743700VK1NB8HRGTQH74 2024-01-01 2024-12-31 743700VK1NB8HRGTQH74 2023-01-01 2023-12-31 743700VK1NB8HRGTQH74 2024-12-31 743700VK1NB8HRGTQH74 2023-12-31 743700VK1NB8HRGTQH74 2023-12-31 ifrs-full:IssuedCapitalMember 743700VK1NB8HRGTQH74 2023-12-31 alisa:ReserveForInvestedUnrestrictedEquityMember 743700VK1NB8HRGTQH74 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700VK1NB8HRGTQH74 2023-12-31 ifrs-full:RetainedEarningsMember 743700VK1NB8HRGTQH74 2024-01-01 2024-12-31 ifrs-full:IssuedCapitalMember iso4217:EUR iso4217:EUR xbrli:shares 743700VK1NB8HRGTQH74 2024-01-01 2024-12-31 alisa:ReserveForInvestedUnrestrictedEquityMember 743700VK1NB8HRGTQH74 2024-01-01 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700VK1NB8HRGTQH74 2024-01-01 2024-12-31 ifrs-full:RetainedEarningsMember 743700VK1NB8HRGTQH74 2024-12-31 ifrs-full:IssuedCapitalMember 743700VK1NB8HRGTQH74 2024-12-31 alisa:ReserveForInvestedUnrestrictedEquityMember 743700VK1NB8HRGTQH74 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700VK1NB8HRGTQH74 2024-12-31 ifrs-full:RetainedEarningsMember 743700VK1NB8HRGTQH74 2022-12-31 ifrs-full:IssuedCapitalMember 743700VK1NB8HRGTQH74 2022-12-31 alisa:ReserveForInvestedUnrestrictedEquityMember 743700VK1NB8HRGTQH74 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700VK1NB8HRGTQH74 2022-12-31 ifrs-full:RetainedEarningsMember 743700VK1NB8HRGTQH74 2022-12-31 743700VK1NB8HRGTQH74 2023-01-01 2023-12-31 alisa:ReserveForInvestedUnrestrictedEquityMember 743700VK1NB8HRGTQH74 2023-01-01 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 743700VK1NB8HRGTQH74 2023-01-01 2023-12-31 ifrs-full:RetainedEarningsMember 743700VK1NB8HRGTQH74 2023-01-01 2023-12-31 ifrs-full:IssuedCapitalMember
ALISA BANK
Annual Report
2024
2
Contents
Alisa Bank in brief ........................................................................... 3
A digital bank .......................................................................................... 5
CEO’s review ........................................................................................... 6
Highlights of 2024 ................................................................................. 8
Key figures .............................................................................................. 9
Board of Directors´ Report ............................................................ 10
Business environment ...................................................................... 11
Financial performance ...................................................................... 12
Capital adequacy and risk management ....................................... 13
General meeting, Board of Directors, CEO and auditor .............. 17
Shares and shareholders .................................................................. 18
Group structure .................................................................................. 19
Personnel and locations ................................................................... 19
Material events after the review period ........................................ 19
Financial targets and outlook for 2025 .......................................... 20
Calculation of key figures ............................................................ 21
Financial Statements .................................................................... 22
Group’s Financial Statements .......................................................... 22
Parent companys Financial Statements ........................................ 67
Signatures of the Financial Statements ......................................... 86
Auditor’s Report .................................................................................. 87
Auditor’s ESEF Assurance Report .................................................... 91
Governance .................................................................................... 93
2
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
3
3
Seamless banking services
in digital channels
We serve SME customers, deposit customers seeking competitive interest
returns on their deposits and partners. Together with our partners, we offer
integrated banking services in the channels where customers carry out their
daily business.
ALISA BANK IN BRIEF
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
• We solve real problems
• We innovate • We take responsibility
• We value everyone
Values
4
Alisa Bank’s story began in 2022 when we combined Fellow Finance’s digital finance expertise
with Evli Bank’s deposit banking operations. In 2024, we further strengthened our position
by merging with the leader in invoice financing, PURO Finance.
For us, banking services mean smoothness and ease. We integrate banking into our
customers’ daily lives exactly where they are needed, leveraging digital channels and strong
partnerships.
Our operations are guided by genuine values and the desire to solve our customers’ real
challenges. We innovate with an open-minded approach and take responsibility for serving
our customers in the best possible way.
To us, every customer and colleague is important. When the working atmosphere is good
and the culture is strong, we achieve more together.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
5
From Finland’s strengths towards
international growth
Strong positioning in Finland provides
a foundation for international expansion.
In European markets we pursue
selective growth through partnerships,
focusing particularly on invoice
financing products.
Strategic cornerstones
Partnerships
Technological capabilities
Responding to customer needs
Capital-efficient and profitable growth
Purpose
Producing seamless banking
services in digital channels.
Target customers
SME customers
Deposit customers
Partners
Partnerships at the Core of our BaaS Strategy
Our Banking-as-a-Service strategy is built on
strong partnerships with financial software
providers, banks and asset managers.
We offer banking services that can be
integrated into our partners’ solutions to
meet customers’ liquidity management and
financing needs.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
6
New strategy for the new year
The development direction in line with the
renewed strategy, along with the combination
with PURO Finance, reversed the bank’s
performance trend in the second half of the
year. We estimate the positive development to
continue in the current fiscal year.
For Alisa Bank, 2024 was a year of renewal filled with many
changes. The combination with PURO Finance Ltd, completed
in May, proved transformative. With the combination, the
bank gained a new Board of Directors, Management Team
and a strategy published later in the financial year. In the
second half of the year, the focus of operations, in addition
to the implementation of the new strategy, was on the
technical and operational execution of the merger. At the
same time, we were able to improve fundraising, create a
foundation for more active risk-based pricing, and initiate
discussions with new Banking-as-a-Service (BaaS) partners.
The weak state of the Finnish economy was reflected in
the demand for both consumer and business financing. In
particular, demand for our main product, invoice financing,
fell short of our August forecast, as B2B invoicing in our
target group declined in the final months of the year. In
addition to the challenging business environment, the end
of the year saw a higher-than-expected amount of external
expenses, and the expected credit loss from a single
bankruptcy estate was specified. The focus of this year is
on increasing sales and partnerships for products in line
with our new strategy and on efficiency measures aimed at
optimizing external expenses. The portfolio of consumer
credits, which was previously a focus area, maintains a
level of credit losses similar to the past financial year. A
clearer decrease in credit losses is expected to come only
in 2026, with the loan portfolio under the new strategy
being materially less risky than before.
Due to the first half of the year, profit before non-recurring
items and taxes was EUR -0.1 million, and profit before
taxes EUR -1.3 million. The earnings improvement in the
second half of the year was driven by both successful
implementation of fund-raising and the increase in the
risk-adjusted return on lending in line with the renewed
strategy. Volume development in lending and certain
external expenses correspondingly pushed the figures for
the latter part of the year below the guidance we issued in
connection with the half-year report.
CEO’S REVIEW
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
7
Business development
The company’s operating income increased by 2.0 percent
to EUR 17.0 million (16.7) during the financial year, driven by
a corresponding change in net interest income. The same
trend in credit losses resulted in a corresponding 2.0 percent
increase in the risk-adjusted return. The bank’s profit before
taxes fell to a EUR -1.3 million (-0.1) loss after the expense
level exceeded the 2023 level by EUR 1.4 million.
Business performance in the past year was characterized
by a weak market situation in Finland and, on the other
hand, the merger of Alisa Bank and PURO Finance. The
shift in operational focus towards SME lending, initiated in
spring 2024, was strengthened by the merger with PURO
and the renewed strategy published on September 30.
The organizational and business changes following the
merger were somewhat reflected in the development of
non-recurring expenses towards the end of the year but at
the same time sharpened operations ahead of 2025. The
bank’s BaaS operations strengthened in existing partnerships
and opened numerous new discussions, the results of which
are expected to be announced in early 2025. The flow of
customer contacts generated by the partner model remained
strong among corporate customers, but the weak market
environment was reflected in lower-than-expected demand
for customer-specific financing. The new risk-based pricing
model implemented in December 2024 is expected to be
reflected in demand recovery, especially in the lower-risk SME
target groups. At the same time, the decline in the average
interest rate of financing from 3.1% percent in June to 2.4
percent in December improved the profitability of financing
activities.
After the one-off increase in the loan portfolio (62%)
generated by the PURO merger, the volume development
of business financing was subdued in the second half of
the year. Growth in the business financing loan portfolio
for the full financial year was 16 percent. The corporate
loan portfolio at the end of the financial year was EUR 48
million (41). The number of credit applications developed as
targeted, but the challenging operating environment was
reflected in weak credit quality and, thus, a low volume of
granted financing. The granted financing focused on invoice
financing, which kept the new sales portfolio low-risk. At the
same time, we increased the risk-adjusted return on business
financing, which was also supported by the success of own
channels in deposit fundraising.
In personal customers, our loan portfolio decreased by 23
percent to EUR 102 million (132). The key reason for the drop
was a strategic decision to abandon the use of comparison
platforms and to emphasize new sales to the company’s
own customer base with a better risk profile. The decision
materially improved the profitability of new sales, roughly
doubling the risk-adjusted return from the level seen in
summer 2024. The decision to focus on SME financing
and growing the own deposit base, in line with the new
strategy, reduces the emphasis on personal finance. The
high credit loss ratio of the current personal finance portfolio
will continue to negatively impact the company’s earnings
development throughout 2025.
Our deposits amounted to EUR 395 million (269) at the end of
the period. During the year, the development of the structure
of deposits was two-fold. During the first half of the year, we
sought growth from the comparison portal Raisin while also
exploring the market in different European countries. The
deposit portfolio’s peak level was reached in July 2024, after
which we focused on growing our own deposit base and
optimizing the price level of fundraising. The end result was
a highly predictable portfolio development and better-than-
expected profitability of deposits, which in part supported the
bank’s earnings turnaround in the second half of 2024.
We had 68,000 (57,500) active customers at the end of
December. Customer satisfaction increased a bit (Net
Promoter Score 52) from an already strong level (46).
The long sought-after increase in the solvency ratio
materialized in the second half of 2024, supported not only
by the decrease in the loan portfolio but also by positive
earnings development and a successful personnel issue. In
the second half of the financial year, the bank’s CET1 capital
increased by EUR 1.2 million and total capital adequacy ratio
was 17.6 percent (15.1).
A warm thank you to our staff and customers for the past
year - you have been a key part of our turn.
Sampsa Laine
CEO
The bank’s Banking-as-a-Service
(BaaS) operations strengthened
both in existing partnerships
and opened numerous new
discussions.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
8
Highlights of 2024
May
Alisa Bank and PURO Finance
merged and PURO became a
subsidiary of Alisa Bank.
As a result of the merger, a
new board of directors was
formed.
July
We launched support for
Google Pay payments on our
credit cards.
October
As a part of our BaaS partnership
with Accountor Finago we launched
Procountor Account for businesses.
We began distributing deposit
products in Germany in collaboration
with Check24.
A new business credit card was
launched.
December
Sampsa Laine began in the role
as our new CEO.
April
We started our BaaS
partnership with Accountor
Finago.
June
We started offering deposit
products in France and Austria
in collaboration with Raisin.
September
We launched a new BaaS
strategy focused on developing
digital banking and financial
services for SMEs.
Apple Pay payments were
introduced to the market.
November
The merger with PURO
Finance was completed and
we did a small brand update to
symbolize the merger.
An employee share offering
was carried out. Half of our
employees subscribed to the
shares.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
9
Key figures at
the end of 2024
Loan portfolio
million EUR
149
Deposits
million EUR
395
Customer recommendation
index (NPS)
52
Income
million EUR
17.0
Costs / Income
75%
Capital Adequacy Ratio
17.6%
Return on Equity
-3.9%
Active banking customers
68.000
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
10
Board of Directors’
Report
Alisa Bank Plc (“Alisa Bank”, ”Alisa” or “the company”) is a financial
technology company that provides seamless banking services through
digital channels. We serve SME customers, deposit customers seeking
competitive interest returns on their deposits and partners. Together
with our partners, we offer integrated banking services in the channels
where customers carry out their daily business.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
11
• Total operating income was close to the level of the comparison period, being EUR 17.0 million
(16.7).
• Total operating expenses increased to EUR 12.8 million (11.4) due to the merger with PURO
Finance.
• Realised and expected credit losses were EUR 5.5 million (5.4*).
• January-December profit before non-recurring items and taxes was EUR -0.1 million (0.4*).
Profit before taxes was EUR -1.3 million (-0.1*).
• Total capital adequacy ratio increased by 17.6 percent (15.1*).
• Alisa Bank and PURO Finance Ltd. combined on May 15, 2024. Following this and the
implementation of the renewed strategy, profit before non-recurring items and taxes fot the
second half of the year owas a profit of 0.9 million euros (-0.0).
• Loan portfolio before reducing expected credit losses decreased to EUR 149.5 million (172.9).
The corporate customer loan portfolio increased by EUR 47.6 million (41.1) and the loan
portfolio of personal customers decreased to EUR 101.9 million (131.8).
• Deposits increased to EUR 394.6 million (268.9).
• Sampsa Laine started as the bank’s new CEO on 1 December 2024.
CONSOLIDATED KEY FIGURES
EUR 1,000 2024 2023 2022
Net interest income 15,075 14,757 9,053
Net commission income and expenses 1,815 1,785 1,511
Total operating costs -12,781 -11,398 -11,601
Realised and expected credit losses -5,527 -5,443* -8,321
Profit before taxes -1,317 -140* -9,684
**Profit before non-recurring items and taxes
-137 389* -7,750
**Cost to income ratio, %
75 68 113
Balance sheet total 450,604 312,398* 291,661
**Return on equity (ROE), % -3.9 -0.5* neg.
**Capital adequacy ratio (TC), % 17.6 15.1* 16.8
**Common Equity Tier 1 (CET1) capital ratio, % 15.1 12.0 12.6
Number of employees at end of period 80 78 78
**Earnings per share (EPS), euros -0.01 0.00 -0.14
**Credit losses / loan portfolio, % 3.7 3.2* 5.1
2024 financial year in brief
* Figures for the financial year 2023 adjusted for the ECL provision, see more details in note K2
** The formulae for calculating the key figures and alternative key figures are presented in chapter The formulas of key figures.
Alisa Bank is a financial technology company that provides seamless banking services through
digital channels. We serve SME customers, deposit customers seeking competitive interest
returns on their deposits and partners. Together with our partners, we offer integrated banking
services in the channels where customers carry out their daily business. Alisa Bank Plc’s shares
are listed on the main list of Nasdaq Helsinki (ALISA), and it holds a license granted by the
Financial Supervisory Authority.
The cornerstones of the revised strategy for the 2024 financial year are partnerships, technological
capabilities, responding to customer needs and capital-efficient and profitable growth. Banking-
as-a-Service (BaaS) strategy is based on both existing and new partnerships, such as with financial
software providers, other banks, and asset managers. In the 2024 financial year, the company’s
service selection included personal and SME customers lending as well as payment services and
savings account products. The company’s service selection is constantly being developed.
Key events in the financial year
The financial year 2024 was a year of strategic changes for Alisa Bank:
• In May, Alisa combined with PURO Finance Ltd. The combination supports Alisa’s focus on
digital banking and financial services for SMEs and enhances growth and profitability through
synergies and partnerships. Following the combination, a new board was formed in the spring.
In December, Sampsa Laine took over as the company’s new CEO. Teemu Nyholm served as
the CEO until April 7, 2024, and Juha Saari temporarily took over the CEO duties from April 8 to
November 30, 2024.
• In the fall of 2024, the revised strategy for the merged entity was announced.
In the spring, a collaboration was launched with Accountor Finago. The partnership includes
offering Alisa’s financing and account services within Accountor’s financial management software.
• During the financial year, distribution channels for deposit products were expanded in France,
Austria, and Germany.
• The company introduced Apple Pay and Google Pay support for credit cards and launched a new
business credit card.
• In November, the company arranged a personnel share issue, which was nearly fully subscribed.
• During the financial year, Alisa simplified its group structure through mergers of three subsidiaries:
Lainaamo Ltd, Mobify Invoices Ltd, and PURO Finance Ltd are now part of Alisa Bank Plc.
In the summer, as part of the integration work following the combination with PURO Finance, the
company held change negotiations.
Company’s business
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
12
Business environment
In 2024, Finland’s economy continued its slow recovery following the previous year’s
recession. Inflation slowed down, approaching the European Central Bank’s (ECB) target of
two percent. The average inflation in Finland for 2024 was 1.6%, with December’s inflation at
0.7%. The inflation rate in the euro area for 2024 was 2.4%.
During 2024, the ECB lowered all three of its key interest rates by 1-1.35 percentage points.
The decrease in interest rates also affected deposit rates, which began to decline during
2024. Despite the drop in interest rates, consumer and business confidence in the economy
remained cautious. Private consumption decreased due to weak consumer confidence, and
investments continued to decline significantly throughout 2024. The number of bankruptcies
in Finland also continued to rise in 2024.
The employment rate for 2024 was 71.5%, and the unemployment rate was 8.9%.
Unemployment increased compared to the previous year, and the number of long-term
unemployed also grew.
In 2024, consumer credit granted in Finland increased by 3.5% compared to the previous
year, and household deposits grew by 1.5% compared to the year before.
By the end of 2024, the economic outlook was cautiously positive, but challenges such as weak
consumer confidence and public sector debt continue to overshadow economic development.
Financial performance
The development according to the renewed strategy, as well as the combination with
PURO Finance, had a positive impact on the company’s performance in the second half of
the financial year. The relative profitability and financial position of the balance sheet also
improved. However, the prolonged uncertainty in the operating environment and weak
overall economic conditions slowed the targeted growth in corporate financing. Growth fell
short of expectations due to a larger-than-anticipated decrease in the usage rate of leasing
credit limits and a decline in overall financing demand. Additionally, the company’s financial
result was negatively impacted by non-recurring items due to the combination.
Group’s result before non-recurring items and taxes was EUR -0.1 million (0.4*). The result
before taxes was EUR -1.3 (-0.1*) million, and the loss for the year was EUR -1.2 million (-0.1*).
The group’s income for the January-December, including net interest income, net fee
income, net investment income and other operating income, remained near the level of
2023 totaling EUR 17.0 million (16.7).
Net interest income was EUR 15.1 million (14.8) during the accounting period. Interest
income grew by 47 percent to EUR 29.5 million (20.1) and interest expenses were EUR 14.5
million (5.3). Interest income was increased by the favorable development of the relative
return on the loan portfolio and the increase in returns on liquid assets. The increase in
interest expenses consisted of both the increase in the deposit base and the increased
financing costs due to the development of the general interest rate. Net fee income
remained at the level of the comparison period at EUR 1.8 million (1.8).
The total costs of the review period, including depreciation and write-downs, increased
slightly during the financial period to EUR 12.8 million (11.4). The expenses for the fiscal year
2024 included EUR 1.2 million (0.5) in non-recurring items, which mainly consisted of the
merger with PURO Finance.
Personnel expenses increased to EUR 6.3 million (5.5) when PURO Finance’s personnel
transferred to Alisa Group. Other administrative expenses - including office, IT, representation
and marketing expenses as well as costs related to consulting – were EUR 4.9 million (4.5).
Depreciation and impairment were EUR 1.3 million (0.8) and other operating expenses were
EUR 0.3 (0.6) million. Other operating expenses include, for example, official fees.
Realized and expected credit losses amounted to EUR 5.5 million (5.4*). The change in the
expected credit losses in the income statement was EUR 0.6 million (1.3*). Realised credit
losses decreased to EUR 6.2 million (6.7).
Balance sheet and financing
The total amount of the group’s balance sheet was EUR 450.6 million (312.4*) at the end of year.
Assets, EUR 450.6 million, mainly consisted mainly of cash EUR 279.4 million and loans granted
to customers (claims on the public and public sector entities) EUR 143.7 million (166,4*).
The bank’s key intangible assets are its personnel, IT systems, and strategic partnerships.
Some of these assets are recorded on the balance sheet as goodwill and intangible assets.
These resources play a central role in the implementation of the strategy. Intangible assets,
EUR 16.5 million (8.2), include EUR 13.3 million (6.0) goodwill generated in business acquisitions
and EUR 2.3 million (2.2) of capitalized product development costs and customer contracts
* Figures for the financial year 2023 adjusted for the ECL provision, see more details in note K2.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
13
EUR 0.9 million (0.2). During the year, EUR 0.6 million (EUR 0.7 million) of product development
expenses related to the development of digital banking services were capitalised.
The Group’s liabilities EUR 413.9 million (286.7), mainly consisted of liabilities to the public
and public-sector entities EUR 394.6 million (268.9). The deposit base grew by 46.8% (8.9%).
The group’s equity grew to EUR 36.7 million (25.7*). EUR 11,6 million of growth was due to
the acquisition of PURO Finance Ltd. In addition, the fund of invested non-restricted equity
grew at the end of the year by EUR 0.3 million through the personnel issue and by EUR 0.2
million through the directed issue to the new CEO.
Risks and capital adequacy
Alisa Bank focuses on retail banking operations and offers selected banking and financial
services to both personal and business customers through its own balance sheet and through
its partners. Alisa Bank operates in a constantly changing market environment, which subjects
the company to risks caused by changes in the business environment and the company’s own
operations. Risk management plays a key role in Alisa Bank’s operations from the perspective
of business management and managing changes in the operating environment. The main
categories of risks are credit risk, operational risk, market risk and liquidity risk.
Risk management
Risk management refers to actions aimed at systematically surveying, identifying, analysing
and preventing risks as a part of daily business management. The objective of risk
management is to support the smooth implementation of strategy and income generation,
ensure adequacy of own funds in relation to risk positions, and ensure the correct pricing of
risks to achieve sustainable profitability. The main areas of risk management are: credit risk,
market risk including interest rate risk, liquidity risk and strategic and operational risks.
Principles and organisation
The company’s Board of Directors has primary responsibility for the Group’s risk
management. The company’s Board of Directors has determined the level of risk that the
company is willing to accept in order to achieve its strategic goals. The accepted level of
risk is based on a risk appetite framework, on which the key principles and rules guiding
risk-taking are also based. The objective is to ensure the adequacy of risk-bearing capacity in
relation to all material risks. The risk taking is managed by principles and limits approved by
the Board of Directors.
Alisa Bank’s risk management strategy is based on the objective, business strategy, risk
management policy and guidelines adopted by the Board of Directors for the company, and
risk reporting on key business areas. The company does not have customer or investment
risk concentrations that exceed its financial bearing capacity, nor does the company take
them in accordance with its strategy.
The Board of Directors sets the level of risk appetite by approving risk strategies for each
risk area and the necessary risk limits and monitoring thresholds. The implementation of
the risk strategy is regularly monitored through the management and reporting of risk limits
and monitoring thresholds, which are carried out independently of the business area. The
company maintains its capital adequacy at a safe level. The company’s capital adequacy
and risk bearing capacity are strengthened by profitable business. The Board of Directors is
kept regularly informed about the different risks of the company and their levels. The Board
of Directors also approves the authorisations and framework for risk-taking by defining
permissible risk limits for credit and market risks. Within the authorisations, the responsibility
for day-to-day risk monitoring and control rests with the Management Team. The risk
reporting practices meet the requirements set for risk management, taking into account the
nature and scope of the company’s operations. Independent control functions have been
established in the company to ensure effective and comprehensive internal control.
Independent functions:
• Risk control function
• Compliance function responsible for ensuring compliance with the regulations
• Internal Audit function.
Risk management, ensuring regulatory
compliance and internal audit
The Risk Control function oversees daily business operations and compliance with the risk
limits granted to the business units, as well as compliance with risk-taking policies and
guidelines. The Risk Control function reports its observations to the Management Team and
the company’s Board of Directors. The independent Risk Control function is responsible for
ensuring and monitoring that the company’s risk management is adequate in relation to the
nature, scope, diversity and risks of the company’s business, and that all new and material
risks not previously identified are brought within the scope of the risk management of the
company’s business areas.
The purpose of the Compliance function is to ensure compliance with regulations in the
company by supporting the Management Team and the business units in applying the
* Figures for the financial year 2023 adjusted for the ECL provision, see more details in note K2.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
14
provisions of the law, official regulations and internal guidelines. The Compliance function also
participates in identifying, managing and reporting on any risks of insufficient compliance with
regulations. The Risk Control and Compliance functions report directly to the CEO.
The Internal Audit assesses the functioning of the Group’s internal control system, the
appropriateness and efficiency of the functions and compliance with instructions. It does this
by means of inspections that are based on the internal audit action plan confirmed annually
by the Board of the company.
Risk position
Alisa Bank’s business risks mainly consist of credit risk as well as operational risks and market
risk, which mainly consists of the interest rate risk of the bank’s financial balance.
The most significant risks in the near future are related to uncertainties in the economic
operating environment, such as the development of interest rates and inflation, which have
weakened the purchasing power of households and are challenging the profitability and
investment willingness of SMEs. Uncertainties can be reflected in Alisa Bank’s business as an
unfavourable development of volumes and credit losses.
During Alisa Bank’s third year of operations, the credit portfolio decreased compared to the
previous year, and the relative credit risk position remained stable. Alisa Bank’s customers
are both private and SME customers. Due to the distributed customer base, there are no
individual significant customer risks. At the end of the financial year, the company had one
exposure, where the loan amount was 10 percent of Tier 1 own funds; the loan is secured
by financed sales invoice receivables. The loan portfolio before the reduction of credit loss
reservations was EUR 149,5 (172.9) million at the end of the financial year.
The amount of non-performing loans in the loan portfolio slightly decreased compared to
previous year. At the end of the review period, the amount of non-performing loans was EUR
7.1 million (7,2). The NPL ratio, which describes non-performing receivables in relation to all
loans and receivables, was 4.8 (4.2) percent at the end of the review period. At the end of the
review period, there were EUR 1.5 million (0.4) in non-performing forbearance loans, and EUR
0.6 million (0.7) of performing forbearance loans. Loan receivables with a payment delay of
more than 30 days but less than 90 days were 3.5 (3.5) percent of the entire loan portfolio.
The proportion of overdue payments of more than 90 days was 3.1 (3.0) percent.
Market risk mainly consists of the interest rate risk of the banking book and a minor currency
risk. The interest rate risk of the banking book mainly consists of the differences between the
interest rates and maturities of assets and liabilities. The company currently has a tenth of its
loan portfolio in longer fixed-rate loans. The new lending is mainly at floating rates and tied
to the 3 month Euribor. Strong changes in market interest rates emphasize the importance
of interest rate risk management. The company constantly monitors the development of the
interest rate risk through, for example, the sensitivity analysis of changes in the current value
of the balance sheet and net interest income. If the interest rate level were to rise by two
percentage points, the economic value of the company’s own funds would increase by 2.7 per
cent due to the positive profit development. If interest rates were to fall by two percentage
points, the economic value of own funds would fall by 3.4 per cent. If interest rates were to
rise by two percentage, it would have an estimated annual positive impact on net interest
income by EUR 1.7 million, which is 8.5 per cent of CET 1 own funds. If interest rates were to
fall by two percentage, the estimated negative annual impact on net interest income would be
EUR -1.74 million, which is -8.6 per cent of CET 1 own funds.
Capital adequacy management
The aim of the capital adequacy management process is to secure an adequate amount of
the capital in relation to all the material risks of its operations. To achieve this objective, Alisa
Bank identifies and assesses all risks relevant to its operations and, based on these, calibrates
its risk bearing capacity to correspond with the company’s overall risk position. The capital
adequacy management process plays a key role in defining the company’s overall risk position.
The internal capital requirements determined through the capital adequacy management
process are based on the capital requirements of Pillar I of capital adequacy regulation and
risks not included in Pillar I, such as the interest rate risk in the banking book and business
risk. In its internal assessment process, the company estimates the amount of capital that is
sufficient to cover also those unexpected losses that arise from risks not included in Pillar I.
The Board of Directors has primary responsibility for the capital adequacy management
process. The company’s Board of Directors approves general principles for organizing the
capital adequacy management process.
The Board of Directors confirms the risk strategies and sets target levels for capital that
cover all material risks arising from business operations and from changes in the external
operating environment. Every year, the Board of Directors reviews the risks related to the
company’s capital adequacy management, the capital plan and defines limits for the risks.
Capital adequacy and own funds
In the capital adequacy calculation Alisa Bank uses the Standardised Approach for the credit
risk calculation and the basic indicator approach for operational risks.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
15
The bank´s total capital requirement consists of a minimum capital requirement (8.0%) in
accordance with Pillar I and an additional capital requirement (2.5%) in accordance with the
Act on Credit Institutions. In order to strengthen the risk-bearing capacity of the banking
sector, The Finnish Financial Supervisory Authority (FIN-FSA) imposed a systemic risk buffer
requirement. The decision came into force for all Finnish banks on 1.4.2024. Requirement shall
be covered by the Consolidated Common Equity. FIN-FSA imposed a discretionary additional
capital requirement (pillar 2) P2R, for Alisa Bank based on the supervisor’s assessment (SREP)
on April 2024. The additional capital requirement is 2.25% and it comes in such a way that at
least three quarters of the additional capital requirement must be primary capital, of which at
least three quarters must be core capital (CET1) in accordance with the EU capital adequacy
regulation. The discretionary additional capital requirement is valid from December 31, 2024,
onwards, until December 31, 2027
Alisa Bank Group’s capital adequacy ratio was 17,6%, exceeding the banks’ total capital
requirement (13,75%). The common equity Tier 1 ratio was 14,6%, exceeding common equity
tier 1 requirement of 9,27% and Tier 1 capital requirement of 11,19%. At the end of the review
period, the group’s capital structure was strong and consisted of core capital (CET 1) and Tier
2 capital (Tier 2). The group’s own funds (TC) were EUR 23,5 million: primary capital (T1) EUR
20,1 million was entirely common equity Tier 1 ratio (CET1) and Tier 2 capital (T2) EUR 3.4
million consisted of debenture loan. Alisa Bank´s leverage ratio was 4,6% at the end of the
review period.
There will be a change to the Capital Regulation, which entered into force at the beginning of
2025. Alisa Bank has estimated that, based on the figures as of 31 December 2024, the change
will improve the bank’s capital adequacy ratio.
ALISA BANK TOTAL CAPITAL REQUIREMENT 31 DECEMBER 2024
Additional Capital Requirements
Pillar I minimum capital
requirement
Capital
conservation
buffer
Systemic
risk buffer
Pillar 2 (SREP)
capital
requirement
Total capital
requirement
Capital %
M€ % % % M€ % M€
CET1 4.50% 6.00 2.50% 1.00% 1.27% 1.69 9.27% 12.36
AT1 1.50% 2.00 0.42% 0.56 1.92% 2.56
T2 2.00% 2.67 0.56% 0.75 2.56% 3.41
Total 8.00% 10.67 2.50% 1.00% 2.25% 3.00 13.75% 18.34
CAPITAL AND RISK POSITION
EUR 1,000 31 DEC 2024 31 DEC 2023
Common Tier 1 Capital before adjustments 36,663 25,719
Adjustments to Common Tier 1 Capital -16,534 -8,172
Common Tier 1 Capital in total (CET1) 20,128 17,546
Additional Tier 1 Capital in total (AT1) 0 0
Total Capital (T1 = CET1 + AT1) 20,128 17,546
Tier 2 Capital before adjustments 6,100 6,100
Adjustments to Tier 2 Capital -2,694 -1,471
Tier 2 Capital in total (T2) 3,406 4,629
Total risk weighted exposure amounts
Credit and Counterparty risk
105,182 120,547
Market 803 853
Operational risk 27,387 25,138
Risk weighted exposures in total 133,372 146,538
Common Equity Tier 1 ratio (CET 1), %
15.1 12.0
Tier 1 ratio (T1), % 15.1 12.0
Total Capital Ratio (TC), % 17.6 15.1
* Figures for the financial year 2023 adjusted for the ECL provision, see more details in note K2
LEVERAGE RATIO
EUR 1,000 31 DEC 2024 31 DEC 2023
Total Equity 20,128 17,546
Total Exposure Amount 435,042 305,205
Leverage ratio (LR), % 4.6 5.7
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
16
Liquidity Coverage Ratio and stable funding
Liquidity risk can be defined as a disparity in the balance of incoming and outgoing cash flows.
The risk may materialise if the company is unable to meet its payment obligations as they fall
due. The company’s main liquidity risks arise from the maturity mismatch between borrowing
and lending.
Sufficient liquidity is ensured by the limit set by the company’s Board of Directors to the
company’s cash assets. The company prepares for the repayment of future debts by limiting
new lending in the upcoming years as necessary, thereby ensuring its liquidity position. The
company’s liquidity remained stable and on a good level during 2024.
The Group’s Liquidity Coverage Ratio was 897% at the end of the review period, with the
minimum requirement being 100%. Of its liquidity buffer, 100% consisted of Level 1 assets
with a very high liquidity; the buffer consists of a deposit in Bank Of Finland.
Net stable funding ratio was 324% at the end of the reporting period, with the minimum
requirement being 100%. The company has no issued bonds. The majority of fundraising
consists of retail deposits, i.e. deposits from individuals and SMEs.
LCR AND NSFR
EUR 1,000 31 DEC 2024 31 DEC 2023
Liquidity
LCR-ratio (12 months average) %
901% 539%
Total high quality liquid assets (12 months average) 314,526 121,125
Cash outflow (12 months average) 51,600 36,804
Cash inflow (12 months average) 16,711 14,319
Total net cash outflow (12 months) 34,890 22,486
Net Stable Funding
Total available stable funding
387,502 267,461
Total required stable funding 119,484 133,830
NSFR-ratio % 324.3 199.9%
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
17
General meeting, Board of Directors,
CEO and auditor
The Annual General Meeting of Alisa Bank was held on March 20, 2024. The General Meeting
approved the financial statements for the financial year 2023 and granted discharge
from liability to the members of the Board of Directors, the CEO, and the Deputy CEO. In
accordance with the proposal of the Board of Directors, the General Meeting decided that
no dividend will be paid for the financial year 2023. The General Meeting also approved the
company’s remuneration report for its governing bodies for the year 2023.
The Extraordinary General Meeting of Alisa Bank Plc was held on May 3, 2024. The General
Meeting decided to authorise the Board of Directors to decide on a directed share issue related
to the acquisition of PURO Finance Ltd. The number of shares to be issued in the directed share
issue may be up to a total of 58,878,721 shares. The Board of Directors decided on the directed
issue, and the new shares (58,878,721 shares) were directed to the shareholders of PURO Finance
Ltd prior to the acquisition, in proportion to the PURO Finance Ltd shares they had sold.
During the financial year 2024, the following persons have been members of the company’s
Board of Directors:
• Markku Pohjola (Chairman of the Board)
• Johanna Lamminen (Vice Chairman of the Board from 20 March 2024)
• Sami Honkonen
• Tero Weckroth
• Jukka Salonen from 15 May - 31 December 2024
• Sampsa Laine during 10 June - 30 November 2024
• Teuvo Salminen (Vice Chairman of the Board) during 1 January – 20 March 2024
• Lea Keinänen during 1 January – 15 May 2024
• Jorma Pirinen during 1 January – 15 May 2024
The company’s long-time CEO Teemu Nyholm went on sick leave due to a sudden seizure on
April 8, 2024 and announced on July 8, 2024 that he is no longer available for the position of
CEO. During the period from April 8 to November 30, 2024, the CEO duties were carried out
by Deputy CEO Juha Saari. Sampsa Laine has served as the company’s CEO since December 1,
2024. Juha Saari continues to serve as Deputy CEO.
The auditing firm KPMG Oy Ab acts as the auditor, with APA Tiia Kataja as the principal
auditor. The auditor is paid according to a reasonable invoice approved by the company.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
18
Authorising the Board of Directors to decide on the purchase of
treasury shares
According to Alisa Bank Plc’s Annual General Meeting, the Board of Directors is authorised to
decide on the acquisition of a maximum of 4 416 609 own shares in one or more installments with
the company’s free equity capital. The number of shares corresponds to approximately 5 percent
of the Company’s shares. The shares are acquired in a public trading organized by Nasdaq Helsinki
Oy, other than in proportion to the shareholders’ holdings, at the market price at the time of
acquisition. The authorisation is valid until the end of the next Annual General Meeting, but no later
than 30 June 2025. The authorisation can be used, for example, to implement possible business
acquisitions and incentive systems for key personnel or for other purposes decided by the Board.
The shares acquired on the basis of the authorisation can otherwise be further transferred, kept by
the company or cancelled. The Board can decide on all other conditions for acquiring own shares.
The company’s previous authorisation for the purchase of its own shares expired at the Annual
General Meeting on 20 March 2024.
Authorisation of the Board to decide on issuing shares and option
rights and other special rights entitling to shares
According to Alisa Bank Plc’s Annual General Meeting, the Board of Directors is authorised to
decide on the issue of shares and the issue of special rights entitling to shares referred to in
Chapter 10, Section 1 of the Limited Liability Companies Act in one or more installments, either
against payment or without payment. The number of shares to be issued, including shares
obtained based on special rights, can be a maximum of 4 416 609 shares in total. The Board
can decide to issue either new shares or transfer any of its own shares that may be in the
company’s possession.
The maximum amount of authorization corresponds to about 5 % of all the company’s shares,
based on the situation on the day of the meeting notice. The authorisation entitles the Board
to decide on all conditions for issuing shares and granting special rights entitling to shares,
including the right to deviate from the shareholders’ preemptive right. The authorisation is to be
used, for example, to pay the purchase prices of business transactions, to pay the incentive fee
according to the incentive system for key personnel, or for other purposes decided by the Board.
The authorisation also includes the right to decide whether the subscription price of the share
will be fully or partially entered into the invested unrestricted equity fund or as a share capital
increase. The authorisation is to be valid until the end of the next Annual General Meeting, but
no later than 30 June 2025. The previous authorisation of the Board ended with the Annual
General Meeting on 20 March 2024.
Alisa Bank’s shares
Shares of Alisa Bank Plc are listed on the main list of Nasdaq Helsinki under the trading
symbol ALISA. The number of shares in the company was 150,031,563 at the end of
December (88,332,182 shares 31 Dec 2023). The number of shares increased by 58,878,721
from 88,332,182 shares with the acquisition of PURO Finance Ltd on 15 May 2024. In addition
to this, the number of shares increased at the end of the year by 1,738,152 shares due to
directed share issue to the company’s personnel and by 1,082,508 shares due to directed
share issue to the new CEO.
The company’s share capital stood at EUR 18.3 million at the end of December. The number
of shares held by Alisa Bank at the end of December was 14,081.
The closing price of Alisa Bank Plc share was EUR 0.167 on 30 December 2024, the last trading
day of the review period. During January-December 2024 its lowest price was EUR 0.16, with
the highest price being EUR 0.26. Alisa Bank’s market value was EUR 25.1 million at the end of
the reporting period.
Ten largest shareholders
The shareholders’ holding information is based on the list of shareholders maintained by
Euroclear Finland Ltd on 31 December 2024.
Total number of shares % of all shares
1.
Evli Plc
15,288,303 10.19
2.
Taaleri Plc
15,288,303 10.19
3.
Kempinvest Oy
13,392,003 8.93
4.
Heikki Vaiste
8,247,384 5.50
5.
Mininvest Oy
7,296,139 4.86
6.
Oy Scripo Ab
5,500,000 3.67
7.
TN Ventures Oy
5,497,354 3.66
8.
Saxo Bank A/S
5,429,954 3.62
9.
Oy Prandium Ab
4,754,100 3.17
10.
Veikko Laine Oy
4,624,489 3.08
Shares and shareholders
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
19
Group structure, personnel and locations
At the beginning of the accounting period, the parent company Alisa Bank Plc and its wholly
owned subsidiaries Mobify Invoices Ltd, Lainaamo Ltd, Fellow Finance Estonia OÜ, Fellow
Finance Deutschland GmbH, Fellow Finance Česko s.r.o. formed the group. In May 2024 PURO
Finance Ltd and PURO Finance SPV 1 Ltd became 100 percent owned subsidiaries of Alisa
Group.
The group’s structure was simplified during the financial period. In spring 2024 Lainaamo Ltd
was merged with Alisa Bank Plc and Fellow Finance Estonia ceased to operate. In November
2024 Mobify Invoices Ltd and PURO Finance Ltd were merged into the parent company.
Lainaamo Ltd, Fellow Finance Estonia OÜ and Fellow Finance Česko s.r.o. had no active
business during the financial year.
At the end of December 2024, the group employed 80 people (12/2023: 78). In Finland, 77
people (76) worked at the offices in Helsinki and Turku, and a total of 3 (2) people in other
operating countries.
Corporate governance and remuneration
statement
Alisa Bank publishes the Corporate Governance Statement and the Remuneration Policy and
Statement on its website at the same time as the Annual Report link.
Material events after the review period
There are no known events after the end of the accounting period that would require the
presentation of additional information or that would significantly affect the company’s
financial position.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
20
Outlook for 2025
After a year of changes, Alisa Bank will implement the renewed strategy in the 2025 fiscal
year and continue to develop BaaS partnerships. There are early positive signs in the
general economic situation, although there is still uncertainty regarding the development
of the operating environment. If the economic recovery continues, combined with the
implementation of the bank’s renewed strategy, it will support the bank’s income growth
during the current financial year. For the reasons mentioned above, and due to the impact
of the annual cycle of invoice financing business, favorable development is expected to be
emphasized in the second half of the year.
The profit for the second half of 2024 reflects the current financial state of the renewed Alisa.
The profit before non-recurring items for 2025, is estimated to develop favorably compared
with the current financial state.
Financial goals for the strategy period
Alisa Bank’s board of directors has confirmed the following medium-term (2024-2027) targets
for the company in line with its strategy:
• Income growth: An average annual income growth of 20 percent during the strategy period
• Profitability: Over 15 percent return on equity by the end of 2027
• Operational efficiency: A cost-to-income ratio of less than 50 percent by the end of 2027
• Capital adequacy: 16% capital ratio throughout the strategy period
The Board’s suggestion for profit
distribution and annual general meeting
Alisa Bank focuses on profitable growth and business development within the framework of
targeted capital adequacy. The company does not plan to distribute dividends in the short or
medium term.
The parent company´s distributable assets on December 31, 2024 totalled EUR 2,338,694.37.
The Board of Directors proposes to the Annual General Meeting of Shareholders that no
dividend will be distributed for the financial year 2024.
The company’s annual general meeting will be held in Helsinki on March 20, 2025. The
Financial Statements report will be available to the public in week 9.
Helsinki, 14 February 2025
Board of Directors
Alisa Bank Plc
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
21
Calculation of key ratios
Earnings per share (EPS), undiluted,
EUR
=
Profit for the year
x 100
Share split-adjusted average number of
outstanding shares during period
Adjusted earnings per share
(adjusted EPS), undiluted, EUR
=
Adjusted profit for the year
x 100
Share split average number of outstanding
shares during period
IFRS key ratios
Loanportfolio
The gross book value of the loan portfolio,
which is calculated by subtracting the expected
credit losses from the claims on the public and
public sector entities on the balance sheet.
Cost-income ratio, % =
Operating expenses total
x 100
Income total
Return on equity (ROE), % =
Profit for the year
x 100
Equity (average)
Share of impairment of receivables
in the loan portfolio, %
=
Impairment of receivables (annualized)
x 100
Loan portfolio at the end of the period
Profit before non-recurring
items and taxes
= Profit before taxes +/- non-recurring items *
* Alisa Bank defines non-recurring income and expenses as non-recurring items. Nonrecurring items
include, among other things
• termination and business restructuring costs
• one-off impairment of goodwill and assets (excl. credit losses on the loan portfolio)
• non-recurring capital gains and losses
• items with a profit impact from business acquisitions (excl. purchases and sales of loan receivables)
Alternative key ratios
Total capital (TC), % =
Minimum liquidity buffer
x 100
Net cash and collateral outflows
within 30 days
Total capital (TC), % =
Own funds total (TC)
x 100
Risk-weighted assets (RWA) total
Common Equity Tier 1 (CET1) capital
ratio, %
=
Common Equity Tier 1 (CET1) capital
x 100
Risk-weighted assets (RWA) total
Leverage ratio, % =
Tier 1 (T1) capital
x 100
Exposures total
Net stable funding ratio (NSFR), % =
Available amount of stable funding
x 100
Required amount of stable funding
EU solvency regulation (CRR) key ratios
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
22
Consolidated income statement .......................................................................................23
Consolidated statement of comprehensive income ... ..................................................23
Consolidated balance sheet ............................................................................................... 24
Consolidated statement of changes in equity ................................................................26
Consolidated cash flow statement ................................................................................... 26
Notes to the consolidated financial statements
G1. Accounting principles for the consolidated financial statements .......................27
G2. Corrections to previously reported 2023 figures ...................................................36
G3. Business combinations ................................................................................................ 37
G4. Group’s risk management ...........................................................................................38
G5. Net interest income ...................................................................................................... 46
G6. Fee and commission income and expenses ............................................................46
G7. Net income from securities and currency operations ...........................................47
G8 Other operating income ............................................................................................... 48
G9. Personnel expenses ...................................................................................................... 49
G10. Other administrative expenses ...............................................................................53
G11. Depreciation and impairment losses .....................................................................53
G12. Other operating expenses ......................................................................................... 53
G13. Realized and expected credit losses .......................................................................54
G14. Income taxes ................................................................................................................ 58
G15. Earnings per share .....................................................................................................59
G16. Classes of financial assets and liabilities and fair value s ....................................60
G17. Cash and cash equivalents .......................................................................................61
G18. Receivables from credit institutions ........................................................................61
G19. Claims on public and public sector entities ..........................................................61
G20. Intangible assets .......................................................................................................... 62
G21. Tangible assets ............................................................................................................. 63
G22. Other assets ................................................................................................................. 64
G23. Accrued income and prepayments ......................................................................... 64
G24. Tax assets and liabilities ............................................................................................64
G25. Liabilities to the public and public sector entities ................................................64
G26. Subordinated liabilities .............................................................................................. 64
G27. Other liabilities ............................................................................................................. 64
G28. Accrued expenses deferred income ....................................................................... 64
G29. Equity .............................................................................................................................65
G30. Off-balance sheet items .............................................................................................65
G31. Collaterals received ..................................................................................................... 65
G32. Corporate structure .................................................................................................... 65
G33. Related party transactions ........................................................................................66
G34. Significant events after the period ..........................................................................66
Consolidated financial statements
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
23
Consolidated income statement
Consolidated statement of comprehensive income

