Latest news with #CoreBusiness
Yahoo
20 hours ago
- Business
- Yahoo
P3 Health Partners Announces Second Quarter 2025 Results
Core Business Demonstrates Strength with Flat Medical Cost Trends Despite Industry Inflation $120-$170 Million in Additional EBITDA Opportunities Identified for 2026 Adjusted Full Year Guidance Reflects Prior Period Headwinds Management to Host Conference Call and Webcast August 14, 2025 at 4:30 PM ET HENDERSON, Nev., August 14, 2025--(BUSINESS WIRE)--P3 Health Partners Inc. ("P3" or the "Company") (NASDAQ: PIII), a patient-centered and physician-led population health management company, today announced its financial results for the second quarter ended June 30, 2025. "Our core business continues to strengthen as we execute on our $130 million EBITDA improvement plan," said Aric Coffman, CEO of P3. "While we faced prior period headwinds, we've successfully managed medical cost trends to remain flat while improving funding across our membership on a per-member basis. With an additional $120 to $170 million in identified EBITDA opportunities and three of our four markets already EBITDA positive or breakeven, P3 is well-positioned to achieve sustained profitability in 2026 and beyond." Second Quarter 2025 Financial Results Average at-risk membership was approximately 115,000 members for the second quarter, a decrease of 9% compared to prior year. The decrease reflects previously disclosed network and payer rationalization. Total revenue was $355.8 million, a decrease of 6% compared to the second quarter of the prior year, driven by the decline in membership. On a per-member basis, funding improved 10% from prior year, when adjusted for prior-period items. Medical margin(1) was $30.6 million, or $89 PMPM. Excluding prior-period adjustments, medical margin(1) was $39.3 million, or $114 PMPM. Adjusted EBITDA loss(1) was $17.1 million, or $50 PMPM. Excluding prior-period adjustments, Adjusted EBITDA loss for the quarter was a loss of $8.5 million, or $25 PMPM. Adjusted full year guidance reflects impact from prior-period adjustments and underperformance of a single payer. Revised Fiscal 2025 Guidance Year Ended December 31, 2025 Low High At-risk Members(2) 109,000 119,000 Total Revenues (in millions) $ 1,350 $ 1,500 Medical Margin(1)(3) (in millions) $ 124 $ 154 Medical Margin(3) PMPM $ 90 $ 111 Adjusted EBITDA(3) (in millions) $ (69 ) $ (39 ) (1) Adjusted EBITDA, Adjusted EBITDA per member, per month ("PMPM"), medical margin, and medical margin PMPM are non-GAAP financial measures. For reconciliations of these measures to the most directly comparable GAAP measures, if applicable, and more information regarding the Company's use of non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures." (2) See "Key Performance Metrics" for additional information on how the Company defines "at-risk members." (3) The Company is not able to provide a quantitative reconciliation of guidance for Adjusted EBITDA, medical margin and medical margin PMPM to net income (loss), gross profit and gross profit PMPM, the most directly comparable GAAP measures, respectively, and has not provided forward-looking guidance for net income (loss), because of the uncertainty around certain items that may impact net income (loss), gross profit (loss) or gross profit (loss) PMPM that are not within our control or cannot be reasonably predicted without unreasonable effort. For more information regarding the non-GAAP financial measures discussed in this press release, please see "Non-GAAP Financial Measures" below. The foregoing 2025 outlook statement represents management's current estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the "Cautionary Note Regarding Forward-Looking Statements" included in this release. Management does not assume any obligation to update these estimates. Management to Host Conference Call and Webcast on August 14, 2025 at 4:30 PM ET Title & Webcast P3 Health Second Quarter 2025 Earnings Conference Call Date & Time August 14, 2025, 4:30pm Eastern Time Conference Call Details Toll-Free 1-833-316-0546 (US) International 1-412-317-0692 Ask to be joined into the P3 Health Partners call The conference call will also be webcast live in the "Events & Presentations" section of the Investor page of the P3 website ( The Company's press release will be available on the Investor page of P3's website in advance of the conference call. An archived recording of the webcast will be available on the Investor page of P3's website for a period of 90 days following the conference call. About P3 Health Partners (NASDAQ: PIII) P3 Health Partners Inc. is a leading