2007-04-23 08:00:00 CEST

2007-04-23 08:00:00 CEST


REGULATED INFORMATION

English
Ålandsbanken - Quarterly report

Interim report for the period January - March 2007


Bank of Åland Plc    STOCK EXCHANGE RELEASE   23.04.2007 09.00 hrs              

Interim report for the period January - March 2007  

The report period in brief                                                      

-Consolidated net operating profit rose by 28 per cent to 8.1 million euros (Jan
− Mar 2006: EUR 6.4 M)                                                      

-The profit increase was attributable to rising net interest income, higher IT  
 income, improved commission income from mutual fund and asset management and 
 nonrecurring items 

-Net interest income increased by 13 per cent to EUR 9.2 M (8.1)                

-Commission income increased by 21 per cent to EUR 5.4 M (4.4)                  

-Expenses increased by 12 per cent to EUR 10.4 M (9.3)                          

-Loan losses were EUR 0.1 M (0.0)                                               

-Lending volume increased by 9 per cent to EUR 1,956 M (Mar 2006: 1,802)        

-Deposits increased by 3 per cent to EUR 1,628 M (Mar 2006: 1,583)              

-Mutual fund capital under management rose by 42 percent to EUR 395 M (278)     

-Return on equity after taxes (ROE) was 19.8 per cent (17.2)                    

-The expense/income ratio improved to 56 (59) per cent                          

-The total capital ratio in compliance with Basel 2 amounted to 13.5 per cent   

-Earnings per share after taxes amounted to EUR 0.50 (0.41)                     

EARNINGS AND PROFITABILITY                                                      

This Interim Report has been prepared in compliance with the International      
Financial Reporting Standards (IFRSs) approved by the European Union, as well   
with IAS 34, “Interim Financial Reporting”.                                     

Earnings summary                                                                
During the first three months of 2007, consolidated net operating profit rose by
28 per cent to EUR 8.1 M (6.4). The increase in profit was primarily           
attributable to a continued rise in net interest income, higher income from     
information technology (IT) operations, improved commission income from mutual  
fund and asset management and to nonrecurring items.                            

Income increased by 19 per cent to EUR 18.5 M (15.5), while expenses rose to EUR
10.4 M (9.3). Return on equity after taxes (ROE) increased to 19.8 (17.2) per   
cent, and earnings per share after taxes increased to EUR 0.50 (0.41).          

Net interest income                                                             
During the report period, net interest income improved by 13 per cent to EUR 9.2
M (8.1). The increase was due to higher deposit margins as well as higher       
lending volume. Lending margins continued to fall.                              

Other income                                                                    
Commission income rose by 21 per cent to EUR 5.4 M (4.4). This improvement was  
primarily due to higher mutual fund, asset management and securities            
commissions.                                                                    

Net income from securities trading for the Bank's own account was EUR 0.7 M     
(0.5). Net income from dealing in the foreign exchange market amounted to EUR   
0.3 M (0.3).                                                                    

Net income from financial assets available for sale was EUR 0.5 M (0.3). Net    
income from investment properties increased to EUR 0.1 M (0.0), which consisted 
of capital gains from divestment of properties.                                 

Other operating income increased to EUR 2.9 M (2.3) due to higher income from   
the sale and development of computer systems. The Group's total income rose by  
19 per cent to EUR 18.5 M (15.5).                                               

Expenses                                                                        
Staff costs increased by 12 per cent to EUR 6.0 M (5.3), most of which was due  
to efforts under way in the Group's IT operations. Higher fair value of assets  
in the Bank's pension fund, Ålandsbanken Abp:s Pensionsstiftelse, reduced staff 
costs by EUR 0.3 M (0.5).                                                       

Other administrative expenses (office, marketing, telecommunications and        
computer costs) totalled EUR 1.9 M (1.9). Production for own use totalled 0.1 M 
(0.1) and was related to expenses for computer software, which in accordance    
with IFRS must be capitalised. Depreciation/amortisation increased to EUR 1.3 M 
(1.0).                                                                          

Other operating expenses amounted to EUR 1.3 M (1.1). The largest increases in  
expenses were attributable to rents and property expenses. The Group's total    
expenses rose by 12 per cent to EUR 10.4 M (9.3).                               

Expense/income ratio                                                            
The expense/income ratio decreased during the report period to 56 per cent,     
compared to 59 per cent during the first quarter of 2006. During the full year  
2006, the expense/income ratio was 66 per cent.                                 

Impairment loss on loans and other commitments                                  
Loan losses amounted to EUR 0.1 M (0.0).                                        

Balance sheet total and off-balance sheet obligations                           
At the end of the report period, the Group's balance sheet total was EUR 2,277 M
(2,143). The increase in the balance sheet total was a consequence of higher    
lending volume and deposit volume. During the period, the Group issued bond     
loans in a nominal amount of EUR 46 M.                                          

Off-balance sheet obligations increased to EUR 183 M (158), as a consequence of 
higher obligations for guarantees and pledges, plus other obligations.          
                 
Personnel                                                                       
Hours worked in the Group, recalculated to full-time equivalent positions,      
totalled 435 (423) during the first quarter of 2007. This represented an        
increase of 12 positions, compared to the year-earlier period. Most of the      
increase came from new recruitments at Crosskey Banking Solutions Ab Ltd.       

Capital adequacy                                                                
For the first time, the Group is reporting capital adequacy in accordance with  
Pillar 1 in the Basel 2 regulations. Risk management under Pillar 2 will be     
reported in the Annual Report for 2007. According to Pillar 1 of Basel 2, the   
Group's total capital ratio at the end of March 2007 was 13.5 per cent. The     
capital requirement for credit risks is being calculated according to the       
standardised approach, and the capital requirement for operational risks is     
being calculated according to the basic indicator approach in Basel 2.          

Deposits                                                                        
Deposits from the public, including bonds and certificates of deposit issued    
increased during the 12 months to March 31, 2007 by 3 per cent to EUR 1,628 M   
(1,583). Deposit accounts increased by 7 per cent to EUR 1,291 M (1,211). Bonds 
and certificates of deposits issued to the public decreased by 9 per cent to EUR
337 M (371).                                                                    

Lending                                                                         
The volume of lending to the public increased during the 12 months to March 31, 
2007 by 9 per cent to EUR 1,956 M (1,802). Most of the increase went towards    
residential financing. Lending to private households increased by 12 per cent to
EUR 1,379 M (1,233). Households accounted for 71 (68) per cent of the Group's   
total lending.                                                                  
                                                                                
Ab Compass Card Oy Ltd                                                          
Ab Compass Card Oy Ltd is a subsidiary of the Bank of Åland Plc (Ålandsbanken   
Abp). The mission of the company is to issue credit and debit cards to private  
and institutional customers. The company is in the start-up phase and is        
expected to be in full operation by late 2007.                                  

