Oma Savings Bank Plc · OMXHEX:OMASP
Oma Savings Bank — Debt Investor Presentation (April 2023)
38 slides from Oma Savings Bank's debt investor presentation, April 2023
Slide 1: Oma Savings Bank Credit Investor Presentation
Oma Savings Bank Credit Investor Presentation April 2023 1
Slide 2: 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 3: Executive Summary
Executive Summary Oma Savings Bank Finnish economy & housing market • Oma Savings Bank (OmaSp) is the largest savings bank in Finland according to the • The war in Ukraine has added high inflation size of the balance sheet with total assets of and high energy prices to the list of major EUR 5.9bn in
Slide 4: Key Investment Highlights
Key Investment Highlights Profitable Business Model High Cost Efficiency • Oma Savings Bank has over the last years reported higher returns • Oma Savings Bank has a low and stable comparable cost- than the peer group despite a high growth rate income ratio at 48% in 2022, considerably below peers •
Slide 5: Content overview
Content overview 1. Oma Savings Bank 5-10 2. Key Financials 11-17 3. Cover Pool 18-23 4. Operating Environment 24-26 5. Planned Transaction & Contact Details 27-29 6. Appendix 30-39 5
Slide 6: Oma Savings Bank Overview
Oma Savings Bank Overview Combination of quality growth and profitability* Strong financial profile & rating Equity 12/2022, EUR million 365 Balance sheet total 12/2022, EUR billion 5.9 Comparable profit before taxes, EUR million 75.9 Comparable cost-income ratio 1-12/2022 48% Comparable ROE 1-12/20
Slide 7: Profitable growth – From a local savings bank to a nationwide bank
Profitable growth – From a local savings bank to a nationwide bank Liedon Säästöpankki merger Expansion in Espoo and Tampere ~ 7.500 Balance sheet after Liedon Savings Bank acquisition, EUR billion Eurajoen S-Pankki’s Säästöpankki Balance sheet total, EUR billion SME, agriculture and forestry busine
Slide 8: Liedon Savings Bank acquisition successfully completed
Liedon Savings Bank acquisition successfully completed OmaMobiili mobile application OmaSp web meetings • The acquisition of Liedon Savings Bank business has been successfully completed on the 1st of March OmaVahvistus mobile application • The acquisition will have a significant positive impact on t
Slide 9: Financial goals, dividend policy and guidance for 2023
Financial goals, dividend policy and guidance for 2023 The Board of Directors approved the following financial goals for 3-5 years: 4,3/51) 10–15% annual growth in total Long-term return on equity (ROE) of Return on Growth operating income under the current over 10% equity market conditions Capital
Slide 10: Content overview
Content overview 1. Oma Savings Bank 5-10 2. Key Financials 11-17 3. Cover Pool 18-23 4. Operating Environment 24-26 5. Planned Transaction & Contact Details 27-29 6. Appendix 30-39 10
Slide 11: Developments in overall operating income and profitability
Developments in overall operating income and profitability Total operating income, EUR million Comparable profit before taxes, EUR million Comparable Growth 21.8% 41.0% -7.8% cost-income 56.7% 51.2% 48.0% 48.0% 20.0% ratio 156.6 7.5 144.4 30.0 83.3 69.2 5.4 -6.6 83.3 - 75.9 111.1 30.1 7.5 39.4 92.6
Slide 12: Customer and lending base as per Q4/2022
Customer and lending base as per Q4/2022 Total loan portfolio by customer groups Non-Private customer loan portfolio distribution 44% Real estate 22% 24% Agriculture, Forestry and Fishery Corporates Construction Housing cooperative 4% 10% Whole- and retail sales Agriculture Industry Other 8% Retail
Slide 13: Asset Quality has remained at a strong level
