Oma Savings Bank Plc · OMXHEX:OMASP
Oma Savings Bank — Debt Investor Presentation (November 2017)
37 slides from Oma Savings Bank's debt investor presentation, November 2017
Slide 1: Oma Savings Bank Investor Presentation
Oma Savings Bank Investor Presentation November 2017
Slide 2: Executive summary
Executive summary • Oma Savings Bank (OmaSp) is the largest savings bank in Finland with total assets of EUR2.3bn at H1 2017. • The bank has 125,000 active customers consisting mostly of private customers (67.0% of lending), small companies (26.6% of lending) and agriculture and forestry (6.4%). • O
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 3
Slide 4: Introduction to Oma Savings Bank
Slide 5: The structural transformation has gone as planned - OmaSp is a sum of strong parts
The structural transformation has gone as planned - OmaSp is a sum of strong parts September 2009 Töysä Savings Bank and Kuortane Savings Bank merged. Oma Savings Bank was formed April 2013 Parkano Savings Bank merged with Oma Savings Bank January 2014 Oma Savings Bank decided to stay independent ou
Slide 6: Ownership structure
Ownership structure Advisory board Coordination of the joint efforts of the Savings Bank Foundations • The owners are non-profit Supervision of banking activities seeking entities driven by the Joroinen Etelä-Karjala Suodenniemi Savings Bank ideology of Cooperative Savings bank foundation Savings ba
Slide 7: Oma Savings Bank's operating area
Oma Savings Bank’s operating area 1 Largest cities in Southern Finland Population Presence 2 Capital region 1,138,587 • The bank’s operations are Tampere 228,274 concentrated to the Turku 187,604 regions around larger Jyväskylä 138,850 cities in Western and Eastern Finland. Lahti 119,452 Kuopio 117,
Slide 8: Branch network
Branch network • A wide branch network consisting of 36 full service branches supports competitiveness in the bank’s operating areas. • New branches opened in Jyväskylä and Lahti in 2017. • Through the S-Bank acquisition OmaSp is opening service centers in Helsinki, Turku and Kajaani. • Being local
Slide 9: 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 - Excellent customer experiences and superior local knowledge are our advantag
Slide 10: S&P ratings of OmaSP
S&P ratings of OmaSP Rating criteria and impacts Quoted from S&P: Anchor • “We believe that the risk of a house price (Finnish a- correction is becoming more remote as economic Strengths: Weaknesses: banks) prospects and consumer confidence improve” Business Concentrated Weak -2 • “We consider posit
Slide 11: Key Financials
Slide 12: Key figures
Key figures • Mergers of strong individual banks have enabled OmaSp’s Key Figures Oma Savings Bank position as a solid Finnish savings bank. (1,000 EUR) H1 2017 2016 (IFRS) 2015* (IFRS) Total balance sheet 2,264 748 2,150 768 1,932,328 • Good financial performance has Deposits 1,497 758 1,479 278 1,
Slide 13: Customer and lending base
Customer and lending base Share of loans with collateral (H12017) Loan portfolio breakdown (H12017) 7% 26.6% 67.0% 6.4% 93% Collateralised Uncollateralised Households Agriculture and forestry SMEs Share of non-performing exposures 2.0% • A widely diversified loan portfolio of approximately EUR1.8bn
Slide 14: Detailed loan portfolio breakdown at H1 2017
Detailed loan portfolio breakdown at H12017 Agriculture and forestry, 6.4% Construction, 2.8% Manufacturing, 1.6% Trade and motor vehicle repairs, Transportation and storage, 1.4% 2.9% Accommodation and food service activities, 1.3% Arts, entertainment and recreation, 1.1% SMEs, 26.6% Others, 4.0% H
Slide 15: Good profitability and efficiency
Good profitability and efficiency Cost / Income ratio Operating profit / Total assets 1.0% 70% 60% 0.8% 50% 0.6% 40% 30% 0.4% 20% 0.2% 10% 0% 0.0% OmaSp 2015 OmaSp 2016 OmaSp 2015 OmaSp 2016 Avg. for peer group 2016* OmaSp H1 2017 Avg. for peer group 2016* Source: Oma Savings Bank 15 *Source: Finnis
Slide 16: Strong capital position
Strong capital position Equity / Total assets OmaSp capital ratios 12.0% 20% 18.9% 19.2% 10.0% 16% 8.0% 12% 6.0% 8% 4.0% 4% 2.0% 0.0% 0% CET 1 ratio Total capital ratio OmaSp 2015 OmaSp 2016 2015 2016 H12017 OmaSp H1 2017 Avg. for peer group 2016* • At 19.2%, OmaSp’s total capital ratio is well in e
Slide 17: Oma Savings Bank's funding base
Oma Savings Bank’s funding base Funding structure (H1 2017) • The deposit base is stable and will remain as the main source of funding. 5.9% 0.7% • Senior bonds and CDs complement the funding structure and make it more versatile. 17.1% • OmaSp has three senior unsecured bonds outstanding: - EUR100m
Slide 18: Oma Savings Bank's investment portfolio