Crosskey Banking Solutions Ab Ltd                                               
Crosskey Banking Solutions Ab Ltd is a wholly-owned subsidiary of the Bank of   
Åland Plc. The mission of the company is to develop, sell and maintain banking  
computer systems − either as whole systems or in modules − to small and         
medium-sized banks in Europe, as well as sell operational services. Among       
Crosskey's current customers are Tapiola Bank, DnB NOR, S-Bank, the Bank of     
Åland, eQ Bank and EGET. Crosskey currently has 138 employees and offices in    
Mariehamn, Turku, Helsinki and Stockholm.                                       

Ålandsbanken Asset Management Ab                                                
Ålandsbanken Asset Management Ab is a subsidiary of the Bank of Åland Plc. The  
company offers discretionary and consultative asset management services to      
institutions and private individuals. The company also manages all of the Bank  
of Åland's mutual funds. The company currently has about 300 customers and EUR  
800 M in managed assets. The company has strong growth.                         

Ålandsbanken Fondbolag Ab                                                       
Ålandsbanken Fondbolag Ab is a wholly-owned subsidiary of the Bank of Åland Plc.
The mutual funds (unit trusts) that the company manages are registered in       
Finland and comply with the Act on Mutual Funds. At the end of the report       
period, the total number of unit holders was 13,253 (10,605). This represented  
an increase of 2,648 or 25 per cent. Total assets under management amounted to  
EUR 395 M (278), an increase of EUR 117 M or 42 per cent since one year earlier.

Ålandsbanken Kapitalmarknadstjänster Ab                                         
Ålandsbanken Kapitalmarknadstjänster Ab (Allcap Ab) is a subsidiary of the Bank 
of Åland Plc. The company provides discretionary asset management as well as    
consulting services related to securities and financing. The value of           
discretionarily managed mandates totalled EUR 130 M at the end of the report    
period. The company has more than 200 customers, with an aggregate portfolio    
value of EUR 470 M.                                                             

Annual General Meeting                                                          
The Annual General Meeting of Shareholders of the Bank of Åland (AGM) on March  
23, 2007 approved the Board of Directors' proposal for the distribution of a    
dividend of EUR 1.00 per Series A and Series B share, respectively for 2006. The
record date for the dividend distribution was March 27, 2007. The dividend was  
distributed on April 3, 2007.                                                   

The AGM unanimously re-elected Sven-Harry Boman, Kent Janér, Agneta Karlson,    
Göran Lindholm, Leif Nordlund, Anders Wiklöf and Tom Palmberg as members of the 
Board of Directors, but in such a way that Mr Palmberg's term of office runs    
until June 30, 2007. The term of the other Board members runs until the end of  
the next AGM. For a term of office from July 1, 2007 until the end of the next  
AGM, the AGM unanimously elected Teppo Taberman.                                

Events after the close of the report period                                     
The Bank of Åland Plc has decided to broaden its operations to also include     
estate agency business by purchasing a shareholding in the residential estate   
agent company Veranta Oy Helsinki. The company, whose new name is Ålandsbanken  
Veranta Ab, is 84 per cent owned by the Bank of Åland Abp.                      

In April 2007, the Bank of Åland reached an agreement to acquire all the        
outstanding shares in Ålandsbanken Kapitalmarknadstjänster Ab. As a result of   
this acquisition, the company is a wholly owned subsidiary of the Bank. The     
operations of the company will be moved to the Parent Company and employees of  
the company will be transferred to the Parent Company as “old employees”. The   
acquisition of  Ålandsbanken Kapitalmarknadstjänster Ab is an element in        
implementing the Board of Directors' strategy to create a competitive and       
unified centre of excellence for the Group's investment banking operations in   
the Åland market.                                                               

Outlook for 2007                                                                
As earlier, the potential for an earnings improvement during 2007 is considered 
good. It should be noted, however, that the strong earnings during the first    
quarter were affected by nonrecurring items.                                    

The Group's assessment of the outlook for 2007 is based on its assumptions about
future developments in the fixed-income and financial markets. The Group        
predicts continued tough competition in the market with regard to lending       
margins, a continued positive trend in the mutual fund and capital markets as   
well as growth in the Group's IT operations. The cost level in the Group is     
expected to rise moderately. General interest rates, the demand for lending, the
trend of the capital and financial markets and the competitive situation are    
factors that the Group cannot influence.                                        

