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Bank of Åland Plc
Half-Year Financial Report
July 19, 2024 9:00 EET

Half-Year Financial Report for the period January - June 2024

“We had a strong first half in terms of earnings, with a net operating profit of EUR 32.5 million (22.5) and with a return on equity after taxes of 18.2 per cent (12.8).

“The investment money we manage for our customers reached a new record level of more than EUR 10.3 billion.

“During the quarter, we completed the third and final migration (SEK 3 billion) of Swedish mortgages from our balance sheet to our partly owned mortgage company Borgo. We thus have a very strong capital and liquidity situation, which means that we are ready for future
growth as the demand for loans now hopefully starts to pick up.”

Peter Wiklöf, Managing Director and Chief Executive

January - June 2024 compared to January - June 2023

• Net operating profit increased by 45 per cent to EUR 32.5 M (22.5).
  
  

• Core income in the form of net interest income, net commission income and IT income increased by 15 per cent to EUR 108.4 M (94.3).
  
  

• Other income decreased by 33 per cent to EUR 0.7 M (1.1).
  
  

• Total expenses increased by 5 per cent to EUR 74.9 M (71.6).
  
  

• Net impairment losses on financial assets (including recoveries) totalled EUR 1.7 M (1.3), equivalent to a loan loss level of 0.08 per cent (0.06).
  
  

• Return on equity after taxes (ROE) increased to 18.2 per cent (12.8).
  
  

• Earnings per share increased by 49 per cent to EUR 1.71 (1.15).
  
  

• The common equity Tier 1 capital ratio increased to 14.0 per cent (13.7 on December 31, 2023).
  
  

• Unchanged future outlook: The Bank of Åland expects its net operating profit in 2024 to be about the same as in 2023.

The second quarter of 2024 compared to the second quarter of 2023

• Net operating profit increased by 10 per cent to EUR 15.6 M (14.2).
  
  

• Core income in the form of net interest income, net commission income and IT income increased by 11 per cent to EUR 55.4 M (50.1).
  
  

• Other income decreased to EUR −0.1 M (0.0).
  
  

• Total expenses increased by 10 per cent to EUR 38.5 M (34.9).
  
  

• Net impairment losses on financial assets (including recoveries) totalled EUR 1.2 M (1.0), equivalent to a loan loss level of 0.11 per cent (0.09).
  
  

• Return on equity after taxes (ROE) increased to 18.3 per cent (17.0).
  
  

• Earnings per share increased by 11 per cent to EUR 0.82 (0.74).

Financial summary