AKTIA BANK PLC (SUBSIDIARY TO THE LISTED AKTIA PLC) INTERIM REPORT 1.1 - 30.6.2010
Interim report January - June 2010
AKTIA BANK PLC (SUBSIDIARY TO THE LISTED AKTIA PLC)
PROFIT FOR THE FIRST HALF YEAR 2010
Aktia Bank plc is a subsidiary to the listed Aktia plc and operates as parent
company in the Bank Group. Subsidiaries in the Bank Group are: Aktia Real Estate
Mortgage Bank plc, Aktia Asset Management Oy Ab, Aktia Fund Management Company
Ltd, Aktia Corporate Finance Ltd, Aktia Invest Ltd, Aktia Kortti & Rahoitus Oy
(Card & Finance) and Aktia's real estate agencies.
The Bank Group's operating profit for continuing operations during January-June
2010 was EUR 38.4 (19.8) million. Profit for the period after write-downs and
tax was EUR 28.5 (13.0) million. Earnings per share was EUR 9.1 (4.6) million.
The Banking Business segment more than doubled its operating profit during
January-June 2010 to EUR 37.9 (18.6) million. The Asset Management segment
improved profitability and reached an operating profit of EUR 2.0 (0.1) million.
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| Key figures | | | | | | | | |
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| (EUR million) | 4-6/ | 4-6/ | ∆ | 1-6/ | 1-6/2 | ∆ | 1-3/2 | 1-12/2 |
| | 2010 | 2009 | | 2010 | 009 | | 010 | 009 |
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| Earnings per | 5.2 | 2.9 | 76.4 | 9.1 | 5.2 | 72.8 | 3.9 | 13.3 |
| share (EPS), | | | % | | | % | | |
| continuing | | | | | | | | |
| operations | | | | | | | | |
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| Earnings per | - | - | - | - | -0.6 | - | - | -0.6 |
| share (EPS), | | | | | | | | |
| discontinued | | | | | | | | |
| operations | | | | | | | | |
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| Earnings per | 5.2 | 2.9 | 76.4 | 9.1 | 4.6 | 95.0 | 3.9 | 12.7 |
| share (EPS), | | | % | | | % | | |
| total | | | | | | | | |
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| Equity per | 112. | 99.2 | 13.2 | 112. | 99.2 | 13.2 | 122.4 | 117.0 |
| share (NAV)1 | 3 | | % | 3 | | % | | |
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| Return on | 16.7 | 10.5 | 59.1 | 14.9 | 8.3 | 80.3 | 12.5 | 11.0 |
| equity (ROE), % | | | % | | | % | | |
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| Total earnings | -0.1 | 7.7 | - | 9.6 | 7.4 | 28.4 | 9.7 | 25.3 |
| per share | | | | | | % | | |
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| Number of | 3 | 3 | 0.0 | 3 | 3 | 0.0 % | 3 | 3 |
| shares1 | | | % | | | | | |
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| Cost-to-income | 0.54 | 0.52 | 3.8 | 0.55 | 0.60 | -8.3 | 0.57 | 0.57 |
| ratio, | | | % | | | % | | |
| continuing | | | | | | | | |
| operations | | | | | | | | |
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| Capital | 16.5 | 14.5 | 13.8 | 16.5 | 14.5 | 13.8 | 16.2 | 15.9 |
| adequacy | | | % | | | % | | |
| ratio1, % | | | | | | | | |
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| Tier 1 capital | 10.1 | 9.1 | 11.0 | 10.1 | 9.1 | 11.0 | 9.6 | 9.5 |
| ratio 1, % | | | % | | | % | | |
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| 1) At the end | | | | | | | | |
| of the period | | | | | | | | |
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”Interim report January - June 2010” is a translation of the original report in
Swedish (”Aktia Bank Delårsrapport 1.1-30.6.2010”). In case of discrepancies,
the Swedish version shall prevail.
PROFIT FOR APRIL- JUNE 2010
Aktia Bank plc reported an operating profit from continuing operations of EUR
21.8 (10.5) million and profit after tax was 16.2 (8.2) million. Earnings per
share was EUR 5.2 (2.9) million.
The segments' operating profit
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| (EUR million) | 4-6/2010 | 4-6/2009 | ∆ |
--------------------------------------------------------------------------------
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| Banking Business | 20.5 | 8.7 | 134.9 % |
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| Asset Management | 1.1 | 0.4 | 148.2 % |
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| Miscellaneous | -0.8 | 0.9 | - |
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| Eliminations | 1.0 | 0.4 | 134.1 % |
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| Total | 21.8 | 10.5 | 107.6 % |
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Income April-June 2010
The Bank Group's total income during the second quarter amounted to EUR 53.2
(53.7) million. Of this EUR 38.2 (39.4) million was net interest income. Net
commission income for the quarter totalled EUR 13.9 million being EUR 1.7
million higher than during the previous quarter. The improvement derives
partially from fund- and insurance commissions and partially from card and
payment services commission. Net commission income from cards includes a one-off
income worth EUR 700,000 due to changed agreement terms with Luottokunta.
Net profit from financial transactions totalled EUR -2.8 (3.7) million.
Other income was EUR 3.6 (0.9) million. This includes a sales gain of divestment
of Aktia Bank plc's minority holding in Esperi Care Oy. The banking group's
associated company Unicus Oy completed the transaction and divested also its
holding in Esperi Care. The transaction added in total EUR 1.7 million to the
period's operating profit.
Expenses April - June 2010
The Bank Group's total costs amounted to EUR 28.8 (27.7) million. Staff costs
were EUR 12.9 (11.6) million. In comparison to the same time last year, the
personnel costs include larger result and bonusrelated reservations.
Other administration costs were at the same level as last year at EUR 10.9
(10.8) million. Total depreciation and write-downs on tangible and intangible
assets were unchanged at EUR 1.2 (1.2) million. Other operating costs totalled
EUR 3.9 (4.1) million, of which the costs of renting premises accounted for the
largest share of EUR 2.1 (2.2) million.
PROFIT FOR JANUARY-JUNE 2010
Aktia Bank plc reported an operating profit improved by 93.8% to EUR 38.4 (19.8)
million. The strengthening derives from a sustained high net interest income,
remarkably increased net commission income but also from stronger profitability
in asset management.
The net interest income improved by 7.4% to EUR 77.0 (71.7) million. Net
commission income was up 47.2% to EUR 26.0 (17.7) million and income from asset
management and brokerage totalled EUR 9.2 (5.6) million.
The segment Asset Management contributed EUR 2.0 (0.1) million to the Bank
Group's operating profit whereas the segment Banking Business contributed EUR
37.9 (18.6) million.
The segments' operating profit
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| (EUR million) | 1-6/2010 | 1-6/2009 | ∆ |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Banking Business | 37.9 | 18.6 | 104.1 % |
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| Asset Management | 2.0 | 0.1 | - |
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| Miscellaneous | -1.0 | 2.3 | - |
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| Eliminations | -0.5 | -1.1 | 55.3 % |
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| Total | 38.4 | 19.8 | 93.8 % |
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Income
The Bank Group's total income increased by 10.6% to EUR 102.0 (92.2) million, of
which EUR 77.0 (71.7) million was net interest income. Despite the low interest
rate level, the net interest income was retained at a high level.
Aktia Bank utilises both derivatives and fixed interest rate instruments to
limit its interest rate risks. The derivatives used improved net interest income
by EUR 28.7 (9.1) million.
Net commission totalled EUR 26.0 (17.7) million. Commission income from mutual
funds, asset management and brokering increased to EUR 18.5 (11.9) million. Card
and payment services commission rose 19.7% to EUR 6.9 (5.7) million.
Other operating income rose from last year by EUR 2.9 million to EUR 4.5
million.
Expenses
The Bank Group's total costs rose 2.1% to EUR 56.6 (55.4) million.
Staff costs were EUR 25.3 (23.4) million. Other administration costs totalled
EUR 21.2 (21.5) million, of which IT accounted for EUR 8.2 (7.8) million.
Total depreciation and write-downs on tangible and intangible assets amounted to
EUR 2.4 (2.3) million.
Other operating costs totalled EUR 7.7 (8.1) million, of which the costs of
renting premises accounted for the main part or EUR 4.2 (4.2) million.
RATING
Aktia Bank plc's credit rating from the international credit rating agency
Moody's Investors Service was updated on 6 January 2010 as the best
classification, P-1, for short-term borrowing. The credit quality for long-term
borrowing and financial strength were the same, A1 and C respectively, all with
a stable outlook.
See http://www.aktia.fi/aktia_bank/rating
The covered bonds issued by the subsidiary Aktia Real Estate Mortgage Bank plc
have a Moody's credit rating of Aa1.
CAPITAL ADEQUACY
The Bank Group's capital adequacy amounted to 16.5% compared to 15.9% at the end
of 2009. The Tier 1 capital ratio was 10.1 (9.5)%. The operating result and the
liquidity portfolio's lower use of capital strengthened the capital adequacy.
Aktia Bank plc's capital adequacy stood at 20.9% compared to 19.9% at the end of
2009. The Tier 1 ratio was 12.6 (11.7)%.
BALANCE SHEET AND OFF-BALANCE SHEET COMMITMENTS
The Bank Group's balance sheet total increased from the end of the year by 2.9%
and amounted to EUR 9,814 (31.12.2009; 9,539) at the end of June 2010.
Borrowing from the public and public sector entities increased 10.8% to EUR
3,365 (3,036) million.
Outstanding bonds issued and certificates of deposit increased by 8.3% to EUR
2,982 (2,754) million at the end of June 2010.
The Bank Group's total lending to the public increased during January-June by
4.7 % to EUR 6,410 (6,124) million. This increase in the balance sheet total is
largely due to the growth in mortgage stock. Excluding the mortgages brokered by
savings and local cooperative banks, which the local banks are committed to
capitalise, the Bank Group's lending totalled EUR 4,984 (4,834) million.
