Core Idea - S&P Global Ratings affirmed Oma Savings Bank Plc's credit ratings at BBB/A-2 but changed the outlook to negative due to an increase in nonperforming loans [1][2] Company Overview - Oma Savings Bank Plc is a solvent and profitable Finnish bank with approximately 600 professionals serving over 200,000 private and corporate customers through 48 branch offices and digital channels [3] - The bank focuses on retail banking operations and offers a wide range of banking services, including credit, investment, and loan insurance products, as well as mortgage banking [3] Customer Service Philosophy - The company aims to provide personal service and maintain a local presence for its customers through both digital and traditional channels [4] - OmaSp emphasizes premium customer experience through personal service and easy accessibility, with a commitment to customer-oriented development of operations and services [4] - A significant portion of the personnel owns shares in OmaSp, indicating employee investment in the company's success [4]

Financial Data and Key Metrics Changes - Net income for Q2 2025 amounted to ARS 173 billion, a 70% decrease from the same quarter last year, with a return on average assets of 1.9% and a return on average shareholders' equity of 9.5% [10][11][18] - The primary surplus reached 0.4% of GDP, while the overall surplus was 0.2% of GDP, with primary revenues increasing by 37.7% year over year [4][5] Business Line Data and Key Metrics Changes - Banco Galicia's profits were ARS 98 billion, Naranja X contributed ARS 32 billion, Galicia Asset Management contributed ARS 27 billion, and Galicia Seguros contributed ARS 13 billion [10] - The net interest income decreased by 36% compared to the previous year, while net fee income increased by 30% [12][13] Market Data and Key Metrics Changes - Private sector deposits in pesos averaged ARS 89.1 trillion in June, increasing by 10.6% during the quarter and 69.1% year over year [7] - The exchange rate averaged ARS 11.81 per dollar in June 2025, reflecting a 23.5% devaluation year over year [6] Company Strategy and Development Direction - The company successfully completed the merger with Galicia Mas, enhancing its market share in loans and deposits by approximately 2.5% [8] - The strategy focuses on prioritizing lower-risk segments in credit granting and stabilizing asset quality post-merger [18][20] Management's Comments on Operating Environment and Future Outlook - Management anticipates a temporary margin compression in Q3 due to increased short-term interest rates and volatility, with expectations for stabilization post-elections [21][66] - The company expects to see stabilization of non-performing loans (NPLs) in consumer lending by the end of Q3 [22][49] Other Important Information - The bank's total regulatory capital ratio reached 23.7%, a decrease of 50 basis points from the previous year [18] - The coverage ratio for non-performing loans decreased to 117.9%, down from 160.3% year over year [17] Q&A Session Summary Question: Follow-up on guidance for loan growth and deposits - Management revised loan growth expectations from 50% to closer to 40% due to market volatility and demand changes [30] Question: Capital improvement and dividend policy - The increase in capital ratio is attributed to the merger, with a new capital ratio close to 24% expected post-integration [35] Question: Asset quality and NPL coverage - Management noted that the main impact on NPLs is from personal loans and credit cards, with a focus on safer segments moving forward [44][46] Question: Impact of higher funding costs on margins - Management expects a deterioration in margins for Q3 due to increased funding costs, with a potential recovery post-elections [66][68] Question: Corporate segment asset quality - The corporate segment is not experiencing significant changes, with NPLs remaining low at around 0.7% [78]