Oma Säästöpankki (OMASP) Q3 2024 earnings summary

Executive summary

• Net interest income grew 15.7% year-over-year to EUR 162.2 million for Jan–Sep 2024, but declined 4.2% in Q3 compared to last year.

• Profit before taxes for Jan–Sep was EUR 52.0 million, down 49% year-over-year; Q3 profit before taxes was EUR 22.8 million, down 44%.

• Acquisition of Handelsbanken's SME business in Finland completed in September, adding EUR 440 million in deposits and EUR 500 million in loans.

• Significant investments in risk management and quality processes continued, impacting costs.

• Karri Alameri appointed as new CEO, starting by April 2025.

Financial highlights

• Total operating income for Jan–Sep rose 14.3% year-over-year to EUR 205.7 million; Q3 operating income was EUR 64.1 million, down 2.9%.

• Operating expenses for Jan–Sep increased 14.9% to EUR 77.1 million; Q3 expenses rose 39.7% to EUR 27.7 million.

• Impairment losses on financial assets surged to EUR -75.8 million for Jan–Sep, mainly due to discretionary allowances related to non-compliance with lending guidelines.

• Comparable profit before taxes for Jan–Sep was EUR 58.7 million, down 44%; Q3 comparable profit before taxes was EUR 27.6 million, down 34%.

• Earnings per share for Jan–Sep was EUR 1.26, down 51% year-over-year.

Outlook and guidance

• 2024 comparable profit before taxes is estimated at EUR 80–100 million, revised down from EUR 143.6 million in 2023.

• Profitability expected to improve in H2 2024 due to the acquired SME business.

• Continued investments in risk management and quality processes planned for the remainder of 2024.