Oma-säästöpanki’s Embezzlement Scandal: Another Setback for the Struggling Bank

Oma-säästöpanki is facing a second controversy in a short period of time. A suspected gross embezzlement that lasted for years has been discovered at the bank, resulting in approximately EUR 150,000 worth of damage. The former employee responsible for the crimes has been charged with gross embezzlement and forgery in the district court of Southern Ostrobothnia. These crimes were committed between February 2019 and October 2023, and the suspect is the bank’s former manager who previously worked in local branches in South Ostrobothnia.

The bank’s CEO, Pasi Sydänlammi, revealed that the abuses were discovered through internal control processes in October, with the background of the suspect having gambling problems. This news comes after another incident at Oma-säästöpanki where a profit warning was issued due to a breach of their lending guidelines, resulting in an EUR 19.5 million provision in the first quarter’s result. As a result, the bank’s stock dropped by over 14% on the Helsinki stock exchange.

Despite ongoing legal proceedings, CEO Sydänlammi clarified that the embezzlement case is unrelated to the profit warning. The bank is expected to provide more insight into their credit risks when they release their first-quarter interim report. This will end the quiet period before the earnings announcement, allowing for further clarification on the bank’s financial state.