population health management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians, P3 has an expansive network of more than 2,800 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 24 counties across four states. P3 supports primary care providers with value-based care coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers, the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient's care within the healthcare system. For more information, visit and follow us on LinkedIn and Facebook. Non-GAAP Financial Measures In addition to the financial results prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"), this press release contains certain non-GAAP financial measures as defined by the SEC rules, including Adjusted EBITDA and Adjusted EBITDA PMPM, medical margin, medical margin PMPM, and adjusted operating expense. EBITDA is defined as GAAP net income (loss) before (i) interest, (ii) income taxes and (iii) depreciation and amortization. Adjusted EBITDA is defined as EBITDA, further adjusted to exclude the effect of certain supplemental adjustments, such as (i) mark-to-market warrant gain/loss, (ii) premium deficiency reserves, (iii) equity-based compensation expense, (iv) certain transaction and other related costs and (v) certain other items that we believe are not indicative of our core operating performances. Adjusted EBITDA PMPM is defined as Adjusted EBITDA divided by the number of at-risk Medicare members each month divided by the number of months in the period. We believe these non‐GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other similar companies. Medical margin represents the amount earned from capitation revenue after medical claims expenses are deducted and medical margin PMPM is defined as medical margin divided by the number of at-risk Medicare members each month divided by the number of months in the period. Medical claims expenses represent costs incurred for medical services provided to our members. As our platform grows and matures over time, we expect medical margin to increase in absolute dollars; however, medical margin PMPM may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically dilutive to medical margin PMPM. Adjusted operating expense is defined as total operating expense excluding depreciation and amortization and costs that management believes are non-core to the underlying operations of the Company, consisting of (i) medical expense, (ii) premium deficiency reserves, (iii) equity-based compensation, and (iv) certain other items that we believe are not indicative or our core operating performance. We do not consider these non‐GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non‐GAAP financial measures. In addition, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. The tables at the end of this press release present a reconciliation of Adjusted EBITDA to net income (loss), medical margin to gross profit, and adjusted operating expense to operating expense, which are the most directly comparable financial measures calculated in accordance with GAAP. Key Performance Metrics In addition to our GAAP and non-GAAP financial information, the Company also monitors "at-risk members" to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. At-risk membership represents the approximate number of Medicare members for whom we receive a fixed percentage of premium under capitation arrangements as of the end of a particular period. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "anticipate," "believe," "budget," "contemplate," "continue," "could," "envision," "estimate," "expect," "guidance," "indicate," "intend," "may," "might," "plan," "possibly," "potential," "predict," "probably," "pro-forma," "project," "seek," "should," "target," or "will," or the negative or other variations thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. These forward-looking statements address various matters, including the Company's future expected growth strategy and operating performance; and the Company's ability to execute on its identified strategic improvement opportunities, all of which reflect the Company's expectations based upon currently available information and data. