Bank of Åland Plc: Half-Year Financial Report for

Bank of Åland Plc Half-Year Financial Report July 20, 2018 9:00 am 

Half-Year Financial Report for the period January - June 2018

“We performed well during the first half of 2018, achieving our long-term financial targets even though the period was largely dominated by the implementation of extensive new regulations.

“We enjoyed a good influx of new Private Banking customers, especially in Sweden. Because of Swedish housing market instability and pricing levels we are seeing in Finland that are reminiscent of those we saw in our loan portfolio in 2008 – before the financial crisis – we have been more restrictive with new lending.” Peter Wiklöf, Managing Director

January−June 2018 compared to January-June 2017  

• Net operating profit increased by 21 per cent to EUR 14.9M (12.3).
• Profit for the period attributable to shareholders increased by 19 per cent to EUR 11.7 M (9.8).
• Net interest income increased by 1 per cent to EUR 27.9 M (27.5).
• Net commission income rose by 3 per cent to EUR 25.8 M (24.9).
• Total expenses decreased by 1 per cent to EUR 49.8 M (50.2).
• Net impairment losses on financial assets (including recoveries) totalled EUR 0.7 M (1.0), equivalent to a loan loss level of 0.03 (0.05) per cent.
• Return on equity after taxes (ROE) amounted to 10.2 (8.8) per cent.
• Earnings per share amounted to EUR 0.76 (0.64).
• The common equity Tier 1 ratio amounted to 12.8 per cent (12.9 on December 31, 2017).
• Unchanged future outlook: The Bank of Åland expects its net operating profit in 2018 to be at about the same level as, or better than, in 2017.

The second quarter of 2018 compared to the second quarter of 2017  

• Net operating profit increased by 51 per cent to EUR 7.5 M (5.0).
• Profit for the period attributable to shareholders increased by 50 per cent to EUR 5.9 M (3.9).
• Net interest income increased by 2 per cent to EUR 13.8 M (13.6).
• Net commission income decreased by 2 per cent to EUR 12.6 M (12.8).
• Total expenses decreased by 2 per cent to EUR 24.5 M (25.1).
• Net impairment losses on financial assets (including recoveries) totalled EUR 0.5 M (0.5), equivalent to a loan loss level of 0.05 (0.05) per cent.
• Return on equity after taxes (ROE) amounted to 10.2 (7.0) per cent.
• Earnings per share amounted to EUR 0.38 (0.26).

Financial summary

^{1 Actively managed assets encompassed managed assets in the Group’s own mutual funds, as well as discretionary and advisory securities volume 2 Profit for the report period attributable to shareholders / Average shareholders´portion of equity capital. 3 Expenses / Income. 4 Impaiment losses on loans and other commitments from lending to the public / Lending to the public at the beginning of the period. 5 Liquidity coverage ratio (LCR) = liquid assets, level 1 and 2 / 30-day net outflow 6 Lending to the public / Deposits from the public 7 Lending to the public / Deposits including certificates of deposit, index bonds and debentures issued to the public plus covered bonds issued 8 Equity capital / Balance sheet total. 9 (Common equity Tier 1 capital / Capital requirement) x 8%. 10 Shareholders’ portion of earnings for the period / Avarage number of shares. 11 Shareholders’ portion of equity capital / Number of shares less own shares on closing day. IFRS 9 has been applied starting on January 1, 2018. Figures from historical periods have not been restated.}

The Bank of Åland (Ålandsbanken) follows the disclosure procedure stipulated in "Disclosure obligation of the issuer (7/2013)", published by the Finnish Financial Supervisory Authority and hereby publishes its Half-Year Financial Report for the period January – June 2018, which is enclosed with this stock exchange release. The Bank`s Half-Year Financial Report for the period January – June 2018 is attached to this release in PDF format and is also available on the company’s web site at https://www.alandsbanken.com/uploads/pdf/resu...jun_18.pdf

Mariehamn, July 20, 2018 

THE BOARD OF DIRECTORS

For more information please contact:

Peter Wiklöf, Managing Director and Chief Executive, Bank of Åland Plc, tel. + 358 (0)40 512 7505

Attachment

• Half-Year Financial Report for the period January - June 2018