Oma Säästöpankki Oyj, Stock exchange release, November 5, 2018, 8 a.m.
Interim Report January-September 2018
This release is a summary of Oma Säästöpankki Oyj’s January-September 2018 Interim Report, which can be read from the pdf file attached to this stock exchange release and on the company’s web pages www.omasp.fi
Oma Säästöpankki Oyj Interim Report January 1- September 30, 2018: The bank’s strong performance continues as expected.
CEO Pasi Sydänlammi:
“This is the first time we are publishing the bank’s Q3 results. The bank’s strong performance continues as expected. We have experienced very rapid growth compared to the market. In the beginning of the year, profit before taxes showed an increase compared to the same time the previous year, amounting to 20.5 million euros. Our main sources of income, net interest income, fee and commission income, continued to show strong growth. Our net interest income grew by 25% to reach 35.9 million euros. Fee and commission income grew by 20.9% to 19.4 million euros. Demand for credit remained steady, and payment card and payment transaction fees showed an increase. Operating expenses increased by 15.7%, to 33.8 million euros. As expected, the bank’s investments were reflected in the increase in personnel, marketing, and IT development expenses. The balance sheet total was 2.84 billion euros, showing an increase of 550 million euros (24%) compared to the end of September 2017.”
Key events in July-September 2018:
- At its meeting on August 9, 2018, Oma Säästöpankki’s Board of Directors decided to review and evaluate the potential listing of the company’s shares on the Helsinki Stock Exchange.
- In August, the bank announced the opening of a new branch office in Oulu by the end of 2018.
- On August 31, 2018, the bank acquired a 25% share of PP-Laskenta Oy from Samlink Ab. PP-Laskenta Oy provides the bank with accounting, payroll and supervisory reporting services.
- Oma Säästöpankki rebranded the bank’s payment cards. The new payment cards were introduced in August.
- In July, the bank announced plans to expand the operations of its branch office in Jyväskylä together with a move to new premises in the city centre. These plans are expected to take place in summer 2019.
- In September, the bank signed an agreement on the acquisition of new premises to be completed in Seinäjoki 2019. The contract price was in total 2.3 million euros.
Financial statement January-September 2018:
- The comparable period for income items is January 1–September 30, 2017. The comparable period for the balance sheet and solvency period is December 31, 2017.
- Oma Säästöpankki Group’s profit before taxes amounted to 20.5 million euros (19.9).
- Net interest income grew by 25.0% to 35.9 million euros (28.7).
- Commission income (net) increased by 20.9 % to 19.4 million euros (16.0) compared to the same time the previous year.
- Operating income totalled 57.8 million euros (50.0), showing a growth of 15.7%.
- Operating expenses totalled 33.8 million euros (29.2). Expenses grew by 15.7% from the comparable period last year.
- The Group’s balance sheet total was 2,841.9 million euros (2,726.6). The increase in the balance sheet was 4.2%.
- The Group’s total lending at the end of the review period was 2 415.6 million euros (2 137.9), which shows an increase of 277.8 million euros (13.0%).
- The deposits at the end of the review period were 1 728.9 million euros (1 639.3) Deposits grew by 89.6 million euros, or 5.5%, during the review period.
- Other borrowings amounted to 819.3 million euros (801.0) at the end of the period. The amount of other borrowings increased by 18.4 million euros, or 2.3%.
The calculation principles of the key figures are described on page 53-54 of the interim report.
* Implementation of the Financial Instruments standard on January 1, 2018. The figures from the comparable year have not been recalculated.
** Solvency key ratio for the period of 1-9/2018–6/2018, calculated at group level. The data from previous years have been calculated at the parent company level.
*** Liquidity coverage ratio, calculated at the parent company level.
- Oma Säästöpankki’s Board of Directors has confirmed the following financial goals in September 2018:
- Growth: 10–15% annual growth in total operating income under the current market conditions
- Profitability: Expense-to-income ratio under 55%
- Return on equity (ROE): Long-term return on equity (ROE) over 10%
- Solvency: Core capital ratio (CET1) at least 16%
Outlook for the accounting period of 2018:
According to the bank’s estimates, the profit before taxes excluding net income from financial assets and liabilities will increase in the accounting period of 2018 compared to the previous year. In 2017, net income from financial assets and liabilities were highlighted in Oma Säästöpankki’s profit, affecting the result by approximately 10.8 million euros. In 2017, profit before taxes excluding net income from financial assets and liabilities was 19.6 million euros.
Helsinki, November 5, 2018
OMA SÄÄSTÖPANKKI OYJ
Board of Directors
Oma Säästöpankki Oyj
CEO, Pasi Sydänlammi, tel. +358 45 6575506
Chief Financial and Administrative Officer, Sarianna Liiri, tel. +358 40 835 6712
Chief Communications Officer, Minna Sillanpää, tel +358 50 66592
Nasdaq Helsinki Ltd
Read the Interim Report January 1- September 30