Oma Savings Bank Plc · OMXHEX:OMASP
Oma Savings Bank — Debt Investor Presentation (2024)
36 slides from Oma Savings Bank's debt investor presentation, 2024
Slide 1: Oma Savings Bank Credit Investor Presentation Q4 2023
Oma Savings Bank Credit Investor Presentation Q4 2023 1
Slide 2: Content overview
Content overview 1. Oma Savings Bank Overview 3-8 2. Key Financials 9-14 3. Funding and Cover Pool 15-21 4. Operating Environment 22-23 5. Appendix 24-36 2
Slide 3: 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 35.1% in 2023, considerably below peers
Slide 4: Oma Savings Bank Overview
Oma Savings Bank Overview Combination of quality growth and profitability* Strong financial profile & rating Equity 12/2023, EUR million 541 Balance sheet total 12/2023, EUR billion 7.6 Comparable profit before taxes, EUR million 143.6 Comparable cost-income ratio 1-12/2023 35.1% Comparable ROE 1-12
Slide 5: Finnish household mortgages – loan capital change
Finnish household mortgages – loan capital change Household mortgages Dec 2022, Change Dec 2017-Dec 2022 EUR bn 2 313 OmaSp 121% 3 995 S-Pankki 94% 2 376 Pop 26% 5 886 Säästöpankki 20% Data from 802 Hypo 19% Bank of Finland 32 439 Nordea 14% (BoF) 42 075 OP 11% Aktia 8% 4 269 Kuntarahoitus 4% 290 Ha
Slide 6: Profitable growth - From a local savings bank to a nationwide bank
Profitable growth - From a local savings bank to a nationwide bank Expansion in Liedon Säästöpankki Espoo and Tampere Eurajoen Säästöpankki 7.642 S-Pankki’s Balance sheet total, EUR billion SME, agriculture and forestry business Expansion in Greater Helsinki, Expansion in Lahti and Turku and Oulu Su
Slide 7: Liedon Savings Bank acquisition successfully completed
Liedon Savings Bank acquisition successfully completed OmaMobiili mobile application OmaSp web meetings OmaVahvistus mobile application st • The acquisition of Liedon Savings Bank business successfully completed on the 1 of March 2023 • The acquisition will have a significant positive impact on the
Slide 8: OmaSp has agreed to acquire Handelsbanken's SME operations in Finland
OmaSp has agreed to acquire Handelsbanken's SME operations in Finland • In May 2023, OmaSp and Handelsbanken agreed on an arrangement whereby OmaSp will acquire Handelsbanken's SME operations in Finland. The SME operations are geographically located all over Finland. • The transaction is expected to
Slide 9: 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 cost-income 51.2% 48.0% 48.0% 35.1% Growth 20.0% 41.0% -7.8% 71.1% ratio 7.5 - Source: OmaSp. Audited full year 2020-2022 figures. Non-audited figures
Slide 10: Profitable growth continues
Profitable growth continues 45 Customer and employee satisfaction levels are at an excellent level Service network expands to Vantaa, Vaasa, and Kuopio branches New operational model Preparation for the implemented on December 1, implementation of the IRB method 2023. Digital services Acquisition of
Slide 11: Dividend policy and guidance for 2024
Dividend policy and guidance for 2024 4,3/51) Guidance for 2023 OmaSp’s profitable growth will continue driven by investments in customer experience and service network. The SME customer business to be acquired from Handelsbanken will improve profitability from the second half of 2024 onwards. We es
Slide 12: Customer and lending base
Customer and lending base Total loan portfolio by customer groups as per 31 December 2023 Non-Private customer loan portfolio distribution 21% Real estate 24% 49% Agriculture, Forestry and Fishery Corporates Construction Housing cooperative 3% 12% Whole- and retail sales Agriculture Other 7% Industr
Slide 13: Asset Quality has remained at a good level
Asset Quality has remained at a good level Impairment losses on financial assets Additional allowances for use • The quality of the credit portfolio has remained at the expected level despite the uncertain economic situation. • Impairment losses on financial assets (net) were EUR -17.1 (-1.7) millio
Slide 14: Strong Capital Position
Strong Capital Position CET1 & TC Ratio 25% • Capital position is steady. The total capital (TC) ratio of Oma Savings Bank increased and was 16.5% in December 2023. 19.3 % 20% 18.4 % 17.3 % • The current TC-% ratio requirement is 12.01% 16.2 % 16.5 % 16.8 % 15.6 % 14.9 % 15.9 % 15.5 % • Risk-weighte
Slide 15: Oma Savings Bank's funding base
Oma Savings Bank’s funding base Funding highlights Q4 2023 Funding structure Deposit base by customer segment 3% 2% • The bank’s deposit base is stable and will remain as the main 6% 9% source of funding (54%). Deposit base EUR 3.74 billion. Majority of Deposits Household deposits comes from househo
Slide 16: Liquidity management and investment portfolio
Liquidity management and investment portfolio Liquidity and investment portfolio Q4 2023 Liquidity (LCR & NSFR) LCR NSFR • The bank’s investment portfolio amounted to EUR 561.4 million 250% ❖ The portfolio consists of liquid assets and other investments • Allocation of the investment portfolio 200%
Slide 17: 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 8th July 2022 to harmonize the European Cover Bond Market • OmaSp was granted a licence in June 2022 in order to issue covered bon
