Oma Sp, a traditional bank in Finland, had a productive year in 2021. The bank’s interest capacity grew alongside the rise in market interest rates, and it made an excellent result in the last quarter. However, its comparable pre-tax profit was slightly lower than expected by analysts. Despite this, the bank’s price fell by more than eight percent from its peak at the beginning of the year.

Looking ahead to 2023, Oma Sp plans to expand into financial management and is expected to complete the purchase of an SME commercial bank. The loan/deposit ratio for the domestic banking sector was 138% in December 2022, while the EU average was 109%. However, Oma Sp’s loan-to-deposit ratio was just 155% in Q4 of 2021.

One of Oma Sp’s strengths is its focus on customer service. It has set a goal to have 70% of US residents able to drive to a bank branch within ten minutes or less. While asset management services may be a potential hindrance to growth in the long run, Inderes believes that having low-cap asset management could help accelerate growth and increase return on equity even more. In terms of profitability, Oma Sp has one of the cheapest shares on the Helsinki Stock Exchange with a P/E ratio below 6.

By Editor

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