Investor Presentaiton
Commitment to a Strong Capital Ratio
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The Bank of Åland is committed to a strong capital ratio
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The Bank will continue to build up its capital base, improve and diversify
earnings, and uphold a sound approach to risk
In March 2021, for the first time the Bank of Åland issued additional Tier 1 (AT1)
capital instruments, totalling SEK 300 M
Conservative pay-out policy is to safeguard the capital position
Dividends for 2019 and 2020 EUR 31.2 M approved and distributed under H1
2021, subtracted from the Bank's CET1 capital ratio on December 31, 2020
CET1 capital ratio for a small bank like the Bank of Åland is not comparable to
larger banks with IRB methods. Standard & Poor's rating method considers the
Bank of Åland to have strong risk-adjusted capitalization
According to S&P the capital position of the Bank of
Aland is strong
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Strong risk-adjusted capitalization
Low credit losses
RAC ratio 13.9 % (December 31, 2020) remains a rating strength to
the Bank of Åland
S&P (January 22, 2021 and again July 15, 2021) has indicated that
they could raise the rating if the Bank of Åland's capitalization
improves, as indicated by a sustained increase of its RAC ratio
beyond 15 % threshold for a very strong capital and earnings over
the next 24 months
Nordic Banks RAC Ratio On June 30, 2020, Compared With Dec. 31, 2019
30.00
18.0
16.5
16.6
15.8
25.00
16.0
15.4
14.2
2.2
1.5
14.0
2.4
2.4
20.00
1.7
1.3
12.0
15.00
10.0
10.00
8.0
6.0
12.9
13.0
13.4
14.3
13.4
5.00
4.0
0.00
2.0
0.0
2017
2018
2019
2020
2021
■CET1 AT1 T2
20
3
Bonum bank
Islandsbanki
Sparbanken Skane
Landshypotek Bank
Hypo **
Landsbankinn
Eiendomskreditt
Storebrand Bank
Arion Bank
Danmarks Skibskredit
Swedish Export Credit
SBG Finland*
Bank Norwegian
Sparbanken Sjuharad
DNB Bank
Swedbank
Jyske Bank
Nordea Bank
SBAB Bank
Aktia Bank
Danske Bank
Handelsbanken
SEB
forsakate Al Bar
DLR Kredit
S-Bank.
Oma Savings Bank
Year-end 2019
Change from year-end 2019 (right-scale)
ALANDSBANKEN
Data as of June 2020. *Savings Group Finland. ** The Mortgage Society Finland. Source: S&P Global Ratings. RAC-Risk adjusted capital.
Mid-year 2020View entire presentation