Aktia Plc Interim report 1.1-30.6.2012

Aktia plc
Interim report

Aktia Plc Interim report 1.1-30.6.2012

Cost cuts contributed to improved result

Helsinki, Finland, 2012-08-06 07:01 CEST (GLOBE NEWSWIRE) -- 


COST CUTS CONTRIBUTED TO IMPROVED RESULT

CEO JUSSI LAITINEN
”Aktia made a good result despite financial turbulence. Our first cost-cutting
measures have led to results, and the Group’s costs have decreased. Continued
turbulence in Europe and low interest rates keep up the pressure to cut the
Group’s total expenditure. Despite continued savings measures, we will maintain
a high level of ambition in services for our customers. ” 

APRIL-JUNE 2012: OPERATING PROFIT EUR 18.0 (12.1) MILLION

• Group operating profit from continuing operations was EUR 18.0 (12.1) million.
• Profit for the period amounted to EUR 14.4 (8.9) million.
• Income increased by 6% to EUR 55.8 (52.6) million, of which net interest
income amounted to EUR 29.7 (33.0) million. 
• As a result of increased cost awareness and initiated cost reduction
measures, with an ambition to cut costs by 10%, total expenses decreased by 3%
to EUR 37.3 (38.5) million. 
• Write-downs were cut by half, standing at EUR 1.0 (1.9) million.
• Earnings per share stood at EUR 0.21 (0.13).

JANUARY-JUNE 2012: OPERATING PROFIT EUR 32.5 (31.4) MILLION

• Group operating profit from continuing operations was EUR 32.5 (31.4) million.
• Profit for the period amounted to EUR 34.2 (23.1) million.
• Earnings per share stood at EUR 0.51 (0.33), of which earnings per share from
continuing operations was EUR 0.36 (0.33). 
• The capital adequacy ratio increased to 18.9 (16.2)% and the Tier 1 capital
ratio to 11.7 (10.6)%. NAV was EUR 7.87 (31 December 2011: EUR 7.01). 
• Net interest income from borrowing and lending operations was EUR 30.3 (30.7)
million. Total net interest income fell to EUR 59.3 (67.2) million due to low
interest rates and maturing interest rate derivatives. 
• Write-downs on credits and other commitments decreased by 46% to EUR 2.8
(5.3) million. 
• IMPROVED OUTLOOK: Operating profit for the financial period from continuing
operations 2012 is expected to be on the same level as for 2011. (changed; see
the complete outlook on page 12). 



KEY FIGURES     4-6/    4-6/   ? %    1-6/    1-6/   ? %    1-3/    2011  10-12/
(EUR            2012    2011          2012    2011          2012            2011
 million)                                                                       
--------------------------------------------------------------------------------
Net interest    29.7    33.0  -10%    59.3    67.2  -12%    29.6   128.6    30.3
 income                                                                         
--------------------------------------------------------------------------------
Total           55.8    52.6    6%   109.0   110.9   -2%    53.2   201.9    49.6
 operating                                                                      
 income                                                                         
--------------------------------------------------------------------------------
Total          -37.3   -38.5   -3%   -73.8   -74.1    0%   -36.5  -146.6   -38.8
 operating                                                                      
 expenses                                                                       
--------------------------------------------------------------------------------
Operating       19.0    14.0   35%    35.4    36.6   -3%    16.4    55.3    10.8
 profit                                                                         
 before                                                                         
 write downs                                                                    
 on credits,                                                                    
 continuing                                                                     
 operations                                                                     
--------------------------------------------------------------------------------
Write-downs     -1.0    -1.9  -51%    -2.8    -5.3  -46%    -1.9   -10.5    -4.1
 on credits                                                                     
 and other                                                                      
 commitments                                                                    
--------------------------------------------------------------------------------
Operating       18.0    12.1   49%    32.5    31.4    4%    14.5    44.8     6.6
 profit from                                                                    
 continuing                                                                     
 operations                                                                     
--------------------------------------------------------------------------------
Cost-to-inco    0.69    0.74   -7%    0.69    0.68    1%    0.68    0.73    0.78
me ratio                                                                        
--------------------------------------------------------------------------------
Earnings per    0.21    0.13   67%    0.51    0.33   53%    0.29    0.53    0.12
 share                                                                          
 (EPS), EUR                                                                     
--------------------------------------------------------------------------------
Equity per      7.88    6.43   23%    7.88    6.43   23%    7.89    7.01    7.01
 share                                                                          
 (NAV)1, EUR                                                                    
--------------------------------------------------------------------------------
Return on        9.8     7.6   30%    12.3     9.4   31%    14.3     7.2     6.1
 equity                                                                         
 (ROE), %                                                                       
--------------------------------------------------------------------------------
Capital         18.9    16.6   13%    18.9    16.6   13%    18.1    16.2    16.2
 adequacy                                                                       
 ratio1, %                                                                      
--------------------------------------------------------------------------------
Tier 1          11.7    10.8    9%    11.7    10.8    9%    11.3    10.6    10.6
 capital                                                                        
 ratio1, %                                                                      
--------------------------------------------------------------------------------
Write-downs     0.01    0.03  -67%    0.04    0.08  -50%    0.03    0.15    0.06
 on credits                                                                     
 / total                                                                        
 credit                                                                         
 stock, %                                                                       
--------------------------------------------------------------------------------

1) At the end of the period

The Interim report January-June 2012 is a translation of the original Swedish
version ”Delårsrapport 1.1-30.6.2012”. In case of discrepancies, the Swedish
version shall prevail. 


         Jussi Laitinen, CEO tel. +358 10 247 5000
         Stefan Björkman, Deputy CEO and CFO tel. +358 10 247 6595
         Anna Gabrán, IR-manager tel. +358 10 247 6501
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Aktia Plc Interim report 1.1-30.6.2012