Oma Säästöpankki (OMASP) Q4 2023 earnings summary

Executive summary

• FY2023 profit before taxes rose 99% to €138.0m; comparable PBT increased 89% to €143.6m, supported by higher market rates and Liedon Savings Bank’s acquired business.

• Net interest income grew 87.8% to €197.0m, while comparable ROE reached 25.3% and comparable cost/income improved to 35.1%.

• Proposed 2023 dividend totals €1.00 per share, including a €0.33 additional dividend following the record result.

Financial highlights

• FY2023 net profit was €110.1m vs €55.4m; revenue represented by total operating income was €247.1m, up 71.1% YoY.

• Q4 PBT rose 84.3% to €35.5m; comparable PBT increased 86.9% to €38.8m.

• FY comparable operating income was €248.9m, up 66.3%; comparable operating expenses were €86.9m, up 21.1%.

• FY net interest income was €197.0m; net fee and commission income rose 20.4% to €47.4m.

• Net impairment losses were €17.1m for FY and €7.3m in Q4, vs €1.7m and €1.3m, respectively, in comparative periods.

Outlook and guidance

• FY2024 comparable PBT is expected to remain at the FY2023 level of €143.6m.

• Profitable growth is expected to continue through investment in customer experience and the service network; Handelsbanken’s Finnish SME business is expected to improve profitability from H2 2024.

• Handelsbanken transaction expected to close in H2 2024; transferring business includes ~€1.2bn deposits, ~€460m lending and ~14,000 SME customers, based on 31 March 2023 figures.