Mariehamn, 2015-02-13 08:00 CET (GLOBE NEWSWIRE) --
Bank of Åland Plc
Year-end Report
February 13, 2015, 9.00
Year-end Report for the period January–December 2014
“We closed the year strongly with another improved quarter. Altogether during the year, we more than doubled our net operating profit, which totalled EUR 22.4 M. It is especially satisfying to see the earnings improvements on the Finnish mainland and in Sweden, with Sweden now having clearly begun to contribute positive earnings. We are continuing to strengthen our offering in the financial investment field, and during 2014 the investment volume that we manage on behalf of our customers grew by 14 per cent to a new record level of EUR 5,042 M.
“Growth remains weak in our vicinity, and central banks are competing to see which can stimulate the economy most. This will lead to continued great market uncertainty and to extremely low market interest rates, which among other things will squeeze our net interest income and that of other banks during 2015.”
Peter Wiklöf, Managing Director
January−December 2014 compared to January−December 2013
• Net operating profit improved by EUR 12.0 M or 116 per cent to EUR 22.4 M (10.4).
• Profit for the period attributable to shareholders improved by EUR 9.4 M or 141 per cent to EUR 16.1 M (6.7).
• Net interest income increased by 16 per cent to EUR 49.3 M (42.4).
• Net commission income increased by 9 per cent to EUR 46.2 M (42.4).
• Total expenses increased by 3 per cent to EUR 96.4 M (93.5).
• Net impairment losses on loans (including recoveries) decreased by 57 per cent to EUR 1.8 M (4.1), equivalent to a loan loss level of 0.06 (0.14) per cent.
• Return on equity after taxes (ROE) increased to 8.7 per cent (3.8).
• Earnings per share increased to EUR 1.12 (0.46).
• The core Tier 1 capital ratio, excluding the Basel I floor effect, amounted to 10.9 per cent
(December 31, 2013: 10.8 per cent).
• The Board of Directors proposes a dividend of EUR 0.40 per share (0.15).
The fourth quarter of 2014 compared to the fourth quarter of 2013
• Net operating profit improved by EUR 4.0 M or 110 per cent to EUR 7.6 M (3.6).
• Profit for the period attributable to shareholders improved by EUR 2.5 M or 84 per cent to EUR 5.6 M (3.1).
• Net interest income increased by 9 per cent to EUR 12.6 M (11.6).
• Net commission income increased by 13 per cent to EUR 14.5 M (12.8).
• Total expenses increased by 5 per cent to EUR 25.8 M (24.6).
• Net impairment losses on loans (including recoveries) amounted to EUR 0.5 M (1.5), equivalent
to a loan loss level of 0.06 (0.19) per cent.
• Return on equity after taxes (ROE) increased to 11.7 per cent (6.9).
• Earnings per share increased to EUR 0.39 (0.21).
| Financial summary | ||||||||
| Bank of Åland Group | Q4 2014 | Q3 2014 | % |
Q4 2013 |
% | Jan-Dec 2014 | Jan-Dec 2013 | % |
| EUR M | ||||||||
| Income | ||||||||
| Net interest income | 12.6 | 12.7 | -1 | 11.6 | 9 | 49.3 | 42.4 | 16 |
| Net commission income | 14.5 | 10.5 | 39 | 12.8 | 13 | 46.2 | 42.4 | 9 |
| Net income from financial items at fair value | 2.2 | 1.9 | 17 | 1.0 | 6.8 | 7.4 | -8 | |
| Other income | 4.6 | 4.0 | 16 | 4.2 | 9 | 18.3 | 15.8 | 16 |
| Total income | 34.0 | 29.1 | 17 | 29.7 | 14 | 120.6 | 108.0 | 12 |
| Staff costs | -14.5 | -12.0 | 21 | -13.6 | 7 | -53.1 | -51.5 | 3 |
| Other expenses | -9.3 | -7.8 | 19 | -8.8 | 6 | -34.9 | -34.0 | 3 |
| Depreciation/amortisation | -2.0 | -2.1 | -2 | -2.2 | -7 | -8.4 | -8.0 | 5 |
