Oma Savings Bank Plc · OMXHEX:OMASP
Oma Savings Bank — Debt Investor Presentation (November 2020)
42 slides from Oma Savings Bank's debt investor presentation, November 2020
Slide 1: Oma Savings Bank Credit Investor Presentation November 2020
Oma Savings Bank Credit Investor Presentation November 2020 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 (OmaSp) is the largest savings bank in Finland according to the balance sheet. Total assets stood in excess of EUR 3.95bn at the end of Q3 2020. • The bank has over 140,000 active customers consisting mostly of private customers (60% of lending), corporate custom
Slide 4: Content overview
Content overview I Introduction to Oma Savings Bank II Key Financials III Cover Pool IV Operating Environment V Planned Transaction & Contact Details 4
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Slide 6: OmaSp today – profitable growth supported by efforts in recent years
OmaSp today – profitable growth supported by efforts in recent years to improve the customer experience and the availability of customer service through new digital service channels and opening of new units OmaSp key highlights Strong financial profile • OmaSp is a widely operating bank in Finland E
Slide 7: From a local savings bank to a nationwide bank by opening of new units
From a local savings bank to a nationwide bank by opening of new units 10 Expansion in years Greater Helsinki, Turku and Oulu The start of the core banking system renewal S-Pankki’s SME, agriculture and forestry Sale of Oy Samlink Ab business GT Invest Oy Balance sheet total, EUR billion Expansion t
Slide 8: Improving customer experience through nationwide branch network and digital channels
Improving customer experience by being close through nationwide branch network and digital channels OmaKonttori mobile application OmaMobiili mobile bank Modern mobile payment Online bank Customer service, call center & chat Sales visits at OmaSp branch customers 32 OmaSp branches Extensive digita
Slide 9: Continued growth: Ongoing negotiations to merge two Savings Banks into OmaSp
Continued growth: Ongoing negotiations to merge two Savings Banks into OmaSp • The Oma Savings Bank Plc (OmaSp) has started negotiations to merge Eurajoen and Mietoinen Savings Banks into Oma Savings Bank. • Possible unification would take place in the second half of 2021, when Eurajoen and Mietoine
Slide 10: 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 11: Financial goals and guidance for 2020
Financial goals and guidance for 2020 Board of Directors approved the following financial goals: • 10–15% annual growth in total operating income under the current market conditions Growth (14.9% in 1-9/2020 and 21.9 % in 2019) Profitability • Cost/income ratio less than 55% (48.6% in 1-9/2020 and 5
Slide 12: 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 rating in customer satisfaction in the banking sector. We have defined four key sustainability themes for the company. We ca
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Slide 14: Key figures
Key figures Total operating income Equity / Total assets Profit before taxes 80.0 EUR mill. 8.7% 27.2 EUR mill. Accounting period 1-9/2020 Accounting period 1-9/2020 Accounting period 1-9/2020 Cost-income ratio Balance sheet total Number of employees 48.6% 3,953 EUR mill. 298 Accounting period 1-9/2
Slide 15: Developments in overall operating income and profitability
Chart Title 70.0 Developments in overall operating income and profitability 60.0 Total operating income, EUR million Profit before taxes, EUR million Cost- 50.0 Growth 22.8% 2.5% 21.8% 14.9% 55.5% 62.2% 54.4% 52.7% 48.6% income ratio 92.6 2.1 40.0 76.0 7.5 80.0 32.7 74.1 2.2 - - 1.9 0.6 30.4 2.7 69.
Slide 16: Strong track record in peer group
Strong track record in peer group Annual increase in balance sheet total Cost/income ratio % Return on assets (ROA) % average 2017-2019, % average 2017-20192) average 2017-20192) 72.4 72.7 73.7 0.9 11.9 69.3 63.0 64.5 54.4 0.63 0.65 8.0 0.5 0.47 0.47 0.37 3.4 3.0 3.0 2.4 0.8 1) Peer group average in
Slide 17: High profitability and cost efficiency
High profitability and cost efficiency Cost / Income ratio Operating profit / Total assets 80% 1.8% 1.62% 67.4% 1.6% 62.2% 58.9% 1.4% 60% 55.5% 54.4% 48.6% 1.2% 1.11% 1.0% 0.96% 40% 0.86% 0.8% 0.6% 0.55% 20% 0.4% 0.2% 0% 0.0% OmaSp OmaSp OmaSp OmaSp OmaSp Peer av. OmaSp OmaSp OmaSp OmaSp Peer av. 20
Slide 18: Strong capital position
Strong capital position Equity / Total assets OmaSp capital ratios 12.0% 20.0 % 10% 10.0% 9.40% 19.0 % 8.90% 8.70% 8.0% 18.0 % 5.90% 6.0% 16.8 % 17.0 % 16.5 % 4.0% 16.0 % 2.0% 15.0 % CET1 ratio Total Capital ratio 0.0% OmaSp OmaSp OmaSp OmaSp Peer av. 2017 2018 2019 09/20 2019 OmaSp -17 OmaSp -18 Om
Slide 19: Oma Savings Bank's funding base
Oma Savings Bank’s funding base Funding highlights Funding structure (30.09.2020) • The bank’s deposit base is stable and will remain as the main 4.1 % source of funding. 0.4 % • Loans-to-Deposits ratio was 146% as of 30.09.2020 3.4 % • Senior unsecured bonds, covered bonds and CDs complement 24.3 %
Slide 20: Customer and lending base Q3/2020
Customer and lending base Q3/2020 Total loan portfolio by customer groups Non-Private customer loan portfolio distribution Real estate Retail customers Agriculture, forestry and 17% 20% fishery Corporates Construction 3% 60% 4% 44% Whole-and retail sales Housing cooperative 6% Industry 10% Agricultu
