CORRECTION: Oma Savings Bank Plc’s Interim Report 1.1.-31.3.2025: High costs and declining market interest rates weighed on the result, work to strengthen OmaSp continues

Core Viewpoint - Oma Savings Bank Plc reported a challenging first quarter for 2025, with high costs and declining market interest rates negatively impacting financial results. The bank is focused on strengthening its operations and customer relationships moving forward [3][4][5]. Financial Performance - The comparable profit before taxes for Q1 2025 was EUR 4.6 million, a significant decrease from EUR 25.6 million in the same period last year [4][12]. - The cost/income ratio for the quarter was 54.4%, compared to 34.1% in the previous year, indicating increased operational costs [12][13]. - Net interest income fell by 18.3% year-over-year to EUR 46.9 million, primarily due to lower market interest rates [6][12]. - Total operating income decreased by 18.9% to EUR 60.1 million, while total operating expenses increased by 31.9% to EUR 34.2 million [12][13]. Cost Structure - The rise in costs is largely attributed to the implementation of the risk management action plan (Noste), which incurred total investments of EUR 11.6 million [5][12]. - Impairment losses on financial assets totaled EUR -22.3 million, with one-third related to updates in the expected credit loss (ECL) calculation model [8][12]. Customer and Market Position - The mortgage loan portfolio grew by 3.0%, the corporate loan portfolio by 0.4%, and the deposit base by 2.7% compared to the previous year [7][12]. - Customer satisfaction remains high, with the bank gaining 10,000 new customers following the acquisition of Handelsbanken [10][11]. Outlook and Guidance - The bank maintains its earnings guidance for 2025, expecting comparable profit before taxes to be between EUR 65 million and EUR 80 million, likely below the midpoint of this range [14][17]. - The ongoing economic uncertainty and declining market interest rates are expected to continue affecting the bank's performance [15][17].