Ålandsbanken (ALBAV) Investor presentation summary

Company overview and strategy

• Founded in 1919, operates in Åland Islands, Finland, and Sweden, focusing on high net worth and affluent individuals.

• Recognized for customer loyalty and personalized service, with top rankings in private banking in Finland from 2021–2024.

• Offers a full product range, with private and premium banking as core services; selective lending to high-quality clients.

• Strategic partnerships with fintechs and other banks, including Crosskey, Borgo, and Doconomy, supporting innovation and sustainability.

• Vision centers on delivering large-bank services with small-bank attention and strong ethical standards.

Financial performance and targets

• Net operating profit for H1 2026 was EUR 29.8M, down from EUR 34.7M in H1 2025; ROE at 15.2% (vs. 19.2%).

• Actively managed assets reached a record EUR 12.4B, with solid net inflows and successful IT launches.

• Long-term targets: ROE above 15%, CET1 ratio 1.75–3.0 pp above FIN-FSA minimum, payout ratio ≥60%.

• Dividend of EUR 2.75/share for 2025 and EUR 0.75/share for H1 2026 paid.

• Expense/income ratio at 73% in H1 2026; loan loss level at -0.01%.

Capital, liquidity, and funding

• CET1 capital ratio at 12.8% (requirement 9.1%), with a 3.8% buffer; total capital ratio at 16.2%.

• Strong capital structure, no current MREL obligations, and leverage ratio at 3.0%.

• Loan/deposit ratio at 105%, liquidity reserve at 22% of assets, LCR at 155%, NSFR at 118%.

• Covered bonds are the main long-term funding source, with Aaa rating from Moody’s.

• Funding profile: 73% deposits, 12% covered bonds, 7% equity capital.