Loans to private households accounted for EUR 5,191 (4,924) million, or 81.0
(80.4) % of total credit stock.
Interest-bearing financial assets available for sale amounted to EUR 2,630
(2,657) million. These assets mainly consist of the banking business' liquidity
reserve.
An extraordinary dividend of EUR 30.0 million to Aktia plc declined the Bank
Group's equity to EUR 379 (384) million from year-end. The funds were reinvested
through a capital loan and the transaction was thus neutral to the bank's
capital adequacy. The fund at fair value amounted to EUR 36 (35) million.
Off-balance sheet commitments totalled EUR 611 (568) million.
Valuation of financial assets
Value changes reported via income statement
For shares and participations, a value impairment is reported in the income
statement where the value change has been announced as significant or long-term
and, in the case of interest-bearing securities, where the issuer has announced
an inability to pay. For interest-bearing securities, previous write-downs are
reversed in the income statement and for shares and participations in the fund
at fair value.
No write-downs were made during January-June 2010, whereas these totalled EUR
-0.4 million during the same period in 2009.
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| EUR million | 1-6/2010 | 1-6/2010 |
--------------------------------------------------------------------------------
| Interest-bearing securities | - | -0.4 |
--------------------------------------------------------------------------------
| Shares and participations | - | - |
--------------------------------------------------------------------------------
| Total | 0.0 | -0.4 |
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Value changes reported via the fund at fair value
A value impairment that is not reported in the income statement or an increase
in the value of financial assets that has not been realised is reported via the
fund at fair value. Taking cash flow hedging for the Group into consideration,
the fund at fair value amounted to EUR 36.2 million after deferred tax compared
to EUR 34.7 million as at 31 December 2009. The cash flow hedging which
comprises the market value for interest rate derivative contracts which have
been acquired for the purposes of hedging the banking business' net interest
income amounted to EUR 33.5 (21.4) million.
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| EUR million | 30.6.2010 | 31.12.2009 | Change |
--------------------------------------------------------------------------------
| Shares and participations | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Direct interestbearing | 2.7 | 13.3 | -10.6 |
| securities | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | 33.5 | 21.4 | 12.1 |
--------------------------------------------------------------------------------
| Fund at fair value, total | 36.2 | 34.7 | 1.5 |
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Write-downs of loan and guarantee claims
Write-downs based on individual examination of loan and guarantee claims during
January-June 2010 totalled EUR -8.6 (30.6.2009;-17.8) million. Recoveries and
reversals of write-downs from previous years came to EUR 0.5 (0.3) million so
that the cost effect on the profit for the period was EUR -8.0 (-17.5) million.
Most of the write-downs during the period are related to commitments whose
credit rating had already decreased in 2009 and where restructuring efforts now
are confirmed as without result.
Of write-downs, EUR -8.1 million was accounted for by corporate loans, which
corresponds to 1.0 (2.0) % of the total corporate lending. Write-downs of
household loans amounted to EUR -0.5 (-0.9) million, EUR -0.2 (-0.5) million of
which was accounted for by unsecured consumer loans. The year's write-downs of
household loans were marginal of total lending to households. Total write-downs
for the period amounted to 0.1 (0.3) % of total lending.
The Bank Group's risk management
Risk exposure
The banking business includes Retail Banking (including financing company
operations), Corporate Banking, Treasury and Asset Management.
Lending-related risks within banking
Loan stock increased during January-June 2010 by EUR 287 million, totalling EUR
6,410 (6,124) million at the end of June. As planned, this increase mainly
occurred within household financing, and households' share of the total credit
stock amounted to EUR 5,191 million or 81.0% at the end of June, or 85.8% when
combined with housing associations. Of the loans to households, 86.3 (86.2) %
are secured against adequate real estate collateral in accordance with Basel 2.
The housing loan stock totalled EUR 4,858 (4,598) million. In all, housing loans
increased by 5.6% over the period under review.
New lending to companies remained moderate and corporate loans totalled EUR 845
(845) million. The proportion of the total credit stock accounted for by
corporate loans fell as planned to 13.2 (13.8) %.
Lending to the general public secured by collateral objects or unsecured within
the framework of the financing companies Aktia Corporate Finance and Aktia Card
& Finance totalled EUR 97.6 (84.8) million, representing 1.5% of total lending.
Credit stock by sector
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| EUR million | 30.6.2010 | 31.12.2009 | Change | Share, % |
--------------------------------------------------------------------------------
| Corporate | 845 | 845 | 0 | 13.2 |
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| Housing | 311 | 289 | 22 | 4.9 |
| associations | | | | |
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| Public sector | 7 | 10 | -3 | 0.1 |
| entities | | | | |
--------------------------------------------------------------------------------
| Non-profit | 56 | 55 | 0 | 0.9 |
| organisations | | | | |
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| Households | 5,191 | 4,924 | 267 | 81.0 |
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| Total | 6,410 | 6,124 | 287 | 100.0 |
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Loans with payments 1-30 days overdue increased during the period to 3.02
(2.94)% of credit stock, including off-balance sheet guarantee commitments.
Loans with payments 31-89 days overdue increased to 0.88 (0.75) %, totalling
approximately EUR 57 million. Non-performing loans more than 90 days overdue,
including claims on bankrupt companies and loans for collection, totalled
approximately EUR 42 million, corresponding to 0.65 (0.55)% of the entire credit
stock plus bank guarantees.
Undischarged debts by time overdue (EUR million)
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| Days | 30.6.2010 | % of the | 31.12.2009 | % of the |
| | | credit stock | | credit stock |
--------------------------------------------------------------------------------
| 1-30 | 195 | 3.02 | 181 | 2.94 |
--------------------------------------------------------------------------------
| of which | 131 | 2.02 | 114 | 1.84 |
| households | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 31-89 | 57 | 0.88 | 46 | 0.75 |
--------------------------------------------------------------------------------
| of which | 40 | 0.62 | 38 | 0.61 |
| households | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 90- | 42 | 0.65 | 34 | 0.55 |
--------------------------------------------------------------------------------
| of which | 22 | 0.33 | 18 | 0.29 |
| households | | | | |
--------------------------------------------------------------------------------
The Bank Group's financing and liquidity risks
Financing and liquidity risks are handled at a corporate legal level and there
are no financial commitments between the Bank Group (Aktia Bank plc and its
subsidiaries) and the insurance companies.
In the banking business, financial and liquidity risks are defined as the
availability of refinancing plus the differences in maturity between assets and
liabilities. The objective is to be able to cover one year's financing
requirements using existing liquidity. Following the Aktia Real Estate Mortgage
Bank's issue in March 2010, the liquidity buffer is at a good and target levels
were clearly exceeded.
Counterparty risks
Counterparty risks within Group Treasury's liquidity management operations
The banking business' liquidity portfolio which comprises interest-bearing
securities stood at EUR 2,691 (2,615) million at 30 June 2010.
Individual investment decisions are made in accordance with an investment plan
in place and are based on careful assessment of the counterparty. Counterparty
risks are limited by the requirement for high-level external ratings (a minimum
rating of A3 rating from Moody's Investors Service or equivalent). In addition,
maximum exposure limits have been established for each counterparty and asset
category.
Of the financial assets available for sale, 61 (51) % were investments in
covered bonds, 23 (36) % were investments in banks, 11 (9) % were investments in
state-guaranteed bonds and approximately 5 (4) % were investments in public
sector entities and companies.
Counterparty risks in derivatives trading are managed through demands on
collateral (CSA = Credit Support Annex) limiting the open positions.
Rating distribution for banking business
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| | 30.6.2010 | 31.12.2009 |
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| EUR million | 2,691 | 2,615 |
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| Aaa | 58.4% | 55.1% |
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| Aa1-Aa3 | 30.2% | 29.6% |
--------------------------------------------------------------------------------
| A1-A3 | 7.3% | 11.6% |
--------------------------------------------------------------------------------
| Baa1-Baa3 | 0.6% | 0.6% |
--------------------------------------------------------------------------------
| Ba1-Ba3 | 0.5% | 0.2% |
--------------------------------------------------------------------------------
| B1-B3 | 0.0% | 0.0% |
--------------------------------------------------------------------------------
| Caa1 or lower | 0.0% | 0.0% |
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| No rating | 3.0%* | 2.9%* |
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| Total | 100.0% | 100.0% |
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*) Of which 1,8% Finnish municipalities at 30 June 2010 and 1,9 % at 31 December
2009
Of these financial assets, 1.1 (0.8) % did not meet the internal rating
requirements. As a result of a reduced credit rating, five security assets with
a total market value of EUR 20 million were no longer eligible for refinancing
with the central bank. Other securities that are not eligible for refinancing
due to the absence of a rating totalled EUR 80 million.
During the period, no write-downs were realised as a result of the issuer
announcing its inability to pay, whereas the write-downs during the same period
last year amounted to EUR -0.4 million.
Market valuation of financial assets
The financial assets within the banking business are invested in securities with
access to market prices in an active market, and are valued in accordance with
official quoted prices. Any significant or long-term impairment of market value
compared to the acquisition price is shown in the income statement, while
interest-rate fluctuations are reported under the fund at fair value after the
deduction of deferred tax.
Market value and structural interest rate risk within the banking business
Structural interest rate risk arises as a result of an imbalance between
interest rate ties and the re-pricing of assets and liabilities, and affects net
interest income. Hedging derivative instruments and investments within the
liquidity portfolio are exploited to reduce the volatility in net interest
income.
According to the strategy for interest rate risk management, a parallel upward
or downward shift in the interest rate curve of one percentage point shall not
influence the estimated net interest income of the banking business for the next
12 months by more than 7%, and 8% for the following year. At the end of the
second quarter of 2010, the set targets were met. The growth in the deposit
stock diminishes net interest income's sensitivity to an upward shift in the
interest rate curve.
