OMA SAVINGS BANK PLC STOCK EXCHANGE RELEASE, 24 JULY 2024 AT 20:25 P.M EET, INSIDE INFORMATION

Inside information, negative profit warning: Oma Savings Bank Plc publishes preliminary information on Q2/2024 result and updates its guidance

Oma Savings Bank Plc (OmaSp or the Company) has today announced the credit stock study carried out by external experts and its results. The results confirm that the problems are limited to previously identified non-compliance with the guidelines. The Company will recognise a significant additional allowance based on management's judgement for the second quarter. OmaSp publishes preliminary data on the preliminary result for the second quarter of 2024 and updates its guidance at the same time in light of the latest data.

Based on unaudited and preliminary data, OmaSp's second quarter net interest income will increase by seven percent and fee and commission income and expenses by one percent compared to the comparison period. Total operating expenses increased by eight percent compared to the comparison period. Impairment losses on financial assets total approximately EUR 39.4 million in the second quarter and approximately EUR 62.5 million for the whole early part of the year. Comparable profit before taxes and without additional allowances based on management’s judgement is approximately EUR 80.6 million for the whole early part of the year. The comparable profit before taxes is approximately EUR 5.5 million for the second quarter and EUR 31.1 million for the whole early part of the year.

New outlook and guidance (updated 24 July 2024)
The profitable development of the Company's business continues, supported by the investments made in the customer experience and service network. The Company will continue to invest extensively in the development of risk management and quality processes in the second half of 2024. The SME customer business to be acquired from Handelsbanken will improve the Company's profitability from the second half of 2024 onwards.

Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2024. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management’s insight into the Group’s business development.

We estimate the Group's comparable profit before taxes to be EUR 80–100 million for the financial year 2024 (the comparable profit before taxes was EUR 143.6 million in the financial year 2023).

Previous outlook and guidance (published 16 April 2024):
The Company's profitable growth will continue driven by investments in customer experience and service network. The SME customer business to be acquired from Handelsbanken will improve the Company’s profitability from the second half of 2024 onwards.