth OmaSp key highlights Strong financial profile Equity 2018, EUR million 290.3 • More than 140 years of history • Provides comprehensive banking services across 40 Balance sheet total, branches and through digital service channels 15% average yearly growth 2015-2018 • A
Slide 7: Operating area & branch network
Operating area & branch network 1 • The bank’s operations are Largest Finnish cities Population Presence concentrated to the regions around Capital region 2 1,171,744 larger cities in Western and Eastern Tampere 235,487 Finland. Oulu 203,623 • Long-term local presence and Turku 191,664 customer know
Slide 8: Strategy
Strategy The strategy of Oma Savings Bank is based on the following pillars: 1. Cost efficiency – The main driver of a profitable and healthy bank – guides the bank’s business 2. Proactive customer relationships and sales – Differentiation from the competitors – Excellent customer experiences and su
Slide 9: Financial goals, dividend policy and guidance for 2019
Financial goals, dividend policy and guidance for 2019 Board of Directors approved the following financial goals in September 2018: Growth • 10–15% annual growth in total operating income under the current market conditions Profitability • Cost/income ratio less than 55% Return on equity • Long-term
Slide 10: S&P’s current view on OmaSP
S&P’s current view on OmaSP Rating criteria and impacts Quoted from S&P: Strengths and weaknesses • “We believe that the risk of a house price Anchor a- correction is becoming more remote as economic (Finnish banks) prospects and consumer confidence improve” Concentrated business Business Position W
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Slide 12: Key figures
Key figures Total operating income Equity / Total assets Comparable profit before taxes 76.0 EUR mill. 10.0% 26.2 EUR mill. Accounting period 1-12/2018 Accounting period 1-12/2018 Accounting period 1-12/2018 Cost-income ratio Balance sheet total Number of employees 62.2% 2,915 EUR mill. 288 Accounti
Slide 13: Developments in overall operating income and profitability
Developments in overall operating income and profitability Total operating income, EUR mill. Profit before taxes, EUR mill. Growth 10.8% 22.8% 2.5% Cost- 59.5% 58.9% 55.5% 62.2% income ratio 76.0 74.1 1.9 0.6 2.7 60.3 10.8 24.2 30.4 54.4 3.7 2.4 25.0 3.0 4.4 21.2 17.7 20.6 10.8 0.6 15.3 18.4 2.4 4.4
Slide 14: High profitability and cost efficiency
High profitability and cost efficiency Cost / Income ratio Operating profit / Total assets 80% 1.2% 70.9% 70% 62.2% 1.0% 60% 0.9% 0.8% 50% 0.6% 40% 0.6% 30% 0.4% 20% 0.2% 10% 0% 0.0% Cost / Income ratio Operating profit / Total assets OmaSp 2016 OmaSp 2017 OmaSp 2016 OmaSp 2017 OmaSP 2018 Avg. For p
Slide 15: Strong capital position
Strong capital position Equity / Total assets OmaSp capital ratios 12% 20% 19.3% 18.4% 10.0% 18% 10% 16% 14% 8% 6.3% 12% 6% 10% 8% 4% 6% 4% 2% 2% 0% 0% Total equity / Total assets CET 1 ratio Total capital ratio OmaSp 2016 OmaSp 2017 OmaSp 2016 OmaSp 2017 OmaSP 2018 OmaSP 2018 Avg. for peer group 20
Slide 16: Oma Savings Bank’s funding base
Oma Savings Bank’s funding base Funding highlights Funding structure (31.12.2018) 5.0% 1.0% • The bank’s deposit base is stable and will remain as the main source of funding. 13.5% • Loans-to-Deposits ratio was 138% as of 31.12.2018 • Senior bonds, covered bonds and CDs complement the funding struct
Slide 17: Customer and lending base end of 2018
Customer and lending base end of 2018 Total loan portfolio by customer groups Non-Private customer loan portfolio distribution Private customer Real estate Company 20.8% 16% Agriculture and forestry 5% 38% Trade Housing 5% cooperative 59.2% Construction 9.6% 6% Agriculture client Industry 8% 9.1% 22
Slide 18: Investment portfolio
Investment portfolio • The bank’s investment portfolio amounts to around EUR 272 million • The portfolio consists of liquid assets and other investments • Allocation of the investment portfolio as per 31.12.2018 • Fixed income 87% • Equity 10% • Real estate investments 3% • The bank’s LCR-ratio was
Slide 19: Cover Pool
Cover Pool
Slide 20: OmaSp cover pool characteristics
OmaSp cover pool characteristics Key characteristics of the cover pool March 2019 Size of the pool EUR 875 million (nominal) Collateral type 100% Finnish residential mortgages • Finnish FSA has granted OmaSp a 15,862 license to act as a mortgage credit Number of loans bank which allows it to issue c
Slide 21: OmaSp mortgage loan underwriting criteria
OmaSp mortgage loan underwriting criteria All mortgage applicants are identified, including their legal capacity. Identification of customers The financial position of the mortgage applicants is verified including information of any internal and external internal payment defaults. The income status
Slide 22: Geographic breakdown of cover pool
