Oma Savings Bank Plc · OMXHEX:OMASP
Oma Savings Bank — Debt Investor Presentation (March 2020)
41 slides from Oma Savings Bank's debt investor presentation, March 2020
Slide 1: Oma Savings Bank Credit Investor Presentation March 2020
Oma Savings Bank Credit Investor Presentation March 2020 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 in excess of EUR 3.4bn at the end of 2019. • The bank has over 139,000 active customers consisting mostly of private customers (60% of lending), corporate customers
Slide 3: Content overview
Content overview I Introduction to Oma Savings Bank II Key Financials III Cover Pool IV Operating Environment V Planned Transaction & Contact Details 2
Slide 4: Oma Savings Bank
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 2019, EUR million 319.9 • More than 140 years of history • Provides comprehensive banking services across 32 Balance sheet total, branches and through digital service channels 17% average yearly growth 2016-2019 • 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 1,189,664 larger cities in Western and Eastern Tampere 238,420 Finland. Oulu 205,629 • Long-term local presence, customer Turku 193,176 knowled
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 2020
Financial goals, dividend policy and guidance for 2020 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 (22% in 2019) Profitability • Cost/income ratio less than 55% (54% in 2019)
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 • “House prices have stabilized nationwide and market Anchor a- activity especially in the growth regions is now picking (Finnish banks) up. …we consider the risk of a house price correction Concentrate
Slide 11: 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 have made a commitment to support the UN’s 17 Sustainable Development Goals. Our aim is to include five of the targets that have the greatest i
Slide 12: Four sustainability themes
Four sustainability themes We aim at the highest rating in customer satisfaction in the banking sector. We care about our employees, so we diversely promote their well-being. In addition, we promote and maintain the diversity of our work community, as well as varied work that entails responsibility.
Slide 13: Key Financials
Slide 14: Key figures
Key figures Total operating income Equity / Total assets profit before taxes 92.6 EUR mill. 9.4% 32.7 EUR mill. Accounting period 1-12/2019 Accounting period 1-12/2019 Accounting period 1-12/2019 Cost-income ratio Balance sheet total Number of employees 54.4% 3,417 EUR mill. 300 Accounting period 1-
Slide 15: 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 Cost- 22.8% 2.5% 21.8% 59.5% 58.9% 55.5% 62.2% 54.4% income ratio 92.5 2.1 7.5 76.0 74.1 1.9 0.6 2.7 32.7 25.4 60.3 10.8 30.4 24.2 54.4 3.7 7.5 2.4 25.0 3.0 10.8 4.4 21.
Slide 16: High profitability and cost efficiency
High profitability and cost efficiency Cost / Income ratio Operating profit / Total assets 80% 1.0% 0.96% 70% 67.4% 0.8% 60% 54.4% 50% 0.6% 0.55% 40% 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 OmaSp 2019 OmaS
Slide 17: Strong capital position
Strong capital position Equity / Total assets OmaSp capital ratios 12% 20% 18% 17.3% 16.8% 10% 9.4% 16% 14% 8% 12% 5.9% 6% 10% 8% 4% 6% 2% 4% 2% 0% 0% Total equity / Total assets CET 1 ratio Total capital ratio OmaSp 2016 OmaSp 2017 OmaSp 2016 OmaSp 2017 OmaSp 2018 OmaSp 2019 OmaSp 2018 OmaSp 2019 A
Slide 18: Oma Savings Bank’s funding base
Oma Savings Bank’s funding base Funding highlights Funding structure (31.12.2019) • The bank’s deposit base is stable and will remain as the 0.5% 6% main source of funding. • Loans-to-Deposits ratio was 144% as of 31.12.2019 22% • Senior unsecured bonds, covered bonds and CDs complement the funding
Slide 19: Customer and lending base end of 2019
Customer and lending base end of 2019 Total loan portfolio by customer groups Non-Private customer loan portfolio distribution Real estate Retail customer 16% Agriculture, Forestry and 21% Fishery Corporates 3% Construction 39% 5% Whole- and retail sales Housing cooperative 60% 9% Industry 9% Agricu
Slide 20: Investment portfolio and liquidity management
Investment portfolio and liquidity management • The bank’s investment portfolio amounts to around EUR 330 million • The portfolio consists of liquid assets and other investments • Allocation of the investment portfolio as per 31.12.2019 • Fixed income 89% • Equity 10% • Alternative investments 1% •
Slide 21: Cover Pool
