Aktia plc Interim report 1.1-30.6.2010
AKTIA PLC'S INTERIM REPORT JANUARY - JUNE 2010
FIRST HALF YEAR: OPERATING PROFIT EUR 41.0 (17.3) MILLION
Group operating profit for January-June 2010 improved 137.0% to EUR 41.0 (17.3)
million and the profit for the period to EUR 30.0 (13.0) million. Earnings per
share was up 107.0% to EUR 0.43 (0.21).
Net interest income rose 7.7% to EUR 77.5 (71.9) million.
Net commission income advanced 40.7% to EUR 28.9 (20.6) million.
Net income from life insurance improved marginally to EUR 7.1 (7.0) million.
Net income from non-life insurance improved 39.1% to EUR 10.3 (7.4) million.
Write-downs on credit were clearly lower than last year and stood at EUR 8.4
(17.8) million.
Aktia Bank plc's credit rating remained unchanged A1/C/P-1 (Moody's Investors
Service)
Aktia expects operating profit for 2010 to exceed the level in 2009 and
write-downs on credit to remain clearly lower than last year (updated).
APRIL-JUNE: OPERATING PROFIT EUR 23.5 (9.1) MILLION
Group operating profit for April-June 2010 improved 158.0% to EUR 23.5 (9.1)
million and the profit for the period to EUR 17.5 (7.4) million. Earnings per
share was up 108.7% to EUR 0.25 (0.12).
Net interest income remained at a good level of EUR 38.6 (39.4) million.
Net commission income improved by 40.8% to EUR 15.5 (11.0) million.
Net income from life insurance improved by 58.5% to EUR 2.6 (1.7) million.
Net income from non-life insurance rose 8.9% to EUR 5.9 (5.5) million.
Write-downs on credit were clearly lower than last year and stood at EUR 3.8
(16.2) million.
CEO JUSSI LAITINEN:
“The first half of this year has been good for us. Operating profit is strong
thanks to high net interest income, increased net commissions and insurance
income as well as a moderate increase of costs and lower credit losses. Our
market position is strengthened by a larger number of Customer Dialogues carried
out at the branch offices and improved profile in media. Despite the financial
unrest, our financial assets have increased in value from the beginning of the
year. I am confident that Aktia's result will develop favourably during the
second half of the year. ”
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| (EUR million) | 4-6/ | 4-6/ | ∆ | 1-6/ | 1-6/ | ∆ | 1-3/ | 1-12/ |
| | 2010 | 2009 | | 2010 | 2009 | | 2010 | 2009 |
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| Net interest | 38.6 | 39.4 | -2. | 77.5 | 71.9 | 7.7 | 38.9 | 152.2 |
| income | | | 1% | | | % | | |
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| Total operating | 66.2 | 62.4 | 6.2 | 127. | 110.2 | 15.5 | 61.0 | 233.1 |
| income | | | % | 2 | | % | | |
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| Operating profit | 27.4 | 25.3 | 8.1 | 49.4 | 35.1 | 40.8 | 22.1 | 78.7 |
| before write-downs | | | % | | | % | | |
| on credit | | | | | | | | |
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| Write-downs on | -3.8 | -16. | -76 | -8.4 | -17.8 | -52. | -4.6 | -31.7 |
| credit and other | | 2 | .3% | | | 7 % | | |
| commitments | | | | | | | | |
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| Operating profit | 23.5 | 9.1 | 158 | 41.0 | 17.3 | 137. | 17.5 | 47.0 |
| | | | .0% | | | 0 % | | |
--------------------------------------------------------------------------------
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| Cost-to-income | 0.54 | 0.52 | 4.5 | 0.55 | 0.60 | -8.4 | 0.57 | 0.57 |
| ratio | | | % | | | % | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.25 | 0.12 | 108 | 0.43 | 0.21 | 107. | 0.18 | 0.52 |
| (EPS), EUR | | | .7% | | | 0 % | | |
--------------------------------------------------------------------------------
| Equity per share | 6.89 | 5.51 | 25. | 6.89 | 5.51 | 25.0 | 6.86 | 6.52 |
| (NAV)1, EUR | | | 0% | | | % | | |
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| Return on equity | 14.2 | 8.0 | 78. | 12.4 | 7.3 | 70.3 | 10.5 | 8.7 |
| (ROE),% | | | 0% | | | % | | |
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| Capital adequacy | 16.5 | 14.5 | 13. | 16.5 | 14.5 | 13.8 | 16.2 | 15.9 |
| ratio1,% | | | 8% | | | % | | |
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| Tier 1 capital | 10.1 | 9.1 | 11. | 10.1 | 9.1 | 11.0 | 9.6 | 9.5 |
| ratio1,% | | | 0% | | | % | | |
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| Write-downs on | 0.05 | 0.27 | -81 | 0.13 | 0.31 | -57. | 0.08 | 0.51 |
| credit/total | | | .5% | | | 5 % | | |
| credit stock, % | | | | | | | | |
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1) At the end of the period
”Interim report January - June 2010” is a translation of the original report in
Swedish (”Delårsrapport 1.1-30.6.2010”). In case of discrepacies, the Swedish
version shall prevail.
profit
APRIL-JUNE 2010
The Group's operating profit in the second quarter was strong and amounted to
EUR 23.5 (9.1) million supported by a sustained high net interest income, a
clearly stronger net commission income and notably lower write-downs on credit.
income
During April - June the Group's total income increased 6.2% to EUR 66.2 (62.4)
million. Net interest income amounted to EUR 38.6 (39.4) million. Net income
from life insurance was EUR 2.6 (1.7) million and that from non-life insurance
EUR 5.9 (5.5) million. Net commission income increased 40.8% to EUR 15.5 (11.0)
million, the improvement mainly stemming from wealth management products.
costs
During April - June the costs stood at EUR 40.0 (37.4) million, showing a rise
by 6.8 %. The change originates mainly from higher IT costs and higher
reservations for the personnel fund and result related bonus payments.
The group common costs during April - June 2010 amounted to EUR 6.8 (9.3)
million.
segment overview
The segments' contribution to the Group's operating profit
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| (mn euro) | 4-6/ 2010 | 4-6/ 2009 | ∆ |
--------------------------------------------------------------------------------
| Banking Business | 20.6 | 9.1 | 126.4 % |
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| Asset Management | 1.1 | 0.4 | 148.2 % |
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| Life Insurance | 1.4 | -1.9 | - |
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| Non-Life Insurance | 0.6 | 0.6 | 3.1 % |
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| Miscellaneous | -1.2 | 0.6 | - |
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| Eliminations | 1.1 | 0.3 | 239.9 % |
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| Total | 23.5 | 9.1 | 158.0 % |
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The operating profit for the banking business, after the Group's common costs,
more than doubled to EUR 20.6 (9.1) million. Net interest income remained at a
high level of EUR 37.4 (38.1) million. Loans totalling EUR 3.7 (16.1) million
were written down. Credit write-downs were significantly lower than during the
corresponding period last year and also lower than during the first quarter this
year.
Asset management improved profitability and its operating profit after the
Group's common costs improved to EUR 1.1 (0.4) million. The market share of
mutual funds was 6.7 (7.0)%.
The life insurance business improved and contributed EUR 1.4 ( -1.9) million and
non-life insurance EUR 0.6 (0.6) million to the Group's operating profit.
Press and Analysts' Conference 12 August 2010 at 11 - 12 a.m.
Aktia's CEO Jussi Laitinen and Deputy Managing Director, CFO Stefan Björkman
will present the report and answer questions.
The presentation will be available at www.aktia.fi.
The conference will be held at Aktia's Head Office, Mannerheimintie 14 A, 7th
floor.
ACTIVITY IN JANUARY-JUNE 2010
BUSINESS ENVIRONMENT
The short interest rates remained at a low level throughout the period, though
rising somewhat during the second quarter. In this environment, Aktia's active
management of interest rate risk contributed in this environment greatly to the
group net interest income and result development.
The general revival of the Finnish economy as well as the low level of interest
rates resulted in clearly lower write-downs on credit compared to 2009.
During the second quarter of 2010, Finnish real estate prices were generally up
by 10.0% and in the Helsinki region even by 13.6%. Consumer price index
increased by 0.9% and unemployment stood at 8.8%. (Statistics Finland).
The decreasing trend in long interest rates continued which generated higher
values on the fixed rate instruments that are part of Aktia's investment
portfolios.
The Southern European economies caused worries and led to generally higher
demands on yields. This had a negative impact on the value of financial assets
and caused somewhat higher costs of refinancing.
The new initiatives for regulating banking and insurance businesses are still
under work, but will likely result in higher capital requirements, sharpened
competition for deposits, higher demands on long-term financing and eventually,
higher margins on credits.
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| Key figures | 2010E | 2009 | 2008 |
--------------------------------------------------------------------------------
| GDP growth | | | |
--------------------------------------------------------------------------------
| World | 3.8* | -1.3 | 3.0 |
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| EU | 1.2* | -4.0 | 0.9 |
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| Finland | 1.2* | -7.8 | 0.9 |
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| Consumer price index | | | |
--------------------------------------------------------------------------------
| EU | 1.3* | 0.3 | 3.3 |
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| Finland | 1.1* | 0.1 | 4.0 |
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| Other key ratios | | | |
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| Development of real value of housing | 7.0* | -0.3 | -2.5 |
| in Finland | | | |
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| OMX Helsinki 25 | - | 28.3 | -49.5 |
--------------------------------------------------------------------------------
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| Interest rates | | | |
--------------------------------------------------------------------------------
| ECB | 1.25* | 1.00 | 4.25 |
--------------------------------------------------------------------------------
| 10-y interest Ger (=benchmark) | 3.70 | 3.40 | 3.80 |
--------------------------------------------------------------------------------
| Euribor 12 months | 2.25* | 1.30 | 3.10 |
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| Euribor 3 months | 1.25* | 0.70 | 4.50 |
--------------------------------------------------------------------------------
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| Unemployment in Finland | 9.7* | 8.2 | 6.4 |
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| * At the end of the year (Aktia's chief economist's prognosis) |
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RATING
The international rating agency Moody's Investor Service kept its credit opinion
of Aktia Bank plc's credit rating unchanged in an update on 6 January 2010.
Aktia Bank plc's credit quality remained at the best classification, P-1, for
short-term borrowing. The credit rating for long-term borrowing is A1 and that
for financial strength is C. All ratings have 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.
PROFIT FOR THE PERIOD
The Group's operating profit improved by 137.0% to EUR 41.0 (17.3) million. The
profit for January - June 2010 increased by 130.8% to EUR 30.0 (13.0) million.
Income
The Group's total income increased by 15.5% between January and June to EUR
127.2 (110.2) million.
Net interest income rose to EUR 77.5 (71.9) million. The positive impact of
managing interest rate risks has made a significant contribution to the net
interest income's rigidity despite the low interest environment.
Both derivatives and fixed rate instruments are utilised by Aktia Bank to manage
interest rate risks. The derivatives used by Aktia Bank to limit its interest
rate risk improved net interest income by EUR 28.7 (9.1) million.
Net commission income increased by 40.7% to EUR 28.9 (20.6) million. Commission
income from mutual funds, asset management and brokering increased to EUR 18.5
(11.9) million. Card and payment services commissions improved somewhat to EUR
6.8 (5.7) million.
Net income from life insurance amounted to EUR 7.1 (7.0) million. A lower number
of claims and last year's cost reductions measures improved Aktia Non-Life
Insurance's net income to EUR 10.3 (7.4) million. Net income from the insurance
businesses includes insurance premiums written, net income from investment
activities, insurance claims paid and the change in technical provisions.
Other operating income was EUR 5.0 (1.8) 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 handled 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
The Group's operating expenses in January-June rose by 4.5% to EUR 78.8 (75.4)
million.
Higher reservations for personnel fund and other result related bonus payments
increased staff costs by 8.5% to EUR 42.5 (39.2) million. Other administration
expenses increased by 4.9% to EUR 23.4 (22.3) million of which the most part
consisted of costs for IT development. Total depreciation and write-downs on
tangible and intangible assets were unchanged at EUR 3.5 (3.5) million. Other
operating expenses fell somewhat to EUR 9.3 (10.6) million.
The cost reduction measures taken during 2009 have been effective and the
results will be fully visible during the latter part of this year.
Balance sheet and off-balance sheet commitments
The Group's balance sheet total increased by 2.9% from year-end and amounted to
EUR 10,867 (31.12.2009; 10,556) million. The increase in the balance sheet total
is largely due to growth in both deposit and mortgage stocks.
Borrowing
Aktia's liquidity was partly supported by a larger deposit stock from the public
and partly by the Mortgage Bank's issue.