Mariehamn, April 23, 2007                                                       

THE BOARD OF DIRECTORS                                                          


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| FINANCIAL RATIOS ETC                                                         |
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| Bank of Åland Group                          | Jan-Mar |  Jan-Mar |  Jan-Dec |
--------------------------------------------------------------------------------
|                                              |    2007 |     2006 |     2006 |
--------------------------------------------------------------------------------
|                                              |         |          |          |
--------------------------------------------------------------------------------
| Earnings per share before dilution, EUR  1   |    0.50 |     0.41 |     1.29 |
--------------------------------------------------------------------------------
| Earnings per share after dilution, EUR  2    |    0.50 |     0.40 |     1.29 |
--------------------------------------------------------------------------------
| Market price per share, end of period, EUR   |         |          |          |
--------------------------------------------------------------------------------
|   Series A                                   |   27.00 |    28.00 |    26.50 |
--------------------------------------------------------------------------------
|   Series B                                   |   25.00 |    25.45 |    24.50 |
--------------------------------------------------------------------------------
| Equity capital per share, EUR  3             |   10.43 |     9.70 |    10.86 |
--------------------------------------------------------------------------------
| Return on equity after taxes, % (ROE)  4     |    19.8 |     17.2 |     13.3 |
--------------------------------------------------------------------------------
| Return on total assets (ROA), % 5            |     1.1 |      0.9 |      0.7 |
--------------------------------------------------------------------------------
| Equity/assets ratio, %  6                    |    5.29 |     4.98 |     5.58 |
--------------------------------------------------------------------------------
| Total lending volume, EUR M                  |   1,956 |    1,802 |    1,912 |
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| Total deposits from the public, EUR M        |   1,628 |    1,583 |    1,599 |
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| Equity capital, EUR M,                       |     120 |      107 |      122 |
--------------------------------------------------------------------------------
| Balance sheet total, EUR M                   |   2,272 |    2,143 |    2,189 |
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| Expense/income ratio                         |         |          |          |
--------------------------------------------------------------------------------
|   Including loan losses                      |    0.56 |     0.59 |     0.66 |
--------------------------------------------------------------------------------
|   Excluding loan losses                      |    0.56 |     0.59 |     0.66 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 Profit for the period before dilution/ Average number of shares            |
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| 2 Profit for the period after dilution / Average number of shares + shares   |
| outstanding                                                                  |
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| 3 Equity capital / Number of shares on balance sheet date                    |
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| 4 Net operating profit - taxes / Average equity capital                      |
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| 5 Net operating profit  - taxes / Average balance sheet total                |
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| 6 Profit for the period / Balance sheet total                                |
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| CAPITAL ADEQUACY                                                             |
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| Bank of Åland Group                         |   Mar 31 |   Mar 31 |   Dec 31 |
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|                                             |     2007 |     2006 |     2006 |
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|                                             |  Basel 2 |  Basel 1 |  Basel 2 |
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|                                             |          |          |          |
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| Capital base, EUR M                         |          |          |          |
--------------------------------------------------------------------------------
|   Core capital  *                           |     92.2 |     84.5 |     88.3 |
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|   Supplementary capital                     |     54.4 |     49.6 |     53.4 |
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| Total capital base                          |    146.6 |    134.1 |    141.7 |
--------------------------------------------------------------------------------
|                                             |          |          |          |
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|   Capital requirement for credit risks      |     78.6 |     97.9 |     75.5 |
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|   Capital requirement for operational risks |      8.0 |          |      7.3 |
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| Total capital requirement                   |     86.6 |     97.9 |     82.8 |
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| Total capital ratio, %                      |     13.5 |     11.0 |     13.7 |
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| Core capital ratio, %                       |      8.5 |      6.9 |      8.5 |
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| * Profit for the report period is not included in the capital base.          |
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| Due to the introduction of new rules for calculating the total capital ratio |
| (Basel 2), the figure for March 31, 2006 is not comparable to the other      |
| figures.                                                                     |
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| SUMMARY BALANCE SHEET                                                        |
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| Bank of Åland Group                         |   Mar.31 |   Mar.31 |   Dec.31 |
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| (EUR M)                                     |     2007 |     2006 |     2006 |
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|                                             |          |          |          |
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| ASSETS                                      |          |          |          |
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| Liquid assets                               |       64 |       50 |       65 |
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| Debt securities eligible for refinancing    |       76 |       47 |       57 |
| with central banks                          |          |          |          |
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| Claims on credit institutions               |       69 |      146 |       60 |
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| Claims on the public and public sector      |    1,956 |    1,802 |    1,912 |
| entities                                    |          |          |          |
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| Debt securities                             |        0 |        0 |        0 |
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| Shares and participations                   |        3 |        4 |        4 |
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| Shares and participations in associated     |        2 |        1 |        2 |
| companies                                   |          |          |          |
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| Derivative instruments                      |       27 |       20 |       27 |
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| Intangible assets                           |        5 |        4 |        5 |
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| Tangible assets                             |       25 |       24 |       23 |
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| Other assets                                |       25 |       27 |       17 |
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| Accrued income and prepaid expenses         |       18 |       16 |       16 |
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| Deferred tax assets                         |        1 |        1 |        1 |
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|                                             |          |          |          |
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| TOTAL ASSETS                                |    2,272 |    2,143 |    2,189 |
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|                                             |          |          |          |
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| LIABILITIES AND EQUITY CAPITAL              |          |          |          |
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| Liabilities to credit institutions          |       66 |       75 |       62 |
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| Liabilities to the public and public sector |    1,293 |    1,215 |    1,261 |
| entities                                    |          |          |          |
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| Debt securities issued to the public        |      621 |      594 |      597 |
--------------------------------------------------------------------------------
| Derivative instruments                      |       26 |       20 |       26 |
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| Other liabilities                           |       57 |       51 |       35 |
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| Accrued expenses and prepaid income         |       20 |       16 |       12 |
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| Subordinated liabilities                    |       56 |       55 |       60 |
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| Deferred tax liabilities                    |       13 |       12 |       13 |
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| TOTAL LIABILITIES                           |    2,151 |    2,036 |    2,066 |
--------------------------------------------------------------------------------
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| EQUITY CAPITAL AND MINORITY INTEREST        |          |          |          |
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| Share capital                               |       23 |       22 |       23 |
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| Share issue                                 |        0 |        0 |        0 |
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| Share premium account                       |       33 |       26 |       29 |
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| Reserve fund                                |       25 |       25 |       25 |
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| Fair value reserve                          |        0 |        0 |        0 |
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| Retained earnings                           |       31 |       28 |       28 |
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| Profit for the period                       |        6 |        5 |       15 |
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| Minority interest in capital                |        2 |        1 |        2 |
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| TOTAL EQUITY CAPITAL                        |      120 |      107 |      122 |
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|                                             |          |          |          |
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| TOTAL LIABILITIES AND EQUITY CAPITAL        |    2,272 |    2,143 |    2,189 |
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| SUMMARY INCOME STATEMENT                                                     |
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| Bank of Åland Group                       |    Jan-Mar |  Jan-Mar |  Jan-Dec |
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| (EUR M)                                   |       2007 |     2006 |     2006 |
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|                                           |            |          |          |
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| Net interest income                       |        9.2 |      8.1 |     32.7 |
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| Income from equity instruments            |        0.0 |      0.0 |      0.0 |
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| Commission income                         |        5.4 |      4.4 |     18.4 |
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| Commission expenses                       |       -0.5 |     -0.4 |     -1.7 |
--------------------------------------------------------------------------------
| Net income from securities transactions   |        0.9 |      0.7 |      2.3 |
| and foreign exchange dealing              |            |          |          |
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| Net income from financial assets          |        0.5 |      0.3 |      0.3 |
| available for sale                        |            |          |          |
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| Net income from investment properties     |        0.1 |      0.0 |      0.2 |
--------------------------------------------------------------------------------
| Other operating income                    |        2.9 |      2.3 |      9.4 |
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| Total income                              |       18.5 |     15.5 |     61.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Staff costs                               |       -6.0 |     -5.3 |    -22.5 |
--------------------------------------------------------------------------------
| Other administrative expenses             |       -1.9 |     -1.9 |     -9.4 |
--------------------------------------------------------------------------------
| Production for own use                    |        0.1 |      0.1 |      0.5 |
