Bank of Åland Plc: Half-Year Financial Report for the period January - June 2022
19 July 2022 - 4:00PM
Bank of Åland Plc: Half-Year Financial Report for the period
January - June 2022
Bank of Åland Plc Half-Year Financial Report July 19, 2022 9:00
am
Half-Year Financial Report for the period
January - June 2022 “A turbulent first half of 2022: with
war in Ukraine, high inflation, rising interest rates and bond
yields as well as plunging stock markets. Despite this turbulence,
we have seen a continued stable net inflow of new customers and
financial investment volumes, EUR +294 M. Adjusted for the
divestment of most of our Swedish mortgage loan portfolio − about
EUR 1 billion − lending grew by EUR 372 M during the first six
months of this year.
“To summarise, it was a satisfactory first half. We will have to
prepare ourselves for continued turbulence during the second half
of 2022, but my perception is that the Bank of Åland will also take
on the rest of the year with solid confidence.”
Peter Wiklöf, Managing Director and Chief Executive
January - June 2022 compared to January - June
2021
- Net operating profit
was about the same and totalled EUR 24.3 M (24.4).
- Net interest income
decreased by 3 per cent to EUR 29.6 M (30.5).
- Net commission income increased by 8 per cent to EUR 41.5 M
(38.5).
- Total expenses increased by 13 per cent to EUR 67.2 M
(59.7).
- Net impairment losses on financial assets (including
recoveries) totalled EUR 2.8 M (0.6), equivalent to a loan loss
level of 0.13 (0.03) per cent.
- Return on equity after taxes (ROE) decreased to 13.4 (14.4) per
cent.
- Earnings per share decreased by 2 per cent to EUR 1.25
(1.27).
- The common equity Tier 1 capital ratio increased to 12.5 per
cent (12.1 per cent on December 31, 2021).
- Unchanged future outlook: The Bank of Åland expects its net
operating profit in 2022 to be about the same as in 2021.
The second quarter of 2022 compared to the second
quarter of 2021
- Net operating profit decreased by 23 per cent to EUR 10.4 M
(13.6).
- Net interest income was about the same and totalled EUR 15.2 M
(15.2).
- Net commission income increased by 12 per cent to EUR 21.2 M
(18.9).
- Total expenses increased by 9 per cent to EUR 31.7 M
(29.2).
- Net impairment losses on financial assets (including
recoveries) totalled EUR 1.2 M (0.5), equivalent to a loan loss
level of 0.13 (0.05) per cent.
- Return on equity after taxes (ROE) decreased to 11.9 (16.4) per
cent.
- Earnings per share decreased by 25 per cent to EUR 0.54
(0.72).
Financial summary
Group |
Q2 2022 |
Q12022 |
% |
Q22021 |
% |
Jan-Jun 2022 |
Jan-Jun 2021 |
% |
EUR M |
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
Net interest income |
15.2 |
14.3 |
6 |
15.2 |
0 |
29.6 |
30.5 |
-3 |
Net commission income |
21.2 |
20.2 |
5 |
18.9 |
12 |
41.5 |
38.5 |
8 |
Net income from financial items at fair value |
-0.2 |
10.8 |
|
-0.6 |
-64 |
10.6 |
-0.3 |
|
Other income |
7.1 |
5.7 |
23 |
9.7 |
-27 |
12.8 |
15.9 |
-20 |
Total income |
43.3 |
51.1 |
-15 |
43.2 |
0 |
94.4 |
84.6 |
12 |
|
|
|
|
|
|
|
|
|
Staff costs |
-19.1 |
-18.9 |
1 |
-18.5 |
3 |
-37.9 |
-36.0 |
5 |
Other expenses |
-9.5 |
-9.7 |
-2 |
-7.8 |
22 |
-19.2 |
-15.2 |
27 |
Statutory fees |
0.1 |
-3.6 |
|
0.1 |
55 |
-3.4 |
-2.8 |
25 |
Depreciation/amortisation |
-3.3 |
-3.4 |
-3 |
-2.9 |
13 |
-6.7 |
-5.8 |
14 |
Total expenses |
-31.7 |
-35.5 |
-11 |
-29.2 |
9 |
-67.2 |
-59.7 |
13 |
|
|
|
|
|
|
|
|
|
Profit before impairment losses |
11.6 |
15.6 |
-26 |
14.1 |
-18 |
27.2 |
25.0 |
9 |
|
|
|
|
|
|
|
|
|
Impairment losses on financial assets, net |
-1.2 |
-1.7 |
-32 |
-0.5 |
