PRESS RELEASE 15 OCT. 2008
- Operating profit of Tapiola Bank Ltd grew to EUR 0.5 million (EUR -1.7 million at 9/2007).
- Tapiola Bank’s credit portfolio increased by 49 percent to EUR 930 million (EUR 624 million 9/2007) and its deposit base by 56 percent to EUR 1.1 billion (EUR 697 million 9/2007).
- Number of bank customers increased to 148,400 (115,250 customers 12/2007).
- Also Tapiola Bank’s solvency is strong. The bank’s solvency ratio at the end of September was over 15 percent.
Tapiola Bank’s growth continued vigorously during 1 January 2008 - 30 September 2008. The number of customers as well as the bank’s lending and deposits have increased faster than expected during the first nine months of 2008. In addition, the bank’s result during the first nine months was positive.
Ever since the bank was founded, the number of customers has grown fast. During the first nine months of 2008 the bank’s clientele increased to 148,400 customers (115,250 customers 12/2007).
At the end of September, the bank’s operating profit was EUR 0.5 million, whereas last year at the same time the operating loss was EUR -1.7 million.
– The bank’s result exceeded clearly our own goals. Growth of the bank's volumes was pleasing and in the main clearly better than anticipated, says Tapiola Bank Managing Director, Harri Lauslahti.
– Our financial goal for 2008 is to gain profit. Due to our investments in growth, the amount of profit is still modest but at the same accordant with the goals set, Lauslahti states. Tapiola Bank launched operations in February 2004, and the bank was initially expected to be profitable in 2009.
Also the bank’s lending and deposits have increased significantly. Tapiola Bank’s credit portfolio increased by 49 percent to EUR 930 million (EUR 624 million 9/2007) and its deposit base by 56 percent to EUR 1.1 billion (EUR 697 million 9/2007).
The current financial crisis has not directly affected Tapiola Bank's liquidity, since the bank is not dependent on interbank lending.
– The customers of Tapiola Bank can remain calm. The mistrust between banks has no direct influence on us, because we have throughout our operation had more deposits than loans, Lauslahti comments.
Also Tapiola Bank’s solvency is strong. The bank’s solvency ratio at the end of the interim period was over 15 percent.
Tapiola Bank's success is based on prudence
Tapiola Bank has a confirmed risk management strategy and an annual risk management plan. The Executive Board of Tapiola Bank observes monthly the risk situation. A comprehensive evaluation of the risk management is performed annually. The bank’s risk-taking profile is low. Risks are avoided in lending and capital market.
Tapiola Bank does not carry on foreign exchange trading or invest in real property. In addition, Tapiola Bank’s own assets are not invested in securities or derivatives. The bank’s assets are invested in Finnish consumers’ housing loans. Therefore, regular Finnish homes are collateral for loans.
The bank’s operations grow strongly in accordance with the plans, and the profitability is improving all the time. According to Lauslahti, Tapiola Bank’s prudent operational model is the best possible for the customers.
– Since we have probably one of the most prudent credit policies in Finland, we are not going to suffer from credit losses as much as the industry in general. Tapiola Bank’s solvency is strong, and thus, the depositors need not be concerned about their deposits.
In spite of the bank’s rapid growth, the customer satisfaction with Tapiola Bank has remained high during the bank’s fifth year of business. Almost 90 percent of Tapiola Bank's active customers are willing to recommend the bank to their friends and acquaintances. This is demonstrated by the results of the brand and service image study conducted for Tapiola Group by Qualitems and Otantatutkimus Oy.
The financial figures of this press release are unaudited.
Additional Information:
Tapiola Bank Ltd
Managing Director
Harri Lauslahti
(040) 847 8790