Direct translation of the text in the image using software:
Ålandsbanken increased its income, but profit fell in the third quarter. The full-year outlook remains unchanged. The nine-month result is the best in the bank’s history.
Total income was EUR 53.1 million (51.2). Net interest income was EUR 26.2 million (27.9) and commission income was EUR 18.9 million (17.8).
Operating expenses rose to EUR 35.1 million (31.5). Operating profit before credit losses was EUR 18 million (19.8). Operating profit was EUR 17.3 million (19.1) and net profit was EUR 13.7 million (15.4).
Ålandsbanken is just thriving. An absolute favorite in the banking world. It would be a pleasure to buy more of this, but not at these prices. It quite strongly stays at €30 per share as a strong support level. The only threats going forward are probably Wiklöf’s retirement, Borgo’s adjustments, and certainly a decrease in interest income.
Q1 report came out yesterday, still going its own way:
• Operating profit increased by 9 percent to EUR 18.3 million (16.9).
• Core income, consisting of net interest income, net commission income and IT income, increased by 2 percent to EUR 53.8 million (53.0).
• Other income increased to EUR 2.2 million (0.8).
• Expenses increased by 4 percent to EUR 37.7 million (36.4).
• Net impairment losses on financial assets (including reversals) amounted to net reversals of EUR 0.1 million (impairment 0.5), corresponding to a
−0.01 percent loan loss ratio (0.05).
• Return on equity after tax (ROE) increased to 19.5 percent (18.3).
• Earnings per share increased by 7 percent to EUR 0.95 (0.89).
• Common Equity Tier 1 (CET1) ratio decreased to 12.7 percent (14.5 as of 31.12.2024).
• Unchanged outlook: Ålandsbanken expects return on equity to continue to exceed the long-term financial target of 15 percent in 2025
Unfortunately, ÅB is not covered by Inderes, because that decrease in the core capital ratio really caught my eye here. A long earnings report from such a company easily goes unread by an average Joe. Åland is yet to be conquered by Inderes.
Let’s see what happens to the Wind Power Fund? Unpleasant rumors are circulating in Kaisaniemi market. Stories and rumors say that, like in real estate funds, they wouldn’t pay out redemptions. Does anyone have better information?
I don’t know about rumors, but redemption restrictions seem to have been introduced:
“A portion of the fund’s assets is also invested in liquid investment instruments to maintain the fund’s good liquidity. Some of the fund’s redemption orders have been deferred starting from July 2025.”
How new is this matter, and what might these “liquid investment instruments” be…
I couldn’t read today’s news in KL in more detail, where Aki Pyysing talks about his investment in an “elite bank”. Apparently, it’s Ålandsbanken, however. And it’s good to invest here/there! I’ve also had ÅB in my long-term portfolio for almost three years now, and I don’t intend to sell. Just on Monday, I conveniently bought a bit more.
Net interest income (as expected) down, but overall operating profit up.
Second quarter 2025 compared to second quarter 2024:
Operating profit increased by 4 percent to EUR 16.3 million (15.6).
Core income, consisting of net interest income, net commission income, and IT income, decreased by 2 percent to EUR 54.1 million (55.4).
Other income increased to EUR 1.8 million (−0.1).
Expenses increased by 1 percent to EUR 38.8 million (38.5).
Impairment losses on financial assets (net, including reversals) amounted to EUR 0.8 million (1.2), corresponding to a loan loss level of 0.08 percent (0.11).
Return on equity after tax (ROE) increased to 19.1 percent (18.3).
Earnings per share increased by 10 percent to EUR 0.90 (0.82).
Was there more specific information about where the other operating income came from?
The AI was able to provide the following, but I couldn’t get a more detailed answer out of it:
According to Ålandsbanken’s half-year report, other operating income consisted of the following items 1:
Rental income: Income received from renting out properties owned by the bank.
Gains on sales: Gains received from the sale of assets owned by the bank, such as real estate or investments.
Other incidental income: These may include, for example, various service fees and other incidental income that does not belong to the bank’s core business.
I couldn’t find anything more specific (Google Translate Swedish->Finnish):
Other income, including net financial income, increased by EUR 1.9 million to EUR 1.8 million (-0.1).
The main explanation was the revaluation of financial assets and positive one-off effects related to associated companies.
Ålandsbanken continues its strong performance. Operating profit for Jan-Sep period is the best ever. After Nordea’s Q3, I guessed that ÅB would also deliver good results again. Luckily, I bought more.
The result was not particularly good, but worse than a year ago by almost all metrics. Of course, probably quite expected as interest rates are falling. A rather neutral result, and so is the share price reaction.
For a bank stock, a P/E of 12.5 has been somewhat high in recent years. However, I don’t really see any reason why Finnish bank stocks should be priced with particularly low multiples. This has certainly been done in recent history, but it has been due to the fear of credit losses. Most obviously, Ålandsbanken has not granted risky loans in recent years in nearly the same way as the Savings Bank Group (Säästöpankkiryhmä) in the 1980s. Not even close.
Results out: a slight increase in profit, the dividend remains at €2.75. But IF I’m interpreting this correctly, it’s going the same way as Nordea, i.e. switching to a twice-yearly dividend, so there will be an “extra” half this year
January–December 2025
• Operating profit increased by 3 per cent to EUR 67.2 million (65.0).
• Earnings per share increased by 4 per cent to EUR 3.55 (3.41).
• The Common Equity Tier 1 (CET1) capital ratio decreased to 12.7 per cent (14.5 as of Dec 31, 2024).
• Dividend: The Board of Directors will propose that a dividend of EUR 2.75 per share (2.75) be distributed for the 2025 financial year. In addition, the Board intends to propose that dividends be paid semi-annually starting from the 2026 financial year. The interim dividend will be based on a maximum of 50 per cent of the profit for the first six months of the financial year and will be paid after the publication of the half-year report. The remainder of the dividend will be paid after the Annual General Meeting.
I don’t quite get it. So, the 2025 dividend will be paid normally, probably in April, but you mean that on top of this, the 2026 dividend would also be paid this year, based on the 2026 half-year results sometime in late summer?
