Aktia Bank plc: Interim report 1 January - 30 September 2015

 

AKTIA BANK PLC
Interim Report 1-9/2015
17 November 2015 at 8:00 a.m.

COMMISSION INCOME CONTINUES TO INCREASE AND COMPENSATE A LOWER NII

CEO JUSSI LAITINEN

"We achieved a stable result and managed to keep expenses under control. The growth of commission income is increasingly important, compensating the negative impact of the continuing low interest rates on net interest income. The launch of our new core banking system will be postponed to the second half of 2016 in order to ensure smoothest possible transition. The delay implies higher costs, and the total investment, including migration costs, is now estimated to exceed EUR 55 million. 

In accordance with Action Plan 2015, Aktia has entered an agreement to acquire all minority shares in Aktia Real Estate Mortgage Bank after the publication of financial statements for 2016. Subsequently, the plan is to merge Aktia Real Estate Mortgage Bank with Aktia Bank. The transaction has already had a negative impact on Aktia's Common Tier 1 capital ratio. But despite this, it is among the highest in the Nordic countries. Our strong capital adequacy enables growth in the years to come.

Aktia continues to develop its customer services as the demand for telephone and digital services increases. Our meritorious telephone service was recently awarded second price in a national competition for Contact Centers. In a new survey of the banking sector, Aktia Bank excelled as the best bank to give proactive offers of new solutions to its customers."

  

JULY-SEPTEMBER 2015: OPERATING PROFIT EUR 16.4 (17.3) MILLION

  • The Group’s operating profit was EUR 16.4 (17.3) million and profit for the period was EUR 13.4 (13.6) million.
  • Net commission income strengthened by 12% to EUR 19.7 (17.6) million. Net interest income (NII) was EUR 23.8 (26.1) million.
  • Earnings per share (EPS) was EUR 0.20 (0.19).
     

JANUARY-SEPTEMBER 2015: OPERATING PROFIT EUR 53.1 (55.8) MILLION

  • The Group’s operating profit was EUR 53.1 (55.8) million and profit for the period was EUR 42.9 (44.7) million.
  • Net commission income strengthened by 9% to EUR 61.0 (56.0) million and borrowing totalled EUR 3,920 (3,979) million. Net interest income (NII) dropped by 5% to EUR 73.6 (77.5) million.
  • Earnings per share (EPS) was EUR 0.65 (0.65).
  • The transition to IRB approach increased Aktia’s Common Equity Tier 1 capital ratio and stood at 20.5 (14.6)%.
  • Equity per share stood at EUR 9.20 (31.12.2014; 9.39).
  • Write-downs on credits and other commitments continued low and stood at EUR -0.1 (-1.7) million.
  • OUTLOOK 2015 (changed, p. 15): Aktia’s operating profit for 2015 is expected to be EUR 62-65 million (previously reach a similar level as in 2014).

 

KEY FIGURES
(EUR million)
3Q2015 3Q2014 ∆ %      1-9/2015 1-9/2014 ∆ %      2Q2015 ∆ %      1Q2015 2014
Net interest income 23.8 26.1 -9% 73.6 77.5 -5% 24.3 -2% 25.5 102.8
Net commission income 19.7 17.6 12% 61.0 56.0 9% 21.7 -9% 19.7 74.9
Total operating income 49.3 50.1 -2% 156.5 160.6 -3% 54.0 -9% 53.1 212.3
Total operating expenses -32.4 -32.8 -1% -103.9 -105.2 -1% -35.8 -9% -35.7 -144.5
Write-downs on credits and other commitments -0.5 -0.5 -6% -0.1 -1.7 -96% 1.5 - -1.0 -1.7
Operating profit 16.4 17.3 -5% 53.1 55.8 -5% 19.7 -17% 17.0 68.3
Cost-to-income ratio (Bank Group) 0.66 0.69 -4% 0.66 0.68 -3% 0.68 -3% 0.65 0.71
Earnings per share (EPS), EUR 0.20 0.19 4% 0.65 0.65 0% 0.25 -21% 0.20 0.79
Equity per share (NAV)1, EUR 9.20 9.27 -1% 9.20 9.27 -1% 9.05 2% 9.59 9.39
Return on equity (ROE), % 8.0 8.1 -2% 8.4 9.0 -7% 9.6 -17% 7.5 8.3
Common Equity Tier 1 capital ratio1, % 20.5 14.2 44% 20.5 14.2 44% 22.4 -9% 22.6 14.6
Capital adequacy ratio1, % 25.8 18.4 40% 25.8 18.4 40% 27.7 -7% 27.1 19.1
Write-downs on credits / total loan book, % 0.01 0.01 0% 0.00 0.03 -100% -0.02 - 0.02 0.03
1) At the end of the period.
 
     
The  Interim Report January - September 2015 is a translation of the original Swedish version ”Delårsrapport 1.1-30.9.2015”. In case of discrepancies, the Swedish version shall prevail.                          

 

Helsinki 17 November 2015

AKTIA BANK PLC

The Board of Directors

 

Financial Calendar 2015-2016:

Annual accounts announcement 1-12/2015: 12 February 2016
Annual General Meeting: 12 April 2016
Interim report 1-3/2016: 10.5.2016
Interim report 1-6/2016: 10.8.2016
Interim report 1-9/2016: 17.11.2016

         CEO Jussi Laitinen, tel. +358 10 247 6250
         CFO Fredrik Westerholm, tel. +358 10 247 6505
         IR: Anna Virkola-Gabrán, tel. +358 10 247 6501, ir@aktia.fi
         Media: Malin Pettersson, tel. +358 10 247 6369