Bank of Åland Plc: Interim Report for the period January - September 2025

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

Attachment

• alandsbanken_en_resultat_jan-sep_25