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected or estimated and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, our ability to continue as a going concern; our potential need to raise additional capital to fund our existing operations or develop and commercialize new services or expand our operations; our ability to achieve or maintain profitability; our ability to maintain compliance with our debt covenants in the future, or obtain required waivers from our lenders if future operating performance were to fall below current projections, and if there are material changes to management's assumptions, we could be required to recognize non-cash charges to operating earnings for goodwill and/or other intangible asset impairment; our ability to identify and develop successful new geographies, physician partners, payors and patients; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; our ability to fund our growth and expand our operations; changes in laws and regulations applicable to our business; our ability to maintain our relationships with health plans and other key payors; the impact of fluctuations in risk adjustments; our ability to establish and maintain effective internal controls and the impact of material weaknesses we have identified; our ability to maintain the listing of our securities on Nasdaq; increased labor costs and medical expense; our ability to recruit and retain qualified team members and independent physicians; and the factors described under Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 28, 2024, and in our subsequent filings with the SEC. All information in this press release is as of the date hereof, and we undertake no duty to update or revise this information unless required by law. You are cautioned not to place undue reliance on any forward-looking statements contained in this press release. P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) June 30, 2025 December 31, 2024 ASSETS CURRENT ASSETS: Cash $ 38,581 $ 38,816 Restricted cash 746 5,286 Health plan receivable, net of allowance for credit losses of $150 93,463 121,266 Clinic fees, insurance and other receivable 7,572 3,947 Prepaid expenses and other current assets 16,169 14,422 Assets held for sale — 403 TOTAL CURRENT ASSETS 156,531 184,140 Property and equipment, net 4,687 5,734 Intangible assets, net 533,400 574,350 Other long-term assets 36,967 19,196 TOTAL ASSETS (1) $ 731,585 $ 783,420 LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 14,395 $ 8,442 Accrued expenses and other current liabilities 29,716 29,416 Accrued payroll 1,162 2,722 Health plan settlements payable 41,871 55,565 Claims payable 256,037 255,089 Premium deficiency reserve 54,439 67,368 Accrued interest 26,923 12,460 Current portion of long-term debt 80,000 65,000 Short-term debt 455 — Liabilities held for sale — 353 TOTAL CURRENT LIABILITIES 504,998 496,415 Operating lease liability 10,308 11,339 Warrant liabilities 4,988 10,312 Long-term debt, net 101,956 89,824 Other Long-Term Liabilities 22,157 26,001 TOTAL LIABILITIES (1) 644,407 633,891 COMMITMENTS AND CONTINGENCIES MEZZANINE EQUITY: Redeemable non-controlling interest 42,719 73,593 STOCKHOLDERS' EQUITY: Class A common stock, $0.0001 par value; 800,000 shares authorized; 3,268 and 3,257 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively — — Class V common stock, $0.0001 par value; 205,000 shares authorized; 3,919 shares issued and outstanding as of June 30, 2025 and December 31, 2024 — — Additional paid in capital 588,494 579,129 Accumulated deficit (544,035 ) (503,193 ) TOTAL STOCKHOLDERS' EQUITY 44,459 75,936 TOTAL LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY $ 731,585 $ 783,420 (1) The Company's condensed consolidated balance sheets include the assets and liabilities of its consolidated variable interest entities ("VIEs"). As discussed in Note 13 "Variable Interest Entities," P3 LLC is itself a VIE. P3 LLC represents substantially all the assets and liabilities of the Company. As a result, the language and amounts below refer only to VIEs held at the P3 LLC level. The condensed consolidated balance sheets include total assets that can be used only to settle obligations of P3 LLC's consolidated VIEs totaling $10.0 million and $9.3 million as of June 30, 2025 and December 31, 2024, respectively, and total liabilities of P3 LLC's consolidated VIEs for which creditors do not have recourse to the general credit of the Company totaled $6.5 million and $14.9 million as of June 30, 2025 and December 31, 2024, respectively. These VIE assets and liabilities do not include $48.3 million and $40.3 million of net amounts due to affiliates as of June 30, 2025 and December 31, 2024, respectively, as these are eliminated in consolidation and not presented within the condensed consolidated balance sheets. All periods presented have been retroactively adjusted to reflect the 1-for-50 reverse stock split effected on April 11, 2025. P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 OPERATING REVENUE: Capitated revenue $ 351,724 $ 374,306 $ 721,241 $ 758,440 Other patient service revenue 4,064 4,851 7,772 9,205 TOTAL OPERATING REVENUE 355,788 379,157 729,013 767,645 OPERATING EXPENSE: Medical expense 351,350 365,171 723,393 747,228 Premium deficiency reserve (5,967 ) (3,397 ) (12,929 ) (2,397 ) Corporate, general and administrative expense 23,295 26,610 48,294 54,011 Sales and marketing expense 151 414 332 736 Depreciation and amortization 21,083 21,693 42,135 43,232 TOTAL OPERATING EXPENSE 389,912 410,491 801,225 842,810 OPERATING LOSS (34,124 ) (31,334 ) (72,212 ) (75,165 ) OTHER INCOME (EXPENSE): Interest expense, net (10,145 ) (5,436 ) (18,870 ) (9,692 ) Mark-to-market of stock warrants 2,002 8,673 5,324 8,889 Other 583 291 901 628 TOTAL OTHER (EXPENSE) INCOME (7,560 ) 3,528 (12,645 ) (175 ) LOSS BEFORE INCOME TAXES (41,684 ) (27,806 ) (84,857 ) (75,340 ) INCOME TAX PROVISION (1,981 ) (968 ) (3,054 ) (3,040 ) NET LOSS (43,665 ) (28,774 ) (87,911 ) (78,380 ) LESS: NET LOSS ATTRIBUTABLE TO REDEEMABLE NON-CONTROLLING INTEREST (23,303 ) (16,754 ) (47,069 ) (47,660 ) NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST $ (20,362 ) $ (12,020 ) $ (40,842 ) $ (30,720 ) NET LOSS PER SHARE: Basic $ (6.23 ) $ (4.40 ) (12.52 ) (12.02 ) Diluted $ (6.23 ) $ (7.37 ) (12.52 ) (15.19 ) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 3,267 2,732 3,263 2,556 Diluted 3,267 2,822 3,263 2,601 All periods presented have been retroactively adjusted to reflect the 1-for-50 reverse stock split effected on April 11, 2025. P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (87,911 ) $ (78,380 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 42,135 43,232 Equity-based compensation 3,271 3,073 Amortization of original issue discount and debt issuance costs 402 (91 ) Mark-to-market adjustment of stock warrants (5,324 ) (8,889 ) Premium deficiency reserve (12,929 ) (2,397 ) Changes in operating assets and liabilities: Health plan receivable 27,803 (34,762 ) Clinic fees, insurance, and other receivable (3,625 ) 775 Prepaid expenses and other current assets (1,747 ) (4,865 ) Other long-term assets (14,464 ) 60 Accounts payable, accrued expenses, and other current liabilities 6,200 30 Accrued payroll (1,560 ) 238 Health plan settlements payable (13,694 ) (12,141 ) Claims payable 948 55,752 Accrued interest 10,619 8,257 Operating lease liability (223 ) (164 ) Net cash used in operating activities (50,099 ) (30,272 ) CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from asset sale 50 — Net cash provided by investing activities 50 — CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from long-term debt, net of original issue discount 45,000 25,000 Payment of debt issuance costs (181 ) — Proceeds from liability-classified warrants and private placement offering, net of offering costs paid — 42,234 Proceeds from at-the-market sales, net of offering costs paid — 33 Deferred offering costs paid — (455 ) Payment of tax withholdings upon settlement of restricted stock unit awards — (103 ) Repayment of short-term and long-term debt (682 ) (1,040 ) Proceeds from short-term debt 1,137 1,871 Net cash provided by financing activities 45,274 67,540 Net change in cash and restricted cash (4,775 ) 37,268 Cash and restricted cash, beginning of period 44,102 40,934 Cash and restricted cash, end of period $ 39,327 $ 78,202 RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA LOSS (in thousands, except PMPM) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net loss $ (43,665 ) $ (28,774 ) $ (87,911 ) $ (78,380 ) Interest expense, net 10,145 5,436 18,870 9,692 Depreciation and amortization 21,083 21,693 42,135 43,232 Income tax provision 1,981 968 3,054 3,040 Mark-to-market of stock warrants (2,002 ) (8,673 ) (5,324 ) (8,889 ) Premium deficiency reserve (5,967 ) (3,397 ) (12,929 ) (2,397 ) Equity-based compensation 1,463 1,624 3,271 3,073 Other(1) (148 ) 2,276 (466 ) 2,012 Adjusted EBITDA loss $ (17,110 ) $ (8,847 ) $ (39,300 ) $ (28,617 ) Adjusted EBITDA loss PMPM $ (50 ) $ (23 ) $ (57 ) $ (38 ) (1) Other during the three and six months ended June 30, 2025 consisted of (i) interest income partially offset by (ii) severance expense in connection with reorganization of workforce and (iii) legal settlements and valuation allowance on our notes receivable. Other during the three and six months ended June 30, 2024 consisted of (i) interest income partially offset by (ii) severance and related expense in connection with our chief executive officer transition and (iii) legal settlements and valuation allowance on our notes receivable. MEDICAL MARGIN (in thousands, except PMPM) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Capitated