Total deposits from the public, associations and credit institutions rose by
2.4% to EUR 4,868 (4,754) million, of which borrowing from the public and public
sector entities rose by 10.6% from the beginning of the year, totalling EUR
3,351 (3,029) million. A more active marketing boosted Aktia's market share in
deposits to 3.56 (3.35)%.
In March 2010, Aktia Real Estate Mortgage Bank plc issued a covered bond of EUR
500 million with a fixed interest rate and five-year maturity. Outstanding Aktia
Bank certificates of deposit amounted to EUR 394 million at the end of the
period and bonds issued by the Group totalled EUR 2,576 million, which
represents a decrease of EUR 146 million during 2010. The decrease is mainly
attributable to repurchase of Aktia Real Estate Mortgage Bank's bonds expiring
in August 2010. During the first half of the year, Aktia Bank issued new
subordinated debts and index-linked loans with a total value of EUR 43 million.
Aktia Bank has issued other long-term funding, (Schuldscheindarlehen) worth EUR
25 million as a part of preparations for new regulations concerning banks and
insurance companies (Basel III).
Lending
The Group's total lending to the public amounted to EUR 6,346 (6,061) million at
the end of the period, representing an increase of EUR 286 million. Excluding
the mortgages brokered by savings and local cooperative banks that the local
banks are committed to capitalise, the Group's lending increased by EUR 150
million (3.1%) from the beginning of the year.
Loans to private households (including mortgages brokered by local savings and
cooperative banks) accounted for EUR 5,191 (4,924) million or 81.8% of the total
loan stock. The housing loan stock totalled EUR 4,858 (4,598) million. In all,
housing loans increased by 5.6% from the beginning of the year. Aktia's market
share in housing loans was unchanged at 4.27%.
Corporate lending accounted for 12.3% of Aktia's loan stock. Total corporate
lending remained unchanged from year-end and amounted to EUR 781 (782) million
at the end of the period.
During the period, loans granted to housing associations increased by 7.6% to
EUR 311 (289) million and stood for 4.9% of Aktia's total loan stock.
Interest-bearing financial assets available for sale were EUR 3,281 (3,277)
million. Of interest-bearing financial assets, EUR 651 million relates to the
insurance companies' investment portfolios and EUR 2,630 million mainly to the
banking business' liquidity portfolio. These securities can be used as
collateral in central bank or in transactions with binding repurchase terms, so
called repurchase agreements.
Technical provisions
Life insurance technical provisions amounted to EUR 826 (805) million, of which
EUR 236 (210) million were unit-linked.
At the end of June, total technical provisions of non-life insurance stood at
EUR 132 (119) million.
Equity and commitments
Aktia Group's equity amounted to EUR 501 (466) million at the end of the period.
The Group's fund at fair value amounted to EUR 55 (43) million and showed an
improvement of EUR 12 million since the beginning of the year.
Off-balance sheet commitments increased by EUR 43 million from the year-end and
amounted to EUR 618 (575) million. This increase was largely due to unused
credit facilities (loan promises and limits).
Segment overview
Aktia plc has five business segments; Banking Business, Asset Management, Life
Insurance, Non-Life Insurance and Miscellaneous.
The segments' contribution to the Group's operating profit
--------------------------------------------------------------------------------
| (EUR million) | 1-6/2010 | 1-6/2009 | Change |
--------------------------------------------------------------------------------
| Banking Business | 38.0 | 19.1 | 98.7 % |
--------------------------------------------------------------------------------
| Asset Management | 2.0 | 0.1 | - |
--------------------------------------------------------------------------------
| Life Insurance | 4.3 | 0.2 | - |
--------------------------------------------------------------------------------
| Non-Life Insurance | 0.1 | -2.8 | - |
--------------------------------------------------------------------------------
| Miscellaneous | -3.1 | 2.8 | - |
--------------------------------------------------------------------------------
| Eliminations | -0.3 | -2.0 | 86.9 % |
--------------------------------------------------------------------------------
| Total | 41.0 | 17.3 | 137.0 % |
--------------------------------------------------------------------------------
Banking business
The banking business' contribution to the Group's operating profit amounted to
EUR 38.0 (19.1) million.
Operating income totalled EUR 95.1 (86.8) million. Net interest income increased
by 9.5% to EUR 75.4 (68.9) million and net commission income increased by 44.4%
and totalling EUR 21.7 (15.0) million. The improvement derives mainly from a
higher level of net commission income from mutual funds and insurance. Operating
expenses amounted to EUR 49.1 (50.1) million, of which staff costs accounted for
EUR 20.0 (18.1) million.
Aktia Bank ended the customers' bonus programme, launched in 2006, at the end of
June 2010. Instead, customers are compensated with concentration benefits. The
accumulated bonus points were actively utilised by customers during the last
months, and more than EUR 120,000 was donated to charities.
The banking business' customer base increased by 6,479 private customers (+2.4%)
during the first half year of 2010.
Sales activities are supported by the Aktia Dialogue concept whereby customers'
needs are mapped out and Aktia's whole service portfolio is presented. During
January - June, more than 21,000 Dialogues were carried out, which is expected
to increase sales in 2010.
The number of Internet agreements was up 4.4% from the beginning of the year and
amounted to 121,205.
Total savings by households increased by 9.2% from the beginning of the year to
EUR 3,382 (3,113) million. Of these, household deposits were EUR 2,590 (2,372)
million and household savings in mutual funds stood at EUR 792 (741) million.
Aktia's lending to private households, including the mortgages brokered by
Aktia, increased by 5.2% from the year-end to EUR 3,850 (3,658) million.
Mortgage loans brokered by Aktia amounted to EUR 1,493 (1,237) million. In
addition, the savings and local cooperative banks brokered mortgages amounting
to EUR 1,426 (1,171) million.
Aktia's market share in housing loans was unchanged at 4.27% year-on-year at the
end of June.
Corporate banking's net interest income was EUR 4.7 (4.1) million which is 15.3%
higher year-on-year. Net commission income from corporate banking was up 16.3%
to EUR 1.4 (1.2) million year -on - year.
The income of the real estate agency business were somewhat higher than last
year's level, standing at EUR 3.9 (3.7) million.
Asset Management
The Asset management's contribution to the Group's operating profit amounted to
EUR 2.0 (0.1) million.
Managed assets continued to develop favourably during January-June 2010. Aktia
provides a wide and competitive range of services in the capital market for both
private individuals and institutions. The Asset Management segment carries on to
focus on private banking operations and institutional investors this year.
Operating income, i.e. income after reversals to the Group's other units and
business partners, was EUR 10.1 (6.4) million. Operating expenses increased by
26.9% to EUR 8.1 (6.4) million, of which staff costs made up EUR 4.4 (3.6)
million. This is due to greater investment of resources in the private banking
business.
The volume of funds managed and brokered by Aktia was EUR 3,771 (3,786) million.
Aktia's market share of mutual funds was 6.7 (31.12.2009: 7.0)% at the end of
the period - this includes the share of brokered funds. The total market is
based on information from the Finnish Association of Mutual Funds.
The assets managed by Aktia Asset Management and Aktia Invest increased, thanks
to an upswing in the markets, and totalled EUR 6,301 (5,996) million. Assets
managed by Aktia Invest amounted to EUR 2,119 (2,140) million. The customer
assets of Private Banking totalled EUR 1,021 (926) million.
Life Insurance
The life insurance's contribution to the Group's operating profit amounted to
EUR 4.3 (0.2) million. The operating profit at Group level of the comparative
year was weakened by eliminations for financial assets sold or written down that
existed at the time of acquisition of the life insurance business in 2007.
Premiums written during January-June increased 40.1% and were EUR 50.3 (35.9)
million. The growth derives mainly from unit-linked savings and
investment-linked insurance. The allocation service for mutual funds launched in
2009, Aktia Profil, showed increasing volumes during the first half of the year.
Of the premium volume for savings and investment-linked insurance and pension
insurance, unit-linked insurance accounted for 78%.
Claims paid amounted to EUR 42.1 (43.8) million. Surrenders have decreased
following the declining effects of the financial crisis. The trend of increased
pensions paid has continued.
Operating costs, including common costs, totalled EUR 6.5 (6.9) million.
Cost-efficiency improved in the life insurance business as a result of
rationalisation measures taken in previous years. The expense ratio stood at
96.7% compared to 106.3% for the year before.
The return on the company's investments based on market value was 4.1 (0.9)%.
The derivatives used by the life insurance company to limit its interest rate
and currency risk improved operating profit by EUR 2.2 million.
Technical provisions totalled EUR 826 (805) million, of which provisions for
unit-linked insurance policies represented EUR 236 (210) million and
interest-linked provisions EUR 590 (595) million.
The company's solvency ratio improved to 16.6% compared to 14.4% at year-end.
Non-Life Insurance
The contribution of the non-life insurance business to the Group's operating
profit was EUR 0.1 (-2.8) million.
Premiums written for Aktia Non-Life Insurance rose by approximately 1% on the
corresponding period last year. This increase is attributable to private
customers. Premiums written before the reinsurers' share were EUR 44.3 (44.0)
million. Premiums earned for the period after the reinsurers' share and change
in provisions for unearned premiums amounted to EUR 30.6 (29.3) million. Claims
incurred fell to EUR 22.9 (23.5) million.
Operating costs were at the same level as last year and amounted to EUR 9.8
(9.7) million.
The combined ratio in January-June 2010 was 107.2% compared to 114.3% the
previous year. The lower combined ratio is largely explained by lower frequency
of loss and lower staff costs.
The return on the company's investments based on market value was 4.6 (-1.6)%.
Of the non-life insurance business' total technical provisions of EUR 123 (110)
million, provisions for outstanding claims stood at EUR 91 (89) million. The
market value of the company's investment portfolio was EUR 144 (135) million and
the company's risk carrying capacity was 76.6% compared to 72.4% at the end of
2009.
The integration of Aktia Non-Life Insurance's distribution channels into Aktia's
branch office network has continued to increase customer activity particularly
in the private customer sector.
Miscellaneous
In January-June 2010 the operating profit of the Miscellaneous segment was EUR
-3.1 (2.8) million.
Common costs
In accordance with the “One Aktia” strategy the Group support functions have
been unified and integrated. The integration process is continuing throughout
2010 and the largest expenses consist of marketing and IT costs.
Common costs were in total EUR 15.6 (18.0) million and were distributed as
banking business EUR 12.0 (15.5) million, asset management EUR 1.8 (1.0)
million, life insurance EUR 0.8 (0.7) million and non-life insurance EUR 1.0
(0.8) million.
Capital adequacy and
solvency
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.
The Bank Group includes Aktia Bank and Aktia Real Estate Mortgage Bank.
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)%.
The life insurance company's solvency margin amounted to EUR 100.7 (86.3)
million, where the minimum requirement is EUR 34.2 (34.0) million. The solvency
ratio amounted to 16.6 (14.4)%.
The non-life insurance company's solvency margin amounted to EUR 21.5 (18.4)
million, where the minimum requirement is EUR 13.1 (13.1) million. The solvency
capital was EUR 47.1 (43.6) million and a risk carrying capacity of 76.6 (72.4)%
was reported.
Capital adequacy for the conglomerate amounted to 164.5 (157.4)%. The statutory
minimum stipulated in the Act on the Supervision of Financial and Insurance
Conglomerates is 100%.
Write-downs of loan, guarantee and premium claims
Write-downs based on individual examination amounted to EUR -8.6 (30.6.2009;
-17.8) million during January-June 2010. Recoveries and reversals of previous
write-downs 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.
Of write-downs, EUR -8.1 (-16.9) million was accounted for by corporate loans,
which corresponds to 1.0 (2.1)% of the total corporate lending. 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.
Write-downs of household loans amounted to EUR -0.5 (-0.9) million of which EUR
-0.2 (-0.5) million was accounted for by unsecured consumer loans. The review
period's write-downs of household loans were marginal of total lending to
households. Total write-downs amounted to 0.1 (0.3)% of total lending.
In addition to individual write-downs, group write-downs were made for
households and small companies, where there were objective reasons to believe
there was uncertainty in relation to the repayment of claims in underlying
credit portfolios. Group write-downs for households and small companies remained
unchanged and amounted to EUR -7.4 (-7.4) million at the end of the period.
During the period, the non-life insurance company made write-downs for
outstanding premiums (credit losses) totalling EUR -0.4 (-0.3) 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.
Write-downs on financial assets during January - June 2010 had no impact on the
operating result, whereas these totalled EUR 20.7 million during the same period
in 2009.
