Bank of Åland Plc: Interim Report for the period January - March 2021
Bank of Åland Plc
Interim Report
April 27, 2021 9.00 am
Interim Report for the period January - March 2021
“We are starting 2021 with continued good growth, where the inflow of new customers and volume in our asset management operations has been especially strong. The quarterly net operating profit of EUR 10.8 M (6.9) was the best-ever start of a year for us. This was also true of our return on equity after taxes, which ended up at 12.5 (8.4) per cent.
“We are continuing to invest in additional employees and IT, which raises our total expenses, but this will also make us prepared for further growth. Our credit quality remains good, and we are not yet seeing any rising volumes of non-performing loans due to the pandemic.”
Peter Wiklöf, Managing Director and Chief Executive
- Net operating profit increased by 56 per cent to EUR 10.8 M (6.9).
- Net interest income increased by 5 per cent to EUR 15.2 M (14.5).
- Net commission income increased by 16 per cent to EUR 19.6 M (16.9).
- Total expenses increased by 12 per cent to EUR 30.5 M (27.2).
- Net impairment losses on financial assets (including recoveries) totalled EUR 0.1 M (3.8), equivalent to a loan loss level of 0.02 (0.37) per cent.
- Return on equity after taxes (ROE) increased to 12.5 (8.4) per cent.
- Earnings per share increased by 58 per cent to EUR 0.55 (0.35).
- The common equity Tier 1 ratio capital decreased to 14.2 per cent (14.3 per cent on December 31, 2020).
- Unchanged future outlook: The Bank of Åland expects its net operating profit in 2021 to be at about the same level as in 2020.
Financial summary
| Group | Q1 2021 | Q4 2020 | % | Q1 2020 | % |
| EUR M | |||||
| Income | |||||
| Net interest income | 15.2 | 14.9 | 2 | 14.5 | 5 |
| Net commission income | 19.6 | 18.5 | 6 | 16.9 | 16 |
| Net income from financial items at fair value | 0.4 | 0.4 | -13 | 0.7 | -51 |
| Other income | 6.2 | 6.3 | -2 | 5.8 | 7 |
| Total income | 41.4 | 40.1 | 3 | 37.9 | 9 |
| Staff costs | -17.4 | -16.9 | 3 | -15.2 | 15 |
| Other expences | -10.2 | -7.9 | 29 | -9.0 | 13 |
| Depreciation/amortisation | -2.9 | -3.1 | -5 | -3.1 | -5 |
| Total expenses | -30.5 | -27.8 | 10 | -27.2 | 12 |
| Profit before impairment losses | 10.9 | 12.3 | -12 | 10.7 | 1 |
| Impairment losses on financial assets, net | -0.1 | 0.0 | -3.8 | -98 | |
| Net operating profit | 10.8 | 12.3 | -12 | 6.9 | 56 |
| Income taxes | -2.2 | -2.5 | -14 | -1.5 | 45 |
| Profit for the report period | 8.6 | 9.8 | -12 | 5.4 | 58 |
| Attributable to: | |||||
| Shareholders in Bank of Åland Plc | 8.6 | 9.8 | -12 | 5.4 | 58 |
| Volume | |||||
| Lending to the public | 4,419 | 4,378 | 1 | 4,076 | 8 |
| Deposits from the public | 3,529 | 3,605 | -2 | 3,409 | 4 |
| Actively managed assets 1 | 7,808 | 7,436 | 5 | 5,431 | 44 |
| Equity capital | 298 | 292 | 2 | 258 | 15 |
| Balance sheet total | 6,089 | 6,035 | 1 | 5,599 | 9 |
| Risk exposure amount | 1,688 | 1,670 | 1 | 1,589 | 6 |
| Financial ratios | |||||
| Return on equity after taxes, % (ROE) 2 | 12.5 | 13.6 | 8.4 | ||
| Return on equity after taxes, % (ROE), moving 12-month average to end of report period | 12.6 | 11.6 | 10.9 | ||
| Expense/income ratio 3 | 0.74 | 0.69 | 0.72 | ||
| Loan loss level, % 4 | 0.02 | -0.04 | 0.37 | ||
| Gross share of loans in Stage 3, % 5 | 0.92 | 0.89 | 0.85 | ||
| Liquidity coverage ratio (LCR), % 6 | 165 | 159 | 146 | ||
| Net stable funding ratio (NSFR), % 7 | 106 | 106 | 119 | ||
| Loan/deposit ratio, % 8 | 125 | 121 | 120 | ||
| Common equtiy Tier 1 capital ratio, % 9 | 14.2 | 14.3 | 14.4 | ||
| Tier 1 capital ratio, % 10 | 15.9 | 14.3 | 14.4 | ||
| Total capital ratio, % 11 | 18.1 | 16.5 | 16.6 | ||
| Leverage ratio, % 12 | 4.7 | 4.2 | 4.0 | ||
| Earnings per share, EUR 13 | 0.55 | 0.63 | -12 | 0.35 | 58 |
| Earnings per share, EUR, moving 12-month average to end of report period | 2.22 | 2.02 | 10 | 1.75 | 27 |
| Equity capital per share, EUR 14 | 17.19 | 18.76 | -8 | 16.54 | 4 |
| Working hours re-calculated to full-time equivalent positions | 790 | 770 | 3 | 720 | 10 |
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 Impairment losses on loan portfolio and other commitments / Lending to the public at the beginning of the period
5 Share of loans in Stage 3 / Gross lending to the public
6 LCR, assets at levels 1 and 2 / 30-day net cash outflow
7 Available stable funding / Stable funding requirement
8 Lending to the public / Deposits from the public
9 Common equity Tier 1 capital / Risk exposure amount
10 Tier 1 capital / Risk exposure amount
11 Own funds / Risk exposure amount
12 Tier 1 capital / Total exposure metric
13 Shareholders’ portion of profit for the period / Average number of share
14 Shareholders’ portion of equity capital / Number of shares on closing day
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 Interim Report for the period January – March 2021, which is enclosed with this stock exchange release. The Bank`s Interim Report for the period January – March 2021 is attached to this release in PDF format and is also available on the company’s web site at
For more information please contact:
Peter Wiklöf, Managing Director and Chief Executive, Bank of Åland, tel. + 358 (0)40 512 7505
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