Oma Savings Bank Plc · OMXHEX:OMASP
Oma Savings Bank — Debt Investor Presentation (March 2023)
32 slides from Oma Savings Bank's debt investor presentation, March 2023
Slide 1: Oma Savings Bank Credit Investor Presentation Q1 2023
Oma Savings Bank Credit Investor Presentation Q1 2023 1
Slide 2: Content overview
Content overview 1. Oma Savings Bank Overview 3-6 2. Key Financials 7-13 3. Cover Pool 14-18 4. Operating Environment 19-20 5. Appendix 21-29 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 47.9% in Q1 2023, considerably below • S
Slide 4: Oma Savings Bank Overview
Oma Savings Bank Overview Combination of quality growth and profitability* Strong financial profile & rating Equity 3/2023 EUR million 437 Balance sheet total 3/2023, EUR billion 7.3 Comparable profit before taxes EUR million 24.2 Comparable cost-income ratio 1-3/2023 47.9% Comparable ROE 1-3/2023 1
Slide 5: Profitable growth - From a local savings bank to a nationwide bank
Profitable growth - From a local savings bank to a nationwide bank Liedon Säästöpankki Expansion in Espoo and Tampere 7.299 Balance sheet after Liedon Savings Bank acquisition, EUR billion Eurajoen S-Pankki’s Säästöpankki Balance sheet total, EUR billion SME, agriculture and forestry business Expans
Slide 6: Liedon Savings Bank acquisition successfully completed
Liedon Savings Bank acquisition successfully completed OmaMobiili mobile application OmaSp web meetings • The acquisition of Liedon Savings Bank business have been OmaVahvistus successfully completed on the 1st of March. mobile application • The acquisition will have a significant positive impact on
Slide 7: 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% 51.9% 47.9% ratio 7.5 - Source: OmaSp. Audited full year 2020-2022 figures. Non-audited figures for periods ending 31 Ma
Slide 8: Financial goals, dividend policy and guidance for 2023
Financial goals, dividend policy and guidance for 2023 Board of Directors approved the following financial goals for 3-5 years: 4,3/51) 10–15% annual growth in total Long-term return on equity (ROE) Return on Growth operating income under the current over 10% equity market conditions Capital Core ca
Slide 9: Customer and lending base
Customer and lending base Total loan portfolio by customer groups Non-Private customer loan portfolio distribution 22% 22% Real estate 49% Agriculture, Forestry and Fishery Corporates Construction Housing cooperative 3% Whole- and retail sales Agriculture 12% 7% Industry Other Private customers 6% O
Slide 10: Asset Quality has remained at a strong level
Asset Quality has remained at a strong level Impairment losses on financial assets Asset quality at a strong level • Impairment losses on financial assets (net) increased compared to the comparative period and were EUR -1.6 million • In the comparison period, the amount of ECL decreased by a total o
Slide 11: OmaSp Capital Position
OmaSp Capital Position 25,0 % • Capital position is steady. The total capital (TC) ratio of 19,3 % Oma Savings Bank increased and was 15.5% in March 20,0 % 2023. 18,4 % 17,3 % 16,2 % 15,6 % 15,5 % 16,8 % 14,9 % 15,9 % 15,5 % • The current TC-% ratio requirement is 12.01%, clearly 15,0 % 13,3 % 13,6
Slide 12: Oma Savings Bank's funding base
Oma Savings Bank’s funding base Funding highlights as per 31 March 2023 Funding structure & maturity profile 2% 2% 3% 6% • The bank’s deposit base is stable and will remain as the main source Deposits of funding (58%). Deposit base EUR 3.93 billion as of 31.3.2023 Covered bonds Senior bonds • Covere
Slide 13: Investment portfolio and liquidity management
Investment portfolio and liquidity management Liquidity and portfolio as per 31 March 2023 Liquidity and fixed income portfolio structure • The bank’s investment portfolio amounted to EUR 558.1 million LCR NSFR • The portfolio consists of liquid assets and other investments 180% 160% • Allocation of
Slide 14: 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 15: OmaSp cover pool characteristics
