Aktia Bank plc: Interim report 1.1-30.9.2014

 

Aktia Bank plc
Interim Report 1.1-30.9.2014
4 November 2014 at 8:00 a.m.

 

INCREASING NET COMMISSION INCOME AND LOWER COST GENERATE A STABLE RESULT

CEO JUSSI LAITINEN

Net commission income increased and expenses decreased in accordance with our goals. Net interest income from borrowing and lending improved, whereas the share generated by hedging decreased as expected. Low interest rates are still a challenge for day-to-day earnings. One of the most important objectives in Aktia’s strategic Action Plan 2015 is the renewal of core banking system. The project is now midway, and we aim to have the new system up and running at the end of 2015. This requires major investments next year, for example in staff training. The new core banking system will improve customer service, enhance processes, enable swifter product development and generate general cost savings in the bank. This autumn we have started an extensive revision of our strategy in order to define Aktia’s ambitions for growth in different customer segments upon the completion of the Action Plan 2015. The new strategy will be launched in the spring of 2015.”

JULY-SEPTEMBER 2014: OPERATING PROFIT EUR 17.3 (19.6) MILLION

  • The Group’s operating profit amounted to EUR 17.3 (19.6) million and profit for the period amounted to EUR 13.6 (14.7) million.
  • Net commission income increased by 1% to EUR 17.6 (17.4) million. Net interest income (NII) amounted to EUR 26.1 (26.9) million.
  • Earnings per share (EPS) stood at EUR 0.19 (0.22)


JANUARY - SEPTEMBER 2014: OPERATING PROFIT EUR 55.8 (54.3) MILLION

  • The Group’s operating profit amounted to EUR 55.8 (54.3) million and profit for the period amounted to EUR 44.7 (40.5) million.
  • Net commission income increased by 6% to EUR 56.0 (52.9) million and borrowing increased to EUR 3,991 (3,797) million. Net interest income (NII) decreased to EUR 77.5 (85.4) million.
  • Earnings per share (EPS) improved to EUR 0.65 (0.61).
  • According to the Basel III capital requirement the capital adequacy ratio stood at 18.4% and the Core Tier 1 capital ratio at 14.2%.
  • Equity per share stood at EUR 9.27 (31 December 2013: 8.67).
  • Write-downs on credits and other commitments remained unchanged on the previous year amounting to EUR 1.7 (1.7) million.
  • OUTLOOK 2014 (unchanged): Despite the persistent low interest rate level, the Group’s operating profit for 2014 is expected to reach approximately the 2013 level.

 

KEY FIGURES
(EUR million)
7-9/ 2014 7-9/ 2013 ∆ %      1-9/ 2014 1-9/ 2013 ∆ %      2013
Net interest income 26.1 26.9 -3% 77.5 85.4 -9% 112.6
Net commission income 17.6 17.4 1% 56.0 52.9 6% 70.7
Total operating income 50.1 53.6 -7% 160.6 166.9 -4% 224.2
Total operating expenses -32.8 -34.6 -5% -105.2 -111.3 -6% -157.2
Write-downs on credits and other commitments -0.5 -0.2 242% -1.7 -1.7 1% -2.7
Operating profit 17.3 19.6 -12% 55.8 54.3 3% 65.4
Cost-to-income ratio 0.68 0.66 3% 0.68 0.68 0% 0.72
Earnings per share (EPS), EUR 0.19 0.22 -13% 0.65 0.61 8% 0.78
Equity per share (NAV)1, EUR 9.27 8.52 9% 9.27 8.52 9% 8.67
Return on equity (ROE), % 8.1 9.4 -14% 9.0 8.4 7% 8.1
Core Tier 1 capital ratio1, % * 14.2 - - 14.2 - - 12.1
Capital adequacy ratio1, % ** 18.4 19.1 -4% 18.4 19.1 -4% 19.3
Tier 1 capital ratio1, % ** 14.2 12.2 16% 14.2 12.2 16% 12.3
Write-downs on credits / total credit stock, % 0.01 0.00 - 0.03 0.02 50% 0.04
1) At the end of the period
* According to Basel III, **2014 according to Basel III, other periods 2013 according to Basel II
 
The Interim report January-September 2014 is a translation of the original Swedish version ”Delårsrapport 1.1-30.9.2014”. 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@aktia.fi
         Media Malin Pettersson, tel. +358 10 247 6369

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