Q4/2024

Oma Savings Bank Group

Financial Statements Release 31 December 2024

Financial Statements Release 31 December 2024 is a translation of the original Finnish version "Tilinpäätöstiedote 31.12.2024". If discrepancies occur, the Finnish version is dominant.

Oma Savings Bank Group´s Financial Statements Release Jan–Dec 2024

Oma Savings Bank Plc's Extraordinary General Meeting was held on 10 December 2024. The Extraordinary General Meeting confirmed on the remuneration, number and composition of the members of the Board of Directors. The number of members of the Board of Directors was confirmed to be eight, i.e. the number of members increased by one. Aki Jaskari, Jaakko Ossa and Jaana Sandström were re-elected as Board members and Juhana Brotherus, Irma Gillberg-Hjelt, Carl Pettersson, Kati Riikonen and Juha Volotinen were elected as new members.
The Company's Board of Directors appointed Karri Alameri, B.Sc. (Econ.), CEFA as the Company's new CEO on 30 September 2024. Alameri will start his position no later than 1 April 2025.
On 1 September 2024, the Company completed the acquisition of Svenska Handelsbanken AB's SME business in Finland as planned. The deposit portfolio transferred to the Company was approximately EUR 440 million and the loan portfolio approximately EUR 500 million. A goodwill of EUR 15.3 million was recognised from the acquisition. Approximately 10,000 customers transferred to the Company in the acquisition, and at the same time 30 people transferred to the Company as old employees.
During the second quarter, the Company launched an extensive risk management action plan (the "Noste"), which has been implemented according to plan. More information on the objectives and progress of the risk management action plan can be found on page 24 of the Financial Statements Release.
In January–December, net interest income grew 8.1% compared with the same period last year. Net interest income totalled EUR 213.1 (197.0) million. In the last quarter, net interest income decreased by 10.5% compared to the comparison period.
Home mortgage portfolio increased by 5.0% during the previous 12 months. Corporate loan portfolio increased by 8.0% during the previous 12 months.
Deposit base increased by 5.5% over the past 12 months.
In January-December, fee and commission income and expenses (net) increased due to volume growth by 7.0%. In the last quarter, fee and commission income and expenses (net) increased by 7.5% compared to the comparison period.
In January–December, total operating income grew by 9.3% compared to the comparison period. In the last quarter, comparable total operating income remained at the same level compared to the last quarter and was EUR 68.2 (69.4) million.
In January-December, total operating expenses grew in total by 22.6%. The growth is mainly explained by expenses arising from business arrangements as well as from extensive risk management development projects and investigation costs related to noncompliance with the guidelines. In addition, the number of personnel increased during the year due to the business arrangements, the opening of new branches and the strengthening of risk management processes. Other operating expenses were in total EUR 69.3 (52.5) million, of which the development costs of the risk management action plan and investigation costs related to non-compliance with the guidelines amounted to EUR 11.8 million.
Comparable total operating expenses grew by 44.0% in the last quarter and were EUR 32,4 (22,5) million. Of this the risk management action plan (the "Noste") amounted to EUR 5.4 million.
For January-December, the impairment losses on financial assets were in total EUR -83.4 (-17.1) million. A total of EUR 64.4 million in impairment losses on financial assets were recorded in relation to non-compliance with the guidelines, of which EUR 4.9 million was final impairment losses on financial assets. Impairment losses on financial assets amounted to EUR 7.6 (7.3) million in the last quarter.

For January-December, profit before taxes was EUR 74.6 (138.0) million. For the last quarter, profit before taxes was EUR 22.6 (35.5) million.
In January-December, comparable profit before taxes was EUR 86.7 (143.6) million. For the last quarter, comparable profit before taxes was EUR 27.9 (38.8) million.
In January-December, cost/income ratio was 41.3 (36.9)%. In the last quarter, cost/income ratio was

52.9 (35.4)%. In January-December, comparable cost/income ratio was 37.8 (35.1)%. In the last quarter, comparable cost/income ratio was 47.7 (32.8) %.

In January-December, comparable return on equity (ROE) was 12.4 (25.3)%. For the last quarter, comparable return on equity (ROE) was 15.6 (23.5)%.
Total capital (TC) ratio was 15.6 (16.5)%.

Outlook for the financial year 2025

The Company's business outlook for the financial year 2025 will be affected by lower market interest rates and the continued high cost level due to IT investments and system improvements required by risk management and quality processes. In addition, the Company continues to invest in customer experience on different channels. The uncertainty of the operating environment and economic situation affects the development of balance sheet items and comparable profit for the financial year 2025.

