Bank of Åland Plc and Borgo AB agreed to shift mortgage support work to Borgo ahead of schedule, a move the bank expects will eventually end its related platform income.
Bank of Åland expects the agreement to produce a one-time increase of about EUR 8 million in operating profit in the fourth quarter of 2026. Separately, it expects income from the platform arrangement to decline as it stops providing the services.
The companies signed the agreement Oct. 19. Their arrangement began when Borgo was formed in 2021, with Bank of Åland supplying platform services, administering mortgages and contributing expertise in mortgage operations.
Borgo gained the capacity to take on the work through its acquisition of Hypoteket, Bank of Åland said. The purchase was announced in August 2025 and later received the required regulatory approvals.
Borgo CEO Pehr Olofsson described the shift as a step toward a “more integrated operating model.” Bank of Åland Managing Director and Chief Executive Peter Wiklöf said the bank looked forward to continuing its relationship with Borgo as a distributor and shareholder.
Bank of Åland will keep its stake in Borgo and continue distributing Borgo mortgages in Sweden. It expects the volume of work it handles for Borgo to fall during the phase-out, along with the income it receives from that work.
The bank does not expect the agreement to affect its customers or its Swedish mortgage offering. Both companies intend to avoid disrupting customers and distributors as Borgo takes over the services.
The handover will move data and operating tasks from Bank of Åland’s platforms to Borgo’s planned solution. It is scheduled to begin in the fourth quarter of 2026 and continue through 2027.
