Ålandsbanken - Financial Statement Release

Year-end report for the period January - December 2010

Mariehamn, 2011-02-21 08:00 CET (GLOBE NEWSWIRE) -- Bank of Åland Plc    STOCK
EXCHANGE RELEASE   21.2.2011 09.00 hrs 

Year-end report for the period January - December 2010

The report period in brief

“In terms of earnings, it was a weak year. The reasons were the build-up of our
Swedish operations, a single loan impairment loss and very low interest rates
that squeezed our net interest income. Despite these circumstances, our Finnish
business showed better operational income in 2010 than in 2009. 

“During 2010, the Bank of Åland was very successful in attracting new and
existing customers to our financial investment services, which is clearly
visible in our volume growth. Customer loyalty is the highest in Finland and,
combined with good results in our investment advisory services, strongly
contributed to this growth. 

“In Sweden, since last autumn we have seen clearly higher customer activity and
expect a clearly lower loss level in 2011. Overall this means that we expect
significantly better earnings in 2011.” 


                                                 Peter Wiklöf, Managing Director

  -- Consolidated net operating profit decreased to 1.8 million euros
     (January-December 2009: EUR 7.4 M, excluding negative goodwill)
  -- The income of the Group's operations in Finland totalled EUR 16.4 M, which
     was
     6 per cent better than the previous year (15.4, excluding negative
     goodwill)
  -- Net interest income fell by 6 per cent to EUR 36.8 M (39.1)
  -- Commission income increased by 35 per cent to EUR 43.7 M (32.5)
  -- Total income increased by 14 per cent to EUR 99.7 M (87.2)
  -- Expenses rose by 19 per cent to EUR 92.2 M (77.2)
  -- Impairment losses on loans amounted to EUR 5.9 M (2.9)
  -- Lending volume increased by 1 per cent to EUR 2,573 M (December 2009:
     2,546)
  -- Deposits increased by 8 per cent to EUR 2,600 M (December 2009: 2,411)
  -- Assets under management increased by 38 per cent to EUR 4,276 M (December
     2009: 3,101)
  -- Fund assets under management increased by 25 per cent to EUR 998 M (801)
  -- The expense/income ratio amounted to 98 (72) per cent
  -- The total capital ratio in compliance with Basel 2 amounted to 12.0 per
     cent (12.3)
  -- The Board of Directors proposes a dividend of EUR 0.00 (0.70) per share
  -- Taking into consideration that we expect operations in Sweden to have a
     clearly lower loss level during 2011 and that the    Group's earnings in
     2010 were pulled down by a sizeable impairment loss on a loan, the Group's
     earnings in 2011 are expected to be significantly better than in 2010

Bank of Åland Group             Full    Full    Q4     Q3     Q2     Q1     Q4  
                                year    year                                    
EUR M                           2010    2009    2010   2010   2010   2010   2009
Income statement in brief                                                       
Net interest income              36.8    39.1    9.0    9.4    9.3    9.1    9.7
Other income                     62.9    48.1   18.7   13.7   16.1   14.3   13.4
Total income                     99.7    87.2   27.7   23.1   25.4   23.5   23.2
Total expenses                  -92.2   -77.2  -25.7  -21.8  -23.4  -21.3  -23.0
Net operating profit before       7.7    33.4    2.0    1.3    2.1    2.2    0.2
impairment losses                                                               
Impairment losses                -5.9    -2.9   -0.4   -5.4    0.0   -0.1   -0.6
Net operating profit/loss         1.8    30.5    1.6   -4.1    2.1    2.2   -0.4
Selected balance sheet items                                                    
Total lending volume            2,573   2,546  2,573  2,547  2,549  2,549  2,546
Total deposits from the         2,600   2,411  2,600  2,459  2,492  2,408  2,411
public                                                                          
Equity capital                    155     162    155    156    160    166    162
Balance sheet total             3,475   3,379  3,475  3,492  3,617  3,572  3,379
Financial ratios                                                                
Earnings per share before       -0.20    2.27   0.02  -0.39   0.11   0.06  -0.08
dilution, EUR                                                                   
Earnings per share after        -0.20    2.27   0.02  -0.39   0.11   0.06  -0.08
dilution, EUR                                                                   
Equity capital per share, EUR   13.39   13.97  13.39  13.35  13.72  14.32  13.97
Return on equity after taxes,    -1.0    17.8    1.0  -11.2    4.0    1.9   -1.7
%                                                                               
Return on total assets, %         0.0    12.3   12.0   12.5   12.4   12.6   12.3
(ROA)                                                                           
Equity/assets ratio, %            4.5     4.8    4.5    4.5    4.4    4.7    4.8
Expense/income ratio                                                            
Including negative goodwill                                                     
Including loan losses            0.92    0.70   0.92   0.94   0.92   0.91   0.99
Excluding loan losses            0.98    0.72   0.94   1.18   0.92   0.91   1.02
Total capital ratio, %           12.0    12.3   12.0   12.5   12.4   12.6   12.3
Core capital ratio, %             7.3     7.9    7.3    7.6    7.6    7.6    7.9


Mariehamn, February 18, 2011

THE BOARD OF DIRECTORS








         For more information please contact:
         Peter Wiklöf, Managing Director, telephone +358 (0)204 291 225
         Tom Westerén, Communications and Marketing Director, telephone +358
(0)40 519 0885

Attachments:

year-end-report_2010.pdf