Slides
Page 1
Bank of Åland Plc Investor presentation H1 2026 ÀLANDSBANKEN
Page 2
T able of Contents 2 7. CBA Cover Asset Pool 6. Liquidity and Funding 5. Asset Quality 4. Capital 3. Performance 2. Strategy and Market Position 1. Bank of Åland Plc in Brief 33 30 27 21 14 7 3 8. Finnish and Swedish Economy 37 9. Sustainability 41 10. Appendix 47
Page 3
1. Bank of Åland Plc in Brief 3
Page 4
Bank of Åland Plc in Brief Bank of Åland Plc • Established in 1919 on the Åland Islands, listed since 1942 on NASDAQ OMX Helsinki • A Finnish bank targeting high net worth and affluent individuals • Operations on the Åland Islands, Finnish mainland and Sweden • T op-ranked in customer loyalty (Finland’s best Private Banking actor 2021-2024 in Kantar Prospera’s annual survey) • A long-standing tradition of stability and low credit losses The Vision • Create value for ambitious individuals and companies that appreciate relations: • Private Banking since 1982 • IT services by Crosskey Banking Solutions since 2004 • Premium Banking since 2004 • Partnership Banking since 2016 • Delivering a large bank’s range of services with a small bank’s thoughtfulness and good sense • Bank’s customer surveys show that customers continue to appreciate the Bank’s personalized service, strong ethical standards, high investment performance and sustainability work Covered Bonds • The Bank of Åland has been active in the covered bond market since 2012 and aims to be in the euro covered bond market on a regular basis • The CBA Cover Asset pool consists of 100 % Finnish and the Åland Island’s residential mortgages • Clear concentration to the growth centres and the wealthiest parts of Finland • Aaa rating from Moody’s on CBA Covered Bond Program 4
Page 5
Financial Scorecard June 30, 2026 Aaa Rating from Moody’s on Covered Bonds Loan Loss Level -0.01 % CET1 Capital Ratio 12.8 % Liquidity and Funding • Loan/deposit ratio of 105 % • Liquidity reserve at 22 % of total assets • LCR at 155 % • NSFR at 118 % • Aaa rating from Moody’s on Covered Bonds Risk Management • Long history of low loan loss levels. Loan loss level of -0.01 % in H1 2026 (0.04 % in H1 2025) • No trading positions or complex financial instruments • Strict limits on exposures to financial institutions. Bulk of the exposure is to highly rated Nordic entities Profitability • Net operating profit EUR 29.8 M in H1 2026 (EUR 34.7 M in H1 2025) • ROE 15.2 % in H1 2026 (19.2 % in H1 2025) • Unchanged future outlook: The Bank of Åland expects its return on equity after taxes (ROE) to continue to exceed its long-term financial target of 15 per cent during 2026 Capital • Very strong capital position • IRB approach used in Finland, standardised approach used in Sweden • Ålandsbanken paid a dividend of EUR 2.75 per share for 2025 and a semi-annual dividend of EUR 0.75 per share for H1 2026 • Capital requirements applicable are CET1 capital ratio 9.1%, Tier 1 capital ratio 10.8 % and Total capital ratio 13.0 % • Bank of Åland has an ample capital surplus: CET1 capital ratio +3.8 pp, Tier 1 capital ratio +3.8 pp and Total capital ratio +3.2 pp Return on Equity 15.2 % 5
Page 6
Assigned Ratings by Moody’s ❖ Rating Action: On April 21, 2026, Moody’s Ratings upgraded Bank of Åland’s Baseline Credit Assessment • The upgrade of the BCA to baa1 from baa2, reflects Bank of Åland’s stronger and more diversified earnings, stable asset quality supported by a granular loan book, and robust capital buffers above regulatory requirements • As part of the review, Moody’s also assessed the impact of the introduction of full depositor preference in the EU under the CMDI legislative package adopted in March 2026 • This resulted in upgrades of the long- and short-term bank deposit ratings to A2 from A3 and to P-1 from P-2, respectively. In addition, the long-term Counterparty Risk Rating was upgraded to A1 from A2, and the Counterparty Risk Assessment was upgraded to A1(cr) from A2(cr) • The stable outlook for Alandsbanken reflects Moody’s expectations of broadly unchanged loss severity for long-term deposits and issuer liabilities, as well as a stable financial profile over the outlook horizon 6 Category Moody’s Rating Outlook Stable Issuer Rating Baa1/P-2 Counterparty Risk Rating A1/P-1 Bank Deposits A2/P-1 Baseline Credit Assessment baa1 Adjusted Baseline Credit Assessment baa1 Counterparty Risk Assessment A1(cr)/P-1(cr) Covered Bonds Rating Aaa Credit Strengths • Strong asset quality underpinned by high share of low-risk mortgages • Diversified and improving earnings from banking, investment and wealth management services • Ample liquidity to meet potential funding volatility
Page 7
