Bank of Åland Plc: Half-Year Financial Report for the period January - June 2024



 

Bank of Åland Plc
Half-Year Financial Report
July 19, 2024 9:00 EET

Half-Year Financial Report for the period January - June 2024

“We had a strong first half in terms of earnings, with a net operating profit of EUR 32.5 million (22.5) and with a return on equity after taxes of 18.2 per cent (12.8).

“The investment money we manage for our customers reached a new record level of more than EUR 10.3 billion.

“During the quarter, we completed the third and final migration (SEK 3 billion) of Swedish mortgages from our balance sheet to our partly owned mortgage company Borgo. We thus have a very strong capital and liquidity situation, which means that we are ready for future
growth as the demand for loans now hopefully starts to pick up.”

Peter Wiklöf, Managing Director and Chief Executive

January - June 2024 compared to January - June 2023

  • Net operating profit increased by 45 per cent to EUR 32.5 M (22.5).

  • Core income in the form of net interest income, net commission income and IT income increased by 15 per cent to EUR 108.4 M (94.3).

  • Other income decreased by 33 per cent to EUR 0.7 M (1.1).

  • Total expenses increased by 5 per cent to EUR 74.9 M (71.6).

  • Net impairment losses on financial assets (including recoveries) totalled EUR 1.7 M (1.3), equivalent to a loan loss level of 0.08 per cent (0.06).

  • Return on equity after taxes (ROE) increased to 18.2 per cent (12.8).

  • Earnings per share increased by 49 per cent to EUR 1.71 (1.15).

  • The common equity Tier 1 capital ratio increased to 14.0 per cent (13.7 on December 31, 2023).

  • Unchanged future outlook: The Bank of Åland expects its net operating profit in 2024 to be about the same as in 2023.

The second quarter of 2024 compared to the second quarter of 2023

  • Net operating profit increased by 10 per cent to EUR 15.6 M (14.2).

  • Core income in the form of net interest income, net commission income and IT income increased by 11 per cent to EUR 55.4 M (50.1).

  • Other income decreased to EUR −0.1 M (0.0).

  • Total expenses increased by 10 per cent to EUR 38.5 M (34.9).

  • Net impairment losses on financial assets (including recoveries) totalled EUR 1.2 M (1.0), equivalent to a loan loss level of 0.11 per cent (0.09).

  • Return on equity after taxes (ROE) increased to 18.3 per cent (17.0).

  • Earnings per share increased by 11 per cent to EUR 0.82 (0.74).

Financial summary

GroupQ2
2024
Q1
2024
 %Q2
2023
 %Jan-Jun
2024
Jan-Jun
2023
%
EUR M        
Income         
Net interest income26.426.3024.2952.744.020
Net commission income19.418.3618.2637.736.63
IT income9.78.4167.72618.113.831
Other income-0.10.8 0.0 0.71.1-33
Total income55.353.8350.110109.195.414
         
Staff costs-22.8-21.65-20.412-44.4-41.08
Other expenses-12.5-11.59-11.59-24.0-21.512
Statutory fees      -3.2-100
Depreciation/amortisation-3.3-3.21-3.010-6.5-5.910
Total expenses-38.5-36.46-34.910-74.9-71.65
         
Profit before impairment losses16.817.4-415.21034.223.844
         
Impairment losses on financial assets, net-1.2-0.5 -1.015-1.7-1.331
Net operating profit15.616.9-714.21032.522.545
         
Income taxes-3.1-3.3-6-2.94-6.3-5.027
Profit for the period12.613.6-811.31226.217.550
         
Attributable to:        
Shareholders in Bank of Åland Plc12.613.6-811.31226.217.550
         
Volume        
Lending to the public3,5303,762-64,274-17   
Deposits from the public3,4753,39923,700-6   
Actively managed assets10,34310,10029,01015   
Managed mortage loans2,9522,584142,05044   
Equity capital31130232975   
Balance sheet total4,7825,111-65,701-16   
Risk exposure amount1,6811,761-51,882-11   


 

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 Half-Year Financial Report for the period January - June 2024, which is enclosed with this stock exchange release.

The Bank`s Half-Year Financial Report for the period January - June 2024 is attached to this release in PDF format and is also available on the company’s web site at https://www.alandsbanken.com/financial-information/financial-reports

Mariehamn, July 19, 2024

THE BOARD OF DIRECTORS

For more information please contact:

Peter Wiklöf, Managing Director and Chief Executive, Bank of Åland Plc, tel. + 358 (0)40 512 7505

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alandsbanken_en_resultat_jan-jun_24