Investor Presentaiton
Group Funding and Liquidity Management
Demand deposits and time deposits from core private customers and their companies are
the main funding sources
Covered Bonds, the main long-term funding source today, were introduced in early 2012
in order to diversify the funding mix and to form a reliable and cost-efficient funding
channel
Loans from central banks have grown from 2% →7% since the start of the pandemic
A balanced funding mix is maintained with a diversity of funding sources
Well-diversified maturity profile with limited exposure to short-term wholesale funding
Group Funding Profile March 31, 2023
Subordinated; 1%
Commercial paper; 4%
Short term banks; 2%
Central banks; 7%
Senior unsecured; 0%
Covered bonds; 14%
Maturing Long-Term Funding* March 31, 2023, EUR M
400
300
200
100
Covered bonds
0
2023
2024
2025
2026
*
Excluding retained covered bonds
30
ÀLANDSBANKEN
Themes 2023
Equity capital (incl. AT1); 5%
Deposits; 67%
•
After the transfer of SEK Covered Bonds to Borgo, the share of customer deposits is high, around
two thirds of the funding profile
In adverse market conditions 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
Effective on January 1, 2022, the Finnish FSA has given the Bank of Åland a formal MREL
requirement under European Union regulations. The requirement consists 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
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