Oma Savings Bank Plc provides earnings guidance on comparable profit before taxes for 2025. 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.

We estimate the Group's comparable profit before taxes to be EUR 65-80 million for the financial year 2025 (comparable profit before taxes was EUR 86.7 million in the financial year 2024).

The Board of Director's proposal for the distribution of profit to AGM

The Board of Directors proposes to the Annual General Meeting a dividend in accordance with the dividend policy, at least 20% of the Company's net profit. The proposal for the distribution of profit aims to increase capital buffers and maintain strong liquidity. The Board of Directors proposes that, on the basis of the Financial Statements to be adopted for 2024, a dividend of EUR 0.36 be paid from the Parent Company's distributable profits for each share entitled to a dividend for 2024.

The proposed record date for dividends would be 10 April 2025 and the payment date 17 April 2025.

No material changes have taken place in the Company's financial position after the financial year. The Company's liquidity is good, and the proposed profit distribution does not compromise the Company's liquidity according to the Board of Directors' insight.

The Group's key figures (1,000 euros)	1-12/2024	1-12/2023	Δ %	2024 Q4	2023 Q4	Δ %
Net interest income	213,097	197,045	8%	50,913	56,907	-11%
Fee and commission income and expenses, net	50,745	47,421	7%	13,105	12,188	8%
Total operating income	270,068	247,067	9%	64,381	67,190	-4%
Total operating expenses	-111,004	-90,550	23%	-33,917	-23,483	44%
Impairment losses on financial assets, net	-83,379	-17,126	387%	-7,572	-7,269	4%
Profit before taxes	74,589	138,048	-46%	22,582	35,546	-36%
Cost/income ratio, %	41.3%	36.9%	12%	52.9%	35.4%	49%
Balance sheet total	7,709,090	7,642,906	1%	7,709,090	7,642,906	1%
Equity	576,143	541,052	6%	576,143	541,052	6%
Return on assets (ROA) %	0.8%	1.6%	-52%	0.9%	1.5%	-40%
Return on equity (ROE) %	10.7%	24.3%	-56%	12.6%	21.5%	-41%
Earnings per share (EPS), EUR	1.80	3.49	-48%	0.54	0.85	-36%
Total capital (TC) ratio %	15.6%	16.5%	-6%	15.6%	16.5%	-6%
Common Equity Tier 1 (CET1) capital ratio %	14.4%	14.9%	-3%	14.4%	14.9%	-3%
Comparable profit before taxes	86,656	143,609	-40%	27,945	38,790	-28%
Comparable cost/income ratio, %	37.8%	35.1%	8%	47.7%	32.8%	45%
Comparable return on equity (ROE) %	12.4%	25.3%	-51%	15.6%	23.5%	-34%

Q4/2024 Comparable profit before taxes EUR 28 million

CEO's review

The year ended with a fourth quarter in line with expectations – comparable profit before taxes was strong for 2024

The year 2024 has been very exceptional in the history of OmaSp. Both main sources of income developed in line with expectations and the year ended with a good quarter. Significant investments in the development

of risk management processes and the implementation of an extensive action plan continuet. The acquisition of Handelsbanken AB's Finnish SME business and the expansion of the distribution network strengthened OmaSp's market position towards the end of the year and provide a good starting point for the year beginning.

Q4/2024 Comparable cost/income ratio 47.7%

As expected, changes in market interest rates were reflected in the development of net interest income, and in the last quarter net interest income fell by 11 percent from the comparison period. The net interest income increased by 8 percent for the whole year. Our customers

value our personal and easily accessible service model. This is reflected in the development of the number of customers, which remained despite an exceptional year at a good level. With Handelsbanken's business acquisition, OmaSp gained approximately 10,000 new customers in the autumn, and in addition to this, approximately 1,000

new customer relationships were organically created every month. In particular, fee

and commission income and expenses net were increased by card and payment fees, which increased by 16 percent from the previous year. Fee and commission income and

The comparable profit before taxes was EUR 27.9 million for the fourth quarter and the comparable return on equity was 15.6 percent.

expenses net increased by 8 percent in the last quarter and by 7 percent for the full year. At the end of the year, the business focus has been especially on the reception of customers who have transferred from Handelsbanken and the start of operations in three new branches. With the expanded distribution network OmaSp now has excellent coverage in all of Finland's key growth and provincial centers.