7 7 2. Strategy and Market Position
Page 8
Three Markets – Two Strategies The Åland Islands • 2 offices, market share > 50 % • Full product range offered • The Bank for everyone Finland • 6 offices in affluent parts of Finland, market share > 1 % • Full product range offered but “bread and butter” services only as a complement to Private Banking and Premium Banking service offerings • T argeted segment: High Net Worth/ Affluent Individuals and their companies Sweden • 3 offices in Sweden’s largest cities, market share < 1 % • Full product range offered but “bread and butter” services only as a complement to Private Banking and Premium Banking service offerings • T argeted segment: High Net Worth/ Affluent Individuals and their companies Malmö Gothenburg Stockholm Åland Islands Helsinki Turku Parainen Tampere Vaasa Oulu 8
Page 9
2019 2020 2021 2022 2023 2024 2025 #3 #2 #1 #1 #1 #1 #2 Customer Satisfaction Position (Prospera) Private Banking Finland 9
Page 10
Bank of Åland History of Strategic Decisions Foundation Listing Expansion to Finnish mainland IT company Crosskey Ab Ltd Expansion to Sweden Fintech Dreams Extended partnerships New Swedish mortgage bank Borgo with partners From a local bank... Supporting the development of the Åland Islands – a poor fishing and agrarian community ...to a Nordic banking group With a wide product range and personal service targeting High Net Worth Individuals 1919 1942 1994 2004 2009 2016 2019 10
Page 11
Some of Our Collaborative Partnerships 11 Borgo • Borgo is a mortgage institution offering mortgages distributed by ICA Banken, Ikano, Söderberg & Partners, Sparbanken Syd, the Bank of Åland and Lån & Spar • The Bank of Åland supply banking services as well as a unique platform covering all of Borgo’s operations • Our service delivery to Borgo consists of mortgage service, payments, customer and account management, finance, treasury, as well as regulatory reporting Doconomy • Doconomy is a Swedish climate fintech company that provides technology and data solutions to increase climate awareness • They are providing digital solutions to help individuals and companies to reduce their environmental footprint • Doconomy partners with banks and financial institutions by offering tools to encourage more sustainable choices Plusius • Plusius is a Swedish fintech company offering payments solutions for businesses involved in global e-commerce • They automate and simplify payment flows, such as collecting and splitting payments, managing foreign currency, and handling duties and taxes for international shipments • Plusius operate in the EU/EEA region and focus on cross-border companies doing business in these countries
Page 12
The Åland Index 12 • In 2016 the Bank of Åland and Doconomy launched the world’s first credit card able to measure how your consumption affects your carbon footprint • The Åland Index estimates the environmental impact of your card purchases to encourage more sustainable choices • T oday the Åland Index is a global standard and signed by 100+ banks with approximately 700 million users in more than 30 countries worldwide
Page 13
Bank of Åland Group Legal and Ownership Structures Bank of Åland Plc (Ålandsbanken Abp) Ålandsbanken Funds Ltd (Ålandsbanken Fondbolag Ab) 100 % Crosskey Banking Solutions Ab Ltd 100 % 13 10 Largest Shareholders as of June 30, 2026 Share of capital Share of votes Wiklöf Anders with companies 21.59 % 29.76 % Skandinaviska Enskilda Banken AB (Nominee- registered holders) 6.11 % 9.22 % Nordea Bank Abp (Nominee-registered holders) 5.64 % 0.65 % Alandia Försäkring Abp 5.24 % 10.94 % Pensionsförsäkringsaktiebolaget Veritas 2.53 % 1.98 % Chilla Capital 1.80 % 4.01 % Lundqvist Ben Hugo 1.76 % 3.92 % Oy Etra Invest Oy 1.46 % 0.16 % Svenska Litteratursällskapet i Finland r.f. 1.36 % 3.02 % Citibank Europe PLC (Nominee-registered holders) 1.16 % 0.23 % Approximately 17,000 shareholders in total, half of them from the Åland Islands
Page 14
14 3 . Performance
Page 15
Long-T erm Financial T argets Profitability Capitalization Payout ratio Return on equity after taxes (ROE) shall exceed 15 per cent over time The Common Equity Tier 1 capital ratio shall exceed the FIN-FSA ’s minimum requirement by 1.75-3.0 percentage points The payout ratio shall be 60 per cent of shareholders' interest in profit or higher, provided that capital adequacy does not fall below the target 15 The current long-term targets were updated by the Board of Directors in October 2021 to better reflect the strategy and business model as well as the experienced growth. The previous targets had been in effect since 2013
Page 16
