Bank of Åland Plc: Interim Report for the period January - March 2022
April 26 2022 - 2:00AM
Bank of Åland Plc: Interim Report for the period January - March
2022
Bank of Åland PlcInterim ReportApril 26, 2022 9.00 am
Interim Report for the period January - March
2022
“The quarter included major macroeconomic events, with rising
interest rates and bond yields as well as falling stock markets due
to mounting inflation and Russia’s invasion of Ukraine.“One major
change for the Bank of Åland was the divestment of most of our
Swedish mortgage loan portfolio (SEK 10.4 billion) to the mortgage
company Borgo, in which the Bank of Åland is one of the main
shareholders. As communicated earlier, this divestment provided a
nonrecurring income of EUR 9.8 M. The diminished loan portfolio
lowers our net interest income but will generate income from
distribution and management of Borgo’s mortgage loans.“Despite
market volatility during the quarter, we saw a continued net inflow
to our investment services of EUR 123 M. We also saw both our
deposit and lending volumes rise by 4 per cent compared to year-end
2021 when we exclude the volume of mortgage loans that we
divested.”Peter Wiklöf, Managing Director and Chief Executive
January–March 2022 compared to January–March
2021
• Net operating profit increased by 29 per cent to EUR 13.9 M
(10.8).• Net interest income decreased by 6 per cent to EUR 14.3 M
(15.2).• Net commission income increased by 3 per cent to EUR 20.2
M (19.6).• Total expenses increased by 16 per cent to EUR 35.5 M
(30.5).• Net impairment losses on financial assets (including
recoveries) totalled EUR 1.7 M (0.1), equivalent to a loan loss
level of 0.16 (0.02) per cent.• Return on equity after taxes (ROE)
increased to 15.0 (12.5) per cent.• Earnings per share increased by
29 per cent to EUR 0.71 (0.55).• The common equity Tier 1 capital
ratio increased to 13.9 per cent (12.1 per cent on December 31,
2021).• Unchanged future outlook: The Bank of Åland expects its net
operating profit in 2022 to be about the same as in 2021.
Financial Summary
Group |
Q12022 |
Q42021 |
% |
Q12021 |
% |
EUR M |
|
|
|
|
|
Income |
|
|
|
|
|
Net interest income |
14.3 |
16.2 |
-12 |
15.2 |
-6 |
Net commission income |
20.2 |
21.5 |
-6 |
19.6 |
3 |
Net income from financial items at fair value |
10.8 |
1.5 |
|
0.4 |
|
Other income |
5.7 |
7.0 |
-18 |
6.2 |
-8 |
Total income |
51.1 |
46.2 |
11 |
41.4 |
23 |
|
|
|
|
|
|
Staff costs |
-18.9 |
-18.0 |
5 |
-17.4 |
8 |
Other expences |
-13.3 |
-10.3 |
28 |
-10.2 |
30 |
Depreciation/amortisation |
-3.4 |
-4.1 |
-18 |
-2.9 |
16 |
Total expenses |
-35.5 |
-32.5 |
9 |
-30.5 |
16 |
|
|
|
|
|
|
Profit before impairment
losses |
15.6 |
13.8 |
13 |
10.9 |
43 |
|
|
|
|
|
|
Impairment losses on financial assets, net |
-1.7 |
-3.5 |
-52 |
-0.1 |
|
Net operating
profit |
13.9 |
10.2 |
36 |
10.8 |
29 |
|
|
|
|
|
|
Income taxes |
-2.9 |
-2.3 |
25 |
-2.2 |
31 |
Profit for the report
period |
11.0 |
7.9 |
39 |
8.6 |
28 |
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Shareholders in Bank of Åland
Plc |
11.0 |
7.9 |
39 |
8.6 |
28 |
|
|
|
|
|
|
Volume |
|
|
|
|
|
Lending to the public |
3,936 |
4,788 |
-18 |
4,419 |
-11 |
Deposits from the public |
4,238 |
4,070 |
4 |
3,529 |
20 |
Actively managed assets 1 |
9,082 |
9,826 |
-8 |
7,808 |
16 |
Managed mortgage loans 2 |
1,114 |
2 |
|
|
|
Equity capital |
310 |
332 |
-7 |
298 |
4 |
Balance sheet total |
5,950 |
6,635 |
-10 |
6,089 |
-2 |
Risk exposure amount |
1,805 |
1,976 |
-9 |
1,747 |
3 |
|
|
|
|
|
|
Financial ratios |
|
|
|
|
|
Return on equity after taxes, % (ROE) 3 |
15.0 |
10.6 |
|
12.5 |
|
Return on equity after taxes, % (ROE), moving 12-month average to
end of report period |
14.7 |
14.0 |
|
12.6 |
|
Expense/income ratio 4 |
0.69 |
0.70 |
|
0.74 |
|
Loan loss level, % 5 |
0.16 |
0.30 |
|
0.02 |
|
Gross share of loans in Stage 3, % 6 |
1.55 |
1.23 |
|
0.92 |
|
Liquidity coverage ratio (LCR), % 7 |
132 |
139 |
|
165 |
|
Net stable funding ratio (NSFR), % 8 |
121 |
109 |
|
106 |
|
Loan/deposit ratio, % 9 |
93 |
118 |
|
125 |
|
Common equtiy Tier 1 capital ratio, % 10 |
13.9 |
12.1 |
|
13.6 |
|
Tier 1 capital ratio, % 11 |
15.5 |
13.6 |
|
15.3 |
|
Total capital ratio, % 12 |
17.5 |
15.4 |
|
17.4 |
|
Leverage ratio, % 13 |
5.0 |
4.3 |
|
4.6 |
|
Earnings per share, EUR 14 |
0.71 |
0.51 |
39 |
0.55 |
29 |
Earnings per share, EUR, moving 12-month average to end of report
period |
2.71 |
2.55 |
6 |
2.22 |
22 |
Equity capital per share, EUR 15 |
18.02 |
19.39 |
-7 |
17.19 |
5 |
Working hours re-calculated to full-time equivalent positions |
836 |
817 |
2 |
790 |
6 |
1 Actively managed assets encompassed managed assets in the
Group’s own mutual funds, as well as discretionary and advisory
securities volume plus external funds with contractual earnings2
Total mortgage loan volume in Borgo AB that the Bank of Åland
manages through various services 3 Profit for the report period
attributable to shareholders / Average shareholders´portion of
equity capital4 Expenses / Income 5 Impairment losses on loan
portfolio and other commitments / Lending to the public at the
beginning of the period6 Share of loans in Stage 3 / Gross lending
to the public7 LCR, assets at levels 1 and 2 / 30-day net cash
outflow8 Available stable funding / Stable funding requirement9
Lending to the public / Deposits from the public10 Common equity
Tier 1 capital / Risk exposure amount11 Tier 1 capital / Risk
exposure amount12 Own funds / Risk exposure amount13 Tier 1 capital
/ Total exposure metric14 Shareholders’ portion of profit for the
period / Average number of shares15 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 2022, which is enclosed with this stock exchange release. The
Bank`s Interim Report for the period January – March 2022 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_22.pdf
Mariehamn, April 25, 2022
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
- alandsbanken_en_resultat_jan-mar_22
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