OmaSp's loan portfolio and deposit base were boosted by volumes transferred from Handelsbanken. The portfolio of housing loans grew by 5 percent, corporate loan portfolio by 8 percent and deposits by 6 percent from a year ago.

Accumulation of impairment losses on financial assets was significantly affected by non-compliance with the guidelines and related additional allowances. In 2024, credit losses amounted to approximately EUR 84 million, of which approximately EUR 64 million were related to non-compliance with the guidelines. In the last quarter, the credit loss level remained at last Comparable ROE

The Company has continued to make

year's level.

significant investments in risk management and the implementation of the action plan launched in the summer. As a result, the cost level remained high in the last quarter of the year. An additional EUR 5.4 million was invested in risk management processes in October– December and comparable costs increased by 44 percent during the fourth quarter. Expenses were also increased by the increased number of personnel. During the financial year, the Financial Supervisory Authority (FIN-FSA) carried out audits of the Company. Based on the audits, the observations raised by the supervisor and the development targets already identified by the Company itself support each other. The measures to develop the processes are proceeding well on schedule and the goal is to complete the development measures planned during 2024 in the first half of 2025.

The comparable cost/income ratio remains at a good level despite significant investments and was 47.7 percent in the last quarter.

Customer and personnel satisfaction at the center of everything

OmaSp's competitive advantage has been and will continue to be built on excellent customer experience. According to research, customer and personnel satisfaction have remained at an excellent level as in previous years, despite the exceptional year. Our personnel are our most essential resource, so committed and motivated personnel play a vitally important role for OmaSp's future success. The renewed board of the

Company started its work in December, and we have got five experienced board experts to strengthen the bank's operations. In addition, the Company's new CEO, Karri Alameri, will start his work in April at the latest.

OmaSp's financial position is stable, and the Company's solvency and liquidity position is at a good level. The total capital (TC) ratio was 15.6 percent at the end of the

year and the accumulation of equity is nearly EUR 580 million.

After the changes implemented in 2024, we will now be able to focus on our core business and strengthen the customer experience of our existing and new customers. OmaSp's ambition is to enable and solve the needs of households and small and medium-sized enterprises in all areas of the bank's operations. In February, the history of OmaSp stretches back 150 years. From these strong starting points, we will continue into 2025 with confidence.

Warm thanks to all customers and owners, and especially to OmaSp's personnel for 2024!

Sarianna Liiri CEO

Q4/2024

15.6%

Solvent and profitable Finnish bank

Profit before taxes, EUR mill.

Return on equity (ROE) %

Balance sheet total, EUR mill.

Investment assets

Loans and receivables to credit institutions

Loans and receivables to the public and public sector entities

Cash and cash equivalents

Total operating income, EUR mill.

Negative goodwill

Other operating income

Fee and commission income and expenses

Net income on financial assets and liabilities

Net interest income

Significant events during the financial year

Oma Savings Bank Plc's Extraordinary General Meeting was held on 10 December 2024. The Extraordinary General Meeting confirmed on the remuneration, number and composition of the members of the Board of Directors. The number of members of the Board of Directors was confirmed to be eight, i.e. the number of members increased by one. Aki Jaskari, Jaakko Ossa and Jaana Sandström were re-elected as Board members and Juhana Brotherus, Irma Gillberg-Hjelt, Carl Pettersson, Kati Riikonen and Juha Volotinen were elected as new members. More about the decisions of the Extraordinary General Meeting on page 27.
On 30 September 2024, the Company's Board of Directors appointed Karri Alameri, B.Sc. (Econ.), CEFA as the Company's new CEO. Alameri will start his position no later than 1 April 2025. Interim CEO Sarianna Liiri will continue in her position until Karri Alameri starts.
In November, S&P Global Ratings (S&P) changed the long-term issuer credit rating of Oma Savings Bank Plc to BBB (formerly BBB+) and remained the short-term issuer rating unchanged at A-2. At the same time, S&P updated the outlook of the Company to stable (previously negative).
In November, the Company announced that it will suspend its IRB application process until further notice. The Company launched an application process on the application of the IRB approach in capital adequacy in February 2022. During 2024, the dialogue with the Finnish Financial Supervisory Authority (FIN-FSA) identified development needs in several areas of the IRB framework. As a result, the Company suspended the process until further notice and will assess the development needs of the IRB framework and the submission of a possible new application separately.
During the financial year, the Finnish Financial Supervisory Authority (FIN-FSA) conducted audits related to liquidity risk and anti-money laundering activities. In addition, the supervisor's review was carried out during the rest of the year. The

supervisor's key observations and the Company's actions related to these can be read on page 25 of the Financial Statements Release.

