Ålandsbanken (ALBAV) Q4 2025 earnings summary

Executive summary

• Achieved record net operating profit of EUR 67.2M for 2025, up 3% year-over-year, marking the most successful year in the bank's history.

• Deposits grew by 7% to EUR 3,760M, lending increased by 5% to EUR 3,762M, and actively managed customer assets rose 14% to EUR 12,119M.

• Net interest income declined 9% to EUR 95.2M due to lower market rates, but net commission income rose 12% to EUR 85.7M, offsetting the decline.

• Return on equity after taxes (ROE) was 17.8%, exceeding the long-term target of 15%.

• Board proposes a dividend of EUR 2.75 per share and plans to introduce semi-annual dividends from 2026.

Financial highlights

• Core income (net interest, commission, IT) was stable at EUR 214.7M.

• Other income increased to EUR 5.6M from EUR 0.7M, driven by revaluation gains and one-time items.

• Total expenses rose 3% to EUR 151.7M, mainly due to higher staff costs.

• Net impairment losses on financial assets fell to EUR 1.4M, with a loan loss level of 0.04%.

• Earnings per share increased 4% to EUR 3.55.

Outlook and guidance

• Expects ROE to continue exceeding the 15% long-term target in 2026.

• Outlook remains positive but notes uncertainty due to geopolitical risks and market volatility.