Bank of Åland Plc: Year-end Report for the period January–December 2022
February 01 2023 - 2:00AM
Bank of Åland Plc: Year-end Report for the period January–December
2022
Bank of Åland Plc Financial Statement Release February 1, 2023,
9.00 EET
Year-end Report for the period January–December
2022
“We are closing a very turbulent year, during which both the
stock and fixed income markets fell, while war and rapid
inflation affected us all. In spite of this, we can report a net
operating profit of EUR 46.1 M, almost the same level as our
previous high.
“It is pleasing that for the second straight year, we were
ranked as the best Private Banking market player in Prospera’s
Finnish customer survey. During 2022 we saw more than half a
billion euros in net inflows into our financial investment
services. Because of this continued customer inflow, combined with
high interest rates – which benefit our net interest income – we
look forward to 2023 with confidence and expect a significantly
better operating profit than during 2022.”
Peter Wiklöf, Managing Director and Chief Executive
January−December 2022 Compared to January−December
2021
- Net operating profit decreased by 6 per cent to EUR 46.1 M
(49.2).
- Core income in the form of net interest income, net commission
income and IT income increased by 3 per cent to EUR 170.1 M
(165.7).
- Other income, which included certain nonrecurring items,
increased by 35 per cent to EUR 14.0 M (10.3).
- Total expenses increased by 8 per cent to EUR 131.8 M
(121.9).
- Net impairment losses on financial assets (including
recoveries) totalled EUR 6.2 M (4.9), equivalent to a loan loss
level of 0.14 (0.12) per cent.
- Return on equity after taxes (ROE) decreased to 12.8 (14.0) per
cent.
- Earnings per share decreased by 7 per cent to EUR 2.37
(2.55).
- The common equity Tier 1 capital ratio decreased to 12.0 per
cent (12.1).
- Dividend: The Board of Directors proposes that the Annual
General Meeting approve payment of a regular dividend of EUR 1.60
(1.55) per share for the 2022 financial year, equivalent to a 68
(61) per cent payout ratio, plus an extra dividend of EUR 0.45
(0.45) per share.
- Future outlook: The Bank of Åland expects its net operating
profit in 2023 to be significantly better than in 2022.
The fourth quarter of 2022 Compared to the fourth
quarter of 2021
- Net operating profit increased by 4 per cent to EUR 10.6 M
(10.2).
- Core income in the form of net interest income, net commission
income and IT income increased by 1 per cent to EUR 44.3 M
(44.1).
- Other income increased by 24 per cent to EUR 2.7 M (2.2).
- Total expenses increased by 5 per cent to EUR 34.1 M
(32.5).
- Net impairment losses on financial assets (including
recoveries) totalled EUR 2.2 M (3.5), equivalent to a loan loss
level of 0.20 (0.30) per cent.
- Return on equity after taxes (ROE) increased to 11.9 (10.6) per
cent.
- Earnings per share increased by 9 per cent to EUR 0.55
(0.51).
Financial summary
Group |
Q4 2022 |
Q32022 |
% |
Q42021 |
% |
Jan-Dec2022 |
Jan-Dec2021 |
% |
EUR M |
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
Net interest income |
19.7 |
18.9 |
4 |
16.2 |
21 |
68.2 |
62.2 |
10 |
Net commission income |
18.4 |
18.6 |
-1 |
21.5 |
-14 |
78.4 |
79.0 |
-1 |
IT income |
6.2 |
5.0 |
23 |
6.3 |
-3 |
23.5 |
24.4 |
-4 |
Other income |
2.7 |
0.2 |
|
2.2 |
24 |
14.0 |
10.3 |
35 |
Total
income |
47.0 |
42.7 |
10 |
46.2 |
2 |
184.1 |
176.0 |
5 |
|
|
|
|
|
|
|
|
|
Staff costs |
-19.6 |
-17.9 |
10 |
-18.0 |
9 |
-75.5 |
-71.1 |
6 |
Other expenses |
-11.3 |
-9.3 |
22 |
-10.3 |
9 |
-39.7 |
-33.8 |
18 |
Statutory fees |
0.0 |
