Oma Säästöpankki investigation reveals credit manipulation in Seinäjoki
An investigation into the loan portfolio of Oma Säästöpankki (OmaSP) has been completed, revealing manipulation within its credit process from within the bank itself. Following the discovery, the bank commissioned an external international firm to conduct a thorough examination of its loan portfolio.
The first part of the investigation addressed the entire credit portfolio, while the second focused on specific loans where violations of guidelines were observed. Each loan was analyzed in detail, according to Jaakko Ossa, the chairman of the bank’s board. Fortunately, the investigation did not uncover further unexpected issues.
The report indicated that the problematic transactions amounted to approximately 240 million euros of the bank’s loan book. Ossa expressed relief, stating that they had received external confirmation that the total loan portfolio, amounting to six billion euros, is entirely clean.
OmaSP also announced a negative profit warning concerning its financial situation, which has been worsening. The publicly listed company, based in Seinäjoki, issued this warning on Wednesday. A half-year financial report is scheduled to be released next Monday, with predictions showing a significant drop in profit compared to estimates made in April.
Ossa noted that while loan losses are a normal occurrence, incidence related to guideline violations is particularly concerning. He confirmed that the distorted lending practices were linked to the real estate sector across Finland, where it appears client relationships were improperly formed, distorting risk management and going unnoticed for too long.
The bank had previously stated that only one employee was involved in the guideline violations. OmaSP has also filed a police report concerning the company’s former director. Ossa reassured that the bank remains on solid ground and is committed to improving risk management practices, as they have received numerous development suggestions from the external firm involved.