Finland's Oma Savings Bank Q3 profit falls on loan quality; issues negative outlook
Overview
Finland retail bank's Q3 profit before tax and operating income declined year-on-year
Company issued negative profit warning, expects significant drop in full-year comparable profit before tax
Capital adequacy improved and company became S-Bank subsidiary after tender offer completion
Outlook
Company expects 2026 comparable profit before tax to decrease significantly from 2025’s EUR 56.9 mln
Net interest income for 2026 expected to decline versus previous year
Fee and commission income growth for 2026 seen slower than previously anticipated
Result Drivers
SUBDUED SALES & LOAN QUALITY - Co said Q3 results were affected by subdued sales and legacy loan portfolio quality
CONTRACTING LOAN PORTFOLIO - Net interest income fell due to a shrinking loan portfolio, though the decline has stabilised
HIGHER IMPAIRMENT LOSSES - Increased non-performing loans, especially in SME real estate, led to higher impairment losses in Q3
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M EPS | EUR 0.69 | ||
9M Net Interest Income | EUR 109.75 mln | ||
9M CET1 Capital Ratio | 19.00% | ||
9M Impairment Losses | -EUR 29.19 mln | ||
9M Net Fee Income | EUR 39.30 mln | ||
9M Pretax Profit | EUR 28.76 mln |
Analyst Coverage
The one available analyst rating on the shares is "sell"
The average consensus recommendation for the banks peer group is "sell"
Wall Street's median 12-month price target for Oma Saastopankki Oyj is €17.00, about 1.3% below its November 4 closing price of €17.22
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)