Bank of Åland Plc: Interim Report for the period January–September 2015

Bank of Åland Interim report Bank of Åland Plc: Interim Report for the period January–September 2015 Mariehamn, 2015-10-27 08:00 CET (GLOBE NEWSWIRE) -- Bank of Åland Plc Interim Report October 27, 2015, 9.00 a.m. Interim Report for the period January–September 2015 “During the first nine months of 2015, net operating profit improved by 60 per cent to EUR 23.6 per cent. “During the third quarter, we saw continued negative market interest rates and a relatively large downward correction in the stock market. In spite of this, the Bank of Åland Group had a stable income trend, with net interest income showing especially strong performance. Net impairment provisions of EUR 1.4 million, related to a very limited number of customers, were charged to third quarter earnings. “We are seeing a continued good influx of customers in all our business areas.” Peter Wiklöf, Managing Director January−September 2015 compared to January−September 2014 • Net operating profit improved by 60 per cent to EUR 23.6 M (14.8). • Profit for the period attributable to shareholders improved by 81 per cent to EUR 19.0 M (10.5). • Net interest income increased by 7 per cent to EUR 39.2 M (36.7). • Net commission income increased by 11 per cent to EUR 35.3 M (31.7). • Total expenses decreased by 5 per cent to EUR 66.9 M (70.6). • Net impairment losses on loans (including recoveries) increased by 53 per cent to EUR 1.9 M (1.2), equivalent to a loan loss level of 0.08 (0.05) per cent. • Return on equity after taxes (ROE) increased to 12.7 per cent (7.6). • Earnings per share increased to EUR 1.25 (0.73). • The core Tier 1 capital ratio amounted to 11.9 per cent (December 31, 2014: 10.9 per cent). The third quarter of 2015 compared to the third quarter of 2014 Compared to the third quarter of 2014 • Net operating profit fell by 8 per cent to EUR 6.4 M (6.9). • Profit for the period attributable to shareholders fell by 1 per cent to EUR 5.1 M (5.1). • Net interest income increased by 7 per cent to EUR 13.6 M (12.7). • Net commission income increased by 1 per cent to EUR 10.5 M (10.5). • Total expenses decreased by 1 per cent to EUR 21.6 M (21.9). • Net impairment losses on loans (including recoveries) increased to EUR 1.4 M (0.3), equivalent to a loan loss level of 0.16 (0.03) per cent. • Return on equity after taxes (ROE) decreased to 9.9 per cent (10.9). • Earnings per share decreased to EUR 0.33 (0.35). Financial summary -------------------------------------------------------------------------------- - Bank of Åland Group Q3 Q2 % Q3 % Jan-Se Jan- % 2015 2015 2014 p Sep 2015 2014 -------------------------------------------------------------------------------- EUR M -------------------------------------------------------------------------------- Income -------------------------------------------------------------------------------- Net interest income 13.6 12.9 5 12.7 7 39.2 36.7 7 -------------------------------------------------------------------------------- Net commission income 10.5 11.9 -11 10.5 1 35.3 31.7 11 -------------------------------------------------------------------------------- Net income from financial 1.5 1.6 -11 1.9 -23 5.5 4.5 22 items at fair value -------------------------------------------------------------------------------- Other income 3.8 4.1 -9 4.0 -5 12.4 13.7 -10 -------------------------------------------------------------------------------- Total income 29.4 30.6 -4 29.1 1 92.4 86.6 7 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Staff costs -13.2 -14.1 -6 -12.0 10 -40.9 -38.6 6 -------------------------------------------------------------------------------- Other expenses -6.7 -6.7 0 -7.8 -14 -20.6 -25.6 -19 -------------------------------------------------------------------------------- Depreciation/amortisation -1.7 -1.7 -2 -2.1 -19 -5.3 -6.4 -17 -------------------------------------------------------------------------------- Total expenses -21.6 -22.5 -4 -21.9 -1 -66.9 -70.6 -5 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit before impairment 7.8 8.1 -4 7.2 8 25.6 16.0 60 losses -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Impairment losses on -1.4 -0.3 -0.3 -1.9 -1.2 53 loans and other ­commitments -------------------------------------------------------------------------------- Net operating profit 6.4 7.8 -18 6.9 -8 23.6 14.8 60 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Income taxes -1.3 -1.6 -19 -1.5 -12 -4.6 -3.2 44 -------------------------------------------------------------------------------- Profit for the report 5.1 6.2 -18 5.4 -6 19.0 11.6 64 period -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attributable to: -------------------------------------------------------------------------------- Non-controlling interests 0.0 0.0 0.3 -99 0.0 1.1 -100 -------------------------------------------------------------------------------- Shareholders in Bank of 5.1 6.2 -18 5.1 -1 19.0 10.5 81 Åland Plc -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Volume -------------------------------------------------------------------------------- Lending to the public 3,531 3,515 0 3,258 8 -------------------------------------------------------------------------------- Deposits from the public 2,611 2,755 -5 2,482 5 1 -------------------------------------------------------------------------------- Investment volume 2 6,502 6,696 -3 6,040 8 -------------------------------------------------------------------------------- Equity capital 208 200 4 193 8 -------------------------------------------------------------------------------- Balance sheet total 4,499 4,851 -7 4,183 8 -------------------------------------------------------------------------------- Risk exposure amount 1,558 1,619 -4 1,532 2 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Financial ratios -------------------------------------------------------------------------------- Return on equity after 9.9 12.5 10.9 12.7 7.6 taxes, % (ROE) 3 -------------------------------------------------------------------------------- Expense/income ratio 4 0.73 0.73 0.75 0.72 0.82 -------------------------------------------------------------------------------- Loan loss level, % 5 0.16 0.04 0.03 0.08 0.05 -------------------------------------------------------------------------------- Gross non-performing 0.80 0.65 0.54 receivables, % 6 -------------------------------------------------------------------------------- Level of provisions for 35 43 47 doubtful receivables, % 7 -------------------------------------------------------------------------------- Core funding ratio, % 8 99 93 107 -------------------------------------------------------------------------------- Equity/assets ratio, % 9 4.6 4.1 4.6 -------------------------------------------------------------------------------- Tier 1 capital ratio, % 11.9 11.1 11.1 10 -------------------------------------------------------------------------------- Earnings per share, EUR 0.33 0.41 -18 0.35 -6 1.25 0.73 72 11 -------------------------------------------------------------------------------- Earnings per share after 0.33 0.41 -18 0.35 -6 1.25 0.72 72 dilution, EUR -------------------------------------------------------------------------------- Equity capital per share, 13.66 13.18 4 13.14 4 EUR 12 -------------------------------------------------------------------------------- Equity capital per share 13.60 13.15 3 13.11 4 after dilution, EUR -------------------------------------------------------------------------------- Market price per Series A 17.48 15.50 13 11.32 54 share, EUR -------------------------------------------------------------------------------- Market price per Series B 16.40 15.75 4 9.63 70 share, EUR -------------------------------------------------------------------------------- Number of shares 15,208 15,178 0 14,398 6 outstanding (not own shares), 000s -------------------------------------------------------------------------------- Number of shares 15,338 15,278 0 14,498 6 outstanding (not own shares), after dilution, 000s -------------------------------------------------------------------------------- Working hours 667 672 -1 656 2 661 645 3 re-calculated to full-time equivalent positions -------------------------------------------------------------------------------- 1 Deposits from the public and public sector entities, including certificates of deposit, index bonds and debentures issued to the public 2 Investment volume encompasses actively managed assets (the Group’s own mutual funds, discretionary and advisory managed assets) plus other securities volume in brokerage accounts 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 Non-performing receivables more than 90 days / Lending to the public before provisions for impairment losses 7 Provisions for individual impairment losses / 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/ Number of shares adjusted for share issue 12 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 – September 2015, which is enclosed with this stock exchange release. The Bank`s Interim Report for the period January – September 2015 is attached to this release in PDF format and is also available on the company’s web site at Mariehamn, October 27, 2015 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