Bank of Åland Plc: Half-Year Financial Report for the period January - June 2025

Financial Performance - The company reported a net operating profit of EUR 34.7 million for the first half of 2025, marking a 7% increase from EUR 32.5 million in the same period of 2024 [8] - The return on equity (ROE) for the first half of 2025 was 19.2%, up from 18.2% in the previous year [8] - Earnings per share increased by 9% to EUR 1.86 compared to EUR 1.71 in the first half of 2024 [8] Asset Management - The second quarter of 2025 saw a net inflow of new client investments amounting to EUR 328 million, leading to a total of over EUR 11 billion in actively managed assets [2] - The volume of actively managed assets increased by 4% from EUR 10.66 billion in Q1 2025 to EUR 11.06 billion in Q2 2025 [9] Income Sources - Net interest income decreased by 9% to EUR 47.9 million for the first half of 2025, down from EUR 52.7 million in the same period of 2024 [7] - Net commission income rose by 13% to EUR 42.6 million in the first half of 2025, compared to EUR 37.7 million in the previous year [7] Expenses and Impairments - Total expenses increased by 2% to EUR 76.5 million for the first half of 2025, up from EUR 74.9 million in the same period of 2024 [8] - Net impairment losses on financial assets decreased significantly to EUR 0.7 million from EUR 1.7 million, resulting in a loan loss level of 0.04% [8] Market Conditions - The company noted that lower market interest rates have pressured net interest income, but increased commission income has helped offset this decline [3] - Lending activity began to increase cautiously during the quarter, with market interest rates having halved since their peak over a year and a half ago [4]