Mariehamn, 2012-10-29 15:00 CET (GLOBE NEWSWIRE) -- Bank of Åland Plc STOCK EXCHANGE RELEASE 29.10.2012 4.00 pm
Interim Report for the period January–September 2012
“During the third quarter, we carried out our first covered bond issue and our Malmö office
in Sweden reached break-even. The third quarter showed that our measures to improve profitability are beginning to have an impact. Earnings were clearly better than in the preceding quarter. Right now the conditions for conducting banking operations in the euro zone are unusually challenging, and we must take further steps – both on the income side and the expense side – to ensure acceptable profitability in this extreme low-interest environment.”
Peter Wiklöf, Managing Director
The third quarter of 2012 compared to the second quarter of 2012
- -Net operating profit amounted to EUR -0.5 M (-3.0), but an impairment loss of EUR -0.8 M was charged to earnings for the quarter when the recognised value of the Bank’s shareholding in the equities-trading platform Burgundy was changed to zero.
- Profit for the period attributable to shareholders was EUR -0.3 M (-2.2).
- Net interest income increased by 7 per cent to EUR 10.2 M (9.6).
- Net commission income increased by 1 per cent to EUR 7.7 M (7.6).
- Total expenses decreased by 9 per cent to EUR 21.5 M (23.7).
- Net loan losses were EUR 1.0 M (1.5), equivalent to a loan loss level of 0.14 (0.21) per cent.
- Earnings per share amounted to EUR -0.02 (-0.05).
January−September 2012 compared to January−September 2011
- Net operating profit amounted to EUR -4.5 M (1.4).
- Profit for the period attributable to shareholders was EUR -3.3 M (-1.7).
- Net interest income increased by 1 per cent to EUR 31.3 M (31.0).
- Net commission income decreased by 23 per cent to EUR 23.5 M (30.4).
- Total expenses decreased by 7 per cent to EUR 68.8 M (73.8).
- Net loan losses were EUR 3.4 M (0.9), equivalent to a loan loss level of 0.16 (0.05) per cent.
- Earnings per share amounted to EUR -0.23 (-0.14).
- The Tier 1 capital ratio increased to 9.7 per cent (8.4 per cent on December 31, 2011), mainly because the capital requirement for credit risks is now calculated according to the Internal Ratings Based (IRB) approach for the Finnish household portfolio.
- Record-low interest rates in the euro zone and uncertain stock market performance are weighing down earnings. The Group will implement income-raising measures and is continuing to review its measures to improve efficiency. The Bank will report sizeable capital gains from divestments of assets. These are higher than previously estimated. The Group will also incur further expenses related to staff cutbacks. If loan losses remain within forecasted limits, these circumstances and expectations will together lead the Group to report a positive operating profit in 2012 (The forecast has been changed).