revenue $ 351,724 $ 374,306 $ 721,241 $ 758,440 Less: medical claims expense (321,109 ) (333,217 ) (673,426 ) (680,799 ) Medical margin $ 30,615 $ 41,089 $ 47,815 $ 77,641 Medical margin PMPM $ 89 $ 107 $ 69 $ 102 RECONCILIATION OF GROSS PROFIT (LOSS) TO MEDICAL MARGIN (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Gross profit (loss) $ 4,438 $ 13,986 $ 5,620 $ 20,417 Other patient service revenue (4,064 ) (4,851 ) (7,772 ) (9,205 ) Other medical expense 30,241 31,954 49,967 66,429 Medical margin $ 30,615 $ 41,089 $ 47,815 $ 77,641 RECONCILIATION OF TOTAL OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Total operating expense $ 389,912 $ 410,491 $ 801,225 $ 842,810 Medical expense (351,350 ) (365,171 ) (723,393 ) (747,228 ) Depreciation and amortization (21,083 ) (21,693 ) (42,135 ) (43,232 ) Premium deficiency reserve 5,967 3,397 12,929 2,397 Equity-based compensation (1,463 ) (1,624 ) (3,271 ) (3,073 ) Other (244 ) (2,541 ) (182 ) (2,593 ) Adjusted operating expense $ 21,739 $ 22,859 $ 45,173 $ 49,081 View source version on Contacts Ryan HalstedInvestor RelationsGilmartin Groupir@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-08-2025
- Business
- Yahoo
Oma Savings Bank Plc's Half-Year Financial Report January-June 2025: Core business on a solid foundation – the improvement of operating models is progressing
OMA SAVINGS BANK PLC, STOCK EXCHANGE RELEASE 4 August 2025 AT 9.05 A.M. EET, HALF-YEAR FINANCIAL REPORTOma Savings Bank Plc's Half-Year Financial Report January-June 2025: Core business on a solid foundation – the improvement of operating models is progressing This release is a summary of Oma Savings Bank's (OmaSp) January-June 2025 Half-Year Financial Report, which can be read from the pdf file attached to this stock exchange release. In addition, alongside with the Half-Year Financial Report, the Company also publishes Disclosure information on capital adequacy and risk management in accordance with the Pillar III as a separate report, available as an attached pdf file. Both reports are also available on the Company's website at Karri Alameri: Core business on a solid foundation – the improvement of operating models is progressing 'The first half of the year has been a period of active and goal-oriented development work within our bank. Significant measures have been taken to strengthen risk management and to improve the regulatory compliance of our operations. Concurrently, the effects of declining interest rates and economic uncertainty have been reflected in our results. Despite this, our business is stable, and our financial position is strong. Efforts to improve risk management and internal operating models are advancing. A new action plan was launched to address observations made by the supervisor in February, with expenses of EUR 2.6 million recorded in the second quarter. This action plan will continue until the end of 2025, laying the foundation for profitable and stable operations in the future. The controlled winding down portfolio is also progressing: the approximately EUR 240 million portfolio related to non-compliance with the guidelines reported a year ago has been reduced to approximately EUR 200 million through various arrangements, and work continues. The risk management action plan (the "Noste") was completed in March, and its effects are already visible in our practices. The comparable profit before taxes for the second quarter was EUR 19.0 (5.5) million, in line with our expectations. The result was still weighed down by the decline in net interest income and the increase in operating expenses. The comparable cost/income ratio was 52.1 (32.9) percent in the second quarter. Comparable operating expenses increased by 38.7 percent in the second quarter, amounting to EUR 30.5 (22.0) million. This increase in expenses is primarily due to the growth in the number of personnel and the expanded branch network, as well as the action plan related to the supervisor's observations. Net interest income decreased by 16.1 percent compared to the comparison period, amounting to EUR 44.0 (52.4) million. This decrease is attributed to market interest rates and the reduction in the loan portfolio. Fee and commission income and expenses (net) totalled EUR 12.4 (12.7) million, which is 2.2 percent less than in the comparison period. The mortgage loan portfolio grew by 1.2 percent from the level of a year ago. Conversely, the loan portfolio of corporate customers decreased by 7.5 percent. The deposit portfolio grew by 7.9 percent. Challenges in the operating environment are reflected in the quality of the loan