The Bank of Åland’s new operating segments in interim reports

Bank of Åland Company Announcement The Bank of Åland’s new operating segments in interim reports Mariehamn, 2015-07-10 11:00 CEST (GLOBE NEWSWIRE) -- Bank of Åland Plc Stock exchange release July 10, 2015, 12.00 The Bank of Åland’s new operating segments in interim reports Starting with the January-June 2015 Interim Report, which will be published on July 24, 2015, the Bank of Åland Plc (Ålandsbanken Abp) is changing its reporting of operating segments. This change is occurring against the backdrop of changes in the organisation. The new segments being reported are: -- Private Banking, encompassing Private Banking operations in Åland, on the Finnish mainland and in Sweden. -- Premium Banking, encompassing operations in all customer segments excluding Private Banking in Åland, on the Finnish mainland and in Sweden. -- Asset Management, encompassing the Bank of Åland Group’s new asset management organisation in Finland and Sweden including Ålandsbanken Fondbolag Ab. Asset Management is responsible for management and sales support of the Bank of Åland’s own mutual funds, discretionary asset management mandates and advisory asset management mandates. Asset Management is a support organisation for Private Banking and Premium Banking, which have direct customer responsibility, but Asset Management itself has customer responsibility for certain large institutional customers, mutual fund platforms and insurance agents. -- IT, encompassing the subsidiary Crosskey Banking Solution Ab Ltd including S-Crosskey Ab, which develop and offer information technology (IT) solutions for banking services, card services, securities-related services and digital customer contacts. -- Corporate and Other, encompassing all central corporate units in the Group, including Treasury and the subsidiary Ab Compass Card Oy Ltd, which develops and offers debit and credit card services. The table below presents figures related to the full year 2014 for the new segment allocation. This segment reporting reflects the information that the Group’s Executive Team receives. Bank of Åland Jan 1–Dec 31, 2014 Group ------------------------------------------------------------------ -------------------------------------------------------------------------------- - EUR M Privat Premiu Asset IT Corporate and Elimin Total e m Management Other ations Bankin Bankin g g -------------------------------------------------------------------------------- Net interest 23.5 23.6 0.1 -0.1 1.9 0.3 49.3 income -------------------------------------------------------------------------------- Net 23.7 10.2 10.9 -0.1 1.4 0.0 46.2 commission income -------------------------------------------------------------------------------- Net income 0.4 0.7 0.1 0.0 5.7 -0.1 6.8 from financial items -------------------------------------------------------------------------------- IT income 0.0 0.0 0.0 30.7 0.0 -13.3 17.3 -------------------------------------------------------------------------------- Other income 0.2 0.1 0.1 0.1 0.5 0.0 1.0 -------------------------------------------------------------------------------- Total income 47.8 34.7 11.2 30.5 9.5 -13.1 120.6 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Staff costs -11.0 -7.2 -4.7 -14.0 -15.6 0.0 -52.5 -------------------------------------------------------------------------------- Other -6.3 -6.4 -2.3 -10.1 -22.4 12.8 -34.7 expenses -------------------------------------------------------------------------------- Depreciation/ -0.2 -0.8 0.0 -3.8 -5.5 2.1 -8.2 amortisation -------------------------------------------------------------------------------- Internal -15.9 -18.5 -1.9 0.0 36.3 0.0 0.0 allocation of expenses -------------------------------------------------------------------------------- Nonrecurring 0.0 -0.5 -0.2 0.0 -0.2 -0.1 -1.0 items -------------------------------------------------------------------------------- Total -33.4 -33.5 -9.1 -27.8 -7.5 14.8 -96.4 expenses -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit before 14.5 1.2 2.1 2.7 1.9 1.7 24.2 impairment losses -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Impairment -0.4 -1.2 0.0 0.0 -0.3 0.0 -1.8 losses on loans and other commitments -------------------------------------------------------------------------------- Net operating 14.1 0.1 2.1 2.7 1.7 1.7 22.4 profit -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Income taxes -2.9 0.0 -0.4 -0.5 -0.9 0.0 -4.8 -------------------------------------------------------------------------------- Non-controlli 0.0 0.0 -1.3 0.0 -0.2 0.0 -1.5 ng interests -------------------------------------------------------------------------------- Profit for 11.2 0.1 0.4 2.2 0.6 1.7 16.1 the period attributable to shareholders -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Business volume, Dec 31 -------------------------------------------------------------------------------- Lending to 1,475 1,840 0 0 44 -16 3,343 the public -------------------------------------------------------------------------------- Deposits from 1,220 1,081 7 0 89 -6 2,391 the public -------------------------------------------------------------------------------- Investment 4,733 738 3,262 0 6 -2,427 6,312 volume1 -------------------------------------------------------------------------------- Risk exposure 661 603 12 36 243 0 1,554 amount -------------------------------------------------------------------------------- Allocated 82 83 1 9 19 0 194 equity capital -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Financial ratios etc. -------------------------------------------------------------------------------- Return on 15.0 0.1 23.8 15.7 8.7 equity after taxes, % (ROE) -------------------------------------------------------------------------------- Expense/incom 0.70 0.96 0.81 0.91 0.80 0.80 e ratio -------------------------------------------------------------------------------- Gross 0.12 1.45 2.28 0.88 non-performi ng loans > 90 days, % -------------------------------------------------------------------------------- Loan loss 0.03 0.06 0.52 0.06 level, % -------------------------------------------------------------------------------- Lending/depos 121 170 49 140 its, % -------------------------------------------------------------------------------- Average 109 118 20 197 195 639 full-time equivalent positions2 -------------------------------------------------------------------------------- 1 Investment volume encompasses actively managed assets (consisting of the Group’s own mutual funds, discretionary managed assets and advisory managed assets) plus other securities volume without asset management agreements including intermediated insurance assets. -------------------------------------------------------------------------------- - 2 Number of full-time equivalent positions defined as employment level excluding employees on parental and long-term sick leave. -------------------------------------------------------------------------------- - For further information: Peter Wiklöf, Managing Director and Chief Executive, Bank of Åland Plc, tel +358 40 512 7505