Market value interest rate risk refers to changes in value of financial assets
available for sale as a result of interest rate fluctuations or changes in
credit, interest rate or spread risks. The size, maturity and risk level of the
liquidity portfolio is restricted as a result of capital allocation limits and
limits for entering into repurchase agreements.
The net change in the fund at fair value relating to market value interest rate
risk posted during the period and credit and spread risk was negative and
totalled EUR -10.6 million after the deduction of deferred tax. At the end of
June 2010, the valuation difference in interest-bearing securities was at EUR
2.7 (13.3) million.
Operational risks
Operational risks refer to loss risks arising as a result of unclear or
incomplete instructions, activities carried out contrary to instructions,
unreliable information, deficient systems or actions taken by staff members. If
an operational risk is realised, this can result in direct or indirect financial
losses or tarnish the corporate image to the extent that the bank's credibility
in the market-place suffers.
No events regarded as operational risk causing significant financial losses
occurred in January-June 2010.
Personnel
When converted into full-time employees, the number of staff employed by the
Bank Group declined by 24 to 732 (31 December 2009; 756) persons during
January-June 2010. The average number of full-time employees during the period
under review was 746 (30 June 2009; 794).
Other events during the reporting period
Aktia Bank plc issued a positive profit warning 22 June 2010 and upgraded its
outlook for 2010.
The Bank Group's operating profit for the full year 2010 is expected to exceed
the result for 2009. In prognoses published earlier, the full year operating
profit was expected to be at the same level as in 2009.
Important events after the reporting period
No events to report.
Outlook for the coming year (updated)
Aktia Bank expects operating profit for 2010 to exceed the level in 2009 and
write-downs on credit to remain clearly lower than last year. (Previous: Aktia
Bank expects write-downs on credit to be lower in 2010 than in 2009)
In 2010, Aktia Bank's focus will be on strengthening customer relations,
increasing sales, developing Internet services, and managing costs, risks and
capital in order to strengthen profitability. Aktia Bank is endeavouring to grow
above the market, particularly in the sectors of retail customers and small
companies.
Aktia Bank's financial results are affected by many factors, of which the most
important are the general economic situation, fluctuations in share prices,
interest rates and exchange rates and the competitive situation. Changes in
these factors can have an impact on demand for banking, insurance, asset
management and real estate agency services.
Change in interest rate level, yield curves and credit margins are hard to
predict and can affect Aktia Bank's interest rate margins and therefore
profitability. Aktia pursuing effective management of interest rate risks.
Any future write-downs of loans in Aktia Bank's loan portfolio could be due to
many factors, the most important of which are the general economic situation,
interest rate level, the level of unemployment and changes in house prices.
Aktia Bank expects write-downs on credit to be clearly lower in 2010 than in
2009. (Previously: Aktia Bank expects write-downs on credit to be lower in 2010
than in 2009).
The availability of liquidity on the money markets is important for Aktia Bank's
refinancing activities. Like other banks, Aktia Bank relies on deposits from
households in order to service some of its liquidity needs.
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| Consolidated income statement for Bank Group | |
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--------------------------------------------------------------------------------
| (EUR million) | 1-6/2010 | 1-6/2009 | ∆ | 1-12/2009 |
--------------------------------------------------------------------------------
| Net interest income | 77.0 | 71.7 | 7.4 % | 152.4 |
--------------------------------------------------------------------------------
| Dividends | 0.3 | 0.1 | 191.5 % | 0.1 |
--------------------------------------------------------------------------------
| Commission income | 34.6 | 25.2 | 37.2 % | 56.1 |
--------------------------------------------------------------------------------
| Commission expenses | -8.6 | -7.5 | -13.8 % | -15.4 |
--------------------------------------------------------------------------------
| Net commission income | 26.0 | 17.7 | 47.2 % | 40.7 |
--------------------------------------------------------------------------------
| Net income from financial | -5.9 | 1.1 | - | 0.6 |
| transactions | | | | |
--------------------------------------------------------------------------------
| Net income from investment | -0.1 | 0.0 | - | 0.1 |
| properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | 4.5 | 1.6 | 189.0 % | 2.8 |
--------------------------------------------------------------------------------
| Total operating income | 102.0 | 92.2 | 10.6 % | 196.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Staff costs | -25.3 | -23.4 | 8.1 % | -46.6 |
--------------------------------------------------------------------------------
| Other administrative expenses | -21.2 | -21.5 | -1.6 % | -41.8 |
--------------------------------------------------------------------------------
| Depreciation of tangible and | -2.4 | -2.3 | 0.8 % | -4.8 |
| intangible assets | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -7.7 | -8.1 | -4.9 % | -18.6 |
--------------------------------------------------------------------------------
| Total operating expenses | -56.6 | -55.4 | 2.1 % | -111.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairment and reversal of | - | 0.0 | - | 0.0 |
| impairment on tangible and | | | | |
| intangible assets | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and | -8.0 | -17.5 | -54.3 % | -31.1 |
| other commitments | | | | |
--------------------------------------------------------------------------------
| Share of profit from | 0.9 | 0.5 | 75.5 % | 0.3 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | 38.4 | 19.8 | 93.8 % | 54.2 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Taxes | -9.8 | -5.0 | 97.2 % | -14.7 |
--------------------------------------------------------------------------------
| Profit for the period from | 28.5 | 14.8 | 92.6 % | 39.4 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | |
--------------------------------------------------------------------------------
| Profit for the period from | - | -1.8 | - | -1.8 |
| discontinued operations | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 28.5 | 13.0 | 119.1 % | 37.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Shareholders in Aktia Bank Plc | 27.2 | 13.9 | 95.0 % | 38.0 |
--------------------------------------------------------------------------------
| Minority interest | 1.3 | -0.9 | - | -0.4 |
--------------------------------------------------------------------------------
| Total | 28.5 | 13.0 | 119.1 % | 37.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | | | | |
--------------------------------------------------------------------------------
| Continuing operations | 9,061,91 | 5,243,51 | 72.8 % | 13,269,00 |
| | 4.03 | 6.35 | | 9.48 |
--------------------------------------------------------------------------------
| Discontinued operations | - | -596,129 | - | -596,129. |
| | | .27 | | 27 |
--------------------------------------------------------------------------------
| Total | 9,061,91 | 4,647,38 | 95.0 % | 12,672,88 |
| | 4.03 | 7.08 | | 0.20 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| There is no dilution effect to | | | | |
| earnings per share. | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of comprehensive income for Bank Group |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | 1-6/2010 | 1-6/2009 | ∆ | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | | |
--------------------------------------------------------------------------------
| Profit for the reporting | 28.5 | 14.8 | 92.6 % | 39.4 |
| period | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income | | | | |
| after taxes: | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair | -11.2 | 10.2 | - | 37.7 |
| value for financial assets | | | | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair | 12.1 | 9.3 | 29.8 % | 9.0 |
| value for cash flow hedging | | | | |
--------------------------------------------------------------------------------
| Transferred to the income | - | - | - | 2.4 |
| statement for fianacial assets | | | | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for | 29.4 | 34.3 | -14.5 % | 88.7 |
| the period for continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | |
--------------------------------------------------------------------------------
| Profit for the period | - | -1.8 | - | -1.8 |
--------------------------------------------------------------------------------
| Other comprehensive income | | | | |
| after taxes: | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair | - | -11.3 | - | -11.3 |
| value for financial assets | | | | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Transferred to the income | - | 0.3 | - | 0.3 |
| statement for financial assets | | | | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for | - | -12.8 | - | -12.8 |
| the period for discontinued | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income for | 29.4 | 21.5 | 36.6 % | 75.8 |
| the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | | | | |
| attributable to: | | | | |
--------------------------------------------------------------------------------
| Shareholders in Aktia Bank plc | 28.7 | 22.3 | 28.4 % | 75.8 |
--------------------------------------------------------------------------------
| Minority interest | 0.7 | -0.8 | - | 0.1 |
--------------------------------------------------------------------------------
| Total | 29.4 | 21.5 | 36.6 % | 75.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total earnings per share | | | | |
| (EPS), EUR | | | | |
--------------------------------------------------------------------------------
| Continuing operations | 9,556,54 | 11,716,0 | -18.4 % | 29,526,41 |
| | 1.80 | 89.83 | | 2.51 |
--------------------------------------------------------------------------------
| Discontinued operations | - | -4,273,5 | - | -4,273,52 |
| | | 21.18 | | 1.18 |
--------------------------------------------------------------------------------
| Total | 9,556,54 | 7,442,56 | 28.4 % | 25,252,89 |
| | 1.80 | 8.65 | | 1.33 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| There is no dilution effect to | | | | |
| total earnings per share. | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet for Bank Group |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | 30.6.2 | 31.12.2 | ∆ | 30.6.20 |
| | 010 | 009 | | 09 |
--------------------------------------------------------------------------------
| Assets | | | | |
--------------------------------------------------------------------------------
| Cash and balances with central banks | 278.4 | 336.5 | -17.3 % | 284.7 |
--------------------------------------------------------------------------------
| Financial assets reported at fair | 3.7 | 3.6 | 4.1 % | 3.9 |
| value via the income statement | | | | |
--------------------------------------------------------------------------------
| Interest-bearing securities | 2,630. | 2,657.5 | -1.0 % | 2,463.5 |
| | 3 | | | |
--------------------------------------------------------------------------------
| Shares and participations | 6.3 | 4.9 | 28.4 % | 22.3 |
--------------------------------------------------------------------------------