Slide 18: OmaSp cover pool characteristics
OmaSp cover pool characteristics Key characteristics of the cover pool 31 December Size of the pool EUR 3.024,02 million (nominal) Collateral type 100% Finnish residential mortgages • S&P has assigned AAA ratings to the covered Number of loans 40,861 bonds of Oma Savings Bank. The outlook is stable
Slide 19: Cover pool structure and outstanding covered bonds
Cover pool structure and outstanding covered bonds Customer scoring • Regular and up to date credit scoring for customer Collateral type credit class • The weakest classes are not cover pool applicable 11.4 % 57.1% Customer Loan • No arrears more than 30 days Single-family • Amortizing loans 98.7% h
Slide 20: Details of the cover pool
Details of the cover pool Loan Maturity Distribution Loan seasoning 55.4 % 29.1 % 25.1 % 19.8 % 14.2 % 11.8 % 6.1 % 6.1 % 6.1 % 5.8 % 5.3 % 5.3 % 5.1 % 4.9 % 0-12 M 12-24 M 24-36 M 36-60 M > 60 M 2024 2025 2026 2027 2028 2029 2030 2031 2032- Loan size buckets €k LTV Distribution* 65.5 % 20.9 % 20.1
Slide 21: Geographic breakdown of cover pool
Geographic breakdown of cover pool Volume EUR Share in the Region Major city million pool • Finland’s three (3) biggest growth areas forecasted by the end of 2040*: Varsinais-Suomi Turku 597 19.7% • Helsinki region • Tampere region Southern Seinäjoki 520 17.2% Ostrobothnia • Turku region Pirkanmaa T
Slide 22: Finnish economy expected to recover in 2025; government indebtedness below Euro area average
Finnish economy expected to recover in 2025; government indebtedness below Euro area average Macroeconomic outlook 2022 2023F 2024F 2025F 2026F Real GDP growth (%) 1.6 -0.5 -0.2 1.5 1.3 • The Finnish economy stalled in 2023, CPI (YoY%) 7.2 4.4 1.0 1.4 1.7 and recovery is estimated to be slow with GD
Slide 23: Finnish household indebtedness lowest in Northern Europe whilst housing market remains stable
Finnish household indebtedness lowest in Northern Europe whilst housing market remains stable Household debt as % of net disposable income 250 200 150% 150 • Household debt (as % of net disposable income) in Finland is lowest in Northern Europe 100 50 0 LVA LTU SVN EST GRC SVK ITA AUT ESP DEU IRL BE
Slide 24: Appendix
Appendix 25-34 omadp
Slide 25: 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 • 2. Proactive • Differentiation from the competitors customer • Excellent customer experiences and superior local knowled
Slide 26: 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 defined three key sustainability themes We are local and for the company. close to people We have made a commitment to support the UN’s 17
Slide 27: Sustainability roadmap
Sustainability roadmap We are local and We promote We contribute close to people collective well-being to sustainable development We want to be local and close to people. We have an important task to support We have the opportunity to positively impact Personal customer service is our key to custome
Slide 28: Sustainability is at the heart of our business
Sustainability is at the heart of our business Customers’ satisfaction Overall customer We have some with their own satisfaction contact person 200,000 45 branches throughout 4.3 4.6 customers on a scale of 1–5 Finland on a scale of 1–5 We reached a total of Carbon footprint of Overall employee A su
Slide 29: Key figures
Key figures Total operating income Equity / Total assets Profit before taxes 247.0 EUR mill. 7.1% 138.0 EUR mill. Accounting period 1-12/2023 Accounting period 1-12/2023 Accounting period 1-12/2023 Comparable Cost-income ratio Balance sheet total Number of employees 35.1% 7,642 EUR mill. 445 Account
Slide 30: Oma Savings Bank Group's key financials
Oma Savings Bank Group’s key financials Source: OmaSp. Non-audited figures for period ending 31 December 2023 1) The calculation principles of the key figures are presented in note 18 of the Interim report. 30 Comparable profit is presented in the income statement.
Slide 31: Source: OmaSp. Non-audited figures for period ending 31 December 2023
Source: OmaSp. Non-audited figures for period ending 31 December 2023 31
Slide 32: Balance sheet
Balance sheet Source: OmaSp. Non-audited figures for period ending 31 December 2023 32
Slide 33: 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 34: Ownership structure (as of 31 December 2023)
Ownership structure (as of 31 December 2023) Ownership by type Shareholder Shares % 1% 3% Public sector Etelä-Karjalan Säästöpankkisäätiö 8,578,759 25.78% 20% Financial and insurance Parkanon Säästöpankkisäätiö 3,300,000 9.92% corporations Households Liedon Säästöpankkisäätiö 3,125,049 9.39% 12% Cor
Slide 35: Thank you
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Slide 36: Disclaimer
Disclaimer This presentation contains information prepared by Oma Savings Bank Plc for the use of investors. The contents of this presentation, in whole or in part, must not be distributed, published, passed on, or reproduced, nor may its contents be disclosed by the recipient to any other person. T