Cover Pool
Slide 22: OmaSp cover pool characteristics
OmaSp cover pool characteristics Key characteristics of the cover pool 6 March 2020 Size of the pool EUR 1,250 million (nominal) • Finnish FSA has granted OmaSp a Collateral type 100% Finnish residential mortgages license to act as a mortgage credit Number of loans 20,788 bank which allows it to iss
Slide 23: 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 24: Geographic breakdown of cover pool
Geographic breakdown of cover pool Volume EUR Share in the Region Major city million pool Southern Seinäjoki 340 27.2 % Ostrobothnia Pirkanmaa Tampere 187 15.0 % South Karelia Lappeenranta 146 11.7 % Kymenlaakso Kouvola 95 7.6 % Uusimaa Helsinki 92 7.4 % Tavastia Proper Hämeenlinna 67 5.4 % Southern
Slide 25: Details of the cover pool
Details of the cover pool Loan maturity distribution Loan seasoning 600 30% 500 25% 400 20% 300 15% 200 10% 100 5% 0 0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 -> 0-12 M 12-24 M 24-36 M 36-60 M > 60 M Loan size buckets (EURk) LTV distribution 30% 20% 15% 20% 10% 10% 5% 0% 0% 0-40 % 40-50 %
Slide 26: Operating Environment
Operating Environment
Slide 27: 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 = 100 200 180 180 160 160 140 140 120 120 100 100 80 80 60 60 40 40 2004 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 28: Local housing markets in Finland
Local housing markets in Finland Nominal house prices, 2000 = 100 230 Index, 2000 = 100 • The housing market in Finland has 210 remained active and supported especially by low interest rate 190 environment. Recent economic growth has allowed house prices to return to an increasing trend. 170 • Price
Slide 29: Finnish economy still growing at a healthy pace with employment rising
Finnish economy still growing at a healthy pace with employment rising GDP growth Unemployment & employment rate 8% 10.0% 74% 5% 6% 9.0% 73% 4% 3% 72% 2% 8.0% 1% % 71% -1% 7.0% -2% 70% -4% -3% 6.0% 69% -6% -5% 5.0% 68% -8% -10% -7% 4.0% 67% 2001 2007 2000 2002 2003 2004 2005 2006 2008 2009 2010 2011
Slide 30: Loan costs and indebtedness are low in the Finnish housing market
Loan costs and indebtdness are low in the Finnish housing market Interest rates on new residential loans, annual average Total outstanding residential loans to GDP ratio 3.00% 100 Interest rates in Finland in new residential loans are 90 Residential loan to GDP the second lowest in lowest in Nordic
Slide 31: 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=100 300 120 115 250 110 200 105 150 100 95 100 90 50 85 0 80 2005 2000 2001 2002 2003 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 32: Planned Transaction & Contact Details
Planned Transaction & Contact Details
Slide 33: 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 [Intermediate tenor] (soft bullet) Size Sub-benchmark (LCR 2A compliant) Coupon Fixed rat
Slide 34: 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 33
Slide 35: Appendix
Appendix
Slide 36: Oma Savings Bank Group’s key financials
Oma Savings Bank Group’s key financials The Group's key figures (1000 euros) 01-12/2019* 01-12/2018 01-12/2017 Net interest income 57,522 49,351 39,317 Total operating income 92,573 75,958 74,091 Total operating expenses 50,309 47,237 41,112 1) Cost/income ratio, % 54.40% 62.20% 55.50% Impairment lo
Slide 37: Income statement
Income statement In EUR thousands 2019* 2018 Interest income 63,351 55,949 Interest expenses -5,828 -6,599 Net interest income 57,522 49,351 Fee and commission income and expenses, net 29,981 24,158 Net income on financial assets and financial liabilities 7,518 556 Other operating income 2,118 1,893
Slide 38: Balance sheet
Balance sheet ASSETS (in EUR thousand) 31.12.2019* LIABILITIES AND EQUITY (in EUR thousand) 31.12.2019* Cash & cash equivalents Liabilities to credit institutions 6,626 88,045 Financial assets at fair value through profit impact Liabilities to the public and general government 0 2,005,573 Loans & ad
Slide 39: Ownership structure (as of February 2020)
Ownership structure (as of 29 February 2020) Ownership by type Shareholder Shares % Non-profit institutions 5% 3% Etelä-Karjalan Säästöpankkisäätiö 10,526,779 35.6% 4% Financial and insurance Parkanon Säästöpankkisäätiö 3,400,000 11.5% 12% corporations Töysän Säästöpankkisäätiö 3,000,000 10.1% Publi
Slide 40: 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 41: Thank you
THANK YOU
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