Slide 21: Investment portfolio and liquidity management
Investment portfolio and liquidity management • The bank’s investment portfolio amounts to around EUR 474 million • The portfolio consists of liquid assets and other investments • Allocation of the investment portfolio as per 30.09.2020 • Fixed income 91,5% • Equity 7,3% • Alternative investments 1,
Slide 22: Cover Pool
Cover Pool 22
Slide 23: OmaSp cover pool characteristics
OmaSp cover pool characteristics Key characteristics of the cover pool 30 September 2020 Size of the pool EUR 1,250 million (nominal) • In October 2017, the Finnish FSA Collateral type 100% Finnish residential mortgages granted OmaSp a license to act as a mortgage credit bank which Number of loans 2
Slide 24: 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 25: Geographic breakdown of cover pool
Geographic breakdown of cover pool Volume EUR Share in the Region Major city million pool Southern Seinäjoki 344 27.5 % Ostrobothnia Pirkanmaa Tampere 181 14.5 % South Karelia Lappeenranta 135 10.8 % Uusimaa Helsinki 98 7.8 % Kymenlaakso Kouvola 88 7.1 % Tavastia Proper Hämeenlinna 75 6.0 % Central
Slide 26: Details of the cover pool
Details of the cover pool Loan maturity distribution Loan seasoning 50% 25% 40% 20% 30% 15% 20% 10% 10% 5% 0% 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 - 0% > 0-12 M 12-24 M 24-36 M 36-60 M > 60 M Loan size buckets (EURk) LTV distribution 30% 25% 25% 20% 20% 15% 15% 10% 10% 5% 5% 0% 0% 0-40%
Slide 27: Operating Environment
Operating Environment 27
Slide 28: House prices in Finland and other Nordic countries
House prices in Finland and other Nordic countries Current house price-index, 2007 = 100 Inflation adjusted price-index, 2007 = 100 • In the long-term, house prices in Finland have been relatively stable compared to Nordic peers. When adjusted for inflation, the story is similar. • The Finnish house
Slide 29: Local housing markets in Finland
Local housing markets in Finland Urbanization and low interest rates still dominate the housing market outlook Prices of condominiums, old, index 2005 = 100 • The overall impact of the COVID-19 crisis on the Finnish housing market has been milder than expected. Urbanization still dominates the aggre
Slide 30: The COVID-19 pandemic plunged the Finnish economy into a deep downturn
The COVID-19 pandemic plunged the Finnish economy into a deep downturn GDP growth Unemployment & employment rate • The COVID-19 pandemic plunged the Finnish economy into a deep downturn. However, the fall of the Finnish economy in the first half of the year was less severe than in the most other Eur
Slide 31: Loan costs and indebtedness are low in the Finnish housing market
Loan costs and indebtness are low in the Finnish housing market Interest rates on new residential loans, annual average 2019 Total outstanding residential loans to GDP ratio in 2019 3.00% 100 Interest rates in Finland in new residential loans are 90 Residential loan to GDP the second lowest in lowes
Slide 32: However, loans have increased steadily during the past years
However, loans have increased steadily during the past years But Finnish household debt remains the lowest among its Nordic peers Household debt as % of net disposable income • In Finland, both regular housing loans and housing corporation loans, as well as consumption loans have increased steadily
Slide 33: Planned Transaction & Contact Details
Planned Transaction & Contact Details
Slide 34: 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 rate,
Slide 35: 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 35
Slide 36: Appendix
Appendix 36
Slide 37: Oma Savings Bank Group's key financials
Oma Savings Bank Group’s key financials Oma Savings Bank Group's key figures (1,000 euros) 1-9/2020 1-9/2019 Δ% 1-12/2019 2020 Q3 2020 Q2 2020 Q1 Net interest income 48,929 42,503 15% 57,522 17,539 15,886 15,505 Total operating income 79,989 69,636 15% 92,573 26,386 23,625 29,978 Total operating exp
Slide 38: Income statement
Income statement Consolidated condensed income statement (1,000 euros) 1-9/2020 1-9/2019 1-12/2019 2020 Q3 2019 Q3 Interest income 52,704 46,950 63,351 18,729 16,281 Interest expenses -3,775 -4,447 -5,828 -1,190 -1,413 Net interest income 48,929 42,503 57,522 17,539 14,868 Fee and commission income
Slide 39: Balance sheet
Balance sheet Consolidated condensed balance sheet Assets (1,000 euros) 30 Sep 2020 Liabilities and equity (1,000 euros) 30 Sep 2020 Cash and cash equivalents 77,041 Liabilities to credit institutions 220,388 Liabilities to the public and public sector entities 2,232,986 Loans and advances to credit
Slide 40: Ownership structure (as of 31 October 2020)
Ownership structure (as of 31 October 2020) Ownership by type Shareholder Shares % Non-profit institutions 7% 3% 0% Etelä-Karjalan Säästöpankkisäätiö 10,078,759 34.1% 4% Financial and insurance Parkanon Säästöpankkisäätiö 3,400,000 11.5% corporations 11% Töysän Säästöpankkisäätiö 3,000,000 10.1% Pub
Slide 41: 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 Anchor a- • “We currently do not see major domestic economic Very strong risk- Concentrated (Finnish banks) imbalances in the Finnish economy since house prices adjusted business have stabilized nationw
Slide 42: Thank you
THANK YOU
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