H1 2026 in Summary Volumes H1, EUR M Net operating profit H1, EUR M • Strong underlying business momentum drove improved results across core segments and record actively managed assets of EUR 12.4 billion, supported by solid net inflows and the successful launch of Crosskey's solution for the POP Bank Group. Earnings were partially offset by a EUR 2.5 million negative contribution from an associated company • The Ålandsbanken Global Aktie fund secured a prestigious agreement with Sweden’s premium pension platform, following a highly competitive procurement covering approximately SEK 200 billion in assets • Crosskey signed an agreement with Handelsbanken to assume IT responsibility for its remaining Finnish operations and successfully launched a comprehensive multi-bank solution for the POP Bank Group in Finland • Moody’s has upgraded the Bank of Åland’s long-term deposit rating to A2 from A3 and raised the short-term deposit rating to P-1 from P-2, while revising the outlook to stable. The upgrades reflect the Bank’s strong and diversified earnings, stable asset quality and robust capital buffers above regulatory requirements. The long-term issuer rating remains at Baa1 with a stable outlook, and the short-term issuer rating at P-2. The ratings have been influenced by the EU’s Crisis Management and Deposit Insurance (CMDI) legislative package adopted in March 2026 16 10 343 3 475 3 530 2 952 11 057 3 578 3 594 3 335 12 352 3 612 3 788 3 701 Actively managed assets Deposits Lending Managed mortgage loans 2024 2025 2026 +1 % +5 % +11 % 109.1 74.9 1.7 32.5 111.9 76.5 0.7 34.7 109.8 80.2 -0.3 29.8 Income Expenses Loan losses Net operating profit 2024 2025 2026 +5 % -14 % +12 % -2 %
Page 17
Income and Expenses H1 2024-2026 Income, EUR M Expenses, EUR M 17 52.7 37.7 18.1 0.7 47.9 42.6 17.4 4.0 47.2 45.1 17.3 0.2 Net interest income Net commission income IT income Other income 2024 2025 2026 +6 % -1 % 44.4 12.2 11.8 6.5 48.1 12.4 10.0 6.0 50.6 12.9 10.2 6.5 Staff IT Other Depreciation/ amortization 2024 2025 2026 +5 % +4 % +2 % +9 % -1 %
Page 18
H1 2026 Results Results • Net operating profit EUR 29.8 M in H1 2026 (EUR 34.7 M in H1 2025) • ROE 15.2 % in H1 2026 (19.2 % in H1 2025) • Earnings per share, EUR 1.54 in H1 2026 (EUR 1.86 in H1 2025) Future Outlook • The Bank of Åland expects its return on equity after taxes (ROE) to continue to exceed its long-term financial target of 15 per cent during 2026 • Dependent on the performance of the fixed income and stock markets • Some uncertainty about the Bank’s current forecast due to concerns about economic development in a number of important markets ROE H1, % Net Operating Profit H1, EUR M 18 10.1 14.4 13.4 12.8 18.2 19.2 15.2 2020 2021 2022 2023 2024 2025 2026 Financial target 16.7 24.4 24.3 22.5 32.5 34.7 29.8 2020 2021 2022 2023 2024 2025 2026
Page 19
Share Performance Market Price per Share and Market Capitalisation, EUR M Dividend per Share, EUR Dividend Payout Ratio, % Earnings per Share, EUR Equity Capital per Share, EUR 19 *Moving 12-month average to end of report period (30.06.2026) 330.3 498.6 561.3 475.8 520.9 701.0 681.0 - 10 20 30 40 50 2020 2021 2022 2023 2024 2025 30.06.2026 Market capitalisation Market price per share, series A Market price per share, series B 50 61 66 76 71 77 18 19 8 10 2020 2021 2022 2023 2024 2025 Dividend payout ratio Extra dividend payout ratio Financial target 1.00 1.55 1.60 2.40 2.40 2.75 0.45 0.45 0.25 0.35 1.00 2.00 2.05 2.65 2.75 2.75 2.02 2.55 2.37 3.18 3.41 3.55 3.23 18.76 19.39 18.85 19.98 19.95 21.16 19.64
Page 20
ROE Comparison Against Nordic Peers Return on Equity (ROE), % 20 15.7 15.6 15.2 14.3 14.3 14.0 13.6 13.2 Nordea Aktia Bank of Aland DNB SEB Danske Bank Swedbank Handelsbanken
Page 21
21 4. Capital
Page 22
Committed to Maintaining a Strong Capital Ratio • The Bank of Åland is committed to maintaining a strong capital ratio. The Bank shall maintain a CET1 ratio 1.75-3.0 percentage points above the FIN-FSA minimum and distribute at least 60 % of annual profits as dividends, provided capital adequacy remains above target • From 2026 and onwards, a half-year dividend will be disbursed, capped at 50 % of profits for the first six months of the financial year. Any remaining dividend will be disbursed following the AGM • Following the implementation of CRR3, significant updates have been made in the Bank’s IRB approach, increasing RWA and capital requirements. Additional conditions and mark-ups imposed by the FIN-FSA further raise these requirements • CET1 capital ratio for a small bank like the Bank of Åland is not comparable to larger banks with complete and more efficient IRB methods • As of Q4 2024, the Financial Stability Authority repealed the Bank of Åland’s MREL requirement, leaving the Bank with no current MREL obligations 22 2020 2021 2022 2023 2024 2025 30.06.2026 Risk-Weighted Exposure Amount, MEUR 1 671 1 976 1 938 1 774 1 643 1 888 1 892 Total Assets, MEUR 6 035 6 635 5 898 5 342 4 925 5 173 5 130 RWA/Total Assets, % 27.7 29.8 32.9 33.2 33.4 36.5 36.9 RWA and Balance Sheet Strong Profitability and Capital Structure 8.5 7.6 8.1 8.5 9.3 9.1 9.1 5.8 4.5 3.9 5.2 5.1 3.6 3.8 2020 2021 2022 2023 2024 2025 30.06.2026 CET1 requirement Buffer to req RoE % 12.8 15.2 14.3 12.1 12.1 13.7 14.5 12.7 11.6 14.0 12.8 17.2 17.9 17.8
