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 by an average of 11.94% per year between 2017 and 2019, while the control group of Finnish competitor banks (1) grew by an average of 3.42% 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 2019, OmaSp's cost-income ratio averaged 54.4%, compared to 69.3% in the control 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 0.9% in 2019, compared to 0.5% in the control group. (2) OmaSp's return on equity (ROE) averaged 9.0% in 2019, compared to 7.4% in the control group. (2)

1) The control group includes Aktia, Oma Säästöpankki, POP-Pankki, S-Pankki, Säästöpankkiliitto and the Bank of Åland 2) Source: OmaSp (OmaSp figures), Financial Supervision: Statistics (control group figures excluding OmaSp figures) (applied 31.3.20) The figures for 2019 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 (GDP) has been growing steadily since 2015 and in 2019 it was 1.0%. (1) GDP growth is projected to continue at an average annual rate of 1.4% between 2020 and 2022. (2) According to Statistics Finland's Labor Force Survey, there were 17,000 more employed persons and 18,000 more unemployed persons in December 2019 than in the corresponding period of the previous year. In December 2019, the employment rate was 73.0 (72.1)% and the average unemployment rate was 6.0 (5.4)%. (3) According to the company, the business environment in Finland is still stable with regard to household indebtedness and house prices. According to Statistics Finland's monitoring, the prices of new housing units rose by an average of 1.9 per cent throughout the country in 2019. In the Helsinki metropolitan area, growth was about 3%, while the rest of the country averaged just under 1%. Compared to 2015, the prices of new properties have increased by about 10% throughout the country. (4) In December 2019, total loans to households had increased by 3.0% over the previous 12 months, of which the mortgage portfolio increased by 2.7%. Corporate loans increased by 7.3% over the same period. Household deposits increased by 6.6% over a 12-month period. (5)

1) Statistics Finland, GDP grew 1.0 percent in 2019. Published 28.2.2020. 2) IMF, DataMapper, 3.2.2020. 3) Statistics Finland, Employment increased year-on-year. Published 24.1.2020 4) Compared to 2015, the prices of new housing units have increased the most in Espoo, the least in Vantaa. Published 1/31/2020 5) Bank of Finland, MFI balance sheet (loans and deposits) and interest rates. Published 1/31/2020