OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 11 MAY 2020 AT 8.57 A.M. EET, INTERIM REPORT Q1
Oma Savings Bank Plc’s Interim Report 1.1.-31.3.2020: Bank’s business showed strong growth during Q1 – preparations made for changes in operating environment
This release is a summary of Oma Savings Bank’s (OmaSp) January-March 2020 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
CEO Pasi Sydänlammi:
”Oma Savings Bank’s first quarter proceeded in line with expectations up until the exceptional circumstances caused by the coronavirus. With regard to the first quarter, we are extremely satisfied with our key sources of income, i.e. the excellent development of net interest income and the ‘Fee and commission income and expenses (net)’ item. Net interest income showed strong growth, almost 18% compared to the previous year. Our ‘Fee and commission income and expenses (net)’ item grew by more than 8% and 19% when considering the impact of the clarification of recognition principles. Fee and commission expenses and personnel expenses are clearly lower than in the previous year. Fee and commission expenses fell by more than 27% and personnel expenses by 10%.
Impairment losses on financial assets show our preparations for the changes in the operating environment caused by the coronavirus. We recorded some EUR 8.5 million in expected credit losses in the first quarter. A major part of this, some EUR 6.7 million, resulted from the preparations for the corona crisis based on the management’s estimates and the growth in the credit risks of individual customers.
In Q1, we benefitted from the good market situation and divested part of our investment portfolio. We recorded some EUR 8 million in profit. The corona crisis has had a comprehensive impact on the market value of financial assets and, as a result, we recognised some EUR –1.9 million in changes in fair value.
Profit before taxes for January–March was at a good level despite the exceptional conditions, ending up at EUR 7.2 million. The comparable profit before taxes was EUR 2.4 million. The result was affected significantly by credit loss allowance based on management judgement and changes in fair value, altogether EUR 8.7 million. The bank’s balance sheet total grew in the first quarter by more than 3%, coming to around EUR 3.5 billion.
Prompt reaction to a rapidly changing market situation
We have closely monitored the development of the corona epidemic and made the necessary changes to our operating models. The precautionary measures secure the personnel’s and customers’ well-being and bolster our financial position. At the start of April, we issued a EUR 250 million bond with which we will ensure our ability to respond to…