In November, the Company announced a directed share issue to the employees in order to transfer the savings shares in the share savings plan (OmaOsake). In the OmaOsake plan, the employees have the opportunity to save a proportion of their salary and invest the savings to the shares of Oma Savings Bank Plc. The savings are used to acquire shares two times a year. To implement the OmaOsake plan, the Board of Directors resolved to issue a total of 17,534 new shares of Oma Savings Bank Plc.
On 1 September 2024, the Company completed the acquisition as planned of Svenska Handelsbanken AB's SME business in Finland. As part of the acquisition of the SME business, entrepreneurs' personal banking services, excluding asset management and investment services, were also transferred to the Company. The acquired SME business is geographically located all over Finland. The transferred deposit portfolio was approximately EUR 440 million and the loan portfolio approximately EUR 500 million. In the acquisition, approximately 10,000 customers were transferred to the Company. At the same time 30 people transferred to the Company as old employees. More information on the effects of the transaction on page 24 of the Financial Statements Release.
In cooperation with K Group, the Company launched a new credit card for SMEs, the K-Business Credit card.
The Company issued senior unsecured bonds in August and September and a covered bond increase (tap issue) in May.
On 24 July 2024, the Company issued a negative profit warning, published preliminary information on the second quarter result and updated its guidance due to a significant additional allowance based on the management's judgement in the second quarter.

According to the updated guidance, the Company estimated that the Group's comparable profit before taxes to be EUR 80–100 million for the financial year 2024.

On 24 July 2024, the Company announced the completion of the review of the credit portfolio. The quality of the entire loan portfolio was verified by external, independent experts. The results confirmed that the problems are limited to previously identified non-compliance with the guidelines, and the quality of the rest of the credit portfolio (approximately EUR 6 billion) corresponds to what was previously reported. In light of the latest information, customer entities accounted for approximately 4% of the Company's EUR 6 billion credit portfolio. Based on the results, the Company reassessed the credit risk position of the customer entities in question and recognised EUR 35.7 million additional allowance based on the management's judgement and impairment losses for the second quarter. The increase was based on specified customer groups and a more detailed assessment of credit risk based on further studies carried out by the Company's internal and external experts.
On 19 June 2024, the Company announced that the Company's Board of Directors and CEO Pasi Sydänlammi had agreed that Sydänlammi will leave his position as CEO immediately. Deputy CEO Sarianna Liiri was appointed as interim CEO and Head of Service Network Markus Souru was elected as Deputy CEO. In addition, the Company announced that it had continued its internal study announced in April regarding non-compliance with the guidelines in lending and had submitted a request for investigation to the police for its findings. It was also decided to verify the internal report carried out by the Company on its credit portfolio by external quality assurance. The Company also announced that it has initiated extensive measures to improve its risk management processes and other control processes. More about ongoing measures on page 24 of the Financial Statements Release.
On 23 May 2024, Jarmo Salmi, Chairman of the Board of Directors, left his position and Jaakko Ossa became Chairman of the Board of Directors. At the same time,

the Board of Directors decided to establish an Audit Committee to support the supervisory duties of the Board of Directors. When appointing the members of the Audit Committee, the Board of Directors has taken into account the expertise and experience required for the position. More detailed information on the composition of the Company's Board of Directors is available on the Company's website.

On 16 April 2024, the Company provided preliminary information on the result for the first quarter and updated its guidance based on the management's judgement related to a significant additional allowance recognised for the first quarter. As a result of its own monitoring processes, the Company detected noncompliance with the guidelines, as a result of which the Company's credit risk position deteriorated materially for certain customer entities. The event was due to non-compliance with the Company's lending guidelines, as a result of which individual customer entities were consciously formed incorrectly. Due to the change in the risk position, an additional allowance of EUR 19.5 million was recognised based on the management's judgement for the first quarter.
On 1 June 2024, the representatives of the five largest shareholders were appointed to the Shareholders' Nomination Committee according to the shareholders' register:
- o Raimo Härmä, appointed by Etelä-Karjala's Savings Bank Foundation
- o Ari Lamminmäki, appointed by Parkano's Savings Bank Foundation
- o Jouni Niuro, appointed by Lieto's Savings Bank Foundation
- o Aino Lamminmäki, appointed by Töysä's Savings Bank Foundation
- o Simo Haarajärvi, appointed by Kuortane's Savings Bank Foundation
On 3 May 2024, the Company announced that the Finnish Financial Supervisory Authority (FIN-FSA) has submitted a pre-trial investigation request to the police for securities market crimes related to the Company. At the same time, the FIN-FSA announced

that it was investigating the need to impose administrative sanctions on the Company.

