Oma Savings Bank Plc’s Financial Statements Release 1 January – 31 December 2025: Commission income increasing, cost growth halted – Q4 comparable profit before taxes EUR 17.2 million

Core Viewpoint - Oma Savings Bank Plc reported a decline in profits for the year 2025, with significant changes in risk management and operational processes, while aiming for stable growth despite a challenging economic environment [2][15]. Financial Performance - The comparable profit before taxes for Q4 2025 was EUR 17.2 million, down from EUR 27.9 million in Q4 2024, reflecting a 39% decrease [3][20]. - For the full year 2025, the comparable profit before taxes was EUR 56.9 million, a decline of 34% from EUR 86.7 million in 2024 [17][23]. - Net interest income fell by 26.3% in Q4 2025 to EUR 37.5 million, and decreased by 20.9% for the full year [5][18]. Cost Management - The cost-to-income ratio for Q4 2025 was 63.9%, up from 52.9% in Q4 2024, indicating increased operational costs [19][20]. - Comparable operating expenses decreased by 5.7% in Q4 2025, totaling EUR 30.5 million, but personnel expenses rose by 16.8% [4][19]. - Total operating expenses for the year increased by 10.9%, with personnel expenses rising by 28.5% [19]. Loan and Deposit Portfolio - The mortgage loan portfolio decreased by 3.2% over the past 12 months, while the SME customer loan portfolio fell by 19.9% [6][17]. - The deposit portfolio also saw a decline of 3.0% over the past year, primarily due to changes in deposits from individual SME customers [7][17]. Impairment and Risk Management - Impairment losses on financial assets decreased by 26.2% in Q4 2025, amounting to EUR -5.6 million, and total impairment losses for the year were EUR -47.1 million [8][19]. - The controlled winding down portfolio related to non-compliance with guidelines decreased from EUR 240 million to EUR 180 million, representing 3.2% of the total loan portfolio by year-end [9][19]. Customer and Employee Satisfaction - Customer satisfaction improved, with the Net Promoter Score (NPS) rising to 40 from 37 in the previous year [10]. - Employee satisfaction was reported at 4.15 out of 5 in the annual survey conducted at the end of 2025 [12]. Capital Position - The total capital ratio strengthened to 19.3% at year-end, up from 15.6% in 2024, indicating a solid capital position [13][20]. - Common Equity Tier 1 (CET1) capital ratio also improved to 18.3% from 14.4% [20]. Strategic Outlook - The company aims to be recognized as a reliable bank combining personal service with operational efficiency, focusing on expanding fee and commission-based business [14]. - For 2026, the company expects a slight decline in comparable profit before taxes, stable cost development, and lower impairment losses compared to 2025 [15][21][23].