Bank of Åland Plc: Interim Report for the period January-March 2020

24 huhtikuuta 2020
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Bank of Åland Plc
Interim Report
April 24, 2020 9.00 am


Interim Report for the period January-March 2020

“The Bank of Åland began this year with higher income. Net interest income of EUR 14.5 M was 10 per cent better and net commission income of EUR 16.9 M was 20 per cent better than in the corresponding period of 2019. The Bank’s operating profit before impairment losses was 72 per cent better than in the same period last year.

“Everyone knows that the coronavirus pandemic will lead to a far-reaching economic downturn, but no one knows how long and deep it will be. The Bank of Åland is preparing itself for this economic downturn by significantly increasing its model-driven impairment loss reserves and taking a total of EUR 3.8 M in impairment losses (EUR 0.4 M in Q1 2019).

“The net operating profit of the Bank in the first quarter of 2020 rose by 19 per cent to EUR 6.9 M, which is satisfactory under the prevailing circumstances.”

Peter Wiklöf, Managing Director and Chief Executive

January-March 2020 compared to January-March 2019

  • Net operating profit increased by 19 per cent to EUR 6.9 M (5.8).

  • Profit for the period attributable to shareholders rose by 19 per cent to EUR 5.4 M (4.6).

  • Net interest income increased by 10 per cent to EUR 14.5 M (13.2).

  • Net commission income increased by 20 per cent to EUR 16.9 M (14.1).

  • Total expenses increased by 4 per cent to EUR 27.2 M (26.0).

  • Net impairment losses on financial assets (including recoveries) totalled EUR 3.8 M (0.4), equivalent to a loan loss level of 0.37 (0.05) per cent.

  • Return on equity after taxes (ROE) increased to 8.4 (7.6) per cent.

  • Earnings per share increased by 18 per cent to EUR 0.35 (0.30).

  • The common equity Tier 1 ratio increased to 14.4 per cent (13.4).

  • Revised 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.

Financial summary

Group Q1
2020
Q4 
2019
         %Q1
2019
          %
EUR M     
Income      
Net interest income14.514.0313.210
Net commission income16.916.3414.120
Net income from financial items at fair value0.71.1-320.480
Other income5.85.0154.626
Total income37.936.4432.318
      
Staff costs-15.2-14.64-14.55
Other expences-9.0-7.618-8.73
Depreciation/amortisation-3.1-3.3-8-2.88
Total expenses-27.2-25.57-26.04
      
Profit before impairment losses10.710.9-26.272
      
Impairment losses on financial assets, net-3.8-1.8 -0.4 
Net operating profit6.99.1-245.819
      
Income taxes-1.5-1.9-22-1.223
Profit for the report period5.47.2-244.618
Attributable to:     
Shareholders in Bank of Åland Plc5.47.2-244.619
      
Volume     
Receivables from the public and public sector4,0764,110-14,0171
Deposits from the public and public sector3,4093,36813,10710
Actively managed assets 15,4316,343-145,476-1
Equity capital25825802474
Balance sheet total5,5995,60705,5421
Risk exposure amount1,5891,58301,5483
      
Financial ratios     
Return on equity after taxes, % (ROE) 28.411.4 7.6 
Return on equity after taxes, % (ROE), moving 12-month avarage to end of report period10.910.7 9.9 
Expence/income ratio 30.720.70 0.81 
Loan loss level, % 40.370.18 0.05 
Liquidity coverage ratio (LCR), % 5146139 171 
Loan/deposit ratio, % 6120122 129 
Core funding ratio, % 78990 90 
Equity/assets ratio, % 84.64.6 4.5 
Common equtiy Tier 1 capital ratio, % 914.413.3 13.4 
Earnings per share, EUR 100.350.46-250.3018
Earnings per share after dilution, EUR0.350.46-240.3018
Earnings per share, EUR, moving 12-month
average to the end of report period
1.751.6931.5215
Equity capital per share, EUR 1116.5416.61015.914
Equity capital per share after dilution, EUR16.5416.59015.864
Market price per Series A share, EUR17.0017.00 15.1013
Market price per Series B share, EUR15.7016.55-514.2011
Number of shares outstanding, 000s15,58615,551015,5250
Number of shares outstanding, after dilution, 000s15,60015,601015,5950
Working hours re-calculated to full-time equivalent positions72070526835

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 Interim Report for the period January–March 2020, which is enclosed with this stock exchange release. The Bank`s Interim Report for the period January – March 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-mar_20.pdf

Mariehamn, April 24, 2020

THE BOARD OF DIRECTORS

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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