Page 23
4.50% 0.60% 2.50% 0.50% 1.00% 3.80% 12.80% CET1 requirement Headroom to CET1 requirement CET1 capital ratio 30.06.2026 Pillar I requirement Pillar II requirement CCoB CCyB SyRB Buffers to Requirements and T riggers 30.06.2026 Capital position Requirement Excess/(Deficit) €m % RWA €m % RWA €m % RWA CET1 capital 243.1 12.8% 172.2 9.1% +70.9 3.8% Additional Tier 1 31.6 1.7% 32.2 1.7% (0.6) (0.0%) Tier 1 capital 274.7 14.5% 204.3 10.8% +70.4 3.8% Tier 2 31.5 1.7% 41.6 2.2% (10.1) (0.5%) Total capital 306.2 16.2% 246.0 13.0% +60.2 3.2% • CET1 buffer vs requirement stands at 3.8 %, and 3.2 % on a T otal Capital basis • The Bank intends to maintain a buffer of 175-300 bps over the CET1 requirement Buffer to CET1 Requirement, % 23 9.10% 70.9 MEUR
Page 24
Bank of Åland’s Capital Position and Leverage Ratio Capital Ratios, %Capital Base, EUR M Leverage Ratio, % 24 238.5 239.0 233.3 242.8 237.7 239.2 243.1 0.0 29.4 29.4 29.4 29.4 61.0 31.637.0 36.4 31.5 31.5 30.5 32.3 31.5 CET1 AT1 T2 306.2 275.5 304.8 294.2 303.7 297.6 332.5 14.3 12.1 12.1 13.7 14.5 12.7 12.8 0.0 1.5 1.5 1.6 1.8 3.2 1.7 2.2 1.8 1.6 1.8 1.8 1.7 1.7 CET1 AT1 T2 16.216.5 15.4 15.2 17.1 18.1 17.6 3.0 3.0 3.0 3.0 3.0 3.0 4.2 4.3 4.3 5.0 5.3 5.7 5.2 Requirement Bank of Aland
Page 25
Bank of Åland’s Capital Position and Requirements Tier 1, %Common Equity Tier 1, % T otal Capital, % 25 8.5 7.6 8.1 8.5 9.3 9.1 9.1 14.3 12.1 12.1 13.7 14.5 12.7 12.8 Requirement Bank of Aland 10.0 9.3 9.8 10.2 11.0 10.8 10.8 14.3 13.6 13.6 15.3 16.3 15.9 14.5 Requirement Bank of Aland 12.0 11.5 12.0 12.5 13.3 13.0 13.0 16.5 15.4 15.2 17.1 18.1 17.6 16.2 Requirement Bank of Aland
Page 26
Management Buffer above the FSA Minimum Capital Requirements H1 2020-2026, % 26 4.7 4.5 6.0 5.1 5.8 5.8 1.8 4.4 4.7 4.9 1.3 2.9 3.6 3.7 1.5 4.3 4.7 4.7 2.4 3.1 3.6 3.7 2.1 3.2 3.8 3.8 2.2 Total capital ratio T1 ratio CET1 ratio Leverage ratio 2020 2021 2022 2023 2024 2025 2026
Page 27
5. Asset Quality 27 27
Page 28
Lending Strategy Focused on Balanced Credit Growth Stage 3 Credits 2020-2026 • The Bank of Åland is a relationship-driven bank, primarily serving Private Banking and Premium Banking clients through investment and wealth management services ➢ Selective lending to high quality, affluent clients, prioritising asset quality over lending volume growth and yield enhancement • Lending is offered as part of a broader client relationship and is not provided as a standalone product to mass-market or corporate clients • Balanced growth in lending versus deposits in every business area • Residential mortgages or property as collateral in at least half of the lending • Many small loans are preferred to a few large • Loan loss level of -0.01 % in H1 2026 (0.04 % H1 2025) 28 Lending to the Public by Stage, % Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Total provision ratio, lending to the public 0.59 0.48 0.35 0.35 0.24 0.23 0.24 0.24 0.21 Provision ratio, Stage 1, lending to the public 0.02 0.02 0.02 0.02 0.03 0.03 0.03 0.03 0.03 Provision ratio, Stage 2, lending to the public 0.62 0.57 0.52 0.42 0.51 0.40 0.40 0.29 0.35 Provision ratio, Stage 3, lending to the public 28.68 21.39 18.11 15.63 10.61 10.77 11.75 11.07 11.51 Share of lending to the public in Stage 3 1.89 2.01 1.63 1.88 1.71 1.71 1.58 1.76 1.41 38.9 59.0 69.8 62.6 58.4 59.7 53.3 0.89 1.23 1.61 1.61 1.63 1.58 1.41 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 0 10 20 30 40 50 60 70 80 % EUR M Stage 3 credits, EUR M Share of Stage 3 credits of total lending, %
Page 29
Lending to the Public by Purpose Lending to the Public, EUR M Lending to Companies (predominantly SMEs), EUR M 29 Lending to Private Individuals, EUR M* * Bank of Åland’s Swedish home mortgages along with new mortgages built up via partnerships (2020-2021) were transferred to Borgo in three rounds (2022-2024), totalling SEK 19.2bn 0 1 000 2 000 3 000 4 000 5 000 6 000 Private individuals Companies Public and non-profit sector - 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Business operations Other household purposes Securities and other investments Home loans - 200 400 600 800 1 000 1 200 Other service activities Accomodation and food service activities Trade Transport Construction Manufacturing Activities in the area of law, economics, science and technology Housing associations Financial and insurance operations Housing operations