Write-downs on financial assets
--------------------------------------------------------------------------------
| EUR million | 1-6/ 2010 | 1-6/ 2009 |
--------------------------------------------------------------------------------
| Interest-bearing securities | | |
--------------------------------------------------------------------------------
| Banking Business | - | -0.4 |
--------------------------------------------------------------------------------
| Life Insurance Business | 0.6 | -13.4 |
--------------------------------------------------------------------------------
| Non-Life Insurance Business | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares and participations | | |
--------------------------------------------------------------------------------
| Banking Business | - | - |
--------------------------------------------------------------------------------
| Life Insurance Business | -0.6 | -6.9 |
--------------------------------------------------------------------------------
| Non-Life Insurance Business | - | - |
--------------------------------------------------------------------------------
| Total | 0.0 | -20.7 |
--------------------------------------------------------------------------------
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 54.9 million after deferred tax compared
to EUR 43.3 million as at 31 December 2009.
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.
Specification of the fund at fair value
--------------------------------------------------------------------------------
| EUR million | 30.6.2010 | 31.12.2009 | Change EUR |
| | | | million |
--------------------------------------------------------------------------------
| Shares and participations | | | |
--------------------------------------------------------------------------------
| Banking Business | 1.0 | 3.7 | -2.7 |
--------------------------------------------------------------------------------
| Life Insurance Business | 0.6 | 0.2 | 0.3 |
--------------------------------------------------------------------------------
| Non-Life Insurance | 0.2 | -0.2 | 0.3 |
| business | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Direct interest-bearing | | | |
| securities | | | |
--------------------------------------------------------------------------------
| Banking Business | 2.7 | 13.3 | -10.6 |
--------------------------------------------------------------------------------
| Life Insurance Business | 15.2 | 5.6 | 9.6 |
--------------------------------------------------------------------------------
| Non-Life Insurance | 1.8 | -0.8 | 2.6 |
| business | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow hedging | 33.5 | 21.4 | 12.1 |
--------------------------------------------------------------------------------
| Fund at fair value, total | 54.9 | 43.3 | 11.6 |
--------------------------------------------------------------------------------
The Group's risk
management
Risk exposure
The banking business includes Retail Banking and the financing companies,
Corporate Banking, Treasury and Asset Management. Life insurance business is
carried out by Aktia Life Insurance, and non-life insurance business by Aktia
Non-Life Insurance.
Lending-related risks within banking
Credit stock maintained its good quality.
Credit stock increased in January-June 2010 by 4.7% or EUR 286 million,
totalling EUR 6,346 (6,061) million. As planned, this increase mainly occurred
within household financing and households' share of the total credit stock
amounted to EUR 5,191 (4,924) million or 81.8% at the end of June, or 86.7% 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.
Credit stock by sector
--------------------------------------------------------------------------------
| EUR million | 30.6.2010 | 31.12.2009 | Change | Share, % |
--------------------------------------------------------------------------------
| Corporate | 781 | 782 | -1 | 12.3 |
--------------------------------------------------------------------------------
| Housing | 311 | 289 | 22 | 4.9 |
| associations | | | | |
--------------------------------------------------------------------------------
| Public sector | 7 | 10 | -3 | 0.1 |
| entities | | | | |
--------------------------------------------------------------------------------
| Non-profit | 56 | 55 | 0 | 0.9 |
| organisations | | | | |
--------------------------------------------------------------------------------
| Households | 5,191 | 4,924 | 267 | 81.8 |
--------------------------------------------------------------------------------
| Total | 6,346 | 6,061 | 286 | 100.0 |
--------------------------------------------------------------------------------
Housing credit stock totalled EUR 4,858 (4,598) million, of which mortgages
granted by Aktia Real Estate Mortgage Bank plc made up EUR 2,752 (2,498)
million. In all, housing loans increased by 5.6% against year-end 2009, and the
growth derived mainly through Aktia Real Estate Mortgage Bank's lending where
the average balance in relation to collateral market value decreased to 56.7
(57.0)% compared to the corresponding period 2009.
New lending to companies remained moderate and corporate loans totalled EUR 781
(782) million. The proportion of the total credit stock accounted for by
corporate loans fell as planned to 12.3 (12.9)%.
Lending to the public secured by collateral objects or unsecured within the
framework of the financing companies Aktia Corporate Finance and Aktia Card &
Finance totalled EUR 97.9 (84.8) million, representing 1.5% of total lending.
The increase derived mainly through Aktia Corporate Finance.
Loans with payments 1-30 days overdue rose during from year-end to 3.05 (2.97)%
of credit stock, including off-balance sheet guarantee commitments. Loans with
payments 31-89 days overdue increased to 0.89 (0.76)%, totalling EUR 57 million.
Non-performing loans more than 90 days overdue, including claims on bankrupt
companies and loans for collection, totalled EUR 42 million, corresponding to
0.66 (0.56)% of the entire credit stock plus bank guarantees.
Undischarged debts by time overdue
(EUR million)
--------------------------------------------------------------------------------
| Days | 30.6.2010 | % of the | 31.12.2009 | % of the |
| | | credit | | credit |
| | | stock | | stock |
--------------------------------------------------------------------------------
| 1-30 | 195 | 3.05 | 181 | 2.97 |
--------------------------------------------------------------------------------
| of which | 131 | 2.04 | 114 | 1.86 |
| households | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 31-89 | 57 | 0.89 | 46 | 0.76 |
--------------------------------------------------------------------------------
| of which | 41 | 0.63 | 37 | 0.61 |
| households | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 90- | 42 | 0.66 | 34 | 0.56 |
--------------------------------------------------------------------------------
| of which | 22 | 0.34 | 18 | 0.30 |
| households | | | | |
--------------------------------------------------------------------------------
The Group's financing and liquidity risks
The financing and liquidity risks are dealt with at corporate legal level, and
there are no financing commitments from the Bank Group (Aktia Bank plc and its
subsidiaries) to the insurance companies.
In the banking business, financing 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 refinancing
requirements using existing liquidity. Following the Aktia Real Estate Mortgage
Bank's issue in March 2010, the Bank Group's liquidity buffer was good and
targets were clearly exceeded.
Within the life insurance business, liquidity risks are defined as the
availability of financing for paying out claims, savings sums and surrenders,
and pensions. The need for liquidity is satisfied mainly through the inward flow
of cash and a portfolio of investment certificates which has been adapted in
line with varying needs. Any unforeseen significant need for liquidity is taken
care of through the liquidity portfolio (primarily bonds).
Within the non-life insurance business, liquidity risks are defined as the
availability of financing for paying out claims and depend on the number of
claims and their scale. Liquidity risks are managed through the inward flow of
cash plus an adapted portfolio of bank deposits, investment certificates and
government bonds.
Counterparty risks
Counterparty risks within Group treasury
The banking business' liquidity portfolio, which comprises interest-bearing
securities and stood at EUR 2,691 (2,615) million as 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. Counter-party risks are
limited by the requirement for a high external rating (a minimum rating of A3 by
Moody's Investor Service or equivalent), and limits are set for maximum exposure
per 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 financial senior 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
--------------------------------------------------------------------------------
| | 30.6.2010 | 31.12.2009 |
--------------------------------------------------------------------------------
| EUR million | 2,691 | 2,615 |
--------------------------------------------------------------------------------
| Aaa | 58.4% | 55.1% |
--------------------------------------------------------------------------------
| 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% |
--------------------------------------------------------------------------------
| No rating | 3.0%* | 2.9%* |
--------------------------------------------------------------------------------
| Total | 100.0% | 100.0% |
--------------------------------------------------------------------------------
*) Of which 1.8% Finnish municipalities as at 30.6.2010 and 1.9% at 31.12.2009.
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
and are unrated 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.
Counterparty risks in the life
insurance business
Fixed income assets amounted to EUR 575 (570) million at the end of the period
which corresponds to 91 (88)% of investments. Counterparty risks arising in
connection with the life insurance company's investments are managed by the
requirement for at least an “investment grade” external rating (rating class
Baa3 from Moody's Investors Service or equivalent) and by rules concerning the
maximal exposure for each counterparty and asset category.
At the end of June 2010, 40 (47)% of direct interest rate investments were
receivables from public sector entities, 23 (23)% were corporate bonds and 37
(30)% were receivables from banks and covered bonds.
3.0 (1.7)% of direct interest rate investments did not meet the internal rating
requirements at the end of the period.
The net change in value amongst interest-rate instruments earlier written down
and booked was EUR 0.6 million. During the period, no write-downs were realised
as a result of the issuer's credit rating being lowered.
Rating distribution for life insurance business
--------------------------------------------------------------------------------
| | 30.6.2010 | 31.12.2009 |
--------------------------------------------------------------------------------
| EUR million | 575 | 570 |
--------------------------------------------------------------------------------
| Aaa | 56.6% | 52.5% |
--------------------------------------------------------------------------------
| Aa1-Aa3 | 13.3% | 12.2% |
--------------------------------------------------------------------------------
| A1-A3 | 15.3% | 18.3% |
--------------------------------------------------------------------------------
| Baa1-Baa3 | 8.2% | 11.4% |
--------------------------------------------------------------------------------
| Ba1-Ba3 | 2.6% | 1.4% |
--------------------------------------------------------------------------------
| B1-B3 | 0.2% | 0.0% |
--------------------------------------------------------------------------------
| Caa1 or lower | 0.2% | 0.3% |
--------------------------------------------------------------------------------
| No rating | 3.6% | 3.9% |
--------------------------------------------------------------------------------
| Total | 100.0% | 100.0% |
--------------------------------------------------------------------------------
Counterparty risks in the non-life
insurance business
The direct interest rate investments totalled EUR 115 (104) million at the end
of June 2010 corresponding to 76 (75)% of investments. Counterparty risks
arising in connection with the non-life insurance company's investments are
managed by the requirement for at least an “investment grade” external rating
(rating class Baa3 from Moody's Investors Service or equivalent) and by rules
concerning the maximal exposure for each counterparty and asset category.
At the end of June, 61 (64)% of the direct interest rate investments were
receivables from public sector entities, 12 (10)% were corporate bonds and 28
(36)% were receivables from banks and covered bonds. During the period no
write-downs were realised.
Rating distribution for non-life insurance
business
--------------------------------------------------------------------------------
| | 30.6.2010 | 31.12.2009 |
--------------------------------------------------------------------------------
| EUR million | 115 | 104 |
--------------------------------------------------------------------------------
| Aaa | 56.9% | 58.4% |
--------------------------------------------------------------------------------
| Aa1-Aa3 | 19.9% | 16.7% |
--------------------------------------------------------------------------------
| A1-A3 | 11.8% | 12.5% |
--------------------------------------------------------------------------------
| Baa1-Baa3 | 2.8% | 11.4% |
--------------------------------------------------------------------------------
| Ba1-Ba3 | 7.4% | 0.5% |
--------------------------------------------------------------------------------
| B1-B3 | 0.0% | 0.0% |
--------------------------------------------------------------------------------
| Caa1 or lower | 0.0% | 0.0% |
--------------------------------------------------------------------------------
| No rating | 1.3% | 0.4% |
--------------------------------------------------------------------------------
| Total | 100.0% | 100.0% |
--------------------------------------------------------------------------------
Market valuation of
financial assets
Aktia pursues no trading activities. Both the financial assets within the
banking business and the investment assets within the life and non-life
insurance businesses 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.
Structural interest rate risk in 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 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 period,
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 in the banking business
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 after the deduction of deferred tax. At the end of June 2010,
the valuation difference in interest-bearing securities was positive at EUR 2.7
(13.3) million.
Other market risks in the banking business and parent company
No equity trading or investments in real estate are carried out by the banking
business or in the parent company.
At the end of the period, remaining real estate assets totalled EUR 3.5 (3.4)
million. Investments in shares which are necessary or strategic to the business
totalled EUR 31.6 (30.6) million. At the end of the period, the fund at fair
value related to the above strategic share investments amounted to EUR 1.0 (3.7)
million after the deduction of deferred tax.
Investment risks in the life insurance business
The policyholder bears the investment risk of investments that provide cover for
unit-linked insurance policies. These investments are valuated on an ongoing
basis at fair value and any changes in value are posted to technical provisions
for unit-linked insurance policies.
The investment portfolio covering technical provisions is measured on an ongoing
basis at market value. During the reporting period, write-downs affecting profit
were posted which were attributable to shares and participations totalling EUR
-0.6 (30.6.2009; -6.9) million. The net change in the fund at fair value for
shares posted during the period totalled EUR 0.6 (0.2) million after the
deduction of deferred tax.
The net change in value of the fund at fair value with regard to
interest-bearing securities was EUR 9.6 million after the deduction of deferred
tax. At the end of June, the valuation difference of interest-bearing securities
stood at EUR 15.2 (5.6) million.