EUR 1,000 | Note | 2024 | 2023 restated
Interest income |  | 29,535 | 20,071
Interest expenses |  | -14,460 | -5,314
Net interest income | G5 | 15,075 | 14,757
Fee income |  | 2,981 | 3,180
Fee expenses |  | -1,166 | -1,395
Net fee and commission income | G6 | 1,815 | 1,785
Net income from securities and currency operations | G7 | -14 | 32
Other operating income | G8 | 115 | 126
Total income |  | 16,991 | 16,701
Personnel and operating expenses |  |  |
Personnel expenses | G9 | -6,304 | -5,481
Other administrative expenses | G10 | -4,908 | -4,513
Depreciation and amortization | G11 | -1,284 | -831
Other operating expenses | G12 | -285 | -572
Total operating expenses |  | -12,781 | -11,398
Realized and expected credit losses* | G13 | -5,527 | -5,443
Profit before taxes* |  | -1,317 | -140
Income taxes | G14 | 113 | 3
Result for the year* |  | -1,204 | -138
Result for the year attributable to Equity holders of parent company* |  | -1,204 | -138

EUR 1,000 | Note | 2024 | 2023 restated
Result for the year* |  | -1,204 | -138
Other comprehensive income/loss |  |  |
Items that are or may be reclassified |  |  |
subsequently to profit or loss |  |  |
Foreign currency translation differences |  | 0 | -1
Other comprehensive income after taxes |  | 0 | -1
Comprehensive income, total* |  | -1,204 | -139
Total comprehensive income attributable to Equity holders of parent company |  | -1,204 | -139
Earnings per share | G15 |  |
Earnings per share (EPS), basic, EUR |  | -0.01 | 0.00
Earnings per share (EPS), diluted, EUR |  | -0.01 | 0.00

* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
24
Consolidated balance sheet

EUR 1,000 | NOTE | 2024 | 2023 restated
Assets |  |  |
Cash and equivalents | G17 | 279,361 | 129,364
Claims on credit institutions | G18 | 8,701 | 5,461
Claims on the public and public sector entities* | G19 | 143,711 | 166,438
Intangible assets and goodwill | G20 | 16,517 | 8,169
Property, plant and equipment | G21 | 814 | 516
Other assets | G22 | 865 | 1,857
Accrued income and prepayments | G23 | 388 | 346
Income tax assets | G24 | 229 | 243
Deferred tax assets | G24, G14 | 17 | 3
Assets total* |  | 450,604 | 312,398

EUR 1,000 | NOTE | 2024 | 2023 restated
Liabilities |  |  |
Liabilities to the public and public sector entities | G25 | 394,639 | 268,864
Subordinated liabilities | G26 | 6,218 | 6,210
Other liabilities | G27 | 4,312 | 5,551
Accrued expenses and deferred income | G28 | 8,618 | 6,054
Deferred tax liabilities | G24, G14 | 155 | 0
Liabilities total |  | 413,942 | 286,679
Equity | G29 |  |
Equity attributable to equity holders of the parent |  |  |
Share capital |  | 18,289 | 18,289
Fund of invested non-restricted equity |  | 31,985 | 19,917
Translation difference |  | 14 | 14
Retained earnings* |  | -13,625 | -12,501
Equity attributable to equity holders of the parent* |  | 36,663 | 25,719
Liabilities and equity total* |  | 450,604 | 312,398

* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
25
Consolidated statement of changes in equity

|  | Attributable to the equity holders of the parent |  |  |
|  | Reserve for |  |  |
|  | invested |  |  |
|  | unrestricted | Translation | Retained |
EUR 1,000 | Share capital | equity | differences | earnings | Total equity
Equity on 1 January 2024 | 18,289 | 19,917 | 14 | -12,501 | 25,719
Result for the year | - | - | - | -1,204 | -1,204
Other comprehensive income | - | - | - | - | -
Total comprehensive income | - | - | - | -1,204 | -1,204
Acquisition | - | 11,599 | - | - | 11,599
Share issue | - | 469 | - | - | 469
Other changes** | - | - | - | -5 | -5
Share based payments | - | - | - | 84 | 84
Equity on 31 December 2024 | 18,289 | 31,985 | 14 | -13,625 | 36,663

** 2023 result of Fellow Finance Deutschland GmbH changed by -5 teur after the publication of the 2023 result due to the final closing of the accounts.

|  | Attributable to the equity holders of the parent |  |  |
|  | Reserve for |  |  |
|  | invested |  | Retained |
|  | unrestricted | Translation | earnings/ |
EUR 1,000 | Share capital | equity | differences | restated | Total equity
Equity on 1 January 2023 | 18,286 | 19,917 | 17 | -12,233 | 25,985
Result for the year* | - | - | - | -138 | -138
Other comprehensive income | - | - | -1 | - | -1
Total comprehensive income* | - | - | -1 | -138 | -139
Other changes*** | 3 | - | - | -145 | -142
Share based payments | - | - | - | 15 | 15
Equity on 31 December 2023* | 18,289 | 19,917 | 14 | -12,501 | 25,719

** In the 2023 financial statements, corrections have been made for the following items against the accumulated profits of 2023. The 2022 results of Fellow Finance Deutschland GmbH and Lainaamo Ltd changed by a
total of -18 thousand euros after the publication of the 2022 results due to the final closing of the accounts. The balance sheet was found to contain a deferred tax receivable 127 thousand euros from the time before
Alisa Bank was formed, which cannot be utilized. There was 116 thousand euros left in the balance sheet from the old share-based incentive system, which should have been written off in 2022 at the latest. If the
corrections had been made to the 2022 income statement, the 2022 result would have improved by a total of 16 thousand euros. The rest of the corrections would have been recorded against the accumulated profits of
2022. In other changes, there is also 101 thousand euros from the share reward systems that were dissolved in 2023. There is also an adjustment to the share capital of previous financial periods (3 thousand euros).
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
26

EUR 1,000 | 2024 | 2023 restated
Cash flow from operating activities |  |
Profit (loss) for the period* | -1,204 | -138
Adjustments for items not included in cash flow |  |
Depreciation and impairment | 1,284 | 684
Credit losses* | 5,418 | 5,803
Income taxes | 113 | 3
Other adjustments | 200 | -101
Adjustments total* | 7,016 | 6,389
Cash flows from operating activities before changes in operating assets and liabilities | 5,812 | 6,252
Increase (-) or decrease (+) in operating assets |  |
Claims on the public and public sector entities | 43,075 | -17,586
Other assets | 973 | -346
Increase (-) or decrease (+) in operating liabilities |  |
Liabilities to the public and public sector entities | 125,775 | 22,055
Other liabilities | -5,288 | -1,235
Cash flow from operating activities | 170,347 | 9,140

Consolidated cash flow statement

EUR 1,000 | 2024 | 2023 restated
Investing activities |  |
Investments in tangible assets | -23 | -2
Investments in intangible assets | -562 | -744
Proceeds from sales of tangible assets | 35 | 0
Sales of subsidiaries | 0 | 109
Acquisition of subsidiaries less acquired cash | 2,106 | 0
Cash flow from investing activities | 1,556 | -637
Cash flow from financing activities |  |
Debt securities issued to the public | -5,230 | 0
Liabilities to credit institutions | -13,573 | 0
Paid directed share issue | 469 | 0
Repayments of lease liabilities | -331 | -147
Cash flow from financing activities | -18,666 | -147
Change in cash and cash equivalents | 153,237 | 8,356
Cash and cash equivalents at the beginning of period | 134,825 | 126,469
Cash and cash equivalents at the end of period | 288,063 | 134,825
Cash and equivalents are formed by the following items: |  |
Cash and cash equivalents | 279,361 | 129,364
Claims on credit institutions | 8,701 | 5,461
Cash and cash equivalents at the end of period | 288,063 | 134,825
Notes for cash flow |  |
Interest received | 27,772 | 23,342
Interest paid | -4,162 | -3,136

* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
27
G1. Accounting principles for the consolidated financial statements
Basic information on the company
Alisa Bank Plc (“Alisa Bank”) is a new Finnish digital bank that makes everyday life easier. Our
mission is to provide the market’s seamless selected banking services through partnerships
in the digital channels that customers use daily.Our target customers are small businesses,
deposit customers, and partners.
The Alisa Bank Group has changed during the financial year. In the beginning of the financial
year, the goup consisted of the parent company Alisa Bank Plc and its wholly owned
subsidiaries Mobify Invoices Ltd, Lainaamo Ltd, Fellow Finance Estonia OÜ, Fellow Finance
Deutschland GmbH and Fellow Finance Česko s.r.o. and PURO Finance Ltd and PURO SPV
Finance 1 Ltd from 15 May 2024 onwards. Lainaamo Ltd was merged to Alisa Bank Plc on
15 May 2024. Fellow Finance Estonia OÜ ceased to exist during spring 2024. Mobify Ltd and
PURO Finance Ltd were merged to Alisa Bank Plc on 30 November 2024. There was no active
business in Lainaamo Ltd, Fellow Finance Estonia OÜ and Fellow Finance Česko s.r.o.
Alisa Bank has been authorised by the Financial Supervisory Authority to engage
in credit institution operations. In Germany, it has a credit intermediation licence
(Kreditvermittelungslizens). Alisa Bank Plc offers its services to Sweden and Denmark across
the border as enabled by its license for credit institution operations.
Alisa Bank Plc is listed on the main list of the Nasdaq Helsinki. Alisa Bank Plc’s head office is
located at Bulevardi 21 A, 00180 Helsinki, Finland. The company’s home country is Finland and
its domicile is Helsinki. The legal form of the company is a public limited company. Business
identity code is 0533755-0.
Copies of the Financial Statements and Interim Reports are available on the Bank´s website
www.alisapankki.fi.
Basis for preparation of the financial statements
The consolidated financial statements have been prepared in compliance with IFRS
(International Financial Reporting Standards), approved for application in the EU, and IAS
(International Accounting Standards) valid at the end of 2024, together with their respective
SIC (Standing Interpretations Committee) and IFRIC (International Financial Reporting
Interpretations Committee) interpretations. The notes to the consolidated financial statements
also include information required by Finnish accounting and limited liability company
legislation and the supplementary requirements of authorities´ requirements.
The board of directors approved the financial statements and the annual report in its meeting
on February 14, 2025, and they will be published by February 28, 2025, at the latest. According
to the Finnish Companies Act, shareholders have the opportunity to approve or reject the
financial statements at the general meeting held after their publication. The general meeting
also has the possibility to decide on changes to the financial statements.
The consolidated financial statements have been prepared for a period of 12 months from 1
January to 31 December 2024. The figures for the financial year 2023 have been retroactively
adjusted in accordance with the IAS 8 standard due to a system-technical calculation errors
that occurred in June and December 2023.
The figures of the consolidated financial statements are presented in thousands of euros
unless otherwise indicated, and the figures are rounded to the nearest thousand, and
therefore the sum of individual figures may deviate from the presented total sum.
New accounting principles
During the period, no new standards have entered into force that would affect Alisa Bank’s
financial statements. In 2027, the new IFRS 18 Presentation and Disclosure in Financial
Statements standard will enter into force, which will replace the IAS 1 standard and which
will especially change the way the income statement is presented. Income and expenses
are classified into operating, investment and financing categories, and the standard will also
increase the key figures presented. In the preparation of the financial information, the same
preparation principles and calculation methods have been followed as in the preparation of
the consolidated financial statements for the fiscal year ending on December 31, 2023.
Consolidation principles
In addition to the parent company, the consolidated financial statements include all the
companies in which Alisa Bank Plc has control (subsidiaries). Alisa Bank Plc has control in
a company if it is exposed to, or has rights to, the variable returns of an investee, and can
affect the amount of returns it receives by using its power related to the investee. Control
arises based on voting power. The financial statements of subsidiaries are adjusted if
necessary to correspond with the principles applied in the preparation of the consolidated
financial statements.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
28
Segment reporting
Alisa Bank has only one reportable operating segment. The reported segment covers the
entire group and the segment figures are consistent with the figures of the Alisa Bank Group
and the management’s reporting.
Currencies and foreign Group companies
The consolidated financial statements are presented in euros, which is the operating and
presentation currency of the parent company. The importance of international operations
to the group’s financial position is minor. During the accounting period, the group had active
business operations abroad in Germany, Denmark and Sweden.
In the consolidated financial statements, the income statements of foreign subsidiaries
are converted into euros at the average rate of the financial year, and balance sheets are
converted at the exchange rate of the balance sheet date. The difference in average exchange
rates resulting from different exchange rates in the comprehensive income and balance sheet
is recognised in other comprehensive income. The conversion differences arising from the
consolidation of foreign subsidiaries and from post-acquisition cumulative changes in equity
items are recognised in other comprehensive income.
Financial assets and liabilities
In connection with the initial recognition, the Group’s financial assets and liabilities are
measured and classified in accordance with IFRS 9 Financial Instruments.
Classification of financial assets
The Group’s following financial assets measured at amortised costs:
• Cash and cash equivalents
• Claims on credit institutions
• Claims on the public and public sector entities
Alisa Bank has no financial assets to be recognized at fair value through comprehensive
income or financial assets to be recognized at fair value through comprehensive income.
The classification and measurement of financial assets are based on the business model and
an assessment of cash flow characteristics (SPPI test).
Assessment of business models
Alisa Bank has defined the business models it applies to financial instruments based on
their intended purpose. The business model reflects how a group of financial instruments is
managed in a business unit in order to meet financial objectives. The business model is not
assessed on an individual instrument basis; instead, it is based on classes of financial assets
grouped by the management. The business models defined by Alisa Bank depend on how
well the company manages a financial asset class and whether the management intends
to hold financial assets to collect cash flows, for trading, or both. According to the business
model applied to financial assets by Alisa Bank, financial instruments are managed in order
to collect contractual cash flows.
The solely payments of principal and interest (SPPI) test
The objective of the SPPI test is to evaluate the contractual cash flow characteristics of a
cash asset, and to pass the SPPI test, cash flows must be solely payments of principal and
interest. Alisa Bank assesses the contractual terms of financial assets in order to determine
whether they pass the SPPI test.
If the contractual terms of the financial assets contain other terms that are not related to the
primary loan arrangement and that do not consist only of principal payment and payment of
interest on the remaining principal, the financial assets will be measured at fair value through
profit or loss. If a financial asset does not pass the SPPI test, the agreement terms must cause
a greater than minor exposure to risks or volatility in contractual cash flows. Alisa Bank’s
financial assets pass the SPPI test and their contractual terms meet the SPPI criteria.
Financial assets measured at amortised cost
A financial asset is measured at amortised cost if the item is held as part of a business model
that aims to hold financial assets in order to collect contractual cash flows, and the cash
flows are solely payments of principal and interest. Such items in Alisa Bank include loans to
customers and purchased peer-to-peer loan portfolios.
Financial assets measured at amortised cost are initially recognised at fair value inclusive
of expenses immediately caused by the acquisition, such as loan broker commissions.
Fee income directly related to lending is charged only for a part of business loans. Their
importance is minor and therefore they are not included in the fair value of the financial
asset, but are recognized as commission income.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
29
After initial recognition, the items are measured at amortised cost using the effective interest
rate method. This refers to the interest rate at which the future payments that are expected
to become payable or receivable during the financial instrument’s expected exercise period
are discounted at the financial instrument’s net book value. The book value is adjusted by a
credit loss provision using the expected credit loss measurement model.
Reclassification and derecognition of financial assets
Financial instruments are reclassified only if a business unit’s business model changes
substantially. Financial assets and liabilities are recorded according to the trading date.
Previously recorded profits and losses are not modified retroactively.
A financial asset is derecognised from the balance sheet only when the contractual rights to
the asset’s cash flows cease to exist, the contract is terminated, or the asset is transferred to
another party and the transfer fulfils the requirements of derecognition.
Financial assets and liabilities shall be offset and presented in net terms on the balance sheet
only when the Company has a legally enforceable right to set off the recognised amounts and
intends either to settle on a net basis, or to realise the asset and settle the liability simultane
-
ously. There are no offset items in the consolidated balance sheet.
Classification of financial liabilities
The Group’s following financial liabilities are classified and measured at amortised costs:
• Liabilities to the public and public sector entities
• Debt securities issued to the public
• Subordinated liabilities
The company has no financial assets to be recognized at fair value through comprehensive
income.
Derecognition of financial liabilities
The Company must derecognise a financial liability or part of it from its balance sheet only if
the liability has ceased to exist, in other words when the obligation specified in the contract
is either discharged or cancelled or expires. Alisa Bank derecognises financial liabilities when
the obligation specified in the contract is discharged.
Impairment of financial assets
The impairment model applied by the Company is based on calculating expected credit
losses (ECL). In the Company, expected credit loss calculation is applied to financial assets
measured at amortised cost, the most substantial part of which is loan receivables from
customers. Impairments also concern off-balance sheet commitments, such as unused
credit facilities related to overdraft facilities. A simplified impairment model is applied to
accounts receivable.
The key components of the model based on expected losses are assessing substantial
increases in credit risk, and the the main factors in calculation of expected credit loss. The
calculation model used by the Company is based on the historically verified credit risk of
loans by risk class, historically verified quantitative factors that correlate increases in credit
risk, and estimates provided by a forward-looking macroeconomic model.
Expected credit losses (ECL) are calculated using the following formula with weighted
probabilities: EAD (amount of exposure at the time of default when realisation of collateral is
included) * PD (probability of default) * LGD (loss % of exposure). The ECL is an indicator of
the Company’s estimate of how much less cash flow it will receive on the loan than it should
under the contract.
A three-stage model is used to determine credit losses. In the first stage, the likelihood that
the debtor will experience payment issues within the following 12 months is estimated.
Stage 1 includes items where credit risk is estimated not to have materially increased after
initial recognition or the credit risk of the item is estimated to be low. If the debtor’s credit
risk has materially increased after initial recognition, expected credit loss is estimated for
the entire duration of the contract (stage 2). Assets in stage 3 are assets with impaired value
regarding which matters have already come to light that will have a negative impact on
future cash flows, including the insolvency of the counterparty.
The interest income on financial assets is presented for gross principal for financial assets in
stages 1 and 2, and for net principal, i.e., after provisions, for items in stage 3.
Evaluation of substantial increase in credit risk
A key component of the ECL model is the analysis of counterparties’ credit risks and changes
in credit risks that take place after a loan is granted. For individual loans, the Company
monitors various quantitative factors, and macroeconomic trends that are estimated to
be of significance in evaluating default risk. The most significant quantitative factor is the
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
30
delay in payments. In addition, for business customers, e.g. information about the company’s
payment behavior and delays elsewhere than in Alisa Bank. In these estimates, factors that
are accessible without unreasonable expenses and effort are generally considered. In the
event of a substantial increase in credit risk, receivables are classified based on the increase
in the risk level of the loan receivable to stages 2 and 3.
Characteristics of loans classified as stage 2
If a loan’s credit risk has increased substantially since the loan was issued, the exposure’s
risk level is raised to stage 2. In stage 2, the expected credit loss of the exposure or loan is
estimated for the entire exercise period. The following criteria indicate that credit risk has
increased substantially:
• The payments on a receivable are delayed by more than 30 days, for non-technical reasons.
• Significant changes in the counterparty’s financial position, such as a substantial
deterioration of creditworthiness and financial status.
• Forbearance i.e. a concession or arrangement for liability granted by the bank, when the
customer has or is likely to have repayment difficulties.
• Other characteristics that have a substantial impact on credit risk or the value of collateral.
Characteristics of loans classified as stage 3
Individual loans whose values have verifiably declined are recognised in stage 3. One or
several events have come to light with respect to the counterparty that will have a negative
impact on future cash flows. These can include one of the following, for example:
• Payments (repayment or interest) are delayed by more than 90 days.
• The debtor’s bankruptcy or liquidation, or other significant financial difficulties.
• The debtor is declared non-performing. A forborn loan moves to stage 3 when the bank
assesses the debtor as non-performing.
Evaluation of elevated credit risk and default
In the Company, the application of elevated credit risk and default criteria are primarily based
on (in addition to the above-mentioned criteria) the delay in credit repayment, i.e., the number
of days of delay. Technical past due situations are not considered in the evaluation of payment
delay. A technical past due situation can be considered to have occurred if it results from
an error or system error of the Company, including failure of the payment system, delay in
allocation of the payment on the customer’s account, or any other similar situation.
With respect to exposures, the Company applies the insolvency definition in relation to all
the borrower’s payment obligations, meaning that if there are defaults for one exposure,
then all exposures to that debtor should be considered defaulted. The Company applies
product-specific, euro-denominated thresholds to the volume of the default.
The debtor is classified as defaulted when the following conditions are met:
• More than 90 days have passed since the end of default status
• No default criteria are valid at the time of review
• In the case of forbearance, a recovery period of one year applies when the debtor returns
to non-default status
In order to evaluate the elevated credit risk associated with larger loans (business financing),
the Company regularly monitors other factors that can cause credit risk to increase in
addition to delayed payment, including substantial changes in the company’s financial
position, delays in payment of purchase invoices, and changes in external credit ratings
or changes in collateral situation. For these, the Company uses the monitoring services of
credit information registers, which provide alerts on defaults and changes in credit rating
of credit customers. The Company reviews the situation of the credit portfolio regularly
(delayed payments, negative changes in creditworthiness, notified customer defaults,
collateral shortfalls and setting of additional collateral), and updates the estimated increase
in credit risk for these loans, if necessary.
Forbearance is always an indication of a significant increase in credit risk. Forbearance is
a concession or arrangement for liability granted by the bank when the customer has or is
likely to have repayment difficulties.
SICR determination considers forbearance only after the forbearance measure has been
granted. However, if a debtor has observed or anticipated financial difficulties, but no
forbearance measures have been granted, this can still indicate unlikeliness to pay which in
turn may trigger default and therefore transfer the debtor’s exposures to stage 3.
Recovery from default to non-default is described below in the section Application of the
credit loss calculation model.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
31
Calculation model for expected credit losses
Expected credit losses is an estimate, with weighted probabilities, of the difference between
the following cash flows: contractual cash flows of the exposure – the cash flows that the
bank expects to receive from a contract. The following formula is used to define the expected
credit loss: ECL (expected credit loss) = PD (probability of default) * LGD (total loss when
realisation of collateral is included) * EAD (amount of exposure at the time of default when
realisation of collateral is included).
PD, LGD and EAD are evaluated separately for each contract and for each forthcoming year
during the lifetime of each evaluated contract. These three components are multiplied
together. The income received for each upcoming year (stages 2 and 3) or for only the first
year (stage 1) is discounted at the time of reporting and added together. The discount rate
applied in the ECL calculation is the effective interest rate of the repayment plan under the
original contract.
Determining the probability of default
The probability of default (PD) is the likelihood that the borrower will default on its future
obligations within the following 12 months. The probability is defined separately for the
subsequent years during the lifetime of the loan. For stage 2 and 3 loans, the annual
probability of default is considered for the entire lifetime of the loan, while for stage 1 loans,
the probability is considered only for the first year.
For consumer loans and corporate loans, the starting point for the PD percentage is defined
as the proportion of non-performing loans of the loans historically issued by the company
in each risk category, taking account of the payment history and the amount of time that
the loan has already been repaid at the time of reporting. The PD figures are updated every
six months. A high overall number of issued loans allows the PD percentage to be evaluated
reliably for each risk category.
In addition, in the PD evaluation of stage 2 loans, the debtor’s increased likelihood of default
at the time of reporting on the basis of the debtor’s payment delay at the time, taking into
account all the debtor’s loans and any payment arrangements that have been agreed upon, is
taken into account.
Amount of exposure at the time of default
The amount of exposure associated with a receivable at the time of default is defined as
the unpaid principal of the receivable and the interest accrued at the time of reporting.
A portion equivalent to the collateral coverage ratio of the collateral connected to the
receivable is deducted from this value.
The collateral coverage ratios of the collateral of the receivable are estimated in accordance
with separate guidelines on the measurement of collateral, and these are updated regularly.
Receivables with collaterals in Alisa Bank exist mainly in corporate financing.
Furthermore, for credit facility-type receivables, an estimate of the portion of the debtor’s
unused credit facility that the debtor will draw down during the following year is added to
the exposure associated with the receivable. These off-balance sheet exposures and the
associated credit loss provision are calculated and reported separately.
Effects of macroeconomic developments on the probability of losses
The determination of the final PD percentage also takes into account the impact of a
forward-looking macroeconomic model. In the applicable macroeconomic model, the key
variable is the gross domestic production and the unemployment rate.The basis of future
development estimate is the forecasts of the International Monetary Fund (IMF). The
Company evaluates macroeconomic trends and forms three scenarios based on them: a
basic, negative and positive scenario. The scenarios estimate the probability with which the
macroeconomic variable that correlates with the default risk of the target market performs
as expected in the future. The effects of the scenarios on the PD percentage based on risk
class are weighted in accordance with the Company’s view.
Definition of total loss in a default situation
Loss given default (LGD) determines the total loss in a payment default situation.
The most important variables that influence the calculation model with respect to LGD are
the likely sale price of non-performing loans to collection agencies based on contracts that
are in force with agencies, an evaluation of repayments of loans as a result of collection
measures, and the payment delay on the loan at the time of reporting.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
32
Application of the loss allowance model
The probability of losses from stage 1 loans is defined by risk category and adjusted by the
weighting of the macroeconomic scenario model. The probability of losses and the overall
expected loss given default are applied to the cash flow statement of the loans for the next 12
months, which is discounted to the present value.
In stage 2, the probabilities of credit losses are first determined by risk category, after
which they are adjusted by the weighting of the macroeconomic scenario model, and by the
coefficient reflecting the observed increase in default risk. The probability of losses and the
overall expected loss given default are applied to the loans’ discounted cash flow statement
for the entire exercise period.
In stage 3, the loans’ probability of loss is 100 per cent. The exercise periods of non-
performing loans are evaluated and the cash flows, which are adjusted by the overall
expected loss, are discounted to the present value.
The results produced by the calculation model are reported regularly in the Group’s
Management Team and Board of Directors. The Group’s financial administration together
with the Group risk management evaluates credit risks and maintains the calculation model.
Stage 3 exposures are mostly defaulted exposures. Defaulted exposures stay in defaulted
status for at least 90 days after the latest default-triggering event. After the probation period,
the exposure can be cured to non-defaulted status, which will lead the exposure to recover to
stage 1 in ECL calculus.
Stage determination ignores stages at past reporting dates. An exposure will recover to stage
1 if the requirements for SICR or stage 3 don’t hold at the reporting date.
Recognition of actual credit losses
A loan is recognised as an actual credit loss when it is likely that the corresponding amount
will no longer be obtained. Generally, the credit losses of unsecured loans are recognised
when the receivable falls due and the loan is terminated (generally when the payment delay
exceeds 90 days), after which the receivable is sold to a collection agency. Alternatively, a
credit loss can be recognised when the debtor is declared insolvent, for example due to filing
an application for debt restructuring, or due to other circumstances on the basis of which
the debtor is declared insolvent. The credit losses of secured receivables are recognised no
earlier than when the collateral has been realised and allocated to the receivable. Even then,
the final receivable is not necessarily recognised as a credit loss if a payment plan has been
set up for it. Even though the receivable is recognised as a credit loss, the collection will still
continue as post-collection. After the recognition of the credit loss of an individual loan,
the loan in question is no longer included in the calculation of expected credit losses, and
therefore, impairment recognition is no longer carried out on it.
Group income and expesese
The group’s income consists of net interest income, net fee and commission income, net
income from investing activities and other operating income.
Interest income and interest expenses
Interest income mainly consists of granted loans, liquidity reserve income and to a small
extent from peer-to-peer lending business. Interest expenses consist of customer deposit
interest and other fundraising interest.
Interest income and expenses arising from financial assets and liabilities are essentially
recorded using the effective interest method. Fees that form a significant part of the effective
interest rate on financial assets or liabilities, such as loan brokers and deposit comparison sites
commissions, are recognised using the effective interest method on the income statement
under net interest income. The calculation method was refined during the 2024 financial year in
relation to the commissions of partners in deposits and sales invoice financing.
Commission income and expenses
Commission income mainly consists of granted loans. According to the nature of the service,
the fees are recognised either over time or at one point in time, as a rule, on a performance
basis, when control over the performance obligations of the services has been transferred
to the customer.
Account management fees and the continuous commission for loans are recognised
as income over time. In these services, the customer benefits from the service as it is
produced. Fees for payment reminders are recognised as revenue at one time. A credit loss
provision is applied to account management fees and fees for payment reminders because
the receipt of these fees is subject to uncertainty.
The opening fee income, which is closely related to the loan granting transaction, is
collected only in part of the corporate loans. Their importance is minor and therefore
they are recognized as commission income when the loan is withdrawn. Additionally, the
company collects other fees for additional services used by the borrower, such as changes
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
33
in the repayment plan. These are charged to the borrower, as a rule, for the loan when the
borrower changes the payment program or is added to the next loan repayment bill as a
separate fee.
Fee expenses consist of, among other things, from external data sources utilized in the
lending and loan management process and from bank charges of customer reserve accounts
in the peer-to-peer lending business.
Net income from securities and currency operations
Exchange rate income and expenses are recorded as net income from securities and currency
operations. In addition, possible recurring income from investments, valuation profit and
losses and sales profit and losses are recorded in this group.
Other operating income
Income that does not fall under the previous items is recognised as other operating income.
Recurring other operative income for the bank consists of the service where the bank
produces integrations of banking services with financial management systems.
Intangible and tangible assets
Intangible assets
Intangible assets mainly consist of internally created information systems, related
development work and intangible assets related to customer relationships recorded in the
balance sheet in connection with business acquisitions. Intangible assets are recognised
in the balance sheet at cost if their acquisition cost can be reliably measured and if it is
probable that the intangible asset will produce future economic benefits. Expenses that were
recognised in accordance with the requirements of IAS 38 Intangible Assets with respect to
the own work portion related to IT projects were capitalised under data systems.
Intangible assets are amortised on a straight line basis over their estimated useful economic
lives. Amortisation periods of intangible assets is 3–10 years. The Group evaluates the
amortisation periods and amortisation methods at least at the end of each financial year. The
amortisation is commenced when an asset is ready to be used. The unamortised acquisition
cost of an asset is fully amortised in one single step if it is deemed that the intangible asset is
no longer of benefit to the Group. If the benefit is deemed to have declined substantially in
relation to the unamortised acquisition cost, then an impairment is recognised.
Separately acquired intangible assets are measured upon initial recognition in the
accounts at acquisition cost. After the initial recognition, intangible assets are recognised at
acquisition cost less accumulated amortisation and accumulated impairment losses. With
the exception of capitalised development costs, internally generated intangible assets are
not capitalised, and expenses related to them are reflected in profit or loss for the period in
which the expenses were incurred.
Goodwill
The goodwill generated in business combinations is recorded in the amount by which the
transferred consideration exceeds the fair value of the acquired net assets. Goodwill is tested
annually and when an event or change in circumstances shows that the balance sheet value
may not be recoverable. Depreciation according to the plan is not recorded on goodwill.
For impairment testing, goodwill is allocated to cash-generating units, in the case of Alisa
Bank, for the entire group. If for a cash-generating unit the amount of recorded goodwill
exceeds the recoverable amount, the difference is recorded as a impairment. There is more
information about goodwill testing in appendix G20.
Tangible assets
Tangible assets mainly consist of office furniture and, to a lesser extent, IT equipment.
Tangible assets are measured at historical cost less accumulated depreciation and any
impairment. Acquisition cost includes the costs that are directly caused by the acquisition of
the tangible asset in question.
Tangible assets are depreciated using the straight-line method based on their estimated
useful economic lives or residual depreciation 25%. The depreciation time using the
straight-line method for furniture is 4-5 years and 4 years for IT equipment. The estimated
useful lives and residual values are checked at least on the end date of each financial year.
If these differ substantially from previous estimates, the depreciation periods are changed
accordingly. Depreciation is discontinued when an asset is classified as for sale.
Sales profits or losses arising from the retirement of fixed assets are calculated as the
difference between the selling price and the book value and are recognised through profit or
loss in other operating income or costs.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
34
Impairment of tangible and intangible assets
In connection with the financial statements, the management reviews the impairment of
tangible and intangible assets. Impairment tests require the management team’s discretion
and assessment of the asset’s future financial benefit and useful life.
Right-of-use assets and lease liabilities
According to IFRS 16, a lease is a contract that conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. At the inception of a
contract and in situations in which the terms of a contract are amended, the Company
evaluates whether the contract contains a lease. Alisa Bank assesses control of use on the
basis of the following criteria in accordance with IFRS 16: the contract contains an identified
asset in which substantially all the economic benefits from use of the identified asset are
directed to Alisa Bank, and Alisa Bank has the right to direct the use of the asset.
The lease term begins at the starting time specified in the lease. The date of termination
of the lease is the date of termination according to the lease. If the lease is of an indefinite
duration, the date of termination is evaluated on a lease-by-lease basis. The evaluation is
based on the Company’s strategic situation and on costs that would arise if a leased asset
were replaced by another asset.
IFRS 16 contains two exemptions that facilitate recognition and measurement. Alisa Bank has
elected that leases with a term of 12 months or less and right-of-use assets of a value of no
more than approximately EUR 5,000 are not recognised in the balance sheet. These short-
term leases and right-of-use assets of low value are directly expensed during the lease term.
Right-of-use assets
Alisa Bank’s leases that are capitalised in the balance sheet are based on the Company’s
leased premises and parking spaces. At the starting time of the lease, right-of-use assets
are measured at acquisition cost, which is based to the amount according to the original
valuation of the lease liability. After the original measurement of fixed assets, fixed assets are
measured at original cost less accumulated depreciation and actual impairment. Right-of-use
assets are depreciated during the lease term and the depreciation is recognised as expenses
in the income statement under depreciation, amortisation and impairment.
Lease liabilities
At the starting time of the lease, the original bookkeeping value of the lease liability consists of
the current value of leases payable during the lease term, discounted by the interest rate on
Alisa Bank’s additional credit. After the original value of the lease liability is determined, lease
liabilities are measured at the original value less the principal portion of paid lease payments.
The amount of the lease liability is reassessed if future lease payments change because of
an index or price change, or as a result of an extension of the lease term, for example. If the
amount of the lease liability is adjusted in conjunction with the reassessment, a corresponding
adjustment will also be made to the right-of-use assets item. Interest expenses caused by the
lease liability are recognised in the income statement under financial expenses.
Lease payments are discounted using the incremental borrowing rate because internal
interest rates are not available. The Group’s incremental borrowing rate is determined on
the basis of received financing offers and market conditions and is reviewed annually. The
business premises lease agreement does not include options to extend.
Income taxes
Income taxes comprise current and deferred tax.
The current tax for the period is recognised in the income statement. Current tax is
calculated for the period in accordance with the regulations of each country on the basis of
the enacted tax rate. The tax liabilities or receivables that are based on the taxable profit for
the period are recognised for the amount that is expected to be paid to the tax authorities
or to be received from them as credit. The amount is determined using the tax rates and tax
laws that have been enacted or substantively enacted by the balance sheet date in countries
in which the Group operates and produces taxable income.
The Group will recognise a deferred tax asset for deductible temporary differences only to
the extent that it is probable that taxable income will be produced in the future against which
the Group can utilise the temporary difference. The amount of the deferred tax asset and
the probability that the deferred taxes can be utilised are re-evaluated at the end of each
reporting period.
Deferred tax assets and liabilities arising from lease agreements (right-of-use assets) are
netted in the balance sheet. Deferred tax assets and liabilities netted in the balance sheet
are shown separately in the notes on deferred taxes.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
35
Earnings per share
The undiluted earnings per share are calculated by dividing the profit for the financial year
attributable to the parent company’s shareholders by the average number of outstanding
shares during the period.
When calculating the diluted earnings per share, the figures used in the calculation of the
undiluted earnings per share are adjusted. This is to take account of the after-tax impact
of any items recognised through profit or loss in relation to ordinary shares, and also the
weighted average number of the ordinary shares that would have also been outstanding if all
dilutive potential ordinary shares had been converted into shares.
If the profit for the presented periods is negative, the earnings per share adjusted by the
dilutive effect is the same as the undiluted earnings per share.
Employment benefits
Employee benefits consist of short-term employee benefits, benefits related to termination
of employment and post employment benefits. Short-term employment benefits such as
salaries and fringe benefits, annual holidays and performance bonuses are expected to
be paid in full within 12 months from the end of the accounting period during which the
employees perform the relevant work. Benefits based on termination of employment consist
of severance pay. Post-employment benefits are limited to defined contribution pension plans
in connection with the statutory pension insurance, the costs of which are recorded as an
expense of the accounting period in which payment applies.
Alisa Bank has a share-based incentive programs for the group’s key personnel. Payments
are partly share-based and partly as cash. The monetary contribution aims to cover the
costs incurred by the key person from the remuneration taxes and tax-related payments.
The benefits granted in the arrangement have been valued at the fair value at the time of
their grant and recorded as an expense in the income statement for the period in which the
employee has fulfilled the conditions. The amount to be recorded as an expense is based on
an estimate of the number of the shares to which the right is expected to arise. The benefits
are fully recorded as share-based program and the expense is carried forward over the entire
period of the right. The expense is recognised under personnel expenses. On each reporting
date, the Company revises its estimates on the amount of shares. The impact of the revision
is recorded in income statement. The amount to be recorded as an expense will be adjusted
later to correspond to the number of shares finally granted. The requirements of the IFRS 2
Share-based payments standard apply to the incentive system.
Equity
Equity consists of share capital, the invested unrestricted equity reserve, translation
differences and retained earnings. The assets of the reserve for invested unrestricted equity
are used to develop the company’s operations, invest or cover losses.
Matters requiring management judgement and estimation
The drawing up of financial statements in accordance with IFRS standards requires that
certain accounting assessments are made. In addition, management must use its judgement.
Judgement affects the choice of accounting policies and their application, the amount of
assets, liabilities, income and expenses to be reported and the notes that must be
presented. The management will exercise its judgement on the basis of estimates and
assumptions that are based on earlier experience and the best view available to it on the
balance sheet date concerning future performance. Estimates and decisions based on
judgement are constantly monitored and they are based on actual performance and certain
other factors such as expected future events that are reasonably anticipated to occur
considering prevailing circumstances. Actual performance may deviate from estimates.
The accounting of expected credit loss in accordance with IFRS 9 is based on internal
models that contain an assumption of a change in credit risk and probability of default.
Information focusing on the future is also taken into account, as well as an evaluation of the
performance of macro variables in various scenarios, and of the probability of each scenario
taking place. Furthermore, in the determination of expected credit losses, management
judgement is observed in the evaluation of the credit loss provisions of individual
corporate loans with overdue payments, while also taking into account the business
area management’s analysis of the collateral coverage of the security set for loans, of the
progress and situation of collection processes, as well as its overall judgement of a debtor’s
ability to pay.
Related to business acquisitions, the fair value measurement of acquired assets and
liabilities is based on estimates. As part of the acquisition process, the allocation of goodwill
involves management judgment. The value of goodwill is tested regularly for impairment.
Intangible assets are tested when there are indications of impairment. Impairment testing
requires management’s judgment and estimates of the future cash flows of the assets, along
with underlying assumptions. Also, management judgement has been applied in estimating
the end dates of premise leases in order to recognise the leases in accordance with IFRS 16.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
36
G2. Corrections to previously reported 2023 figures
The figures for the financial year 2023 have been retroactively adjusted in accordance with
the IAS 8 standard due to a system-technical calculation error that occurred in June and De
-
cember 2023. The ECL provision was erroneously 443 thousand euros too small. Error was
258 thousand euros in December 2023 and 185 thousand euros in June 2023. Alisa Bank’s
result would have been 443 thousand euros lower than reported in the financial state
-
ments, i.e. the revised result for the fiscal year 2023 is -138 thousand euros instead of 306
thousand euros. In the income statement, the adjustment was made to the “impairment of
receivables” line, and the adjustment affects the sum lines after that. In the balance sheet,
the correction had a decreasing effect on the line “Claims on the public and public sector
entities” and “result for the year”. Corrections have also been made to the 2023 cash flow
statement, statement of changes in equity, the notes and key figures that are affected by
the above-mentioned accounts.