| Total expenses | -25.8 | -21.9 | 18 | -24.6 | 5 | -96.4 | -93.5 | 3 |
| Profit before impairment losses | 8.1 | 7.2 | 13 | 5.1 | 60 | 24.2 | 14.5 | 67 |
| Impairment losses on loans and other commitments | -0.5 | -0.3 | 88 | -1.5 | -65 | -1.8 | -4.1 | -57 |
| Net operating profit | 7.6 | 6.9 | 10 | 3.6 | 110 | 22.4 | 10.4 | 116 |
| Income taxes | -1.6 | -1.5 | 6 | -0.4 | -4.8 | -2.7 | 78 | |
| Profit for the report period | 6.1 | 5.4 | 11 | 3.3 | 85 | 17.6 | 7.7 | 129 |
| Attributable to: | ||||||||
| Non-controlling interests | 0.4 | 0.3 | 28 | 0.2 | 1.5 | 1.0 | 47 | |
| Shareholders in Bank of Åland Plc | 5.6 | 5.1 | 10 | 3.1 | 84 | 16.1 | 6.7 | 141 |
| Volume | ||||||||
| Lending to the public | 3,343 | 3,258 | 3 | 3,104 | 8 | |||
| Deposits from the public 1 | 2,391 | 2,482 | -4 | 2,460 | -3 | |||
| Managed assets | 5,042 | 4,770 | 6 | 4,407 | 14 | |||
| Equity capital | 196 | 193 | 2 | 184 | 7 | |||
| Balance sheet total | 4,292 | 4,183 | 3 | 3,887 | 10 | |||
| Risk exposure amount | 1,554 | 1,532 | 1 | 1,475 | 5 | |||
| Financial ratios | ||||||||
| Return on equity after taxes, % (ROE) 2 | 11.7 | 10.9 | 6.9 | 8.7 | 3.8 | |||
| Expense/income ratio 3 | 0.76 | 0.75 | 0.83 | 0.80 | 0.87 | |||
| Loan loss level, % 4 | 0.06 | 0.03 | 0.19 | 0.06 | 0.14 | |||
| Gross non-performing receivables, % 5 | 0.65 | 1.04 | 1.02 | |||||
| Level of provisions for doubtful receivables, % 6 | 66 | 47 | 48 | |||||
| Core funding ratio, % 7 | 105 | 107 | 103 | |||||
| Equity/assets ratio, % 8 | 4,6 | 4.6 | 4.7 | |||||
| Tier 1 capital ratio, excluding Basel 1 floor effect, % 9 |
10.9 |
11.1 |
10.8 |
|||||
| Earnings per share, EUR 10 | 0.39 | 0.35 | 10 | 0.21 | 83 | 1.12 | 0.46 | |
| Earnings per share after dilution, EUR | 0.39 | 0.35 | 10 | 0.21 | 83 | 1.11 | 0.46 | |
| Equity capital per share, EUR 11 | 13.49 | 13.14 | 3 | 12.54 | 8 | |||
| Equity capital per share after dilution, EUR | 13.46 | 13.11 | 3 | 12.54 | ||||
| Market price per Series A share, EUR | 11.27 | 11.32 | 0 | 10.88 | 4 | |||
| Market price per Series B share, EUR | 10.87 | 9.63 | 13 | 7.94 | 37 | |||
| Number of shares outstanding (not own shares), 000s | 14,398 | 14,398 | 0 | 14,395 | 0 | |||
| Number of shares outstanding (not own shares),after dilution, 000s | 14,498 | 14,498 | 0 | 14,395 | 0 | |||
| Working hours re-calculated to full-time equivalent positions | 643 | 656 | -2 | 631 | 2 | 644 | 617 | 4 |
1 Deposits from the public and public sector entities, including certificates of deposit, index bonds and debentures issued to the public
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 Non-performing receivables more than 90 days / Lending to the public before provisions for impairment losses
6 Provisions for individual impairment losses / Doubtful receivables
7 Lending to the public / Deposits including certificates of deposit, index bonds and debentures issued to the public plus covered bonds issued
8 Equity capital / Balance sheet total
9 (Core Tier 1 capital / Capital requirement) x 8 %
10 Shareholders’ portion of earnings for the period/ Number of shares adjusted for share issue
11 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 Year-end Report for the period January – December 2014, which is enclosed with this stock exchange release. The Bank's Interim Report for the period January – December 2014 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-dec_14.pdf
Mariehamn, February 13, 2015
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
