Greetings from CEO

“The year 2026 opened in an operating environment characterised by geopolitical tension, moderate economic growth and uncertainty in the financial markets. Relatively low market interest rates are continuing to put pressure on banks’ net interest income, and investors have become more cautious. For OmaSp, the first quarter proceeded as planned despite the challenges in the business environment. As a result of our determined work, costs have continued to decline, while fee and commission income grew as planned. Net interest income decreased as expected.

Fee and commission income broadly increasing

Comparable profit before tax for Q1 amounted to EUR 13.7 million (EUR 4.6 million). Comparable earnings per share were EUR 0.33, whereas it had been EUR 0.11 a year earlier. Comparable return on equity was 7.0% (2.5%), and the comparable cost-to-income ratio was 57.5% (54.4%).

Comparable operating income totalled EUR 50.1 million (EUR 59.5 million), representing a 15.8% decrease compared with the corresponding period in the previous year.

Net interest income decreased by 23.7% year on year to EUR 35.8 million (EUR 46.9 million). The decline was mainly the result of lower market interest rates and a smaller loan portfolio. The average margin on the loan portfolio remained broadly unchanged.

In line with our strategy, we increased net fee and commission income broadly by 7.4% to EUR 13.4 million (EUR 12.4 million), driven especially by the development of card and payment transaction fees as well as fund management fees.

Comparable operating expenses decreased by 11.1% to EUR 28.6 million (EUR 32.2 million). However, personnel expenses increased to EUR 11.1 million (EUR 9.9 million), a rise of 12.3% compared to the corresponding period last year. The number of employees increased, standing at 634 (620) at the end of the period.

Lending activity recovering

The volume of loans granted in January–March this year increased by 63.6% compared with the reference period, reaching EUR 221.7 million (EUR 135.5 million). During the first quarter this year, the volume of loans granted increased by 3.6% compared with the last quarter of 2025.

The mortgage portfolio contracted by 3.0% over the previous 12 months and the SME customer loan portfolio by 16.1%. This was primarily due to the exit from higher-risk customer relationships, measures related to the controlled winding-down portfolio, and subdued loan demand due to the general economic situation.

The deposit base remained stable over the previous 12 months, amounting to EUR 3.8 billion (3.8 billion) at the end of March.

Decline in impairment losses – economic environment reflected in non-performing exposures  

The level of non-performing exposures continued to reflect the weak performance of the Finnish economy, particularly the subdued development in the real estate market. The increase in non-performing exposures was concentrated among retail customers and real estate companies. The duration of the collection process has lengthened, particularly due to prolonged realisation periods for real estate collateral. However, the volume of new non-performing loans has declined.

Non-performing exposures totalled EUR 543 million (EUR 485 million) at the end of the period, corresponding to 9.3% (7.7%) of the loan portfolio. In line with the plan confirmed towards the end of 2025, we are continuing our determined efforts to reduce non-performing loans. During the current year, we will focus on enhancing early-stage collection measures, and we will continuously assess opportunities to reduce non-performing exposures through a variety of arrangements.

Impairment losses on financial assets fell during the first quarter compared with the reference period, totalling EUR 7.4 million (EUR 22.3 million). Of this, expected credit losses (ECL) amounted to EUR 7.1 million (EUR 21.2 million). In the comparison period, an update to the ECL calculation model impacted the amount by EUR 8.5 million and provisions related to the controlled winding-down portfolio by EUR 5.7 million.

Net realised credit losses decreased compared with the reference period and amounted to EUR 0.3 million (EUR 1.2 million) in the first quarter.

Implementation of strategy of growth progressing step by step

In January 2026, the Board of Directors approved the company’s updated strategy and financial targets for 2026–2029. Our objectives are to grow responsibly and profitably, to diversify our income base, and to strengthen personal service as a key competitive advantage. We aim to achieve a position as a nationally recognised and established bank that combines the highly personal service of a small bank with the reliability of a solid bank, supported by the efficiencies that a unified operating model allows. Our growth will be based on increasingly diversified revenue generation.

The company aims to achieve a comparable return on equity of over 14% in the medium term (3–5 years). OmaSp aims to pay a stable and growing dividend of at least 30% of net profit.

Strong balance sheet supporting profitable growth

OmaSp’s capital adequacy continued to strengthen. At the end of March, the total capital ratio stood at 19.4% (19.3%). Total equity amounted to EUR 628.7 million (EUR 618.8 million).

With its strong balance sheet, clear strategy and customer-centric operating model, OmaSp is well positioned to support its customers and promote sustainable and profitable growth. We are continuing to build an even stronger bank by improving efficiency and enhancing the customer experience across all our service channels.

The strategy of growth confirmed at the beginning of the year provides a clear direction for the next four years. Despite the uncertainty in our operating environment, we will continue our systematic efforts to implement our strategy and create value for our shareholders.

I would like to warmly thank our employees for their dedicated work for the benefit of the company and our customers for continuing to place their trust in us.”

Karri Alameri
CEO