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| Depreciation/amortisation                 |       -1.3 |     -1.0 |     -4.0 |
--------------------------------------------------------------------------------
| Other operating expenses                  |       -1.3 |     -1.1 |     -5.4 |
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| Total expenses                            |      -10.4 |     -9.3 |    -40.9 |
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|                                           |            |          |          |
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| Impairment loss on loans and other        |       -0.1 |      0.0 |      0.0 |
| commitments                               |            |          |          |
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| Share of profit in associated companies   |        0.1 |      0.1 |      0.3 |
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| Net operating profit                      |        8.1 |      6.4 |     21.1 |
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|                                           |            |          |          |
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| Income taxes                              |       -2.1 |     -1.6 |     -5.4 |
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| Profit for the period                     |        6.0 |      4.7 |     15.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders interest in profit for the   |        5.7 |      4.5 |      1.0 |
| period                                    |            |          |          |
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| Minority interest in profit for the       |        0.3 |      0.2 |     14.7 |
| period                                    |            |          |          |
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| Total                                     |        6.0 |      4.7 |     15.7 |
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|                                                                              |
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| Earnings per share                                                           |
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| Earnings per share before dilution, EUR 1     |   0.50 |     0.41 |     1.29 |
--------------------------------------------------------------------------------
| Earnings per share after dilution, EUR 2      |   0.50 |     0.40 |     1.29 |
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| 1 Profit for the period before dilution / Average number of shares           |
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| 2) Profit for the period after dilution  / (Average number of shares +       |
| shares outstanding)                                                          |
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| INCOME STATEMENT BY QUARTER                                                  |
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| Bank of Åland Group              |   Q I |   Q IV |  Q III |   Q II |    Q I |
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| (EUR M)                          |  2007 |   2006 |   2006 |   2006 |   2006 |
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| Net interest income              |   9.2 |    8.6 |    8.2 |    7.8 |    8.1 |
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| Income from equity instruments   |   0.0 |    0.0 |    0.0 |    0.0 |    0.0 |
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| Commission income                |   5.4 |    4.9 |    4.3 |    4.9 |    4.4 |
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| Commission expenses              |  -0.5 |   -0.5 |   -0.4 |   -0.4 |   -0.4 |
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| Net income from securities       |   0.9 |    0.8 |    0.1 |    0.6 |    0.7 |
| transactions and foreign         |       |        |        |        |        |
| exchange dealing                 |       |        |        |        |        |
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| Net income from financial assets |   0.5 |    0.1 |    0.0 |   -0.1 |    0.3 |
| available for sale               |       |        |        |        |        |
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| Net income from investment       |   0.1 |    0.2 |    0.1 |    0.0 |    0.0 |
| properties                       |       |        |        |        |        |
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| Other operating income           |   2.9 |    2.8 |    2.4 |    2.0 |    2.3 |
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| Total income                     |  18.5 |   16.8 |   14.6 |   14.6 |   15.5 |
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|                                  |       |        |        |        |        |
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| Staff costs                      |  -6.0 |   -6.5 |   -5.2 |   -5.6 |   -5.3 |
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| Other administrative expenses    |  -1.9 |   -3.1 |   -1.8 |   -2.5 |   -1.9 |
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| Production for own use           |   0.1 |    0.1 |    0.1 |    0.1 |    0.1 |
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| Depreciation/ amortisation       |  -1.3 |   -1.0 |   -1.0 |   -1.0 |   -1.0 |
--------------------------------------------------------------------------------
| Other operating expenses         |  -1.3 |   -1.9 |   -1.2 |   -1.2 |   -1.1 |
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| Total expenses                   | -10.4 |  -12.4 |   -9.1 |  -10.2 |   -9.3 |
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|                                  |       |        |        |        |        |
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| Loss impairment on loans and     |  -0.1 |   -0.1 |    0.0 |    0.1 |    0.0 |
| other commitments                |       |        |        |        |        |
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| Share of profit in associated    |   0.1 |    0.1 |    0.0 |    0.1 |    0.1 |
| companies                        |       |        |        |        |        |
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| Net operating profit             |   8.1 |    4.5 |    5.6 |    4.6 |    6.4 |
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| CHANGES IN EQUITY CAPITAL                                                    |
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| Bank of Åland  | Share | Shar | Shar | Lega | Fair  | Retain | Minor | Total |
| Group          | capit | e    | e    | l    | value | ed     | ity   |       |
|                | al    | issu | prem | rese | reser | earnin | inter |       |
|                |       | e    | ium  | rve  | ve    | gs     | est   |       |
|                |       |      | acco |      |       |        |       |       |
|                |       |      | unt  |      |       |        |       |       |
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| EUR M          |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
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| Equity         |  22.2 |  0.0 | 26.1 | 25.1 |   0.4 |   38.7 |   0.9 | 113.3 |
| capital,       |       |      |      |      |       |        |       |       |
| December 31,   |       |      |      |      |       |        |       |       |
| 2005           |       |      |      |      |       |        |       |       |
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| Financial      |       |      |      |      |       |        |       |       |
| assets         |       |      |      |      |       |        |       |       |
| available for  |       |      |      |      |       |        |       |       |
| sale:          |       |      |      |      |       |        |       |       |
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| - change in    |       |      |      |      |   0.0 |        |       |   0.0 |
| fair value     |       |      |      |      |       |        |       |       |
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| - transferred  |       |      |      |      |  -0.2 |        |       |  -0.2 |
| to income      |       |      |      |      |       |        |       |       |
| statement      |       |      |      |      |       |        |       |       |
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| Profit for the |       |      |      |      |   0.0 |    4.5 |   0.2 |   4.7 |
| period         |       |      |      |      |       |        |       |       |
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| Total          |       |      |      |      |  -0.2 |    4.5 |   0.2 |   4.6 |
| recognised     |       |      |      |      |       |        |       |       |
| income and     |       |      |      |      |       |        |       |       |
| expenses       |       |      |      |      |       |        |       |       |
| during the     |       |      |      |      |       |        |       |       |
| period         |       |      |      |      |       |        |       |       |
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| Dividend to    |       |      |      |      |       |  -11.0 |  -0.5 | -11.5 |
| shareholders   |       |      |      |      |       |        |       |       |
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| Conversion of  |   0.0 |      |  0.3 |      |       |        |       |   0.3 |
| capital loan   |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Other change   |       |      |      |      |       |        |   0.0 |   0.0 |
| in minority    |       |      |      |      |       |        |       |       |
| share of       |       |      |      |      |       |        |       |       |
| equity capital |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Equity         |  22.2 |  0.0 | 26.4 | 25.1 |   0.2 |   32.2 |   0.6 | 106.8 |
| capital, March |       |      |      |      |       |        |       |       |
| 31, 2006       |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Financial      |       |      |      |      |       |        |       |       |
| assets         |       |      |      |      |       |        |       |       |
| available for  |       |      |      |      |       |        |       |       |
| sale:          |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| - change in    |       |      |      |      |   0.0 |        |       |       |
| fair value     |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| - transferred  |       |      |      |      |   0.2 |        |       |   0.2 |
| to income      |       |      |      |      |       |        |       |       |
| statement      |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Profit for the |       |      |      |      |   0.0 |   10.2 |   0.8 |  10.9 |
| period         |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Total          |       |      |      |      |   0.2 |   10.2 |   0.8 |  11.1 |
| recognised     |       |      |      |      |       |        |       |       |
| income and     |       |      |      |      |       |        |       |       |
| expenses       |       |      |      |      |       |        |       |       |
| during the     |       |      |      |      |       |        |       |       |
| period         |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Conversion of  |   0.4 |  0.3 |  2.8 |      |       |        |       |   3.6 |
| capital loan   |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Other change   |       |      |      |      |       |        |   0.7 |   0.7 |
| in minority    |       |      |      |      |       |        |       |       |
| share of       |       |      |      |      |       |        |       |       |
| equity capital |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Equity         |  22.7 |  0.3 | 29.2 | 25.1 |   0.4 |   42.4 |   2.1 | 122.2 |
| capital,       |       |      |      |      |       |        |       |       |
| December 31,   |       |      |      |      |       |        |       |       |
| 2006           |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Financial      |       |      |      |      |       |        |       |       |
| assets         |       |      |      |      |       |        |       |       |
| available for  |       |      |      |      |       |        |       |       |
| sale:          |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| - change in    |       |      |      |      |  -0.2 |        |       |  -0.2 |
| fair value     |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| - transferred  |       |      |      |      |   0.2 |        |       |   0.2 |
| to income      |       |      |      |      |       |        |       |       |
| statement      |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Profit for the |       |      |      |      |       |    5.7 |   0.3 |   6.0 |
| period         |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Total          |       |      |      |      |       |    5.7 |   0.3 |   6.0 |
| recognised     |       |      |      |      |       |        |       |       |
| income and     |       |      |      |      |       |        |       |       |
| expenses       |       |      |      |      |       |        |       |       |
| during the     |       |      |      |      |       |        |       |       |
| period         |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Dividend to    |       |      |      |      |   0.0 |  -11.5 |  -0.8 | -12.3 |
| shareholders 1 |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Conversion of  |   0.6 | -0.3 |  4.1 |      |       |        |       |   4.4 |
| capital loan 2 |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Other change   |       |      |      |      |       |        |   0.0 |   0.0 |
| in minority    |       |      |      |      |       |        |       |       |
| share of       |       |      |      |      |       |        |       |       |
| equity capital |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
| Equity         |  23.3 |  0.0 | 33.3 | 25.1 |   0.4 |   36.6 |   1.6 | 120.3 |
| capital, March |       |      |      |      |       |        |       |       |
| 31, 2007       |       |      |      |      |       |        |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1  Dividend payment for Series A shares EUR 5.2 M and for Series B shares    |
| EUR 6.3 M.                                                                   |
--------------------------------------------------------------------------------
| 2  During the report period, 289,932 new Series B shares subscribed in       |
| exchange for convertible loan certificates were recorded in the Finnish      |
| Trade Registry. This was equivalent to an increase in equity capital of EUR  |
| 0.5 M and an increase in the share premium account by EUR 3.8 M.             |
--------------------------------------------------------------------------------

