Bank of Åland
Interim report (Q1 and Q3)
Bank of Åland Plc: Interim Report for the period January - September 2017
Mariehamn, 2017-10-24 08:00 CEST (GLOBE NEWSWIRE) --
Bank of Åland Plc
Interim report
October 24, 2017, 9.00 p.m.
Interim Report for the period January - September 2017
“We created solid quarterly earnings, where our continued stable growth is now
having a positive impact on our net interest and commission income. Managed
assets in our own mutual funds rose past EUR 3 billion during the quarter.
“The launch of our new capital market platform in the Bank’s Swedish operations
resulted in heightened project expenses.”
Peter Wiklöf, Managing Director
January−September 2017 compared to January-September 2016
-- Net operating profit increased by 4 per cent to EUR 19.5 M (18.8).
-- Profit for the period attributable to shareholders increased by 5 per cent
to EUR 15.5 M (14.8).
-- Net interest income increased by 2 per cent to EUR 41.8 M (41.1).
-- Net commission income rose by 13 per cent to EUR 37.1 M (32.7).
-- Total expenses increased by 11 per cent to EUR 74.6 M (67.4).
-- Net impairment losses on loans (including recoveries) totalled EUR 1.5 M
(3.0), equivalent to a loan loss level of 0.05 (0.11) per cent.
-- Return on equity after taxes (ROE) amounted to 9.2 (9.2) per cent.
-- Earnings per share amounted to EUR 1.01 (0.97).
-- The common equity Tier 1 capital ratio, not taking into account
transitional rules, amounted to 12.6 per cent (11.8 on December 31, 2016).
The third quarter of 2017 compared to the third quarter of 2016
-- Net operating profit increased by 16 per cent to EUR 7.2 M (6.2).
-- Profit for the period attributable to shareholders increased by 16 per cent
to EUR 5.8 M (5.0).
-- Net interest income rose by 4 per cent to EUR 14.3 M (13.7).
-- Net commission income rose by 15 per cent to EUR 12.2 M (10.6).
-- Total expenses increased by 14 per cent to EUR 24.4 M (21.5).
-- Net impairment losses on loans (including recoveries) totalled EUR 0.6 M
(0.9), equivalent to a loan loss level of 0.06 (0.10) per cent.
-- Return on equity after taxes (ROE) increased to 10.1 (9.2) per cent.
-- Earnings per share amounted to EUR 0.38 (0.33).
Group Q3 Q2 % Q3 % Jan-Se Jan-Se %
2017 2017 2016 p p 2016
2017
EUR M
Income
Net interest income 14.3 13.6 5 13.7 4 41.8 41.1 2
Net commission income 12.2 12.8 -5 10.6 15 37.1 32.7 13
Net income from financial 1.8 -0.6 0.5 2.1 3.9 -46
items at fair value
Other income 3.9 4.6 -16 3.8 3 14.6 11.5 28
Total income 32.2 30.5 5 28.5 13 95.6 89.2 7
Staff costs -14.1 -14.9 -6 -13.3 6 -45.0 -42.2 7
Other expences -8.3 -8.4 -2 -6.7 23 -24.4 -20.8 17
Depreciation/amortisation -2.0 -1.7 17 -1.5 37 -5.3 -4.5 17
Total expenses -24.4 -25.1 -3 -21.5 14 -74.6 -67.4 11
Profit before impairment 7.8 5.5 42 7.1 10 21.1 21.8 -3
losses
Impairment losses on -0.6 -0.5 11 -0.9 -36 -1.5 -3.0 -49
loans and other
commitments
Net operating profit 7.2 5.0 46 6.2 16 19.5 18.8 4
Income taxes -1.5 -1.0 40 -1.2 19 -4.0 -4.0 0
Profit for the report 5.8 3.9 47 5.0 16 15.5 14.8 5
period
Attributable to:
Shareholders in Bank of 5.8 3.9 47 5.0 16 15.5 14.8 5
Åland Plc
Volume
Lending to the public 3,967 3,915 1 3,692 7
Deposits from the public 3,286 3,190 3 2,897 13
1
Actively managed assets 2 5,690 5,475 4 3,837 48
Equity capital 230 224 3 217 6
Balance sheet total 5,356 5,263 2 4,909 9
Risk exposure amount 1,553 1,537 1 1,538 1
Financial ratios
Return on equity after 10.1 7.0 9.2 9.2 9.2
taxes, % (ROE) 3
Expences/income ratio 4 0.76 0.82 0.75 0.78 0.76
Loan loss level, % 5 0.06 0.05 0.10 0.05 0.11
Gross non-performing 0.66 0.68 0.90
receivables, % 6
Level of provisions for 41 42 39
doubtful receivables, %7
Core funding ratio, % 8 91 92 90
Equity/assets ratio, % 9 4.3 4.3 4.4
Tier 1 capital ratio, % 12.6 12.5 12.1
10
Earnings per share, EUR 0.38 0.26 47 0.33 15 1.01 0.97 5
11
Earnings per share after 0.37 0.25 47 0.32 16 1.00 0.96 5
dilution, EUR
Equity capital per share, 14.98 14.60 3 14.20 5
EUR 12
Equity capital per share 14.82 14.45 3 14.07 5
after dilution, EUR
Market price per Series A 14.86 14.40 3 14.10 5
share, EUR
Market price per Series B 14.90 14.20 5 13.58 10
share, EUR
Number of shares 15,335 15,335 0 15,299 0
outstanding (not own
shares), 000s
Number of shares 15,588 15,590 0 15,540 0
outstanding (not own
shares), after dilution,
000s
Working hours 702 680 3 690 2 691 682 1
re-calculated to
full-time equivalent
positions
1. Deposits from the public and public sector enteties, including certificates
of deposit, index bonds and debentures issued to the public.
2. Actively managed assets encompassed managed assets in the Group’s own mutual
funds, as well as discretionary and advisory securities volume.
3. Profit for the report period attributable to shareholders / Average
shareholders´portion of equity capital.
4. Expenses / Income.
5. Impaiment losses on loan portfolio and other commitments / Lending to the
public at the beginning of the period.
6. Gross doubtful receivables / Lending to the public before provisions for
impairment losses.
7. Provisions for individual impairment losses / Gross doubtful receivables.
8. Lending to the public / Deposits including certificates of deposit, index
bonds and debentures issued to the public plus covered bonds issued.
9. Equity capital / Balance sheet total.
10. (Core Tier 1 capital / Capital requirement) x 8%.
11. Shareholders’ portion of earnings for the period / Avarage number of shares.
12. Shareholders’ portion of equity capital / Number of shares less own 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 – September 2017, which is enclosed with this stock exchange
release. The Bank`s Interim Report for the period January – September 2017 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-sep_17.pdf
Mariehamn, October 24, 2017
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
https://cns.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=806248&messageId=1012359