Aktia Bank plc: Half year financial report 1.1-30.6.2016
Aktia Bank plc
Half year financial report
10 August 2016 at 8.00 a.m.
STABLE RESULT, MOODY’S RATED AKTIA WITH IMPROVED OUTLOOK
”Aktia achieved a good result in despite of continued unrest on the market. Political uncertainty and negative interest rate environment have lowered both profitability of the banking sector and yields from the institutional investment market. Several uncertainties challenge the recovery of the euro zone, but the Finnish economy shows cautious signs of a positive change. Aktia’s net interest income was stable, and it was affected favorably especially by increased new lending to both private customers and housing companies in accordance with our Growth strategy. Net commission income recovered during April–June. Expenses increased mainly due to prolonged testing of the new core banking platform, the launch of which is planned for later this year. The sale of Visa Europe brought one-time gains of EUR 5.9 million, improving the result of the second quarter compared to the year before. Write-downs on credits continued at a very low level. Aktia is a stable and predictable bank with strong capital adequacy. This has been taken into account by the rating agency Moody’s who raised Aktia’s outlook from stable to positive, and kept our rating at a good level.”
APRIL-JUNE 2016: OPERATING PROFIT EUR 22.4 (19.7) MILLION
• The Group’s operating profit was EUR 22.4 (19.7) million and the profit was EUR 18.0 (16.5) million.
• Excluding one-time gains from the sale of Visa Europe, the Group’s operating profit would have been EUR 16.6 (19.7) million and the profit for the period EUR 13.3 (16.5)million.
• Net interest income (NII) decreased by 1% and amounted to EUR 24.1 (24.3) million. Net commission income decreased by 5% to EUR 20.7 (21.7) million.
• Earnings per share (EPS) was EUR 0.27 (0.25).
JANUARY-JUNE 2016: OPERATING PROFIT EUR 37.0 (36.7) MILLION
• The Group’s operating profit was EUR 37.0 (36.7) million and the profit was EUR 29.9 (29.5) million.
• Excluding one-time gains from the sale of Visa Europe, the Group’s operating profit would have been EUR 31.1 (36.7) million and the profit for the period EUR 25.2 (29.5) million.
• Net interest income (NII) dropped by 2% to EUR 48.7 (49.8) million. Net commission income decreased by 4% to EUR 39.6 (41.3) million.
• Earnings per share (EPS) was EUR 0.45 (0.45).
• Aktia’s Common Equity Tier 1 capital ratio amounted to 19.7 (20.7)%.
• Equity per share stood at EUR 9.15 (31 Dec 2015; 9.26).
• Write-downs on credits and other commitments remained low and stood at EUR -0.2 (+0.4) million.
• OUTLOOK 2016 (unchanged, p. 14): Aktias operating profit for 2016 is expected to reach an approximately similar level as in 2015.
| KEY FIGURES (EUR million) | Apr-June / 2016 | Apr-June / 2015 | ∆ % | Jan-Jun / 2016 | Jan-Jun / 2015 | ∆ % | Jan-Mar / 2016 | 2Q/1Q ∆ % | 2015 |
| Net interest income | 24.1 | 24.3 | -1% | 48.7 | 49.8 | -2% | 24.6 | -2% | 97.3 |
| Net commission income | 20.7 | 21.7 | -5% | 39.6 | 41.3 | -4% | 18.9 | 9% | 80.0 |
| Total operating income | 59.4 | 54.0 | 10% | 109.8 | 107.1 | 2% | 50.4 | 18% | 208.4 |
| Total operating expenses | -36.8 | -35.8 | 3% | -73.3 | -71.5 | 3% | -36.5 | 1% | -144.4 |
| Write-downs on credits and other commitments | -0.1 | 1.5 | - | -0.2 | 0.4 | - | -0.1 | -72% | -0.3 |
| Operating profit | 22.4 | 19.7 | 14% | 37.0 | 36.7 | 1% | 14.6 | 54% | 64.2 |
| Cost-to-income ratio | 0.62 | 0.66 | -6% | 0.67 | 0.67 | 0% | 0.72 | -14% | 0.69 |
| Earnings per share (EPS), EUR | 0.27 | 0.25 | 7% | 0.45 | 0.45 | 0% | 0.18 | 50% | 0.78 |
| Equity per share (NAV)1, EUR | 9.15 | 9.05 | 1% | 9.15 | 9.05 | 1% | 9.56 | -4% | 9.26 |
| Return on equity (ROE), % | 11.6 | 9.6 | 21% | 9.8 | 8.7 | 13% | 7.6 | 52% | 7.9 |
| Common Equity Tier 1 capital ratio1, % | 19.7 | 22.4 | -12% | 19.7 | 22.4 | -12% | 19.5 | 1% | 20.7 |
| Capital adequacy ratio1, % | 26.2 | 27.7 | -6% | 26.2 | 27.7 | -6% | 25.6 | 2% | 27.1 |
| Write-downs on credits / total loan book, % | 0.00 | -0.02 | -100% | 0.00 | -0.01 | -100% | 0.00 | - | 0.01 |
1At the end of the period.
The Interim Report January - June 2016 is a translation of the original Swedish version ”Delårsrapport 1.1-30.6.2016”. In case of discrepancies, the Swedish version shall prevail.
CEO Jussi Laitinen, tel. +358 10 247 6250
CFO Fredrik Westerholm, tel. +358 10 247 6505
IR Anna Gabrán, tel. +358 10 247 6501, ir(at) aktia.fi