Bank of Åland Plc (Ålandsbanken) (OMXH: ALBAV, OMXH: ALBBV) reported second quarter net operating profit excluding restructuring expenses of 2.1 million, same as in Q1. Profit for the period was minus 2.2 million Euro due to restructuring expenses in Sweden. Ålandsbanken has recently elected a new CEO for Swedish operations and is switching the Swedish unit to branch status.
Private Banking continued to perform well. Return on equity from Finnish operations approaches 15%. Tier 1 Capital ratio was 7.7 percent. Ålandsbanken already said in June that it is planning a capital increase through a rights issue. This would raise Tier 1 ratio to 9.6%.
Ålandsbanken has 27 offices in Finland; 19 of them in Åland and 8 in Finnish mainland. The bank entered Swedish market with a physical presence through a purchase of Kaupthing Bank Sverige AB, now Ålandsbanken Sverige AB, in 2009. The bank is planning to expand operations in both countries and has decided to close the institutional equities trading unit in Sweden. The illiquid share is trading flat on low volume.
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