| Jan-Dec 2023 | Jan-Dec 2023 | Jan-Dec 2023
| reported 2023 | correction | restated
Realized and expected credit losses | -4,999 | -443 | -5,443
Profit before taxes | 303 | -443 | -140
Result for the year | 306 | -443 | -138
Earnings per share (EPS), basic, EUR | 0.00 | 0.00 | 0.00
Earnings per share (EPS), diluted, EUR | 0.00 | 0.00 | 0.00
Claims on the public and public sector entities | 166,882 | -443 | 166,438
Assets total | 312,841 | -443 | 312,398
Retained earnings | -12,044 | -443 | -12,487
Equity attributable to equity holders of the parent | 26,162 | -443 | 25,719
Liabilities and equity total | 312,841 | -443 | 312,398

| Jul-Dec 2023 | Jul-Dec 2023 | Jul-Dec 2023
| reported 2023 | correction | restated
Realized and expected credit losses | -2,765 | -258 | -3,023
Profit before taxes | -87 | -258 | -345
Result for the year | 42 | -258 | -216
Earnings per share (EPS), basic, EUR | 0.00 | 0.00 | 0.00
Earnings per share (EPS), diluted, EUR | 0.00 | 0.00 | 0.00
Claims on the public and public sector entities | 166,882 | -443 | 166,438
Assets total | 312,841 | -443 | 312,398
Retained earnings | -12,044 | -443 | -12,487
Equity attributable to equity holders of the parent | 26,162 | -443 | 25,719
Liabilities and equity total | 312,841 | -443 | 312,398
| Jan-Jun 2023 | Jan-Jun 2023 | Jan -Jun 2023
| reported 2023 | correction | restated
Realized and expected credit losses | -2,235 | -185 | -2,420
Profit before taxes | 390 | -185 | 204
Result for the year | 264 | -185 | 79
Earnings per share (EPS), basic, EUR | 0.00 | 0.00 | 0.00
Earnings per share (EPS), diluted, EUR | 0.00 | 0.00 | 0.00
Claims on the public and public sector entities | 165,250 | -185 | 165,065
Assets total | 287,527 | -185 | 287,431
Retained earnings | -11,894 | -185 | -12,079
Equity attributable to equity holders of the parent | 26,312 | -185 | 26,126
Liabilities and equity total | 287,527 | -185 | 287,431

ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
37
G3. Business combinations
Alisa Bank Plc and PURO Finance Ltd announced on 10 April 2024 that they had agreed on the
combination of the companies through a share exchange whereby Alisa Bank acquires the
entire share capital of PURO Finance from its previous owners. According to the share exchange
agreement, Alisa Bank acquired PURO Finance from its previous shareholders for a purchase
price consisting of 58,878,721 new issued Alisa Bank shares. The final transaction took place
on May 15, 2024, when control passed to Alisa Bank Plc. PURO Finance specializes in factoring,
i.e. invoice financing. Together with its partners, PURO offers a reliable and effortless accounts
receivable financing service that combines customer invoicing, financing, credit insurance,
collection and accounting. PURO Finance was merged with Alisa Bank Plc on November 2024.
The acquisition has been treated in the consolidated financial statements as a business
combination using the acquisition cost method. EUR 0.9 million of the purchase price was
allocated to customer contracts and EUR 7.3 million goodwill was generated. Goodwill reflects
the synergies arising from the merger both on the income and expense side. The expected
synergies on the revenue side are mainly based on cross-selling opportunities, a growing
number of customers and improved competitiveness. Financial synergy is achieved when PURO
Finance’s debt financing is replaced by Alisa Bank’s financing based mainly on deposit funds.
Synergies on the cost side are expected to be achieved by cutting overlapping operational costs,
making operations more efficient when the companies adopt the best practices of both parties,
and through enhanced credit risk management as a reduction in the probability of credit losses.
The valuation of customer contracts at the time of acquisition is based on PURO Finance’s
historical data on customer behavior.
In the targeted issue, Alisa’s price per share was EUR 0.2, the number of new shares was
58,878,721 shares, so EUR 11,775,744 was the purchase price. The per-share price of EUR 0.2
was the closing price on May 15, 2024.
The pre combination operating income of PURO Finance from 1 January to 14 June 2024
was EUR 9.5 million. If the acquisition had already taken place at the beginning of 2024, the
operating income of PURO Finance would have been included in the Alisa Group as such. Alisa
Bank’s income 2024 includes PURO Finance’s income of approximately EUR 5.9 million.
The transaction costs of the acquisition were EUR 1.4 million. EUR 0.8 million of the transaction
costs are booked in income statement as non-recurring items. Transaction costs are booked in
other operating expenses or administrative expenses according to their nature. The rest of the
costs are shown in equity as costs incurred from the issuance of shares and as costs recorded
in PURO Finance’s result before the combination.
The main differences between PURO Finance’s balance sheet prepared in accordance with
FAS accounting and fair values are related to the valuation of the credit portfolio. EUR -1.0
million impairment adjustment was applied to the credit base acquired in connection with
the combination due to the decrease in value due to credit risk (POCI according to IFRS 9,
purchased or originated credit impaired). That part of the credit portfolio in question has
been valued at zero at the time of acquisition and is therefore not subject to an ECL provision.
The fair value of the acquired credit portfolio at the time of acquisition was EUR 25.5 million.
In addition, estimates based on historical data related to customer contracts have been
used in the valuation of customer contracts identified as a new balance sheet item in the
combination. The management’s judgment is also related to the allocation of goodwill as part
of the acquisition process. The fair values and acquisition price of the acquired net assets are
presented in the table below.

| Fair values of acquired assets and liabilities
EUR 1,000 | on 14 May 2024 (PURO Finance Group)
Assets |
Cash and equivalents | 2,106
Claims on the public and public sector entities | 26,778
Adjustment to the value of the loan portfolio | -1,012
Intangible assets and goodwill | 1,403
Property, plant and equipment | 56
Other assets | 11
Accrued income and prepayments | 11
Assets total | 29,353
Liabilities |
Liabilities to credit institutions | 13,573
Debt securities issued to the public | 5,230
Other liabilities | 5,562
Accrued expenses and deferred income | 321
Deferred tax liabilities | 177
Income tax receivables | 40
Liabilities total | 24,902
Acquired net assets | 4,451
Acquisition consideration (58,878,721 shares) | 11,776
Goodwill | 7,325

ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
38
G4. Note on risk management
Alisa Bank focuses on retail banking operations and offers selected banking and financial
services to both personal and business customers. Customer acquisition is based on both
Alisa Bank’s own and its partners digital channels. Risk management plays a key role in Alisa
Bank’s operations from the perspective of business management and managing changes in
the operating environment. The main risk categories are credit risk, operational risk, market
risk and liquidity risk.
The Group’s internal control, risks and risk management and the Pillar III disclosure
requirements pursuant to Part 8 of EU Capital Requirements Regulation (575/2013), are set
out in more detail in the Alisa Bank’s Capital and Risk Management Report, which is published
as a separate report in conjunction with the annual report.
1. Organisation of risk management
Risk management refers to activities aimed at identifying, analysing and preventing risks.
The aim is to support the smooth implementation of Alisa Bank’s strategy and revenue
generation.
The company’s Board of Directors has a primary responsibility for the Group’s risk
management. The company’s Board of Directors has determined the level of risk that the
company is willing to accept in order to achieve its strategic goals. The accepted level of risk is
based on a risk appetite framework, on which the key principles and rules guiding risk-taking
are also based. The objective is to ensure the adequacy of risk-bearing capacity in relation
to all material risks. The Board of Directors confirms the risk management principles and
responsibilities according to which risk management and internal control are organised.
The company’s risk management is to ensure that the company’s major risks are identified,
evaluated, and measured. Risks are monitored and managed as part of the day-to-day
management of the business areas. Risks are managed through risk assessments, measures
taken based on assessment and systematic monitoring. Functions that are independent of
the business areas have been organised in a way that ensures efficient and comprehensive
risk management and internal control as follows:
• Risk Control function
• Compliance function responsible for ensuring compliance with the rules
• Internal audit function
The aim of the Risk Control function is to promote systematic and proactive risk
management that allows the company’s business to be developed in a safe manner. In the
company’s organisation the Risk Control function operates directly under the supervision
of the CEO and reports to the Board of Directors, the CEO and other members of the
Management Team.
The company’s risk management is founded on the “three lines of defence” model:
1. The first line of defence consists of the business units. The managers of the business
units are responsible for ensuring that risk management is at a sufficient level in each
respective unit.
2. The second line of defence consists of the Risk Control and Compliance functions. The
Risk Control function oversees compliance with the risk limits granted to the business
units, as well as compliance with risk-taking policies and guidelines. The Risk Control
function reports its observations to the Credit and Risk Committee, the Management
Team and the company’s Board of Directors. The Compliance function is responsible for
ensuring compliance with regulations in all of the company’s operations by supporting
the Management Team and the business units in applying the provisions of the law,
official regulations and internal guidelines, and in identifying, managing and reporting on
any risks of insufficient compliance with the rules.
3. The third line of defence is the internal audit. The internal audit assesses the functioning
of the Group’s internal control system, the appropriateness and efficiency of the
functions and compliance with guidelines. It does this by means of audits that are based
on the internal audit action plan adopted annually by the Board of the company.
2. Managing capital adequacy and own funds
The objective of Alisa Bank’s capital adequacy management is to secure the sufficiency of
the company’s capital in relation to all material risks of its operations. In order to achieve
this goal, the company identifies and evaluates all risks relevant to its operations and, based
on these, sizes its risk-bearing capacity to correspond to its overall risk position. Capital
adequacy management process plays a key role in defining the overall risk position. The
capital adequacy management process is based on the capital requirements according to
Pillar I of the Capital regulation and risks outside of the Pillar 1, such as the interest rate risk
of the banking book and the business risks.
Alisa Bank continuously monitors that its own funds are sufficient to cover the material risks
affecting the company. Capital adequacy and all material risks are monitored by means of
monthly reports in the Board of Directors and the Management Team, and to the Credit and
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
39
Risk Committee. The company’s Board of Directors has confirmed a target of at least 16 per
cent for the overall capital adequacy ratio. The aim is to ensure the sufficiency of capital also
during downturns.
More detailed information on the Group’s capital adequacy is available in the Board of
Directors’ Report and in the Pillar 3 report in accordance with the EU Capital Requirements
Regulation in the Capital and Risk Management publication. It comprehensively addresses risk
position and risk management principles of Alisa Bank.
3. Credit risk
The credit risk of the company’s operations mostly stems from lending to its customers.
Credit risk is defined as the risk of loss resulting from loan customers and other
counterparties not being able to meet their contractual obligations, and from issued collateral
not covering Alisa Bank’s receivables.
During Alisa Bank’s third year of operations, the credit portfolio decreased compared to the
previous year, and the relative credit risk position remained stable. Alisa Bank’s customers are
both private and SME customers.
Alisa Bank has procedures and guidelines in place for identifying, measuring, managing, and
monitoring credit risk. The company’s credit risk management is based on the risk appetite
specified in the risk management policy confirmed by the company’s Board of Directors.
In addition, the company’s market- and product-specific risk policies specify the minimum
criteria that the debtors must meet before a credit can be granted. The goal of the credit risk
management is to limit the impact of risks arising from customer exposures on earnings and
capital adequacy to an acceptable level. Alisa Bank applies the standardised approach for
calculating capital requirement for credit risk.
Alisa Bank identifies defaulted customers based on the debtor’s substantial payment delays, in
accordance with the calculation of the days past due or on the basis of the debtor’s unlikeness
to pay back. When the credit is overdue for more than 90 days or the debtor is considered
default, the loan is placed in stage three in the ECL calculation. However, not all ECL stage three
loans are necessarily default. Default means that the debtor’s overdue loan obligation exceeds
both the absolute and relative thresholds and is overdue for 90 consecutive days.
At the end of the review period, the amount of non-performing loans was EUR 7.1 million
(7.2). The NPL ratio, which describes non-performing receivables in relation to all loans
and receivables, was 4.8 (4.2) percent at the end of the review period. The main drivers of
the amount of non-performing loans in the credit portfolio are bankruptcies in business
financing and foreign loans in personal loans. At the end of the review period, there were
EUR 1.5 (0.4) million in non-performing forbearance loans, and EUR 0.6 (0.7) million of
performing forbearance loans.
Loan receivables with a payment delay of more than 30 days but less than 90 days were 3.5
(3.5) percent of the entire loan portfolio. The proportion of overdue payments of more than
90 days was 3.0 (3.6) percent. 28% of Alisa Bank’s non-performing loans consist of foreign
consumer loans, 23% of business loans and 50% of domestic consumer loans.
The share of business customers’ loans with payment delayes has decreased during the
review period, especially in the sales invoice financing portfolio. With the renewal of the
sales invoice system, credit risk management becomes more transparent, and the control of
the credit portfolio will be more predictable. The Bank’s business customers mainly consist
of small and medium-sized enterprises, whose profitability may, however, continue to be
affected by the weakened economic situation. The company monitors the development of
the credit risk of the loan portfolio through the number of payment delays and applications
for changes to the payment plan and also via changes in credit risk claseses.
In lending to businesses, the company assesses the debtor’s credit risk by means of a careful
credit analysis process specified in credit policies. The company uses information collected
from external sources when evaluating the creditworthiness and ability to pay of business
customers. Loans to business customers are monitored throughout the entire life cycle of
the loan agreement. If significant changes are detected in the customer’s financial situation,
the customership will be taken for more detailed monitoring.
The number of personal customers’ payment delays has stayded stable but the relative
share of overdue loans has increased due to decreased size of private customers loan
portfolio during the reporting period. In lending to personal customers, the company applies
statistical credit risk assessment methods (credit risk models) for assessing the expected
default risk. The credit risk models assess the debtor’s estimated default risk based on
which the company assigns the debtors one of the five internal risk classes. In addition,
the company always assesses the debtor’s ability to pay back based on confirmed monthly
income, loan expenses and assessment on the other expenses of the debtor’s household.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
40
Distribution by risk class
The company classifies all customers into risk classes based on the information available
on the counterparty. The classification is based on the bank’s internal assessment, which
utilizes external credit rating data. Monitoring is continuous and can lead to a transfer from
one risk class to another. Risk class 0 is a new risk class.
The risk categories in use are defined as follows:
• Risk class 5: Consumer and business customers are included in low risk items.
• Risk class 4: Consumer and business customers are included in moderate risk items.
• Risk class 3: Consumer and business customers are included in increased risk items.
• Risk class 2: Consumer and business customers are included in the second-highest risk
items.
• Risk class 1: The highest risk items include consumer and business customers and
insolvent customers. Other clients are classified on the basis of the bank’s internal risk
class assessment.
• Risk class 0: Defaulted consumer and business customers, and customers of risk classes 1
or 2 with over 30/60-days payment delayes.