NOTES TO THE CONSOLIDATED INTERIM REPORT                                        

1. CORPORATE INFORMATION                                                        
The Bank of Åland Plc (Ålandsbanken Abp) is a Finnish public company, organised 
in compliance with Finnish legislation and with its Head Office in Mariehamn.   
The Bank of Åland Plc is a commercial bank with a total of 25 offices. Through  
its subsidiary Crosskey Banking Solutions Ab Ltd, the Bank of Åland Group is    
also a supplier of modern banking computer systems for small and medium-sized   
banks.                                                                          

The Head Office has the following address:                                      
Bank of Åland Plc                                                               
Nygatan 3                                                                       
AX-22100 Mariehamn, Åland, Finland                                              

The Bank of Åland Plc is listed on the Helsinki Stock Exchange.                 

The Interim Report for the financial period January 1-March 31, 2007 was        
approved by the Board of Directors on April 20.                                 

2. BASIS FOR PREPARATION AND ESSENTIAL ACCOUNTING PRINCIPLES                    

Basis for preparation                                                           
The Interim Report for the period January 1-March 31, 2007 was prepared in      
compliance with IAS 34, “Interim Financial Reporting”.                          

The Interim Report does not contain all information and notes required in annual
financial statements and should be read together with the consolidated financial
statements for the year ending December 31, 2006.	                              

Essential accounting principles                                                 
The essential accounting principles used in preparing the Interim Report are the
same as the essential accounting principles used in preparing the financial     
statements for the year ending December 31, 2006, except for the introduction of
new standards and interpretations, which are described below. The introduction  
of new standards and interpretations has not materially affected the Group's    
results or financial position.                                                  

The following new standards and interpretations have been introduced:           

IFRS 7, “Financial instruments: Disclosures”                                    
A new standard that deals with disclosure requirements for all risks arising    
through financial instruments. The standard is applicable to all companies that 
possess financial instruments. The Group has decided to apply IFRS starting in  
2007.                                                                           

IFRIC 10, “Interim Financial Reporting and Impairment”                          
This interpretation is the result of a contradiction between the standard on    
interim reports, IAS 34, and the one on impairments, IAS 36. IFRIC 10 clarifies 
that an impairment loss recognised in an interim report may not be reversed in a
later interim or full year financial report. The Group is applying IFRIC 10     
starting in 2007.                                                               

IFRIC 9, “Reassessment of Embedded Derivatives”                                 
This interpretation clarifies certain aspects of the treatment of embedded      
derivatives in compliance with IAS                                              

The Group is not affected by amendments to the following:                       
IFRIC 7, “Applying the Restatement Approach under IAS Financial Reporting in    
Hyperinflationary Economies”                                                    
IFRIC 8, “Scope of IFRS 2 Share-based Payment”                                  
IFRIC 11, “Share-based Payment - Group and Treasury Share Transactions”         
IFRIC 12, “Service Concession Arrangements”                                     


3. ESTIMATES AND JUDGEMENTS                                                     
Preparation of financial statements in compliance with IFRS requires the        
company's Executive Team to make estimates and judgements that affect the       
recognised amounts of assets and liabilities, income and expenses as well as    
disclosures about commitments. Although these estimates are based on the best   
knowledge of the Executive Team on current events and measures, the actual      
outcome may diverge from these estimates.                                       