Allocation of holdings in the life insurance company's investment portfolio
--------------------------------------------------------------------------------
| EUR million | 30.6.2010 | 31.12.2009 |
--------------------------------------------------------------------------------
| Shares | 0.0 | 0.0% | 0.3 | 0.0% |
--------------------------------------------------------------------------------
| Bonds | 633.5 | 90.8% | 609.7 | 88.0% |
--------------------------------------------------------------------------------
| Money market | 7.9 | 1.1% | 24.0 | 3.5% |
--------------------------------------------------------------------------------
| Real estate | 37.2 | 5.3% | 38.0 | 5.5% |
--------------------------------------------------------------------------------
| Other | 19.0 | 2.7% | 20.7 | 3.0% |
--------------------------------------------------------------------------------
| Total | 697.5 | 100.0% | 692.6 | 100.0% |
--------------------------------------------------------------------------------
Underwriting risks in the life insurance business
Underwriting risks occur where future claim payments become higher than
expected. Taking into account the provision of reinsurance cover, the insurance
business has been relatively stable. The provision of reinsurance cover for
different insurance portfolios reduces the volatility of financial results and
eliminates risks that could affect the company's future business opportunities.
Investment risks in the non-life
insurance business
The investment portfolio covering total technical provisions is measured on an
ongoing basis at market value. The investment plan is to synchronise investments
and cash flow of technical provisions. For the time being, the investment plan
does not include equity investments.
The net change posted in value of the fund at fair value with regard to
interest-bearing securities was EUR 2.6 million after the deduction of deferred
tax. At the end of June, the valuation difference of interest-bearing securities
stood at EUR 1.8 (-0.8) million.
Allocation of holdings in the non-life insurance company's investment portfolio
--------------------------------------------------------------------------------
| EUR million | 30.6.2010 | 31.12.2009 |
--------------------------------------------------------------------------------
| Shares | 0.0 | 0.0% | 0.0 | 0.0% |
--------------------------------------------------------------------------------
| Bonds | 117.7 | 76.5% | 105.9 | 74.4% |
--------------------------------------------------------------------------------
| Money market | 8.3 | 5.4% | 6.3 | 4.4% |
--------------------------------------------------------------------------------
| Real estate | 26.0 | 16.9% | 28.2 | 19.8% |
--------------------------------------------------------------------------------
| Other | 1.9 | 1.2% | 2.0 | 1.4% |
--------------------------------------------------------------------------------
| Total | 153.9 | 100.0% | 142.4 | 100.0% |
--------------------------------------------------------------------------------
Underwriting risks in the non-life insurance business
Underwriting risks occur where future claim payments become higher than
expected. Taking into account the provision of reinsurance cover, the insurance
business has been relatively stable. The provision of reinsurance cover for
different insurance portfolios reduces the volatility of financial results and
eliminates risks that could affect the company's future business opportunities.
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 marketplace suffers.
No events regarded as operational risks causing significant financial losses
occurred in January-June 2010.
Events concerning close relations
Close relations refers to Aktia plc's key persons in management positions, close
family members and companies that are under dominating influence of a key person
in management position. The group's key persons refer to Aktia plc's Members of
the Board of Supervisors and the Board of Directors, Managing Director and
Deputy Managing Director.
Aktia plc received an extraordinary dividend of EUR 30.0 million from Aktia Bank
plc. The funds were reinvested to Aktia Bank plc through a capital loan.
No significant changes concerning close relations occurred during the period.
Events during the reporting period
Aktia plc published a positive profit warning 22 June 2010 upgrading the
prognosis for 2010.
Aktia 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.
Events after the end of the reporting period
No events to report.
Personnel
From the beginning of the year, converted into full-time employees, the number
of people employed by the Group declined by 24 persons to 1,183 and by 33 from
the same period last year (30.6.2009: 1,216). The average number of full-time
employees during the period was 1,195 (31.12.2009; 1,213).
Personnel fund and management's incentive programme for 2010
Aktia Abp's Board of Directors has confirmed the following calculation method
for the profit sharing provision to the personnel fund as of 2010. The profit
sharing provision is based on 10% of the Group operating profit exceeding EUR 30
million. The profit sharing provision cannot exceed EUR 3 million. The CEO and
other members of the Group's Executive Committee are also members of the Group's
personnel fund.
A bonus system has been set up for the CEO and the other members of the Group's
Executive Committee which is based on the Group's financial results and annually
defined targets at company and individual level. The individual bonus to the
Executive Committee members cannot exceed the equivalent of three months' salary
each year.
For 2010, the Executive Committee is also included in a share-based incentive
scheme that offers the members of the Executive Committee the opportunity to
acquire a maximum of 55,833 shares. The outcome is dependent on separate
targets, the performance conditions of which have been decided on by the Board
of Directors.
decisions taken at the annual general meeting
The Annual General Meeting of Aktia plc held on 25 March 2010 adopted the
financial statements of the parent company and the consolidated financial
statements and discharged the members of the Board of Supervisors, the members
of the Board of Directors, the Managing Director and his deputy from liability.
In accordance with the proposal of the Board of Directors, the Annual General
Meeting decided to distribute a dividend of EUR 0.24 per share totalling EUR
15.9 million for the financial period 1 January - 31 December 2009. The record
date for the dividends was 30 March 2010 and the dividends were paid out on 8
April 2010.
Meeting established the number of members on the Board of Supervisors as
thirty-four.
The members of the Board of Supervisors Sten Eklundh, Agneta Eriksson, Peter
Heinström, Erik Karls, Clas Nyberg, Gunvor Sarelin-Sjöblom, Jan-Erik Stenman,
Maj-Britt Vääriskoski, Lars Wallin, Bo Gustav Wilson and Ann-Marie Åberg, who
were all due to step down, were elected members of the Board of Supervisors for
a term of three years.
The Annual General Meeting established the number of auditors as one.
PricewaterhouseCoopers Ab was re-appointed as auditor for the financial year
starting on 1 January 2010, with Jan Holmberg, APA, as the auditor in charge.
The Annual General Meeting approved the proposals of the Board of Director
concerning authorisation to issue shares, as well as authorisation to divest
shares. The Annual General Meeting also approved the proposal of the Board of
Directors concerning donations for philanthropic purposes and the proposal
regarding the appointment of a nomination committee with the task of preparing
election matters for the Annual General Meeting.
The proposal of the Finnish Shareholders Association to discontinue the Board of
Supervisors was dropped as the author of the proposal did not demand a vote.
All proposals mentioned above are included in the Summons to the AGM published
on Aktia plc's website www.aktia.fi.
Aktia's executive committee
Aktia's Executive Committee comprises CEO Jussi Laitinen, Deputy Managing
Director Jarl Sved, Deputy Managing Director Stefan Björkman, Deputy Managing
Director Robert Sergelius, Director Barbro Karhulahti, Director Taru Narvanmaa,
Director Anders Nordman, Director Gösta Råholm and Director Olav Uppgård and
Marit Leinonen, the staff representative.
Changes in Group
structure
During autumn 2009, the merger of Aktia's real estate agency business took
place. With effect from 1 January 2010, the business operates as Aktia
Fastighetsförmed-ling Ab and Magnus Nyman, AFM Ab.
Aktia Invest was incorporated and personnel now holds 30% and the remaining 70%
by Aktia Bank plc.
Aktia Yritysrahoitus Oy (Corporate Finance) has become a fully owned subsidiary.
Share capital and ownership
At the end of June 2010, the paid-up share capital of Aktia plc as entered in
the Finnish Trade Register was EUR 93,873,816, divided into 46,936,908 series A
shares and 20,050,850 series R shares. The number of shareholders at the end of
the period was 49,150.
Of the merger compensation related to the merger with Veritas Non-Life Insurance
of 6,800,000 shares, a further 17,787 new series A shares were registered on
book-entry accounts during the April -June period. The inspection and
registration of outstanding shares continues. The number of unregistered shares
at the end of the period under review was 950,629 or 1.4% of all shares.
Aktia's holding of treasury shares amounted to 495,354 shares, corresponding to
0.7% of all shares.
At the Extraordinary General Meeting of 21 December 2006, the Board of Directors
was authorised to issue a maximum of 1,000,000 shares in order to create a
share-based incentive scheme for key personnel in the Group.
--------------------------------------------------------------------------------
| Largest 20 owners | A | R | Shares | Of | Votes | Of | Chang |
| Ownership per 30 | share | share | | shar | | vote | e |
| June 2010 | s | s | | es % | | s % | 4-6/2 |
| | | | | | | | 010 |
--------------------------------------------------------------------------------
| Helsinki Savings | 7,604 | 3,802 | 11,406 | 17.0 | 83,645, | 18.6 | |
| Bank | ,111 | ,048 | ,159 | 3 | 071 | 7 | |
| Foundation* | | | | | | | |
--------------------------------------------------------------------------------
| Life Annuity | 4,648 | 2,066 | 6,714, | 10.0 | 45,970, | 10.2 | |
| Institution | ,114 | ,106 | 220 | 2 | 234 | 6 | |
| Hereditas* | | | | | | | |
--------------------------------------------------------------------------------
| Pension Insurance | 4,027 | 2,134 | 6,161, | 9.20 | 46,715, | 10.4 | -270, |
| Company Veritas | ,469 | ,397 | 866 | | 409 | 3 | 000 |
--------------------------------------------------------------------------------
| Espoo-Kauniainen | 2,146 | 1,191 | 3,338, | 4.98 | 25,975, | 5.80 | -191, |
| Savings Bank | ,585 | ,458 | 043 | | 745 | | 834 |
| Foundation* | | | | | | | |
--------------------------------------------------------------------------------
| Oy Hammarén & Co Ab | 1,890 | 945,0 | 2,835, | 4.23 | 20,790, | 4.64 | |
| | ,000 | 00 | 000 | | 000 | | |
--------------------------------------------------------------------------------
| Svenska | 1,681 | 789,2 | 2,471, | 3.69 | 17,466, | 3.90 | |
| Litteratursällskape | ,786 | 29 | 015 | | 366 | | |
| t i Finland rf* | | | | | | | |
--------------------------------------------------------------------------------
| Åbo Academy | 1,495 | 751,0 | 2,246, | 3.35 | 16,515, | 3.69 | |
| Foundation* | ,640 | 00 | 640 | | 640 | | |
--------------------------------------------------------------------------------
| Aktia foundation in | 1,194 | 915,0 | 2,109, | 3.15 | 19,495, | 4.35 | -66,0 |
| Vantaa | ,900 | 12 | 912 | | 140 | | 00 |
--------------------------------------------------------------------------------
| Aktia | 1,303 | 651,5 | 1,954, | 2.92 | 14,333, | 3.20 | |
| Foundation | ,050 | 25 | 575 | | 550 | | |
| in Porvoo* | | | | | | | |
--------------------------------------------------------------------------------
| Aktia Foundation in | 978,5 | 547,2 | 1,525, | 2.28 | 11,923, | 2.66 | |
| Vaasa* | 25 | 62 | 787 | | 765 | | |
--------------------------------------------------------------------------------
| Kirkkonummi Savings | 876,5 | 438,2 | 1,314, | 1.96 | 9,641,8 | 2.15 | |
| Bank | 29 | 64 | 793 | | 09 | | |
| Foundation* | | | | | | | |
--------------------------------------------------------------------------------
| Karjaa-Pohja | 787,3 | 393,6 | 1,181, | 1.76 | 8,660,8 | 1.93 | |
| Savings Bank | 50 | 75 | 025 | | 50 | | |
| Foundation* | | | | | | | |
--------------------------------------------------------------------------------
| Föreningen | 670,0 | 377,9 | 1,047, | 1.56 | 8,229,0 | 1.84 | |
| Konstsamfundet rf* | 40 | 51 | 991 | | 60 | | |
--------------------------------------------------------------------------------
| Inkoo Savings Bank | 646,2 | 323,1 | 969,35 | 1.45 | 7,108,5 | 1.59 | |
| Foundation* | 36 | 18 | 4 | | 96 | | |
--------------------------------------------------------------------------------
| Ab Kelonia Oy* | 549,4 | 308,6 | 858,07 | 1.28 | 6,722,6 | 1.50 | |
| | 17 | 62 | 9 | | 57 | | |
--------------------------------------------------------------------------------
| Sipoo Savings Bank | 462,0 | 232,0 | 694,00 | 1.04 | 5,102,0 | 1.14 | |
| Foundation* | 02 | 01 | 3 | | 22 | | |
--------------------------------------------------------------------------------
| Siuntio Savings | 454,3 | 227,1 | 681,56 | 1.02 | 4,998,1 | 1.12 | |
| Bank Foundation* | 77 | 88 | 5 | | 37 | | |
--------------------------------------------------------------------------------
| Aktia Foundation | 340,1 | 177,6 | 517,73 | 0.77 | 3,892,1 | 0.87 | 1,638 |
| in Malax* | 38 | 00 | 8 | | 38 | | |
--------------------------------------------------------------------------------
| Tenhola Savings | 340,0 | 171,5 | 511,53 | 0.76 | 3,770,2 | 0.84 | 1,500 |
| Bank Foundation* | 21 | 10 | 1 | | 21 | | |
--------------------------------------------------------------------------------
| Aktia Foundation in | 323,3 | 175,8 | 499,26 | 0.75 | 3,841,1 | 0.86 | |
| Korsholm* | 76 | 88 | 4 | | 36 | | |
--------------------------------------------------------------------------------
| 20 largest owners | 32,41 | 16,61 | 49,038 | 73.2 | 364,797 | 81.4 | |
| in total | 9,666 | 8,894 | ,560 | 1 | ,546 | 4 | |
--------------------------------------------------------------------------------
| Others | 14,51 | 3,431 | 17,949 | 26,7 | 83,156, | 18,5 | |
| | 7,242 | ,956 | ,198 | 9 | 362 | 6 | |
--------------------------------------------------------------------------------
| Total | 46,93 | 20,05 | 66,987 | 100. | 447,953 | 100. | |
| | 6,908 | 0,850 | ,758 | 0 | ,908 | 0 | |
--------------------------------------------------------------------------------
*) Part in shareholders' agreement concerning the parties' mutual pre-emptive
right to R shares. This agreement covers 72% of R shares and 22% of the total
number of shares.