| Financial assets available for sale | 2,636. | 2,662.4 | -1.0 % | 2,485.8 |
| | 6 | | | |
--------------------------------------------------------------------------------
| Financial assets held until maturity | 22.2 | 27.9 | -20.5 % | 30.9 |
--------------------------------------------------------------------------------
| Derivative instruments | 288.2 | 209.6 | 37.5 % | 199.2 |
--------------------------------------------------------------------------------
| Lending to credit institutions | 75.1 | 80.7 | -7.0 % | 165.7 |
--------------------------------------------------------------------------------
| Lending to the public and public | 6,410. | 6,123.7 | 4.7 % | 5,826.4 |
| sector entities | 3 | | | |
--------------------------------------------------------------------------------
| Loans and other receivables | 6,485. | 6,204.4 | 4.5 % | 5,992.1 |
| | 4 | | | |
--------------------------------------------------------------------------------
| Investments in associated companies | 3.5 | 2.8 | 24.1 % | 3.0 |
--------------------------------------------------------------------------------
| Intangible assets | 6.0 | 7.0 | -14.7 % | 8.0 |
--------------------------------------------------------------------------------
| Investment properties | 0.0 | 0.0 | 0.0 % | 0.0 |
--------------------------------------------------------------------------------
| Other tangible assets | 4.0 | 4.6 | -13.4 % | 4.5 |
--------------------------------------------------------------------------------
| Accrued income and advance payments | 76.0 | 71.9 | 5.7 % | 60.9 |
--------------------------------------------------------------------------------
| Other assets | 5.7 | 4.9 | 16.0 % | 40.0 |
--------------------------------------------------------------------------------
| Total other assets | 81.7 | 76.8 | 6.3 % | 100.9 |
--------------------------------------------------------------------------------
| Income tax receivables | 0.6 | 0.4 | 50.2 % | 3.4 |
--------------------------------------------------------------------------------
| Deferred tax receivables | 4.0 | 3.5 | 14.0 % | 10.1 |
--------------------------------------------------------------------------------
| Tax receivables | 4.6 | 3.9 | 17.8 % | 13.4 |
--------------------------------------------------------------------------------
| Total assets | 9,814. | 9,539.5 | 2.9 % | 9,126.4 |
| | 3 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | |
--------------------------------------------------------------------------------
| Liabilities to credit institutions | 1,516. | 1,724.4 | -12.0 % | 1,597.9 |
| | 9 | | | |
--------------------------------------------------------------------------------
| Liabilities to the public and public | 3,364. | 3,035.8 | 10.8 % | 3,091.0 |
| sector entities | 7 | | | |
--------------------------------------------------------------------------------
| Deposits | 4,881. | 4,760.2 | 2.6 % | 4,689.0 |
| | 7 | | | |
--------------------------------------------------------------------------------
| Derivative instruments | 174.1 | 131.7 | 32.2 % | 127.7 |
--------------------------------------------------------------------------------
| Debt securities issued | 2,981. | 2,754.5 | 8.3 % | 2,586.6 |
| | 9 | | | |
--------------------------------------------------------------------------------
| Subordinated liabilities | 281.8 | 250.4 | 12.5 % | 241.7 |
--------------------------------------------------------------------------------
| Other liabilities to credit | 818.2 | 968.2 | -15.5 % | 742.4 |
| institutions | | | | |
--------------------------------------------------------------------------------
| Other liabilities to the public and | 109.6 | 91.8 | 19.4 % | 197.5 |
| public sector entities | | | | |
--------------------------------------------------------------------------------
| Other financial liabilities | 4,191. | 4,064.9 | 3.1 % | 3,768.2 |
| | 5 | | | |
--------------------------------------------------------------------------------
| Accrued expenses and income received | 83.1 | 66.5 | 25.0 % | 63.1 |
| in advance | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 62.7 | 81.3 | -23.0 % | 106.6 |
--------------------------------------------------------------------------------
| Total other liabilities | 145.8 | 147.8 | -1.4 % | 169.7 |
--------------------------------------------------------------------------------
| Provisions | 0.2 | 0.2 | 9.8 % | 0.2 |
--------------------------------------------------------------------------------
| Income tax liability | 4.1 | 18.9 | -78.5 % | 3.5 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 37.6 | 32.2 | 17.0 % | 40.4 |
--------------------------------------------------------------------------------
| Tax liabilities | 41.7 | 51.0 | -18.3 % | 43.9 |
--------------------------------------------------------------------------------
| Total liabilities | 9,434. | 9,155.8 | 3.0 % | 8,798.7 |
| | 9 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Restricted equity | 199.2 | 197.7 | 0.8 % | 168.4 |
--------------------------------------------------------------------------------
| Unrestricted equity | 137.6 | 153.3 | -10.3 % | 129.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' share of equity | 336.8 | 351.0 | -4.1 % | 297.6 |
--------------------------------------------------------------------------------
| Minority interest's share of equity | 42.6 | 32.7 | 30.3 % | 30.2 |
--------------------------------------------------------------------------------
| Equity | 379.4 | 383.7 | -1.1 % | 327.7 |
--------------------------------------------------------------------------------
| Total liabilities and equity | 9,814. | 9,539.5 | 2.9 % | 9,126.4 |
| | 3 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated cash flow statement for Bank Group |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | 1-6/20 | 1-6/200 | ∆ | 1-12/20 |
| | 10 | 9 | | 09 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | | |
--------------------------------------------------------------------------------
| Operating profit *) | 38.4 | 19.5 | 96.8 % | 53.9 |
--------------------------------------------------------------------------------
| Adjustment items not included in cash | 12.2 | 13.6 | -10.9 % | 17.3 |
| flow for the period | | | | |
--------------------------------------------------------------------------------
| Paid income taxes | -20.3 | -4.3 | -372.2% | -7.9 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | 30.2 | 28.8 | 4.7 % | 63.3 |
| before change in operating | | | | |
| receivables | | | | |
--------------------------------------------------------------------------------
| and liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (-) or decrease (+) in | -259.4 | -577.9 | 55.1 % | -936.0 |
| receivables from operating activities | | | | |
--------------------------------------------------------------------------------
| Increase (+) or decrease (-) in | 172.1 | 313.6 | -45.1 % | 651.2 |
| liabilities from operating activities | | | | |
--------------------------------------------------------------------------------
| Total cash flow from operating | -57.2 | -235.4 | 75.7 % | -221.5 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | | |
--------------------------------------------------------------------------------
| Financial assets held until maturity | 5.7 | 5.0 | 14.3 % | 8.0 |
--------------------------------------------------------------------------------
| Investments in group companies and | -0.1 | - | - | -0.1 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of group companies | - | 34.6 | - | 34.6 |
| and associated companies | | | | |
--------------------------------------------------------------------------------
| Investment in tangible and intangible | -0.8 | -1.7 | 54.9 % | -2.9 |
| assets | | | | |
--------------------------------------------------------------------------------
| Disposal of tangible and intangible | 0.0 | 0.7 | - | 0.3 |
| assets | | | | |
--------------------------------------------------------------------------------
| Share issue of Aktia Real Estate | 9.2 | 6.6 | 39.5 % | 8.9 |
| Mortgage Bank Plc to the minority | | | | |
--------------------------------------------------------------------------------
| Total cash flow from investing | 14.1 | 45.3 | -68.9 % | 48.9 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | | |
--------------------------------------------------------------------------------
| Subordinated liabilities | 30.0 | -2.4 | - | 6.4 |
--------------------------------------------------------------------------------
| Paid dividends | -42.9 | - | - | - |
--------------------------------------------------------------------------------
| Total cash flow from financing | -12.9 | -2.4 | -441.4% | 6.4 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -56.0 | -192.5 | 70.9 % | -166.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 346.2 | 512.3 | -32.4 % | 512.3 |
| beginning of the year | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end | 290.2 | 319.9 | -9.3 % | 346.2 |
| of the period / year | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents in the cash flow | | | |
| statement consist of the following items: | | | |
--------------------------------------------------------------------------------
| Cash in hand | 8.9 | 9.2 | -3.9 % | 10.0 |
--------------------------------------------------------------------------------
| Bank of Finland current account | 269.6 | 275.5 | -2.1 % | 326.5 |
--------------------------------------------------------------------------------
| Repayable on demand claims on credit | 11.8 | 35.2 | -66.4 % | 9.7 |
| institutions | | | | |
--------------------------------------------------------------------------------
| Total | 290.2 | 319.9 | -9.3 % | 346.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjustment items not included in cash | | | | |
| flow for the period consist of: | | | | |
--------------------------------------------------------------------------------
| Impairment of financial assets | - | 0.4 | - | 0.4 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and other | 8.0 | 17.5 | -54.3 % | 31.1 |
| commitments | | | | |
--------------------------------------------------------------------------------
| Change in fair values | 2.3 | -6.6 | - | -19.3 |
--------------------------------------------------------------------------------
| Depreciation and impairment of | 2.4 | 2.5 | -3.7 % | 4.9 |
| intangible and tangible assets | | | | |
--------------------------------------------------------------------------------
| Share of profit from associated | -0.6 | -0.2 | 165.0 % | 0.0 |
| companies | | | | |
--------------------------------------------------------------------------------
| Sales gains and losses from | 0.1 | -0.1 | - | -0.1 |
| intangible and tangible assets | | | | |
--------------------------------------------------------------------------------
| Other adjustments | 0.0 | 0.2 | -87.3 % | 0.3 |
--------------------------------------------------------------------------------
| Total | 12.2 | 13.6 | -10.9 % | 17.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Includes operating profit from both | | | |
| continuing and discontinued operations for | | | |
| year 2009 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations' share of | | | | |
| cash flow in the Bank Group, net: | | | | |
--------------------------------------------------------------------------------
| Cash flow from operating activities | - | -2.5 | | -2.5 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | - | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | - | - | | - |
--------------------------------------------------------------------------------
| Total | 0.0 | -2.6 | | -2.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of changes in equity for Bank Group | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | | Other | Fund at | Unrestricte |