OmaSp cover pool characteristics Key characteristics of the cover pool 31 March Size of the pool EUR 2 470,10 million (nominal) Collateral type 100% Finnish residential mortgages Number of loans 33,387 • S&P has assigned AAA ratings to the covered bonds of Oma Savings Bank. The outlook is stable Ave
Slide 16: Cover pool structure and outstanding covered bonds
Cover pool structure and outstanding covered bonds Customer scoring • Regular and up to date credit scoring for Collateral type customer credit class • The weakest classes C and D are not cover pool applicable 10.4% Single-family housing Customer Loan • No arrears more than 30 days • Amortizing loan
Slide 17: Details of the cover pool
Details of the cover pool Loan Maturity Distribution Loan seasoning 61,20% 25,66% 21,63% 20,89% 18,01% 13,81% 4,42% 5,52% 5,15% 5,09% 4,93% 4,55% 4,64% 4,49% 0-12 M 12-24 M 24-36 M 36-60 M > 60 M 2023 2024 2025 2026 2027 2028 2029 2030 2031- Loan size buckets €k LTV Distribution 20,46 19,88 19,09 17
Slide 18: Geographic breakdown of cover pool
Geographic breakdown of cover pool Volume EUR Share in the Region Major city million pool Southern Seinäjoki 525 21.24% Ostrobothnia • Finland’s three (3) biggest growth areas Pirkanmaa Tampere 363 14.69% forecasted by the end of 2040*: • Helsinki region Uusimaa Helsinki 305 12.34% • Tampere region
Slide 19: The Finnish economy to recover in 2024, government indebtedness relatively low
The Finnish economy to recover in 2024, government indebtedness relatively low Macroeconomic outlook Government debt to GDP as per Q4 2022 120% 2019 2020 2021 2022 2023F 2024F 100% Euro area average 91.6% Real GDP growth (%) 1.1 -2.2 3.0 2.1 -0.2 0.9 80% CPI (YoY%) 1.1 0.4 2.1 7.2 4.6 1.6 60% 40% Un
Slide 20: Finnish household indebtedness relatively low in a stable housing market
Finnish household indebtedness relatively low in a stable housing market Household debt as % of net disposable income House price index, 2015 = 100 300 160 Household debt as % of net The housing market in disposable income – Finland Finland much more stable lowest in Northern Europe vs. the other No
Slide 21: Appendix
Appendix 21-29 omadp
Slide 22: 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 • Differentiation from the competitors • 2. Proactive customer • Excellent customer experiences and superior local knowled
Slide 23: 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 24: 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 the Personal customer service is our key to cus
Slide 25: 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 45 satisfaction contact person 200,000 branches throughout 4.3 4.7 customers Finland on a scale of 1–5 on a scale of 1–5 Carbon footprint of Overall employee A substantial part of We r
Slide 26: Key figures
Key figures Total operating income Equity / Total assets Profit before taxes 50.7 EUR mill. 6.0% 23.3 EUR mill. Accounting period 1-3/2023 Accounting period 1-3/2023 Accounting period 1-3/2023 Comparable Cost-income ratio Balance sheet total Number of employees 47.9 % 7 299 EUR mill. 375 Accounting
Slide 27: Oma Savings Bank Group's key financials
Oma Savings Bank Group’s key financials Source: OmaSp. Non-audited figures for period ending 31 March 2023 1) The calculation principles of the key figures are presented in note 18 of the interim report. 27 Comparable profit is presented in the income statement.
Slide 28: Income statement
Source: OmaSp. Audited figures for period ending 31 March 2023 28
Slide 29: Balance sheet
Balance sheet Source: OmaSp. Non-audited figures for period ending 31 March 2023 29
Slide 30: 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 31: Ownership structure (as of 31 March 2023)
Ownership structure (as of 31 March 2023) Ownership by type Shareholder Shares % 0% 3% Public sector Etelä-Karjalan Säästöpankkisäätiö 8,989,084 27.01% 19% Financial and insurance Parkanon Säästöpankkisäätiö 3,290,000 9.89% corporations Liedon Säästöpankkisäätiö 3,125,049 9.39% Households 12% Töysän
Slide 32: Thank you
THANK YOU
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