Mariehamn, 2015-07-24 08:00 CEST (GLOBE NEWSWIRE) --
Bank of Åland Plc
Interim Report
July 24, 2015, 9.00 a.m.
Interim Report for the period January–June 2015
“During the first half of 2015, we saw stable and very satisfactory volume growth in our Private Banking and Premium Banking operations. This growth enables us to maintain strong net commission income and rising net interest income, despite falling market interest rates.
“The market turbulence in Europe caused by the Greek debt crisis seems to have calmed down temporarily, but financial markets are very likely to be characterised by high volatility and underlying worries during the foreseeable future.”
Peter Wiklöf, Managing Director
January−June 2015 compared to January−June 2014
-
Net operating profit improved by EUR 9.4 M to EUR 17.3 M (7.9).
-
Profit for the period attributable to shareholders improved by EUR 8.6 M to EUR 14.0 M (5.4).
-
Net interest income increased by 7 per cent to EUR 25.6 M (23.9).
-
Net commission income increased by 17 per cent to EUR 24.7 M (21.2).
-
Total expenses decreased by 7 per cent to EUR 45.3 M (48.7).
-
Net impairment losses on loans (including recoveries) decreased by 49 per cent to EUR 0.5 M (1.0), equivalent to a loan loss level of 0.03 (0.06) per cent.
-
Return on equity after taxes (ROE) increased to 14.2 per cent (6.0).
-
Earnings per share amounted to EUR 0.92 (0.38).
- The core Tier 1 capital ratio amounted to 11.1 per cent (December 31, 2014: 10.9 per cent).
The second quarter of 2015 compared to the second quarter of 2014
-
Net operating profit improved by 41 per cent to EUR 7.8 M (5.5).
-
Profit for the period attributable to shareholders improved by 56 per cent to EUR 6.2 M (4.0).
-
Net interest income increased by 7 per cent to EUR 12.9 M (12.1).
-
Net commission income increased by 13 per cent to EUR 11.9 M (10.5).
-
Total expenses decreased by 7 per cent to EUR 22.5 M (24.1).
-
Net impairment losses on loans (including recoveries) increased to EUR 0.3 M (0.1), equivalent to a loan loss level of 0.04 (0.01) per cent.
-
Return on equity after taxes (ROE) increased to 12.5 per cent (8.8).
-
Earnings per share amounted to EUR 0.41 (0.28).
| Financial summary | ||||||||
|
Bank of Åland Group |
Q2 2015 |
Q1 2015 |
% |
Q2 2014 |
% |
Jan-Jun 2015 |
Jan-Jun 2014 |
% |
| EUR M | ||||||||
| Income | ||||||||
| Net interest income | 12.9 | 12.7 | 2 | 12.1 | 7 | 25.6 | 23.9 | 7 |
| Net commission income | 11.9 | 12.9 | -7 | 10.5 | 13 | 24.7 | 21.2 | 17 |
| Net income from financial items at fair value | 1.6 | 2.4 | -33 | 1.5 | 9 | 4.1 | 2.6 | 54 |
| Other income | 4.1 | 4.5 | -8 | 5.7 | -28 | 8.6 | 9.8 | -12 |
| Total income | 30.6 | 32.4 | -6 | 29.8 | 3 | 63.0 | 57.5 | 10 |
| Staff costs | -14.1 | -13.7 | 3 | -13.3 | 6 | -27.8 | -26.6 | 4 |
| Other expenses | -6.7 | -7.2 | -8 | -8.8 | -24 | -13.9 | -17.8 | -22 |
| Depreciation/amortisation | -1.7 | -1.9 | -10 | -2.0 | -17 | -3.6 | -4.3 | -16 |
| Total expenses | -22.5 | -22.8 | -2 | -24.1 | -7 | -45.3 | -48.7 | -7 |
| Profit before impairment losses | 8.1 | 9.6 | -16 | 5.6 | 44 | 17.8 | 8.8 | |
| Impairment losses on loans and other commitments | -0.3 | -0.2 | 65 | -0.1 | -0.5 | -1.0 | -49 | |
| Net operating profit | 7.8 | 9.4 | -17 | 5.5 | 41 | 17.3 | 7.9 | |
