Mariehamn, 2015-10-27 08:00 CET (GLOBE NEWSWIRE) --
Bank of Åland Plc
Interim Report
October 27, 2015, 9.00 a.m.
Interim Report for the period January–September 2015
“During the first nine months of 2015, net operating profit improved by 60 per cent to EUR 23.6 per cent.
“During the third quarter, we saw continued negative market interest rates and a relatively large downward correction in the stock market. In spite of this, the Bank of Åland Group had a stable income trend, with net interest income showing especially strong performance. Net impairment provisions of EUR 1.4 million, related to a very limited number of customers, were charged to third quarter earnings.
“We are seeing a continued good influx of customers in all our business areas.”
Peter Wiklöf, Managing Director
January−September 2015 compared to January−September 2014
• Net operating profit improved by 60 per cent to EUR 23.6 M (14.8).
• Profit for the period attributable to shareholders improved by 81 per cent to EUR 19.0 M (10.5).
• Net interest income increased by 7 per cent to EUR 39.2 M (36.7).
• Net commission income increased by 11 per cent to EUR 35.3 M (31.7).
• Total expenses decreased by 5 per cent to EUR 66.9 M (70.6).
• Net impairment losses on loans (including recoveries) increased by 53 per cent to EUR 1.9 M
(1.2), equivalent to a loan loss level of 0.08 (0.05) per cent.
• Return on equity after taxes (ROE) increased to 12.7 per cent (7.6).
• Earnings per share increased to EUR 1.25 (0.73).
• The core Tier 1 capital ratio amounted to 11.9 per cent (December 31, 2014: 10.9 per cent).
The third quarter of 2015 compared to the third quarter of 2014
Compared to the third quarter of 2014
• Net operating profit fell by 8 per cent to EUR 6.4 M (6.9).
• Profit for the period attributable to shareholders fell by 1 per cent to EUR 5.1 M (5.1).
• Net interest income increased by 7 per cent to EUR 13.6 M (12.7).
• Net commission income increased by 1 per cent to EUR 10.5 M (10.5).
• Total expenses decreased by 1 per cent to EUR 21.6 M (21.9).
• Net impairment losses on loans (including recoveries) increased to EUR 1.4 M (0.3), equivalent to a loan loss level of 0.16 (0.03) per cent.
• Return on equity after taxes (ROE) decreased to 9.9 per cent (10.9).
• Earnings per share decreased to EUR 0.33 (0.35).
Financial summary
Bank of Åland Group |
Q3 2015 |
Q2 2015 |
% |
Q3 2014 |
% |
Jan-Sep 2015 |
Jan- Sep 2014 |
% |
EUR M | ||||||||
Income | ||||||||
Net interest income | 13.6 | 12.9 | 5 | 12.7 | 7 | 39.2 | 36.7 | 7 |
Net commission income | 10.5 | 11.9 | -11 | 10.5 | 1 | 35.3 | 31.7 | 11 |
Net income from financial items at fair value | 1.5 | 1.6 | -11 | 1.9 | -23 | 5.5 | 4.5 | 22 |
Other income | 3.8 | 4.1 | -9 | 4.0 | -5 | 12.4 | 13.7 | -10 |
Total income | 29.4 | 30.6 | -4 | 29.1 | 1 | 92.4 | 86.6 | 7 |
Staff costs | -13.2 | -14.1 | -6 | -12.0 | 10 | -40.9 | -38.6 | 6 |
Other expenses | -6.7 | -6.7 | 0 | -7.8 | -14 | -20.6 | -25.6 | -19 |
Depreciation/amortisation | -1.7 | -1.7 | -2 | -2.1 | -19 | -5.3 | -6.4 | -17 |
Total expenses | -21.6 | -22.5 | -4 | -21.9 | -1 | -66.9 | -70.6 | -5 |
Profit before impairment losses | 7.8 | 8.1 | -4 | 7.2 | 8 | 25.6 | 16.0 | 60 |
Impairment losses on loans and other commitments | -1.4 | -0.3 | -0.3 | -1.9 | -1.2 | 53 | ||
Net operating profit | 6.4 | 7.8 | -18 | 6.9 | -8 | 23.6 | 14.8 | 60 |
Income taxes | -1.3 | -1.6 | -19 | -1.5 | -12 | -4.6 | -3.2 | 44 |
Profit for the report period | 5.1 | 6.2 | -18 | 5.4 | -6 | 19.0 | 11.6 | 64 |
Attributable to: | ||||||||
Non-controlling interests | 0.0 | 0.0 | 0.3 | -99 | 0.0 | 1.1 | -100 | |
Shareholders in Bank of Åland Plc | 5.1 | 6.2 | -18 | 5.1 | -1 | 19.0 | 10.5 | 81 |
Volume | ||||||||
Lending to the public | 3,531 | 3,515 | 0 | 3,258 | 8 | |||
Deposits from the public 1 | 2,611 | 2,755 | -5 | 2,482 | 5 | |||
Investment volume 2 | 6,502 | 6,696 | -3 | 6,040 | 8 | |||
Equity capital | 208 | 200 | 4 | 193 | 8 | |||
Balance sheet total | 4,499 | 4,851 | -7 | 4,183 | 8 | |||
Risk exposure amount | 1,558 | 1,619 | -4 | 1,532 | 2 | |||
Financial ratios | ||||||||
Return on equity after taxes, % (ROE) 3 | 9.9 | 12.5 | 10.9 | 12.7 | 7.6 | |||
Expense/income ratio 4 | 0.73 | 0.73 | 0.75 | 0.72 | 0.82 | |||
Loan loss level, % 5 | 0.16 | 0.04 | 0.03 | 0.08 | 0.05 | |||
Gross non-performing receivables, % 6 | 0.80 | 0.65 | 0.54 | |||||
Level of provisions for doubtful receivables, % 7 | 35 | 43 | 47 | |||||
Core funding ratio, % 8 | 99 | 93 | 107 | |||||
Equity/assets ratio, % 9 | 4.6 | 4.1 | 4.6 | |||||
Tier 1 capital ratio, % 10 | 11.9 | 11.1 | 11.1 | |||||
Earnings per share, EUR 11 | 0.33 | 0.41 | -18 | 0.35 | -6 | 1.25 | 0.73 | 72 |
Earnings per share after dilution, EUR | 0.33 | 0.41 | -18 | 0.35 | -6 | 1.25 | 0.72 | 72 |
Equity capital per share, EUR 12 | 13.66 | 13.18 | 4 | 13.14 | 4 | |||
Equity capital per share after dilution, EUR | 13.60 | 13.15 | 3 | 13.11 | 4 | |||
Market price per Series A share, EUR | 17.48 | 15.50 | 13 | 11.32 | 54 | |||
Market price per Series B share, EUR | 16.40 | 15.75 | 4 | 9.63 | 70 | |||
Number of shares outstanding (not own shares), 000s | 15,208 | 15,178 | 0 | 14,398 | 6 | |||
Number of shares outstanding (not own shares), after dilution, 000s |
15,338 | 15,278 | 0 | 14,498 | 6 | |||
Working hours re-calculated to full-time equivalent positions | 667 | 672 | -1 | 656 | 2 | 661 | 645 | 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 – September 2015, which is enclosed with this stock exchange release. The Bank`s Interim Report for the period January – September 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-sep_15.pdf
Mariehamn, October 27, 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