Shares
Aktia's trading codes are AKTAV for A series shares and AKTRV for R series
shares. Aktia shares are classified as belonging to the ‘Finance, regional
banks' sector in keeping with the GICS index.
As at 30 June 2010, the last day of trading, the closing price for an A series
share was EUR 6.75 and for an R series share EUR 8.20, indicating a market value
of approx. EUR 481 million for Aktia. Since the beginning of 2010, the yield on
Aktia A series shares has been -13.13% and -11.83% for R shares. The OMX Nordic
Banks and OMX Nordic Financials indices have performed -3.34% respectively
-1.03% during the same period.
--------------------------------------------------------------------------------
| Share price development 1 Jan - 30 June 2010 | Yield |
--------------------------------------------------------------------------------
| Aktia A | -13.13 % |
--------------------------------------------------------------------------------
| Aktia R | -11.83% |
--------------------------------------------------------------------------------
| OMX Nordic Banks | -3.34 % |
--------------------------------------------------------------------------------
| OMX Nordic Financials | -1.03 % |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share information | A share | R share |
--------------------------------------------------------------------------------
| Votes /share | 1 | 20 |
--------------------------------------------------------------------------------
| Market | NASDAQ OMX Helsinki | NASDAQ OMX Helsinki |
--------------------------------------------------------------------------------
| Listed | 29.9.2009 | 29.9.2009 |
--------------------------------------------------------------------------------
| ISIN | FI0009004733 | FI0009015911 |
--------------------------------------------------------------------------------
| Code | AKTAV (OMX) | AKTRV (OMX) |
--------------------------------------------------------------------------------
| List | OMXH Mid Caps | OMXH Mid Caps |
--------------------------------------------------------------------------------
| Sector | Regional Banks | Regional Banks |
--------------------------------------------------------------------------------
| Sector ID | 40101015 | 40101015 |
--------------------------------------------------------------------------------
| Number of shares | 46,936,908 | 20,050,850 |
--------------------------------------------------------------------------------
In January-June 2010, the average daily turnover of A shares was EUR 139,815 or
19,662 shares. The average daily turnover of R shares was EUR 15,312 or 1,817
shares.
Aktia has entered into a market-making or LP (Liquidity Providing) agreement
with Handelsbanken in order to improve liquidity in A shares, which should
encourage transactions by small shareholders. The agreement entered into force
on 4 January 2010.
Calendar
--------------------------------------------------------------------------------
| 2010 | |
--------------------------------------------------------------------------------
| Silent period | 14 Oct - 4 Nov 2010 |
--------------------------------------------------------------------------------
| Interim report Jan-Sept | 4 Nov 2010 |
--------------------------------------------------------------------------------
Outlook and risks for 2010 (updated)
Aktia 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
expects write-downs on credit to be lower in 2010 than in 2009)
In 2010, Aktia'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 is endeavouring to grow above the
market, particularly in the sectors of retail customers and small companies.
Aktia'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, real estate
agency and asset management services.
Change in interest rate level, yield curves and credit margins are hard to
predict and can affect Aktia's interest rate margins and therefore
profitability. Aktia pursuing effective management of interest rate risks.
Any future write-downs of loans in Aktia's loan portfolio could be due to many
factors, the most important of which are the general economic situation, the
interest rate level, the level of unemployment and changes in house prices.
Aktia expects write-downs on credit to be clearly lower in 2010 than in 2009.
(Previous: Aktia 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's
refinancing activities. Like other banks, Aktia relies on deposits from
households in order to service some of its liquidity needs.
The market value of Aktia's financial and other assets can change as a result
of, among other things, a requirement for higher returns among investors.
The financial crisis has resulted in many new initiatives for regulating banking
and insurance businesses, which has brought uncertainty concerning future
capital requirements. A change in capital requirements could actualise both
capitalisation needs and need for changes in Aktia Group's structure.
Key figures
--------------------------------------------------------------------------------
| EUR million | 1-6 | 1-6 | ∆ | 4-6/ | 1-3/ | 10-1 | 7-9/ | 4-6/ |
| | / | / | | 2010 | 2010 | 2/ | 2009 | 2009 |
| | 201 | 200 | | | | 2009 | | |
| | 0 | 9 | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 0.4 | 0.2 | 107.0 | 0.25 | 0.18 | 0.10 | 0.21 | 0.12 |
| (EPS), EUR | 3 | 1 | % | | | | | |
--------------------------------------------------------------------------------
| Equity per share | 6.8 | 5.5 | 25.0 | 6.89 | 6.86 | 6.52 | 6.51 | 5.51 |
| (NAV), EUR1 | 9 | 1 | % | | | | | |
--------------------------------------------------------------------------------
| Return on equity | 12. | 7.3 | 70.3 | 14.2 | 10.5 | 5.9 | 13.2 | 8.0 |
| (ROE), % | 4 | | % | | | | | |
--------------------------------------------------------------------------------
| Total earnings per | 0.6 | 0.7 | -13.6 | 0.02 | 0.58 | 0.01 | 1.00 | 0.68 |
| share, EUR | 1 | 0 | % | | | | | |
--------------------------------------------------------------------------------
| Capital adequacy | 164 | 143 | 15.0 | 164. | 162. | 157. | 155. | 143.1 |
| ratio, % (finance | .5 | .1 | % | 5 | 4 | 4 | 2 | |
| and insurance | | | | | | | | |
| conglomerate)1 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of | 66. | 66. | 0.0 % | 66.5 | 66.5 | 66.4 | 66.4 | 66.4 |
| shares, million2 | 5 | 4 | | | | | | |
--------------------------------------------------------------------------------
| Number of shares at | 66. | 66. | 0.0 % | 66.5 | 66.5 | 66.5 | 66.5 | 66.5 |
| the end of the | 5 | 5 | | | | | | |
| period1, million | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel (FTEs), | 1,1 | 1,2 | -1.5 | 1,19 | 1,20 | 1,21 | 1,21 | 1,213 |
| average number of | 95 | 13 | % | 5 | 2 | 3 | 2 | |
| employees from the | | | | | | | | |
| beginning of the | | | | | | | | |
| financial year1 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Banking Business | | | | | | | | |
| (incl. Private | | | | | | | | |
| Banking) | | | | | | | | |
--------------------------------------------------------------------------------
| Cost-to-income ratio | 0.5 | 0.6 | -8.4 | 0.54 | 0.57 | 0.57 | 0.51 | 0.52 |
| | 5 | 0 | % | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Borrowing from the | 3,3 | 3,0 | 8.8 % | 3,35 | 3,18 | 3,02 | 3,08 | 3,079 |
| public1 | 51. | 79. | | 1.4 | 0.2 | 9.2 | 2.0 | .9 |
| | 4 | 9 | | | | | | |
--------------------------------------------------------------------------------
| Lending to the | 6,3 | 5,8 | 9.0 % | 6,34 | 6,17 | 6,06 | 5,94 | 5,820 |
| public1 | 46. | 20. | | 6.4 | 6.5 | 0.8 | 6.4 | .0 |
| | 4 | 0 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital adequacy | 16. | 14. | 13.8 | 16.5 | 16.2 | 15.9 | 15.4 | 14.5 |
| ratio, % 1 | 5 | 5 | % | | | | | |
--------------------------------------------------------------------------------
| Tier 1 capital | 10. | 9.1 | 11.0 | 10.1 | 9.6 | 9.5 | 9.1 | 9.1 |
| ratio, % 1 | 1 | | % | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted | 3,5 | 3,3 | 4.7 % | 3,55 | 3,52 | 3,46 | 3,49 | 3,394 |
| commitments 1 | 55. | 94. | | 5.3 | 7.2 | 0.2 | 3.4 | .8 |
| | 3 | 8 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Asset Management | | | | | | | | |
--------------------------------------------------------------------------------
| Mutual fund volume1 | 3,7 | 2,9 | 28.8 | 3,77 | 4,09 | 3,78 | 3,48 | 2,927 |
| | 70. | 27. | % | 0.9 | 6.1 | 6.2 | 8.0 | .4 |
| | 9 | 4 | | | | | | |
--------------------------------------------------------------------------------
| Managed and brokered | 6,3 | 5,0 | 24.0 | 6,30 | 6,38 | 5,99 | 5,68 | 5,082 |
| assets1 | 00. | 82. | % | 0.8 | 2.3 | 5.6 | 0.5 | .9 |
| | 8 | 9 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Life Insurance | | | | | | | | |
--------------------------------------------------------------------------------
| Premiums written | 50. | 36. | 40.2 | 24.4 | 26.1 | 27.2 | 17.7 | 15.4 |
| before reinsurers' | 5 | 0 | % | | | | | |
| share | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Expense ratio, %2 | 96. | 106 | -9.0 | 96.7 | 104. | 100. | 101. | 106.3 |
| | 7 | .3 | % | | 4 | 7 | 5 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Solvency margin1 | 100 | 65. | 53.5% | 100. | 97.0 | 86.3 | 85.0 | 65.6 |
| | .7 | 3 | | 7 | | | | |
--------------------------------------------------------------------------------
| Solvency ratio, %2 | 16. | 11. | 48.2 | 16.6 | 16.0 | 14.4 | 14.2 | 11.2 |
| | 6 | 2 | % | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Investments at fair | 909 | 813 | 11.8 | 909. | 908. | 867. | 849. | 813.1 |
| value1 | .2 | .1 | % | 2 | 4 | 7 | 7 | |
--------------------------------------------------------------------------------
| Technical provisions | 589 | 599 | -1.6 | 589. | 593. | 595. | 596. | 599.1 |
| for interest-linked | .6 | .1 | % | 6 | 4 | 0 | 6 | |
| insurances1 | | | | | | | | |
--------------------------------------------------------------------------------
| Technical provisions | 236 | 168 | 40.1 | 236. | 233. | 210. | 190. | 168.6 |
| for unit-linked | .1 | .6 | % | 1 | 4 | 1 | 5 | |
| insurances1 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-Life Insurance | | | | | | | | |
--------------------------------------------------------------------------------
| Premiums written | 44. | 44. | 0.8 % | 14.7 | 29.6 | 12.0 | 10.3 | 15.2 |
| before reinsurers' | 3 | 0 | | | | | | |
| share | | | | | | | | |
--------------------------------------------------------------------------------
| Premiums earned | 30. | 29. | 4.6 % | 15.9 | 14.8 | 15.0 | 16.2 | 15.5 |
| | 6 | 3 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Expense ratio, % 2 | 25. | 26. | -4.2 | 25.0 | 24.5 | 27.9 | 26.6 | 26.1 |
| | 0 | 1 | % | | | | | |
--------------------------------------------------------------------------------
| Loss ratio, % 2 | 82. | 88. | -6.8 | 82.2 | 87.1 | 91.1 | 85.8 | 88.2 |
| | 2 | 2 | % | | | | | |
--------------------------------------------------------------------------------
| Combined ratio, % 2 | 107 | 114 | -6.2 | 107. | 111. | 119. | 112. | 114.3 |
| | .2 | .3 | % | 2 | 5 | 0 | 3 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Technical provisions | 131 | 127 | 3.1 % | 131. | 134. | 119. | 121. | 127.6 |
| before reinsurers' | .6 | .6 | | 6 | 0 | 3 | 1 | |
| share1 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Solvency capital1 | 47. | 46. | 0.4 % | 47.1 | 45.2 | 43.6 | 50.2 | 46.9 |
| | 1 | 9 | | | | | | |
--------------------------------------------------------------------------------
| Solvency ratio of | 39. | 42. | -7.0 | 39.6 | 38.1 | 41.8 | 47.7 | 42.6 |
| technical | 6 | 6 | % | | | | | |
| provisions, %1 | | | | | | | | |
--------------------------------------------------------------------------------
| Risk carrying | 76. | 78. | -2.9 | 76.6 | 74.0 | 72.4 | 83.6 | 78.9 |
| capacity, %1 | 6 | 9 | % | | | | | |
--------------------------------------------------------------------------------
1) At the end of the period, 2) Cumulative from the beginning of the year
Basis of calculation for key figures can be found in Aktia plc:s annual report,
page 28
Consolidated income statement
--------------------------------------------------------------------------------
| (EUR million) | 1-6/201 | 1-6/2009 | ∆ | 1-12/200 |
| | 0 | | | 9 |
--------------------------------------------------------------------------------
| Net interest income | 77.5 | 71.9 | 7.7 % | 152.2 |
--------------------------------------------------------------------------------
| Dividends | 1.1 | 0.6 | 80.8 % | 0.6 |
--------------------------------------------------------------------------------
| Commission income | 36.8 | 27.6 | 33.6 % | 60.7 |
--------------------------------------------------------------------------------
| Commission expenses | -7.9 | -7.0 | -12.5 % | -14.3 |
--------------------------------------------------------------------------------
| Net commission income | 28.9 | 20.6 | 40.7 % | 46.3 |
--------------------------------------------------------------------------------
| Net income from life-insurance | 7.1 | 7.0 | 1.4 % | 14.0 |
--------------------------------------------------------------------------------
| Net income from non-life | 10.3 | 7.4 | 39.1 % | 15.2 |
| insurance | | | | |
--------------------------------------------------------------------------------
| Net income from financial | -3.1 | 0.6 | - | 0.8 |
| transactions | | | | |
--------------------------------------------------------------------------------
| Net income from investment | 0.3 | 0.2 | 44.3 % | 0.4 |
| properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | 5.0 | 1.8 | 174.4 % | 3.6 |
--------------------------------------------------------------------------------
| Total operating income | 127.2 | 110.2 | 15.5 % | 233.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Staff costs | -42.5 | -39.2 | 8.5 % | -79.2 |
--------------------------------------------------------------------------------
| Other administrative expenses | -23.4 | -22.3 | 4.9 % | -44.8 |
--------------------------------------------------------------------------------
| Negative goodwill recorded as | - | 0.1 | - | 0.1 |
| income | | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible and | -3.5 | -3.5 | 2.6 % | -6.9 |
| intangible assets | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -9.3 | -10.6 | -11.8 % | -23.4 |
--------------------------------------------------------------------------------
| Total operating expenses | -78.8 | -75.4 | 4.5 % | -154.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairment and reversal of | - | -0.2 | - | -0.6 |
| impairment on tangible and | | | | |
| intangible assets | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and other | -8.4 | -17.8 | -52.7 % | -31.7 |