| Income taxes | -1.6 | -1.7 | -5 | -1.3 | 28 | -3.3 | -1.7 | 93 |
| Profit for the report period | 6.2 | 7.7 | -20 | 4.3 | 45 | 14.0 | 6.1 | |
| Attributable to: | ||||||||
| Non-controlling interests | 0.0 | 0.0 | 0.3 | 0.0 | 0.7 | |||
| Shareholders in Bank of Åland Plc | 6.2 | 7.7 | -20 | 4.0 | 56 | 14.0 | 5.4 | |
| Volume | ||||||||
| Lending to the public | 3,515 | 3,416 | 3 | 3,159 | 11 | |||
| Deposits from the public 1 | 2,755 | 2,507 | 10 | 2,492 | 11 | |||
| Investment volume 2 | 6,696 | 6,973 | -4 | 6,047 | 11 | |||
| Equity capital | 200 | 203 | -1 | 187 | 7 | |||
| Balance sheet total | 4,851 | 4,418 | 10 | 4,041 | 20 | |||
| Risk exposure amount | 1,619 | 1,599 | 1 | 1,469 | 10 | |||
| Financial ratios | ||||||||
| Return on equity after taxes, % (ROE) 3 | 12.5 | 15.9 | 8.8 | 14.2 | 6.0 | |||
| Expense/income ratio 4 | 0.73 | 0.70 | 0.81 | 0.72 | 0.85 | |||
| Loan loss level, % 5 | 0.04 | 0.02 | 0.01 | 0.03 | 0.06 | |||
| Gross non-performing receivables, % 6 | 0.65 | 0.61 | 1.07 | |||||
| Level of provisions for doubtful receivables, % 7 | 43 | 68 | 47 | |||||
| Core funding ratio, % 8 | 93 | 103 | 100 | |||||
| Equity/assets ratio, % 9 | 4.1 | 4.6 | 4.6 | |||||
| Tier 1 capital ratio, % 10 | 11.1 | 11.2 | 11.3 | |||||
| Earnings per share, EUR 11 | 0.41 | 0.54 | -24 | 0.28 | 48 | 0.92 | 0.38 | |
| Earnings per share after dilution, EUR | 0.41 | 0.54 | -24 | 0.28 | 48 | 0.92 | 0.38 | |
| Equity capital per share, EUR 12 | 13.18 | 14.04 | -6 | 12.63 | 4 | |||
| Equity capital per share after dilution, EUR | 13.15 | 14.01 | -6 | 12.63 | 4 | |||
| Market price per Series A share, EUR | 15.50 | 15.10 | 3 | 10.27 | 51 | |||
| Market price per Series B share, EUR | 15.75 | 14.15 | 11 | 8.45 | 86 | |||
| Number of shares outstanding (not own shares), 000s | 15,178 | 14,415 | 5 | 14,398 | 5 | |||
| Number of shares outstanding (not own shares), after dilution, 000s | 15,278 | 14,515 | 5 | 14,398 | 6 | |||
| Working hours re-calculated to fulltime equivalent positions | 672 | 645 | 4 | 642 | 5 | 658 | 639 | 3 |
1 Deposits from the public and public sector entities, including certificates of deposit, index bonds and debentures issued to the public
2 Investment volume encompasses actively managed assets (the Group’s own mutual funds, discretionary and advisory managed assets) plus other securities volume in brokerage accounts
3 Profit for the report period attributable to shareholders / Average shareholders’ portion of equity capital
4 Expenses / Income
5 Impairment losses on loan portfolio and other commitments / Lending to the public at the beginning of the period
6 Non-performing receivables more than 90 days / Lending to the public before provisions for impairment losses
7 Provisions for individual impairment losses / 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/ Number of shares adjusted for share issue
12 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 Interim Report for the period January – June 2015, which is enclosed with this stock exchange release. The Bank`s Interim Report for the period January – June 2015 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-jun_15.pdf
Mariehamn, July 24, 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