4. CASH FLOW STATEMENT                                                          
--------------------------------------------------------------------------------
| Bank of Åland Group                   |     Jan-Mar      |      Jan-Mar      |
--------------------------------------------------------------------------------
| (EUR M)                               |      2007        |       2006        |
--------------------------------------------------------------------------------
|                                       |        |         |         |         |
--------------------------------------------------------------------------------
| Cash and cash equivalents             |        |   130.2 |         |   217.4 |
--------------------------------------------------------------------------------
| Cash flow from operating activities   |        |         |         |         |
--------------------------------------------------------------------------------
| -Net operating profit                 |    8.1 |         |     6.4 |         |
--------------------------------------------------------------------------------
| -Adjustment for net operating profit  |    1.1 |         |     0.3 |         |
| items not affecting cash flow         |        |         |         |         |
--------------------------------------------------------------------------------
| -Gains from investing activities      |   -0.5 |         |    -0.2 |         |
--------------------------------------------------------------------------------
| -Income taxes paid                    |   -0.9 |         |    -1.4 |         |
--------------------------------------------------------------------------------
| -Changes in assets and liabilities in |  -16.1 |    -8.3 |   -52.6 |   -47.5 |
| operating activities                  |        |         |         |         |
--------------------------------------------------------------------------------
|                                       |        |         |         |         |
--------------------------------------------------------------------------------
| Cash flow from investing activities   |        |    -2.6 |         |    -0.2 |
--------------------------------------------------------------------------------
| Cash flow from financing activities   |        |    33.9 |         |   -11.5 |
--------------------------------------------------------------------------------
| Cash and cash equivalents, March 31   |        |   153.2 |         |   158.2 |
--------------------------------------------------------------------------------

5. SEGMENT REPORT                                                               
The Bank of Åland Group reports the various business segments as primary        
segments. A business segment is a group of departments and companies that supply
products or services that have risks and returns that diverge from other        
business segments. Intra-Group transactions occur at market prices. The Bank of 
Åland Group does not report geographic segments as secondary segments, since all
operations occur in Finland.                                                    
--------------------------------------------------------------------------------
| Bank of Åland Group     |                   Jan - Mar 2007                   |
--------------------------------------------------------------------------------
|  (EUR M)                | Banking  |   IT    | Other   | Eliminat |  Total   |
|                         | operatio | operati |         |   ions   |          |
|                         |    ns    |  ons    |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| External income         |     13.9 |     2.8 |     1.9 |          |     18.5 |
--------------------------------------------------------------------------------
| Internal income         |      0.2 |     2.6 |         |     -2.8 |      0.0 |
--------------------------------------------------------------------------------
| Total income            |     14.1 |     5.4 |     1.9 |     -2.8 |     18.5 |
--------------------------------------------------------------------------------
| Costs incl.             |     -8.1 |    -3.9 |    -1.2 |      2.8 |    -10.4 |
| depreciation etc.       |          |         |         |          |          |
--------------------------------------------------------------------------------
| Loan losses             |     -0.1 |         |         |          |     -0.1 |
--------------------------------------------------------------------------------
| Share of profit in      |          |         |     0.1 |          |      0.1 |
| associated companies    |          |         |         |          |          |
--------------------------------------------------------------------------------
| Net operating profit    |      5.8 |     1.5 |     0.8 |      0.0 |      8.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets                  |  1,959.2 |     8.8 |   304.7 |     -1.0 |  2,271.7 |
--------------------------------------------------------------------------------
| Liabilities             | -1,914.0 |    -4.7 |  -233.1 |      0.4 | -2,151.4 |
--------------------------------------------------------------------------------
| Equity capital          |          |         |         |          |    120.3 |
--------------------------------------------------------------------------------
|                         |          |         |         |          |          |
--------------------------------------------------------------------------------
| Bank of Åland Group     |                   Jan - Mar 2006                   |
--------------------------------------------------------------------------------
|  (EUR M)                | Banking  |   IT    |  Other  | Eliminat |  Total   |
|                         | operatio | operati |         |   ions   |          |
|                         |    ns    |  ons    |         |          |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| External income         |     11.4 |     2.2 |     1.8 |          |     15.5 |
--------------------------------------------------------------------------------
| Internal income         |      0.2 |     2.3 |         |     -2.6 |      0.0 |
--------------------------------------------------------------------------------
| Total income            |     11.7 |     4.6 |     1.8 |     -2.6 |     15.5 |
--------------------------------------------------------------------------------
| Costs incl.             |     -7.8 |    -3.2 |    -0.8 |      2.6 |     -9.3 |
| depreciation etc.       |          |         |         |          |          |
--------------------------------------------------------------------------------
| Loan losses             |      0.0 |         |         |          |      0.0 |
--------------------------------------------------------------------------------
| Share of profit/loss in |          |         |     0.1 |          |      0.1 |
| associated companies    |          |         |         |          |          |
--------------------------------------------------------------------------------
| Net operating profit    |      3.8 |     1.3 |     1.2 |      0.0 |      6.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets                  |  1,804.7 |     4.5 |   334.6 |     -0.9 |  2,142.8 |
--------------------------------------------------------------------------------
| Liabilities             | -1,808.7 |    -5.4 |  -224.0 |      2.1 | -2,036.0 |
--------------------------------------------------------------------------------
| Equity capital          |          |         |         |          |    106.8 |
--------------------------------------------------------------------------------

The “Banking operations” segment includes banking and investment operations     
carried out at 25 bank offices plus the subsidiaries Ab Compass Card Oy Ltd,    
Ålandsbanken Asset Management Ab, Ålandsbanken Fondbolag Ab and Ålandsbanken    
Kapitalmarknadstjänster Ab. Reported in “IT operations are Crosskey Banking     
Solutions Ab Ltd and S-Crosskey Ab, which supply modern banking computer systems
to small and medium-sized banks. Reported in “Other” are the results of Treasury
and portfolio management as well as management and related corporate expenses.  