On 5 March 2024, the Company's former Deputy CEO and Head of Corporate Customer Business Pasi Turtio left the Company.In February, The Board of Directors of the Company decided to establish an employee share savings plan OmaOsake for the employees. By encouraging employees to acquire and own shares in the Company, the Company seeks to combine the goals of shareholders and employees in order to increase the value of the Company in the long term. The aim is also to support employee motivation and commitment as well as the Company's corporate culture. The OmaOsake consists of annually commencing plan periods, each with a 12 month savings period followed by a holding period of approximately two years. The first savings period started on 1 April 2024.
In February, The Board of Directors of the Company decided on a new performance period for the share based incentive scheme for key employees for the financial years 2024–2025. The target group of the performance period 2024–2025 consists of approximately 45 key employees, including the Company's CEO and members of the Management Team. The potential reward for the performance period will be mainly based on the comparable costincome ratio, customer and personnel satisfaction and quality of the credit portfolio. The rewards to be paid from the performance period correspond to the value of an approximate maximum of 405,000 Oma Savings Bank Plc shares in total, including the proportion to be paid in cash.

Oma Savings Bank Group's key figures

(1,000 euros)		1-12/2024 1-12/2023	Δ %	2024 Q4	2024 Q3	2024 Q2	2024 Q1	2023 Q4
Net interest income	213,097	197,045	8%	50,913	52,374	52,442	57,369	56,907
Fee and commission income and expenses,	50,745	47,421	7%	13,105	12,176	12,699	12,766	12,188
Total operating income	270,068	247,067	9%	64,381	64,111	67,497	74,080	67,190
Total operating expenses	-111,004	-90,550	23%	-33,917	-27,697	-23,432	-25,958	-23,483
¹⁾ Cost/income ratio, %	41.3%	36.9%	12%	52.9%	43.4%	34.8%	35.2%	35.4%
Impairment losses on financial assets, net	-83,379	-17,126	387%	-7,572	-13,272	-39,423	-23,112	-7,269
Profit before taxes	74,589	138,048	-46%	22,582	22,836	4,504	24,668	35,546
Profit/loss for the accounting period	59,548	110,051	-46%	17,888	18,321	3,439	19,899	28,185
Balance sheet total	7,709,090	7,642,906	1%	7,709,090	7,775,086	7,284,410 7,531,291		7,642,906
Equity	576,143	541,052	6%	576,143	557,950	533,259	527,426	541,052
¹⁾ Return on assets (ROA) %	0.8%	1.6%	-52%	0.9%	1.0%	0.2%	1.0%	1.5%
¹⁾ Return on equity (ROE) %	10.7%	24.3%	-56%	12.6%	13.4%	2.6%	14.9%	21.5%
¹⁾ Earnings per share (EPS), EUR	1.80	3.49	-48%	0.54	0.55	0.10	0.60	0.85
¹⁾ Equity ratio %	7.5%	7.1%	6%	7.5%	7.2%	7.3%	7.0%	7.1%
¹⁾ Total capital (TC) ratio %	15.6%	16.5%	-6%	15.6%	15.4%	16.6%	16.9%	16.5%
¹⁾ Common Equity Tier 1 (CET1) capital ratio %	14.4%	14.9%	-3%	14.4%	14.2%	15.2%	15.4%	14.9%
¹⁾ Tier 1 (T1) capital ratio %	14.4%	14.9%	-3%	14.4%	14.2%	15.2%	15.4%	14.9%
¹⁾ 3) Liquidity coverage ratio (LCR) %	160.3%	248.9%	-36%	160.3%	165.9%	199.1%	154.6%	248.9%
¹⁾ 2) Net Stable Funding Ratio (NSFR) %	118.1%	117.8%	0%	118.1%	117.4%	118.7%	117.3%	117.8%
Average number of employees	518	445	16%	576	527	499	470	463
Employees at the end of the period	585	464	26%	585	548	511	471	464

Alternative performance measures excluding items affecting comparability:

¹⁾ Comparable profit before taxes	86,656	143,609	-40%	27,945	27,575	5,510	25,626	38,790
¹⁾ Comparable cost/income ratio, %	37.8%	35.1%	8%	47.7%	36.8%	32.9%	34.1%	32.8%
¹⁾ Comparable earnings per share (EPS), EUR	2.09	3.63	-42%	0.67	0.67	0.13	0.62	0.93
¹⁾ Comparable return on equity (ROE) %	12.4%	25.3%	-51%	15.6%	16.2%	3.2%	15.5%	23.5%

1) Calculation principles of alternative performance measures and key figures are presented in Note 18 of the Financial Statements Release. Comparable profit calculation is presented in the Income Statement.