|
Financial summary |
||||||||
| Bank of Åland Group | Q3 2012 | Q2 2011 | % | Q3 2011 | % |
Jan-Sep 2012 |
Jan-Sep 2011 |
% |
| EUR M | ||||||||
| Income | ||||||||
| Net interest income | 10.2 | 9.6 | 7 | 11.4 | -11 | 31.3 | 31.0 | 1 |
| Net commission income | 7.7 | 7.6 | 1 | 9.7 | -21 | 23.5 | 30.4 | -23 |
| Other income | 4.1 | 5.1 | -18 | 2.3 | 83 | 12.9 | 14.7 | -13 |
| Total income | 22.0 | 22.3 | -1 | 23.4 | -6 | 67.6 | 76.2 | -11 |
| Staff costs | -12.3 | -13.0 | -5 | -12.8 | -4 | -38.6 | -43.3 | -11 |
| Other expenses | -9.2 | -10.7 | -14 | -9.8 | -6 | -30.2 | -30.6 | -1 |
| Total expenses | -21.5 | -23.7 | -9 | -22.6 | -5 | -68.8 | -73.8 | -7 |
| Profit before loan losses etc. | 0.5 | -1.4 | 0.8 | -33 | -1.1 | 2.4 | ||
| Impairment losses on loans and other commitments | -1.0 | -1.5 | -36 | -0.7 | 43 | -3.4 | -0.9 | |
| Net operating profit | -0.5 | -3.0 | -84 | 0.1 | -4.5 | 1.4 | ||
| Income taxes | 0.3 | 0.9 | -70 | -0.6 | 1.6 | -2.2 | ||
| Profit for the report period | -0.2 | -2.0 | -91 | -0.5 | -63 | -2.9 | -0.8 | |
| Attributable to: | ||||||||
| Non-controlling interests | 0.2 | 0.1 | 11 | 0.1 | 80 | 0.4 | 1.0 | -61 |
| Shareholders in Bank of Åland Plc | -0.3 | -2.2 | -84 | -0.6 | -43 | -3.3 | -1.7 | 88 |
| Volume | ||||||||
| Lending to the public | 2,895 | 2,861 | 1 | 2,639 | 10 | |||
| Deposits from the public | 2,557 | 2,591 | -1 | 2,494 | 3 | |||
| Managed assets | 4,230 | 3,982 | 6 | 3,492 | 21 | |||
| Equity capital | 178 | 177 | 0 | 158 | 13 | |||
| Balance sheet total | 3,620 | 3,580 | 1 | 3,338 | 8 | |||
| Risk-weighted assets | 1,420 | 1,445 | 0 | 1,689 | -14 | |||
| Financial ratios | ||||||||
| Return on equity after taxes, % (ROE) | -0.4 | -4.5 | -1.5 | -2.2 | -1.5 | |||
| Expenses/income ratio, % | 98 | 106 | 97 | 102 | 97 | |||
| Loan loss level, % | 0.14 | 0.21 | 0.10 | 0.16 | 0.05 | |||
| Gross non-performing loans, % | 0.86 | 0.88 | 1.09 | 0.86 | 1.09 | |||
|
Level of provisions for doubtful receivables, % |
67 | 73 | 82 | 67 | 82 | |||
| Core funding ratio (Lending/deposits), % | 106 | 110 | 106 | 106 | 106 | |||
| Equity/assets ratio, % | 4.9 | 5.0 | 4.7 | 4.9 | 4.7 | |||
| Tier 1 capital ratio, % | 9.7 | 9.6 | 7.3 | 9.7 | 7.3 | |||
| Earnings per share before dilution, % | -0.02 | -0.15 | -0.05 | -0.23 | -0.14 | |||
| Equity capital per share, EUR | 12.12 | 12.13 | 12.45 | 12.12 | 12.45 | |||
| Market price per Series A share, EUR | 10.04 | 10.90 | 16.00 | 10.04 | 16.00 | |||
| Market price per Series B share, EUR | 7.77 | 7.58 | 10.50 | 7.77 | 10.50 | |||
|
Price per A share, adjusted for share issue, EUR |
10.04 | 10.90 | 16.00 | 10.04 | 16.00 | |||
|
Price per B share, adjusted for share issue, EUR |
7.77 | 7.58 | 10.50 | 7.77 | 10.50 | |||
| Number of shares outstanding (not own shares) thousands | 14,395 | 14,395 | 12,374 | 14,395 | 12,374 | |||
|
Working hours re-calculated to full-time equivalent positions |
633 | 651 | 678 | 654 | 677 | |||
Ålandsbanken follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority and hereby publishes its Interim Report for the period January – September 2012 enclosed to this stock exchange release. Ålandsbanken’s Interim Report for the period January – September 2012 is attached to this release in pdf format and is also available on the company’s web site at www.alandsbanken.fi.
Mariehamn, October 29, 2012
THE BOARD OF DIRECTORS
For more information please contact:
Managing Director, Peter Wiklöf +358 204 291255