LOANPORTFOLIO BY RISKCLASSES |  |
EUR 1,000 | 31 DEC 2024 | 31 DEC 2023
Riskclass 5 | 35,264 | 39,092
Riskclass 4 | 52,278 | 76,912
Riskclass 3 | 28,572 | 36,895
Riskclass 2 | 16,546 | 13,513
Riskclass 1 | 6,973 | 6,454
Riskclass 0 | 9,855 | 0
Loanportfolio | 149,488 | 172,866

Risk concentrations
Risk concentrations arise or may arise, for example, when the credit portfolio contains large
amounts of loans and other liabilities directly towards:
• single customer or counterparty
• group of connected customers
• single business industry
• against limited amount of collaterals
• within same maturity
• within same product
Risk concentrations are managed at Alisa Bank with the help of set limits, and these are
monitored actively as part of the management’s risk report. Alisa Bank’s loan portfolio is
focused on personal customers, mainly consisting of smaller loan amounts; the maximum
loan amount for personal customers according to the credit granting policy is 30,000 euros.
With a distributed customer base, the significance of individual large customer risks is minor.
At the end of the financial year, the company had one exposure, where the loan amount is
10 percent of Tier 1 own funds; the loan is secured by financed sales invoice receivables.
The ten largest connected customers group accounted for 8,7 percent of the total loan
portfolio. Of the financing granted to companies, the largest industries are wholesale and
retail, transport and storage and manufacturing. Most of the business loan portfolio is sales
invoice financing. Geographically, the responsibilities are divided in Alisa Bank as follows:

EXPOSURE AND HOME COUNTRY 31 DECEMBER 2024 |  |
| Amount of | More than 90
EUR 1,000 | credit | days past due
Private individuals Finland | 96,393 | 2,028
Companies and entities Finland | 46,871 | 1,151
Public sector entities | 680 | 0
Private individuals EU countries | 5,523 | 1,802
Companies and entities EU countries | 21 | 0
Total | 149,488 | 4,981

ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
ALISABANK|ANNUALREPORT2024ALISABANKINBRIEFBOARDOFDIRECTORS’REPORTFINANCIALSTATEMENTSGOVERNANCE
Alisa Bank has active business in foreign markets, in the German and Danish markets.
a personal guarantee with the customer. The key features of the practices and processes for
The operations and loan portfolio in Poland were divested in the summer of 2023, which
the assessment and management of eligible collateral are set out in the business lending credit
significantly reduced overdue foreign receivables.
policy guidelines.

EXPOSURE AND HOME COUNTRY 31 DECEMBER 2023 |  |
| Amount of | More than 90
EUR 1,000 | credit | days past due
Private individuals Finland | 124,498 | 2,071
Companies and entities Finland | 39,942 | 1,596
Public sector entities | 1,122 | 0
Private individuals EU countries | 7,304 | 1,424
Companies and entities EU countries | 0 | 0
Total | 172,866 | 5,091

Credit risk assessment in the calculation of expected credit losses
The calculation of expected credit losses, i.e. the ECL calculation (Expected Credit Loss)
is applied in the company to financial assets valued at amortized cost, of which the most
significant item is loans receivable from customers. The calculation of expected credit losses
is carried out monthly at the loan level. In the ECL calculation, the expected credit loss is
calculated for each loan on a monthly basis based on the probability of default (PD) and the
amount of loss caused by default (LGD).
When assessing whether the credit risk related to loan receivables has increased significantly,
the change in the risk of defaults occurring during the expected validity period of the financial
Loans with payment delays and changes to repayment schedule
asset is examined. When making this assessment, the risk of default on the financial asset on
the reporting date and the risk of default on the financial asset at the time the loan is granted
An operating model for monitoring the loans of customers with payment delays is outlined
are compared. A significant increase in credit risk leads to the transfer of the loan from stage
in the company’s credit policy guidelines. Overdue loans refer to commitments for which
1 to stage 2. A significant increase in credit risk can be caused, for example, by a delay in
repayment of the loan capital is overdue by more than 15 days.
payments by the borrower for more than 30 days, for reasons other than technical reasons,
or changes in the counterparty’s financial position, such as a substantial deterioration of
In the event of payment delays by consumer customers, the company aims to assist
creditworthiness and financial position.
customers to prevent financial difficulties. Consumer customers may be offered payment
holidays and changes to the repayment schedule.
Loans are recorded to stage 3 if the credit risk has significantly and provably increased.
If there are one or more events that have occurred on the customer side, that will affect
In lending to businesses, the aim is to find solutions well before the customer’s possible
financial difficulties affect their ability to repay the loan. Lending is guided by a policy on
future cash flows negatively. These events can be for example:
credit risk management and credit risk strategy.
• Payments (amortization or interest) have been delayed for more than 90 days
• Bankruptcy or liquidation of the debtor, or other significant financial difficulties
The company regularly monitors overdue loans and reports them to the company’s
• Customer is defaulted. A forborn exposure moves to stage 3 when the bank assesses the
management and Board of Directors. Such loan receivables are also monitored if the customer
debtor as non-performing.
has significant financial difficulties in fulfilling the repayment. The purpose of monitoring is to
detect overdue loans or loans that become problem loans as early as possible.
If the customer has clear indications of unlikeliness to pay, the credit can be transferred
directly from stage 1 to stage 3 on a discretionary basis.
Collaterals and guarantees
The following tables present the company’s loan portfolio by market and customer segment
Loans granted by Alisa Bank to personal customers are almost always unsecured. The credit
and by risk class. Risk class 5 represents the lowest default risk, risk class 1 the highest.
risk of business lending is managed using collateral and guarantees. Guarantees are applied
to exposures in order to secure repayment. In business lending, risk is hedged by agreeing on
41
42

EXPOSURE TO CREDITRISK BY RISK CLASS 31 DECEMBER 2024 |  |  |  |
|  |  |  | Total loan
EUR 1,000 | Stage 1 | Stage 2 | Stage 3 | receivables
Risk class 5 | 34,915 | 335 | 13 | 35,264
Risk class 4 | 50,794 | 1,462 | 22 | 52,278
Risk class 3 | 27,285 | 1,197 | 90 | 28,572
Risk class 2 | 15,345 | 1,190 | 12 | 16,546
Risk class 1 | 6,435 | 441 | 97 | 6,973
Risk class 0 | 1,806 | 1,145 | 6,904 | 9,855
Loan portfolio | 136,579 | 5,771 | 7,138 | 149,488
Expected credit losses | -1,053 | -515 | -4,209 | -5,776
Claims on the public and public sector entities | 135,526 | 5,256 | 2,929 | 143,711
EXPOSURE TO CREDITRISK BY RISK CLASS 31 DECEMBER 2023 |  |  |  | Total loan
EUR 1,000 | Stage 1 | Stage 2 | Stage 3 | receivables
Risk class 5 | 36,805 | 420 | 1,867 | 39,092
Risk class 4 | 72,528 | 2,443 | 1,942 | 76,912
Risk class 3 | 33,459 | 1,708 | 1,728 | 36,895
Risk class 2 | 12,213 | 606 | 693 | 13,513
Risk class 1 | 5,538 | 438 | 478 | 6,454
Loan portfolio | 160,543 | 5,614 | 6,708 | 172,866
Expected credit losses | -1,469 | *-530 | *-4,428 | *-6,427
Claims on the public and public sector entities | 159,075 | *5,084 | *2,280 | *166,439

The calculation of expected credit losses is described in further detail in note G1 to the financial
statements, Accounting policies of the consolidated financial statements. More information on
the distribution of the credit loss provision and of the different stages of credit risks is provided
in note G11, Impairment of receivables.
4. Liquidity risk
Liquidity risk can be defined as a mismatch in incoming and outgoing cash flows. The risk may
materialise if the company is unable to meet its payment obligations as they fall due. The company’s
main liquidity risks arise from the maturity mismatch between borrowing and lending.
Alisa Bank’s liquidity risk management is based on its ability to gain enough competitively priced
funding for the short and long term, and that the sources of funding are sufficiently diversified.
The bank has sought to diversify deposit channels to reduce concentration risks; the bank opened
a savings account product on Europe’s leading deposit comparison portal Raisin in Germany and
in the Netherlands during 2023,
in French and Austria 2024, in addition we opened a savings
account product in the Check24 portal in Germany
. The share of these accounts in the total
deposit base was 51% at the end of the financial year. More than
89 percent of the deposit base
was covered by deposit protection.
An important part of managing liquidity risk is planning a liquidity position for both the short and
long term. The company’s long-term liquidity management is primarily done as part of strategic
planning and budgeting. Estimated loan volumes, allocated to loans of different maturities, are the
basis for the required level of funding, divided into long-term funding and stable deposit base, as
well as the amount of equity capital.
Liquidity management also includes liquidity reserve management. This ensures that the company has
sufficient liquid securities available to cover the needs of its various businesses. Furthermore, planning
a liquidity reserve will prepare for market downturns and possible legislative changes. The company’s
liquidity reserve target is to cover at least the projected net outflows in a stressed scenario in which
deposits flow out, and new funding is not available.
The table at the next page presents the company’s contractual payments for financial assets and
liabilities. The cash flows include capital and contractual interest. Liquidity risk management is
supported by active risk management, monitoring of balance sheet and cash flows and internal
calculation models.
The required level of iquidity is determined by the limits set by the company’s Board of Directors
for the liquid assets. Liquidity adequacy is monitored and managed with the help of indicators such
as: maturity differences between assets and liabilities, deposit concentrations, deposit outflow,
LCR and NSFR ratios, and increase in funding costs. Liquidity indicators are monitored continuously
and reported at least monthly to the management team and the Board of Directors as part of
risk reporting. The company prepares for the repayment of future debts by limiting new lending if
necessary, thus ensuring its liquidity position. The company’s liquidity remained stable during 2024.
Alisa Bank has no derivative exposures or collateral requirements.
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
43
Breakdown of financial assets and liabilities according to maturity

| less |  |  |  |  |
| than 3 | 3-12 | 1-5 | 5-10 | yli 10 |
31 DEC 2024 EUR 1,000 | months | months | years | years | years | Total
Assets |  |  |  |  |  |
Cash and cash equivalents | 279,361 |  |  |  |  | 279,361
Claims on credit institutions | 8,701 |  |  |  |  | 8,701
Claims on the public and public |  |  |  |  |  |
sector entities | 42,911 | 20,363 | 62,029 | 15,428 | 2,981 | 143,711
Liabilities |  |  |  |  |  |
Liabilities to the public and public sector entities | 355,340 | 19,313 | 19,986 |  |  | 394,639
Lease liabilities | 99 | 305 | 450 |  |  | 854
Debenture loans |  | 118 | 6,100 |  |  | 6,218
Off-balance sheet |  |  |  |  |  |
commitments | 4,861 |  |  |  |  | 4,861
| less |  |  |  |  |
| than 3 | 3-12 | 1-5 | 5-10 | yli 10 |
31 DEC 2023 EUR 1,000 | months | months | years | years | years | Total
Assets |  |  |  |  |  |
Cash and cash equivalents | 129,364 |  |  |  |  | 129,364
Claims on credit institutions | 5,461 |  |  |  |  | 5,461
Claims on the public and public |  |  |  |  |  |
sector entities | 29,730 | 5,576 | 72,982 | 47,535 | 17,042 | 172,866
Liabilities |  |  |  |  |  |
Liabilities to the public and public sector entities | 204,192 | 47,406 | 17,267 |  |  | 268,864
Lease liabilities | 40 | 122 | 342 |  |  | 503
Debenture loans | 110 |  | 6,100 |  |  | 6,210
Off-balance sheet |  |  |  |  |  |
commitments | 5,647 |  |  |  |  | 5,647

Liquidity risk is measured by a liquidity buffercoverage ratio (LCR) and a minimum long-term
funding requirement (net stable funding ratio, NSFR). In addition, the development of
aforementioned liquidity indicators, such as the amount of deposits, the cost of funding
and maturity spread, is monitored. The Group’s liquidity coverage ratio (LCR) was at good
level, and was 897% at the end of 2024. The net stable funding ratio (NSFR) was 324% at the
end of 2024. The company’s internal risk limit for the LCR and NSFR indicators is 130%. The
regulatory limit is 100%. Over the past year, the LCR and NSFR indicators have followed a
steady and predictable trend.
5. Market risk
Market risk consists of interest rate risk in the banking book and foreign exchange risk. The
banking book consists of on- and off-balance-sheet items related to lending and borrowing,
as well as a liquidity reserve. Alisa Bank does not trade in shares or other securities for
trading purposes.
Currency risks are maintained at a moderate level to prevent exchange rate fluctuations
from causing significant financial losses. The largest currency positions on 31 December
2024 were: DKK (Danish krone) EUR 0.89 million and SEK (Swedish krona) EUR 0.35 million.
A fall of -10% in the exchange rates would cause a valuation loss of EUR 0.12 million.
The exchange rate of the above currencies correlates closely with the exchange rate of the
euro, which reduces the risk. Altogether 99% of the net loan portfolio was in euros. Other
items in the balance sheet do not cause material exchange rate risks to the company.
Interest rate risk
The company’s interest rate risk in the banking book arises from differences in the interest
rates and maturities of assets and liabilities when market interest rate change. The changes in
market interest rates affect the fair value of the on and off-balance sheet items (net present
value risk) and the net interest income (net interest income risk). At the end of the financial
year, the company has no securities in the investment portfolio whose valuation could be
affected by changes in market interest rates.
The company’s goal is to balance the interest rates of receivables and lialibilities and to
reduce unforeseen fluctuations in the net interest income. The pricing of borrowing and
lending is a key factor in the development of the company’s net interest income and risk.
The company currently has longer (over 1 y) fixed-rate loans for ten per cent of its loan
portfolio. New lending is mainly with variable interest rates and tied to the 3-month Euribor.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
44

INTEREST RATE FIXING PERIODS 31 DECEMBER 2024 |  |  |  |  |  |
|  |  |  | Fixed rate, | Fixed rate, |
|  |  |  | maturity | maturity |
| Overnight/ | 3 M | 6-12 M | under 12 | over 12 |
EUR 1,000 | no fixing | Euribor | Euribor | months | months | Total
Receivables |  |  |  |  |  |
Claims on credit |  |  |  |  |  |
institutions and central |  |  |  |  |  |
banks | 288,063 |  |  |  |  | 288,063
Claims on the public |  | 88,150 | 3,453 | 38,096 | 14,012 | 143,711
Laibilities |  |  |  |  |  |
Liabilities to the public, current and savings |  |  |  |  |  |
accounts | 336,257 |  |  |  |  | 336,257
Liabilities to the public, term deposits |  |  |  | 37,722 | 19,986 | 57,708
Debenture loans |  |  |  | 118 | 6,100 | 6,218

The amount of interest rate risk is regularly reported to the management team and the
Board of Directors. Interest rate risk is monitored and measured regularly by means
of interest rate risk limits set by the Board of Directors and by assessing the effects of
interest rate shocks on the economic value of the bank’s equity and net interest income.
In the situation at the end of the financial year on 31.12.2024, the sensitivity of the interest
rate risk relative to own funds was as follows: If the interest rate level were to rise by two
percentage points, the economic value of the company’s own funds would increase by
2.7 per cent due to the positive profit development. If interest rates were to fall by two
percentage points, the economic value of own funds would fall by 3.4 per cent. If interest
rates were to rise by two percentage, it would have an estimated annual positive impact on
net interest income of approx. EUR 1.70 million, which is 8.5 per cent of CET 1 own funds.
If interest rates were to fall by two percentage, the estimated negative annual impact on
net interest income would be approx. EUR -1.74 million, which is 8.6 per cent of CET 1 own
funds. The next table shows the standard scenarios determined by the European Banking
Authority (EBA) on interest rate risk change sensitivities, on the economic value of equity.

INTEREST RATE SENSITIVITY ANALYSIS |
EUR 1,000 | 31 DEC 2024
All rates rise by 200 b.p. | 551
All rate decline by 200 b.p. | -678
Short term rates decline by 250 b.p. and long-term rates decline by 100 b.p. | -318
Short term rates rase by 250 b.p. and long-term rates decline by 100 b.p. | 344
Short term rates rase by 250 b.p | 483
Short term rates decline by 250 b.p | -91

