Investor Presentaiton
Committed to Maintaining a Strong Capital Ratio
The Bank of Åland is committed to a strong capital ratio
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
As of 2022, the standardised 26.5 per cent upward adjustment in the risk exposure
amount, calculated according to the current IRB approach while awaiting an updated
approach, was raised to 45.5 per cent for the retail portfolio
The countercyclical buffer requirement for Swedish exposures is currently 1.0 per cent
but will be raised to 2.0 per cent starting in June 2023. For Finnish exposures, the
requirement remains at 0.0 per cent. In Finland, a systemic risk buffer of 1.0 per cent will
be re-imposed starting on April 1, 2024
On March 29, 2023, the Annual General Meeting (AGM) approved the distribution of a
dividend of EUR 2.05 per share for the financial year 2022 (a regular dividend of EUR 1.60
plus an extra dividend of EUR 0.45), subtracted from the Bank's CET1 capital ratio on
December 31, 2022
CET1 capital ratio for a small bank like the Bank of Åland is not comparable to larger
banks with IRB methods
25
ÀLANDSBANKEN
Capital position, %
16.5
16.5
15.8
15.4
15.2
2.2
2.5
2.4
1.8
1.5
85
1.6
1.6
99
1.6
T2
14.3
AT1
13.4
12.1
12.0
12.4
CET1
2019
2020
2021
2022
Q1 2023
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