Oma Savings Bank Plc · OMXHEX:OMASP
Oma Savings Bank — Debt Investor Presentation (May 2022)
41 slides from Oma Savings Bank's debt investor presentation, May 2022
Slide 1: Oma Savings Bank Credit Investor Presentation May 2022
Oma Savings Bank Credit Investor Presentation May 2022 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 Key Investment Highlights • Oma Savings Bank (OmaSp) is the largest savings bank in • Oma Savings Bank has over the last years reported Finland according to the size of the balance sheet with Profitable higher returns than the peer group despite a high growth total
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 Balance sheet total, EUR billion Expansion in Greater Helsinki, S-Pankki’s Turku and Oulu SME, agriculture and forestry business Eurajoen Expansion in Säästöpankki Lahteen jand Jyväskylään Suoden- niemen Säästöpankki Listing on H
Slide 8: Improving customer experience by being close through nationwide branch network and digital channels
Improving customer experience by being close through nationwide branch network and digital channels Digital services OmaMobiili mobile application with customer everywhere. 35 OmaSp OmaSp web meeting branches OmaVahvistus mobile application Modern mobile payment eg. Apple Pay, Google Pay Online bank
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 – Differentiation from the competitors – Excellent customer experiences and su
Slide 10: Financial goals and guidance for 2022
Financial goals and guidance for 2022 Board of Directors approved the following financial goals: • 10–15% annual growth in total operating income under the current market conditions Growth (19% in 1-3/2022 and 41 % in 2021) Profitability • Cost/income ratio less than 45% (54.6% in 1-3/2022 and 41.9%
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 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 13: Key figures
Key figures Total operating income Equity / Total assets Profit before taxes 34.5 EUR mill. 6.7% 18.2 EUR mill. Accounting period 1-3/2022 Accounting period 1-3/2022 Accounting period 1-3/2022 Cost-income ratio Balance sheet total Number of employees 54.6% 5,518 EUR mill. 331 Accounting period 1-3/2
Slide 14: Developments in overall operating income and profitability
Developments in overall operating income and profitability • Total operating income, EUR million • Profit before taxes, EUR million Cost- Growth 18.5% income 21.8% 20.0% 41.0% 54.4% 46.6% 41.9% 54.6% ratio 156.6 7.5 30.0 83.3 111.1 5.2 - 3.1 92.6 30.1 10.9 33.7 2.1 7.5 29.3 25.4 37.7 32.7 34.5 80.1
Slide 15: OmaSp a unique combination of growth and profitability
OmaSp a unique combination of growth and profitability • Development of operating income indexed Source: Inderes Plc large report 19 February 2022 15
Slide 16: Strong track record in peer group
Strong track record in peer group • Development of cost/income ratio Source: Inderes Plc large report 19 February 2022 16
Slide 17: Strong capital position
Strong capital position Equity / Total assets OmaSp capital ratios 20,0 % 12,0% 10,0% 14,6% 14,7% 10,0% 9,4% 15,0 % 8,1% 8,0% 7,5% 6,7% 6,9% 10,0 % 6,0% 4,0% 5,0 % 2,0% 0,0% 0,0 % OmaSp OmaSp OmaSp OmaSp OmaSp Peer 2018 2019 2020 2021 3-22 av. CET1 ratio Total Capital ratio OmaSp -18 OmaSp -19 OmaSp
Slide 18: Customer and lending base Q1/2022
Customer and lending base Q1/2022 Total loan portfolio by customer groups Non-Private customer loan portfolio distribution 2% 6% 24% 43% 9% Real estate Agriculture, Forestry and Fishery Retail Construction Corporate 4% Whole- and retail sales Housing Corporate 21% Agriculture 8% Industry 62% Other O
Slide 19: Oma Savings Bank's funding base
Oma Savings Bank’s funding base Funding highlights Funding structure (31.03.2022) • The bank’s deposit base is stable and will remain as the main 3,0 % source of funding. 4,8 % 0,3 % • Loans-to-Deposits ratio was 148% as of 31.03.2022 5,1 % • Senior unsecured bonds, covered bonds and CDs complement
