Bank of Åland Plc: Interim Report for the period January–March 2013

Bank of Åland Interim report Bank of Åland Plc: Interim Report for the period January–March 2013 Mariehamn, 2013-04-29 14:00 CEST (GLOBE NEWSWIRE) -- Bank of Åland Plc Interim Report 29.4.2013 3.00 pm Interim Report for the period January–March 2013 ”The first quarter of 2013 was our third straight quarter of improved profit before impairment losses and nonrecurring items, but our earnings performance going forward will be challenged by low market interest rates and cost increases due to the new banking tax. “Yet several bright spots should be mentioned. Our operations in Sweden continued to grow. Our new Bostadsfond – the first housing investment fund in the Finnish market – was very well received, with subscriptions of no less than EUR 41 M during the fund’s first quarter. In a recently conducted customer survey, our customers again confirm that they are very pleased with the personalised approach and the financial services we offer. A full 88 per cent of our Premium Banking customers responded that they would recommend to others that they become Bank of Åland customers.” Peter Wiklöf, Managing Director January'March 2013 Compared to January'March 2012 • Net operating profit improved to EUR 2.6 M (-1.2). • Profit for the period attributable to shareholders was EUR 1.9 M (-0.9). • Net interest income decreased by 18 per cent to EUR 9.4 M (11.5). • Net commission income in creased by 16 per cent to EUR 9.3 M (8.0). • Total expenses decreased by 2 per cent to EUR 23.1 M (23.6). • Impairment losses on loans were EUR 1.4 M (0.9), equivalent to a loan loss level of 0.19 (0.12) per cent. • Return on equity after taxes (ROE) amounted to 4.4 per cent (-1.7). • Earnings per share amounted to EUR 0.13 (-0.05). • The core Tier 1 capital ratio amounted to 10.4 per cent (December 31, 2012: 10.9 per cent). • The Bank’s earnings performance is determined to a significant degree by external factors that are difficult to predict. Since new securities legislation removes the explicit obligation in an interim report to provide an account of probable developments during the current financial period, the Bank of Åland is choosing to refrain from providing earnings forecasts in its interim reports. In accordance with legislative requirements, the future outlook is presented in the Bank’s Annual Report. • The Bank of Åland intends to seek a long-term strategic business partner for the wholly owned subsidiary Crosskey Banking Solutions. Possible forms of collaboration may also include a reduction in the Bank of Åland’s ownership. New regulations make banks less suitable as owners of IT companies. The growth of Crosskey has been rapid and has occurred with good profitability since the Bank of Åland’s IT operations were turned into a limited liability company in 2004. Today Crosskey accounts for nearly one third of the number of employees in the Bank of Åland Group. Financial summary -------------------------------------------------------------------------------- - Bank of Åland Group Q1 Q4 % Q1 % 2013 2012 2012 -------------------------------------------------------------------------------- EUR M -------------------------------------------------------------------------------- Income -------------------------------------------------------------------------------- Net interest income 9.4 9.9 -5 11.5 -18 -------------------------------------------------------------------------------- Net commission income 9.3 9.2 1 8.0 16 -------------------------------------------------------------------------------- Net income from financial items at fair value 4.4 19.3 -77 0.0 -------------------------------------------------------------------------------- Other income 4.0 4.3 -7 3.8 5 -------------------------------------------------------------------------------- Total income 27.1 42.7 -37 23.3 16 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Staff costs -13.1 -13.7 -5 -13.3 -2 -------------------------------------------------------------------------------- Other expenses -8.1 -8.9 -9 -8.6 -5 -------------------------------------------------------------------------------- Depreciation/amortisation -1.9 -2.6 -28 -1.7 10 -------------------------------------------------------------------------------- Total expenses -23.1 -25.3 -9 -23.6 -2 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit before impairment losses 4.1 17.4 -77 -0.3 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Impairment losses on loans and other -1.4 -3.1 -54 -0.9 65 ­commitments -------------------------------------------------------------------------------- Net operating profit 2.6 14.4 -82 -1.2 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Income taxes -0.5 0.6 0.4 -------------------------------------------------------------------------------- Profit for the report period 2.2 15.0 -86 -0.8 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attributable to: -------------------------------------------------------------------------------- Non-controlling interests -0.2 -0.2 -10 -0.1 -------------------------------------------------------------------------------- Shareholders in Bank of Åland Plc 1.9 14.8 -87 -0.9 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Volume -------------------------------------------------------------------------------- Lending to the public 2,977 2,906 2 2,762 8 -------------------------------------------------------------------------------- Deposits from the public 2,446 2,447 0 2,552 -4 -------------------------------------------------------------------------------- Managed assets 4,480 4,292 4 4,044 11 -------------------------------------------------------------------------------- Equity capital 179 181 -1 177 1 -------------------------------------------------------------------------------- Balance sheet total 3,743 3,631 3 3,549 5 -------------------------------------------------------------------------------- Risk-weighted assets 1,472 1,402 5 1,374 7 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Financial ratios -------------------------------------------------------------------------------- Return on equity after taxes, % (ROE) 4.4 34.2 -1.7 -------------------------------------------------------------------------------- Expenses/income ratio, % 85 59 101 -------------------------------------------------------------------------------- Loan loss level, % 0.19 0.42 0.12 -------------------------------------------------------------------------------- Gross non-performing loans, % 0.58 0.64 0.63 -------------------------------------------------------------------------------- Level of provisions for doubtful receivables, 98 108 67 % -------------------------------------------------------------------------------- Core funding ratio, % 102 104 108 -------------------------------------------------------------------------------- Equity/assets ratio, % 4.8 5.0 5.0 -------------------------------------------------------------------------------- Tier 1 capital ratio, without transitional 10.4 10.9 10.3 rules, % -- ------------------------------------------------------------------------------ Earnings per share before dilution, % 0.13 1.04 -0.05 -------------------------------------------------------------------------------- Equity capital per share, EUR 12.27 12.36 12.07 -------------------------------------------------------------------------------- Market price per Series A share, EUR 12.50 10.04 14.25 -------------------------------------------------------------------------------- Market price per Series B share, EUR 8.14 7.10 9.15 -------------------------------------------------------------------------------- Number of shares outstanding (not own shares) 14,395 14,395 14,395 thousands -------------------------------------------------------------------------------- Working hours re-calculated to full-time 604 626 679 equivalent positions -------------------------------------------------------------------------------- Ålandsbanken follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority and hereby publishes its Interim Report for the period January – March 2013 enclosed to this stock exchange release. Ålandsbanken’s Interim Report for the period January – March 2013 is attached to this release in pdf format and is also available on the company’s web site at www.alandsbanken.fi/info/opencms/pdf/result/en_resultat_jan-mar_13.pdf Mariehamn, April 29, 2013 THE BOARD OF DIRECTORS For more information please contact: Managing Director, Peter Wiklöf +358 204 2912 25