|
-2.8 |
-0.6 |
|
Net operating
profit |
10.4 |
13.9 |
-25 |
13.6 |
-23 |
24.3 |
24.4 |
0 |
|
|
|
|
|
|
|
|
|
Income taxes |
-2.1 |
-2.9 |
-27 |
-2.4 |
-11 |
-5.0 |
-4.5 |
9 |
Profit for the report
period |
8.3 |
11.0 |
-24 |
11.2 |
-26 |
19.4 |
19.8 |
-2 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Shareholders in Bank of Åland
Plc |
8.3 |
11.0 |
-24 |
11.2 |
-26 |
19.4 |
19.8 |
-2 |
|
|
|
|
|
|
|
|
|
Volume |
|
|
|
|
|
|
|
|
Lending to the public |
4,145 |
3,936 |
5 |
4,518 |
-8 |
|
|
|
Deposits from the public |
4,295 |
4,238 |
1 |
3,801 |
13 |
|
|
|
Actively managed assets 1 |
8,425 |
9,082 |
-7 |
8,541 |
-1 |
|
|
|
Managed mortgage loans 2 |
1,162 |
1,114 |
4 |
|
|
|
|
|
Equity capital |
310 |
310 |
0 |
311 |
0 |
|
|
|
Balance sheet total |
5,943 |
5,950 |
0 |
6,261 |
-5 |
|
|
|
Risk exposure amount |
1,893 |
1,805 |
5 |
1,870 |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
Financial ratios |
|
|
|
|
|
|
|
|
Return on equity after taxes, % (ROE) 3 |
11.9 |
15.0 |
|
16.4 |
|
13.4 |
14.4 |
|
Return on equity after taxes, % (ROE), moving 12-month average to
end of report period |
13.6 |
14.7 |
|
13.7 |
|
|
|
|
Expense/income ratio 4 |
0.73 |
0.69 |
|
0.67 |
|
0.71 |
0.71 |
|
Loan loss level, % 5 |
0.13 |
0.16 |
|
0.05 |
|
0.13 |
0.03 |
|
Gross share of loans in Stage 3, % 6 |
1.40 |
1.55 |
|
1.01 |
|
|
|
|
Liquidity coverage ratio (LCR), % 7 |
114 |
132 |
|
152 |
|
|
|
|
Net stable funding ratio (NSFR), % 8 |
116 |
121 |
|
110 |
|
|
|
|
Loan/deposit ratio, % 9 |
96 |
93 |
|
119 |
|
|
|
|
Common equtiy Tier 1 capital ratio, % 10 |
12.5 |
13.9 |
|
13.0 |
|
|
|
|
Tier 1 capital ratio, % 11 |
14.0 |
15.5 |
|
14.6 |
|
|
|
|
Total capital ratio, % 12 |
15.9 |
17.5 |
|
16.1 |
|
|
|
|
Leverage ratio, % 13 |
4.3 |
5.0 |
|
4.8 |
|
|
|
|
Earnings per share, EUR 14 |
0.54 |
0.71 |
-24 |
0.72 |
-25 |
1.25 |
1.27 |
-2 |
Earnings per share, EUR, moving 12-month average to end of report
period |
2.53 |
2.71 |
-7 |
2.45 |
3 |
|
|
|
Equity capital per share, EUR 15 |
18.06 |
18.02 |
0 |
18.07 |
0 |
|
|
|
Working hours re-calculated to full-time equivalent positions |
843 |
836 |
1 |
825 |
2 |
838 |
807 |
4 |
1 Actively managed assets encompassed managed assets in the
Group’s own mutual funds, as well as discretionary and advisory
securities volume plus external funds with contractual earnings2
Total mortgage loan volume in Borgo AB that the Bank of Åland
manages through various services3 Profit for the report period
attributable to shareholders / Average shareholders´portion of
equity capital4 Expenses / Income5 Impairment losses on loan
portfolio and other commitments / Lending to the public at the
beginning of the period"6 Share of loans in Stage 3 / Gross lending
to the public7 LCR, assets at levels 1 and 2 / 30-day net cash
outflow8 Available stable funding / Stable funding requirement9
Lending to the public / Deposits from the public10 Common equity
Tier 1 capital / Risk exposure amount11 Tier 1 capital / Risk
exposure amount12 Own funds / Risk exposure amount13 Tier 1 capital
/ Total exposure metric14 Shareholders’ portion of profit for the
period / Average number of shares15 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 Half-Year Financial Report for the period
January – June 2022, which is enclosed with this stock exchange
release. The Bank`s Half-Year Financial Report for the period
January – June 2022 is attached to this release in PDF format and
is also available on the company’s web site at
Mariehamn, July 19, 2022
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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