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Bank of Åland Plc: Interim Report for the period January - March 2019
25 Apr 2019
Stock exchange releases
Bank of Åland Plc: Interim Report for the period January - March 2019
Bank of Åland Plc
Interim Report
April 25, 2019 9.00 am
Interim Report for the period January - March 2019
“We began our 100th year in business with a stable quarter and satisfactory earnings performance.”
Peter Wiklöf, Managing Director and Chief Executive
January – March 2019 compared to January - March 2018
The full-year estimated stability fee of EUR 2.3 M (2.6) has been charged to the first quarters.
- Net operating profit increased by 12 per cent to EUR 5.8 M (5.2).
- Profit for the period attributable to shareholders increased by 14 per cent to EUR 4.6 M (4.0).
- Net interest income decreased by 6 per cent to EUR 13.2 M (14.1).
- Net commission income decreased by 1 per cent to EUR 14.1 M (14.3).
- Total expenses decreased by 5 per cent to EUR 26.0 M (27.5).
- Net impairment losses on financial assets (including recoveries) totalled EUR 0.4 M (0.2), equivalent to a loan loss level of 0.05 (0.02) per cent.
- Return on equity after taxes (ROE) amounted to 7.6 (7.0) per cent.
- Earnings per share increased to EUR 0.30 (0.26).
- The common equity Tier 1 ratio amounted to 13.4 per cent (13.0 on December 31, 2018).
- Unchanged future outlook: The Bank of Åland expects its net operating profit in 2019 to be at about the same level as in 2018.
Financial summary
| Group | Q1 2019 | Q4 2018 | % | Q1 2018 | % |
| EUR M | |||||
| Income | |||||
| Net interest income | 13.2 | 13.3 | -1 | 14.1 | -6 |
| Net commission income | 14.1 | 13.9 | 2 | 14.3 | -1 |
| Net income from financial items at fair value | 0.4 | 0.2 | 83 | 0.4 | 0 |
| Other income | 4.6 | 4.9 | -5 | 4.1 | 12 |
| Total income | 32.3 | 32.3 | 0 | 32.9 | -2 |
| Staff costs | -14.5 | -14.3 | 1 | -15.1 | -4 |
| Other expences | -8.7 | -8.5 | 2 | -10.6 | -17 |
| Depreciation/amortisation | -2.8 | -1.8 | 57 | -1.9 | 53 |
| Total expenses | -26.0 | -24.6 | 6 | -27.5 | -5 |
| Profit before impairment losses | 6.2 | 7.7 | -18 | 5.4 | 16 |
| Impairment losses on financial assets, net | -0.4 | 0.1 | -0.2 | ||
| Net operating profit | 5.8 | 7.7 | -25 | 5.2 | 12 |
| Income taxes | -1.2 | -1.5 | -20 | -1.1 | 9 |
| Profit for the report period | 4.6 | 6.2 | -26 | 4.0 | 14 |
| Attributable to: | |||||
| Shareholders in Bank of Åland Plc | 4.6 | 6.2 | -26 | 4.0 | 14 |
| Volume | |||||
| Receivables from the public and public sector | 4.017 | 4.022 | 0 | 4.020 | 0 |
| Deposits from the public and public sector | 3.107 | 3.304 | -6 | 3.098 | 0 |
| Actively managed assets 1 | 5.476 | 5.177 | 6 | 5.575 | -2 |
| Equity capital | 247 | 242 | 2 | 235 | 5 |
| Balance sheet total | 5.542 | 5.558 | 0 | 5.495 | 1 |
| Risk exposure amount | 1.548 | 1.578 | -2 | 1.611 | -4 |
| Financial ratios | |||||
| Return on equity after taxes, % (ROE) 2 | 7.6 | 10.3 | 7.0 | ||
| Expence/income ratio 3 | 0.81 | 0.76 | 0.84 | ||
| Loan loss level, % 4 | 0.05 | 0.00 | 0.02 | ||
| Liquidity coverage ratio (LCR), % 5 | 171 | 120 | 148 | ||
| Loan/deposit ratio, % 6 | 129 | 122 | 130 | ||
| Core funding ratio, % 7 | 90 | 90 | 90 | ||
| Equity/assets ratio, % 8 | 4.5 | 4.4 | 4.3 | ||
| Common equtiy Tier 1 capital ratio, % 9 | 13.4 | 13.0 | 12.4 | ||
| Earnings per share, EUR 10 | 0.30 | 0.40 | -26 | 0.26 | 13 |
| Earnings per share after dilution, EUR | 0.30 | 0.40 | -26 | 0.26 | 14 |
| Equity capital per share, EUR 11 | 15.91 | 15.67 | 2 | 15.22 | 5 |
| Equity capital per share after dilution, EUR | 15.86 | 15.58 | 2 | 15.11 | 5 |
| Market price per Series A share, EUR | 15.10 | 13.30 | 14 | 15.80 | -4 |
| Market price per Series B share, EUR | 14.20 | 13.10 | 8 | 14.75 | -4 |
| Number of shares outstanding, 000s | 15.525 | 15.472 | 0 | 15.447 | 1 |
| Number of shares outstanding, after dilution, 000s | 15.595 | 15.590 | 0 | 15.585 | 0 |
| Working hours re-calculated to full-time equivalent positions | 683 | 692 | -1 | 671 | 2 |
1 Actively managed assets encompassed managed assets in the Group’s own mutual funds, as well as discretionary and advisory securities volume
2 Profit for the report period attributable to shareholders / Average shareholders´portion of equity capital
3 Expenses / Income
4 Impairment losses on loan portfolio and other commitments / Lending to the public at the beginning of the period
5 Liquidity coverage ratio (LCR) = liquid assets, level 1 and 2 / 30-day net outflow
6 Receivables from the public and public sector / Deposits from the public and public sector
7 Receivables from the public and public sector / Deposits including certificates of deposit, index bonds and debentures issued to the public and public sector plus covered bonds issued
8 Equity capital / Balance sheet total
9 Common equity Tier 1 capital / Risk exposure amount
10 Shareholders’ portion of earnings for the period / Avarage number of shares
11 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 Interim Report for the period January – March 2019, which is enclosed with this stock exchange release. The Bank`s Interim Report for the period January – March 2019 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-mar_19.pdf
Mariehamn, April 25, 2019
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
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25.04.2019