| commitments | | | | |
--------------------------------------------------------------------------------
| Share of profit from associated | 1.0 | 0.6 | 82.6 % | 0.3 |
| companies | | | | |
--------------------------------------------------------------------------------
| Operating profit | 41.0 | 17.3 | 137.0 % | 47.0 |
--------------------------------------------------------------------------------
| Taxes | -11.0 | -4.3 | 155.7 % | -13.0 |
--------------------------------------------------------------------------------
| Profit for the period | 30.0 | 13.0 | 130.8 % | 34.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Shareholders in Aktia plc | 28.7 | 13.8 | 107.0 % | 34.3 |
--------------------------------------------------------------------------------
| Minority interest | 1.3 | -0.8 | - | -0.3 |
--------------------------------------------------------------------------------
| Total | 30.0 | 13.0 | 130.8 % | 34.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR | 0.43 | 0.21 | 107.0 % | 0.52 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR, | 0.43 | 0.21 | 107.0 % | 0.52 |
| after dilution | | | | |
--------------------------------------------------------------------------------
Consolidated statement of comprehensive income
--------------------------------------------------------------------------------
| (EUR million) | 1-6/201 | 1-6/200 | ∆ | 1-12/ |
| | 0 | 9 | | 2009 |
--------------------------------------------------------------------------------
| Profit for the period | 30.0 | 13.0 | 130.8 % | 34.0 |
--------------------------------------------------------------------------------
| Other comprehensive income after | | | | |
| taxes: | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | -1.9 | 19.9 | - | 51.8 |
| for financial assets available for | | | | |
| sale | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | 12.1 | 9.3 | 29.8 % | 9.0 |
| for cash flow hedging | | | | |
--------------------------------------------------------------------------------
| Transferred to the income statement | 0.8 | 3.7 | -79.4 % | 19.2 |
| for financial assets available for | | | | |
| sale | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for the | 41.0 | 45.9 | -10.7 % | 114.1 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | | | | |
| attributable to: | | | | |
--------------------------------------------------------------------------------
| Shareholders in Aktia plc | 40.3 | 46.6 | -13.6 % | 114.0 |
--------------------------------------------------------------------------------
| Minority interest | 0.7 | -0.7 | - | 0.2 |
--------------------------------------------------------------------------------
| Total | 41.0 | 45.9 | -10.7 % | 114.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total earnings per share, EUR | 0.61 | 0.70 | -13.6 % | 1.72 |
--------------------------------------------------------------------------------
| Total earnings per share, EUR, after | 0.61 | 0.70 | -13.6 % | 1.72 |
| dilution | | | | |
--------------------------------------------------------------------------------
Consolidated balance sheet
--------------------------------------------------------------------------------
| (EUR million) | 30.6.201 | 31.12.20 | ∆ | 30.6.2009 |
| | 0 | 09 | | |
--------------------------------------------------------------------------------
| Assets | | | | |
--------------------------------------------------------------------------------
| Cash and balances with central | 283.1 | 341.0 | -17.0 % | 288.7 |
| banks | | | | |
--------------------------------------------------------------------------------
| Financial assets reported at | 19.9 | 22.5 | -11.5 % | 25.5 |
| fair value via the income | | | | |
| statement | | | | |
--------------------------------------------------------------------------------
| Interest-bearing securities | 3,280.7 | 3,277.3 | 0.1 % | 3,039.5 |
--------------------------------------------------------------------------------
| Shares and participations | 151.2 | 155.6 | -2.8 % | 204.8 |
--------------------------------------------------------------------------------
| Financial assets available for | 3,431.9 | 3,433.0 | 0.0 % | 3,244.2 |
| sale | | | | |
--------------------------------------------------------------------------------
| Financial assets held until | 22.2 | 27.9 | -20.5 % | 30.9 |
| maturity | | | | |
--------------------------------------------------------------------------------
| Derivative instruments | 288.2 | 210.0 | 37.3 % | 198.7 |
--------------------------------------------------------------------------------
| Lending to credit institutions | 75.1 | 80.7 | -7.0 % | 119.2 |
--------------------------------------------------------------------------------
| Lending to the public and | 6,346.4 | 6,060.8 | 4.7 % | 5,820.0 |
| public sector entities | | | | |
--------------------------------------------------------------------------------
| Loans and other receivables | 6,421.5 | 6,141.6 | 4.6 % | 5,939.3 |
--------------------------------------------------------------------------------
| Investments for unit-linked | 236.8 | 208.9 | 13.4 % | 168.1 |
| provisions | | | | |
--------------------------------------------------------------------------------
| Investments in associated | 5.3 | 4.5 | 17.1 % | 4.7 |
| companies | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 12.1 | 12.4 | -2.8 % | 12.5 |
--------------------------------------------------------------------------------
| Investment properties | 25.1 | 26.9 | -6.9 % | 28.7 |
--------------------------------------------------------------------------------
| Other tangible assets | 7.0 | 8.1 | -13.4 % | 7.7 |
--------------------------------------------------------------------------------
| Accrued income and advance | 71.6 | 80.3 | -10.8 % | 67.2 |
| payments | | | | |
--------------------------------------------------------------------------------
| Other assets | 33.7 | 31.4 | 7.6 % | 71.0 |
--------------------------------------------------------------------------------
| Total other assets | 105.3 | 111.6 | -5.6 % | 138.1 |
--------------------------------------------------------------------------------
| Income tax receivables | 1.8 | 0.8 | 128.1 % | 3.7 |
--------------------------------------------------------------------------------
| Deferred tax receivables | 6.3 | 6.0 | 3.7 % | 13.7 |
--------------------------------------------------------------------------------
| Tax receivables | 8.1 | 6.8 | 18.4 % | 17.4 |
--------------------------------------------------------------------------------
| Assets classified as held for | 0.8 | 0.8 | 0.0 % | 0.8 |
| sale | | | | |
--------------------------------------------------------------------------------
| Total assets | 10,867.2 | 10,555.8 | 2.9 % | 10,105.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | |
--------------------------------------------------------------------------------
| Liabilities to credit | 1,516.9 | 1,724.4 | -12.0 % | 1,597.9 |
| institutions | | | | |
--------------------------------------------------------------------------------
| Liabilities to the public and | 3,351.4 | 3,029.2 | 10.6 % | 3,079.9 |
| public sector entities | | | | |
--------------------------------------------------------------------------------
| Deposits | 4,868.3 | 4,753.6 | 2.4 % | 4,677.8 |
--------------------------------------------------------------------------------
| Derivative instruments | 169.9 | 132.2 | 28.6 % | 127.7 |
--------------------------------------------------------------------------------
| Debt securities issued | 2,970.3 | 2,747.9 | 8.1 % | 2,568.7 |
--------------------------------------------------------------------------------
| Subordinated liabilities | 253.9 | 252.5 | 0.5 % | 243.8 |
--------------------------------------------------------------------------------
| Other liabilities to credit | 818.2 | 968.2 | -15.5 % | 742.4 |
| institutions | | | | |
--------------------------------------------------------------------------------
| Other liabilities to the public | 109.6 | 77.3 | 41.8 % | 197.5 |
| and public sector entities | | | | |
--------------------------------------------------------------------------------
| Other financial liabilities | 4,151.9 | 4,045.9 | 2.6 % | 3,752.5 |
--------------------------------------------------------------------------------
| Technical provisions for | 589.6 | 595.0 | -0.9 % | 599.1 |
| interest-related insurances | | | | |
--------------------------------------------------------------------------------
| Technical provisions for | 236.1 | 210.1 | 12.4 % | 168.6 |
| unit-linked insurances | | | | |
--------------------------------------------------------------------------------
| Technical provisions for | 131.6 | 119.3 | 10.3 % | 127.6 |
| non-life insurances | | | | |
--------------------------------------------------------------------------------
| Technical provisions | 957.3 | 924.4 | 3.6 % | 895.3 |
--------------------------------------------------------------------------------
| Accrued expenses and income | 82.6 | 71.9 | 14.9 % | 68.8 |
| received in advance | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 72.0 | 91.5 | -21.3 % | 126.8 |
--------------------------------------------------------------------------------
| Total other liabilities | 154.6 | 163.4 | -5.4 % | 195.6 |
--------------------------------------------------------------------------------
| Provisions | 0.6 | 0.8 | -29.0 % | 0.9 |
--------------------------------------------------------------------------------
| Income tax liability | 4.1 | 19.2 | -78.9 % | 4.6 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 59.6 | 49.9 | 19.4 % | 54.4 |
--------------------------------------------------------------------------------
| Tax liabilities | 63.7 | 69.1 | -7.9 % | 59.0 |
--------------------------------------------------------------------------------
| Liabilities for assets | 0.2 | 0.2 | 0.0 % | 0.2 |
| classified as held for sale | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 10,366.6 | 10,089.7 | 2.7 % | 9,709.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Restricted equity | 159.2 | 147.6 | 7.9 % | 100.8 |
--------------------------------------------------------------------------------
| Unrestricted equity | 298.8 | 285.8 | 4.5 % | 265.4 |
--------------------------------------------------------------------------------
| Shareholders' share of equity | 458.0 | 433.4 | 5.7 % | 366.1 |
--------------------------------------------------------------------------------
| Minority interest's share of | 42.6 | 32.7 | 30.3 % | 30.2 |
| equity | | | | |
--------------------------------------------------------------------------------
| Equity | 500.6 | 466.2 | 7.4 % | 396.3 |
--------------------------------------------------------------------------------
| Total liabilities and equity | 10,867.2 | 10,555.8 | 2.9 % | 10,105.4 |
--------------------------------------------------------------------------------
Consolidated cash flow statement
--------------------------------------------------------------------------------
| (EUR million) | 1-6/ | 1-6/ | ∆ | 1-12/ |
| | 2010 | 2009 | | 2009 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | | |
--------------------------------------------------------------------------------
| Operating profit | 41.0 | 17.3 | 137.0 | 47.0 |
| | | | % | |
--------------------------------------------------------------------------------
| Adjustment items not included in cash | 8.6 | 35.5 | -75.9 | 43.8 |
| flow for the period | | | % | |
--------------------------------------------------------------------------------
| Paid income taxes | -21.7 | -7.8 | -178.0 | -12.4 |
| | | | % | |
--------------------------------------------------------------------------------
| Cash flow from operating activities | 27.9 | 45.0 | -38.0 | 78.4 |
| before change in operating receivables | | | % | |
| and liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (-) or decrease (+) in | -283. | -542. | 47.7 % | -919.1 |
| receivables from operating activities | 9 | 9 | | |
--------------------------------------------------------------------------------
| Increase (+) or decrease (-) in | 199.4 | 296.2 | -32.7 | 654.0 |
| liabilities from operating activities | | | % | |
--------------------------------------------------------------------------------
| Total cash flow from operating activities | -56.5 | -201. | 72.0 % | -186.7 |
| | | 6 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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 | 16.3 | - | 16.3 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of group companies and | - | 0.0 | - | 0.0 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Investment in tangible and intangible | -2.8 | -3.7 | 25.2 % | -6.7 |
| assets | | | | |
--------------------------------------------------------------------------------
| Disposal of tangible and intangible | 4.4 | 1.3 | 250.2 | 2.0 |
| assets | | | % | |
--------------------------------------------------------------------------------
| Share issue of Aktia Real Estate Mortgage | 9.2 | 6.6 | 39.5 % | 8.9 |
| Bank Plc to the minority | | | | |
--------------------------------------------------------------------------------
| Total cash flow from investing activities | 16.5 | 25.5 | -35.5 | 28.6 |
| | | | % | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | | |
--------------------------------------------------------------------------------
| Subordinated liabilities | 0.0 | -2.4 | - | 6.4 |
--------------------------------------------------------------------------------
| Increase in share capital | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Own shares divested | 0.2 | - | - | - |
--------------------------------------------------------------------------------
| Increase in unrestricted equity reserve | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Paid dividends | -15.9 | -10.0 | -58.7 | -10.0 |
| | | | % | |
--------------------------------------------------------------------------------
| Total cash flow from financing activities | -15.7 | -12.4 | -27.2 | -3.6 |
| | | | % | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -55.8 | -188. | 70.4 % | -161.7 |
| | | 5 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 350.7 | 512.4 | -31.6 | 512.4 |
| beginning of the year | | | % | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end of | 294.9 | 323.9 | -8.9 % | 350.7 |
| 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 |
--------------------------------------------------------------------------------
| Insurance operation's cash and bank | 4.7 | 4.0 | 16.2 % | 4.5 |