Page 30
30 6. Liquidity and Funding
Page 31
Group Funding and Liquidity Management Maturing Long-T erm Funding* June30, 2026, EUR M Group Funding Profile June 30, 2026 Highlights 2026 • Certificates of deposit actively used to manage deposit volatility • No MREL-driven need for unsecured funding; however, SEK 500 M of senior preferred debt was issued amid favourable market conditions • Unused cover pool capacity, supporting future pool expansion and lending growth • Retained covered bonds available as contingency liquidity • Demand deposits and time deposits from core private customers and their companies are the main funding sources • Covered Bonds, the main long-term wholesale funding source today, were introduced in early 2012 in order to diversify the funding mix and to forma reliable and cost-efficient funding channel • A balanced funding mix is maintained with a diversity of funding sources • Well-diversified maturity profile with limited exposure to short-term wholesale funding * Including retained covered bonds EUR 250 M 31 0 100 200 300 400 500 600 2026 2027 2028 2029 2030 2031 AT1 Call Date T2 Call Date Covered bonds* Deposits; 73% Covered bonds; 12% Senior unsecured; 1% Short term banks; 3% Commercial paper; 4% Equity capital (incl. AT1); 7%
Page 32
Liquidity Reserve Liquidity reserve 22 % of total assets LCR 155 % NSFR 118 % Liquidity portfolio EUR 1,016 M Key metrics Composition of the Liquidity Reserve June 30, 2026 • Very high quality in liquidity reserves • The most liquid and tradable assets • LCR and NSFR targets reached • Coordinated cash pools between Finland and Sweden • Conservative approach to market risk within liquidity reserves • Assets with short duration • Well diversified counterparty risk profile 32 23 % 17 %53 % 4 % 3 % Cash, central banks and deposits Governments and official institutions Covered bonds Financials Accounts with other banks
Page 33
33 7. CBA Cover Asset Pool
Page 34
• One Cover Pool as of April 22, 2024. All new issuances are secured by the CBA Cover Asset Pool, which consists of 100 % Finnish and the Åland Island’s residential mortgages • AAA rating since inaugural issue in 2012. Previously rated by S&P . Aaa- rated by Moody’s since April 2024 • Moody's upgrade of the CB Anchor to Aa3 in April 2026 increased the TPI leeway from two to three notches, providing additional rating headroom for the covered bond programme • The Bank of Åland is committed to keeping the CBA Covered Bond over- collateralization clearly over the legislative minimum of 2 %. In excess of 2 %, the excess collateral must also cover the estimated write-down costs related to the Covered Bonds • Under the CBA, the Bank of Åland is required to ensure that the CBA Cover Asset Pool continuously contains certain types of liquid funds in an amount which covers the maximum net outflow relating to CBA Covered Bonds over the coming 180 days’ period • Covered bonds issued under the CBA comply with the European Covered Bond (Premium) standard CBA Cover Asset Pool Characteristics 34 Key Characteristics of the CBA Cover Asset Pool June 30, 2026 Prime Finnish residential mortgages, % 100.0 Total nominal amount, EUR M 1,040.9 Weighted arithmetic average LTV, unindexed, % 53.3 Weighted average life, years 8.5 Weighted average loan seasoning, years 6.7 Number of unique loans 10,463 Number of borrowers 9,273 Average loan size, EUR k 99.0 Interest rate base, % 96.6 floating / 3.4 fixed Impaired loans, % 0.0 Repayment type, % 10.9 interest only / 89.1 amortizing Over-collateralization, % actual 22.5/ minimum committed 2.5
Page 35
• Clear concentration to the growth centres, the wealthiest parts of Finland Geographical Distribution of the CBA Cover Asset Pool 35 Tampere 11 % Vaasa 4 % Turku 14% Helsinki 46 % Ålands Islands 24 % 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Helsinki region, Southern Finland Aland Islands Turku region, Western Finland Tampere region, Pirkanmaa Vaasa region, Ostrobothnia Other
Page 36
CBA Cover Asset Pool Details 36 0% 5% 10% 15% 20% 25% 30% 0-40 % 40-50 % 50-60 % 60-70 % 70+ % LTV , Unindexed 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2026 2027 2028 2029 2030 2031 2032 2033 2034- Interest Rate Reset 0% 10% 20% 30% 40% 50% 60% 0-1 Y 1-2 Y 2-3 Y 3-5 Y 5+ Y Seasoning 99.0 % 1.0 % Cover Pool Composition Residential Assets Substitute Assets
Page 37
