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

Bank of Åland Interim report Bank of Åland Plc: Interim Report for the period January – June 2013 Mariehamn, 2013-07-29 14:00 CEST (GLOBE NEWSWIRE) -- Bank of Åland Plc Interim Report 29.7.2013 3.00 pm Interim Report for the period January – June 2013 “Our net operating profit was nine million euros better than in the corresponding period of 2012, showing that the Bank of Åland has made significant progress during the year. We have raised the efficiency of our organisation. Business volume has climbed, and especially in Sweden we are seeing steady growth. We have reviewed the pricing of our services, and an increasingly large proportion of our lending portfolio has achieved pricing that corresponds to the costs that result from the new regulations. I would like to express my warm gratitude to all our employees, who are implementing a major reform effort while continuing to deliver the best possible service to our customers. Yet much work remains before we have reached the level of profitability that our shareholders have a right to expect. Our earnings performance remains challenged by low market interest rates and cost increases due to recurring regulatory requirements.” Peter Wiklöf, Managing Director January'June 2013 compared to January'June 2012 • Net operating profit improved by EUR 9.3 M to EUR 5.2 M (-4.1). • Profit for the period attributable to shareholders improved by EUR 6.7 M to EUR 3.6 M (-3.1). • Net interest income decreased by 7 per cent to EUR 19.5 M (21.0). • Net commission income increased by 22 per cent to EUR 19.2 M (15.7). • Total expenses decreased by 2 per cent to EUR 46.3 M (47.3). • Impairment losses on loans (including recoveries) amounted to EUR 1.0 M (2.4), equivalent to a loan loss level of 0.06 (0.17) per cent. • Return on equity after taxes (ROE) amounted to 4.0 per cent (-3.6). • Earnings per share amounted to EUR 0.25 (-0.22). • The core Tier 1 capital ratio calculated without transitional rules amounted to 10.8 per cent (December 31, 2012: 10.9 per cent). The second quarter of 2013 compared to the first quarter of 2013 • Net operating profit amounted to EUR 2.5 M (2.6). • Profit for the period attributable to shareholders amounted to EUR 1.6 M (1.9). • Net interest income increased by 8 per cent to EUR 10.2 M (9.4). • Net commission income increased by 6 per cent to EUR 9.9 M (9.3). • Total expenses increased by 1 per cent to EUR 23.2 M (23.1). • Impairment losses on loans signified a net reversal of EUR 0.5 M (1.4), equivalent to a loan loss level of -0.06 per cent (0.19). Bank of Åland Group Q2 Q1 % Q2 % Jan-Ju Jan-Ju % 2013 2013 2012 n n 2013 2012 ------------- ------------------------------------------------------------------- EUR M -------------------------------------------------------------------------------- Income -------------------------------------------------------------------------------- Net interest income 10.2 9.4 8 9.6 6 19.5 21.0 -7 -------------------------------------------------------------------------------- Net commission income 9.9 9.3 6 7.6 31 19.2 15.7 22 -------------------------------------------------------------------------------- Net income from financial 1.4 4.4 -68 1.0 44 5.8 1.0 items at fair value -------------------------------------------------------------------------------- Other income 3.8 4.0 -5 4.2 -8 7.9 7.9 0 -------------------------------------------------------------------------------- Total income 25.3 27.1 -7 22.3 14 52.4 45.6 15 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Staff costs -13.2 -13.1 1 -1 3.1 1 -26.3 -26.3 0 -------------------------------------------------------------------------------- Other expenses -8.2 -8.1 1 -8.9 -8 -16.3 -17.4 -7 -------------------------------------------------------------------------------- Depreciation/amortisation -1.9 -1.9 -2 -1.8 2 -3.8 -3.6 6 -------------------------------------------------------------------------------- Total expenses -23.2 -23.1 1 -23.8 -2 -46.3 -47.3 -2 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit before impairment 2.1 4.1 -49 -1.5 6.1 -1.8 losses -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Impairment losses on loans 0.5 -1.4 -1.5 -1.0 -2.4 -60 and other ­commitments -------------------------------------------------------------------------------- Net operating profit 2.5 2.6 -4 -3.0 5.2 -4.1 ------- ------------------------------------------------------------------------- -------------------------------------------------------------------------------- Income taxes -0.6 -0.5 21 0.9 -1.1 1.3 -------------------------------------------------------------------------------- Profit for the report 1.9 2.1 -5 -2.1 4.1 -2.8 period -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Attributable to: -------------------------------------------------------------------------------- Non-controlling interests 0.3 0.2 47 0.1 0.5 0.2 -------------------------------------------------------------------------------- Shareholders in Bank of 1.6 1.9 -16 -2.3 3.6 -3.1 Åland Plc -------------------------------------------------------------------------------- -------------------------------------------- ------------------------------------ Volume -------------------------------------------------------------------------------- Lending to the public 3,021 2,977 1 2,861 6 -------------------------------------------------------------------------------- Deposits from the public 1 2,516 2,446 3 2,591 -3 -------------------------------------------------------------------------------- Managed assets 4,255 4,493 -5 3,889 9 -------------------------------------------------------------------------------- Equity capital 179 179 0 174 3 -------------------------------------------------------------------------------- Balance sheet total 3,787 3,743 1 3,575 6 -------------------------------------------------------------------------------- Risk-weighted assets 1,451 1,472 -1 1,445 0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Financial ratios -------------------------------------------------------------------- ------------ Return on equity after 3.7 4.4 -5.4 4.0 -3.6 taxes, % (ROE)2 -------------------------------------------------------------------------------- Expenses/income ratio, % 3 92 85 107 88 104 -------------------------------------------------------------------------------- Loan loss level, % 4 -0.06 0.19 0.21 0.06 0.17 -------------------------------------------------------------------------------- Gross non-performing 0.51 0.58 0.87 receivables, % 5 -------------------------------------------------------------------------------- Level of provisions for 90 98 73 doubtful receivables, % 6 -------------------------------------------------------------------------------- Core funding ratio, % 7 102 102 110 -------------------------------------------------------------------------------- Equity/assets ratio, % 8 4.7 4.8 4.9 -------------------------------------------------------------------------------- Tier 1 capital ratio, 10.8 10.4 9.7 without transit ional rules, % 9 -------------------------------------------------------------------------------- Earnings per share before 0.11 0.13 -0.16 0.25 -0.22 dilution, % 10 -------------------------------------------------------------------------------- Equity capital per share, 12.20 12.27 11.89 EUR 11 -------------------------------------------------------------------------------- Market price per Series A 10.50 12.50 10.90 share, EUR -------------------------------------------------------------------------------- Market price per Series B 7.68 8.14 7.58 share, EUR -------------------------------------------------------------------------------- Number of shares 14,395 14,395 14,395 outstanding (not own shares) thousands ----------------------------------------------- --------------------------------- Working hours 609 604 651 607 664 re-calculated to full-time equivalent positions -------------------------------------------------------------------------------- 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 – June 2013, which is enclosed with this stock exchange release. The Bank's Interim Report for the period January – June 2013 is attached to this release in PDF format and is also available on the company’s web site at http://www.alandsbanken.fi/info/opencms/pdf/result/en_resultat_jan-jun_13.pdf Mariehamn, July 29, 2013 THE BOARD OF DIRECTORS For more information please contact: Managing Director, Peter Wiklöf +358 204 2912 25