| | | restricted | | d |
--------------------------------------------------------------------------------
| (EUR 1,000) | Share | equity | fair value | equity |
| | capital | | | reserve |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January | 163.0 | 0.0 | -35.1 | 44.6 |
| 2009 | | | | |
--------------------------------------------------------------------------------
| Share issue | | | | |
--------------------------------------------------------------------------------
| Dividens to | | | | |
| shareholders | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | -0.9 | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | | 9.3 | |
--------------------------------------------------------------------------------
| Total comprehensive | | | 8.4 | |
| income for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | | | 32.1 | |
--------------------------------------------------------------------------------
| Equity as at 30 June | 163.0 | 0.0 | 5.4 | 44.6 |
| 2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January | 163.0 | 0.0 | 34.7 | 44.6 |
| 2010 | | | | |
--------------------------------------------------------------------------------
| Share issue | | | | |
--------------------------------------------------------------------------------
| Dividens to | | | | |
| shareholders | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | -11.2 | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | | 12.7 | |
--------------------------------------------------------------------------------
| Total comprehensive | | | 1.5 | |
| income for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | | | 0.0 | |
--------------------------------------------------------------------------------
| Equity as at 30 June | 163.0 | 0.0 | 36.2 | 44.6 |
| 2010 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Shareholders | Minority | |
| | | ' | | |
--------------------------------------------------------------------------------
| | Retained | share of | interest's | Total |
| | | | share | |
--------------------------------------------------------------------------------
| (EUR 1,000) | earnings | equity | of equity | equity |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January | 102.8 | 275.2 | 24.9 | 300.2 |
| 2009 | | | | |
--------------------------------------------------------------------------------
| Share issue | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Dividens to | | 0.0 | | 0.0 |
| shareholders | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 13.9 | 13.9 | -0.9 | 13.0 |
--------------------------------------------------------------------------------
| Financial assets | | -0.9 | 0.1 | -0.8 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | 9.3 | | 9.3 |
--------------------------------------------------------------------------------
| Total comprehensive | 13.9 | 22.3 | -0.8 | 21.5 |
| income for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | -32.1 | 0.0 | 6.1 | 6.1 |
--------------------------------------------------------------------------------
| Equity as at 30 June | 84.6 | 297.6 | 30.2 | 327.7 |
| 2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January | 108.7 | 351.0 | 32.7 | 383.7 |
| 2010 | | | | |
--------------------------------------------------------------------------------
| Share issue | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Dividens to | -42.9 | -42.9 | | -42.9 |
| shareholders | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 27.2 | 27.2 | 1.3 | 28.5 |
--------------------------------------------------------------------------------
| Financial assets | | -11.2 | 0.0 | -11.2 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | 12.7 | -0.6 | 12.1 |
--------------------------------------------------------------------------------
| Total comprehensive | 27.2 | 28.7 | 0.7 | 29.4 |
| income for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | 0.0 | 0.0 | 9.2 | 9.2 |
--------------------------------------------------------------------------------
| Equity as at 30 June | 93.0 | 336.8 | 42.6 | 379.4 |
| 2010 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Key figures | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | 1-6/ | 1-6/ | ∆ | 4-6/2 | 1-3/2 | 10-12 | 7-9 | 4-6 |
| | 2010 | 2009 | | 010 | 010 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 9.1 | 5.2 | 72.8 | 5.2 | 3.9 | 4.0 | 4.0 | 2.9 |
| share (EPS), | | | % | | | | | |
| continuing | | | | | | | | |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | - | -0.6 | - | - | - | - | - | - |
| share (EPS), | | | | | | | | |
| discontinued | | | | | | | | |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 9.1 | 4.6 | 95.0 | 5.2 | 3.9 | 4.0 | 4.0 | 2.9 |
| share (EPS), | | | % | | | | | |
| total | | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 112. | 99.2 | 13.2 | 112.3 | 122.4 | 117.0 | 115.1 | 99.2 |
| share (NAV)1 | 3 | | % | | | | | |
--------------------------------------------------------------------------------
| Return on | 14.9 | 8.3 | 80.3 | 16.7 | 12.5 | 13.0 | 14.0 | 10.5 |
| equity (ROE), | | | % | | | | | |
| % | | | | | | | | |
--------------------------------------------------------------------------------
| Total earnings | 9.6 | 7.4 | 28.4 | -0.1 | 9.7 | 1.9 | 15.9 | 7.7 |
| per share | | | % | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of | 3 | 3 | 0.0 | 3 | 3 | 3 | 3 | 3 |
| shares at the | | | % | | | | | |
| end of the | | | | | | | | |
| period 1 | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel | | | | | | | | |
| (FTEs), | | | | | | | | |
| average number | | | | | | | | |
| of employees | | | | | | | | |
| from the | | | | | | | | |
| beginning of | | | | | | | | |
--------------------------------------------------------------------------------
| the financial | 746 | 794 | -6.0 | 746 | 753 | 766 | 771 | 794 |
| year 1 | | | % | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Banking Business | | | | | | | |
| (incl. Private | | | | | | | |
| Banking) | | | | | | | |
--------------------------------------------------------------------------------
| Cost-to-income | 0.55 | 0.60 | -8.3 | 0.54 | 0.57 | 0.57 | 0.51 | 0.52 |
| ratio, | | | % | | | | | |
| continuing | | | | | | | | |
| operations | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Borrowing from | 3,36 | 3,09 | 8.9 | 3,364 | 3,199 | 3,035. | 3,095 | 3,091 |
| the public 1 | 4.7 | 1.0 | % | .7 | .0 | 8 | .1 | .0 |
--------------------------------------------------------------------------------
| Lending to the | 6,41 | 5,82 | 10.0 | 6,410 | 6,237 | 6,123. | 6,005 | 5,826 |
| public 1 | 0.3 | 6.4 | % | .3 | .1 | 7 | .9 | .4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | 16.5 | 14.5 | 13.8 | 16.5 | 16.2 | 15.9 | 15.4 | 14.5 |
| adequacy ratio | | | % | | | | | |
| 1, % | | | | | | | | |
--------------------------------------------------------------------------------
| Tier 1 capital | 10.1 | 9.1 | 11.0 | 10.1 | 9.6 | 9.5 | 9.1 | 9.1 |
| ratio 1, % | | | % | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted | 3,55 | 3,39 | 4.7 | 3,555 | 3,527 | 3,460. | 3,493 | 3,394 |
| commitments 1 | 5.3 | 4.8 | % | .3 | .2 | 2 | .4 | .8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Asset | | | | | | | | |
| Management | | | | | | | | |
--------------------------------------------------------------------------------
| Mutual fund | 3,77 | 2,92 | 28.8 | 3,770 | 4,096 | 3,786. | 3,488 | 2,927 |
| volume 1 | 0.9 | 7.4 | % | .9 | .1 | 2 | .0 | .4 |
--------------------------------------------------------------------------------
| Managed and | 6,30 | 5,08 | 24.0 | 6,300 | 6,382 | 5,995. | 5,680 | 5,082 |
| brokered | 0.8 | 2.9 | % | .8 | .3 | 6 | .5 | .9 |
| assets 1 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) At the end | | | | | | | | |
| of the period | | | | | | | | |
| Formulas for | | | | | | | | |
| key figures | | | | | | | | |
| are presented | | | | | | | | |
| in Aktia Bank | | | | | | | | |
| plc's annual | | | | | | | | |
| report 2009, | | | | | | | | |
| page 6 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in Quarterly trends in Aktia Bank Group |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | 4-6/20 | 1-3/201 | 10-12 | 7-9 | 4-6 |
| | 10 | 0 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net interest income | 38.2 | 38.8 | 40.1 | 40.6 | 39.4 |
--------------------------------------------------------------------------------
| Dividends | 0.3 | 0.0 | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Net commission income | 13.9 | 12.2 | 13.0 | 10.0 | 9.7 |
--------------------------------------------------------------------------------
| Net income from financial | -2.8 | -3.1 | -0.7 | 0.3 | 3.7 |
| transactions | | | | | |
--------------------------------------------------------------------------------
| Net income from investment | -0.1 | 0.0 | 0.0 | 0.0 | 0.0 |
| properties | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 3.6 | 0.9 | 0.5 | 0.7 | 0.9 |
--------------------------------------------------------------------------------
| Total operating income | 53.2 | 48.8 | 52.9 | 51.6 | 53.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Staff costs | -12.9 | -12.4 | -12.7 | -10.5 | -11.6 |
--------------------------------------------------------------------------------
| Other administrative | -10.9 | -10.3 | -10.1 | -10.2 | -10.8 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible | -1.2 | -1.2 | -1.3 | -1.2 | -1.2 |
| and intangible assets | | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -3.9 | -3.8 | -6.2 | -4.2 | -4.1 |
--------------------------------------------------------------------------------
| Total operating expenses | -28.8 | -27.8 | -30.2 | -26.1 | -27.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairment and reversal of | | | | | |
| impairment on | | | | | |
--------------------------------------------------------------------------------
| tangible and intangible | - | - | - | - | - |
| assets | | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and | -3.6 | -4.4 | -5.2 | -8.4 | -15.9 |
| other commitments | | | | | |
--------------------------------------------------------------------------------
| Share of profit from | 1.0 | -0.1 | -0.3 | 0.1 | 0.5 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 21.8 | 16.6 | 17.1 | 17.2 | 10.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | -5.5 | -4.3 | -4.8 | -4.9 | -2.3 |
--------------------------------------------------------------------------------
| Profit for the period | 16.2 | 12.3 | 12.3 | 12.3 | 8.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of comprehensive income for Bank Group |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | 4-6/20 | 1-3/201 | 10-12 | 7-9 | 4-6 |
| | 10 | 0 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit for the reporting | 16.2 | 12.3 | 12.3 | 12.3 | 8.2 |
| period | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income | | | | | |
| after taxes: | | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair | -19.5 | 8.3 | -4.0 | 31.5 | 11.7 |
| value for financial assets | | | | | |
| available for sale | | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair | 2.9 | 9.2 | -4.7 | 4.5 | 2.8 |
| value for cash flow hedging | | | | | |
--------------------------------------------------------------------------------
| Transferred to the income | - | - | 2.4 | - | - |
| statement for fianacial | | | | | |
| assets available for sale | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income | -0.4 | 29.8 | 6.0 | 48.3 | 22.7 |
| for the period | | | | | |
--------------------------------------------------------------------------------
Note 1. Basis for preparing interim reports and important accounting principles
Basis for preparing the interim report
Aktia Bank plc's consolidated financial statement is prepared in accordance with
International Financial Reporting Standards (IFRS) as approved by the EU.
