Bank of Åland Plc: Half-Year Financial Report for the period January - June 2020

17 heinäkuuta 2020
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Bank of Åland Plc
Half-Year Financial Report
July 17, 2020 9:00 am


 

Half-Year Financial Report for the period January - June 2020

“Looking at net operating profit, the second quarter (EUR 9.8 M) was the best we have ever achieved.

“Our operating profit before impairment losses − which largely consist of provisions for possible future coronavirus effects − was 40 per cent better than in the first half of last year. We achieved this through a clearly higher income level, in which our Swedish operations made especially great progress.

“We are not yet seeing any rising levels of non-performing loans due to the pandemic, but we expect its negative impact to be more clearly visible this coming winter.”

Peter Wiklöf, Managing Director and Chief Executive

January - June 2020 compared to January - June 2019

• Net operating profit increased by 15 per cent to EUR 16.7 M (14.5).

• Profit for the period attributable to shareholders rose by 14 per cent to EUR 13.2 M (11.5).

• Net interest income increased by 10 per cent to EUR 29.3 M (26.5).

• Net commission income increased by 17 per cent to EUR 32.6 M (27.9).

• Total expenses increased by 7 per cent to EUR 53.0 M (49.4).

• Net impairment losses on financial assets (including recoveries) totalled EUR 4.6 M (0.6), equivalent to a loan loss level of 0.22 (0.03) per cent.

• Return on equity after taxes (ROE) increased to 10.1 (9.6) per cent.

• Earnings per share increased by 14 per cent to EUR 0.85 (0.74).

• The common equity Tier 1 ratio increased to 14.5 per cent (13.4 on December 31, 2019).

• Future outlook: Due to low visibility and high volatility in the market, until further notice the Bank of Åland has decided to refrain from issuing any outlook for 2020.

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

• Net operating profit increased by 12 per cent to EUR 9.8 M (8.7).

• Profit for the period attributable to shareholders rose by 12 per cent to EUR 7.8 M (6.9).

• Net interest income increased by 11 per cent to EUR 14.8 M (13.4).

• Net commission income increased by 14 per cent to EUR 15.7 M (13.8).

• Total expenses increased by 10 per cent to EUR 25.8 M (23.4).

• Net impairment losses on financial assets (including recoveries) totalled EUR 0.8 M (0.2), equivalent to a loan loss level of 0.08 (0.01) per cent.

• Return on equity after taxes (ROE) increased to 11.8 (11.5) per cent.

• Earnings per share increased by 11 per cent to EUR 0.50 (0.45).

Financial summary

GroupQ1
2020
Q1
2020
 %Q2
2019
 %Jan-Jun
2020
Jan-Jun
2019
%
EUR M        
Income         
Net interest income14.814.5313.41129.326.510
Net commission income15.716.9-713.81432.627.917
Net income from financial items at fair value0.00.7-940.8-940.81.2-33
Other income5.75.804.33311.58.929
Total income36.337.9-432.31274.264.615
         
Staff costs-15.6-15.23-14.57-30.7-29.06
Other expences-7.1-9.0-21-6.018-16.1-14.89
Depreciation/amortisation-3.1-3.1-1-2.88-6.1-5.78
Total expenses-25.8-27.2-5-23.410-53.0-49.47
         
Profit before impairment losses10.610.7-28.91921.315.140
         
Impairment losses on financial assets, net-0.8-3.8-79-0.2 -4.6-0.6 
Net operating profit9.86.9418.71216.714.515
         
Income taxes-2.0-1.534-1.813-3.5-3.017
Profit for the report period7.85.4436.91213.211.514
Attributable to:        
Shareholders in Bank of Åland Plc7.85.4436.91213.211.514
         
Volume        
Receivables from the public and public sector4,1884,07634,0015   
Deposits from the public and public sector3,4593,40913,2257   
Actively managed assets 16,1075,431125,6518   
Equity capital271258524212   
Balance sheet total5,7085,59925,5144   
Risk exposure amount1,6611,58951,5775   
         
Financial ratios        
Return on equity after taxes, % (ROE) 211.88.4 11.5 10.19.6 
Return on equity after taxes, % (ROE),
moving 12-month avarage to end of report period
11.010.9 10.0    
Expence/income ratio 30.710.72 0.72 0.710.77 
Loan loss level, % 40.080.37 0.01 0.220.03 
Liquidity coverage ratio (LCR), % 5142146 165    
Loan/deposit ratio, % 6121120 124    
Core funding ratio, % 79589 89    
Equity/assets ratio, % 84.84.6 4.4    
Common equtiy Tier 1 capital ratio, % 914.4814.40 13.30    
Earnings per share, EUR 100.500.35420.45110.850.7414
Earnings per share after dilution, EUR0.500.35420.45120.850.7414
Earnings per share, EUR, moving 12-month average to the end of report period1.801.7531.5417   
Equity capital per share, EUR 1117.4116.54515.5912   
Equity capital per share after dilution, EUR17.4116.54515.5412   
Market price per Series A share, EUR17.3017.00214.6018   
Market price per Series B share, EUR16.8515.70714.5516   
Number of shares outstanding, 000s15,58615,586015,5250   
Number of shares outstanding, after dilution, 000s15,59915,600015,5950   
Working hours re-calculated to full-time equivalent positions744720370267346946

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 Half-Year Financial Report for the period January – June 2020, which is enclosed with this stock exchange release. The Bank`s Half-Year Financial Report for the period January – June 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-jun_20.pdf

Mariehamn, July 17, 2020

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


 


 

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