8. Finnish and Swedish Economy 37
Page 38
Finnish Economy Source: (1) Bank of Finland, (2) Tilastokeskus, (3) ÅSUB38 Interim forecast, % 2025 2026 (f) 2027 (f) 2028 (f) Annual GDP growth 0.2 0.8 1.6 1.7 Unemployment rate 9.7 10.4 9.9 9.0 Employment rate (20-64 yo) 76.0 75.5 75.6 75.7 Inflation, HICP 1.8 2.4 1.6 1.8 Core inflation, HICP excl energy 2.4 1.7 2.2 1.8 • The Finnish economy is on a gradually strengthening path, with recent data pointing to improving momentum despite elevated geopolitical uncertainty. Improved economic activity is supported by industrial exports and improved business activity • Private investment will rise above 3% in 2026 and remain strong in 2027-2028. Export growth exceeded 3% in 2025 and expected to average 2.5% during the forecast period. To date, US import tariffs do not appear to have significantly impacted exports • Household purchasing power is benefiting from steady wage growth and easing financing conditions. As confidence improves, consumption is expected to play an increasingly important role in supporting growth. Labor market conditions remain challenging, but unemployment is expected to gradually decline as growth strengthens • Ongoing fiscal consolidation as part of the government's commitment to restoring fiscal discipline means public consumption will remain subdued through next year. Eurozone membership and strong sovereign credit standing provide stable institutional backbone. The banking sector is well-capitalized and stable, and robust regulation and supervision maintain resilience of institutions and borrowers • Inflation has risen moderately through 2026, partly reflecting energy-driven price pressures. Underlying price dynamics remain manageable, and the environment is broadly supportive of continued growth • The housing market has undergone a prolonged correction, but strong mortgage standards have maintained the resilience of borrowers. Regulatory measures including the recent easing of the housing loan cap combined with multi-year pent-up demand are expected to support normalization • Compared to the mainland, the Åland Islands continue to demonstrate stronger economic fundamentals via lower unemployment and a resilient business climate Consumption 2024 2025 2026 (f) 2027 (f) 2028 (f) Private consumption (change in vol, %) -0.2 -0.3 0.8 1.5 1.6 Public consumption (change in vol, %) 2.0 -0.2 -0.3 0.1 0.9 Households’ disposable income (change, %) 2.9 1.0 3.4 3.1 3.0 Households’ real disposable income (change, %) 1.8 -0.1 0.9 1.4 1.0 Household savings ratio (%) 3.9 4.1 4.3 4.2 3.6 Source: Ministry of Finance Jun, 2026, Bank of Finland Jun, 2026 Source: Ministry of Finance Jun, 2026
Page 39
80 100 120 140 160 180 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Residential Property Prices Denmark Finland Norway Sweden Finnish Housing Market Source: Eurostat 39 2015=100 Source: European Commission, Eurostat Source: European Commission, Eurostat 105 110 115 120 125 130 135 140 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Household indebtedness, % 80 90 100 110 120 130 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Development of wages and salaries Index of wage and salary earnings Index of real wage and salary earnings Residential property prices 2015=100 Source: (1) Eurostat, (2) Tilastokeskus Source:Tilastokeskus Source:Tilastokeskus 0 1 2 3 4 5 6 7 8 Residential Construction, % of GDP Denmark Finland Sweden EU27
Page 40
• The Swedish economy is in a recovery phase. Despite elevated geopolitical uncertainty, the economy is showing signs of resilience. Domestic demand, supported by rising disposable incomes and tax cuts boosting household purchasing power, is supporting a broadening recovery across the economy with GDP growth expected to pick up during the second half of 2026 • Household consumption has developed stronger than expected. Public consumption has been moderate but positive throughout and solid public spending will continue to support growth in the coming years • Unemployment has remained stubbornly elevated since mid-2025, reflecting structural labor market challenges, although improving economic activity is expected to support a gradual recovery in labor market conditions • Inflation has fallen faster than expected, remaining well below the Riksbank’s 2% target due to subdued underlying price pressures and favorable policy measures. Inflation remains anchored for now but as economic momentum improves inflation is expected to gradually pick up from next year • The Riksbank has maintained a supportive monetary policy stance, with the policy rate at 1.75%. Combined with easing financing conditions, this provides a