Bank of Åland Plc:  Year-end Report for the period January–December 2020

05 helmikuuta 2021
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Bank of Åland Plc
Stock Exchange Release
February 5, 2021, 9.00 a.m.


Year-end Report for the period January–December 2020

“We followed up the record year 2019 by increasing our net operating profit by another 20 per cent to EUR 39.7 M in 2020. We did this during a year with very special conditions. I am proud of the skill our organisation showed when it quickly repositioned itself and adapted to the prevailing circumstances.

“During the fourth quarter, we generated a return on equity of 13.6 per cent and our best-ever quarterly net operating profit, EUR 12.3 M. Because of continued inflows of assets under management during the quarter, volume increased by 17 per cent during 2020 to EUR 7,436 M. We can thus report record volumes on every line, since both our deposits (EUR 3,605 M) and our lending (EUR 4,378 M) grew by 7 per cent during the year."

Peter Wiklöf, Managing Director and Chief Executive

January – December 2020 compared to January – December 2019

  • Net operating profit increased by 20 per cent to EUR 39.7 M (33.2).

  • Net interest income increased by 9 per cent to EUR 58.9 M (53.9).

  • Net commission income increased by 14 per cent to EUR 66.3 M (58.0).

  • Total expenses increased by 8 per cent to EUR 105.6 M (97.5).

  • Net impairment losses on financial assets (including recoveries) totalled EUR 4.9 M (3.2), equivalent to a loan loss level of 0.11 (0.08) per cent.

  • Return on equity after taxes (ROE) increased to 11.6 (10.7) per cent.

  • Earnings per share increased by 19 per cent to EUR 2.02 (1.69).

  • The common equity Tier 1 ratio rose to 14.3 per cent (13.4).

  • Future outlook: The Bank of Åland expects its net operating profit in 2021 to be at about the same level as in 2020.

  • Dividend: The Board of Directors proposes that the Annual General Meeting approve payment of a regular dividend of EUR 1.00 per share for the 2020 financial year.

The fourth quarter of 2020 compared to the fourth quarter of 2019

  • Net operating profit increased by 35 per cent to EUR 12.3 M (9.1).

  • Net interest income increased by 6 per cent to EUR 14.9 M (14.0).

  • Net commission income increased by 13 per cent to EUR 18.5 M (16.3).

  • Total expenses increased by 9 per cent to EUR 27.8 M (25.5).

  • Net impairment losses on financial assets (including recoveries) totalled EUR 0.0 M (1.8), equivalent to a loan loss level of -0.04 (0.18) per cent.

  • Return on equity after taxes (ROE) increased to 13.6 (11.4) per cent.

  • Earnings per share increased by 35 per cent to EUR 0.63 (0.46).


Financial summary

GroupQ4
2020
Q3
2020
 %Q4
2019
 %Jan-Dec
2020
Jan-Dec
2019
%
EUR M        
Income         
Net interest income14.914.7114.0658.953.99
Net commission income18.515.22116.31366.358.014
Net income from financial items at fair value0.40.6-331.1-611.83.9-53
Other income6.35.3215.02623.118.127
Total income40.135.81236.410150.1133.912
         
Staff costs-16.9-15.310-14.615-62.9-57.010
Other expences-7.9-6.424-7.64-30.3-28.76
Depreciation/amortisation-3.1-3.1-1-3.3-8-12.3-11.84
Total expenses-27.8-24.812-25.59-105.6-97.58
         
Profit before impairment losses12.311.01210.91344.636.422
         
Impairment losses on financial assets, net0.0-0.3 -1.8 -4.9-3.251
Net operating profit12.310.7159.13539.733.220
         
Income taxes-2.5-2.217-1.932-8.2-6.920
Profit for the report period9.88.5147.23631.526.320
Attributable to:        
Shareholders in Bank of Åland Plc9.88.5157.23631.526.320
         
Volume        
Receivables from the public and public sector4.3784.22144.1107   
Deposits from the public and public sector3.6053.45943.3687   
Actively managed assets 17.4366.547146.34317   
Equity capital292280425813   
Balance sheet total6.0355.72655.6078   
Risk exposure amount1.6711.693-11.5836   
         
Financial ratios        
Return on equity after taxes, % (ROE) 213.612.3 11.4 11.610.7 
Return on equity after taxes, % (ROE), moving
12-month avarage to end of report period
11.611.0 10.7    
Expence/income ratio 30.690.69 0.70 0.700.73 
Loan loss level, % 4-0.040.03 0.18 0.110.08 
Liquidity coverage ratio (LCR), % 5159138 139    
Loan/deposit ratio, % 6121122 122    
Core funding ratio, % 79696 90    
Equity/assets ratio, % 84.84.9 4.6    
Common equtiy Tier 1 capital ratio, % 914.313.4 13.4    
Earnings per share, EUR 100.630.55150.46352.021.6919
Earnings per share after dilution, EUR0.630.55150.46362.021.6919
Earnings per share, EUR, moving
12-month average to the end of report period
2.021.8691.6919   
Equity capital per share, EUR 1118.7617.95416.6113   
Equity capital per share after dilution, EUR18.7617.95516.5913   
Market price per Series A share, EUR21.6018.801517.0027   
Market price per Series B share, EUR20.9018.801116.5526   
Number of shares outstanding, 000s15.58615.586 15.5510   
Number of shares outstanding, after dilution, 000s15.63415.598015.6010   
Working hours re-calculated to full-time equivalent positions7707730700107517007


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 Liquidity coverage ratio (LCR) = liquid assets, level 1 and 2 / 30-day net outflow
6 Receivables from the public and public sector / Deposits from the public and public sector
7 Receivables from the public and public sector / Deposits including certificates of deposit, index bonds and debentures issued to the public and public sector plus covered bonds issued
8 Equity capital / Balance sheet total
9 Common equity Tier 1 capital / Risk exposure amount
10 Shareholders’ portion of earnings for the period / Avarage number of shares
11 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 Year-end Report for the period January – december 2020, which is enclosed with this stock exchange release. The Bank`s Year-end Report for the period January – december 2020 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/result/en_resultat_jan-dec_20.pdf

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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