Bank of Åland Plc: Year-end Report for the period January–December 2025

Bank of Åland Plc
Financial Statement Release
February 4, 2026, 9.00 EET

Year-end Report for the period January–December 2025

Record results and solid growth
“The year 2025 was the most successful year financially in the history of the Bank of Åland. Income amounted to EUR 67.2 million (65.0), while we also maintained solid growth. 

“During the year, our deposits grew by 7 per cent to EUR 3,760 million and our lending by 5 per cent to EUR 3,762 million. Our actively managed customer assets rose by 14 per cent, for the first time exceeding the EUR 12 billion mark and at the end of the year amounted to EUR 12,119 billion. During the year, we had a strong net flow of new customer assets, EUR 708 million.

“In terms of income, our net interest income decreased to EUR 95.2 million (104.1) as was expected due to falling market interest rates. What was surprising on the positive side was that we succeeded in raising our net commission income by 12 percent to EUR 85.7 million (76.4), which compensated for the decreasing net interest income. The net commission income benefited from increased activity in the stock markets. Expenses developed in line with our planning.

“The Bank of Åland has a strong liquidity and capital position, and we also continue to see very good numbers in our customer satisfaction surveys. Altogether, these create strong conditions for our motivated employees to create continued growth.

“For 2025, we generated a return on equity of 17.8 per cent. Our ambition for 2026 as well is to create a return on equity that exceeds our long-term financial goals of 15 per cent.”

Peter Wiklöf, Managing Director and Chief Executive

January-December 2025 compared to January−December 2024

• Net operating profit increased by 3 per cent and amounted to EUR 67.2 M (65.0).
• Core income consisting of net interest income, net commission income and IT income remained at an unchanged level EUR 214.7 M (215.6).
• Other income increased to EUR 5.6 M (0.7).
• Total expenses increased by 3 per cent to EUR 151.7 M (147.3).
• Net impairment losses on financial assets (including recoveries) totalled EUR 1.4 M (4.0), equivalent to a loan loss level of 0.04 per cent (0.10).
• Return on equity after taxes (ROE) decreased to 17.8 per cent (17.9).
• Earnings per share increased by 4 per cent to EUR 3.55 (3.41).
• The common equity Tier 1 capital ratio decreased to 12.7 per cent (14.5 on December 31, 2024).
• Dividend: The Board of Directors will propose a dividend of EUR 2.75 (2.75) per share for the 2025 financial year. Furthermore, the Board of Directors intends to propose a semi-annual dividend from financial year 2026 onwards, corresponding to a maximum of 50 per cent of the profit for the first six months of the financial year.
• 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 fourth quarter of 2025 compared to the fourth quarter 2024

• Net operating profit increased by 6 per cent and amounted to EUR 16.2 M (15.3).
• Core income in the form of net interest income, net commission income and IT income increased by 2 per cent to EUR 55.6 M (54.5).
• Other income increased to EUR 0.8 M (−0.4).
• Total expenses increased by 5 per cent to EUR 39.4 M (37.3).
• Net impairment losses on financial assets (including recoveries) decreased to EUR 0.8 M (1.5), equivalent to a loan loss level of 0.08 per cent (0.18).
• Return on equity after taxes (ROE) decreased to 16.2 per cent (16.4).
• Earnings per share increased by 5 per cent to EUR 0.84 (0.80).
  
  

Financial overview

Group	Q4 2025	Q3 2025	%	Q4 2024	%	Jan-Dec 2025	Jan-Dec 2024	%
EUR M
Income
Net interest income	23.7	23.6	0	25.2	-6	95.2	104.1	-9
Net commission income	23.0	20.1	14	19.9	16	85.7	76.4	12
IT income	8.9	7.4	20	9.4	-5	33.8	35.1	-4
Other income	0.8	0.8	-5	-0.4		5.6	0.7
Total income	56.4	52.0	9	54.1	4	220.3	216.4	2
Staff costs	-25.1	-22.5	12	-22.1	13	-95.7	-87.9	9
Other expenses	-11.2	-10.3	8	-12.4	-10	-43.9	-47.1	-7
Depreciation/amortisation	-3.1	-3.0	3	-2.8	9	-12.0	-12.3	-2
Total expenses	-39.4	-35.8	10	-37.3	5	-151.7	-147.3	3
Profit before impairment losses	17.0	16.2	5	16.8	1	68.6	69.0	-1
Impairment losses on financial assets, net	-0.8	0.1		-1.5	-46	-1.4	-4.0	-64
Net operating profit	16.2	16.3	-1	15.3	6	67.2	65.0	3
Income taxes	-3.3	-3.3	0	-2.9	12	-12.6	-12.8	-1
Profit for the period	12.9	13.1	-1	12.4	5	54.6	52.3	4
Volume
Lending to the public	3,762	3,637	3	3,576	5
Deposits from the public	3,760	3,681	2	3,521	7
Actively managed assets	12,119	11,448	6	10,616	14
Managed mortage loans	3,593	3,448	4	3,080	17
Equity capital	386	339	14	336	15
Balance sheet total	5,173	5,003	3	4,925	5
Risk exposure amount	1,888	1,835	3	1,643	15

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 Year-end Report for the period January – december 2025, which is enclosed with this stock exchange release. The Bank`s Year-end Report for the period January – december 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-dec_25.pdf

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-dec_25