Ålandsbanken (ALBAV) Q2 2024 earnings summary

Executive summary

• Net operating profit for H1 2024 rose 45% year-over-year to EUR 32.5M, with ROE after taxes at 18.2% (12.8%).

• Actively managed customer assets reached a record EUR 10.3B.

• Final migration of SEK 3B Swedish mortgages to Borgo completed, strengthening capital and liquidity.

• Earnings per share increased 49% to EUR 1.71.

Financial highlights

• H1 2024 core income (net interest, commission, IT) up 15% to EUR 108.4M; total income up 14% to EUR 109.1M.

• Net interest income up 20% to EUR 52.7M; net commission income up 3% to EUR 37.7M; IT income up 31% to EUR 18.1M.

• Total expenses increased 5% to EUR 74.9M, mainly due to higher staff and IT costs.

• Net impairment losses on financial assets at EUR 1.7M (loan loss level 0.08%).

• Q2 2024 net operating profit up 10% year-over-year to EUR 15.6M; ROE after taxes at 18.3%.

Outlook and guidance

• The bank expects 2024 net operating profit to be about the same as in 2023.

• Uncertainty remains due to macroeconomic and market conditions.