--------------------------------------------------------------------------------
| 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 | 294.9 | 323.9 | -8.9 % | 350.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjustment items not included in cash | | | | |
| flow consist of: | | | | |
--------------------------------------------------------------------------------
| Impairment of financial assets available | 0.0 | 20.7 | - | 24.0 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and other | 8.4 | 17.5 | -52.0 | 31.7 |
| commitments | | | % | |
--------------------------------------------------------------------------------
| Change in fair values | -0.5 | -6.1 | 92.1 % | -19.2 |
--------------------------------------------------------------------------------
| Depreciation and impairment of intangible | 4.0 | 3.7 | 8.8 % | 7.7 |
| and tangible assets | | | | |
--------------------------------------------------------------------------------
| Share of profit from associated companies | -0.7 | -0.3 | -170.5 | 0.0 |
| | | | % | |
--------------------------------------------------------------------------------
| Sales gains and losses from intangible | -2.3 | -0.1 | - | -0.5 |
| and tangible assets | | | | |
--------------------------------------------------------------------------------
| Negative goodwill recorded as income | - | -0.1 | - | -0.1 |
--------------------------------------------------------------------------------
| Other adjustments | -0.3 | 0.2 | - | 0.2 |
--------------------------------------------------------------------------------
| Total | 8.6 | 35.5 | -75.9 | 43.8 |
| | | | % | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
consolidated statement of Changes in equity
--------------------------------------------------------------------------------
| (EUR million) | Shar | Othe | Fund | Unre | Retai | Share | Minor | Total |
| | e | r | at | stri | ned | holde | ity | equit |
| | capi | rest | fair | cted | earni | rs' | inter | y |
| | tal | rict | valu | equi | ngs | share | est's | |
| | | ed | e | ty | | of | share | |
| | | equi | | rese | | equit | of | |
| | | ty | | rve | | y | equit | |
| | | | | | | | y | |
--------------------------------------------------------------------------------
| Equity as at 1 | 80.2 | 10.4 | -36. | 45.4 | 192.1 | 291.8 | 25.0 | 316.8 |
| January 2009 | | | 4 | | | | | |
--------------------------------------------------------------------------------
| Share issue | 13.6 | | | 27.2 | | 40.9 | | 40.9 |
--------------------------------------------------------------------------------
| Treasury shares | | | | | -3.2 | -3.2 | | -3.2 |
| acquired in | | | | | | | | |
| connection with | | | | | | | | |
| the merger | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends to | | | | | -10.0 | -10.0 | | -10.0 |
| shareholders | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 13.8 | 13.8 | -0.8 | 13.0 |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | 23.5 | | | 23.5 | 0.1 | 23.6 |
| available for | | | | | | | | |
| sale | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | 9.3 | | | 9.3 | | 9.3 |
| hedging | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 32.8 | | 13.8 | 46.6 | -0.7 | 45.9 |
| comprehensive | | | | | | | | |
| income for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Other change in | | 0.1 | | | | 0.1 | 6.0 | 6.1 |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Equity as at 30 | 93.9 | 10.5 | -3.6 | 72.7 | 192.7 | 366.1 | 30.2 | 396.3 |
| June 2009 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at | 93.9 | 10.4 | 43.3 | 72.7 | 213.2 | 433.4 | 32.7 | 466.2 |
| 1January 2010 | | | | | | | | |
--------------------------------------------------------------------------------
| Share issue | | | | | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Divestment of | | | | | 0.2 | 0.2 | | 0.2 |
| own shares | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends to | | | | | -15.9 | -15.9 | | -15.9 |
| shareholders | | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 28.7 | 28.7 | 1.3 | 30.0 |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | -1.1 | | | -1.1 | 0.0 | -1.1 |
| available for | | | | | | | | |
| sale | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | 12.7 | | | 12.7 | -0.6 | 12.1 |
| hedging | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | 11.6 | | 28.7 | 40.3 | 0.7 | 41.0 |
| comprehensive | | | | | | | | |
| income for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Other change in | | | | | | 0.0 | 9.2 | 9.2 |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Equity as at 30 | 93.9 | 10.4 | 54.9 | 72.7 | 226.1 | 458.0 | 42.6 | 500.6 |
| June 2010 | | | | | | | | |
--------------------------------------------------------------------------------
In connection with the acquisition of Veritas Mutual Non-Life Insurance on 1
January 2009, merger compensation of 6,800,000 A shares was paid at a nominal
value of EUR 2.00 per share and a subscription price of EUR 6.00 per share. Of
this compensation, EUR 13.6 million was attributed to share capital and EUR 27.2
million to the unrestricted equity reserve. The company has continued its
operations in the Aktia Group under the name Aktia Non-Life Insurance Ltd.
As a result of the Extraordinary General Meeting of 21 December 2006, the Board
of Directors is authorised to issue shares to key personnel in the Group for
incentive reasons. On the basis of the authorisations given, the Board of Aktia
plc resolved on 30 March 2009 to implement a directed share issue to designated
persons in the company's executive management. Within the context of the issue,
12,490 new A shares were issued at a subscription price of EUR 6.00 per share
and a nominal value of EUR 2.00 per share. Of the EUR 74,940 remuneration, EUR
24,980 was attributed to share capital and EUR 49,960 to the unrestricted equity
reserve.
--------------------------------------------------------------------------------
| | | Other | Fund at | Unrestricte |
| | | restricted | | d |
--------------------------------------------------------------------------------
| (EUR million) | Share | equity | fair | equity |
| | capital | | value | reserve |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January 2009 | 80.2 | 10.4 | -36.4 | 45.4 |
--------------------------------------------------------------------------------
| Share issue | 13.6 | | | 27.2 |
--------------------------------------------------------------------------------
| Treasury shares received in | | | |
| connection with merger | | | |
--------------------------------------------------------------------------------
| Dividens to shareholders | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | |
--------------------------------------------------------------------------------
| Financial assets available | | | 23.5 | |
| for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | | 9.3 | |
--------------------------------------------------------------------------------
| Total comprehensive income for the | | 32.8 | |
| period | | | |
--------------------------------------------------------------------------------
| Other change in equity | | 0.1 | | |
--------------------------------------------------------------------------------
| Equity as at 30 June 2009 | 93.9 | 10.5 | -3.6 | 72.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Shareholder | Minority | |
| | | s' | | |
--------------------------------------------------------------------------------
| | Retaine | share of | interest' | Total |
| | d | | s share | |
--------------------------------------------------------------------------------
| (EUR million) | earning | equity | of equity | equity |
| | s | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January 2009 | 192.1 | 291.8 | 25.0 | 316.8 |
--------------------------------------------------------------------------------
| Share issue | | 40.9 | | 40.9 |
--------------------------------------------------------------------------------
| Treasury shares received | -3.2 | -3.2 | | -3.2 |
| in connection with merger | | | | |
--------------------------------------------------------------------------------
| Dividens to shareholders | -10.0 | -10.0 | | -10.0 |
--------------------------------------------------------------------------------
| Profit for the period | 13.8 | 13.8 | -0.8 | 13.0 |
--------------------------------------------------------------------------------
| Financial assets available | | 23.5 | 0.1 | 23.6 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | 9.3 | | 9.3 |
--------------------------------------------------------------------------------
| Total comprehensive income | 13.8 | 46.6 | -0.7 | 45.9 |
| for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | | 0.1 | 6.0 | 6.1 |
--------------------------------------------------------------------------------
| Equity as at 30 June 2009 | 192.7 | 366.1 | 30.2 | 396.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | | Other | Fund at | Unrestricte |
| | | restricted | | d |
--------------------------------------------------------------------------------
| (EUR million) | Share | equity | fair | equity |
| | capital | | value | reserve |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January 2010 | 93.9 | 10.4 | 43.3 | 72.7 |
--------------------------------------------------------------------------------
| Share issue | | | | |
--------------------------------------------------------------------------------
| Divestment of own shares | | | | |
--------------------------------------------------------------------------------
| Dividens to shareholders | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | |
--------------------------------------------------------------------------------
| Financial assets available | | | -1.1 | |
| for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | | 12.7 | |
--------------------------------------------------------------------------------
| Total comprehensive income for the | | 11.6 | |
| period | | | |
--------------------------------------------------------------------------------
| Other change in equity | | | | |
--------------------------------------------------------------------------------
| Equity as at 30 June 2010 | 93.9 | 10.4 | 54.9 | 72.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Shareholder | Minority | |
| | | s' | | |
--------------------------------------------------------------------------------
| | Retaine | share of | interest' | Total |
| | d | | s share | |
--------------------------------------------------------------------------------
| (EUR million) | earning | equity | of equity | equity |
| | s | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January 2010 | 213.2 | 433.4 | 32.7 | 466.2 |
--------------------------------------------------------------------------------
| Share issue | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Divestment of own shares | 0.2 | 0.2 | | 0.2 |
--------------------------------------------------------------------------------
| Dividens to shareholders | -15.9 | -15.9 | | -15.9 |
--------------------------------------------------------------------------------
| Profit for the period | 28.7 | 28.7 | 1.3 | 30.0 |
--------------------------------------------------------------------------------
| Financial assets available | | -1.1 | 0.0 | -1.1 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | 12.7 | -0.6 | 12.1 |
--------------------------------------------------------------------------------
| Total comprehensive income | 28.7 | 40.3 | 0.7 | 41.0 |
| for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | | 0.0 | 9.2 | 9.2 |
--------------------------------------------------------------------------------
| Equity as at 30 June 2010 | 226.1 | 458.0 | 42.6 | 500.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| In the acquisition of Veritas Mutual Non-Life Insurance Company compensation |
| for the merger was given |
--------------------------------------------------------------------------------
| in the form of 6,800,000 A-shares with a nominal value of EUR 2.00 per share |
| and a subscription price of |
--------------------------------------------------------------------------------
| EUR 6.00 per share. Of the compensation for merger EUR 13.6 million was |
| entered under share capital |
--------------------------------------------------------------------------------
| and EUR 27.2 million under unrestrected equity reserve. The company |
| continues to operate within the |
--------------------------------------------------------------------------------
| Aktia Group under the name Aktia Non-Life | | |
| Insurance Ltd. | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The Board of Directors has an authorisation from the extraordinary General |
| Meeting on 21.12.2006 to issue |
--------------------------------------------------------------------------------
| new shares as incentives for key personnel in the Group. On 30 March 2009, |
| Aktia's Board of Directors |
--------------------------------------------------------------------------------
| decided, supported by this authorisation to issue shares, on a directed |
| share issue to named persons in the |
--------------------------------------------------------------------------------
| company's senior executive management. Hereby 12,490 new A-shares were |
| issued to a subscription price |
--------------------------------------------------------------------------------
| of EUR 6.00 per share and a nominal value of EUR 2.00 per share. Of the EUR |
| 74,940 compensation for |
--------------------------------------------------------------------------------
| merger EUR 24,980 was entered under share capital and EUR 49,960 under |
| unrestricted equity reserve. |
--------------------------------------------------------------------------------
Quarterly trends in the Group
--------------------------------------------------------------------------------
| (EUR million) | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net interest income | 38.6 | 38.9 | 39.8 | 40.5 | 39.4 |
--------------------------------------------------------------------------------
| Dividends | 1.1 | 0.0 | 0.0 | 0.0 | 0.5 |
--------------------------------------------------------------------------------
| Net commission income | 15.5 | 13.4 | 14.5 | 11.3 | 11.0 |
--------------------------------------------------------------------------------
| Net income from | 2.6 | 4.5 | 3.2 | 3.8 | 1.7 |
| life-insurance | | | | | |
--------------------------------------------------------------------------------
