Bank of Åland Plc: Half-Year Financial Report for the period January - June 2017Mariehamn, 2017-07-20 08:00 CEST --
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
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