Slide 20: Investment portfolio and liquidity management
Investment portfolio and liquidity management • The bank’s investment portfolio amounted to EUR 610.4 million as per 31.03.2022 • The portfolio consists of liquid assets and other investments • Allocation of the investment portfolio as per 31.03.2022 • Fixed income 95,6% • Equity 4,1% • Alternative
Slide 21: Cover Pool
Cover Pool 22
Slide 22: OmaSp cover pool characteristics
OmaSp cover pool characteristics Key characteristics of the cover pool 31 March 2022 Size of the pool EUR 1,690 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 24,77
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 399 23.6 % Ostrobothnia Pirkanmaa Tampere 255 15.1 % Uusimaa Helsinki 179 10.6 % South Karelia Lappeenranta 142 8.4 % Tavastia Proper Hämeenlinna 102 6.0 % Satakunta Pori 94 5.6 % Kymeenlaaks
Slide 25: Details of the cover pool
Details of the cover pool Loan maturity distribution Loan seasoning 1 000 25% 900 800 20% 700 600 15% 500 400 10% 300 200 5% 100 0 0% 2022 2023 2024 2025 2026 2027 2028 2029 2030 - 0-12 M 12-24 M 24-36 M 36-60 M > 60 M Loan size buckets (EURk) LTV distribution 30% 30% 20% 20% 10% 10% 0% 0% Note: The
Slide 26: Operating Environment
Operating Environment 27
Slide 27: House prices in Finland and other Nordic countries
House prices in Finland and other Nordic countries Current house price-index, 2015 = 100 150 140 130 120 110 100 90 80 70 60 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Denmark Finland Norway Sweden • In the long-term, house prices in Finland have been relatively stable compared to N
Slide 28: 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 29: The COVID-19 pandemic plunged the Finnish economy into a downturn, but have recovered
The COVID-19 pandemic plunged the Finnish economy into a downturn, but have recovered over the last quarters GDP growth Unemployment & employment rate 25 10 74 20 9 15 8 72 10 7 5 6 70 0 5 -5 4 68 -10 -15 3 -20 2 66 -25 1 -30 0 64 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2010 2012
Slide 30: Loan costs and indebtness 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 Interest rates in Finland in new residential loans are Residential loan to GDP the second lowest in lowest in Nordic c
Slide 31: 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 400 • In Finland, both regular housing loans and housing corporation 350 loans, as well as consumption loans have increased s
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) Finnish Covered Bond, backed by 100% prime Finnish residential mortgages, expected ECB Issue Type repo & CBPP3 eligibility, UCITS/CRR and LCR 2A compliant Expected Issue Rating AAA (S&P) Maturity Long 4 year
Slide 34: 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 35: Appendix
Appendix 36
Slide 36: Oma Savings Bank Group's key financials
Oma Savings Bank Group’s key financials Source: OmaSp. Audited figures for period ending 31 March 2022 1) The calculation principles of the key figures are presented in note 15 of the interim report. 36 Comparable profit is presented in the income statement.
Slide 37: Income statement
Income statement Source: OmaSp. Audited figures for period ending 31 March 2022 37
Slide 38: Balance sheet
Balance sheet Source: OmaSp. Audited figures for period ending 31 March 2022 38
Slide 39: Ownership structure (as of April 2022)
Ownership structure (as of 30 April 2022) Ownership by type Shareholder Shares % 1% Public sector 8% Etelä-Karjalan Säästöpankkisäätiö 9,078,759 30.1% Financial and insurance 3% 12% corporations Parkanon Säästöpankkisäätiö 3,290,000 10.9% Households Töysän Säästöpankkisäätiö 2,970,000 9.85% 4% Non-f
Slide 40: 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- Very strong risk- Concentrated (Finnish banks) • “We revised the outlook on Oma Savings Bank to adjusted business stable from negative and affirmed the 'BBB+/A-2’ Business Position Weak -2 cap
Slide 41: Thank you
THANK YOU
Oma Savings Bank — Debt Investor Presentation (May 2022) on 6ix