OMA SAVINGS BANK PLC STOCK EXCHANGE RELEASE, 24 JULY 2024 AT 20:15 P.M EET, INSIDE INFORMATION

Inside information: The review of Oma Savings Bank Plc's loan portfolio has been completed and the problem is limited to identified non-compliance with guidelines - will recognise a significant additional allowance

Oma Savings Bank Plc (OmaSp or the Company) announced the non-compliance with the guidelines in its lending in April. The Company’s Board of Directors initiated extensive measures as a result of serious events in the early part of the year. One of these measures has been to ensure the quality of the Company's entire credit portfolio by external, independent experts. Their study was completed today on 24 July 2024. The results confirm that the problems are limited to previously identified non-compliance with the guidelines and the rest of the quality of the credit portfolio (approximately 6 billion euro) corresponds to what was previously reported. Based on the results, the Company has reassessed the credit risk position of the relevant customer groups and will recognise a significant additional allowance based on management's judgement for the second quarter.

An extensive study carried out by external parties confirmed that the problems are limited to previously identified non-compliance with the guidelines. In other respects, the quality of OmaSp's credit portfolio corresponds to what was previously reported. The analysis also concludes that the collateral values for OmaSp's entire credit portfolio in relation to market values are conservative and the collateral assessment process is functional. In the light of more detailed information, the customer groups related to non-compliance with the guidelines announced in April, account for approximately four percent of OmaSp's six billion euro credit portfolio. Due to the change in the risk position, the Company already reconised a credit loss provision of EUR 19.5 million in identified customer groups in the first quarter. The Company will recognise an additional EUR 35.7 million of additional allowance based on management's judgement and impairment losses in the second quarter. Of this, EUR 5.7 million are credit loss write-offs and EUR 30.0 million is discretionary credit loss provision. The increase is based on specified customer groups and a more detailed assessment of credit risk based on further studies carried out by the Company's internal and external experts.

CEO Sarianna Liiri:
" I am very pleased that we were able to carry out a review of the credit portfolio in cooperation with external, independent experts within such a short timeframe. The analysis of the credit portfolio was carried out in two different expert organisations: one focused on data analysis and the other on document, credit and collateral processes. It was important to get external confirmation that the majority of our credit portfolio corresponds to what was previously reported and that the reviews did not reveal any new problems beyond those already identified. A study confirmed the result of our own internal investigation that this is an individual case where the credit risk position of customers has been concealed by forming customer groups consciously with incorrect and incomplete information. In addition, we received confirmation that the non-compliance with guidelines is limited to approximately EUR 240 million of our credit portfolio. With the additional allowance, we prepare in advance for possible impairment losses, although we still continue our work to limit credit losses.