Investor Presentaiton

Group Funding and Liquidity Management 24 • Demand deposits and time deposits from core private customers and their companies are the main funding sources Covered Bonds, the main long-term funding tool, were introduced in early 2012 in order to diversify funding sources and to form a reliable and cost efficient funding channel Loans from central banks have grown during the time of Covid-19: 2% A balanced funding mix is maintained with diversity of funding sources Well-diversified maturity profile with limited exposure to short term wholesale funding 400 350 300 250 M EUR 200 ≥ 150 100 50 Maturing Long Funding* June 30, 2021 Group Funding Profile June 30, 2021 10% 4 % 0 %. 3% 5% Deposits Covered Bonds Senior unsecured Central banks →> 10 % 15 % Themes 2021 • • 2021 2022 Covered bonds 2023 2024 ■Senior unsecured Excluding retained Covered Bonds 63 % Short term banks Subordinated Own capital Share of customer deposits will stay high on around 60 % of funding • During the Covid-19 it has been a reasonable strategy to issue retained Covered Bonds and use those as collateral for funding from the central banks • Demand conditions and the market situation favour issuance in Covered Bonds • The balanced funding mix is maintained The Bank of Åland will receive an MREL requirement from the beginning of 2022. The requirement will consist of a minimum of 9 % total capital requirement and a minimum of 3 % leverage ratio. The MREL requirements have no material effect on the funding of the Bank ALANDSBANKEN

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