Aktia plc: Accounts announcement January-December 2012: Operating profit improved by 26%

 

Aktia plc
Financial Statement Release
14 February 2013 at 11.00 am

Aktia plc: Accounts announcement January-December 2012: Operating profit improved by 26%

CEO Jussi Laitinen:
”The year was good for Aktia, resulting also in a strong operating profit. Customers show an increasing interest towards Aktia’s products and received well the launch of our new online bank. Aktia’s staff has performed extraordinary well, and I am convinced that the on-going modernisation of Aktia will improve customer service even more.
The market situation is still difficult with very low interest rates and pressure from costs due to stricter regulation and new taxes. These factors put demands on our cost efficiency. We will direct our efforts on our core business, simplify the Group structure and modernise IT systems in order to be able to lower our annual expenses.”

October-December 2012: Operating profit EUR 10.4 (6.5) million

  • Group operating profit from continuing operations rose to EUR 10.4 (6.5) million.
  • Profit for the period amounted to EUR 6.3 (7.7) million.
  • Income increased by 18% to EUR 58.4 (49.6) million, of which net interest income amounted to EUR 29.3 (30.3) million.
  • Expenses amounted to EUR 46.0 (39.0) million, including a provision of EUR 5.9 million for the coming change of core banking system.
  • Write-downs on credits and other commitments amounted to EUR 1.7 (4.1) million.
  • Earnings per share stood at EUR 0.09 (0.12).

January-December 2012: Operating profit EUR 56.0 (44.6) million

  • Group operating profit from continuing operations improved to EUR 56.0 (44.6) million.
  • Profit for the period from continuing operations amounted to EUR 40.3 (34.1) million.
  • Earnings per share stood at EUR 0.74 (0.53), of which earnings per share from continuing operations was EUR 0.59 (0.50).
  • The capital adequacy ratio strengthened to 20.2 (16.2)% and the Tier 1 capital ratio to 11.8 (10.6)%. NAV was EUR 8.91 (31.12.2011: EUR 7.01).
  • Total net interest income fell to EUR 117.3 (128.6) million due to low interest rates and maturing interest rate hedges.
  • Write-downs on credits and other commitments decreased by 39% to EUR 6.4 (10.5) million.
  • The Board of Director’s proposes a higher dividend of EUR 0.36 (0.30) in addition to a return of capital of EUR 0.14 euro/share.
  • OUTLOOK: Despite the probably persistent low interest rate level and one-off costs from implementing the 2015 plan of action, the Group’s operating profit from continuing operations for 2013 is expected to reach approximately the 2012 level.

 

KEY FIGURES
(EUR million)
10-12/ 2012 10-12/ 2011 ∆ %      2012 2011 ∆ %      7-9/ 2012 4-6/ 2012 1-3/ 2012
Net interest income 29.3 30.3 -3% 117.3 128.6 -9% 28.7 29.7 29.6
Total operating income 58.4 49.6 18% 217.9 201.9 8% 50.5 55.8 53.2
Total operating expenses -46.0 -39.0 18% -154.2 -146.7 5% -34.0 -37.5 -36.7
Operating profit before write downs on credits, continuing operations 12.1 10.6 14% 62.4 55.1 13% 15.2 18.8 16.2
Write-downs on credits and other commitments -1.7 -4.1 -58% -6.4 -10.5 -39% -1.8 -1.0 -1.9
Operating profit from continuing operations 10.4 6.5 61% 56.0 44.6 26% 13.4 17.9 14.3
Cost-to-income ratio 0.89 0.78 14% 0.74 0.73 1% 0.69 0.69 0.68
Earnings per share (EPS), EUR 0.09 0.12 -20% 0.74 0.53 39% 0.15 0.21 0.29
Equity per share (NAV)1, EUR 8.91 7.01 27% 8.91 7.01 27% 8.70 7.88 7.89
Return on equity (ROE), % 3.9 6.1 -36% 8.5 7.1 19% 6.4 9.7 14.1
Capital adequacy ratio1, % 20.2 16.2 25% 20.2 16.2 25% 19.9 18.9 18.1
Tier 1 capital ratio1, % 11.8 10.6 11% 11.8 10.6 11% 11.8 11.7 11.3
Write-downs on credits / total credit stock, % 0.02 0.06 -67% 0.09 0.15 -40% 0.02 0.01 0.03
Dividend per share, EUR (*proposed by the Board)   0.36* 0.30 20 %      
Return of capital per share, EUR (*proposed by the Board)   0.14* - -      

1) At the end of the period
The Accounts Announcement January-December 2012 is a translation of the original Swedish version ”Bokslutskommuniké 1.1-31.12.2012”. In case of discrepancies, the Swedish version shall prevail.           
 

         Managing Director Jussi Laitinen
         Deputy Managing Director Stefan Björkman, tel. +358 10 247 6595
         CFO Fredrik Westerholm, tel. +358 10 247 6505
         IR Anna Gabrán, tel. +358 10 247 6501, +358 40 708 1807, ir@aktia.fi