Oma Savings Bank’s investment portfolio • The bank’s investment portfolio amounts to around EUR 270 million • The portfolio consists of liquid assets and other investments • Allocation of the investment portfolio as per 30.6.2017 • Fixed income ca. 80%, of which government bonds 40%, IG 45%, HY 15%
Slide 19: The outlook remains positive for OmaSp
The outlook remains positive for OmaSp • OmaSp’s operations will continue to conduct its business in a conservative manner and the bank expects to continue its profitable growth track by increasing volumes. • Operating profit guidance for 2017: At the same level or slightly higher than the operating
Slide 20: Income statement
Income statement In EUR thousands H1 2017 2016 Interest income 22,553 43,938 Interest expenses -3,871 -7,391 Net interest income 18,681 36,547 Fee income and expenses, net value 10,671 17,709 Net trading income -195 134 Net investing income 2,765 2,267 Other operating income 1,882 3,682 TOTAL INCOME
Slide 21: Balance sheet
Balance sheet ASSETS (in EUR thousand) 30.6.2017 LIABILITIES AND EQUITY (in EUR thousand) 30.6.2017 Cash and cash equivalents 8,684 Liabilities to credit institutions 33,874 Liabilities to the public and general government 1,497,759 Financial assets at fair value through profit impact 332 Debt secur
Slide 22: Cover Pool
Cover Pool
Slide 23: OmaSp cover pool characteristics
OmaSp cover pool characteristics Key characteristics of the cover pool November 2017 • Finnish FSA has granted OmaSp Size of the pool EUR 400 million (nominal) a license to act as a mortgage 97.2% Finnish residential mortgages credit bank which allows it to issue Collateral type 2.8% Finnish residen
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 internal payment defaults. The income status
Slide 25: Geographic breakdown of cover pool
Geographic breakdown of cover pool Region Major city Volume EUR million Share in the pool Southern Ostrobothnia Seinäjoki 123 31% South Karelia Lappeenranta 70 18% Pirkanmaa Tampere 53 13% Kymenlaakso Kouvola 46 12% Southern Savonia Mikkeli 20 5% Tavastia Proper Hämeenlinna 19 5% Uusimaa Helsinki 17
Slide 26: Details of the cover pool
Details of the cover pool Loan maturity distribution Loan seasoning 250 30% EUR million 25% 200 20% 150 15% 100 10% 50 5% 0 0% 2018 2019 2020 2021 2022 2023 2024 2025 2026- 0-12 M 12-24 M 24-36 M 36-60 M > 60 M Distribution of pool by loan size (EUR thousand) LTV distribution 14% 20% 12% 15% 10% 8%
Slide 27: Operating Environment
Operating Environment
Slide 28: House prices in Finland and other Nordic countries
House prices in Finland and other Nordic countries House prices deflated by CPI, 2007 = 100 House Prices, 2007 = 100 180 180 160 160 140 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 Finland Sweden Norway Denmark Finland Sweden Norway Denmark • House prices in Finland have been growing in a stable
Slide 29: Local housing markets in Finland
Local housing markets in Finland 200 • Despite low economic growth over the past years, the housing market 180 in Finland has remained active and supported especially by low interest 160 rate environment. • Price levels in the local housing markets where 140 OmaSp operates have developed more modest
Slide 30: Finnish economy growing at a more healthy pace
Finnish economy growing at a more healthy pace GDP growth Unemployment rate 8% 10.0% 5% 6% 9.5% 4% 3% 9.0% 2% 1% 8.5% 0% -1% 8.0% -2% 7.5% -4% -3% 7.0% -6% -5% -8% 6.5% -10% -7% 6.0% GDP growth MoM (Rhs) GDP growth YoY (Lhs) Unemployment • The GDP growth in Finland is picking up after a number of ye
Slide 31: Sentiment and economic activity picking up
Sentiment and economic activity picking up Consumption growth Investment growth 1.5% 30 15% 4000 Flats 25 10% 1.0% 3500 20 5% 0.5% 15 3000 0% 0.0% 10 -5% 2500 5 -0.5% -10% 0 2000 -1.0% -5 -15% -1.5% -10 -20% 1500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 32: Positive development in household wealth
Positive development in household wealth Household assets & liabilities in Finland Home prices relative to income, 2000=100 3000 110 EUR billions Index 108 2500 106 104 2000 102 1500 100 98 1000 96 94 500 92 0 90 Home prices relative to disposable income Household assets Household liabilities Home p
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 Savings Bank Oyj (Bloomberg: OMASST) • Oma Savings Bank is Issue Type Covered Bond contemplating an inaugural Collateral Type Finnish residential mortgages and housing associations EUR covered bond transaction with a sub- Expected Issue Rating A
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: 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 37: Ne) ff >» j . : ee
Ne) ff >» j . : ee
Oma Savings Bank — Debt Investor Presentation (November 2017) on 6ix