The interim report for the period 1 January - 30 June 2010 has been prepared in
accordance with IAS 34 ‘Interim Financial Reporting'. The interim financial
report does not contain all the information and notes required for an annual
report and should therefore be read together with Aktia Bank's annual report of
31 December 2009.
The figures in this report are presented so that income statement items are
compared with the corresponding period of the previous year, while the
comparison of balance sheet items relates to 31 December 2009 unless specified
otherwise. Balance sheet items in the Report by the Board of Directors are
mainly given in EUR million without decimals.
The interim report for the period 1 January - 30 June 2010 was approved by the
Board of Directors on 12 August 2010.
Aktia Bank plc's financial statements and interim reports are available on
Aktia's website www.aktia.fi.
Important accounting principles
In preparing this interim report the Group has followed the accounting
principles applicable to the annual report of 31 December 2009.
In February 2009, Aktia Life Insurance was sold to Aktia plc. The life insurance
business was a separate segment in the Bank Group, which is why Aktia Life
Insurance is to be reported as a discontinued operation in accordance with IFRS
5 as of 2009.
New accounting standards apply from 2010
IFRS 3 Business Combinations (revised)
With effect from 1 January 2010, business combinations are reported in
accordance with the revised standard IFRS 3. From 1 January 2010 onwards,
company acquisitions will involve greater volatility in the consolidated income
statement and in the Group's equity. The Group has not had any company
acquisitions during the first half of 2010.
IAS 27 Consolidated and Separate Financial Statements (revised)II
This revised standard deals with accounting principles relating to minority
interests. The application of this standard has not had any impact on Aktia
Bank's result or financial position during the first half year of 2010.
Note 2. The Bank Group's segment report
As of 2009 Aktia Bank plc reports three segments, Banking Business, Asset
Management and Miscellaneous.
Allocation principles
Net interest income includes the margins on volumes of borrowing and lending.
Reference interest rates for borrowing and lending and the interest rate risk
that arises because of new pricing being out of step are transferred to Treasury
in accordance with the Group's internal pricing. Treasury assumes responsibility
for the Group's interest rate risk, liquidity and balance protection measures
for which management has issued authority. The costs of central support
functions are allocated to the segments in accordance with various allocation
rules.
Until further notice, Aktia Bank plc is not allocating equity to the various
segments. Miscellaneous consists of any items in the income statement and
balance sheet that are not allocated to the various segments.
Internal Group transactions between legal entities are eliminated and reported
within each segment if the legal entities are in the same segment. Internal
Group transactions between legal entities in different segments are included in
the eliminations.
The share of profits in associated undertakings, eliminations related to
acquisitions and the minority interest's share as well as other Group
adjustments are included in the eliminations. The pricing between segments is
based on market value.
--------------------------------------------------------------------------------
| Note 2. Segment report for Bank Group | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Banking | | Asset |
| | | Business | | Management |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-6/20 | 1-6/2009 | 1-6/2010 | 1-6/2009 |
| | 10 | | | |
--------------------------------------------------------------------------------
| Net interest income | 75.5 | 68.9 | 1.6 | 1.0 |
--------------------------------------------------------------------------------
| Net commission income | 17.8 | 11.3 | 8.3 | 5.6 |
--------------------------------------------------------------------------------
| Other income | -2.0 | 2.9 | 0.2 | -0.2 |
--------------------------------------------------------------------------------
| Total operating income | 91.2 | 83.1 | 10.1 | 6.4 |
--------------------------------------------------------------------------------
| Staff costs | -17.6 | -16.3 | -4.4 | -3.6 |
--------------------------------------------------------------------------------
| Other administrative | -21.9 | -25.0 | -2.9 | -2.0 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible | | | | |
| and | | | | |
--------------------------------------------------------------------------------
| intangible assets | -1.1 | -1.1 | -0.3 | -0.4 |
--------------------------------------------------------------------------------
| Other expenses | -4.6 | -4.6 | -0.5 | -0.4 |
--------------------------------------------------------------------------------
| Total operating expenses | -45.3 | -47.0 | -8.1 | -6.4 |
--------------------------------------------------------------------------------
| Impariment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | - | - | - |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | -8.0 | -17.5 | - | - |
--------------------------------------------------------------------------------
| Share of profit from | - | - | - | - |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | 37.9 | 18.6 | 2.0 | 0.1 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit from | - | - | - | - |
| discontinuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | 37.9 | 18.6 | 2.0 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Life | | Miscellaneous |
| | | Insurance | | |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-6/20 | 1-6/2009 | 1-6/2010 | 1-6/2009 |
| | 10 | | | |
--------------------------------------------------------------------------------
| Net interest income | - | - | 0.0 | 1.8 |
--------------------------------------------------------------------------------
| Net commission income | - | - | 0.0 | 1.0 |
--------------------------------------------------------------------------------
| Other income | - | - | 10.1 | 2.2 |
--------------------------------------------------------------------------------
| Total operating income | 0.0 | 0.0 | 10.1 | 5.0 |
--------------------------------------------------------------------------------
| Staff costs | - | - | -3.1 | -3.5 |
--------------------------------------------------------------------------------
| Other administrative | - | - | -3.9 | 4.8 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible | | | | |
| and | | | | |
--------------------------------------------------------------------------------
| intangible assets | - | - | -1.0 | -0.8 |
--------------------------------------------------------------------------------
| Other expenses | - | - | -3.1 | -3.2 |
--------------------------------------------------------------------------------
| Total operating expenses | 0.0 | 0.0 | -11.1 | -2.7 |
--------------------------------------------------------------------------------
| Impariment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | - | - | - |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | - | - | - | - |
--------------------------------------------------------------------------------
| Share of profit from | - | - | - | - |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | 0.0 | 0.0 | -1.0 | 2.3 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit from | - | 0.1 | - | - |
| discontinuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | 0.0 | 0.1 | -1.0 | 2.3 |
--------------------------------------------------------------------------------
| Contribution of insurance | | | | |
| business | | | | |
--------------------------------------------------------------------------------
| to the Groups' operating | - | -0.3 | | |
| profit | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Elimination | | Total Group |
| | | s | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-6/20 | 1-6/2009 | 1-6/2010 | 1-6/2009 |
| | 10 | | | |
--------------------------------------------------------------------------------
| Net interest income | - | 0.0 | 77.0 | 71.7 |
--------------------------------------------------------------------------------
| Net commission income | 0.0 | -0.2 | 26.0 | 17.7 |
--------------------------------------------------------------------------------
| Other income | -9.3 | -2.1 | -1.1 | 2.8 |
--------------------------------------------------------------------------------
| Total operating income | -9.4 | -2.3 | 102.0 | 92.2 |
--------------------------------------------------------------------------------
| Staff costs | -0.2 | 0.0 | -25.3 | -23.4 |
--------------------------------------------------------------------------------
| Other administrative | 7.6 | 0.7 | -21.2 | -21.5 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible | | | | |
| and | | | | |
--------------------------------------------------------------------------------
| intangible assets | - | - | -2.4 | -2.3 |
--------------------------------------------------------------------------------
| Other expenses | 0.5 | 0.0 | -7.7 | -8.1 |
--------------------------------------------------------------------------------
| Total operating expenses | 7.9 | 0.7 | -56.6 | -55.4 |
--------------------------------------------------------------------------------
| Impariment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | - | - | -8.0 | -17.5 |
--------------------------------------------------------------------------------
| Share of profit from | 0.9 | 0.5 | 0.9 | 0.5 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | -0.5 | -1.1 | 38.4 | 19.8 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit from | - | -0.4 | - | -0.3 |
| discontinuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | -0.5 | -1.5 | 38.4 | 19.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Banking | | Asset |
| | | Business | | Management |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 30.6.201 | 31.12.2009 | 30.6.2010 | 31.12.2009 |
| | 0 | | | |
--------------------------------------------------------------------------------
| Cash and balances with | 278.3 | 336.4 | 0.1 | 0.1 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | | |
| reported at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | 3.7 | 3.6 | - | - |
--------------------------------------------------------------------------------
| Financial assets | 2,632.9 | 2,655.8 | 7.6 | 7.3 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | 6,436.3 | 6,173.7 | 43.6 | 34.4 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other assets | 443.8 | 662.4 | 6.1 | 5.0 |
--------------------------------------------------------------------------------
| Total assets | 9,795.1 | 9,831.9 | 57.3 | 46.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | 4,695.1 | 4,609.2 | 190.8 | 154.7 |
--------------------------------------------------------------------------------
| Debt securities issued | 2,985.8 | 2,758.1 | - | - |
--------------------------------------------------------------------------------
| Other liabilities | 1,619.3 | 1,506.9 | 7.8 | 6.7 |
--------------------------------------------------------------------------------
| Total liabilities | 9,300.2 | 8,874.2 | 198.6 | 161.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Life | | Miscellaneou |
