Profitable Finnish bank with a demonstrated ability to grow and operate efficiently

OmaSp has strongly increased its total revenues and balance sheet by offering customers a highly accessible and high-quality service in line with its strategy. As evidence of this, OmaSp's balance sheet total increased yearly by an average of 22.6% per year between 2018 and 2020, while the peer group of Finnish competitor banks (1) grew by an average of 9.3% per year over the same period (2). OmaSp's growth has been mainly organic, but successful acquisitions have also had a positive effect on growth. A key component of profitability is an efficient operating model and organization that have enabled a low cost-benefit ratio. In 2020, OmaSp's cost/income ratio averaged 54 %, compared to 72% in the peer  group over the same period. (2) Operational efficiency, a focus on solvent customer segments that value good service and credit losses that have remained low through successful risk management have also contributed to good profitability. OmaSp's return on total capital (ROA) averaged 0.8% in 2020. OmaSp's return on equity (ROE) averaged 9.1% in 2020.

1) The control group includes Aktia, Oma Savings Bank, POP-Pankki, S-Pankki, Säästöpankkiliitto and the Bank of Åland 2) Source: OmaSp (OmaSp figures), Financial Supervision: The figures for 2020 are from the companies' own materials, the Financial Supervisory Authority and OmaSp.

OmaSp operates in Finland, which is a stable and favourable operating environment

Finland's gross domestic product is projected to grow by 2.2% in 2021 and 2.5% in 2022 driven by private consumption. The forecast is accompanied by exceptionally high uncertainty and alternative scenarios suggest GDP growth in 2021 could reach a level of 3.2 per cent or may shrink by 4.7 per cent depending on how the epidemic situation in Finland progresses and how it is managed. (1

According to Statistics Finland’s labour survey, there were 74,000 fewer employed persons and 48,000 more unemployed in December than in the previous year’s comparative period. In December 2020, the employment rate trend was 71.8% and the average unemployment rate was 7.8% (6.0%). (2

Consumer confidence in January 2021 was the strongest in more than two years. The consumer confidence indicator (CCI) was -0.9 (-4.6) in January 2021, while it still was -4.6 in December 2020. The confidence indicator consists of four factors, which are an estimate of the own economy now, expectations of their own economy and the Finnish economy in 12 months, and the intentions of spending on durable goods in the next 12 months. In December, all four components strengthened compared to the previous month. The biggest change was in expectations of Finland's economic development. (3

1) Bank of Finland, Finland's economy is recovering from a pandemic, but is growing slowly after that. Euro & Economy 6/2020. Published on 15 December 2020.2) Statistics Finland, Employment deteriorated markedly in December. Published on 28 January 2021.3) Statistics Finland, Consumer confidence in January is the strongest in more than two years. Published on 27 January 2021.