AKTIA PLC INTERIM REPORT 1 JANUARY - 30 AUGUST 2011
8/3/2011 1:00 AM EST
Aktia plc
Interim report
AKTIA PLC INTERIM REPORT 1 JANUARY - 30 AUGUST 2011
AKTIA PLC INTERIM REPORT 3.8.2011 AT 8.00 AM EET
Helsinki, Finland, 2011-08-03 07:00 CEST (GLOBE NEWSWIRE) --
CEO JUSSI LAITINEN:
"Net interest income (NII) weakened as expected, as the effects of interest
rate hedging activities gradually tailed off, adversely affecting operating
profit for the period. Net commission and life insurance income increased,
partly compensating for the weaker NII. Investments in IT have temporarily
pushed up operating expenses, but they are expected to increase earnings in the
longer term and support a more efficient way of working. In my view, we need to
reduce costs by 10% and this has to be done during the coming three years. The
turbulence in the European financial markets has continued, which had a
negative effect on the interim result. Aktia's liquidity and capital adequacy
provide a stable base for the business.""
JANUARY- JUNE 2011: OPERATING PROFIT EUR 30.9 (41.0) MILLION
-- Group operating profit fell back to EUR 30.9 (41.0) million, and profit for
the period to EUR 23.1 (30.0) million.
-- Earnings per share stood at EUR 0.33 (0.43).
-- Operating income was EUR 120.3 (127.2) million and operating expenses EUR
83.5 (78.8) million.
-- Balance sheet total amounted to EUR 10,746 (11,019) million.
-- Capital adequacy ratio increased to 16.6 (15.9)% and Tier 1 capital ratio
to 10.8 (10.1)%.
-- Return on equity was 9.4 (12.4)%.
-- Write-downs on credits and outstanding premiums stood at EUR 5.7 (8.4)
million.
-- Aktia Bank plc's credit rating remained unchanged A1/C/P-1 (Moody's
Investors Service).
-- The full-year result for 2011 will be lower than in 2010 (amended, outlook
in details on p. 14)
APRIL-JUNE 2011: OPERATING PROFIT EUR 12.1 (23.5) MILLION
-- Group operating profit amounted to EUR 12.1 (23.5) million, and profit for
the period stood at EUR 8.9 (17.5) million.
-- Earnings per share stood at EUR 0.13 (0.25).
-- Operating income was EUR 57.7 (66.2) million and operating expenses EUR
43.4 (40.0) million
-- Return on equity was 7.6 (14.2)%
-- Write-downs on credits and outstanding premiums decreased to EUR 2.1 (3.8)
million.
Key figures for
the Group
(EUR million) 1-6/ 1-6/ ?% 4-6/ 4-6/ ?% 1-3/ 1-12/
2011 2010 2011 2010 2011 2010
Net interest 68.3 76.8 -11 % 33.6 38.2 -12 % 34.7 149.3
income
Total operating 120.3 127.2 -5 % 57.7 66.2 -13 % 62.6 249.4
income
Total operating -83.5 -78.8 6 % -43.4 -40.0 9 % -40.1 -159.0
expenses
Operating profit 36.6 49.4 -26 % 14.2 27.4 -48 % 22.4 92.0
before write
downs on credits
Write-downs on -5.7 -8.4 -32 % -2.1 -3.8 -45 % -3.6 -14.1
credits, other
commitments and
outstanding
premium
receivables
Operating profit 30.9 41.0 -25 % 12.1 23.5 -49 % 18.8 77.9
Cost-to-income 0.68 0.55 24 % 0.74 0.54 37 % 0.63 0.59
ratio
Earnings per share 0.33 0.43 -24 % 0.13 0.25 -48 % 0.20 0.83
(EPS), EUR
Equity per share 6.43 6.89 -7 % 6.43 6.89 -7 % 6.14 6.81
(NAV)1, EUR
Return on equity 9.4 12.4 -24 % 7.6 14.2 -47 % 11.9 12.0
(ROE), %
Capital adequacy 16.6 16.5 1 % 16.6 16.5 1 % 16.0 15.9
ratio1, %
Tier 1 capital 10.8 10.1 6 % 10.8 10.1 6 % 10.3 10.1
ratio1, %
Write-downs on 0.08 0.13 -38 % 0.03 0.05 -40 % 0.05 0.20
credits / total
credit stock, %
1 At the end of
the period
AKTIA PLC:
CEO Jussi Laitinen, tel +358 10 247 5000
CFO, Deputy CEO Stefan Björkman, tel +358 10 247 6595
Investor Relations Manager Anna Gabrán, tel +358 10 247 6501,
anna.gabran(at)aktia.fi