constructive backdrop for continued economic expansion and investment activity • The housing market recovery is well underway, with house prices rising 2.9% year- on-year in June 2026. Easing financing conditions and recent regulatory measures including relaxed borrowing limits have further supported household confidence • While the government's borrowing requirement has increased modestly to fund near-term fiscal support measures, public debt remains among the lowest in the EU, supporting Sweden's position as one of Europe's most creditworthy sovereigns Swedish Economy Interim forecast, % 2025 2026 (f) 2027 (f) 2028 (f) Annual GDP growth 1.5 2.2 2.3 1.4 Unemployment rate 8.8 8.6 8.2 7.8 Inflation, KPIF 2.6 1.1 1.7 2.8 Core inflation, KPIF excl energy 2.8 0.7 2.0 2.9 Consumption 2025 2026 (f) 2027 (f) 2028 (f) Private consumption (change in vol, %) 1.9 2.6 2.1 1.4 Public consumption (change in vol, %) 1.0 1.5 2.6 1.3 Source: (1) Riksbanken, (2) SCB, (3) NIER 40 Source: Riksbanken Jun, 2026 Source: Riksbanken Jun, 2026
Page 41
9. Sustainability 41
Page 42
Environmental Responsibility Given our presence in and around the Baltic Sea, environmental and climate issues ara a natural part of our operations. Our ambition is to raise awareness and to become a net-zero emissions bank by 2050. Sustainability Strategy Our Four Areas of Sustainability Responsible Investments We develop and supply products that combine strong long-term returns with resource-efficient solutions and contribute to the transition to a more sustainable society. Through active ownership, we work to encourage more companies to adopt science- based climate targets. Responsible Lending We want to contribute to the green transition by offering sustainable financing solutions for individuals and their businesses. We invite our customers to take part in this effort by actively supporting our climate ambition. Social Responsibility We are actively working towards a fairer and more inclusive society where everyone is treated equally. Through responsible advice and long-term, sustainable financing solutions, we strengthen our customers’ financial well-being, whilst working every day to prevent and combat financial crime. 42
Page 43
43 Climate T argets In 2021 we established the Group’s climate targets, which support the Paris Agreement Reducing CO₂e-emissions Net-zero emissions by 2050 Climate-neutral by 2035 43
Page 44
Our Global Commitments UNPRI (The UN Principles for Responsible Investment) 2010 UNEP FI (The UN Principles for Responsible Banking) 2019 Climate Action 100+ 2018 Science Based T argets initiative (SBTi) 2023 44
Page 45
T o date we have supported environmental work with approximately 6 000 000 € 45 Some of the funding recipients through the Baltic Sea Project:
Page 46
Green Finance Framework 46 • The Bank of Åland Green Finance Framework was initially published in September 2021 and updated in August 2024 • The Framework is based on the Green Bond Principles (GBP), published by ICMA • The Bank of Åland has received a Second Opinion from Moody’s Investors Service on the Bank’s August 2024 Green Finance Framework. The Green Finance Framework was assigned the Sustainability Quality Score SQS2 (Very Good) • Eligible green project types are Renewable Energy, Green Buildings and Clean Transportation • An impact report is published annually and on a timely basis in case of material changes • The Bank of Åland has one outstanding green bond in the form of a Green SEK Tier 2 instrument amounting to SEK 150 M
Page 47
10. Appendix 47
Page 48
Contact Details Peter Wiklöf, CEO peter.wiklof@alandsbanken.fi +358 40 512 7505 Jan-Gunnar Eurell, CFO jan-gunnar.eurell@alandsbanken.se +46 70 589 1209 Ulf Bäckström, Head of Group Treasury ulf.backstrom@alandsbanken.fi +358 40 729 7134 48
Page 49
Key Figures H1 2026 H1 2025 2025 2024 2023 2022 2021 2020 ROE, % 15.2 19.2 17.8 17.9 17.2 12.8 14.0 11.6 Expense/ income ratio, % 73 68 69 68 68 72 69 70 Loan loss level, % -0.01 0.04 0.04 0.10 0.05 0.14 0.12 0.11 CET1 capital ratio, % 12.8 12.8 12.7 14.5 13.7 12.1 12.1 14.3 Total capital ratio, % 16.2 16.1 17.6 18.1 17.1 15.2 15.4 16.5 Earnings per share, EUR 1.54 1.86 3.55 3.41 3.18 2.37 2.55 2.02 Equity capital per share, EUR 19.64 19.30 21.16 19.95 19.98 18.85 19.39 18.76 Lending to the public, EUR M 3,788 3,594 3,762 3,576 3,859 4,303 4,788 4,378 Deposits from the public, EUR M 3,612 3,578 3,760 3,521 3,595 4,182 4,070 3,605 Equity capital, EUR M 334 326 386 336 335 317 332 292 Risk exposure amount, EUR M 1,892 1,799 1,888 1,643 1,774 1,938 1,976 1,671 FTE 1,021 1,014 1,013 977 906 854 815 751 49
Page 50
