Oma Sp is a Finnish bank that has been performing exceptionally well in recent years, with strong growth and profitability. However, despite its high expectations, the bank’s valuation does not reflect its success. According to Inderes’ analysis, Oma Sp is one of the cheapest shares on the Helsinki Stock Exchange, with a p/e ratio below 6. This is due to the fact that the bank’s growth has been driven by organic lending rather than asset management services.
In the last quarter, Oma Sp made an excellent result but was slightly disappointing for investors. The bank’s interest rate cap pool swelled along with rising market interest rates. Despite this, the company’s return on equity rose to 21.5% in 2022, which was above its yearly average of 16%. In comparison, a return on equity of 12-13% is generally considered strong for banks.
While asset management services may slow down Oma Sp’s growth in the future, the bank has shown great potential for expansion into financial management services in addition to its current focus on retail banking and lending services through both its own balance sheet and brokering partners’ products.