Asset Quality has remained at a strong level Impairment losses on financial assets Asset quality at a strong level • Impairment losses on financial assets (net) decreased compared to the comparison year and were EUR 1.7 million (7.3m) • At the beginning of the year, OmaSp switched to using new, more
Slide 14: Oma Savings Bank’s capital position
Oma Savings Bank’s capital position 25.0 % • Capital position is steady. During H1 2022 own funds 19.3 % decreased due to the changes in fair value reserve. 20.0 % 18.4 % 17.3 % OmaSp started liquidity portfolio hedging in Q4 2022 16.8 % 16.2 % 15.6 % and the implemented hedging measures balanced 15
Slide 15: Oma Savings Bank’s funding base
Oma Savings Bank’s funding base Funding highlights (31 December 2022) Funding structure & CB/TLTRO maturity profile • The bank’s deposit base is stable and will remain as the main source of 2% funding (57%). The deposit base was EUR 3.12 billion as of 31.12.2022 3% 3% 7% Deposits • Covered bonds, Se
Slide 16: Investment portfolio and liquidity management
Investment portfolio and liquidity management Liquidity and portfolio (31 December 2022) Liquidity and fixed income portfolio structure • The bank’s investment portfolio amounted to EUR 552.6 million LCR NSFR • Majority of investment portfolio in fixed income assets which 180% have been partially he
Slide 17: Content overview
Content overview 1. Oma Savings Bank 5-10 2. Key Financials 11-17 3. Cover Pool 18-23 4. Operating Environment 24-26 5. Planned Transaction & Contact Details 27-29 6. Appendix 30-39 17
Slide 18: New Act on Mortgage Credit Banks and Covered Bonds (151/2022)
New Act on Mortgage Credit Banks and Covered Bonds (151/2022) New Covered Bond Act and OmaSp’s Consent Solicitation process • The New Covered Bond Act came into force on 8 July 2022 to harmonize the European Covered Bond Market • OmaSp was granted a licence to issue covered bonds under the New Act i
Slide 19: OmaSp’s cover pool characteristics
OmaSp’s cover pool characteristics Key characteristics of the cover pool as per 28 February 2023 Size of the pool EUR 2 470.04 million (nominal) Collateral type 100% Finnish residential mortgages • S&P has assigned AAA ratings to the Covered Number of loans 33,193 Bonds of Oma Savings Bank. The outl
Slide 20: The cover pool structure and outstanding covered bonds
The cover pool structure and outstanding covered bonds Collateral type Customer scoring • Regular and up to date credit scoring for customer credit class • The weakest classes C and D are not cover 11 % pool eligible Single-family housing Flats 33 % 56 % Customer Loan • No arrears more than 30 days
Slide 21: Details of the cover pool
Details of the cover pool Loan Maturity Distribution Loan seasoning 61.74% 26.63% 21.66% 20.67% 17.37% 13.67% 5.11% 5.24% 4.86% 4.92% 4.79% 4.42% 4.52% 4.41% 0-12 M 12-24 M 24-36 M 36-60 M > 60 M 2023 2024 2025 2026 2027 2028 2029 2030 2031- Loan size buckets €k LTV Distribution 18.96 20.17 20.53 16
Slide 22: The geographic breakdown of the cover pool
The geographic breakdown of the cover pool Volume EUR Share in the Region Major city million pool Southern Seinäjoki 521 21.09 % • Finland’s three (3) biggest growth areas Ostrobothnia forecasted by the end of 2040*: Pirkanmaa Tampere 362 14.66 % • Helsinki region • Tampere region Uusimaa Helsinki 3
Slide 23: Content overview
Content overview 1. Oma Savings Bank 5-10 2. Key Financials 11-17 3. Cover Pool 18-23 4. Operating Environment 24-26 5. Planned Transaction & Contact Details 27-29 6. Appendix 30-39 23
Slide 24: The Finnish economy to recover in 2024, government indebtedness relatively low
The Finnish economy to recover in 2024, government indebtedness relatively low Macroeconomic outlook Government debt to GDP as per Q3 2022 2019 2020 2021 2022F 2023F 2024F 120% Real GDP growth (%) 1.1 -2.2 3.0 1.9 -0.5 1.1 100% Euro area average 93.0% 80% CPI (YoY%) 1.1 0.4 2.1 7.2 5.0 1.6 60% Unemp
