Mariehamn, 2016-10-25 08:00 CEST (GLOBE NEWSWIRE) --
Bank of Åland Plc
Interim report
October 25, 2016, 9.00 p.m.
Interim Report for the period January–September 2016
“During the third quarter of 2016, we delivered a stable net operating profit of EUR 6.2 M. Thanks to our rising deposit and lending volumes, we managed to defend our net interest income despite a continued decline in market interest rates. We also clearly saw our housing and property-related mutual funds continue to attract new investors.
“After the summer, we launched our new debit and credit card, the Baltic Sea Card. This card is biodegradable, but our bank is also the first in the world to enable users to see the carbon footprint created by their own consumption. The Baltic Sea Card and its characteristics have received worldwide attention.”
Peter Wiklöf, Managing Director
January - September 2016 compared to January – September 2015
-
Net operating profit decreased by 21 per cent to EUR 18.8 M (23.6).
-
Profit for the period attributable to shareholders decreased by 22 per cent to EUR 14.8 M (19.0).
-
Net interest income increased by 5 per cent to EUR 41.1 M (39.2).
-
Net commission income decreased by 7 per cent to EUR 32.7 M (35.3).
-
Total expenses increased by 1 per cent to EUR 67.4 M (66.9).
-
Net impairment losses on loans (including recoveries) amounted to EUR 3.0 M (1.9), equivalent to a loan loss level of 0.11 (0.08) per cent.
-
Return on equity after taxes (ROE) amounted to 9.2 (12.7) per cent.
-
Earnings per share amounted to EUR 0.92 (1.25).
- The core Tier 1 capital ratio, not taking into account transitional rules, amounted to 12.1 per cent (12.0 on December 31, 2015).
The third quarter of 2016 compared to the third quarter of 2015
-
Net operating profit decreased by 3 per cent to EUR 6.2 M (6.4).
-
Profit for the period attributable to shareholders decreased by 2 per cent to EUR 5.0 M (5.1).
-
Net interest income amounted to EUR 13.7 M (13.6).
-
Net commission income amounted to EUR 10.6 M (10.5).
-
Total expenses decreased by 1 per cent to EUR 21.5 M (21.6).
-
Net impairment losses on loans (including recoveries) amounted to EUR 0.9 M (1.4), equivalent to a loan loss level of 0.10 (0.16) per cent.
-
Return on equity after taxes (ROE) amounted to 9.2 (9.9) per cent.
- Earnings per share amounted to EUR 0.33 (0.33).
Financial summary
| Bank of Åland Group |
Q3 2016 |
Q2 2016 |
% |
Q3 2015 |
% |
Jan-Sep 2016 |
Jan-Sep 2015 | % |
| EUR M | ||||||||
| Income | ||||||||
| Net interest income | 13.7 | 13.5 | 1 | 13.6 | 0 | 41.1 | 39.2 | 5 |
| Net commission income | 10.6 | 10.8 | -2 | 10.5 | 0 | 32.7 | 35.3 | -7 |
| Net income from financial items at fair value | 0.5 | 1.9 | -71 | 1.5 | -64 | 3.9 | 5.5 | -30 |
| Other income | 3.8 | 3.9 | -3 | 3.8 | 0 | 11.5 | 12.4 | -8 |
| Total income | 28.5 | 30.1 | -5 | 29.4 | -3 | 89.2 | 92.4 | -3 |
| Staff costs | -13.3 | -14.7 | -10 | -13.2 | 1 | -42.2 | -40.9 | 3 |
| Other expences | -6.7 | -7.7 | -12 | -6.7 | 0 | -20.8 | -20.6 | 1 |
| Depreciation/amortisation | -1.5 | -1.5 | -2 | -1.7 | -14 | -4.5 | -5.3 | -16 |