2) LCR calculation adjusted retrospectively as of 31 March 2024.

Operating environment

Finland's economy is expected to recover, and according to the forecast of the Bank of Finland, the recovery will start slowly in 2025. However, the economic recovery will be overshadowed by uncertainty in the outlook for the global economy. (1 The year-on-year change in consumer prices calculated by Statistics Finland was 0.7% in December. The change in inflation from one year ago was affected among other things by the fall in the average interest rate as well as the fall in the price of electricity and diesel. (3

The disinflation process is well on track, and financing conditions are easing, but are however still tight, due to the impact of past interest rate hikes. The European Central Bank is determined to ensure that inflation stabilises sustainably at its 2% medium-term target. In December, the European Central Bank cut all three key ECB interest rates by 0.25 percentage points. (2 Interest rates have continued to fall, and during January-December the quotation of the 12-month Euribor has fallen by approximately 1.1 percentage points. (10

Inflation has fallen considerably during 2024, but consumer spending will recover slowly, as consumers' confidence in the economy is weak. The easing of financing conditions supports economic growth, but unemployment will continue to rise in 2025. On the other hand, interest rates are expected to come down further, which will support consumption and investment. According to the preliminary calculations of the Bank of Finland, the GDP is projected to decrease by 0.5% in 2024 and increase by 0.8% in 2025. In 2026, economic growth is projected to pick up 1.8% and in 2027, 1.3%. (1

The seasonally adjusted saving rate of households grew by 1.5 percentage points compared to the previous quarter and was 4.4% in July-September. In the third quarter, the disposable income of households grew slightly compared to the previous quarter, while consumption expenditure remained at the same level compared to the previous quarter. The adjusted disposable income of households grew by 2.6% and adjusted for price changes by 1.8% compared to the quarter last year. The investment rate decreased slightly compared to the previous quarter and was 9.3%. Majority of the investments in households are

directed in housing investments. The corporate investment rate remained close to the level of the previous quarter and was 27.7%. (4

According to Statistics Finland, the number of employed people aged 15 to 74 was 56,000 lower in December and the number of unemployed was 27,000 higher than a year ago. In December, the employment rate was 75.9% (20 to 64 years) and the unemployment rate was 8.1% (15 to 74 years). (5

According to Statistics Finland's preliminary data, the prices of old dwellings in housing companies decreased by 0.6% year-on-year in the whole country in December. Prices of old dwellings in housing companies decreased by 0.4% in the six largest towns and by 1.1% in the rest of Finland in December from one year ago. At the same time, the number of sales of old dwellings in blocks of flats and terraced houses made through real estate agents decreased by 16% from the comparison period. (6

In December, Finnish households drew down new housing loans to a total of EUR 1.1 billion, a decrease of EUR 200 million compared to the previous year. The average interest rate on new housing loans was 3.17% in December. In December 2024, the annual growth of all loans to households decreased by 0.5%. The number of corporate loans decreased by 0.5% over the same period. Over the 12-month period, the number of households' deposits increased by a total of 1.4%.(7

In January-December 2024, the number of bankruptcies instigated increased by 5.1% compared to the previous year. (8 During September-November 2024, the cubic volume of granted permits for new buildings decreased by 20% compared to the previous year and was 6.2 million cubic meters. (9

¹⁾ Bank of Finland, Finnish economy returning slowly to growth. Published on 17 December 2024.

²⁾ Bank of Finland, European Central Bank's monetary policy decisions. Published on 12 December 2024.

³⁾ Statistics Finland, Inflation 0.7% in December 2024. Published on 14 January 2025.

⁴⁾ Statistics Finland, Households' saving rate was positive in the third quarter of 2024. Published on 18 December 2024.

⁵⁾ Statistics Finland, Fewer employed persons and more unemployed persons in December 2024 compared to one year ago. Published on 24 January 2025.

