Investor Presentaiton
Commitment to a Strong Capital Ratio
Percent
2019
2020
Q4 2021
Pillar 1 requirement
4.5
4.5
4.5
.
Bank of Åland is committed to a strong capital ratio
Capital conservation buffer
2.5
2.5
2.5
•
•
•
The bank will continue to build up its capital base, improve and diversify
earnings, and uphold a sound approach to risk
Conservative pay-out policy is to safeguard the capital position
CET1 capital ratio for a small bank like Bank of Åland is not comparable to
larger banks with IRB methods. Standard & Poor's rating method considers
Bank of Åland to have strong risk-adjusted capitalization
Counter cyclical capital buffer
1.2
0.0
0.0
Systemic risk buffer
1.0
0.0
0.0
Pillar 2 requirement
1.5
1.5
0.6
F
CET1 CAPITAL RATIO REQUIREMENT
Pillar 1 requirement
10.7
8.5
7.6
1.5
1.5
1.5
Capital conservation buffer
Counter cyclical capital buffer
Systemic risk buffer
Pillar 2 requirement
0.2
12.9
13.0
14.2
15.4
15.8
16.5
AT1 capital ratio requirement
1.5
1.5
1.7
2.2
T1 CAPITAL RATIO REQUIREMENT
12.2
10.0
9.3
1.3
2.4
2.4
0.9
1.2
Pillar 1 requirement
2.0
2.0
2.0
Capital conservation buffer
Counter cyclical capital buffer
12.0
12.9
13.0
13.4
14.3
11.8
Systemic risk buffer
Pillar 2 requirement
0.3
T2 capital ratio requirement
2.0
2.0
2.3
TOTAL CAPITAL RATIO REQUIREMENT
14.2
12.0
11.5
2015
2016
2017
2018
2019
2020
T2
CET1
LEVERAGE RATIO REQUIREMENT
3.0
45
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