0.0 |
-54 |
0.0 |
|
-3.4 |
-2.8 |
25 |
Depreciation/amortisation |
-3.3 |
-3.3 |
-2 |
-4.1 |
-21 |
-13.2 |
-14.3 |
-7 |
Total
expenses |
-34.1 |
-30.5 |
12 |
-32.5 |
5 |
-131.8 |
-121.9 |
8 |
|
|
|
|
|
|
|
|
|
Profit before impairment losses |
12.9 |
12.2 |
5 |
13.8 |
-6 |
52.3 |
54.1 |
-3 |
|
|
|
|
|
|
|
|
|
Impairment losses on financial assets, net |
-2.2 |
-1.1 |
95 |
-3.5 |
-37 |
-6.2 |
-4.9 |
26 |
Net operating
profit |
10.6 |
11.1 |
-4 |
10.2 |
4 |
46.1 |
49.2 |
-6 |
|
|
|
|
|
|
|
|
|
Income taxes |
-2.1 |
-2.2 |
-6 |
-2.3 |
-8 |
-9.3 |
-9.3 |
0 |
Profit for the
period |
8.5 |
8.9 |
-4 |
7.9 |
7 |
36.8 |
39.9 |
-8 |
|
|
|
|
|
|
|
|
|
Attributable
to: |
|
|
|
|
|
|
|
|
Shareholders in Bank of Åland
Plc |
8.5 |
8.9 |
-4 |
7.9 |
7 |
36.8 |
39.8 |
-8 |
|
|
|
|
|
|
|
|
|
Volume |
|
|
|
|
|
|
|
|
Lending to the public |
4,303 |
4,241 |
1 |
4,788 |
-10 |
|
|
|
Deposits from the public |
4,182 |
4,207 |
-1 |
4,070 |
3 |
|
|
|
Actively managed assets 1 |
8,637 |
8,212 |
5 |
9,826 |
-12 |
|
|
|
Managed mortgage loans 2 |
1,304 |
1,195 |
9 |
2 |
|
|
|
|
Equity capital |
316 |
312 |
2 |
332 |
-5 |
|
|
|
Balance sheet total |
5,898 |
6,145 |
-4 |
6,635 |
-11 |
|
|
|
Risk exposure amount |
1,938 |
1,967 |
-1 |
1,976 |
-2 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial ratios |
|
|
|
|
|
|
|
|
Return on equity after taxes, % (ROE) 3 |
11.9 |
12.4 |
|
10.6 |
|
12.8 |
14.0 |
|
Return on equity after taxes, % (ROE), moving 12-month average to
end of report period |
12.8 |
12.5 |
|
14.0 |
|
|
|
|
Expense/income ratio 4 |
0.73 |
0.71 |
|
0.70 |
|
0.72 |
0.69 |
|
Loan loss level, % 5 |
0.20 |
0.11 |
|
0.30 |
|
0.14 |
0.12 |
|
Gross share of loans in Stage 3, % 6 |
1.61 |
1.62 |
|
1.23 |
|
|
|
|
Liquidity coverage ratio (LCR), % 7 |
138 |
138 |
|
139 |
|
|
|
|
Net stable funding ratio (NSFR), % 8 |
108 |
110 |
|
109 |
|
|
|
|
Loan/deposit ratio, % 9 |
103 |
101 |
|
118 |
|
|
|
|
Common equtiy Tier 1 capital ratio, % 10 |
12.0 |
11.8 |
|
12.1 |
|
|
|
|
Tier 1 capital ratio, % 11 |
13.6 |
13.3 |
|
13.6 |
|
|
|
|
Total capital ratio, % 12 |
15.2 |
15.0 |
|
15.4 |
|
|
|
|
Leverage ratio, % 13 |
4.3 |
4.1 |
|
4.3 |
|
|
|
|
Earnings per share, EUR 14 |
0.55 |
0.57 |
-3 |
0.51 |
9 |
2.37 |
2.55 |
-7 |
Earnings per share, EUR, moving 12-month average to end of report
period |
2.37 |
2.32 |
2 |
2.55 |
-7 |
|
|
|
Equity capital per share, EUR 15 |
18.82 |
18.17 |
4 |
19.39 |
-3 |
|
|
|
Working hours re-calculated to full-time equivalent positions |
862 |
882 |
-2 |
817 |
5 |
854 |
815 |
5 |
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 earnings 2
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 capital 4 Expenses / Income 5 Impairment losses on loan
portfolio and other commitments / Lending to the public at the
beginning of the period 6 Share of loans in Stage 3 / Gross lending
to the public 7 LCR, assets at levels 1 and 2 / 30-day net cash
outflow 8 Available stable funding / Stable funding requirement 9
Lending to the public / Deposits from the public 10 Common equity
Tier 1 capital / Risk exposure amount 11 Tier 1 capital / Risk
exposure amount 12 Own funds / Risk exposure amount 13 Tier 1
capital / Total exposure metric 14 Shareholders’ portion of profit
for the period / Average number of shares 15 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 2022, which is enclosed with this stock exchange release.
The Bank`s Year-end Report for the period January – december 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-dec_22.pdf
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-dec_22
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