6. INCOME TAXES                                                                 
--------------------------------------------------------------------------------
| Bank of Åland Group                                 |    Mar 31 |     Mar 31 |
--------------------------------------------------------------------------------
| (EUR K)                                             |      2007 |       2006 |
--------------------------------------------------------------------------------
|                                                     |           |            |
--------------------------------------------------------------------------------
| Taxes for the report period and earlier report      |     2,091 |      1,480 |
| periods                                             |           |            |
--------------------------------------------------------------------------------
| Change in deferred tax assets/liabilities           |        31 |        135 |
--------------------------------------------------------------------------------
| Income taxes                                        |     2,122 |      1,615 |
--------------------------------------------------------------------------------

7. DIVIDEND                                                                     
--------------------------------------------------------------------------------
| Bank of Åland Group                              |        2006 |        2005 |
--------------------------------------------------------------------------------
| (EUR)                                            |             |             |
--------------------------------------------------------------------------------
| Final dividend for 2006: EUR 1 (2005: EUR 1)     |  11,536,122 |  11,009,649 |
--------------------------------------------------------------------------------
|                                                  |             |             |
--------------------------------------------------------------------------------
| The proposed dividend for 2006 was adopted by the Annual General Meeting on  |
| March 23. The record date was March 27 and the distribution date was April   |
| 3. The dividend for 2006 was carried under “Other liabilities” on March 31,  |
| 2007. The dividend for 2005 was paid on March 31, 2006.                      |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 8. DEPOSITS FROM THE PUBLIC AND PUBLIC SECTOR ENTITIES,                      |
--------------------------------------------------------------------------------
|    including bonds issued and certificates of deposit                        |
--------------------------------------------------------------------------------
| Bank of Åland Group                        |  Mar 31 |    Mar 31 |    Dec 31 |
--------------------------------------------------------------------------------
| (EUR M)                                    |    2007 |      2006 |      2006 |
--------------------------------------------------------------------------------
| Deposit accounts from the public and       |         |           |           |
| public sector entities                     |         |           |           |
--------------------------------------------------------------------------------
| Demand deposit accounts                    |     158 |       170 |       180 |
--------------------------------------------------------------------------------
| Current accounts                           |     209 |       187 |       199 |
--------------------------------------------------------------------------------
| Savings and Environmental Accounts         |      93 |       102 |        99 |
--------------------------------------------------------------------------------
| Prime Accounts                             |     451 |       442 |       445 |
--------------------------------------------------------------------------------
| Time deposits                              |     316 |       240 |       268 |
--------------------------------------------------------------------------------
| Total deposit accounts in euros            |   1,228 |     1,141 |     1,191 |
--------------------------------------------------------------------------------
| Deposit accounts in other currencies       |      63 |        70 |        67 |
--------------------------------------------------------------------------------
| Total deposit accounts                     |   1,291 |     1,211 |     1,259 |
--------------------------------------------------------------------------------
|                                            |         |           |           |
--------------------------------------------------------------------------------
| Bonds                                      |     171 |       182 |       180 |
--------------------------------------------------------------------------------
| Certificates of deposit issued to the      |     166 |       189 |       160 |
| public *                                   |         |           |           |
--------------------------------------------------------------------------------
| Bonds and certificates of deposit          |     337 |       371 |       340 |
--------------------------------------------------------------------------------
|                                            |         |           |           |
--------------------------------------------------------------------------------
| Total deposits                             |   1,628 |     1,583 |     1,599 |
--------------------------------------------------------------------------------
| * This item does not include debt securities subscribed by credit            |
| institutions.                                                                |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 9. LENDING TO THE PUBLIC AND PUBLIC SECTOR ENTITIES BY PURPOSE               |
--------------------------------------------------------------------------------
| Bank of Åland Group                           | Mar 31 |  Mar 31 |    Dec 31 |
--------------------------------------------------------------------------------
| (EUR M)                                       |   2007 |    2006 |      2006 |
--------------------------------------------------------------------------------
| BUSINESS AND PROFESSIONAL ACTIVITIES          |        |         |           |
--------------------------------------------------------------------------------
|  Service sector                               |        |         |           |
--------------------------------------------------------------------------------
|   Shipping                                    |     65 |      61 |        60 |
--------------------------------------------------------------------------------
|   Hotels, restaurants, tourist cottages etc   |     12 |      12 |        12 |
--------------------------------------------------------------------------------
|   Wholesale and retail trade                  |     50 |      44 |        47 |
--------------------------------------------------------------------------------
|   Housing corporations                        |     51 |      40 |        54 |
--------------------------------------------------------------------------------
|   Real estate operations                      |     96 |      93 |        96 |
--------------------------------------------------------------------------------
|   Financial operations                        |    139 |     153 |       126 |
--------------------------------------------------------------------------------
|   Other service business                      |     78 |      75 |        83 |
--------------------------------------------------------------------------------
|                                               |    492 |     477 |       477 |
--------------------------------------------------------------------------------
|  Production sector                            |        |         |           |
--------------------------------------------------------------------------------
|   Agriculture, forestry and fishing           |     18 |      21 |        20 |
--------------------------------------------------------------------------------
|   Food processing etc                         |      7 |       8 |         7 |
--------------------------------------------------------------------------------
|   Construction                                |     23 |      27 |        22 |
--------------------------------------------------------------------------------
|   Other industry and crafts                   |     10 |       8 |        11 |
--------------------------------------------------------------------------------
|                                               |     59 |      64 |        60 |
--------------------------------------------------------------------------------
| HOUSEHOLDS                                    |        |         |           |
--------------------------------------------------------------------------------
|   Home loans                                  |  1,078 |     984 |     1,063 |
--------------------------------------------------------------------------------
|   Studies                                     |     14 |      13 |        14 |
--------------------------------------------------------------------------------
|   Other purposes                              |    287 |     235 |       271 |
--------------------------------------------------------------------------------
|                                               |  1,379 |   1,233 |     1,347 |
--------------------------------------------------------------------------------
|                                               |        |         |           |
--------------------------------------------------------------------------------
| PUBLIC SECTOR AND NON-PROFIT ORGANISATIONS    |     27 |      28 |        27 |
--------------------------------------------------------------------------------
|                                               |        |         |           |
--------------------------------------------------------------------------------
| TOTAL LENDING                                 |  1,956 |   1,802 |     1,912 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 10. OFF-BALANCE SHEET COMMITMENTS                                            |
--------------------------------------------------------------------------------
| Bank of Åland Group                        |   Mar.31 |   Mar.31 |    Dec.31 |
--------------------------------------------------------------------------------
| (EUR M)                                    |     2007 |     2006 |      2006 |
--------------------------------------------------------------------------------
| Guarantees and pledges                     |       26 |       14 |        16 |
--------------------------------------------------------------------------------
| Other commitments                          |      157 |      143 |       154 |
--------------------------------------------------------------------------------
|                                            |      184 |      158 |       170 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 11. DERIVATIVE CONTRACTS                                                     |
--------------------------------------------------------------------------------
| Bank of Åland Group             |    Mar 31, 2007     |     Mar 31, 2006     |
--------------------------------------------------------------------------------
| (EUR M)                         |   For    |  Other   |   For    |   Other   |
|                                 | hedging  |          | hedging  |           |
|                                 | purposes |          | purposes |           |
--------------------------------------------------------------------------------
| Value of underlying property    |          |          |          |           |
--------------------------------------------------------------------------------
| Interest rate derivatives       |          |          |          |           |
--------------------------------------------------------------------------------
|   Interest rate swap contracts  |    309.8 |      8.6 |    334.2 |       8.6 |
--------------------------------------------------------------------------------
| Currency derivatives            |          |          |          |           |
--------------------------------------------------------------------------------
|   Forward contracts             |      4.0 |      3.5 |     10.9 |      11.4 |
--------------------------------------------------------------------------------
| Interest rate and currency swap |      0.0 |      1.4 |      0.0 |       1.1 |
| contracts                       |          |          |          |           |
--------------------------------------------------------------------------------
| Equity derivatives              |          |          |          |           |
--------------------------------------------------------------------------------
|   Option contracts              |          |          |          |           |
--------------------------------------------------------------------------------
|      Purchased                  |    149.0 |      0.0 |    160.7 |       0.0 |
--------------------------------------------------------------------------------
|      Written                    |      0.0 |    149.0 |      0.0 |     160.7 |
--------------------------------------------------------------------------------
|                                 |    462.8 |    162.5 |    505.8 |     181.8 |
--------------------------------------------------------------------------------
| Equivalent credit values of the |          |          |          |           |
| contracts                       |          |          |          |           |
--------------------------------------------------------------------------------
|    Interest rate derivatives    |      4.7 |          |      3.0 |           |
--------------------------------------------------------------------------------
|    Currency derivatives         |      0.2 |          |      0.5 |           |
--------------------------------------------------------------------------------
|    Equity derivatives           |     35.2 |          |     29.3 |           |
--------------------------------------------------------------------------------
|                                 |     40.1 |          |     32.8 |           |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 12. MATURITY BREAKDOWN OF CLAIMS AND LIABILITIES                             |
--------------------------------------------------------------------------------
| Bank of Åland Group     |                    Mar 31, 2007                    |
--------------------------------------------------------------------------------
| (EUR M)                 | < 3   | 3 - 12 | 1 - 5  | 5 - 10 | Over   | Total  |
|                         | mo    | mo     | yrs    | yrs    | 10 yrs |        |
--------------------------------------------------------------------------------
|                         |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Claims                  |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Debt securities         |    64 |     10 |      2 |      0 |      0 |     76 |
| eligible for            |       |        |        |        |        |        |
| refinancing with        |       |        |        |        |        |        |
| central banks           |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Credit institutions and |    69 |      0 |      0 |      0 |      0 |     69 |
| central banks           |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| The public and public   |   155 |    234 |    712 |    833 |     23 |  1,956 |
| sector entities         |       |        |        |        |        |        |
--------------------------------------------------------------------------------
|  Other debt securities  |     0 |      0 |      0 |      0 |      0 |      0 |
--------------------------------------------------------------------------------
|                         |   288 |    244 |    714 |    833 |     23 |  2,102 |
--------------------------------------------------------------------------------
|                         |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Liabilities             |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Credit institutions and |    66 |      0 |      0 |      0 |      0 |     66 |
| central banks           |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| The public and public   | 1,207 |     71 |     14 |      1 |      0 |  1,293 |
| sector entities         |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Debt securities issued  |   336 |    181 |    103 |      0 |      0 |    621 |
| to the public           |       |        |        |        |        |        |
--------------------------------------------------------------------------------
| Subordinated            |     1 |      0 |     22 |     33 |      0 |     56 |
| liabilities             |       |        |        |        |        |        |
--------------------------------------------------------------------------------
|                         | 1,610 |    253 |    140 |     34 |      0 |  2,036 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| 13. INTEREST RATE REFIXING PERIODS                                           |
--------------------------------------------------------------------------------
| Bank of Åland Group |                      Mar 31, 2007                      |
--------------------------------------------------------------------------------
| (EUR M)             | < 3 mo  | 3-6 mo |  6-12  |  1-5   | > 5 yrs |  Total  |
|                     |         |        |   mo   |  yrs   |         |         |
--------------------------------------------------------------------------------
|                     |         |        |        |        |         |         |
--------------------------------------------------------------------------------
| Assets              | 1,279.3 |  371.5 |  479.9 |  221.0 |    30.7 | 2,382.4 |
--------------------------------------------------------------------------------
| Liabilities         | 1,327.1 |  322.7 |  338.0 |  234.1 |    30.3 | 2,252.2 |
--------------------------------------------------------------------------------
| Difference between  |   -47.8 |   48.8 |  141.9 |  -13.1 |     0.4 |   130.2 |
| assets and          |         |        |        |        |         |         |
| liabilities         |         |        |        |        |         |         |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shows the Bank's interest rate-related assets and liabilities, including     |
| derivatives, according to the interest rate refixing date as of March 31,    |
| 2007.                                                                        |
--------------------------------------------------------------------------------


