Mariehamn, 2017-07-20 08:00 CEST (GLOBE NEWSWIRE) --
Ålandsbanken Abp
Half-Year Financial Report
July 20, 2017 9:00 am
Half-Year Financial Report for the period January - June 2017
“Business with our new and existing customers continued to develop nicely during the second quarter. We grew deposits by 10 per cent, lending by 8 per cent and actively managed assets by 45 per cent year-on-year. Because of negative market interest rates, however, net interest income did not grow at the same pace as volume, while net commission income (+19 per cent) clearly benefited from the growth of customers’ financial investment business.
“Early in July we put our new capital market system into service in Sweden, marking a further milestone in the task of modernising and streamlining our operations.”
Peter Wiklöf, Managing Director
January−June 2017 compared to January-June 2016
-
Net operating profit decreased by 2 per cent to EUR 12.3 M (12.6).
-
Profit for the period attributable to shareholders was unchanged at EUR 9.8 M (9.8).
-
Net interest income was unchanged at EUR 27.5 M (27.5).
-
Net commission income rose by 13 per cent to EUR 24.9 M (22.1).
-
Total expenses increased by 9 per cent to EUR 50.2 M (46.0).
-
Net impairment losses on loans (including recoveries) amounted to EUR 1.0 M (2.1), equivalent to a loan loss level of 0.05 (0.12) per cent.
-
Return on equity after taxes (ROE) amounted to 8.8 (9.2) per cent.
-
Earnings per share amounted to EUR 0.64 (0.64).
- The common equity Tier 1 capital ratio, not taking into account transitional rules, amounted to 12.5 per cent (11.8 on December 31, 2016).
The second quarter of 2017 compared to the second quarter of 2016
-
Net operating profit increased by 8 per cent to EUR 5.0 M (4.6).
-
Profit for the period attributable to shareholders increased by 12 per cent to EUR 3.9 M (3.5).
-
Net interest income rose by 1 per cent to EUR 13.6 M (13.5).
-
Net commission income rose by 19 per cent to EUR 12.8 M (10.8).
-
Total expenses increased by 5 per cent to EUR 25.1 M (23.8).
-
Net impairment losses on loans (including recoveries) amounted to EUR 0.5 M (1.7), equivalent to a loan loss level of 0.05 (0.19) per cent.
-
Return on equity after taxes (ROE) increased to 7.0 (6.5) per cent.
- Earnings per share amounted to EUR 0.26 (0.23).
Financial summary
| Group |
Q2 2017 |
Q1 2017 |
% |
Q2 2016 |
% |
Jan-Jun 2017 |
Jan-Jun 2016 |
% |
| EUR M | ||||||||
| Income | ||||||||
| Net interest income | 13,6 | 13,9 | -2 | 13,5 | 1 | 27,5 | 27,5 | 0 |
| Net commission income | 12,8 | 12,1 | 6 | 10,8 | 19 | 24,9 | 22,1 | 13 |
|
Net income from financial items at fair value |
-0,6 | 0,9 | 1,9 | 0,3 | 3,4 | -92 | ||
| Other income | 4,6 | 6,1 | -24 | 3,9 | 19 | 10,7 | 7,7 | 40 |
| Total income | 30,5 | 32,9 | -7 | 30,1 | 1 | 63,5 | 60,7 | 5 |
| Staff costs | -14,9 | -15,9 | -6 | -14,7 | 2 | -30,9 | -28,9 | 7 |
| Other expences | -8,4 | -7,7 | 10 | -7,7 | 10 | -16,1 | -14,1 | 14 |
| Depreciation/amortisation | -1,7 | -1,6 | 8 | -1,5 | 15 | -3,3 | -3,0 | 8 |
| Total expenses | -25,1 | -25,1 | 0 | -23,8 | 5 | -50,2 | -46,0 | 9 |
| Profit before impairment losses | 5,5 | 7,8 | -30 | 6,3 | -13 | 13,3 | 14,7 | -10 |
| Impairment losses on loans and other commitments | -0,5 | -0,5 | 13 | -1,7 | -70 | -1,0 | -2,1 | -55 |
