Inside information

Oma Savings Bank Plc has agreed to acquire Handelsbanken's SME enterprise operations in Finland

OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 31 MAY 2023 AT 08:00 A.M. EET, INSIDE INFORMATION

Inside information: Oma Savings Bank Plc has agreed to acquire Handelsbanken's SME enterprise operations in Finland

On 31 May 2023, Oma Savings Bank Plc (OmaSp) and Handelsbanken AB have agreed on an arrangement whereby OmaSp will acquire Handelsbanken's SME enterprise operations in Finland. The transaction is expected to be finalised during second half of 2024 and the exact date will be specified later. As part of the purchase of the SME enterprise operations, entrepreneurs’ banking services will also be transferred to OmaSp, excluding asset management and investment services. The SME enterprise operations to be purchased are geographically located all over Finland.

The size of the deposit base transferring to OmaSp is approximately EUR 1.2 billion and the lending volume is approximately EUR 460 million in the situation on 31 March 2023. The target of the business transaction is in total approximately 14,000 SME customers. In addition, personal banking services of entrepreneurs will be transferred, which are not included in the above figures. At the same time, around 40 people from Handelsbanken will be transferred to OmaSp as old employees.

CEO Pasi Sydänlammi:
“The transaction is a really positive thing for OmaSp. The bank's market position is considerably strengthened among SMEs in Finland. The growing business volumes further improve OmaSp's cost efficiency and business profitability and has a material impact on the annual profit-making ability. The transferring deposit base will strengthen OmaSp's liquidity position, and there is no separate financing need for the business arrangement. The business deal has no material effect on OmaSp's capital adequacy. The purchase price is the net value of the balance sheet items to be transferred at closing plus EUR 15 million. The purchase price will be paid in cash, the transaction has no impact on the number of company’s shares outstanding. The goal is to make the transfer as easy as possible for customers, and for the time being customers can continue using Handelsbanken's banking services as normal."

On 31 May 2023, Handelsbanken signed an agreement with OmaSp, S-Bank Plc and Fennia Life Insurance Company Ltd. to sell the bank's Finnish SME business to OmaSp, its retail banking, asset management and investment services businesses to S-Bank, and its life insurance business, including investment, pension and loan insurance, to Fennia. The transaction is subject to regulatory approval.

On 31 March 2023, OmaSp's balance sheet was approximately EUR 7.3 billion, and the number of private and corporate customers was over 200,000 customers.

Oma Savings Bank Plc

Additional information:
Pasi Sydänlammi, CEO, tel. [phone], [e-mail]
Minna Sillanpää, CCO, tel. [phone], [e-mail]

Distribution:
Nasdaq Helsinki Ltd
Major media
www.omasp.fi

Oma Savings Bank in short
OmaSp is a growing Finnish bank and the largest savings bank in Finland based on total assets. About 450 professionals provide nationwide services through OmaSp’s 45 branch offices and digital service channels to over 200,000 private and corporate customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting 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.