Oma Sp, Finland’s most profitable bank, has been experiencing rapid growth and profitability in recent years. Despite this, its stock valuation is relatively low due to the valuation coefficients. The bank’s focus on traditional banking has been successful, with high-quality customer service being a cornerstone of its business. In the last quarter, Oma Sp made an excellent result but was slightly disappointing for investors. The comparable result before taxes increased to 38.8 million euros, but Factsetin estimated it would be 45.5 million euros on average. Despite this setback, the bank’s return on equity rose to 21.5 percent in the second half of the year, with a record 25.3 percent for the whole year.
In contrast to asset management services, which may slow down growth in the future, Oma Sp has been able to win market shares year after year by offering retail banking services both through its own balance sheet and brokering products from partners. Inderes reports that the bank could further accelerate growth and raise its return on capital even more if it expands into capital-light asset management services.
Oma Sp serves more than 200,000 personal and business customers through 45 branches across Finland and digital service channels with a team of around 500 experts who focus on retail banking services. While other banks may offer different types of financial products such as credit risk management or corporate finance services, Oma Sp’s success lies in providing high-quality customer service and maintaining strong organic growth while also expanding into financial management arrangements and possibly expanding into other areas such as digital finance or wealth management in the future.
Overall, Oma Sp is a valuable investment opportunity for those looking for a company that has consistently shown strong profitability and growth while also maintaining high-quality customer service standards.