Positive profit warning: Oma Savings Bank Plc refines its outlook and upgrades its guidance for year 2021 - profit before taxes increases significantly
OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 23 JUNE 2021 AT 8.31 A.M. EET, INSIDE INFORMATION
Positive profit warning: Oma Savings Bank Plc refines its outlook and upgrades its guidance for year 2021 – profit before taxes increases significantly
Oma Savings Bank Plc (OmaSp or Company) upgrades its previous outlook and earnings guidance for year 2021. The Company's year 2021 profit before taxes will increase significantly over the previous accounting period. The result for the financial year is boosted by the continued favorable business development and by the compensation received from the termination of the cooperation contract.
CEO Pasi Sydänlammi:
“The termination of the core banking project cooperation agreement with Cognizant was the best solution for OmaSp. The termination of the contract will have a positive impact of approximately EUR 22 million on OmaSp's profit before taxes for the financial year 2021. At the same time, OmaSp's earning and business volumes have continued to develop strongly. We continue the current financial year from superbly good starting points.”
New outlook and earnings guidance for FY2021 (update 23 June 2021):
The company’s business volumes will continue strong growth FY2021 despite exceptionally uncertain economic environment. The company’s profitable growth is supported by efforts in recent years to improve the customer experience and the availability of customer service through new digital service channels and opening of new units. During the 2021 financial year, compensation for the termination of the cooperation contract will be recorded as a significant positive one-off item.
Oma Savings Bank provides earnings guidance on the profit before taxes as well as comparable profit before taxes. A verbal description is used to make a comparison with the comparative period. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management’s insight into the Group’s business development.
The company estimates that profitable growth will continue to be strong despite overall economic uncertainty. The group's 2021 profit before taxes will increase significantly compared to the previous financial year and comparable profit before taxes will grow compared to the previous accounting period.
Previous outlook and earnings guidance (published in the Financial Statements Release on 8 February 2021):
The company’s business volumes will continue strong growth FY2021 despite exceptionally uncertain economic environment. The company’s profitable growth is supported by efforts in recent years to improve the customer experience and the availability of customer service through new digital service channels and opening of new units.
Oma Savings Bank provides earnings guidance on the profit before taxes as well as comparable profit before taxes. A verbal description is used to make a comparison with the comparative period. Earnings guidance is based on the forecast for the entire year, which takes into account the current market and business situation. Forecasts are based on the management’s insight into the Group’s business development.
The company estimates that profitable growth will continue to be strong despite overall economic uncertainty and the group's 2021 profit before taxes and comparable profit before taxes will grow compared to the previous accounting period.
Oma Savings Bank Plc
Additional information:
Pasi Sydänlammi, CEO, tel +358 45 657 5506, pasi.sydanlammi@omasp.fi
Sarianna Liiri, CFO, tel +358 40 835 6712, sarianna.liiri@omasp.fi
Minna Sillanpää, CCO, tel +358 50 66592, minna.sillanpaa@omasp.fi
Distribution:
Nasdaq Helsinki Ltd
Major media
www.omasp.fi
OmaSp is a growing Finnish bank and the largest savings bank in Finland based on total assets. About 300 professionals provide nationwide services through OmaSp’s 32 branch offices and digital service channels to 140,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and pro-vides its clients with a broad range of banking services both through its own balance sheet as well as by act-ing as an intermediary for its partners’ products. The intermediated products include credit, investment and loan insurance products. OmaSp is also engaged in mortgage banking operations.
OmaSp core idea is to provide personal service and to be local and close to its customers, both in digital and traditional channels. OmaSp strives to offer premium level customer experience through personal service and easy accessibility. In addition, the development of the operations and services is customer-oriented. The personnel is committed and OmaSp seeks to support their career development with versatile tasks and continuous development. A substantial part of the personnel also own shares in OmaSp.