Geographic breakdown of cover pool Volume EUR Share in the Region Major city million pool Southern Seinäjoki 264 30.2 % Ostrobothnia South Karelia Lappeenranta 129 14.7 % Pirkanmaa Tampere 127 14.5 % Kymenlaakso Kouvola 80 9.1 % Uusimaa Helsinki 44 5% Tavastia Proper Hämeenlinna 42 4.8 % Southern Sa
Slide 23: Details of the cover pool
Details of the cover pool Loan maturity distribution Loan seasoning 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% 0-1Y 1-2Y 2-3Y 3-4Y 4-5Y 5 - 10 Y 10+ Y 0-12 M 12-24 M 24-36 M 36-60 M > 60 M Loan size buckets (EURt) LTV distribution 40% 50% 30% 40% 30% 20% 20% 10% 10% 0% 0% Note: prelimin
Slide 24: Operating Environment
Operating Environment
Slide 25: House prices in Finland and other Nordic countries
House prices in Finland and other Nordic countries Nominal house prices, 2007 = 100 House prices deflated by CPI (real price index), 2007 = 100 180 180 160 160 140 140 120 120 100 100 80 80 60 60 40 40 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 200
Slide 26: Local housing markets in Finland
Local housing markets in Finland Nominal house prices, 2000 = 100 220 Index, 2000 = 100 • Despite low economic growth over 200 the past years, the housing market in Finland has remained active and supported especially by low interest 180 rate environment. Recent economic growth has allowed house pri
Slide 27: Finnish economy growing at a more healthy pace with unemployment declining
Finnish economy growing at a more healthy pace with unemployment declining GDP growth Unemployment rate (6-month moving average) 8% 14.0% 5% 6% 13.0% 4% 3% 12.0% 2% 1% 11.0% % -1% 10.0% -2% -4% 9.0% -3% -6% 8.0% -5% -8% 7.0% -10% -7% 6.0% GDP growth QoQ (Rhs) GDP growth YoY (Lhs) • The GDP growth in
Slide 28: Loan costs and indebtedness are low in the Finnish housing market
Loan costs and indebtnedness are low in the Finnish housing market Interest rates on new residential loans, annual average Total outstanding residential loans to GDP ratio 3.0% 100.0% Interest rates in Finland in new residential loans are 90.0% Residential loan to GDP lowest in Nordic countries the
Slide 29: Households holding low leverage in relation to disposable income
Households holding low leverage in relation to disposable income Household debt as % of net disposable income Finnish home prices relative to income, 2000=100 350% 110 Index 300% 108 106 250% 104 200% 102 100 150% 98 100% 96 94 50% 92 0% 90 2014 2015 2016 2017 Home prices relative to disposable inco
Slide 30: Planned Transaction & Contact Details
Planned Transaction & Contact Details
Slide 31: Indicative terms of the planned transaction
Indicative terms of the planned transaction Issuer Oma Säästöpankki Oyj (Bloomberg: OMASST) Issue Type Finnish Covered Bond Collateral Type Finnish residential mortgages Expected Issue Rating AAA (S&P) Maturity 5yr or 7yr (soft bullet) Size Sub-benchmark (LCR 2A compliant) Coupon Fixed rate, annual
Slide 32: Contact details
Contact details Pasi Sydänlammi Tony Tötterström CEO, Oma Savings Bank Plc Treasurer, Oma Savings Bank Plc Tel. +358 45 657 5506 Tel. +358 50 530 6623 pasi.sydanlammi@omasp.fi tony.totterstrom@omasp.fi http://www.omasp.fi/investor-relations 31
Slide 33: Appendix
Appendix
Slide 34: Oma Savings Bank Group’s key financials
Oma Savings Bank Group’s key financials The Group's key figures (1000 euros) 1-12/2018 1-12/2017 2018 Q4 2017 Q4 3) Operating income/loss 88,092 84,921 22,287 26,949 Net interest income 49,351 39,317 13,426 10,574 % of operating income/loss 56.0% 46.3% 60.2% 39.2% Total operating income 75,958 74,09
Slide 35: Income statement
Income statement In EUR thousands 2018 2017 Interest income 55,949 46,579 Interest expenses -6,599 -7,262 Net interest income 49,351 39,317 Fee and commission income and expenses, net 24,158 21,245 Net income on financial assets and financial liabilities 556 10,780 Other operating income 1,893 2,748
Slide 36: Balance sheet
Balance sheet ASSETS (in EUR thousand) 31.12.2018 LIABILITIES AND EQUITY (in EUR thousand) 31.12.2018 Cash & cash equivalents 18,521 Liabilities to credit institutions 89,793 Liabilities to the public and general government 1,757,911 Financial assets at fair value through profit impact 0 Financial d
Slide 37: Ownership structure (as of February 2019)
Ownership structure (as of 28 February 2019) Ownership by type Shareholder Shares % Non-profit institutions 4% 3% 0% Etelä-Karjalan Säästöpankkisäätiö 10,578,759 35.7% 5% Financial and insurance 8% corporations Parkanon Säästöpankkisäätiö 3,400,000 11.5% Public sector Töysän Säästöpankkisäätiö 3,000
Slide 38: Disclaimer
Disclaimer IMPORTANT: This presentation contains information that has been specifically prepared by Oma Savings Bank Plc (the “Issuer”) solely for use at its presentation to prospective qualified investors (each referred to hereafter as a “Recipient”) held in connection with the proposed offering of
Slide 39: Thank you
THANK YOU
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