Bank of Åland Plc
Interim Report
April 28, 2026 9.00 EEST
Interim Report for the period January - March 2026
Stable development in a more uncertain operating environment
"In the first quarter, the Bank of Åland delivered good results in a world marked by rising geopolitical turbulence and increasing uncertainty. Operating profit amounted to EUR 17.2 million (18.3) with a return on equity of 17.7 per cent (19.5), continuing to be above our long-term financial target and higher in both respects compared to the fourth quarter of 2025.
"During the quarter, our core income increased, with higher commission income within investment operations helping offset lower net interest income. Cost trends were overall according to plan and credit quality remained good.
"Developments in the capital markets was more volatile than for the comparable period during the previous year, which had a negative effect on the value of customer investment portfolios. Despite this volatility, we see a continued net inflow for our investment products.
"Our investment fund Ålandsbanken Global Aktie was awarded a fund mandate in the world's largest fund procurement process within the Swedish premium pension system.
"Within IT operations, Crosskey signed an agreement with Handelsbanken regarding its remaining business in Finland, which further strengthens our position as a provider of key banking solutions.
"The Bank of Åland continues its long-term work in close contact with our customers, and we are well-equipped to do so independent of the uncertain global situation."
Peter Wiklöf, Managing Director and Chief Executive
January-March 2026 compared to January - March 2025
- Net operating profit decreased by 6 per cent and amounted to EUR 17.2 M (18.3).
- Core income in the form of net interest income, net commission income and IT income increased by 1 per cent to EUR 54.1 M (53.8).
- Other income increased by 25 per cent to EUR 2.7 M (2.2).
- Total expenses increased by 4 per cent to EUR 39.4 M (37.7).
- Net impairment losses on financial assets (including recoveries) totalled EUR 0.3 M (recovery of 0.1), equivalent to a loan loss level of 0.04 per cent (-0.01).
- Return on equity after taxes (ROE) decreased to 17.7 per cent (19.5).
- Earnings per share decreased by 4 per cent to EUR 0.91 (0.95).
- The common equity Tier 1 capital ratio increased to 12.9 per cent (12.7 on December 31, 2025).
- 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 2026.
Financial Summary
| Group | Q1 2026 | Q4 2025 | , | Q1 2025 | , |
| EUR M | |||||
| Income | |||||
| Net interest income | 23.3 | 23.7 | -2 | 23.8 | -2 |
| Net commission income | 22.5 | 23.0 | -2 | 21.4 | 5 |
| IT income | 8.3 | 8.9 | -7 | 8.6 | -3 |
| Other income | 2.7 | 0.8 | 2.2 | 25 | |
| Total income | 56.9 | 56.4 | 1 | 56.0 | 2 |
| Staff costs | -24.7 | -25.1 | -2 | -23.4 | 6 |
| Other expenses | -11.4 | -11.2 | 2 | -11.3 | 0 |
| Depreciation/amortisation | -3.3 | -3.1 | 7 | -3.0 | 11 |
| Total expenses | -39.4 | -39.4 | -0 | -37.7 | 4 |
| Profit before impairment losses | 17.5 | 17.0 | 3 | 18.3 | -4 |
| Impairment losses on financial assets, net | -0.3 | -0.8 | -61 | 0.1 | |
| Net operating profit | 17.2 | 16.2 | 6 | 18.3 | -6 |
| Income taxes | -3.1 | -3.3 | -5 | -3.7 | -17 |
| Profit for the period | 14.1 | 12.9 | 9 | 14.6 | -4 |
| Volume | |||||
| Lending to the public | 3,791 | 3,762 | 1 | 3,552 | 7 |
| Deposits from the public | 3,653 | 3,760 | -3 | 3,573 | 2 |
| Actively managed assets | 11,799 | 12,119 | -3 | 10,662 | 11 |
| Managed mortage loans | 3,621 | 3,593 | 1 | 3,335 | 9 |
| Equity capital | 327 | 386 | -15 | 315 | 4 |
| Balance sheet total | 5,167 | 5,173 | -0 | 5,011 | 3 |
| Risk exposure amount | 1,884 | 1,888 | -0 | 1,766 | 7 |
The Bank of Åland (Ålandsbanken) follows the disclosure procedure stipulated in "Disclosure obligation of the issuer (6/2016)", published by the Finnish Financial Supervisory Authority and hereby publishes its Interim Report for the period January - March 2026, which is enclosed with this stock exchange release. The Bank's Interim Report for the period January - March 2026 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-mar_26.pdf
Mariehamn, April 28, 2026
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