| | | Insurance | | s |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 30.6.201 | 31.12.2009 | 30.6.2010 | 31.12.2009 |
| | 0 | | | |
--------------------------------------------------------------------------------
| Cash and balances with | - | - | - | - |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | | |
| reported at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | - | - | - | - |
--------------------------------------------------------------------------------
| Financial assets | - | - | - | 2.9 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | - | - | 9.6 | - |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other assets | - | - | 8.5 | -293.6 |
--------------------------------------------------------------------------------
| Total assets | 0.0 | 0.0 | 18.2 | -290.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | - | - | - | - |
--------------------------------------------------------------------------------
| Debt securities issued | - | - | - | - |
--------------------------------------------------------------------------------
| Other liabilities | - | - | 18.7 | 194.4 |
--------------------------------------------------------------------------------
| Total liabilities | 0.0 | 0.0 | 18.7 | 194.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Elimination | | Total Group |
| | | s | | |
--------------------------------------------------------------------------------
| (EUR million) | 30.6.201 | 31.12.2009 | 30.6.2010 | 31.12.2009 |
| | 0 | | | |
--------------------------------------------------------------------------------
| Cash and balances with | - | - | 278.4 | 336.5 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | | |
| reported at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | - | - | 3.7 | 3.6 |
--------------------------------------------------------------------------------
| Financial assets | -3.9 | -3.6 | 2,636.6 | 2,662.4 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | -4.2 | -3.7 | 6,485.4 | 6,204.4 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other assets | -48.3 | -41.1 | 410.1 | 332.7 |
--------------------------------------------------------------------------------
| Total assets | -56.3 | -48.5 | 9,814.3 | 9,539.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | -4.2 | -3.7 | 4,881.7 | 4,760.2 |
--------------------------------------------------------------------------------
| Debt securities issued | -3.9 | -3.6 | 2,981.9 | 2,754.5 |
--------------------------------------------------------------------------------
| Other liabilities | -74.5 | -66.8 | 1,571.3 | 1,641.2 |
--------------------------------------------------------------------------------
| Total liabilities | -82.6 | -74.2 | 9,434.9 | 9,155.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Note 3. Derivatives and off-balance sheet commitments |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments at 30 June 2010 (EUR | | |
| million) | | |
--------------------------------------------------------------------------------
| 30.6.2010 | Total | Assets, | Liabilities, |
| | nominal | | |
--------------------------------------------------------------------------------
| Hedging derivative instruments | amount | fair value | fair value |
| (EUR million) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair value hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 3,092.5 | 94.5 | 34.6 |
--------------------------------------------------------------------------------
| Total | 3,092.5 | 94.5 | 34.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 960.0 | 56.7 | 0.2 |
--------------------------------------------------------------------------------
| Total | 960.0 | 56.7 | 0.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments valued | | | |
| through profit and loss | | | |
--------------------------------------------------------------------------------
| Interest rate-related *) | 7,200.9 | 132.6 | 134.6 |
--------------------------------------------------------------------------------
| Currency-related | 197.6 | 0.8 | 1.2 |
--------------------------------------------------------------------------------
| Equity-related **) | 98.3 | 3.1 | 3.1 |
--------------------------------------------------------------------------------
| Other derivative instruments **) | 4.3 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Total | 7,501.1 | 136.9 | 139.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total derivative instruments | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 11,253.4 | 283.8 | 169.3 |
--------------------------------------------------------------------------------
| Currency-related | 197.6 | 0.8 | 1.2 |
--------------------------------------------------------------------------------
| Equity-related | 98.3 | 3.1 | 3.1 |
--------------------------------------------------------------------------------
| Other derivative instruments | 4.3 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Total | 11,553.6 | 288.2 | 174.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments at 30 June 2009 (EUR | | |
| million) | | |
--------------------------------------------------------------------------------
| 30.6.2009 | Total | Assets. | Liabilities. |
| | nominal | | |
--------------------------------------------------------------------------------
| Hedging derivative instruments | amount | fair value | fair value |
| (EUR million) | | | |
--------------------------------------------------------------------------------
| Fair value hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 2,113.5 | 51.5 | 17.8 |
--------------------------------------------------------------------------------
| Total | 2,113.5 | 51.5 | 17.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 960.0 | 37.2 | 1.2 |
--------------------------------------------------------------------------------
| Total | 960.0 | 37.2 | 1.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments valued | | | |
| through profit and loss | | | |
--------------------------------------------------------------------------------
| Interest rate-related *) | 7,037.1 | 104.9 | 103.1 |
--------------------------------------------------------------------------------
| Currency-related | 191.9 | 1.9 | 1.9 |
--------------------------------------------------------------------------------
| Equity-related **) | 120.3 | 3.3 | 3.3 |
--------------------------------------------------------------------------------
| Other derivative instruments **) | 6.3 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Total | 7,355.6 | 110.4 | 108.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total derivative instruments | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 10,110.6 | 193.7 | 122.2 |
--------------------------------------------------------------------------------
| Currency-related | 191.9 | 1.9 | 1.9 |
--------------------------------------------------------------------------------
| Equity-related | 120.3 | 3.3 | 3.3 |
--------------------------------------------------------------------------------
| Other derivative instruments | 6.3 | 0.3 | 0.3 |
--------------------------------------------------------------------------------
| Total | 10,429.1 | 199.2 | 127.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Interest-linked derivatives include interest rate hedging provided for |
| local banks which after |
--------------------------------------------------------------------------------
| back-to-back hedging with third parties amounted to EUR 6 809,0 (6 730,6) |
| million. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| **) All equity-related and other derivative instruments relate to the |
| hedging of structured debt products. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Off-balance sheet commitments | 30.6.2010 | 31.12.2009 | 30.6.2009 |
--------------------------------------------------------------------------------
| (EUR million) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitments provided to a third | | | |
| party on behalf of the customers | | | |
--------------------------------------------------------------------------------
| Guarantees | 51.0 | 49.9 | 58.3 |
--------------------------------------------------------------------------------
| Other commitments provided to a | 6.1 | 7.3 | 7.6 |
| third party | | | |
--------------------------------------------------------------------------------
| Irrevocable commitments provided | | | |
| on behalf of customers | | | |
--------------------------------------------------------------------------------
| Unused credit arrangements | 553.3 | 510.9 | 543.5 |
--------------------------------------------------------------------------------
| Other commitments provided to a | - | - | - |
| third party | | | |
--------------------------------------------------------------------------------
| Off-balance sheet commitments | 610.5 | 568.1 | 609.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Note 4. Risk exposures for Bank Group |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated capital adequacy | | | | | |
| for Bank Group | | | | | |
--------------------------------------------------------------------------------
| Summary (EUR million) | 6/2010 | 3/2010 | 12/200 | 9/2009 | 6/2009 |
| | | | 9 | | |
--------------------------------------------------------------------------------
| Tier 1 capital | 359.8 | 337.5 | 329.0 | 319.2 | 309.4 |
--------------------------------------------------------------------------------
| Tier 2 capital | 227.6 | 235.4 | 222.8 | 219.5 | 183.4 |
--------------------------------------------------------------------------------
| Capital base | 587.3 | 572.9 | 551.8 | 538.7 | 492.8 |
--------------------------------------------------------------------------------
| Risk-weighted amount for credit | 3,242. | 3,214. | 3,147. | 3,220. | 3,122. |
| and counterpart risks | 6 | 5 | 5 | 7 | 2 |
--------------------------------------------------------------------------------
| Risk-weighted amount for market | - | - | - | - | - |
| risks 1) | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted amount for | 312.7 | 312.7 | 312.7 | 272.7 | 272.7 |
| operational risks | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted commitments | 3,555. | 3,527. | 3,460. | 3,493. | 3,394. |
| | 3 | 2 | 2 | 4 | 8 |
--------------------------------------------------------------------------------
| Capital adequacy ratio, % | 16.5 | 16.2 | 15.9 | 15.4 | 14.5 |
--------------------------------------------------------------------------------
| Tier 1 Capital ratio, % | 10.1 | 9.6 | 9.5 | 9.1 | 9.1 |
--------------------------------------------------------------------------------
| Minimum capital requirement | 284.4 | 282.2 | 276.8 | 279.5 | 271.6 |
--------------------------------------------------------------------------------
| Capital buffer (difference | 302.9 | 290.7 | 275.0 | 259.2 | 221.2 |
| between capital base and minimi | | | | | |
| requirement) | | | | | |
--------------------------------------------------------------------------------
| 1) No capital requirement due to minor trading book and when total of net |
| currency positions are less than 2% of capital base. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 6/2010 | 3/2010 | 12/200 | 9/2009 | 6/2009 |
| | | | 9 | | |
--------------------------------------------------------------------------------
| Share capital | 163.0 | 163.0 | 163.0 | 163.0 | 163.0 |