| Total expenses | -21.5 | -23.8 | -10 | -21.6 | -1 | -67.4 | -66.9 | 1 |
| Profit before impairment losses | 7.1 | 6.3 | 13 | 7.8 | -9 | 21.8 | 25.6 | -15 |
| Impairment losses on loans and other commitments | -0.9 | -1.7 | -48 | -1.4 | -37 | -3.0 | -1.9 | 58 |
| Net operating profit | 6.2 | 4.6 | 35 | 6.4 | -3 | 18.8 | 23.6 | -21 |
| Income taxes | -1.2 | -1.1 | 11 | -1.3 | -6 | -4.0 | -4.6 | -13 |
| Profit for the report period | 5.0 | 3.5 | 43 | 5.1 | -2 | 14.8 | 19.0 | -22 |
| Attributable to: | ||||||||
| Shareholders in Bank of Åland Plc | 5.0 | 3.5 | 43 | 5.1 | -2 | 14.8 | 19.0 | -22 |
| Volume | ||||||||
| Lending to the public | 3,692 | 3,629 | 2 | 3,531 | 5 | |||
| Deposits from the public 1 | 2,897 | 2,894 | 0 | 2,611 | 11 | |||
| Investment volume 2 | 6,634 | 6,328 | 5 | 6,502 | 2 | |||
| Equity capital | 217 | 212 | 2 | 208 | 5 | |||
| Balance sheet total | 4,909 | 4,718 | 4 | 4,499 | 9 | |||
| Risk exposure amount | 1,538 | 1,500 | 3 | 1,558 | -1 | |||
| Financial ratios | ||||||||
| Return on equity after taxes, % (ROE) 3 | 9.2 | 6.5 | 9.9 | 9.2 | 12.7 | |||
| Expences/income ratio 4 | 0.75 | 0.79 | 0.73 | 0.76 | 0.72 | |||
| Loan loss level, % 5 | 0.10 | 0.19 | 0.16 | 0.11 | 0.08 | |||
| Gross non-performing receivables, % 6 | 0.90 | 0.65 | 0.80 | |||||
| Level of provisions for doubtful receivables, %7 | 39 | 51 | 35 | |||||
| Core funding ratio, % 8 | 90 | 94 | 99 | |||||
| Equity/assets ratio, % 9 | 4.4 | 4.5 | 4.6 | |||||
| Tier 1 capital ratio, % 10 | 12.1 | 12.4 | 11.9 | |||||
| Earnings per share, EUR 11 | 0.33 | 0.23 | 43 | 0.33 | -3 | 0.92 | 1.25 | -26 |
| Earnings per share after dilution, EUR | 0.32 | 0.23 | 42 | 0.33 | -3 | 0.92 | 1.25 | -27 |
| Equity capital per share, EUR 12 | 14.20 | 13.90 | 2 | 13.66 | 4 | |||
| Equity capital per share after dilution, EUR | 14.07 | 13.81 | 2 | 13.60 | 3 | |||
| Market price per Series A share, EUR | 14.10 | 13.86 | 2 | 17.48 | -19 | |||
| Market price per Series B share, EUR | 13.58 | 13.74 | -1 | 16.40 | -17 | |||
| Number of shares outstanding (not own shares), 000s | 15,299 | 15,267 | 0 | 15,208 | 1 | |||
| Number of shares outstanding (not own shares), after dilution, 000s | 15,540 | 15,477 | 0 | 15,338 | 1 | |||
| Working hours re-calculated to full-time equivalent positions | 690 | 690 | 0 | 667 | 3 | 682 | 661 | 3 |
1 Deposits from the public and public sector enteties, including certificates of deposit, index bonds and debentures issued to the public
2 Investment volume encompassed actively managed assets (the Group´s own mutual funds, discretionary and advisory managed assets) plus other securities volume in brokarage accounts"
3 Profit for the report period attributable to shareholders / Average shareholders´portion of equity capital
4 Expences / 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 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 2016, which is enclosed with this stock exchange release. The Bank`s Interim Report for the period January – September 2016 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_16.pdf
Mariehamn, October 25, 2016
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
