Oma Säästöpankki (OMASP) Q2 2024 earnings summary

Executive summary

• Net interest income rose 28.5% year-over-year to €109.8 million for Jan–Jun 2024, with total operating income up 24.3% to €141.6 million.

• Profit before taxes fell 53% year-over-year to €29.2 million, mainly due to €62.5 million in impairment losses on financial assets.

• Significant management changes: new Chairman and interim CEO appointed following departures in May and June.

• Extensive action plan launched to address non-compliance in lending guidelines, with external review confirming issues are limited to specific customer entities.

Financial highlights

• Net interest income for Q2 2024 increased 6.5% year-over-year to €52.4 million.

• Fee and commission income (net) grew 10.7% year-over-year to €25.5 million for Jan–Jun 2024.

• Total operating expenses rose 4.5% year-over-year to €49.4 million; comparable cost/income ratio improved to 33.5% from 40.0%.

• EPS for Jan–Jun 2024 was €0.70, down from €1.57 year-over-year.

• Return on equity (ROE) dropped to 8.7% from 23.7% year-over-year.

Outlook and guidance

• Updated 2024 guidance: comparable profit before taxes expected at €80–100 million, down from €143.6 million in 2023.

• Profitability expected to improve in H2 2024 with the acquisition of Handelsbanken’s SME business.

• Continued investments in risk management and quality processes planned.