6) Statistics Finland, Prices of old dwellings in housing companies decreased by 0.6 per cent year-on-year in December 2024. Published on 28 January 2025.

7) Bank of Finland, MFI balance sheet (loans and deposits) and interest rates. Interest rates on new consumer credit lower. Published on 30 January 2025.

8) Statistics Finland, Altogether 268 bankruptcies were instigated in December 2024. Published on 16 January 2025.

9) Statistics Finland, Cubic volume of granted building permits decreased by 20 per cent year-on-year in September to November 2024. Published on 21 January 2025.

10) Bank of Finland, Euribor interest rates tables. Published on 2 January 2025.

Credit rating and liquidity

In November 2024, S&P Global Ratings (S&P) updated a credit rating of BBB for Oma Savings Bank Plc's long-term issuer credit rating (formerly BBB+). The credit rating agency S&P justifies the downgrade with higher-thanexpected credit loss reserves related to the noncompliance with the guidelines credit portfolio. At the same time, S&P changed the outlook for long-term credit ratings from negative to stable. The stable outlook reflects the credit agency's expectation that the Company has identified development areas and taken corrective measures in the framework of risk management, and that the Company will continue to maintain stable capital through its ability to make profit. The short-term issuer credit rating remained at A-2. In addition, S&P Global Ratings has confirmed an AAA rating for the Company's bond program.

	31 Dec 2024	31 Dec 2023
LCR	160.3%	248.9%
NSFR	118.1%	117.8%

The Group's Liquidity Coverage Ratio (LCR) remained at a stable level, standing at 160.3% at the end of the last quarter. Also, the Net Stable Funding Ratio (NSFR) remained at a stable level and was 118.1%.

According to the Bank of Finland's forecast, economic recovery will start slowly in 2025. However, the economic recovery is over-shadowed by uncertainty in the outlook for the world economy. (1 Inflation has clearly slowed in 2024, but private consumption will recover slowly, as consumer confidence in the economy is weak. The weak economic situation and domestic deposit competition put pressure on the development of deposit purchasing.

Market interest rates falling during the fourth quarter curbed financing costs while the general market situation remained challenging. The Company's liquidity risk remained at a stable level and there are no significant financial concentrations during the first quarter of 2025.

(1 Bank of Finland: Finnish economy returning slowly to growth. Published on 17 December 2024.

Related party disclosures

Related party is defined as key persons in a leading position at Oma Savings Bank Plc and their family members, subsidiaries, associated companies and joint ventures, joint operations and companies in which a key person in a leading position has control or significant influence, and organisations that have significant influence in Oma Savings Bank Plc. Key persons are members of the Board of Directors, the CEO and deputy to the CEO and the rest of the management team. Loans and guarantees have been granted to the related party with conditions that are applied to similar loans and guarantees granted to customers. More detailed information on related parties is given in Note G31 of the 2023 Financial Statements.

More detailed information on the share-based incentive schemes for key persons is given in note G32 of the Financial Statements for 2023 and in note 14 of the Half-Year Financial Report.

Financial statements

The corresponding period last year has been used as the year under comparison in income statement items, and the date of 31 December 2023 as the comparison period for the balance sheet and capital adequacy. The figures in the Financial Statements Release are unaudited.

Result 10–12 / 2024

For the last quarter, the Group's profit before taxes was EUR 22.6 (35.5) million and the profit for the period was EUR 17.9 (28.2) million. The cost/income ratio was 52.9 (35.4)%.

Comparable profit before taxes amounted to EUR 27.9 (38.8) million in the last quarter and the comparable cost/income ratio was 47.7 (32.8)%. The comparable profit has been adjusted for the net income on financial assets and liabilities as well as the one-off expenses related to business arrangements and costs incurred in the investigation of non-compliance with the guidelines.

Income

Total operating income was EUR 64.4 (67.2) million. Total operating income decreased 4.2% compared to the comparable period. Comparable operating income was

50.9 M€ 13.1 M€ -3.8 M€ 4.2 M€ 64.4 EUR mill. Operating income 2024 Q4 Net interest income EUR 68.2 (69.4) million, a decrease of 1.8% compared to the previous year. Net income on financial assets and liabilities of EUR -3.8 (-2.2) million has been adjusted from the operating income as an item affecting comparability.