Income Statement 50 EUR M H1 2026 H1 2025 2025 2024 2023 2022 2021 2020 Net interest income 47.2 47.9 95.2 104.1 99.7 68.2 62.2 58.9 Net commission income 45.1 42.6 85.7 76.4 77.0 78.4 79.0 66.3 IT income 17.3 17.4 33.8 35.1 28.6 23.5 24.4 21.9 Other income 0.2 4.0 5.6 0.7 -3.0 14.0 10.4 3.0 Total income 109.8 111.9 220.3 216.4 202.3 184.1 176.0 150.1 Staff costs -50.6 -48.1 -95.7 -87.9 -81.3 -75.5 -71.1 -62.9 Other expenses -29.5 -28.4 -56.0 -59.4 -57.0 -56.3 -50.8 -42.6 Total expenses -80.2 -76.5 -151.7 -147.3 -138.4 -131.8 -121.9 -105.6 Profit before impairment losses 29.6 35.4 68.6 69.0 63.9 52.3 54.1 44.6 Net impairment loss on financial assets 0.3 -0.7 -1.4 -4.0 -2.2 -6.2 -4.9 -4.9 Net operating profit 29.8 34.7 67.2 65.0 61.7 46.1 49.2 39.7 Income taxes -6.1 -6.1 -12.6 -12.8 -13.1 -9.3 -9.3 -8.2 Net profit for the period 23.7 28.6 54.6 52.3 48.7 36.8 39.9 31.5 Attributable to: Non-controlling interests 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Shareholders in Bank of Åland Plc 23.7 28.5 54.6 52.3 48.7 36.8 39.8 31.5
Page 51
Balance Sheet Bank of Åland Group Jun 30, 2026 Dec 31, 2025 Jun 30, 2026 Dec 31, 2025 Assets Liabilities Cash and balances with central banks 174 215 Liabilities to credit institutions and central banks 141 154 Debt securities 785 882 Deposits from the public 3,612 3,760 Lending to credit institutions 119 67 Debt securities issued 843 691 Lending to the public 3,788 3,762 Derivative instruments 12 7 Shares and participations 36 39 Current tax liabilities 0 0 Participations in associated companies 28 29 Deferred tax liabilities 34 33 Derivative instruments 22 26 Other liabilities 67 53 Intangible assets 24 24 Provisions 1 1 Tangible assets 46 48 Accrued expenses and prepaid income 55 54 Investment properties 0 0 Subordinated liabilities 31 32 Current tax assets 6 5 Total liabilities 4,796 4,787 Deferred tax assets 9 7 Other assets 53 31 Equity capital and non-controlling interests Accrued income and prepayments 40 39 Share capital 42 42 Total assets 5,130 5,173 Share premium account 33 33 Reserve fund 25 25 Fair value reserve -20 -16 Unrestricted equity capital fund 33 33 Retained earnings 190 209 Shareholders’ portion of equity capital 303 325 Non-controlling interests' portion of equity capital 0 0 Additional Tier 1 capital holders 32 61 Total equity capital 334 386 Total liabilities and equity capital 5,130 5,173 51
Page 52
Outstanding Long-T erm Funding* June 30, 2026 CBA Cover Asset Pool ISIN Nominal Amt Settlement date Maturity date Coupon Currency EUR eq amt Time to maturity FI4000566351 300,000,000 22.01.2024 22.07.2027 3.000 EUR 300,000,000 0.98 FI4000598958 300,000,000 17.02.2026 17.04.2031 2.750 EUR 300,000,000 4.72 600,000,000 2.85 * Excluding retained covered bonds 52
Page 53
Sustainability Information 53 Group, own emissions Q2 2026 Q1 2026 % Q2 2025 % Jan-Jun 2026 Jan-Jun 2025 % Greenhouse gases, tonnes of CO₂e Emissions from owned and controlled resources 1 1 -4 1 25 2 2 6 Total Scope 1 1 1 -4 1 25 2 2 6 Energy-related emissions 11 15 -27 9 29 26 27 -2 of which from electricity according to market-based method Alternatively, emissions from electricity according to location-based method subtracted from Nordic Average Mix 22 22 0 22 -2 42 44 -5 Total Scope 2 11 15 -27 9 29 26 27 -2 Purchased goods and services 571 629 -9 636 -10 1,200 3,277 -63 Capital goods 16 13 25 11 42 28 17 69 Fuel and energy-related activities 2 3 -29 2 27 5 6 -3 Transport and distribution 78 89 -12 72 9 167 129 30 Waste generated by own operations 0 0 51 1 -65 1 2 -69 Business travel 221 163 35 203 9 384 381 1 Leased assets 22 28 -22 29 -24 50 55 -9 Total scope 3 910 925 -2 954 -5 1,836 3,865 -53 Total greenhouse gases, tonnes of CO₂e 923 942 -2 963 -4 1,864 3,894 -52
Page 54
Sustainability Information 54 Group Jun 30, 2026 Mar 31, 2026 % Jun 30, 2025 % Scope 3, downstream, current situation on annual basis (tonnes of CO₂e ) Loan portfolio Scope 1, 2 and 3 655,816 669,579 -2 657,939 -0 Investments Scope 1, 2 and 3 4,578,829 4,110,627 11 3,852,361 19 Treasury Scope 1, 2 and 3 106,363 103,119 3 92,630 15 Total, Scope 3, downstream 5,341,008 4,883,325 9 4,602,930 16
Page 55
The presentation was prepared by Bank of Åland Plc for use in investor relations. This presentation is not intended for retail customers. This presentation has been prepared on the basis of publicly available information which the Bank of Åland considers to be reliable. This presentation may contain forward-looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares or debt instruments of the Company, and no part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment. The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Disclaimer 55