portfolio. In the second quarter, impairment losses on financial assets were EUR -9.1 (-39.4) million, mainly due to increased payment difficulties caused by the general economic situation, especially in the SME sector. Our goal is profitable growth and satisfied customers The takeover of Handelsbanken's customers has been completed, and we are focusing even more on supporting our customers' daily lives. Oma Savings Bank's nationwide branch network serves private and corporate customers in Finland's key growth and regional centres. Customer satisfaction has remained at a high level, and we are committed to developing expert customer service. Our goal is to build profitable growth with our current strengths – a customer-oriented service model, efficient processes, and responsible management. The commitment of our personnel deserves special recognition, and I extend my gratitude to the entire staff for their excellent performance. The past period has once again demonstrated the dedication, skill, and cooperation within our organisation. Our bank's financial position is strong. The total capital (TC) further strengthened in the second quarter, reaching 18.7 (15.6) percent at the end of June. The accumulated equity was EUR 591 (576) million. I look to the future with confidence. We are focused on improving efficiency, enhancing the customer experience, and restoring trust through concrete actions. Development work continues persistently, and every action brings us closer to a result-driven and sustainable future.' The Group's key figures (1,000 euros) 1-6/2025 1-6/2024 Δ % 1-12/2024 2025 Q2 2024 Q2 Δ % Net interest income 90,895 109,81 -17% 213,097 44,016 52,442 -16% Fee and commission income and expenses, net 24,854 25,465 -2% 50,745 12,415 12,699 -2% Total operating income 119,414 141,576 -16% 270,068 59,34 67,497 -12% Total operating expenses -65,101 -49,389 32% -111,004 -30,861 -23,432 32% Impairment losses on financial assets, net -31,41 -62,535 -50% -83,379 -9,088 -39,423 -77% Profit before taxes 21,721 29,171 -26% 74,589 18,611 4,504 313% Cost/income ratio, % 55.1% 35.0% 57% 41.3% 52.7% 34.8% 51% Balance sheet total 7,366,337 7,284,410 1% 7,709,090 7,366,337 7,284,410 1% Equity 590,742 533,259 11% 576,143 590,742 533,259 11% Return on assets (ROA) % 0.5% 0.6% -27% 0.8% 0.8% 0.2% 326% Return on equity (ROE) % 5.9% 8.7% -32% 10.7% 10.0% 2.6% 287% Earnings per share (EPS), EUR 0.52 0.70 -27% 1.80 0.44 0.10 327% Total capital (TC) ratio % 18.7% 16.6% 13% 15.6% 18.7% 16.6% 13% Common Equity Tier 1 (CET1) capital ratio % 17.6% 15.2% 16% 14.4% 17.6% 15.2% 16% Comparable profit before taxes 23,603 31,136 -24% 86,656 18,986 5,51 245% Comparable cost/income ratio, % 53.3% 33.5% 59% 37.8% 52.1% 32.9% 58% Comparable return on equity (ROE) % 6.4% 9.3% -31% 12.4% 10.2% 3.2% 220% January–June 2025 As a result of the decline in market interest rates and the decline in the loan portfolio, net interest income decreased by 16.1% in the second quarter and in January–June by 17.2% compared to the previous year. Mortgage portfolio increased by 1.2% during the previous 12 months. Corporate loan portfolio decreased by 7.5% during the previous 12 months. Deposit base increased by 7.9% over the past 12 months. In the second quarter, fee and commission income and expenses (net) decreased by 2.2% totalling EUR 12.4 (12.7) million. In January–June, fee and commission income and expenses (net) decreased by 2.4%. The development is mainly due to lower commission income related to lending and card business than in the comparison period. In the second quarter, total operating income decreased by 12.1% and in January–June by 15.7% compared to the comparison period. In the second quarter, comparable total operating income decreased by 11.5% and was EUR 59.4 million. In the second quarter, total operating expenses grew by 31.7%. The growth is mainly explained by the Company's increased number of personnel and the expanded branch network. In addition, the Company has ongoing development projects related to the improvement of risk management processes and measures required by the supervisor's observations. In January–June total operating expenses grew by 31.8%. In the second quarter, other operating expenses were in total EUR 17.2 (12.5) million and in January–June EUR 39.4 (28.9) million. In the first quarter, the Company received the supervisor's final reports on the supervisor's review as well as liquidity risk management and reporting conducted in 2024. In the second quarter, the Company started the implementation of the action plans to correct the observations made by the supervisor, and