Bank of Åland Plc
Interim Report
October 24, 2025 9.00 EET
Interim Report for the period January - September 2024
Results for the first nine months of the year exceed previous record levels
"We continued to perform strongly both during the quarter and the first nine months of the year. The operating profit is the highest ever recorded by the Bank of Åland for the January-September period.
"Net interest income decreased during the quarter in an expected manner due to falling market interest rates. Net commission income is 7 per cent higher than the corresponding quarter of the previous year on account of increased activity within client investments.
"Expenses are in line with plan and net impairment losses are negligible overall.
"During the previous 12 months, our volumes have grown within all areas. Lending is up 3 per cent to EUR 3,637 million, deposits are up 8 per cent to EUR 3,681 million and our customers' actively managed assets are up 7 percent to a new record level of EUR 11,448 million.
"We see good prospects to continue our growth journey in the upcoming year."
Peter Wiklöf, Managing Director and Chief Executive
January-September 2025 compared to January-September 2024
- Net operating profit increased by 2 per cent and amounted to EUR 51.0 M (49.8).
- Core income in the form of net interest income, net commission income and IT income decreased by 1 per cent to EUR 159.1 M (161.1).
- Other income increased to EUR 4.8 M (1.1).
- Total expenses increased by 2 per cent to EUR 112.3 M (110.0).
- Net impairment losses on financial assets (including recoveries) totalled EUR 0.6 M (2.5), equivalent to a loan loss level of 0.02 per cent (0.08).
- Return on equity after taxes (ROE) was unchanged and amounted to 18.4 per cent (18.4).
- Earnings per share increased by 4 per cent to EUR 2.71 (2.60).
- The common equity Tier 1 capital ratio decreased to 12.7 per cent (14.5 on December 31, 2024).
- Unchanged future outlook: The Bank of Åland expects its return on equity after taxes (ROE) to continue to exceed its long-term financial target of 15 per cent during 2025.
The third quarter of 2025 compared to third quarter of 2024
- Net operating profit decreased by 5 per cent and amounted to EUR 16.3 M (17.3).
- Core income in the form of net interest income, net commission income and IT income decreased by 3 per cent to EUR 51.1 M (52.7).
- Other income increased to EUR 0.8 M (0.4).
- Total expenses increased by 2 per cent to EUR 35.8 M (35.1).
- Net impairment losses on financial assets (including recoveries) amounted to a recovery of EUR 0.1 (loss of 0.8), equivalent to a loan loss level of -0.00 per cent (0.08).
- Return on equity after taxes (ROE) decreased to 17.1 per cent (19.0).
- Earnings per share decreased by 5 per cent to EUR 0.85 (0.89).
Financial summary
| Group | Q3 2025 | Q2 2025 | % | Q3 2024 | % | Jan-Sep 2025 | Jan-Sep 2024 | % |
| EUR M | ||||||||
| Income | ||||||||
| Net interest income | 23.6 | 24.1 | -2 | 26.2 | -10 | 71.5 | 78.9 | -9 |
| Net commission income | 20.1 | 21.2 | -5 | 18.9 | 7 | 62.7 | 56.5 | 11 |
| IT income | 7.4 | 8.9 | -16 | 7.6 | -2 | 24.9 | 25.6 | -3 |
| Other income | 0.8 | 1.8 | -53 | 0.4 | 4.8 | 1.1 | ||
| Total income | 52.0 | 55.9 | -7 | 53.1 | -2 | 163.9 | 162.2 | 1 |
| Staff costs | -22.5 | -24.8 | -9 | -21.3 | 5 | -70.6 | -65.7 | 7 |
| Other expenses | -10.3 | -11.1 | -7 | -10.8 | -4 | -32.7 | -34.8 | -6 |
| Depreciation/amortisation | -3.0 | -3.0 | -1 | -3.0 | -1 | -9.0 | -9.5 | -6 |
| Total expenses | -35.8 | -38.8 | -8 | -35.1 | 2 | -112.3 | -110.0 | 2 |
| Profit before impairment losses | 16.2 | 17.1 | -5 | 18.0 | -10 | 51.6 | 52.2 | -1 |
| Impairment losses on financial assets, net | 0.1 | -0.8 | -0.8 | -0.6 | -2.5 | -75 | ||
| Net operating profit | 16.3 | 16.3 | 0 | 17.3 | -5 | 51.0 | 49.8 | 2 |
| Income taxes | -3.3 | -2.4 | 36 | -3.5 | -8 | -9.4 | -9.9 | -5 |
| Profit for the period | 13.1 | 13.9 | -6 | 13.7 | -5 | 41.6 | 39.9 | 4 |
| Volume | ||||||||
| Lending to the public | 3,637 | 3,594 | 1 | 3,514 | 3 | |||
| Deposits from the public | 3,681 | 3,578 | 3 | 3,396 | 8 | |||
| Actively managed assets | 11,448 | 11,057 | 4 | 10,654 | 7 | |||
| Managed mortage loans | 3,448 | 3,335 | 3 | 3,060 | 13 | |||
| Equity capital | 339 | 326 | 4 | 325 | 4 | |||
| Balance sheet total | 5,003 | 4,903 | 2 | 4,789 | 4 | |||
| Risk exposure amount | 1,835 | 1,799 | 2 | 1,693 | 8 |
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 Interim Report for the period January - September 2025, which is enclosed with this stock exchange release.
The Bank's Interim Report for the period January - September 2025 is attached to this release in PDF format and is also available on the company's web site at
https://assets.alandsbanken.com/pdf/result/en_resultat_jan-sep_25.pdf
Mariehamn, October 24, 2025
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
