Bank of Åland Plc
Stock exchange release
October 19, 2026, 12.00 EEST
Bank of Åland and Borgo to gradually phase out their collaboration on service provision
Bank of Åland Plc and Borgo AB signed an agreement on 19 October 2026 to gradually phase out, ahead of schedule, their collaboration on platform solutions and service provision, which was established in connection with the formation of Borgo in 2021.
The background to the agreement is the platform capacity added through Borgo's acquisition of Hypoteket. The acquisition, which was announced in August 2025 and subsequently received the required regulatory approvals, enables Borgo to gradually assume responsibility for the services currently provided by Bank of Åland.
Since the collaboration began, Bank of Åland has played a central role in the development of Borgo by providing platform solutions, mortgage administration and specialist expertise in mortgage operations. The collaboration has contributed to establishing Borgo as a significant player in the Swedish mortgage market.
The agreed phase-out of the services provided by Bank of Åland will begin during the fourth quarter of 2026 and continue gradually throughout 2027. The parties intend to carry out the transition in an orderly and controlled manner, without affecting customers or distributors. The transition will include the migration of data, processes and operational functions from Bank of Åland's platforms to Borgo's future solution.
The agreement to phase out the services provided by Bank of Åland will result in a gradual reduction in the volumes and services currently handled by the Bank as part of the collaboration.
"We would like to express our sincere thanks to Bank of Åland for its important contribution during Borgo's development phase. The collaboration has been instrumental in establishing Borgo as a significant player in the Swedish mortgage market. With the capacity we have now built up, we are taking the next step in our development towards a more integrated operating model."
Pehr Olofsson, CEO of Borgo
"When we established Borgo together with our partners, our ambition was to create a new and modern player in the Swedish mortgage market. We are proud of Borgo's journey and of the role Bank of Åland has played in the company's development. Borgo has now built up its own capacity to take the next step in its development. We thank Borgo for our successful collaboration and look forward to continuing our relationship as a distributor and shareholder."
Peter Wiklöf, Managing Director and Chief Executive of Bank of Åland
Following the change, Bank of Åland will remain a distributor of mortgages for Borgo in the Swedish market. Bank of Åland will also remain a shareholder in Borgo.
The agreement is expected to result in a positive one-off effect on operating profit of approximately EUR 8 million, which will be recognised in the fourth quarter of 2026. In the longer term, the agreement means that the income Bank of Åland receives from its platform collaboration with Borgo will gradually cease as the provision of these services is phased out during 2026 and 2027. This represents the main long-term impact of the change on Bank of Åland.
The agreed change is not expected to affect Bank of Åland's customers or its mortgage offering in the Swedish market.
Further information
Peter Wiklöf
Managing Director and Chief Executive, Bank of Åland Plc
Tel. +358 40 512 7505