A more detailed discussion on the disclosure requirements for interest rate risk (Pillar III) is
available in the Group’s Capital and Risk Management Report.
6. Operational risk
Operational risk mean a direct or indirect financial loss that is caused by insufficient or failed
internal processes, systems, personnel or external factors. Operational risks also include
legal risks and compliance and data security risks. Operational risks are therefore related
to management and information systems, operational processes, personnel and various
external factors and threats. The costs of realized operational risks during the review period
were minor in relation to the own funds requirement reserved for them.
The Board of Directors annually confirms the operational risk management principles
and the risk appetite framework, of which operational risk is one part. In operational risk
management, the company’s main objective is to ensure business continuity and regulatory
compliance in the short and long term and as well manage reputational risk. Business
continuity and disruption management are part of ICT risk management and are key factors
of operational risk management. ICT risk management takes into account the new EU
financial sector DORA-regulation (Digital Operational Resilience Act) that will enter into force
in 2025. Operational risk management supports the implementation of company values and
strategy throughout the business operation.
Operational risk management is applied in all the business units of the company by
identifying, measuring, monitoring, and assessing the operational risks associated with each
unit. Business units also assess the likelihood of risks and their impacts if they materialise.
The company-wide process enables management to assess the potential loss arising from
operational risk in the event of a risk materialising.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
45
As part of its operational risk management, the company aims to reduce the likelihood of
operational risk events through internal guidelines and staff training. Each employee is
responsible for managing operational risk in their own duties. Any operational risks that have
materialised are reported to the management of the business unit.
New products, services and suppliers of outsourced services are separately approved
through the company’s formalised approval process before they are introduced. The approval
process ensures that the risks associated with new products and services are appropriately
identified and assessed. The same approval process will also apply when existing products are
developed.
Operational risks are monitored, managed, and reported in the company’s risk control unit. At
least annually, the company’s management team receives the risk assessments of the business
units and a report on the materialised risks, which are used to compile a separate risk matrix
to the Board of Directors. The process created will enable the Board of Directors to gain an
overview of the operational risks faced by the business and their potential impact on the
company.
7. Responsibility
As a Finnish digital bank, Alisa Bank is part of the Finnish financial sector. The banking and
financial operations plays an important role in building the economic and social stability of
society, as well as taking into account climate and environmental issues.During the review
period, Alisa Bank has started the prepartion for CSRD-regulatory reporting.
Alisa Bank has high standards when conducting its business. Alisa Bank requires its business
units and personnel to have a good understanding of compliance with applicable laws,
regulations and standards in all markets and jurisdictions and strictly follows them, in which
Alisa Bank operates.
For Alisa Bank, the well-being and commitment of the personnel are in a key position. We
measure employee satisfaction regularly and actively make improvements based on the
results. Our work community is equal, we do not accept discrimination in any form. We are
committed to promoting equality and non-discrimination in all activities.
Customer satisfaction is in a key position, and Alisa Bank strives to communicate clearly and
understandable to its customers. In personal and business customer lending, the aim is to
find suitable solutions together with customers in the event of financial difficulties. Alisa
Bank aims to ensure that customers’ ability to pay is maintained by offering changes to the
payment plan or other necessary flexibility for loan repayment.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
46
Notes
G5. NET INTEREST INCOME
EUR 1,000 2024 2023
Interest income
Receivables from credit institutions
11,628 4,067
Claims on the public and public sector entities 17,907 16,004
Total interest income using the effective interest method 29,535 20,071
Interest expenses
Liabilities to the public and public sector entities
-13,892 -4,803
Debt securities issued to the public
-496 -495
Other interest expenses -72 -16
Interest expenses, total -14,460 -5,314
Net interest income 15,075 14,757
G6. FEE AND COMMISSION INCOME AND EXPENSES
EUR 1,000 2024 2023
Fee and commission income
Lending
2,336 2,014
Peer to peer lending 449 951
BaaS income 122 0
Other fee and commission income 74 215
Fee and commission income, total 2,981 3,180
Fee and commission expenses 2024 2023
Lending -43 -176
Other fee and commission expenses -1 122 -1,219
Fee and commission expenses, total -1,166 -1,395
Timing of revenue recognition 2024 2023
At a point of time 888 918
Over time 2,093 2,263
Total 2,981 3,180
The method of calculating the effective interest was refined during the 2024 fiscal year in relation to
the commissions of partners in deposits and sales invoice financing, and it had an effect of EUR 1.3
million between interest expenses and commission expenses in 2024. Interest expenses increased and
commission expenses decreased.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
47
G7. NET INCOME FROM INVESTING ACTIVITIES 2024 2023
Exchange rate gains and losses -14 32
Net investment income, total -14 32
2024
Gains and
losses on sales
Changes in fair
value Total
Exchange rate gains and losses -14 0 -14
Net investment income, total -14 0 -14
2023
Gains and
losses on sales
Changes in fair
value Total
Exchange rate gains and losses 32 0 32
Net investment income, total 32 0 32
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
48
G8. OTHER OPERATING INCOME
EUR 1,000 2024 2023
Sales of subsidiary 0 115
Other income 115 11
Other operating income total 115 126
Other income includes e.g. fixed asset sales and marketing commissions.
G9. PERSONNEL EXPENSES
EUR 1,000 2024 2023
Salaries and fees -5,834 -5,271
Pension expenses
-823 -689
Other social security costs -31 -115
Share based payments -84 -15
Capitalization of personnel costs 467 609
Personnel expenses total -6,304 -5,481
The capitalization of personnel costs includes the share of own work from the costs capitalized in the
information systems, including side costs.
Number of personnel, average
Number of personnel during the period, average
80 81
Board fees 2024 2023
Markku Pohjola
Alisa Bank Plc, Chairman of the Board, beginning 2 April 2022
-60 -75
Johanna Lamminen
Alisa Bank Plc, Member of the Board beginning 20 April 2023
Alisa Bank Plc, Member of the Board, vice chairman of the Board
beginning 20 March 2024
-48 -39
Jukka Salonen
Alisa Bank Plc, Member of the Board beginning 3 May 2024
Alisa Bank Plc, Member of the Board, until 31 December 2024
-33
Sampsa Laine
Alisa Bank Plc, Member of the Board beginning 10 June 2024
Alisa Bank Plc, Member of the Board, until 30 November 2024
-21
Tero Weckroth
Fellow Finance Plc, Member of the Board, until 1 April 2022
Alisa Bank Plc, Member of the Board beginning 2 April 2022
-38 -49
Sami Honkonen
Alisa Bank Plc, Member of the Board beginning 20 April 2023
-38 -39
Lea Keinänen
Alisa Bank Plc, Member of the Board beginning 2 April 2022
Alisa Bank Plc, Member of the Board, until 15 May 2024
-6 -49
Kai Myllyneva
Fellow Finance Plc, Chairman of the Board until 1 April 2023
Alisa Bank Plc, Member of the Board beginning 2 April 2022 until
20 April 2023
-10
Jorma Pirinen
Alisa Bank Plc, Member of the Board beginning 2 April 2022
-6 -49
Alisa Bank Plc, Member of the Board until, 15 May 2024
Teuvo Salminen
Alisa Bank Plc, Member of the Board, vice-chairman of the Board
beginning 2 April 2022
-60
Alisa Bank Plc, Member of the Board, vice-chairman of the Board,
until 20 March 2024
Board fees total
-250 -369
CEO salaries and fees 2024 2023
Salaries and fees -187 -183
Options -2
CEO salaries and fees total -189 -183
Executive group salaries and fees 2024 2023
Salaries and other short-term employment benefits -873 -911
Options -13
Executive group salaries and fees total -886 -911
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
49
The group’s management team was not paid post-employment benefits, recommended in
connection with termination or other long-term benefits during the accounting period.
Share-based incentive system
Alisa Bank Plc has three share-based incentive schemes for the group’s key employees, to
which the group has applied the requirements of the IFRS 2 Share-based payments standard
during the accounting period. The share bonus system introduced in 2022 replaces the option
programs that were in use before the merger. Other share bonus systems were launched
in 2023 and 2024. The purpose is to combine the goals of the owners, management and
personnel to increase the company’s value in the long term, as well as to commit participants
to the company and offer them competitive incentive systems based on earning and
accumulating company shares, which support Alisa Bank’s strategy.
2022A & 2022B
The valuation-based share bonus system 2022 has one earning period that started on July 4,
2022 and ended on March 31, 2024. Its target group includes approximately 14 key personnel,
including members of the management team. In the system, it is possible for the target group
to earn a share bonus based on the increase in the value of Alisa Bank Plc’s shares. One share
unit entitles one share to an increase in value. The share units are divided into classes 2022A
(approx. 650,000 units) and 2022B (approx. 2,500,000 units). The increase in the value of the
share is measured from the starting level of 1.27 euros (2022A) and 0.63 euros (2022B).
The increase in the value of the share units will be converted into Alisa Bank shares after
the end of the earning period, and any bonuses will be paid deferred after the end of the
earning period in two equal installments, in April 2025 and April 2026, in accordance with
the legislation on the financial sector. The payment of bonus installments is followed by a
one-year waiting period, during which the key person cannot hand over the shares paid as a
bonus. The rewards are paid partly in Alisa Bank Plc shares and partly in cash. The monetary
shares of the rewards cover the taxes and statutory social insurance contributions incurred
by the participants. If the participant’s employment or management contract ends before the
bonus is paid, the bonus is generally not paid.
PSP 2023
On January 17, 2023, the company’s board decided on a new share-based incentive system
for the group’s key personnel. This performance-based share bonus system has three
earning periods covering the fiscal years 2023, 2024-2025 and 2025-2026. It is possible for
the target group to earn Alisa Bank Plc shares based on performance. The board decides the
system’s earning criteria and their goals at the beginning of the earning period. According
to the financial sector legislation, the possible rewards of the system are paid on a delayed
basis, so that the rewards are paid to the participants after the end of the earning period
within about four or five years in five installments. The payment of bonus installments is
followed by a one-year waiting period, during which the key person cannot hand over the
shares paid as a bonus. In the 2023 earning period, the rewards were based on the group’s
2023 result, the implementation of strategic projects, customer satisfaction (NPS) and set
personal goals. The value of the bonuses paid for the earning period 2023 can correspond
to a total of no more than 2,000,000 Alisa Bank Plc shares, including a possible share to be
paid in cash. In the earning period 2023, the target group included approximately 11 key
personnel, including the CEO and other members of the management team.
A member of the management team must own at least 50 percent of the net number of
paid shares, until the value of his share ownership in the company in total corresponds
to 50 percent of the value of his gross annual salary. Correspondingly, the managing
director must own at least 50 percent of the net number of shares paid, until the value of
his share ownership in the company in total corresponds to the value of his gross annual
salary. These amounts of shares must be owned as long as the person’s membership in the
management team or position as CEO continues.
PSP 2024-2026
The Performance Share Plan 2024–2028 consists of one (1) two and a half (2,5) year and two
(2) three (3) year performance periods, concerning the financial years 2024–2026, 2025–
2027 and 2026–2028 respectively. The Board of Directors will resolve annually on the details
of a performance period.In the plan, the target group has an opportunity to earn Alisa Bank
Plc’s shares based on performance. The performance criterion of the first performance pe
-
riod’s 2024–2026 measurement period H2/2024 is tied to profit before non-recurring items
and taxes in H2/2024. The Board of Directors will set performance criteria for the measure
-
ment periods 2025 and 2026 later. The target group of the performance period 2024–2026
consists of approximately 10 key employees, including the members of the Management
Team and the interim CEO. The potential rewards from each performance period will be
paid after the end of the performance period within approximately four (4) years in five
(5) instalments, in accordance with the financial sector legislation. Before payment, the re
-
wards may be reduced based on risk adjustments. The payment of each reward instalment
is followed by a one-year (1) retention period, during which the participant cannot dispose
of the shares paid as a reward.
The value of the rewards to be paid on the basis of the first performance period corre
-
sponds to a maximum total of 1 472 109 shares of Alisa Bank Plc (including the proportion
to be paid in cash), which corresponds to approximately EUR 249 000 calculated based on
the volume weighted average price of Alisa Bank Plc’s share on 7 August 2024. The potential
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
50
rewards will be paid partly in Alisa Bank Plc’s shares and partly in cash. The cash proportion
of the reward is intended to cover taxes and statutory social security contributions arising
from the reward to the key employee. As a rule, no reward will be paid if the key employee’s
employment or director contract terminates before the reward payment.
The Management Team member must hold 50 per cent of the received shares, until the value
of the Management Team member’s total shareholding in Alisa Bank Plc equals to 50 per cent
of their annual base salary for the calendar year preceding the payment of the reward. Corre
-
spondingly, the CEO must hold 50 per cent of the received shares, until the value of the CEO’s
total shareholding in Alisa Bank Plc equals to 100 per cent of the CEO’s annual base salary for
the preceding calendar year. Such number of shares must be held for as long as the member
-
ship in the Management Team or the position as the CEO continues.
The Personnel Share Issue - EEP
The Board of Directors of Alisa Bank Plc resolved to arrange a directed share issue to the
company’s personnel and launch a related matching share plan on 24 October 2024. In the
personnel share issue, a total of 1,738,152 shares were subscribed. The subscription price
was 0.1660 euros per share. The share subscription price is based on the trade volume
weighted average price of the company share on Nasdaq Helsinki Ltd during the period from
1 September 2024 to 30 September 2024 and on a discount of ten (10) per cent thereof. The
share subscription period ran from 25 October 2024 to 15 November 2024. The total sub
-
scription price of the shares is EUR 288,533.22.
In the matching share plan, the persons who subscribed for shares in the personnel share
issue have the opportunity to receive matching shares gratuitously after a matching period of
approximately three years.
The rewards from the plan will be paid after the matching period that ends in 2027. The
potential matching shares of the identified risk takers, however, will be paid in a deferred
manner in accordance with the financial sector legislation.
The rewards will be paid partly in Alisa Bank Plc’s shares and partly in cash. The cash propor
-
tion of the reward is intended to cover taxes and statutory social security contributions aris-
ing from the reward to the employee.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
51
2024
2023
PLAN 2022A 2022B PSP 2023 PSP 2024-2026 EEP 2024 2022A 2022B PSP 2023
TYPE SAR SAR Share Share Share SAR SAR Share
Instrument 2022A 2022B PSP 2023 PSP 2024-2026 EEP 2024 2022A 2022B PSP 2023
Maximum number of shares 646,925 2,500,000 2,000,000 1,760,178 1,738,152 646,925 2,533,701 2,000,000
Grant date 4 July2022 4 July 2022 17 January 2023 8 August 2024 21 Nobember 2024 4 July 2022 4 July 2022 17 January 2023
Beginning of earning period 1 April 2022 1 April 2022 1 January 2023 1 January 2024 21 November 2024 1 April 2022 1 April 2022 1 January 2023
End of earning period 31 March 2024 31 March 2024 31 December 2023 31 December 2026 31 December 2027 31 March 2024 31 March 2024 31 December 2023
Vesting date 30 April 2025 30 April 2025 30 June 2025 30 June 2027 30 June 2028 30 April 2025 30 April 2025 30 June 2025
30 April 2026 30 April 2026 30 June 2026 30 June 2028 30 June 2029 30 April 2026 30 April 2026 30 June 2026
30 June 2027 30 June 2029 30 June 2030 30 June 2027
30 June 2028 30 June2030 30 June 2031 30 June 2028
30 June 2029 30 June 2031 30 June 2032 30 June 2029
Vesting conditions
Share price
increase
Share price
increase
Profit, Strategic
projects, NPS,
personal
performance
H2/2024 result,
2025 & 2026 TBA
Share price
increase
Share price
increase
Profit, Strategic
projects, NPS,
Employee personal
performance
Employment until
the end of vesting
date
Employment until
the end of vesting
date
Employment until
the end of vesting
date
Employment until
the end of vesting
date
Ownership,
employment until
the moment of
payment
Employment
until the end of
vesting date
Employment until
the end of vesting
date
Employment until
the end of vesting
date
Maximum contractual life, yrs 4.1 4.1 6.5 7.5 7.6 4.1 4.1 6.5
Remaining contractual life, yrs 0.0 0.0 0.0 6.5 7.5 2.3 2.3 5.5
Number of persons at the end
of reporting year
0 0 0 10 40 5 8 9
Payment method Cash & Equity Cash & Equity Cash & Equity Cash & Equity Cash & Equity Cash & Equity Cash & Equity Cash & Equity
Changes during period 2022A 2022B PSP 2023 PSP 2024-2026 EEP 2024 2022A 2022B PSP 2023
Outstanding in the beginning
of the period
646,925 1,991,865 1,700,000 646,925 2,204,323
Reserve in the beginning of
the period 3,076 508,135 300,000
Changes during period
Granted 1,560,178 1,738,152 1,980,000
Forfeited 646,925 1,991,865 1,700,000 212,456 280,000
Outstanding at the end of the
period
1,560,178 1,738,152 646,925 1,991,865 1,700,000
Reserved at the end of period 200,000 541,836 300,000
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
52
FAIR VALUE DETERMINATION
The fair value of share based incentives have been determined at grant date and the fair value is expensed until vesting.
The pricing of the share based incentives granted during the period was determined by the following inputs and had the
following effect:
Valuation parameters for instruments granted during period 2024 2023
Share price at grant, € 0.18 0.38
Share price at reporting period end, € 0.17 0.17
Risk-free rate, % 0% 0%
Expected dividends, € 0 0
Fair Value, € 370,372 0
Effect of share-based Incentives on the result and financial position
during period 2024 2023
Expenses for the financial year, share-based payments, 1,000 € 84 15
Expenses for the financial year, share-based payments, equity-settled, 1,000 € 84 101
Liabilities arising from share-based payments 31 Dec., 1,000€ 0 0
Future cash payment to be paid to the tax authorities from share-based payments, estimated at the end of period
188,126 euros.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
53
G10. OTHER ADMINSTRATIVE EXPENSES
EUR 1,000 2024 2023
Office expenses -490 -383
IT and infosystems -1,615 -1,926
Business expenses -4 -7
Travel expenses -19 -19
Car costs -55 -41
Other HR related expenses -207 -123
Marketing expenses -213 -129
Banking and custodian expenses -610 -112
External services
-1,698 -1,764
Other expenses
0 -9
Other administrative expenses total -4,908 -4,513
Fees paid to the audit firm
2024 2023
Audit -169 -163
Assignments referred to in section 1 subsection 1 section 2 of
the Audit Act
-14 -3
Other services -22
Fees paid to the audit firm total -183 -189
G11. DEPRECIATION AND IMPAIRMENT LOSSES 2024 2023
Intangible assets -942 -675
Tangible assets -11 -9
Right to use assets -331 -147
Depreciation and impairment total -1,284 -831
Activations related to foreign operations and unrealized development projects, 26 thousand
euros, was written down in the group in 2024.
G12. OTHER OPERATING EXPENSES
EUR 1,000 2024 2023
Authorities expenses -32 -271
Rent expenses -23 -76
Other operating expenses -231 -226
Other operating expenses total -285 -572
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
54
G13. REALIZED AND EXPECTED CREDIT LOSSES
EUR 1,000 2024 2023
Realized credit losses on receivables
Realized credit losses on loans granted during the
financial year
-267 -320
Realized credit losses on loans granted before the
beginning of the financial year
-5,906 -6,402
Realized credit losses on receivables total -6,173 -6,722
Expected credit losses change* 646 1,279
Realized and expected credit losses total* -5,527 -5,443
The change in the expected credit loss reservation with an impact on profit was a positive
0.6 million euros (1.3*). This change resulted from both the decrease in the loan portfolio
for individual customers and the recognition of final credit losses on corporate loans. In the
comparison period, the release of the ECL provision was influenced by the sale of the Polish
loan portfolio and the relative decrease in the share of the old peer-to-peer loan portfolio
within the total portfolio.
The effects of the development of the ECL calculation model applied by the company and
discretionary parameter changes on the amount of the credit loss provision in the financial
period was an increase of about EUR 0.3 million (2023: a decrease of 0.5): A Change concerning
the handling of defaulted customers increased ECL provision by EUR 0.1 million. The price
change in the sales contract for overdue receivables has the effect of increasing the provision
by EUR 0.1 million. During the financial year, there were also minor increases in the ECL
provision due to updates in macroeconomic parameters and changes in the handling of
personal guarantees.
The provision for expected credit losses in the financial statements on December 31, 2024
includes a total of EUR 0.3 million (0.9) in increases in provisions at the management’s
discretion. Discretionary provisions are allocated to individual contracts and concern loans
granted to corporate customers.
Expected credit losses include both receivables from customers and off-balance sheet
commitments.
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
55
Transition of loan receivables in stages
The following reconciliations describe transitions and changes in expected credit losses per financial instrument category during the financial year.
Stage 1 Stage 2 Stage 3 Total
Loan receivables from customers 1 January 2024 160,543 5,614 6,708 172,866
Transfers from stage 1 to stage 2 -4,841 4,225 0 -616
Transfers from stage 1 to stage 3 -3,267 0 2,678 -588
Transfers from stage 2 to stage 1 905 -1,153 0 -248
Transfers from stage 2 to stage 3 0 -680 533 -148
Transfers from stage 3 to stage 1 35 0 -43 -8
Transfers from stage 3 to stage 2 0 44 -51 -7
Increases due to origination and acquisition 353,076 1,167 1,230 355,474
Decreases due to derecognition -362,975 -994 -637 -364,605
Decreases in the allowance account due to write-offs
-6,897 -2,452 -3,281 -12,630
Loan receivables from customers 31 December 2024 136,579 5,771 7,138 149,488
Stage 1 Stage 2 Stage 3 Total
Loan receivables from customers 1 January 2023 152,965 4,248 6,580 163,793
Transfers from stage 1 to stage 2 -6,105 5,366 0 -739
Transfers from stage 1 to stage 3 -4,145 0 3,976 -169
Transfers from stage 2 to stage 1 944 -1,148 0 -204
Transfers from stage 2 to stage 3 0 -560 508 -52
Transfers from stage 3 to stage 1 24 0 -31 -7
Transfers from stage 3 to stage 2 0 13 -14 -1
Increases due to origination and acquisition 354,939 165 237 355,341
Decreases due to derecognition -331,022 -119 -2,262 -333,403
Decreases in the allowance account due to write-offs
-7,056 -2,351 -2,288 -11,694
Loan receivables from customers 31 December 2023 160,543 5,614 6,708 172,866
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
56
Reconciliation of expected credit losses
The following tables describe the transfers and changes in expected credit losses during the review period. The tables show a reconciliation between the opening and closing balances of the
loss deduction.
Stage 1 Stage 2 Stage 3 Total
ECL- reservation 1 January 2024 1,469 530 4,428 6,427
Transfers from stage 1 to stage 2 -72 385 0 313
Transfers from stage 1 to stage 3 -139 0 1,439 1,300
Transfers from stage 2 to stage 1 13 -54 0 -42
Transfers from stage 2 to stage 3 0 -73 283 210
Transfers from stage 3 to stage 1 1 0 -36 -35
Transfers from stage 3 to stage 2 0 2 -17 -14
Increases due to origination and acquisition 712 26 340 1,078
Changes in credit risk -156 76 92 12
Decreases due to derecognition
-683 -26 -438 -1,146
Decreases in the allowance account due to write-offs -91 -353 -1,883 -2,326
ECL-reservation 31 December 2024 1,053 515 4,209 5,776
Stage 1 Stage 2 Stage 3 Total
ECL- reservation 1 January 2023 1,825 1,673 5,639 9,137
Transfers from stage 1 to stage 2 -84 789 0 705
Transfers from stage 1 to stage 3 -642 0 1,998 1,356
Transfers from stage 2 to stage 1 5 -113 0 -109
Transfers from stage 2 to stage 3 0 -109 233 125
Transfers from stage 3 to stage 1 0 0 -15 -14
Transfers from stage 3 to stage 2 0 2 -6 -4
Increases due to origination and acquisition 2,917 25 268 3,210
Changes in credit risk -348 *-394 *819 *77
Decreases in the allowance account due to write-offs -1,530 -105 -2,864 -4,499
Decreases due to derecognition
-673 -1,236 -1,646 -3,555
ECL-reservation 31 December 2023 1,469 *530 *4,428 *6,427
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
57
Macroeconomic model assumptions used in the ECL calculation
The following table presents the company´s reporting period and comparison period macroeconomic model scenarios applied in the Company’s ECL calculation, and the probabilities
observed in the scenario weightings. The macroeconomic model applied by the Company is based on the trend in the gross domestic product rate.
Unemployment %
MACROECONOMIC DEVELOPMENT SCENARIOS Scenario weightings 2025 2026 2027 2028 2029
Positive 20,00% 6.1 6.0 5.9 5.9 5.8
Basic scenario (IMF) 60.00% 7.4 7.3 7.3 7.2 7.1
Negative 20.00% 9.1 8.9 8.9 8.8 8.7
Gross domestic product %
MACROECONOMIC DEVELOPMENT SCENARIOS Scenario weightings 2025 2026 2027 2028 2029
Positive 20.00% 3.1 3.2 2.9 2.8 2.8
Basic scenario 60.00% 1.9 1.9 1.7 1.6 1.5
Negative 20.00% 0.6 0.7 0.4 0.3 0.3
In its negative scenario the Company has anticipated a situation in which the weak macroeconomic development will significantly impact the growth of GDP in the coming years. However,
the Company anticipates that the likelihood of this development is relatively small.
SENSITIVITY ANALYSIS OF EXPECTED CREDIT LOSSES
The table presents the sensitivity analysis of the ECL credit loss provision based on different scenarios.
EXPECTED CREDIT LOSSES IN DIFFERENT SCENARIOS 2024 2023
Positive 5,906 5,692
Basic scenario 5,984 5,715
Negative 6,067 5,738
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
58
G14. INCOME TAXES
EUR 1,000 2024 2023
Income taxes 42 1
Change in deferred tax receivable 36 2
Taxes for previous period 35 0
Income taxes total 113 3
Tax rate reconciliation 2024 2023
Result before taxes -1, 317 -140
Tax calculated at parent’s tax rate of 20% 263 28
Effect on different tax rates in foreign subsidiaries 7 1
Non-deductible expenses -7 -2
Change in deferred taxes from previous financial periods 0 2
Unrecognized deferred tax assets for losses -227 0
Benefit from previously unrecorded deferred tax assets 0 -28
Adjustment toPURO Finance Ltd’s tax 77 0
Other tax items 1 2
Taxes on income statement 113 3
DEFERRED TAX REVEIVABLES AND LIABILITIES
EUR 1,000
1 Jan
2024
Recognised in
profit or loss
Booked to
retained
earnings
31 Dec
2024
Leases 3 14 0 17
Deferred tax receivables total 3 0 0 17
Customer contracts 0 22 177 155
Deferred tax liabilities total 0 22 177 155
EUR 1,000
1 Jan
2023
Recognised in
profit or loss
Booked to
retained
earnings
31 Dec
2023
Leases 2 1 0 3
Share-based payments 78 0 -78 0
Other adjustments 51 0 -51 0
Deferred tax receivables total 129 1 -129 3
Right-of-use assets and liabilities 31 Dec 2024
31 Dec
2023
Deferred tax assets of right-of-use assets 171 101
Deferred tax liabilities of right-of-use liabilities 154 22
Deferred tax net, right-of-use assets and liabilities 17 79
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
59
G15. EARNINGS PER SHARE
EUR 1,000 2024 2023
Profit attributable to the shareholders of the parent* -1 204 -138
Weighted avarage number of the shares 125,321,333 88,332,182
Share and option rights for share-based incentive programs 3,298,330 4,338,789
Earnings per share, basic -0.01 0.00
Earnings per share, diluted** -0.01 0.00
** Share-based incentive plans have no diluting effect when the company’s result is loss-making.
The undiluted earnings per share are calculated by dividing the profit for the financial period