Review report                                                                   

To the shareholders of the Bank of Åland Abp                                    

We have conducted a review of the Interim Report of the Bank of Åland Abp for   
the period January 1 −                                                          
March 31, 2007.                                                                 

The Interim Report, which was issued by the Board of Directors and the Managing 
Director, includes a condensed income statement, balance sheet, cash flow       
statement, changes in equity capital and certain additional disclosures. After  
completing our assignment, we are issuing our statement of opinion about the    
Interim Report.                                                                 

Our review was conducted in accordance with the recommendations of the Finnish  
Institute of Authorised                                                         
Public Accountants concerning reviews. A review is planned and carried out on a 
sufficient scope to confirm that the Interim Report does not contain essential  
errors or omissions. A review is mainly limited to interviews with the staff of 
the Bank and analytical examination measures. We have not conducted a complete  
audit and will thus not issue an audit report.                                  

On the basis of this review, to our knowledge no circumstances have emerged that
would give reason to assume that the Interim Report has not been prepared       
essentially in accordance with the accounting and valuation principles of the   
IFRS standards approved by the EU as well as other Finnish rules and regulations
concerning Interim Reports and that the Interim Report should not provide       
accurate and sufficient disclosures about the operating results and financial   
position of the Bank.                                                           

Mariehamn, April 23, 2007                                                       

Marja Tikka                                                                     
Authorised Public Accountant                                                    

Leif Hermans                                                                    
Authorised Public Accountant                                                    

Rabbe Nevelainen                                                                
Authorised Public Accountant