| Net operating profit | 5,0 | 7,4 | -33 | 4,6 | 8 | 12,3 | 12,6 | -2 |
| Income taxes | -1,0 | -1,5 | -30 | -1,1 | -6 | -2,5 | -2,8 | -8 |
| Profit for the report period | 3,9 | 5,9 | -33 | 3,5 | 12 | 9,8 | 9,8 | 0 |
| Attributable to: | ||||||||
| Shareholders in Bank of Åland Plc | 3,9 | 5,9 | -33 | 3,5 | 12 | 9,8 | 9,8 | 0 |
| Volume | ||||||||
| Lending to the public | 3 915 | 3 827 | 2 | 3 629 | 8 | |||
| Deposits from the public 1 | 3 190 | 3 095 | 3 | 2 894 | 10 | |||
| Actively managed assets 2 | 5 475 | 4 005 | 37 | 3 773 | 45 | |||
| Equity capital | 224 | 228 | -2 | 212 | 6 | |||
| Balance sheet total | 5 263 | 5 244 | 0 | 4 718 | 12 | |||
| Risk exposure amount | 1 537 | 1 596 | -4 | 1 500 | 2 | |||
| Financial ratios | ||||||||
| Return on equity after taxes, % (ROE) 3 | 7,0 | 10,6 | 6,5 | 8,8 | 9,2 | |||
| Expences/income ratio 4 | 0,82 | 0,76 | 0,79 | 0,79 | 0,76 | |||
| Loan loss level, % 5 | 0,05 | 0,05 | 0,19 | 0,05 | 0,12 | |||
| Gross non-performing receivables, % 6 | 0,68 | 0,72 | 0,65 | |||||
| Level of provisions for doubtful receivables, % 7 | 42 | 41 | 51 | |||||
| Core funding ratio, % 8 | 92 | 89 | 94 | |||||
| Equity/assets ratio, % 9 | 4,3 | 4,4 | 4,5 | |||||
| Tier 1 capital ratio, % 10 | 12,5 | 11,9 | 12,4 | |||||
| Earnings per share, EUR 11 | 0,26 | 0,38 | -33 | 0,23 | 12 | 0,64 | 0,64 | -1 |
| Earnings per share after dilution, EUR | 0,25 | 0,38 | -33 | 0,23 | 12 | 0,63 | 0,64 | -1 |
| Equity capital per share, EUR 12 | 14,60 | 14,90 | -2 | 13,90 | 5 | |||
| Equity capital per share after dilution, EUR | 14,45 | 14,74 | -2 | 13,81 | 5 | |||
| Market price per Series A share, EUR | 14,40 | 14,54 | -1 | 13,86 | 4 | |||
| Market price per Series B share, EUR | 14,20 | 14,20 | 0 | 13,74 | 3 | |||
| Number of shares outstanding (not own shares), 000s | 15 335 | 15 333 | 0 | 15 267 | 0 | |||
| Number of shares outstanding (not own shares), after dilution, 000s | 15 590 | 15 589 | 0 | 15 477 | 1 | |||
| Working hours re-calculated to full-time equivalent positions | 680 | 689 | -1 | 690 | -1 | 685 | 678 | 1 |
1 Deposits from the public and public sector enteties, including certificates of deposit, index bonds and debentures issued to the public.
2 Actively managed assets encompassed managed assets in the Group’s own mutual funds, as well as discretionary and advisory securities volume.
3 Profit for the report period attributable to shareholders / Average shareholders´portion of equity capital.
4 Expenses / Income.
5 Impaiment losses on loan portfolio and other commitments / Lending to the public at the beginning of the period.
6 Gross doubtful receivables / Lending to the public before provisions for impairment losses.
7 Provisions for individual impairment losses / Gross 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 / Avarage number of shares.
12 Shareholders’ portion of equity capital / Number of shares less own 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 2017, which is enclosed with this stock exchange release. The Bank`s Half-Year Financial Report for the period January – June 2017 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_17.pdf
Mariehamn, July 20, 2017
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
