Greetings from CEO

The year 2024 has been very exceptional in the history of OmaSp. Both main sources of income developed in line with expectations and the year ended with a good quarter. Significant investments in the development of risk management processes and the implementation of an extensive action plan continuet. The acquisition of Handelsbanken AB's Finnish SME business and the expansion of the distribution network strengthened OmaSp's market position towards the end of the year and provide a good starting point for the year beginning.

The comparable profit before taxes was EUR 27.9 million for the fourth quarter and the comparable return on equity was 15.6 percent. As expected, changes in market interest rates were reflected in the development of net interest income, and in the last quarter net interest income fell by 11 percent from the comparison period. The net interest income increased by 8 percent for the whole year. Our customers value our personal and easily accessible service model. This is reflected in the development of the number of customers, which remained despite an exceptional year at a good level. With Handelsbanken's business acquisition, OmaSp gained approximately 10,000 new customers in the autumn, and in addition to this, approximately 1,000 new customer relationships were organically created every month. In particular, fee and commission income and expenses net were increased by card and payment fees, which increased by 16 percent from the previous year. Fee and commission income and expenses net increased by 8 percent in the last quarter and by 7 percent for the full year. At the end of the year, the business focus has been especially on the reception of customers who have transferred from Handelsbanken and the start of operations in three new branches. With the expanded distribution network OmaSp now has excellent coverage in all of Finland's key growth and provincial centers.

OmaSp's loan portfolio and deposit base were boosted by volumes transferred from Handelsbanken. The portfolio of housing loans grew by 5 percent, corporate loan portfolio by 8 percent and deposits by 6 percent from a year ago. 

Accumulation of impairment losses on financial assets was significantly affected by non-compliance with the guidelines and related additional allowances. In 2024, credit losses amounted to approximately EUR 84 million, of which approximately EUR 64 million were related to non-compliance with the guidelines. In the last quarter, the credit loss level remained at last year's level.

The Company has continued to make significant investments in risk management and the implementation of the action plan launched in the summer. As a result, the cost level remained high in the last quarter of the year. An additional EUR 5.4 million was invested in risk management processes in October– December and comparable costs increased by 44 percent during the fourth quarter. Expenses were also increased by the increased number of personnel. During the financial year, the Financial Supervisory Authority (FIN-FSA) carried out audits of the Company. Based on the audits, the observations raised by the supervisor and the development targets already identified by the Company itself support each other. The measures to develop the processes are proceeding well on schedule and the goal is to complete the development measures planned during 2024 in the first half of 2025. The comparable cost/income ratio remains at a good level despite significant investments and was 47.7 percent in the last quarter. 

Customer and personnel satisfaction at the center of everything 

OmaSp's competitive advantage has been and will continue to be built on excellent customer experience. According to research, customer and personnel satisfaction have remained at an excellent level as in previous years, despite the exceptional year. Our personnel are our most essential resource, so committed and motivated personnel play a vitally important role for OmaSp's future success. The renewed board of the Company started its work in December, and we have got five experienced board experts to strengthen the bank's operations. In addition, the Company's new CEO, Karri Alameri, will start his work in April at the latest.

OmaSp's financial position is stable, and the Company's solvency and liquidity position is at a good level. The total capital (TC) ratio was 15.6 percent at the end of the year and the accumulation of equity is nearly EUR 580 million. 

After the changes implemented in 2024, we will now be able to focus on our core business and strengthen the customer experience of our existing and new customers. OmaSp's ambition is to enable and solve the needs of households and small and medium-sized enterprises in all areas of the bank's operations. In February, the history of OmaSp stretches back 150 years. From these strong starting points, we will continue into 2025 with confidence. 

Warm thanks to all customers and owners, and especially to OmaSp's personnel for 2024!

Sarianna Liiri
CEO