attributable to the parent company’s shareholders by the average number of outstanding
shares during the period. When calculating the diluted earnings per share, the figures used
in the calculation of the undiluted earnings per share are adjusted in order to take account
of the after-tax impact of any items recognised through profit or loss in relation to ordinary
shares, and also the weighted average number of the ordinary shares that would have also
been outstanding if all dilutive potential ordinary shares had been converted into shares.
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
60
G16. CLASSES OF FINANCIAL ASSETS AND LIABILITIES AND FAIR VALUES
EUR 1,000 31 DEC 2024
Assets Amortised cost Total
Measured at
fair value
Value
hierarchies
Cash and cash equivalents
279,361 279,361 279,361 1
Claims on credit institutions 8,701 8,701 8,701 1
Claims on the public and public sector
entities
143,711 143,711 150,529 2
Total 431,774 431,774 438,591
Liabilities Amortised cost Total
Measured at
fair value
Value
hierarchies
Liabilities to the public and public sector
entities 394,639 394,639 394 ,970 2
Subordinated liabilities 6,218 6,218 6,007 2
Total 400,857 400,857 400,977
31 DEC 2023
Assets Amortised cost Total
Measured at
fair value
Value
hierarchies
Cash and cash equivalents
129,364 129,364 129,364 1
Claims on credit institutions 5,461 5,461 5,461 1
Claims on the public and public sector
entities*
166,438 166,438 166,438 2
Total* 301,263 301,263 301,263
Liabilities Amortised cost Total
Measured at
fair value
Value
hierarchies
Liabilities to the public and public sector
entities 268,864 268,864 268,864 2
Subordinated liabilities 6,210 6,210 6,210 2
Total 275,074 275,074 275,074
The company has classified fair values on the basis of the
fair value hierarchy as follows:
Level 1: The fair values of financial instruments (such as publicly quoted
derivatives and shares) traded on the active market are based on market
prices quoted at the end of the reporting period. The quoted market price
of financial assets is the current bid price, and the quoted market price of
financial liabilities is the ask price.
Level 2: For financial instruments not traded on the active market, the fair
value is determined using the measurement method. These methods use as
much observable market information as possible and rely as little as possible
on company-specific assessments. If all the significant input data required to
determine the fair value of an instrument are observable, the instrument is
classified as level 2.
Level 3: If one or several pieces of significant input data are not based on
observable market data, the instrument is classified as level 3.
Valuation of the Fair Value of Financial Instruments
The determination of the fair value of financial instruments has been
clarified for the fiscal year 2024. The comparative period information has
not been retrospectively adjusted. For cash and cash equivalents and
claims on credit institutions, the fair value corresponds to the nominal
value. Claims on the public and public sector entities include granted loans,
for which the fair value is determined by discounting the expected future
contract-based cash flows at the market interest rates at the reporting
date, less expected credit losses.
The fair value of deposits included in liabilities to the public and public sector
entities is determined by discounting the future cash flows at the market
interest rates at the reporting date. For subordinated liabilities, the discount
rate reflects the margin corresponding to the instrument’s priority position.
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
61
G17.CASH AND CASH EQUIVALENTS
EUR 1,000 31 DEC 2024 31 DEC 2023
Current account in the Bank of Finland 279,361 129,364
Cash and cash equivalents total 279,361 129,364
G18. RECEIVABLES FROM CREDIT INSTITUTIONS
EUR 1,000 31 DEC 2024 31 DEC 2023
Repayable on demand
4,701 2,861
Minimum reserve deposit to Bank of Finland
4,000 2,600
Receivables from credit institutions total
8,701 5,461
G19. CLAIMS ON THE PUBLIC AND PUBLIC SECTOR ENTITIES
EUR 1,000 31 DEC 2024 31 DEC 2023
Enterprises and public sector entities* 45,859 38,617
Public sector entities 680 1,122
Households* 93,427 121,256
Foreigners 3,746 5,444
Claims on the public and public sector entities total* 143,711 166,438
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
62
G20. INTANGIBLE ASSETS
2024
EUR 1,000 Goodwill
Development of
IT software
Customer
relationships
Other intangible
assets Total
Acquisition cost at 1 Jan 5,957 4,674 240 0 10,871
Increases 7,325 562 884 8,771
Fro acquisitions 521 521
Acquisition cost before depreciations 13,282 5,756 1,124 0 20,162
Accumulated depreciation 1 Jan 0 -2,631 -72 0 -2,703
Depreciation -783 -159 -942
Accumulated depreciation 31 Dec 0 -3,414 -231 0 -3,645
Acquisition cost at 31 Dec 13,282 5,756 1,124 0 20,162
Accumulated depreciation 31 Dec 0 -3,414 -231 0 -3,645
Book value 31 Dec 13,282 2,341 894 0 16,517
EUR 1,000 2023
Acquisition cost at 1 Jan 5,957 3,866 240 121 10,184
Transfers between items 121 -121 0
Increases 0 687 0 687
Acquisition cost before depreciations 5,957 4,674 240 0 10,871
Accumulated depreciation 1 Jan 0 -1,913 -24 -91 -2,027
Depreciation 0 -627 -48 0 -675
Transfern between items -91 91 0
Accumulated depreciation 31 Dec 0 -2,631 -72 0 -2,702
Acquisition cost at 31 Dec 5,957 4,674 240 0 10,871
Accumulated depreciation 31 Dec 0 -2,631 -72 0 -2,702
Book value 31 Dec 5,957 2,042 168 0 8,169
Goodwill 31 Dec 2024 31 Dec 2023
Merger of Evli Bank Plc's banking business and Fellow Finance Plc 5,338 5,338
Acquisition of Mobify Invoices Ltd 619 619
Acquisition of PURO Finance Ltd 7,325
Total 13,282 5,957
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
63
Goodwill impairment test
The amount of goodwill at the end of 2024 was EUR 13.3 million (6.0) for the Alisa Bank group.
An impairment test is performed annually, or whenever there are indications of impairment,
for a cash-generating unit to which goodwill has been assigned. In goodwill impairment
testing, the book value of the cash-generating unit is compared to the recoverable amount of
the business in question.
The forecast period of the recoverable cash flow is five years in total. The forecasts are based
on three-year financial forecasts approved by the bank’s board. In determining cash flows
after this, 5 percent growth assumptions have been used, which are estimated to be below
the industry’s long-term growth rate. Cash flows that extend beyond the five-year forecast
period have been determined using the terminal value method. The terminal value growth
assumption is 2 percent, which corresponds to the European Central Bank’s long-term
inflation target. The cash flows are discounted to the present at a discount rate that reflects
the group’s cost of capital before taxes. The cash flows are discounted to the present with
a discount rate that reflects the capital cost of the cash generating unit before taxes. The
discount rate on 31 December 2024 was 9.3 (9.4) percent. The discount rate takes into
account the risk-free rate, country and industry risk, as well as the bank’s volatility and size.
The test results show that the recoverable amount exceeds the carrying value, and therefore,
Alisa Bank has no need to impair goodwill. The sensitivity analysis tested the impact of key
variables on the test result. Key variables include the business’s performance, discount rate,
and the growth assumption after the three-year forecast period. Based on the sensitivity
analysis, the recoverable amount does not change in a way that would create a need for
impairment.
G21. TANGIBLE ASSETS 2024
EUR 1,000
Machinery and
equipment
Right-of-use
property
Acquisition cost at 1 Jan 311 1,010
Increases 23 899
From acquisitions 11
Decrease -294
Acquisition cost before depreciations 346 1,615
Accumulated depreciation 1 Jan -290 -515
Depreciation -11 -331
Accumulated depreciation 31 Dec -301 -846
Acquisition cost at 31 Dec 346 1,615
Accumulated depreciation 31 Dec -301 -846
Tangible assets total, 31 Dec 46 768
2024
EUR 1,000
Acquisition cost at 1 Jan 300 460
Increases 11 550
Acquisition cost before depreciations 311 1,010
Accumulated depreciation 1 Jan -272 -349
Depreciation -9 -147
Other changes -9 -19
Accumulated depreciation 31 Dec -290 -515
Acquisition cost at 31 Dec 311 1,010
Accumulated depreciation 31 Dec -290 -515
Tangible assets total, 31 Dec 22 495
Lease liabilities 31 DEC 2024 31 DEC 2023
Long-term lease liabilities 450 342
Short-term lease liabilities 404 161
Lease liabilities, total 854 503
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
64
G22. OTHER ASSETS
EUR 1,000 31 DEC2024 31 DEC 2023
Commission receivables 330 1,857
Other assets 535 0
Other assets total 865 1,857
G23. ACCRUED INCOME AND PREPAYMENTS
EUR 1,000 31 DEC 2024 31 DEC 2023
Interest receivables 4 5
Prepayments 215 294
Others 168 47
Accrued income and prepayments total 388 346
G24. TAX ASSETS AND LIABILITIES
EUR 1,000 31 DEC 2024 31 DEC 2023
Tax assets
Deferred tax assets
17 3
Current income tax receivables 229 243
Tax liabilities
Deferred tax liabilities
155
Tax assets and liabilities, net 91 246
G25. LIABILITIES TO THE PUBLIC AND PUBLIC SECTOR ENTITIES
EUR 1,000 31 DEC 2024 31 DEC 2023
Deposits 394,639 268,864
Liabilities to the public and public sector entities total 394,639 268,864
G26. SUBORDINATED LIABILITIES
EUR 1,000 31 DEC 2024 31 DEC 2023
Debentures 6,218 6,210
Subordinated liabilities total 6,218 6,210
The debenture loan is an instrument with a lower priority than Alisa Bank’s other
commitments, which belongs to the secondary capital referred to in the solvency regulations
applicable to Alisa Bank. The loan term of the debenture loan is five years and it matures on
October 17, 2027. The fixed annual interest rate of the debenture loan is 8 percent.
G27. OTHER LIABILITIES
EUR 1,000 31 DEC 2024 31 DEC 2023
Lease liabilities 854 503
Personnel related 0 3
Accounts payable 517 544
Liabilities on peer-to-peer loans to investors 1,341 1,780
Other liabilities 1,600 2,722
Other liabilities total 4,312 5,551
Liabilities to peer-to-peer loan investors decreased due to their maturity and sale.
G28. ACCRUED EXPENSES AND DEFERRED INCOME
EUR 1,000 31 DEC 2024 31 DEC 2023
Interest payable 4,835 3,126
Personnel related 1,231 1,022
Accrued expenses 2,551 1,,906
Accrued expenses and prepayments total 8,618 6,054
Other accrued liabilities consist of usual expense provisions and purchased credit base
from the related periodization, which is discharged when the loan portfolio is removed from
the balance sheet.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
65
G29. EQUITY
EUR 1,000 31 DEC 2024 31 DEC 2023
Restricted equity
Share capital 1 Jan
18,289 18,286
Other changes 3
Share capital 31 Dec 18,289 18,289
Total restricted equity 18,289 18,289
Unrestricted equity
Reserve for invested unrestricted equity
31,985 19,917
Retained earnings
-12,408 -12,350
Result for the year*
-1,204 -138
Total unrestricted equity *
18,373 7,429
Total equity*
36,663 25,719
G30. OFF-BALANCE SHEET ITEMS
EUR 1,000 31 DEC 2024 31 DEC 2023
Unused credit facilities 4,861 5,647
Total 4,861 5,647
Off-balance sheet commitments are overdraft facilities granted to customers that the
customer has not withdrawn. The expected credit loss on off-balance sheet items is EUR 68
thousand (EUR 41 thousand).
G31. COLLATERALS RECEIVED
EUR 1,000 31 DEC 2024 31 DEC 2023
Real estate collateral 3,406 1,962
Guarantees received 6,699 9,391
Other 4,674 11,417
Collaterals received total 14,779 22,770
G32. GROUP STRUCTURE
Subsidiaries consolidated into the group 31 DEC 2024 31 DEC 2023
Subsidiaries Domestic
Group
ownership
Group
ownership
Lainaamo Ltd Finland merged to Alisa Bank Plc 100.0 %
Mobify Invoices Ltd Finland merged to Alisa Bank Plc 100.0 %
PURO Finance SPV 1 Ltd Finland 100.0% 0,0%
Fellow Finance Estonia Oü Estonia ceased operations 100.0 %
Fellow Finance Česko s.r.o Czech Republic 100.0% 100.0 %
Fellow Finance Deutschland GmbH Germany 100.0% 100.0 %
Reserve for invested unrestricted equity grew by EUR 12.1 million during the accounting period. 11,599
thousand euros of growth was due to the acquisition of PURO Finance Ltd. In addition, the reserve for
invested unrestricted equity grew at the end of the year by 289 thousand euros through the personnel
issue and by 180 thousand euros through the directed issue to the new CEO.
Alisa Bank’s share has no nominal value. The company held 14,081 own shares at the end of the financial year.
Number of shares in Alisa Bank Plc
1 January 2024 88,332,182
additions
15 May 2024
acquisition of PURO Finance Ltd 58,878,721
9 December 2024 share issue to personnel 1,738,152
13 December 2024 share issue to new CEO 1,082,508
31 December 2024 150,031,563
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
66
G33. RELATED PARTY TRANSACTIONS
Related party refers to key persons in a leading position in Alisa Bank and their family
members, subsidiaries and companies in which a key person in a leading position has control
or joint control. The key persons are the members of the board, the CEO and the CEO’s deputy,
and the rest of the management team.
During the reporting period, business transactions with related parties, board and executive
team members, mainly consisted of Alisa Bank’s deposit liabilities, debenture loans and related
interest. In addition, in connection with the combination with PURO Finance, share subscrip
-
tion loans granted to some of PURO Finance’s personnel were transferred to Alisa Bank Group,
of which the share granted to related parties is shown in the table below.
RELATED PARTY TRANSACTIONS
EUR 1,000 31 DEC 2024 31 DEC 2023
Receivables 83 0
Liabilites 345 509
Expenses 21 16
Total 448 525
Appendix K9 presents the information regarding the remuneration of the management.
Appendix K32 shows the group structure and appendix K1 explains the changes in the group
structure.
G34. SIGNIFICANT EVENTS AFTER THE PERIOD
There are no known events after the end of the accounting period that would require the
presentation of additional information or that would significantly affect the company’s financial
position.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
67
Parent company’s income statement ..............................................................................68
Parent company’s balance sheet ...................................................................................... 69
Parent company’s statement of cash flow ......................................................................70
Parent company’s notes
P1. Parent Company’s accounting policies .....................................................................71
P2. Net interest income ....................................................................................................... 72
P3. Fee and commission income and expenses ............................................................72
P4. Net investment income ................................................................................................ 73
P5. Other operating income ............................................................................................... 73
P6. Personnel expenses ...................................................................................................... 74
P7. Other administrative expenses ..................................................................................74
P8. Depreciation and impairment losses ........................................................................74
P9. Other operating expenses ...........................................................................................74
P10. Realized and expected credit losses .......................................................................75
P11. Income taxes ................................................................................................................ 75
P12. Classes of financial assets and liabilities and fair values ....................................76
P13. Maturities of financial assets and liabilities ...........................................................78
P14. Assets and liabilities in domestic and foreign currencies ....................................79
P15. Cash and cash equivalents ........................................................................................79
P16. Claims on credit institutions ..................................................................................... 80
P17. Claims on public and public sector entities ........................................................... 80
P18. Shares and participations in companies belonging to the group .....................80
P19. Intangible assets ........................................................................................................... 81
P20. Tangible assets ............................................................................................................. 82
P21. Other assets ..................................................................................................................83
P22. Accrued income and prepayments .........................................................................83
P23. Tax assets and liabilities ............................................................................................83
P24. Liabilities to the public and public sector entities ................................................83
P25. Other liabilities ............................................................................................................ 83
P26. Accrued expenses deferred income.........................................................................83
P27. Subordinated liabilities .............................................................................................. 83
P28. Equity ..............................................................................................................................84
P29. Assets pledged as collateral ......................................................................................85
P30. Off-balance sheet commitments .............................................................................85
Parent company´s Financial Statements
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
68
Parent company income statement
EUR 1,000 NOTE 2024 2023
Interest income 29,615 20,077
Interest expenses
-14,368 -5,302
Net interest income P2 15,247 14,775
Fee and commission income P3 2,902 3,172
Fee and commission expenses P3 -1,106 -1,393
Net investment income P4 -15 34
Other operating income P5 119 168
Total operating income
17,147 16,756
Operating expenses
Personnel expenses
P6 -5,962 -5,246
Other administrative expenses P7 -4,479 -4,700
Depreciation and amortization on tangible and
intangible assets
P8 -787 -591
Other operating expenses P9 -11,708 -569
Realized and expected credit losses * P10 -5,640 -5,567
Operating profit * -11,429 82
Profit before taxes *
-11,429 82
Income taxes P11 0 0
Profit (loss) for the financial year * -11,429 82
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
69
Parent company balance sheet
EUR 1,000 NOTE 2024 2023
Assets
Cash and equivalents
P15 279,361 129,364
Claims on credit institutions P16 8,600 4,022
Claims on the public and public sector entities * P17 144,011 166,738
Shares and participation in companies belonging to
the Group
P18 924 5,028
Intangible assets P19 2,345 2,068
Property, plant and equipment P20 46 22
Other assets P21 870 1,857
Accrued income and prepayments P22 385 315
Income tax assets P23 229 243
Assets total *
436,772 309,657
EUR 1,000 NOTE 2024 2023
Liabilities
Liabilities to the public and public sector entities
P24 394,639 268,864
Other liabilities P25 4,325 5,041
Accrued expenses and deferred income P26 8,617 6,031
Subordinated liabilities P27 6,218 6,210
Liabilities total 413,799 286,146
Equity P28
Share capital 18,289 18,289
Fund of invested non-restricted equity 23,343 12,452
Retained earnings -7,230 -7,312
Profit (loss) for financial year * -11,429 82
Equity total * 22,973 23,511
Liabilities and equity total * 436,772 309,657
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
70
Parent company cash flow statement
EUR 1,000 2024 2023
Cash flow from operating activities
Profit (loss) for the period *
-11,429 82
Adjustments for items not included in cash flow
Depreciation and impairment
787 591
Credit losses * 5,531 5,927
Loss from merger 11,427 0
Other adjustments -10 -109
Adjustments total * 17,735 6,410
Cash flows from operating before changes in operating
assets and liabilities *
6,306 6,492
Increase (-) or decrease (+) in operating assets
Claims on the public and public sector entities
17,972 -17,586
Other assets 2,574 -906
Increase (-) or decrease (+) in operating liabilities
Liabilities to the public and public sector entities
125,775 22,055
Other liabilities 1,534 -1,408
Cash flow from operating activities * 154,160 8,647
EUR 1,000 2024 2023
Investing activities
Investments in tangible assets
-23 -2
Investments in intangible assets -508 -744
Sales of tangible assets 35 0
Sales of subsidiaries 0 109
Cash flow from investing activities -496 -637
Cash flow from financing activities
Paid directed share issue
911 0
Cash flow from financing activities 911 0
Change in cash and cash equivalents 154,576 8,010
Cash and cash equivalents at the beginning of period 133,386 125,375
Cash and cash equivalents at the end of period 287,962 133,386
Cash and equivalents are formed by the following items:
Cash and equivalents
279,361 129,364
Claims on credit institutions 8,600 4,022
Cash and cash equivalents at the end of period 287,962 133,386
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
71
P1. Accounting principles for the Parent Company
Company’s basic information
Alisa Bank Plc (“company”) domicile is in Helsinki and registered address is
Bulevardi 21 A, 00180 Helsinki.
The parent company’s financial statements have been prepared and presented in accordance
with the provisions of Act on Credit Institutions, the Decree of the Ministry of Finance
on financial statements and Regulations and Guidelines 2/2016 of the Finnish Financial
Supervisory Authority on accounting, financial statements and management reports for the
financial sector. In addition, the Accounting Act and the Limited Liability Companies Act are
complied with regulations regarding financial statements.
Differences in accounting principles compared to the group
Leases of property, plant and equipment in which substantially all the company’s risks and
rewards of ownership are classified as finance leases. In financial statement, leases payable
under these contracts are treated as rental expenses. Moreover, an asset acquired under a
finance lease is not included in the balance sheet.
Alisa Bank has share-based incentive schemes. According to IFRS, the fair value is amortized
as an expense in the income statement during the period of creation and the counterpart is
recorded in equity. In the FAS financial statement, an expense is only recorded at the time of
payment and only for the portion paid in cash.
In the group, tax deductible temporary differences are calculated as deferred tax assets up to
the amount that it is likely that the group can utilize the temporary difference. Deferred tax
assets and liabilities are not recorded in the parent company.
In other respects, the principles for preparing the company’s separate financial statements
correspond to the principles of Alisa Group.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
72
Notes to the income statement
P2. NET INTEREST INCOME
EUR 1,000 2024 2023
Interest income
Interest income from other loans and claims
Claims on credit institutions
11,628 4,070
Claims on the public and public sector entities 13,101 16,001
From companies belonging to the same group 4,885 6
Interest income Total 29,615 20,077
Interest expenses
Interest expenses from other borrowing
Liabilities to the public and public sector entities and credit
institutions
-13,869 -4,803
Subordinated liabilities -496 -495
Other interest expenses -2 -4
Interest expenses total -14,368 -5,302
Net interest income 15,247 14,775
P3. FEE AND COMMISSION INCOME AND EXPENSES
EUR 1,000 2024 2023
Fee and commission income
Credit related fees and commissions
2,228 2,011
Peer to peer lending
449 951
Insurance brokerage 30 72
BaaS - Banking-as-a-Service fees 122 0
Form companies belonging to the same group 3 0
Other fee and commission income 70 138
Fee and commission income total 2,902 3,172
Fee and commission expenses
Lending
0 -176
Other fee and commission expenses -1,106 -1,216
Fee and commission expenses total -1,106 -1,393
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
73
P4. NET INVESTMENT INCOME
EUR 1,000 2024 2023
Net income from foreign exchange operations -15 34
Net investment income total -15 34
2024
Net investment income from securities
transactions by instrument
Gains and
losses on sales
Changes in fair
value Total
Net income from foreign exchange operations -15 0 -15
Net investemt income total -15 0 -15
2023
Net investment income from securities
transactions by instrument
Gains and
losses on sales
Changes in fair
value Total
Net income from foreign exchange operations 34 0 34
Net investemt income total 34 0 34
P5. OTHER OPERATING INCOME
EUR 1,000 2024 2023
From companies belonging to the same group 11 30
Other income 108 138
Other operating income total 119 168
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
74
P6. PERSONNEL EXPENSES
EUR 1,000 2024 2023
Wages and salaries -5,611 -5,073
Other social security costs -42 -91
Pension expenses -775 -692
Activation of personnel costs 467 609
Personnel expenses total
-5,962 -5,246
The activation of personnel costs includes the share of own work from the costs activated in the
information systems, including social costs.
Number of personnel, average
2024 2023
Number of personnel during the period, average 80 77
Number of personnel at the end of the period 78 76
P7. OTHER ADMINSTRATIVE EXPENSES
EUR 1,000 2024 2023
Office expenses -471 -282
Office expenseses, from companies belonging to the same group -556 -444
IT and infosystems -1,484 -1,891
Business expenses -4 -7
Travel expenses -45 -36
Car expenses -4 -3
Other HR related expenses -208 -123
Marketing expenses -201 -129
Banking and custodian expenses -479 -84
External services
-1,027 -1,701
Other expenses
0 -1
Other administrative expenses total -4,479 -4,700
FEES PAID TO THE AUDIT FIRM
EUR 1,000 2024 2023
Audit -148 -163
Assignments referred to in section 1 subsection 1 section 2 of
the Audit Act
-14 -3
Other services -22
Fees paid to the audit firm total -162 -189
P8. DEPRECIATION AND IMPAIRMENT LOSSES
EUR 1,000 2024 2023
Intangible assets -778 -583
Tangible assets -9 -9
Depreciation, amortization and impairment losses total -787 -591
During the accounting period, the group had EUR 0.1 million in write-downs related to the ending
business operations in Germany and an unrealized IT project
P9. OTHER OPERATING EXPENSES
EUR 1,000 2024 2023
Authorities expenses -32 -270
Rent expenses -207 -169
Loss from merger -11,427 0
Other operating expenses -43 -130
Other operating expenses total -11,708 -569
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
75
P10. REALISED AND EXPECTED CREDIT LOSSES
EUR 1,000 2024 2023
Realized credit losses on receivables
Realized credit losses on loans granted during the financial
year
-267 -320
Realized credit losses on loans granted before the
beginning of the financial year
-6,019 -6,527
Realised and expected credit losses and impairment losses -6,286 -6,847
Expected credit losses (ECL) change * 646 1,279
Impairment of receivables total * -5,640 -5,567
The profit-impacting change in the provision for expected credit losses was 0.6
million euros (1.3*) improving the result. The change resulted from both the reduction in the
credit base of personal customers and the effect of recording final credit losses on business
loans. In the comparison period, the discharge of the ECL reserve was affected by the sale of
the Polish credit portfolio and the reduction of the relative share of the old peer-to-peer loan
portfolio compared to the total portfolio.
The effects of the development of the ECL calculation model applied by the company
and changes in discretionary parameters on the amount of the credit loss provision were
approximately EUR 0.3 million increasing the ECL provision in the financial period (2023:
decreasing it by EUR 0.5 million): The change in insolvency processing increased the ECL
provision by EUR 0.1 million. The price change of the sales contract for overdue receivables
had an effect of EUR -0.1 million, increasing the provision. In the accounting period, the
update of the macroeconomic parameters and the change in the processing of the personal
guarantee also had minor effects on the ECL reserve, increasing it.
The provision for expected credit losses in the financial statements on December 31, 2024,
includes a total of EUR 0.3 million (0.9) increases in provisions at the management’s discretion.
Discretionary reserves are allocated to individual contracts and concern loans granted to
business customers.
Expected credit losses include both receivables from customers and off-balance sheet
commitments.
P11. INCOME TAXES
EUR 1,000 2024 2023
Other direct taxes 0 0
Income taxes total 0 0
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
76
Notes to balance sheet
P12. CLASSES OF FINANCIAL ASSETS AND LIABILITIES AND FAIR VALUES
EUR 1,000 31 DEC 2024
Assets Amortised cost Total
Measured at
fair value
Value
hierarchies
Cash and cash equivalents
279,361 279,361 279,364 1
Claims on credit institutions 8,600 8,600 8,600 1
Claims on the public and public
sector entities
144,011 144,011 150,843 2
Other assets 870 870 870
Total 432,843 432,843 439,677
Liabilities Amortised cost Total
Measured at
fair value
Value
hierarchies
Liabilities to the public and public
sector entities 394,639 394,639 394,970 2
Subordinated liabilities 6,218 6,218 7,153 2
Non-financial liabilities 4,325 4,325 4,325
Total 405,182 405,182 406,448
EUR 1,000 31 DEC 2023
Assets Amortised cost Total
Measured at
fair value
Value
hierarchies
Cash and cash equivalents
129,364 129,364 129,364 1
Claims on credit institutions 4,022 4,022 4,022 1
Claims on the public and public
sector entities *
166,738 166,738 166,738 2
Other assets 1,857 1,857 1,857
Total * 301,981 301,981 301,981
Liabilities Amortised cost Total
Measured at
fair value
Value
hierarchies
Liabilities to the public and public
