Oma Savings Bank Plc’s Half-Year Financial Report January-June 2025: Core business on a solid foundation – the improvement of operating models is progressing

OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 4 August 2025 AT 9.05 A.M. EET, HALF-YEAR FINANCIAL REPORT

Oma Savings Bank Plc’s Half-Year Financial Report January-June 2025: Core business on a solid foundation – the improvement of operating models is progressing 

This release is a summary of Oma Savings Bank’s (OmaSp) January-June 2025 Half-Year Financial Report, which can be read from the pdf file attached to this stock exchange release. In addition, alongside with the Half-Year Financial Report, the Company also publishes Disclosure information on capital adequacy and risk management in accordance with the Pillar III as a separate report, available as an attached pdf file. Both reports are also available on the Company’s website at www.omasp.fi.
CEO Karri Alameri: Core business on a solid foundation – the improvement of operating models is progressing 

“The first half of the year has been a period of active and goal-oriented development work within our bank. Significant measures have been taken to strengthen risk management and to improve the regulatory compliance of our operations. Concurrently, the effects of declining interest rates and economic uncertainty have been reflected in our results. Despite this, our business is stable, and our financial position is strong.

Efforts to improve risk management and internal operating models are advancing. A new action plan was launched to address observations made by the supervisor in February, with expenses of EUR 2.6 million recorded in the second quarter. This action plan will continue until the end of 2025, laying the foundation for profitable and stable operations in the future. The controlled winding down portfolio is also progressing: the approximately EUR 240 million portfolio related to non-compliance with the guidelines reported a year ago has been reduced to approximately EUR 200 million through various arrangements, and work continues. The risk management action plan (the “Noste”) was completed in March, and its effects are already visible in our practices.

The comparable profit before taxes for the second quarter was EUR 19.0 (5.5) million, in line with our expectations. The result was still weighed down by the decline in net interest income and the increase in operating expenses. The comparable cost/income ratio was 52.1 (32.9) percent in the second quarter.

Comparable operating expenses increased by 38.7 percent in the second quarter, amounting to EUR 30.5 (22.0) million. This increase in expenses is primarily due to the growth in the number of personnel and the expanded branch network, as well as the action plan related to the supervisor’s observations.

Net interest income decreased by 16.1 percent compared to the comparison period, amounting to EUR 44.0 (52.4) million. This decrease is attributed to market interest rates and the reduction in the loan portfolio.

Fee and commission income and expenses (net) totalled EUR 12.4 (12.7) million, which is 2.2 percent less than in the comparison period.

The mortgage loan portfolio grew by 1.2 percent from the level of a year ago. Conversely, the loan portfolio of corporate customers decreased by 7.5 percent. The deposit portfolio grew by 7.9 percent.

Challenges in the operating environment are reflected in the quality of the loan portfolio. In the second quarter, impairment losses on financial assets were EUR -9.1 (-39.4) million, mainly due to increased payment difficulties caused by the general economic situation, especially in the SME sector.

Our goal is profitable growth and satisfied customers

The takeover of Handelsbanken’s customers has been completed, and we are focusing even more on supporting our customers’ daily lives. Oma Savings Bank’s nationwide branch network serves private and corporate customers in Finland’s key growth and regional centres.

Customer satisfaction has remained at a high level, and we are committed to developing expert customer service. Our goal is to build profitable growth with our current strengths – a customer-oriented service model, efficient processes, and responsible management.

The commitment of our personnel deserves special recognition, and I extend my gratitude to the entire staff for their excellent performance. The past period has once again demonstrated the dedication, skill, and cooperation within our organisation.

Our bank’s financial position is strong. The total capital (TC) further strengthened in the second quarter, reaching 18.7 (15.6) percent at the end of June. The accumulated equity was EUR 591 (576) million.

I look to the future with confidence. We are focused on improving efficiency, enhancing the customer experience, and restoring trust through concrete actions. Development work continues persistently, and every action brings us closer to a result-driven and sustainable future.”