Aktia Bank plc: Accounts Announcement 1.1-31.12.2014

Aktia Bank plc
Accounts Announcement
12 February 2015 at 8:00 a.m.

STRONG RESULT, IRBA ENABLES FUTURE GROWTH

CEO JUSSI LAITINEN

Aktia achieved a good result for the whole year, net commission income continued to grow throughout the year and costs decreased according to plan. Aktia’s core banking project is progressing, but investment costs will be higher than planned due to increased costs for testing and prolonged parallel operation of the new and existing banking systems. The Finnish Financial Supervisory Authority granted Aktia permission to implement an internal method for risk classification (IRBA), further strengthening our good capital adequacy and enabling growth. Taking this into account, Aktia will present its new strategy and update its long-term objectives in spring 2015”

OCTOBER-DECEMBER 2014: OPERATING PROFIT EUR 12.6 (11.1) million

  • The Group’s operating profit amounted to EUR 12.6 (11.1) million and profit for the period amounted to EUR 10.4 (11.9) million.
  • Net commission income increased by 6% to EUR 18.9 (17.8) million. Net interest income (NII) amounted to EUR 25.3 (27.3) million.
  • Earnings per share (EPS) stood at EUR 0.14 (0.18)

JANUARY-DECEMBER 2014: OPERATING PROFIT EUR 68.3 (65.4) million

  • The Group’s operating profit amounted to EUR 68.3 (65.4) million and profit for the period amounted to EUR 55.0 (52.4) million.
  • Net commission income increased by 6% to EUR 74.9 (70.7) million and borrowing increased to EUR 3,979 (3,797) million. Net interest income (NII) decreased to EUR 102.8 (112.6) million.
  • Earnings per share (EPS) was EUR 0.79 (0.78).
  • The Board of Directors proposes an increased dividend of EUR 0.48 (0.42) per share.
  • According to the Basel III capital requirement the capital adequacy ratio stood at 19.0 (19.3**)% and the Core Tier 1 capital ratio at 14.5 (12.1**)%.
  • Equity per share stood at EUR 9.39 (31 December 2013: 8.67).
  • Write-downs on credits and other commitments decreased from the previous year amounting to EUR 1.7 (2.7) million.
  • OUTLOOK 2015 (new): Aktias operating profit for 2015 is expected to reach a similar level as 2014.
KEY FIGURES
(EUR million)
10-12/ 2014 10-12/ 2013 ∆ %      2014 2013 ∆ %      7-9/ 2014 4-6/ 2014 1-3/ 2014
Net interest income 25.3 27.3 -7% 102.8 112.6 -9% 26.1 25.9 25.4
Net commission income 18.9 17.8 6% 74.9 70.7 6% 17.6 19.6 18.8
Total operating income 51.7 57.3 -10% 212.3 224.2 -5% 50.1 58.4 52.0
Total operating expenses -39.3 -45.9 -14% -144.5 -157.2 -8% -32.8 -36.2 -36.1
Write-downs on credits and other commitments 0.0 -1.1 -98% -1.7 -2.7 -37% -0.5 -0.8 -0.4
Operating profit 12.6 11.1 13% 68.3 65.4 4% 17.3 22.0 16.4
Cost-to-income ratio 0.78 0.87 -10% 0.71 0.72 -1% 0.69 0.64 0.72
Earnings per share (EPS), EUR 0.14 0.18 -23% 0.79 0.78 1% 0.19 0.27 0.20
Equity per share (NAV)1, EUR 9.39 8.67 8% 9.39 8.67 8% 9.27 8.96 8.55
Return on equity (ROE), % 6.0 7.5 -19% 8.3 8.1 2% 8.1 11.1 8.2
Core Tier 1 capital ratio1, % * 14.6 12.1 20% 14.6 12.1 20% 14.2 13.8 13.6
Capital adequacy ratio1, % ** 19.1 19.3 -1% 19.1 19.3 -1% 18.4 17.8 17.3
Tier 1 capital ratio1, % ** 14.6 12.3 18% 14.6 12.3 18% 14.2 13.8 13.6
Write-downs on credits / total credit stock, % 0.00 0.02 -100% 0.03 0.04 -25% 0.01 0.01 0.01

1) At the end of the period. * According to Basel III, **2014 according to Basel III, 2013 according to Basel II

The  Accounts Announcement January-December 2014 is a translation of the original Swedish version ”Bokslutskommuniké 1.1-31.12.2014”. In case of discrepancies, the Swedish version shall prevail.

         Jussi Laitinen, CEO, tel. +358 10 247 6250
         Fredrik Westerholm, CFO, tel. +358 10 247 6505
         Anna Gabrán, IR, tel. +358 10 247 6501, ir@aktia.fi

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