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].

Core Insights - Allica Bank's lending to established SMEs in Britain contributed £5.8 billion ($7.6 billion) to GDP in 2024, with £2.2 billion direct, £1.8 billion indirect, and £1.8 billion induced contributions [1] - The bank's lending generated £1.4 billion in tax revenues and supported over 84,000 jobs, equating to one job for every 440 jobs in the country [1] Lending Growth and Impact - Since its inception five years ago, Allica Bank has issued over £3.5 billion in loans to SMEs, with more than £1.5 billion provided last year alone [2] - The bank's lending has supported nearly 10,000 jobs in the North West, 8,900 in the West Midlands, and 7,700 in the East Midlands [2] Employment and Regional Impact - The highest employment share impact from Allica Bank's lending was observed in Wales and the North East [3] - The bank's strategy combines technology with a dedicated relationship manager team, which is expected to double in size within the year [3] Strategic Goals and Market Penetration - Allica Bank aims to capture 10% of the established SME finance market by the end of 2028, facilitating an initial £1 billion in working capital finance for SMEs [4] - The CEO emphasized the importance of established SMEs as the backbone of the UK economy and the need for challenger banks to better serve them [4] Financial Performance - Allica Bank reported a 55.2% increase in profit after tax, reaching £29.8 million ($39.54 million) in 2024, compared to £19.2 million in 2023 [5] - Each £1 million in lending enables SMEs to contribute £2.4 million to UK GDP, create 35 jobs, and generate £600,000 in tax revenue [5]