Mariehamn, 2011-08-01 08:00 CEST (GLOBE NEWSWIRE) -- Bank of Åland Plc STOCK EXCHANGE RELEASE 1.8.2011 09.00 hrs
Interim Report for the period January – June 2011
"During the first half of 2011, we improved our profit before loan losses and nonrecurring expenses by 24 per cent, adjusted for exchange rate effects, with continued major success in Private Banking, both in Finland and Sweden. Given our new issue of equity capital during the autumn plus permission to issue covered bonds, the financial prerequisites are in place to continue expanding our operations in Finland and Sweden, in keeping with our strategy. Return on equity is approaching 15 per cent in our Finnish operations. The restructuring of our Swedish operations now being carried out under new management - including closure of the institutional equities trading unit and a transition to branch status - will make a faster improvement in earnings possible." Peter Wiklöf, Managing Director
January−June 2011 compared to January−June 2010
- Net operating profit excluding restructuring expenses increased by 20 per cent, adjusted for exchange rate effects, to EUR 4.3 M (3.5)
- Profit for the period attributable to shareholders decreased to EUR -1.2 M (2.0), mainly due to EUR 2.9 M in restructuring expenses in Sweden
- Earnings per share totalled EUR -0.10 (0.17)
- Net interest income increased by 6 per cent to EUR 19.6 M (18.4)
- Net commission income increased by 20 percent to EUR 20.8 M (17.3)
- Based on our assessment of external factors and taking into consideration that operations in Sweden will have a smaller negative impact on earnings than last year, the Group’s profit before loan losses is expected to be better in 2011 than in 2010. Loan losses are expected to be low during 2011. Taken together, this means that the Group’s after-tax profit attributable to shareholders in 2011 will be significantly better than in 2010.
The second quarter of 2011 compared to the first quarter of 2011
- Net operating profit excluding restructuring expenses was unchanged at EUR 2.1 M
- Profit for the period attributable to shareholders decreased to EUR -2.2 M (1.0), mainly due to EUR 2.9 M in restructuring expenses in Sweden
- Earnings per share totalled EUR -0.19 (0.09)
- Net interest income increased by 6 per cent to EUR 10.1 M (9.5)
- Net commission income increased by 5 percent to EUR 10.7 M (10.1)
- Net loan losses totalled EUR 0.3 M (0.0), equivalent to a loan loss level of 0.04 percent
- The Tier 1 capital ratio was 7.7 (December 31, 2011: 7.3) per cent
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Financial summary |
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| Bank of Åland Group | Q2 2011 | Q1 2011 | % | Q1 2010 | % | Jan–Jun 2011 | Jan–Jun 2010 | % |
| EUR M | ||||||||
| Income | ||||||||
| Net interest income | 10.1 | 9.5 | 6 | 9.3 | 9 | 19.6 | 18.4 | 6 |
| Net commission income | 10.7 | 10.1 | 5 | 9.9 | 8 | 20.8 | 17.3 | 20 |
| Other income | 5.9 | 6.6 | -10 | 6.3 | -5 | 12.5 | 13.3 | -6 |
| Total income | 26.7 | 26.1 | 2 | 25.4 | 5 | 52.8 | 49.0 | 8 |
| Staff costs | -16.5 | -13.9 | 19 | -13.6 | 22 | -30.4 | -26.4 | 15 |
| Other expenses | -10.6 | -10.1 | 5 | -9.8 | 9 | -20.8 | -18.2 | 14 |
| Total expenses | -27.2 | -24.0 | 13 | -23.4 | 16 | -51.2 | -44.7 | 15 |
| Profit before loan losses etc. | -0.5 | 2.1 | -123 | 2.1 | -124 | 1.6 | 4.3 | -63 |
| Impairment losses on loans and other commitments | -0.3 | 0.0 | 0.0 | -0.3 | -0.1 | 144 | ||
| Operating income | -0.8 | 2.1 | -136 | 2.0 | -138 | 1.4 | 4.2 | -68 |
| Income taxes | -0.6 | -1.1 | -48 | -0.4 | 33 | -1.6 | -1.8 | -9 |
| Profit for the report period | -1.3 | 1.0 | -227 | 1.6 | -181 | -0.3 | 2.4 | -112 |
| Attributable to: | ||||||||
| Non-controlling interests | 0.9 | 0.0 | 0.4 | 103 | 0.9 | 0.5 | 92 | |
| Shareholders in Bank of Åland Plc | -2.2 | 1.0 | 1.2 | -1.2 | 2.0 | -160 | ||
| VOLUME | ||||||||
| Lending to the public | 2,567 | 2,550 | 1 | 2,549 | 1 | |||
| Deposits from the public | 2,492 | 2,521 | -1 | 2,492 | 0 | |||
| Managed assets | 4,019 | 4,347 | -8 | 3,507 | 15 | |||
| Equity capital | 155 | 155 | 0 | 160 | -3 | |||
| Balance sheet total | 3,403 | 3,398 | 0 | 3,617 | -6 | |||
| Risk-weighted assets | 1,591 | 1,645 | -3 | 1,657 | -4 | |||
| FINANCIAL RATIOS | ||||||||
| Return on equity after taxes, % (ROE) 2 | -3.4 | 2.7 | 4.0 | -1.5 | 1.6 | |||
| Expenses/income ratio, % | 103 | 92 | 92 | 97 | 91 | |||
| Loan loss level, % | 0.04 | 0.00 | 0.01 | 0.02 | 0.01 | |||
| Gross non-performing assets, % | 1.04 | 0.89 | 0.70 | 1.04 | 0.70 | |||
| Level of provisions for doubtful receivables, % | 75 | 72 | 78 | 75 | 78 | |||
| Core funding ratio (Lending/deposits), % | 103 | 101 | 102 | 103 | 102 | |||
| Equity/assets ratio, % | 4.6 | 4.6 | 4.4 | 4.6 | 4.4 | |||
| Tier 1 capital ratio, % | 7.7 | 7.4 | 7.6 | 7.7 | 7.6 | |||
| Earnings per share before dilution, % | -0.19 | 0.09 | 0.11 | -0.10 | 0.17 | |||
| Equity capital per share, EUR | 13.15 | 13.41 | 13.72 | 13.15 | 13.72 | |||
| Market price per Series A share, EUR | 25.98 | 25.50 | 27.95 | 25.98 | 27.95 | |||
| Market price per Series B share, EUR | 16.50 | 17.00 | 20.85 | 16.50 | 20.85 | |||
| Working hours re-calculated to full-time equivalent positions | 699 | 687 | 690 | 693 | 701 | |||
Ålandsbanken follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority and hereby publishes its Interim Report for January-June 2011 enclosed to this stock exchange release. Ålandsbanken’s Interim Report for January-June 2011 is attached to this release in pdf format and is also available on the company’s web site at www.alandsbanken.fi.
Mariehamn, July 29, 2011
THE BOARD OF DIRECTORS
For more information please contact:
Managing Director, Peter Wiklöf +358 204 291255
Communications and Marketing Director, Tom Westerén +358 40 519 0885