--------------------------------------------------------------------------------
| Funds | 44.6 | 44.6 | 44.6 | 44.6 | 44.6 |
--------------------------------------------------------------------------------
| Minority share | 42.6 | 32.7 | 32.7 | 30.0 | 30.2 |
--------------------------------------------------------------------------------
| Retained earnings | 65.8 | 95.8 | 70.7 | 70.7 | 70.7 |
--------------------------------------------------------------------------------
| Profit for the period | 27.2 | 11.6 | 38.0 | 26.0 | 13.9 |
--------------------------------------------------------------------------------
| Provision for dividends to | -7.4 | -3.7 | -12.9 | -7.5 | -5.0 |
| shareholders | | | | | |
--------------------------------------------------------------------------------
| Capital loan | 30.0 | - | - | - | - |
--------------------------------------------------------------------------------
| Total | 365.8 | 343.9 | 336.0 | 326.7 | 317.4 |
--------------------------------------------------------------------------------
| Intangible assets | -6.0 | -6.4 | -7.0 | -7.5 | -8.0 |
--------------------------------------------------------------------------------
| Tier 1 capital | 359.8 | 337.5 | 329.0 | 319.2 | 309.4 |
--------------------------------------------------------------------------------
| Fund at fair value | 2.7 | 21.6 | 13.3 | 14.9 | -16.3 |
--------------------------------------------------------------------------------
| Upper Tier 2 loans | 45.0 | 45.0 | 45.0 | 45.0 | 45.0 |
--------------------------------------------------------------------------------
| Lower Tier 2 loans | 179.9 | 168.8 | 164.5 | 159.6 | 154.7 |
--------------------------------------------------------------------------------
| Tier 2 capital | 227.6 | 235.4 | 222.8 | 219.5 | 183.4 |
--------------------------------------------------------------------------------
| Total capital base | 587.3 | 572.9 | 551.8 | 538.7 | 492.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Risk-weighted commitments, credit and counterparty risks | |
--------------------------------------------------------------------------------
| Total | | | | | | | | | (EUR |
| exposur | | | | | | | | | million) |
| es | | | | | | | | | |
| 6/2010 | | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | Off-balanc | | |
| | | | | | | | e | | |
--------------------------------------------------------------------------------
| | | | | | | | sheet | | |
--------------------------------------------------------------------------------
| Risk-we | | | | | Balan | | commitment | | Total |
| ight | | | | | ce | | s | | |
| | | | | | asset | | | | |
| | | | | | s | | | | |
--------------------------------------------------------------------------------
| 0 % | | | | | 1,203 | | 33.4 | | 1,237.2 |
| | | | | | .8 | | | | |
--------------------------------------------------------------------------------
| 10 % | | | | | 1,196 | | 0.0 | | 1,196.4 |
| | | | | | .4 | | | | |
--------------------------------------------------------------------------------
| 20 % | | | | | 1,119 | | 286.2 | | 1,405.4 |
| | | | | | .2 | | | | |
--------------------------------------------------------------------------------
| 35 % | | | | | 4,782 | | 107.7 | | 4,890.2 |
| | | | | | .4 | | | | |
--------------------------------------------------------------------------------
| 50 % | | | | | 0.1 | | 0.0 | | 0.1 |
--------------------------------------------------------------------------------
| 75 % | | | | | 605.8 | | 91.3 | | 697.1 |
--------------------------------------------------------------------------------
| 100 % | | | | | 613.0 | | 91.2 | | 704.2 |
--------------------------------------------------------------------------------
| 150 % | | | | | 16.2 | | 0.7 | | 16.9 |
--------------------------------------------------------------------------------
| Total | | | | | 9,537 | | 610.5 | | 10,147.5 |
| | | | | | .0 | | | | |
--------------------------------------------------------------------------------
| Derivat | | | | | 345.1 | | - | | 345.1 |
| ives *) | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | 9,882 | | 610.5 | | 10,492.6 |
| | | | | | .1 | | | | |
--------------------------------------------------------------------------------
| *) derivative agreements | | | | |
| credit conversion factor | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Risk-we | | | | | | | | | (EUR |
| ighted | | | | | | | | | million) |
| exposur | | | | | | | | | |
| es, | | | | | | | | | |
| Basel 2 | | | | | | | | | |
--------------------------------------------------------------------------------
| Risk-we | | | | | 6/201 | 3/2010 | 12/2009 | 9/2009 | 6/2009 |
| ight | | | | | 0 | | | | |
--------------------------------------------------------------------------------
| 0 % | | | | | - | - | - | - | - |
--------------------------------------------------------------------------------
| 10 % | | | | | 119.6 | 129.0 | 115.9 | 111.3 | 101.6 |
--------------------------------------------------------------------------------
| 20 % | | | | | 235.8 | 258.6 | 252.5 | 341.9 | 291.8 |
--------------------------------------------------------------------------------
| 35 % | | | | | 1,686 | 1,633.5 | 1,596.8 | 1,567.2 | 1,516.6 |
| | | | | | .8 | | | | |
--------------------------------------------------------------------------------
| 50 % | | | | | 0.1 | 0.1 | 0.1 | 4.8 | 3.5 |
--------------------------------------------------------------------------------
| 75 % | | | | | 483.6 | 466.9 | 466.1 | 457.8 | 447.2 |
--------------------------------------------------------------------------------
| 100 % | | | | | 660.7 | 673.4 | 673.3 | 694.0 | 702.5 |
--------------------------------------------------------------------------------
| 150 % | | | | | 24.9 | 22.5 | 19.1 | 22.4 | 32.7 |
--------------------------------------------------------------------------------
| Total | | | | | 3,211 | 3,183.9 | 3,123.7 | 3,199.6 | 3,096.0 |
| | | | | | .5 | | | | |
--------------------------------------------------------------------------------
| Derivat | | | | | 31.1 | 30.6 | 23.8 | 21.1 | 26.2 |
| ives *) | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | 3,242 | 3,214.5 | 3,147.5 | 3,220.7 | 3,122.2 |
| | | | | | .6 | | | | |
--------------------------------------------------------------------------------
| *) derivative agreements | | | | |
| credit conversion factor | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| In its capital adequacy measurement to determine the exposure's risk weight, |
| Aktia applies credit ratings by Moody's Investors Service or Standard & |
| Poor's to receivables from central goverments and central banks, credit |
| institutions, investment firms and covered bonds. The risk weight for bank |
| exposures and bonds secured by real estate is determined by the credit |
| rating of the country where the institution is located. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Risk-weighted amounts for operational risks |
--------------------------------------------------------------------------------
| | 2009 | 2008 | 2007 | 2 | 6/20 | 3/ | 12/200 | 9/2009 | 6/ | |
| | | | | 0 | 10 | 20 | 9 | | 20 | |
| | | | | 0 | | 10 | | | 09 | |
| | | | | 6 | | | | | | |
--------------------------------------------------------------------------------
| Gros | 204.7 | 150.5 | 145. | 1 | | | | | | |
| s | | | 2 | 4 | | | | | | |
| inco | | | | 0 | | | | | | |
| me | | | | . | | | | | | |
| | | | | 6 | | | | | | |
--------------------------------------------------------------------------------
| - | 166.8 | 145.4 | | | | | | | | |
| aver | | | | | | | | | | |
| age | | | | | | | | | | |
| 3 | | | | | | | | | | |
| year | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Capi | | | | | 25.0 | 25 | 25.0 | 21.8 | 21 | |
| tal | | | | | | .0 | | | .8 | |
| requ | | | | | | | | | | |
| irem | | | | | | | | | | |
| ent | | | | | | | | | | |
| for | | | | | | | | | | |
| oper | | | | | | | | | | |
| atio | | | | | | | | | | |
| nal | | | | | | | | | | |
| risk | | | | | | | | | | |
--------------------------------------------------------------------------------
| Risk | | | | | 312. | 31 | 312.7 | 272.7 | 27 | |
| -wei | | | | | 7 | 2. | | | 2. | |
| ghte | | | | | | 7 | | | 7 | |
| d | | | | | | | | | | |
| amou | | | | | | | | | | |
| nt, | | | | | | | | | | |
| Base | | | | | | | | | | |
| l 2 | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The capital requirement for operational risk is 15 % of average gross | |
| income during the last three years. | |
--------------------------------------------------------------------------------
| The risk-weighted amount is calculated by dividing the capital | |
| requirement by 8 %. | |
--------------------------------------------------------------------------------
To the Board of Directors of Aktia Bank p.l.c.
REVIEW REPORT ON THE INTERIM REPORT OF AKTIA BANK P.L.C. AS OF 30.6.2010.
Introduction
We have reviewed the balance sheet as of 30.6.2010, the income statement, the
statement of changes in equity and the cash flow statement of Aktia Bank p.l.c.
for the six-month period then ended, as well as a summary of significant
accounting policies and other explanatory notes to the financial statements. The
Board of Directors and the Managing Director are responsible for the preparation
and fair presentation of this interim financial information in accordance with
the International Financial Reporting Standards (IFRS), as adopted by the EU,
and other Finnish rules and regulations governing the preparation of interim
reports. At the request of the Board of Directors we issue our opinion on the
interim report.
Scope of review
We conducted our review in accordance with the Standard on Review Engagements
2410, Review of Interim Financial Information Performed by the Independent
Auditor of the Entity. A review of interim financial information consists of
making inquiries, primarily of persons responsible for financial accounting
matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit con-ducted in accordance with the
standards on auditing and other generally accepted auditing practices, and
therefore the procedures performed in a review do not enable to obtain a level
of assurance that would make us aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Opinion
Based on our review, nothing has come to our attention that causes us to believe
that the Interim Report does not give a true and fair view of the entity's
financial position as of 30 June 2010 and the result of its operations and cash
flows for the six-month period then ended, in accordance with the International
Financial Reporting Standards (IFRS), as adopted by the EU and other applicable
rules and regulations governing interim financial reporting preparation in
Finland.
Helsinki, 12 August 2010
PricewaterhouseCoopers Oy
Authorised Public Accountants
Jan Holmberg
Authorised Public Accountant
Aktia plc
PO Box 207
Mannerheimintie 14
FIN-00101 Helsinki
Tel. +358 10 247 5000
Fax +358
0 247 6356
CEO Jussi Laitinen, tel. +358 10 247 5000
Deputy Managing Director, CFO Stefan
Björkman, tel. +358 10 247 5000
Business ID 0108664-3
BIC/S.W.I.F.T. HELSFIHH
Investor Relations
PO Box 207
Mannerheimintie 14
FIN-00101 Helsinki
Investor Relations Manager Anna Gabrán
tel. +358 10 247 6501
Fax +358 10 247 6249
e-mail: ir(at)aktia.fi
Website: www.aktia.fi
Contact address: aktia(at)aktia.fi
E-mail logic: first
name.surname(at)aktia.fi