sector entities 268,864 268,864 268,864 2
Subordinated liabilities 6,210 6,210 6,210 2
Non-financial liabilities 5,041 5,041 5,041
Total 280,115 280,115 280,115
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
77
The company has classified fair values on the basis of the fair value
hierarchy as follows:
Level 1: The fair values of financial instruments (such as publicly quoted derivatives and
shares) traded on the active market are based on market prices quoted at the end of the
reporting period. The quoted market price of financial assets is the current bid price, and
the quoted market price of financial liabilities is the ask price.
Level 2: For financial instruments not traded on the active market, the fair value is
determined using the measurement method. These methods use as much observable
market information as possible and rely as little as possible on company-specific
assessments. If all the significant input data required to determine the fair value of an
instrument are observable, the instrument is classified as level 2.
Level 3: If one or several pieces of significant input data are not based on observable market
data, the instrument is classified as level 3.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
78
P13. MATURITIES OF FINANCIAL ASSETS AND LIABILITIES
2024 2023
EUR 1,000
Less
than 3
months
3-12
months
1-5
years
5-10
years
Over 10
years Total
Less than
3 months
3-12
months 1-5 years 5-10 years
Over 10
years Total
Assets
Financial liabilities at amortized cost
Cash and cash equivalents
279,361 279,361 129,364 129,364
Claims on credit institutions 8,600 8,600 4,022 4,022
Claims on the public and public sector entities * 43,210 20,363 62,029 15,428 2,981 144,011 29,287 5,576 73,282 47,535 17,042 172,722
Liabilities
Financial liabilities at amortized cost
Liabilities to public
355,340 19,313 19,986 394,639 204,192 47,406 17,267 268,864
Subordinated liabilities 118 6,100 6,218 110 6,100 6,210
Off-balance sheet commitments 4,861 4,861 5,647 5,647
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
79
P14. ASSETS AND LIABILITIES DENOMINATED IN DOMESTIC AND FOREIGN CURRENCY
2024 2023
EUR 1,000
Domestic
currency
Foreign
currency Total
Domestic
currency
Foreign
currency Total
Assets
Financial assets at amortized cost
Cash and cash equivalents
279,361 279,361 129,364 129,364
Claims on credit institutions 8,496 104 8,600 4,020 1 4,022
Claims on the public and public sector entities * 142 905 1 106 144,011 165 091 1 648 166,738
Other asset items 3,875 3,8575 4,505 4,505
Total * 434 637 1 211 435,848 302 980 1 649 304,629
Liabilities
Financial liabilities at amortized cost
Liabilities to the public and public sector entities
394,639 394,639 268,864 268,864
Subordinated liabilities 6,218 6,218 6,210 6,210
Other liabilities items 12,936 6 12,942 11,056 16 11,072
Total 413,793 6 413,799 286,130 16 286,146
P15. CASH AND CASH EQUIVALENTS
EUR 1,000 31 DEC 2024 31 DEC 2023
Balances with central banks 279,361 129,364
Cash and cash equivalents total 279,361 129,364
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
80
P16. RECEIVABLES FROM CREDIT INSTITUTIONS
EUR 1,000 31 DEC 2024 31 DEC 2023
Repayable on demand 4,600 1,422
Other than repayable on demand 4,000 2,600
Receivables from credit institutions total 8,600 4,022
P17. CLAIMS ON THE PUBLIC AND PUBLIC SECTOR ENTITIES
EUR 1,000 31 DEC 2024 31 DEC 2023
Other than repayable on demand
Enterprises and housing associations *
30,575 20,937
Public sector entities 680 1,122
Households * 108,710 138,936
Foreign countries 4,046 5,744
Other than repayable on demand total * 144,011 166,738
Claims on the public and public sector entities total * 144,011 166,738
P18. SHARES AND PARTICIPATION IN COMPANIES BELONGING TO THE GROUP
EUR 1,000 2024 2023
At the beginning of the period 5,028 5,028
Effects on business arrangement -16,471 0
Write-downs -25 0
Additions 12,392 0
At the end of the period 924 5,028
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
81
P19. INTANGIBLE ASSETS
2024
EUR 1,000
Development of
IT software Total
Acquisition cost at 1 Jan 5,239 5,239
Increases 508 508
Increases from mergers 546 546
Acquisition cost before depreciations 6,293 6,293
Accumulated depreciation 1 Jan -3,170 -3,170
Depreciation -672 -672
Write-downs related to German operations -94 -94
Write-down related to IT-project -12 -12
Accumulated depreciation 31 Dec -3,948 -3,948
Acquisition cost at 31 Dec 6,293 6,293
Accumulated depreciation 31 Dec -3,948 -3,948
Book value 31 Dec 2,345 2,345
2023
EUR 1,000
Acquisition cost at 1 Jan 4,551 4,551
Increases 688 688
Acquisition cost before depreciations 5,239 5,239
Accumulated depreciation 1 Jan -2,587 -2,587
Depreciation -583 -583
Accumulated depreciation 31 Dec -3,170 -3,170
Acquisition cost at 31 Dec 5,239 5,239
Accumulated depreciation 31 Dec -3,170 -3,170
Book value 31 Dec 2,068 2,068
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
82
P20. TANGIBLE ASSETS
2024
EUR 1,000
Machinery and
equipment
Other tangible
assets Total
Acquisition cost at 1 Jan 273 0 273
Increases 34 0 34
Acquisition cost before depreciations 307 0 307
Accumulated depreciation 1 Jan -252 0 -252
Depreciation -9 0 -9
Accumulated depreciation 31 Dec -261 0 -261
Acquisition cost at 31 Dec 307 0 307
Accumulated depreciation 31 Dec -261 0 -261
Book value 31 Dec 46 0 46
EUR 1,000 2023
Acquisition cost at 1 Jan 272 7 279
Increases 2 0 2
Acquisition cost before depreciations 273 7 280
Accumulated depreciation 1 Jan -243 -7 -250
Depreciation -9 0 -9
Accumulated depreciation 31 Dec -252 -7 -259
Acquisition cost at 31 Dec 273 7 280
Accumulated depreciation 31 Dec -252 -7 -259
Book value 31 Dec 22 0 22
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
83
P21. OTHER ASSETS
EUR 1,000 31 DEC 2024 31 DEC 2023
Commission receivables
330 1,848
Other receivables
540 9
Other assets total
870 1,857
P22. ACCRUED INCOME AND PREPAYMENTS
EUR 1,000 31 DEC 2024 31 DEC 2023
Interest 4 5
Staff-related 58 47
Other items 323 264
Accrued income and prepayments total 385 315
P23. TAX ASSETS AND LIABILITIES
EUR 1,000
31 DEC 2024 31 DEC 2023
Income tax assets 229 243
Tax assets and liabilities total 229 243
P24. LIABILITIES TO THE PUBLIC AND PUBLIC SECTOR ENTITIES
EUR 1,000
31 DEC 2024 31 DEC 2023
Liabilities to public
Repayable on demand
394,639 268,864
Liabilities to the public and public sector entities total
394,639 268,864
P25. OTHER LIABILITIES
EUR 1,000 31 DEC 2024 31 DEC 2023
Other short-term liabilities 4,151 4,885
VAT and withholding tax payable 175 156
Other liabilities total 4,325 5,041
P26. ACCRUED EXPENSES AND DEFERRED INCOME
EUR 1,000 31 DEC 2024 31 DEC 2023
Personnel related 1,231 1,022
Interest expenses 4,835 3,126
Other accrued expenses 2,550 1,882
Accrued expenses and deferred income total 8,617 6,031
P27. SUBORDINATED LIABILITIES
EUR 1,000 31 DEC 2024 31 DEC 2023
Debentures 6,218 6,210
Subordinated liabilities total 6,218 6,210
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
84
P28. EQUITY
EUR 1,000 31 DEC 2024 31 DEC 2023
Restricted equity
Share capital 1 Jan
18,289 18,289
Share capital 31 Dec
18,289 18,289
Total restricted equity
18,289 18,289
Unrestricted equity
Fund of invested non-restricted equity 1 Jan
12,452 12,452
Axquisition
10,422 0
Share issue
469 0
Fund of invested non-restricted equity 31 Dec
23,343 12,452
Retained earnings 1 Jan
-7,230 -7,312
Result for the year *
-11,429 82
Retained earnings 31 Dec *
-18,659 -7,230
Total unrestricted equity *
4,684 5,222
Total equity * 22,973 23,511
P28. EQUITY
EUR 1,000 31 DEC 2024 31 DEC 2023
Calculation of distributable equity
Retained earnings 1 Jan
-7,230 -7,312
Result for the year * -11,429 82
Reserve for invested unrestricted equity 23,343 12,452
Capitalized development expenditure -2,345 -2,071
Total * 2,339 3,151
Share capital of the company 31 DEC 2024 31 DEC 2023
The company’s shares are quoted on the Nasdag Helsinki
under the trading code ALISA.
No. of shares (ALISA) 150.031.563 88.332.182
Total 150.031.563 88.332.182
Each share carries one vote at a General Meeting of Shareholders
Own shares held by the credit institution
On December 31, 2024 the company hold a total of 14.081 own shares.
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
85
P29. ASSETS PLEDGED AS COLLATERAL
EUR 1,000 2024 2023
ASSETS
Fair value of
encumbered
assets
Fair value of
unencumbered
assets
of which usable
as collateral
Fair value of
encumbered
assets
Fair value of
unencumbered
assets
of which usable
as collateral
Cash and cash equivalents 0 279,361 275,360 0 129,364 126,864
Claims on credit institutions 0 8,600 8,600 0 4,022 4,022
Claims on the public and public sector entities * 0 144,011 0 0 166,738
Total * 0 431,973 283,960 0 300,124 130,886
P30. OFF-BALANCE SHEET COMMITMENTS 2024 2023
Unused credit facilities, given to clients 4,861 5,647
Total 4,861 5,647
Off-balance sheet commitments are overdraft facilities granted to customers that the customer has not withdrawn.
* ECL correction 2023, see page 36
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
86
The financial statement prepared in compliance with the applicable financial statement regulations gives a true and fair view of the assets,
liabilities, financial position and profit or loss of both the company and the entire group of companies included in its consolidated financial statements.
The annual report contains a truthful view of the business development and performance of the company and of the companies included in its consolidated financial
statements on the one hand, as well as a description of the most significant risks and uncertainties and the rest of the company’s condition.
Helsinki, February 14, 2025
Signatures on the Financial Statements and the Annual Report
Auditor’s Note
Based on the auditing an audit report has been issued today.
Helsinki, February 14, 2025
KPMG Oy
Authorised Public Accountants
Tiia Kataja
Authorised Public Accountant (KHT)
Jukka Salonen
Markku Pohjola
Chairman of the Board
Johanna Lamminen
Deputy Chairman of the Board
Sampsa Laine
CEO
Tero WeckrothSami Honkonen
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
87
Auditor’s Report
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
To the Annual General Meeting of Alisa Bank Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Alisa Bank Plc (business identity code 0533755-0) for
the year ended 31 December, 2024. The financial statements comprise the consolidated balance
sheet, income statement, statement of comprehensive income, statement of changes in equity,
cash flow statement and notes, including material accounting policy information, as well as the
parent company’s balance sheet, income statement, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial
position, financial performance and cash flows in accordance with IFRS Accounting
Standards as adopted by the EU
• the financial statements give a true and fair view of the parent company’s financial
performance and financial position in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee and to
Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our
responsibilities under good auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance with
the ethical requirements that are applicable in Finland and are relevant to our audit, and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided
to the parent company and group companies are in compliance with laws and regulations
applicable in Finland regarding these services, and we have not provided any prohibited
non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. We have not provided
any non-audit services to the bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is
determined based on our professional judgement and is used to determine the nature, timing
and extent of our audit procedures and to evaluate the effect of identified misstatements on
the financial statements as a whole. The level of materiality we set is based on our assessment
of the magnitude of misstatements that, individually or in aggregate, could reasonably be
expected to have influence on the economic decisions of the users of the financial statements.
We have also taken into account misstatements and/or possible misstatements that in our
opinion are material for qualitative reasons for the users of the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance
in our audit of the financial statements of the current period. These matters were addressed
in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. The significant risks of
material misstatement referred to in the EU Regulation No 537/2014 point (c) of Article 10(2) are
included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes
consideration of whether there was evidence of management bias that represented a risk of
material misstatement due to fraud.
We have not identified key audit matters relating to the parent company’s financial statements.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
88
THE KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED
IN THE AUDIT
Claims on the public and public sector entities – measurement
(notes G13 and G19 to the consolidated financial statements)
Claims on the public and public sector entities,
totalling EUR 144 million, is a significant item on the
Alisa Bank’s balance sheet representing 32 % of the
total assets.
Calculation of expected credit losses (ECL) in
accordance with IFRS 9 Financial Instruments is based
on the impairment models applied by Alisa Bank and
expert estimates. This involves estimates, assumptions,
and management judgements, especially in respect of
determining the probability of expected credit losses as
well as significant increases in credit risk.
Developments in the economic environment and
related uncertainties may increase credit risk, which
can realise in higher impairment loss on claims.
The elements of accounting for expected credit losses
are updated and defined, based on materialised credit
risk developments, improvements of the accounting
process as well as on regulations and changes therein.
Due to the significance of the carrying amount
involved, complexity of the accounting methods
used for measurement purposes and management
judgement involved, measurement of claims is
addressed as a key audit matter.
We obtained an understanding of Alisa Bank’s lending
process, credit risk management and calculation of
expected credit losses.
We evaluated compliance with the lending
instructions and assessed credit risk management as
well as the principles and controls over recognition
of claims.
We assessed the methods and the key assumptions
used for calculating expected credit losses (ECL) as
well as tested the controls related to the calculation
process and credit risk models for expected credit
losses.
The focus areas in our audit included the replication
of the ECL provisioning under the impairment model
and the basis for recording overlays relying on
management judgements and estimates.
Our IFRS and financial instruments specialists were
involved in the audit.
Furthermore, we considered the appropriateness of
the notes provided in respect of claims and expected
credit losses.
Acquisition of PURO Finance Ltd (Accounting principles for the consolidated
financial statements and note G3 to the consolidated financial statements)
Alisa Bank Plc acquired the entire share capital of
PURO Finance Ltd on 15 May 2024. The purchase
consideration amounted to EUR 11.8 million,
consisting of new shares issued by Alisa Bank.
The acquisition has been accounted for in accordance
with IFRS 3 Business Combinations in Alisa Bank’s
consolidated financial statements.
The identifiable assets and liabilities acquired are
measured at fair value at the acquisition date,
which requires management estimates. Based
on the acquisition calculation, EUR 0.9 million of
the acquired assets were allocated to customer
contracts, resulting in goodwill of EUR 7.3 million.
In addition, the acquired credit portfolio was subject
to an impairment adjustment of EUR 1.0 million in
accordance with IFRS 9.
The accounting treatment of the acquisition of PURO
Finance Ltd’s share capital is addressed as a key
audit matter because of the material impact of the
acquisition on the Group’s financial statements, and
the valuation techniques involved, and estimates
made by management in determining the fair value of
the net assets acquired.
We gained an understanding of the share purchase
agreement and other documentation related to the
acquisition of PURO Finance Ltd.
We assessed the valuation techniques used and
the estimates made by management in Alisa Bank’s
identification of the assets and liabilities acquired
and determination of their fair values. We tested the
appropriateness and mathematical accuracy of the
valuation techniques and compared the inputs used
with the terms and conditions of the share purchase
agreement.
We assessed the accounting policy for the acquisition
calculation and the correctness of the calculation
formulas.
KPMG’s valuation and IFRS specialists were involved
in the audit.
Furthermore, we considered the appropriateness of
the accounting policy and the notes to the financial
statements in respect of the business combination.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
89
Responsibilities of the Board of Directors and the Managing Director
for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of
consolidated financial statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU, and of financial statements that give a true and
fair view in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements. The Board of Directors and
the Managing Director are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are
responsible for assessing the parent company’s and the group’s ability to continue as a going
concern, disclosing, as applicable, matters relating to going concern and using the going
concern basis of accounting. The financial statements are prepared using the going concern
basis of accounting unless there is an intention to liquidate the parent company or the
group or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with good auditing
practice will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the
basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the parent company’s or the group’s
internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s
use of the going concern basis of accounting and based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the parent company’s or the group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the parent company or the group to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events so that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business units within the group as a basis for
forming an opinion on the group financial statements. We are responsible for the direction,
supervision and review of the audit work performed for purposes of the group audit. We
remain solely responsible for our audit opinion.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
90
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and communicate with
them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on 20 April 2023, and
our appointment represents a total period of uninterrupted engagement of 2 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information.
The other information comprises the report of the Board of Directors and the information
included in the Annual Report, but does not include the financial statements or our auditor’s
report thereon. We have obtained the report of the Board of Directors prior to the date of this
auditor’s report, and the Annual Report is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated. With respect to the report of the Board of
Directors, our responsibility also includes considering whether the report of the Board of
Directors has been prepared in compliance with the applicable provisions.
In our opinion, the information in the report of the Board of Directors is consistent with the
information in the financial statements and the report of the Board of Directors has been
prepared in compliance with the applicable provisions.
If, based on the work we have performed on the other information that we obtained prior to
the date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Helsinki, 14 February 2025
KPMG Oy Ab
Tiia Kataja
Authorised Public Accountant, KHT
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
91
Independent auditor’s report on the ESEF financial
statements of Alisa Bank Plc
To the Board of Directors of Alisa Bank Plc
We have performed a reasonable assurance engagement on the financial statements
743700VK1NB8HRGTQH74-2024-12-31-0-en.zip of Alisa Bank Plc (Business ID 0533755-0) that
have been prepared in accordance with the Commission’s regulatory technical standard for the
financial year ended 31.12.2024.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of
the company’s report of the Board of Directors and financial statements (the ESEF financial
statements) in such a way that they comply with the requirements of the Commission’s
regulatory technical standard. This responsibility includes:
• preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the
Commission’s regulatory technical standard
• tagging the primary financial statements, notes and company’s identification data in the
consolidated financial statements that are included in the ESEF financial statements with
iXBRL tags in accordance with Article 4 of the Commission’s regulatory technical standard
and
• ensuring the consistency between the ESEF financial statements and the audited financial
statements.
The Board of Directors and the Managing Director are also responsible for such internal control as
they determine is necessary to enable the preparation of ESEF financial statements in accordance
with the requirements of the Commission’s regulatory technical standard.
Auditor’s independence and quality management
We are independent of the company in accordance with the ethical requirements that are
applicable in Finland and are relevant to the engagement we have performed, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which requires
the firm to design, implement and operate a system of quality management including
policies or procedures regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets
Act, provide assurance on the financial statements that have been prepared in accordance
with the Commission’s regulatory technical standard. We express an opinion on whether the
consolidated financial statements that are included in the ESEF financial statements have
been tagged, in all material respects, in accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been
provided. We conducted a reasonable assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
• whether the primary financial statements in the consolidated financial statements that are
included in the ESEF financial statements have been tagged, in all material respects, with
iXBRL tags in accordance with the requirements of Article 4 of the Commission’s regulatory
technical standard and
• whether the notes and company’s identification data in the consolidated financial
statements that are included in the ESEF financial statements have been tagged, in all
material respects, with iXBRL tags in accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
• whether there is consistency between the ESEF financial statements and the audited
financial statements.
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
92
The nature, timing and extent of the selected procedures depend on the auditor’s judgment.
This includes an assessment of the risk of a material deviation due to fraud or error from the
requirements of the Commission’s regulatory technical standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the
primary financial statements, notes and company’s identification data in the consolidated
financial statements that are included in the ESEF financial statements of Alisa Bank Plc
743700VK1NB8HRGTQH74-2024-12-31-0-en.zip for the financial year ended 31.12.2024
have been tagged, in all material respects, in accordance with the requirements of the
Commission’s regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of Alisa Bank Plc for the
financial year ended 31.12.2024 has been expressed in our auditor’s report dated 14.2.2025.
With this report we do not express an opinion on the audit of the consolidated financial
statements nor express another assurance conclusion.
Helsinki 27 February 2025
KPMG OY AB
Tiia Kataja
Authorised Public Accountant, KHT
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
93
Governance
In addition to legislation and other regulations, Alisa Bank’s
operations and administration are guided by the Articles of
Association and the company’s values and internal operating
principles. Alisa Bank also complies with the Corporate
Governance Code 2020. The code can be viewed on the
internet at www.cgfinland.fi/en.
93
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
General Meeting
Alisa Bank’s highest decision-making power is exercised by the shareholders at the General
Meeting. General Meetings are held at least once a year. In addition to the General Meeting,
Alisa Bank’s corporate governance model consists of the Board of Directors and the CEO. The
Group’s Management Team assists the CEO in the operative management of the company.
Board of Directors
The Board of Directors is responsible for Alisa Bank’s administration and appropriate
organisation of operations. The Board of Directors has overall authority to decide on all
matters related to the company’s administration and other matters which, under the law or
the Articles of Association, do not belong to the General Meeting or the CEO.
The Board of Directors meets regularly at least six times per year. If necessary, the Board of
Directors can meet more often. The Board of Directors is quorate when more than half of the
members are present. The Board of Directors is elected by the General Meeting.
In accordance with the Articles of Association, the company’s Board of Directors shall consist
of at least four (4) and at most eight (8) regular members whose term shall expire at the close
of the Annual General Meeting that follows their election.
Alisa Bank Plc’s Corporate Governance Statement can be found on the company’s website,
www.alisabank.com
94
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
Markku Pohjola
Chairman of the Board
b. 1948
B.Sc. (Econ.)
Tero Weckroth
b. 1971
Licensed pharmacist and MBA
Sami Honkonen
b. 1983
B.Sc.
Johanna Lamminen
Vice Chairman of the Board
b. 1966
D.Sc. (Tech.) and MBA
Jukka Salonen
b. 1959
D.Sc (Econ) and M.Sc. (Tech.)
Changes in the composition of the Board of Directors during the 2024 financial year are described in the Board of Directors’ Report.
The company’s Board of Directors includes the following persons at the end of 2024:
9595
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORTALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2023 BOARD OF DIRECTORS’ REPORT
The Board’s committees
Audit Committee
The Audit Committee is responsible for assisting the Board of Directors in ensuring that
the company has an adequate internal control system covering all operations and that the
company’s risk management has been arranged appropriately, and it also monitors the
financial statements reporting process.
The Audit Committee comprises chairman Johanna Lamminen, members Sami Honkonen and
Jukka Salonen.
Personnel Committee
The Personnel Committee, which also acts as the Compensation Committee, is responsible
for assisting the company’s Board in the preparation of matters related to the terms of
employment and remuneration of management and employees. The Personnel Committee
monitors and assesses the company’s wellbeing at work, personnel satisfaction and
development.
The Personnel Committee at the end of year: chairman Markku Pohjola and member Tero
Weckroth.
Shareholders’ Nomination Board
Alisa Bank Plc’s Shareholders’ Nomination Board prepares proposals regarding the election
and remuneration of the members of the Board for the Annual General Meeting. In
accordance with the charter of the Shareholders’ Nomination Board, each of the four largest
shareholders of the company shall appoint a member to the Shareholders’ Nomination
Board. The shareholders who are entitled to appoint a member are determined annually on
the basis of the company’s shareholder register maintained by Euroclear Finland Oy on the
last working day of August each year.
Composition of the Nomination Committee:
• Maunu Lehtimäki (Chairman)
• Peter Ramsay
• Mika Laine
• Antti Kemppi
• In addition, Markku Pohjola, the Chairman of the Board of Alisa Bank, serves as an expert
in the Nomination Committee without being a member.
CEO and Management Team
The CEO is responsible for the day-to-day management of the company in accordance
with the Limited Liability Companies Act and the instructions, orders and authorisations
issued by the Board. The CEO also ensures that the company’s accounting practices are in
compliance with the law and that the company’s financial management has been arranged
in a reliable manner.
The Board of Directors shall appoint the CEO and shall decide on the remuneration of the
CEO and the other terms and conditions of the CEO’s service contract.
The Management Team assists the CEO in the operational management. Sampsa Laine
served as CEO at the end of 2024.
96
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORT
The members of the Management Team at the end of 2024:
Antoni Airikkala
b. 1985
Director, Funding and liquidity
M.Soc.Sc.
Essi Salmela
b. 1989
Chief Risk Officer
M.Sc. (Econ. & Bus. Adm.).
Kukka Lehtimäki
b. 1988
CFO
M.Sc. (Econ. & Bus. Adm.)
Juha Saari
b. 1979
Director, Personal Customers;
Deputy CEO
Secondary-school graduate
Sampsa Laine
b. 1969
CEO
M.Sc. (Econ. & Bus. Adm.)
Junno Roine
b. 1976
Director, Business Customers
Bachelor of Business Administration,
MBA
Juho Väinölä
b. 1982
Director, Strategic Projects and Analytics
M.Sc (Econ. & Bus. Adm.)
Katja Vähäsilta
b. 1969
General Counsel
LL.M, Trained on the Bench
9797
ALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2024 BOARD OF DIRECTORS’ REPORTALISA BANK IN BRIEF GOVERNANCEFINANCIAL STATEMENTSALISA BANK | ANNUAL REPORT 2023 BOARD OF DIRECTORS’ REPORT
Alisa Bank Plc
Bulevardi 21 A
00180 Helsinki
Tel. +358 20 380 101
www.alisabank.com
www.linkedin.com/company/alisa-pankki/
https://x.com/AlisaPankkiFi