a total of EUR 2.6 million in expenses were recorded. The implementation of the action plans continues until the end of the financial year 2025. The risk management action plan (the "Noste") was completed during the first quarter and no related expenses were recorded in the second quarter. Investigation costs of EUR 0.3 million were recorded in relation to the promotion of measures in the controlled winding down of the portfolio related to non-compliance with the guidelines. In the second quarter, comparable total operating expenses grew by 38.7% and were EUR 30.5 (22.0) million. In the second quarter, the impairment losses on financial assets were in total EUR -9.1 (-39.4) million. Impairment losses are primarily attributable to increased payment difficulties stemming from the generally weak economic environment, particularly within the SME sector and, due to higher provision level under the ECL model as default durations have lengthened. During the comparison period, the Company recorded an additional discretionary allowance of EUR 30 million related to non-compliance with the guidelines and the outcome of the screening of the credit portfolio. For January–June, the total impairment losses on financial assets were EUR -31.4 (-62.5) million. In the summer of 2024, the Company announced a credit portfolio analysis related to the non-compliance with the guidelines, according to which the portfolio related to the non-compliance with the guidelines represented approximately 4% of the Company's credit portfolio, amounting to approximately EUR 240 million. In this regard, the Company launched a controlled winding down plan in the second half of 2024. As a result of various arrangements, the size of the credit portfolio related to non-compliance with the guidelines was approximately EUR 200 million on 30 June 2025, representing 3.4% of the total credit portfolio. In the future, the Company will report on the status of the credit portfolio related to non-compliance with the guidelines on a semi-annual basis. For the second quarter, profit before taxes was EUR 18.6 (4.5) million and comparable profit before taxes was EUR 19.0 (5.5) million. For January–June, profit before taxes was EUR 21.7 (29.2) million and comparable profit before taxes was EUR 23.6 (31.1) million. In the second quarter, the cost/income ratio was 52.7 (34.8)% and in January–June, 55.1 (35.0)%. In the second quarter, comparable cost/income ratio was 52.1 (32.9)% and in January–June, comparable cost/income ratio was 53.3 (33.5)%. In the second quarter, comparable return on equity (ROE) was 10.2 (3.2)% and in January–June, 6.4 (9.3)%. Total capital (TC) ratio was 18.7 (15.6)%. Outlook for 2025 (updated on 15 June 2025) Oma Savings Bank Plc (OmaSp) lowered its earnings guidance for year 2025 as the Company's cost level is expected to remain high throughout the 2025 financial year due to investments in risk management and quality processes, increased headcount, and efforts to address the findings of the Finnish Financial Supervisory Authority's (FIN-FSA) inspection. In addition, the update of the ECL model implemented during the first quarter has increased the level of credit loss provisions more than anticipated. Furthermore, fee and commission income is expected to grow more slowly than anticipated in the prevailing economic environment. The Company estimates the Group's comparable profit before taxes is EUR 50-65 million for the financial year 2025. Business outlook and earnings guidance for the financial year 2025 (updated on 15 June 2025): The outlook for the Company's business for the financial year 2025 is affected by the decline in market interest rates and the continued high level of costs 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 50–65 million for the financial year 2025, (comparable profit before taxes was EUR 86.7 million in the financial year 2024). Oma Savings Bank Plc Additional information: Karri Alameri, CEO, tel. +358 45 656 5250, Sarianna Liiri, CFO, tel. +358 40 835 6712, Pirjetta Soikkeli, CCO, tel. +358 40 750 0093, DISTRIBUTION Nasdaq Helsinki Ltd Major media OmaSp is a solvent and profitable Finnish bank. Over 600 professionals provide nationwide services through OmaSp's 48 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. Attachments OmaSp Half-Year Financial Report 30 June 2025 OmaSp Pillar III Disclosure Report on capital adequacy and risk management 30 June 2025 Attachments Oma Savings Bank Half Year Report 30 June 2025 Pillar III Disclosure Report on capital adequacy and risk management 30 June 2025Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
