Investor Presentaiton
Lending Strategy - Balanced Credit Growth
The Bank of Åland is a relationship Bank with primary focus on customers with
investment needs in the Private Banking and Premium Banking segments
➤ Selective lending to high quality, affluent clients, where asset quality prioritised over
lending volume growth and higher returns
The Bank of Åland is not granting credits as a standalone product to mass market clients
or corporate clients
Balanced growth in lending versus deposits in every business area
22
Residential mortgages or property as collateral in at least half of the lending
Many small loans are preferred to few large
Loan loss level 0.05 % in Q2 2021 and 0.08 % in Q2 2020*
M EUR
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Total Lending
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Q2 2021
Public and non-profit sector
■Companies
■Private individuals
EUR M
60
50
40
30
520°
Stage 3 Credits 2018-2021
0.93
0.85
0.81
%
0.81
1.30
0.89 0.92
1.4
1.2
1.01
تانس
0.69
0.57
0.46
0.49
20
10
Q1 2018
Q2 2018
M EUR
1400
1200
1000
800
600
400
200
0
Q3 2018
0.51 0.52
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
1.0
0.8
0.6
0.4
0.2
0.0
Stage 3 credits, EUR M
Share of Stage 3 credits of total lending, %
Lending to the Companies
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Q2 2021
Other industry and crafts
Construction
Agriculture, forestry and
fishing
Other service operations
■ Hotel and restaurant
operations
■Financial and insurance
operations
■Other real estate operations
■Housing operations
■Wholesale and retail trade
■Shipping
* Model-driven impairment losses on financial assets increased because of the expected effects of the Covid-19 pandemic. During the first quarter of 2020, the Bank
made a group provision of EUR 2.0 M related to heightened risk of losses in the corporate loan portfolio. So far it has not been necessary to utilize these provisions
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