Slide 25: Finnish household indebtedness relatively low in a stable housing market
Finnish household indebtedness relatively low in a stable housing market Household debt as % of net disposable income House price index, 2015 = 100 300 160 Household debt as % of net The housing market in disposable income – Finland Finland much more stable lowest in Northern Europe vs. the other No
Slide 26: Content overview
Content overview 1. Oma Savings bank 5-10 2. Key Financials 11-17 3. Cover Pool 18-23 4. Operating Environment 24-26 5. Planned Transaction & Contact Details 27-29 6. Appendix 30-39 26
Slide 27: The indicative terms of the planned transaction
The indicative terms of the planned transaction Issuer Oma Säästöpankki Oyj (Bloomberg: OMASST) European Covered Bond Premium, backed by 100% prime Finnish residential mortgages, Issue Type expected ECB repo & CBPP3 eligibility, UCITS/CRR and LCR 1b compliant Expected Issue Rating AAA (S&P) Maturity
Slide 28: Contact details
Contact details Pasi Sydänlammi Sarianna Liiri Joonas Nurmi CEO, CFO, Treasurer, Oma Savings Bank Plc Oma Savings Bank Plc Oma Savings Bank Plc Tel. +358 45 657 5506 Tel. +358 40 8356712 Tel. +358 50 3616360 pasi.sydanlammi@omasp.fi sarianna.liiri@omasp.fi joonas.nurmi@omasp.fi http://www.omasp.fi/i
Slide 29: Content overview
Content overview 1. Oma Savings Bank 5-10 2. Key Financials 11-17 3. Cover Pool 18-23 4. Operating Environment 24-26 5. Planned Transaction & Contact Details 27-29 6. Appendix 30-39 29
Slide 30: 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 payment defaults. The income status of mortg
Slide 31: Sustainability is one of the basic pillars of our strategy
Sustainability is one of the basic pillars of our strategy Sustainability is at the heart of our business and an important part of our future operations We aim at the highest customer satisfaction rating in the banking sector We have defined four key sustainability themes for the company We care abo
Slide 32: Key figures
Key figures Total operating income Equity / Total assets Profit before taxes 144.4 EUR mill. 6.1% 69.2 EUR mill. Accounting period 1-12/2022 Accounting period 1-12/2022 Accounting period 1-12/2022 Comparable Cost-income ratio Balance sheet total Number of employees 48 % 5 942 EUR mill. 352 Accountin
Slide 33: Strategy
Strategy The strategy of Oma Savings Bank is based on the following pillars: • 1. Cost • The main driver of a profitable and healthy bank – guides the bank’s business efficiency • Differentiation from the competitors • 2. Proactive • Excellent customer experiences and superior local knowledge are ou
Slide 34: Oma Savings Bank Group’s key financials
Oma Savings Bank Group’s key financials Source: OmaSp. Non-audited figures for period ending 31 December 2022 1) The calculation principles of the key figures are presented in note 17 of the Financial Statements Release. 34 Comparable profit is presented in the income statement.
Slide 35: Source: OmaSp. Non-audited figures for period ending 31 December 2022
Source: OmaSp. Non-audited figures for period ending 31 December 2022 35
Slide 36: Balance sheet
Balance sheet Source: OmaSp. Non-audited figures for period ending 31 December 2022 36
Slide 37: Ownership structure (as of 31 March 2023)
Ownership structure (as of 31 March 2023) Ownership by type Shareholder Shares % 0% 3% Public sector Etelä-Karjalan Säästöpankkisäätiö 8,989,084 27.01% 19% Financial and insurance Parkanon Säästöpankkisäätiö 3,290,000 9.89% corporations Liedon Säästöpankkisäätiö 3,125,049 9.39% Households 12% Töysän
Slide 38: THANK YOU
THANK YOU
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