Net interest income decreased by 10.5%, totalling EUR 50.9 (56.9) million. During the review period, interest income decreased by 14.8%, totalling EUR 84.0 (98.6) million. The decrease in interest income can be explained by the decrease in market interest rates. The change in the treatment of the derivatives hedging the interest rate risk to a netting-based reduced the interest income and expenses compared to the comparison period. In the last quarter, the net effect of interest rate risk hedging on net interest income was EUR -2.5 million. During the reporting period, the average margin of the loan portfolio has remained almost unchanged.

Interest expenses were EUR 33.1 (41.7) million in the last quarter. The average interest on deposits paid to the Company's customers was 0.87 (0.87)% at the end of the period.

Fee and commission income and expenses (net) increased by 7.5% and was EUR 13.1 (12.2) million. The total amount of fee and commission income was EUR 16.0 (15.0) million.

Fee and commission income and expenses, net
Net income on financial assets and financial liabilities
Other operating income

Net fee and commission income from cards and payment transactions was EUR 10.0 (8.6) million, an increase of 15.9% over the previous year. The increase is mainly explained by the increase in customer volume. The amount of commission income from lending was EUR 2.4 (3.0) million.

The net income on financial assets and liabilities were EUR -3.8 (-2.2) million during the period. In the last quarter, the Company revalued the values of certain associated companies' shares, as a result of which the Company recorded a total of EUR 4.6 million impairment loss. Other operating income was EUR 4.2 (0.3) million. Other operating income includes a positive fair value change of EUR 4.0 million from the revaluation of joint debts recorded in connection with the business transactions of Eurajoen Savings Bank and Liedon Savings Bank during the reporting period.

Expenses

Operating expenses were in total EUR 33.9 (23.5) million and they increased by 44.4% compared to the previous year's corresponding period. The expenses of the risk management development project "Noste" amounted to EUR 5.4 million in the last quarter. For the reporting

period, expenses affecting comparability were recorded in total of EUR 0.3 million from the arrangement of the business acquired from Handelsbanken, and costs incurred in investigating non-compliance with the guidelines EUR 1.2 million. In the comparison period, expenses included EUR 0.6 million related to the acquisition of Handelsbanken and expenses of EUR 0.4 million arising from the change negotiations. Comparable operating expenses increased by 44% and were EUR 32.4 (22.5) million.

Personnel expenses were EUR 9.4 (7.9) million. At the end of the period, the number of employees was 585 (464), of which 46 (69) were fixed-term.

Other operating expenses increased by 66.5% to EUR 22.3 (13.4) million. The item includes authority fees, office, IT, PR and marketing costs and those stemming from the business premises in own use. The increase in costs compared to the comparison period was affected by costs arising from risk management development projects, investigation of non-compliance with the guidelines and Handelsbanken's business arrangements.

Depreciation, amortisation and impairments on tangible and intangible assets were EUR 2.2 (2.2) million.

Impairment losses on financial assets

During the last quarter, impairment losses on financial assets (net) increased compared to the comparative period and were EUR -7.6 million. The impairment losses on financial assets recorded in the comparative period amounted to EUR -7.3 million.

During the last quarter, the amount of expected credit losses (ECL) increased and was EUR 5.1 million, while the expected credit losses decreased by EUR 9.1 million in the comparison period. EUR 5.1 million of the expected credit losses were targeted at receivables from customers and off-balance sheet items.

During the last quarter, the Company has reassessed the fair value adjustment made in connection with the acquisition of Liedon Savings Bank of which a positive profit-related EUR 2.0 million was recorded. At the end of the reporting period, there are no fair value adjustment items related to Liedon Savings Bank's receivables in the Company's balance sheet.

The net amount of realised credit losses decreased compared to the comparison period and was EUR 2.5 (16.4) million in the last quarter. Of the credit losses realised during the comparison period, an individual customer accounted for EUR 13.8 million.

At the end of the reporting period, the Company has a total of EUR 2.6 million in additional allowances and fair value adjustments recognised in the balance sheet based on the management's judgement. Additional allowances are targeted at stage 2.

Result 1–12 / 2024

The Group's profit before taxes was EUR 74.6 (138.0) million in January–December and the profit for the period was EUR 59.5 (110.1) million. The cost/income ratio was 41.3 (36.9)%.

Comparable profit before taxes amounted to EUR 86.7 (143.6) million for January–December and the comparable cost/income ratio was 37.8 (35.1)%. The comparable profit before taxes has been adjusted for the net income on financial assets and liabilities as well as one-off items related to the business arrangements and expenses incurred in investigating non-compliance with the guidelines.