Bank of Åland Plc: Half-Year Financial Report for the period January - June 2019

18 heinäkuuta 2019
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Bank of Åland Plc
Half-Year Financial Report
July 18, 2019 9:00 am

 

Half-Year Financial Report for the period January - June 2019

”In terms of earnings, one of our best quarters ever. Net commission income and total expenses developed satisfactorily. Net interest income decreased due to a lower risk level, where we actively downweighted high-margin lending for commercial properties in favour of lending to private individuals. Net commission income has now surpassed net interest income in size, which shows our ability to generate income from less capital-intensive operations."

Peter Wiklöf, Managing Director and Chief Executive

January−June 2019 compared to January - June 2018

  • Net operating profit increased by 7 per cent to EUR 14.5 M (13.6).
  • Profit for the period attributable to shareholders rose by 8 per cent to EUR 11.5 M (10.6).
  • Net interest income decreased by 5 per cent to EUR 26.5 M (27.9).
  • Net commission income increased by 1 per cent to EUR 27.9 M (27.7).
  • Total expenses decreased by 3 per cent to EUR 49.4 M (51.1).
  • Net impairment losses on financial assets (including recoveries) totalled EUR 0.6 M (0.7), equivalent to a loan loss level of 0.03 (0.03) per cent.
  • Return on equity after taxes (ROE) amounted to 9.6 (9.3) per cent.
  • Earnings per share increased to EUR 0.74 (0.69).
  • The common equity Tier 1 ratio amounted to 13.3 per cent (13.0 on December 31, 2018).
  • Unchanged future outlook: The Bank of Åland expects its net operating profit in 2019 to be at about the same level as in 2018.

The second quarter of 2019 compared to the second quarter of 2018

  • Net operating profit increased by 4 per cent to EUR 8.7 M (8.4).
  • Profit for the period attributable to shareholders rose by 5 per cent to EUR 6.9 M (6.6).
  • Net interest income decreased by 3 per cent to EUR 13.4 M (13.8).
  • Net commission income increased by 3 per cent to EUR 13.8 M (13.4).
  • Total expenses decreased by 1 per cent to EUR 23.4 M (23.6).
  • Net impairment losses on financial assets (including recoveries) totalled EUR 0.2 M (0.5), equivalent to a loan loss level of 0.01 (0.05) per cent.
  • Return on equity after taxes (ROE) amounted to 11.5 (11.5) per cent.
  • Earnings per share amounted to EUR 0.45 (0.43).

Financial summary

GroupQ2
2019
Q1
2019
 %Q2
2018
 %Jan-Jun
2019
Jan-Jun 2018%
EUR M        
Income         
Net interest income13.413.2213.8-326.527.9-5
Net commission income13.814.1-213.4327.927.71
Net income from financial items at fair value0.80.4850.9-181.21.3-12
Other income4.34.6-64.4-18.98.55
Total income32.332.3032.5-164.665.4-1
         
Staff costs-14.5-14.50-14.50-29.0-29.5-2
Other expences-6.0-8.7-31-7.3-18-14.8-17.9-17
Depreciation/amortisation-2.8-2.8-1-1.854-5.7-3.754
Total expenses-23.4-26.0-10-23.6-1-49.4-51.1-3
         
Profit before impairment losses8.96.2438.9015.114.36
         
Impairment losses on financial assets, net-0.2-0.4-62-0.5-64-0.6-0.7-9
Net operating profit8.75.8518.4414.513.67
         
Income taxes-1.8-1.247-1.8-2-3.0-2.92
Profit for the report period6.94.6516.6511.510.68
Attributable to:        
Shareholders in Bank of Åland Plc6.94.6526.6511.510.68
         
Volume        
Receivables from the public and public sector4,0014,01703,9631   
Deposits from the public and public sector3,2253,10743,0954   
Actively managed assets 15,6375,47635,6500   
Equity capital242247-22295   
Balance sheet total5,5145,542-15,3014   
Risk exposure amount1,5771,54821,5750   
         
Financial ratios        
Return on equity after taxes, % (ROE) 211.57.6 11.5 9.69.3 
Return on equity after taxes, % (ROE), moving
12-month avarage to end of report period
10.09.9 9.4    
Expence/income ratio 30.720.81 0.73 0.770.78 
Loan loss level, % 40.010.05 0.05 0.030.03 
Liquidity coverage ratio (LCR), % 5165171 135    
Loan/deposit ratio, % 6124129 128    
Core funding ratio, % 78990 90    
Equity/assets ratio, % 84.44.5 4.3    
Common equtiy Tier 1 capital ratio, % 913.313.4 12.7    
Earnings per share, EUR 100.450.30510.4350.740.698
Earnings per share after dilution, EUR0.450.30510.4250.740.688
Earnings per share, EUR, moving 12-month
average to the end of report period
1.541.5211.4010   
Equity capital per share, EUR 1115.5915.91-214.855   
Equity capital per share after dilution, EUR15.5415.86-214.755   
Market price per Series A share, EUR14.6015.10-314.501   
Market price per Series B share, EUR14.5514.20213.508   
Number of shares outstanding, 000s15,52515,525 15,4481   
Number of shares outstanding, after dilution, 000s15,59515,595015,5860   
Working hours re-calculated to full-time equivalent positions702683369316946861

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 / Receivables from the public and public sector 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 coveredbonds 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 2019, which is enclosed with this stock exchange release. The Bank`s Half-Year Financial Report for the period January – June 2019 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_19.pdf

Mariehamn, July 18, 2019

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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