| Net income from non-life | 5.9 | 4.4 | 1.5 | 6.3 | 5.5 |
| insurance | | | | | |
--------------------------------------------------------------------------------
| Net income from financial | -1.2 | -1.8 | -1.0 | 1.2 | 3.2 |
| transactions | | | | | |
--------------------------------------------------------------------------------
| Net income from investment | 0.0 | 0.3 | 0.1 | 0.1 | 0.1 |
| properties | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 3.7 | 1.3 | 0.5 | 1.2 | 1.0 |
--------------------------------------------------------------------------------
| Total operating income | 66.2 | 61.0 | 58.7 | 64.3 | 62.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Staff costs | -21.8 | -20.7 | -21.8 | -18.3 | -18.9 |
--------------------------------------------------------------------------------
| Other administrative expenses | -12.0 | -11.4 | -12.9 | -9.5 | -11.6 |
--------------------------------------------------------------------------------
| Depreciation of tangible and | -1.8 | -1.8 | -1.6 | -1.8 | -1.7 |
| intangible assets | | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -4.4 | -5.0 | -6.4 | -6.5 | -5.2 |
--------------------------------------------------------------------------------
| Total operating expenses | -40.0 | -38.9 | -42.7 | -36.1 | -37.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairment and reversal of | - | - | -0.3 | - | -0.2 |
| impairment on tangible and | | | | | |
| intangible assets | | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and | -3.8 | -4.6 | -5.5 | -8.5 | -16.2 |
| other commitments | | | | | |
--------------------------------------------------------------------------------
| Share of profit from | 1.1 | -0.1 | -0.4 | 0.1 | 0.5 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 23.5 | 17.5 | 9.8 | 19.8 | 9.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Taxes | -6.0 | -5.0 | -3.0 | -5.6 | -1.8 |
--------------------------------------------------------------------------------
| Profit for the period | 17.5 | 12.5 | 6.8 | 14.2 | 7.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of | | | | | |
| comprehensive income | | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 4-6/ | 1-3/ | 10-12/ | 7-9/ | 4-6/ |
| | 2010 | 2010 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Profit for the reporting | 17.5 | 12.5 | 6.8 | 14.2 | 7.4 |
| period | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income | | | | | |
| after taxes: | | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair | -19.0 | 17.1 | -15.4 | 47.3 | 35.8 |
| 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 | 0.2 | 0.5 | 14.7 | 0.9 | -1.0 |
| statement for fianancial | | | | | |
| assets available for sale | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income | 1.6 | 39.3 | 1.4 | 66.8 | 45.0 |
| for the period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes to the interim report
Note 1 Basis for preparing interim reports and important accounting principles
Basis for preparing the interim report
Aktia 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 the Group'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 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.
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)
This revised standard deals with accounting principles relating to minority
interests. The application of this standard has not had any impact on the
Group's result or financial position during the first half year of 2010.
Note 2 Segment reporting
Segment
From 1 January 2009, the reported segments are Banking Business, Asset
Management, Life Insurance, Non-Life Insurance and Miscellaneous.
The Banking Business segment includes Aktia Bank plc's branch office operation,
corporate banking and treasury as well as subsidiaries Aktia Real Estate
Mortgage Bank plc, Aktia Card & Finance Ab, Aktia Corporate Finance Ab and the
real estate agencies. Asset Management includes Aktia Bank plc's private bank in
Helsinki and the subsidiaries Aktia Fund Management Ltd and Aktia Asset
Management Oy Ab as well as Aktia Invest Ltd. Life Insurance includes Aktia Life
Insurance Ltd. Non-Life Insurance includes Aktia Non-Life Insurance Company Ltd.
Miscellaneous includes Group management in Aktia plc and certain administrative
functions in Aktia Bank plc that are not allocated to the various business
areas. This business area also includes Vasp-Invest Ab.
Allocation principles and group eliminations
Net interest income from those units included in the banking business and asset
management segments contain 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 hedging measures for
which management has issued authority. The costs of central support functions
are allocated to the segments in accordance with resource use, defined projects
and according to different allocation rules.
Until further notice, Aktia plc and Aktia Bank plc are not allocating equity to
the different segments. The miscellaneous segment 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 segments 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 companies, acquisition eliminations, the
minority interest's share and other Group adjustments are included in
eliminations. Pricing between the segments is based on market prices.
--------------------------------------------------------------------------------
| Note 2. Group's segment reporting | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Income statement | | Banking | | Asset |
| | | Business | | Management |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-6/ | 1-6/2009 | 1-6/ | 1-6/ 2009 |
| | 2010 | | 2010 | |
--------------------------------------------------------------------------------
| Net interest income | 75.4 | 68.9 | 1.6 | 1.0 |
--------------------------------------------------------------------------------
| Net commission income | 21.7 | 15.0 | 8.3 | 5.6 |
--------------------------------------------------------------------------------
| Net income from | - | - | - | - |
| life-insurance | | | | |
--------------------------------------------------------------------------------
| Net income from non-life | - | - | - | - |
| insurance | | | | |
--------------------------------------------------------------------------------
| Other income | -2.0 | 2.9 | 0.2 | -0.2 |
--------------------------------------------------------------------------------
| Total operating income | 95.1 | 86.8 | 10.1 | 6.4 |
--------------------------------------------------------------------------------
| Staff costs | -20.0 | -18.1 | -4.4 | -3.6 |
--------------------------------------------------------------------------------
| Other administrative expenses | -23.0 | -25.9 | -2.9 | -2.0 |
--------------------------------------------------------------------------------
| Depreciation of tangible and | | | | |
--------------------------------------------------------------------------------
| intangible assets | -1.1 | -1.2 | -0.3 | -0.4 |
--------------------------------------------------------------------------------
| Other expenses | -4.9 | -4.9 | -0.5 | -0.4 |
--------------------------------------------------------------------------------
| Total operating expenses | -49.1 | -50.1 | -8.1 | -6.4 |
--------------------------------------------------------------------------------
| Impairment 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 | 38.0 | 19.1 | 2.0 | 0.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Life | | Non-Life |
| | | Insurance | | Insurance |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-6/ | 1-6/ 2009 | 1-6/ | 1-6/ 2009 |
| | 2010 | | 2010 | |
--------------------------------------------------------------------------------
| Net interest income | - | - | - | - |
--------------------------------------------------------------------------------
| Net commission income | - | - | - | - |
--------------------------------------------------------------------------------
| Net income from | 11.0 | 11.9 | - | - |
| life-insurance | | | | |
--------------------------------------------------------------------------------
| Net income from non-life | - | - | 11.3 | 6.7 |
| insurance | | | | |
--------------------------------------------------------------------------------
| Other income | - | -0.5 | 0.3 | 0.0 |
--------------------------------------------------------------------------------
| Total operating income | 11.0 | 11.5 | 11.6 | 6.7 |
--------------------------------------------------------------------------------
| Staff costs | -2.8 | -3.0 | -5.5 | -6.1 |
--------------------------------------------------------------------------------
| Other administrative expenses | -3.5 | -3.6 | -3.5 | -3.5 |
--------------------------------------------------------------------------------
| Depreciation of tangible and | | | | |
--------------------------------------------------------------------------------
| intangible assets | -0.2 | -0.2 | -0.3 | -0.3 |
--------------------------------------------------------------------------------
| Other expenses | - | - | -0.4 | 0.1 |
--------------------------------------------------------------------------------
| Total operating expenses | -6.5 | -6.9 | -9.8 | -9.7 |
--------------------------------------------------------------------------------
| Impairment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | - | - | - |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | - | - | -0.4 | -0.3 |
--------------------------------------------------------------------------------
| Share of profit from | - | - | - | - |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit | 4.6 | 4.6 | 1.4 | -3.2 |
--------------------------------------------------------------------------------
| Contribution of insurance | | | | |
| businesses to the Groups' | | | | |
--------------------------------------------------------------------------------
| operating profit | 4.3 | 0.2 | 0.1 | -2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Miscellaneo | | Elimination |
| | | us | | s |
--------------------------------------------------------------------------------
| (EUR million) | 1-6/2 | 1-6/2009 | 1-6/2010 | 1-6/2009 |
| | 010 | | | |
--------------------------------------------------------------------------------
| Net interest income | -0.4 | 1.6 | 0.8 | 0.4 |
--------------------------------------------------------------------------------
| Net commission income | 3.7 | 2.9 | -4.7 | -3.0 |
--------------------------------------------------------------------------------
| Net income from | - | - | -3.9 | -4.9 |
| life-insurance | | | | |
--------------------------------------------------------------------------------
| Net income from non-life | - | - | -1.0 | 0.7 |
| insurance | | | | |
--------------------------------------------------------------------------------
| Other income | 11.5 | 3.2 | -6.6 | -2.1 |
--------------------------------------------------------------------------------
| Total operating income | 14.8 | 7.6 | -15.3 | -8.8 |
--------------------------------------------------------------------------------
| Staff costs | -9.7 | -8.3 | -0.2 | 0.0 |
--------------------------------------------------------------------------------
| Other administrative expenses | -2.8 | 9.1 | 12.4 | 3.6 |
--------------------------------------------------------------------------------
| Depreciation of tangible and | | | | |
--------------------------------------------------------------------------------
| intangible assets | -1.4 | -0.9 | -0.4 | -0.5 |
--------------------------------------------------------------------------------
| Other expenses | -4.1 | -4.8 | 0.6 | -0.5 |
--------------------------------------------------------------------------------
| Total operating expenses | -17.9 | -4.9 | 12.4 | 2.5 |
--------------------------------------------------------------------------------
| Impairment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | - | - | -0.2 |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | - | - | - | - |
--------------------------------------------------------------------------------
| Share of profit from | - | - | 1.0 | 0.6 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit | -3.1 | 2.8 | -1.9 | -6.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Total Group | | |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-6/ | 1-6/ 2009 | | |
| | 2010 | | | |
--------------------------------------------------------------------------------
| Net interest income | 77.5 | 71.9 | | |
--------------------------------------------------------------------------------
| Net commission income | 28.9 | 20.6 | | |
--------------------------------------------------------------------------------
| Net income from | 7.1 | 7.0 | | |
| life-insurance | | | | |
--------------------------------------------------------------------------------
| Net income from non-life | 10.3 | 7.4 | | |
| insurance | | | | |
--------------------------------------------------------------------------------
| Other income | 3.4 | 3.2 | | |
--------------------------------------------------------------------------------
| Total operating income | 127.2 | 110.2 | | |
--------------------------------------------------------------------------------
| Staff costs | -42.5 | -39.2 | | |
--------------------------------------------------------------------------------
| Other administrative expenses | -23.4 | -22.3 | | |
--------------------------------------------------------------------------------
| Depreciation of tangible and | | | | |
--------------------------------------------------------------------------------
| intangible assets | -3.5 | -3.5 | | |
--------------------------------------------------------------------------------
| Other expenses | -9.3 | -10.5 | | |
--------------------------------------------------------------------------------
| Total operating expenses | -78.8 | -75.4 | | |
--------------------------------------------------------------------------------
| Impairment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | -0.2 | | |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | -8.4 | -17.8 | | |
--------------------------------------------------------------------------------
| Share of profit from | 1.0 | 0.6 | | |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit | 41.0 | 17.3 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Banking | | Asset |
| | | Business | | Management |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 30.6.20 | 31.12.2009 | 30.6.201 | 31.12.2009 |
| | 10 | | 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 available | 2,632.9 | 2,655.8 | 7.6 | 7.3 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | 6,436.3 | 6,173.7 | 43.6 | 34.4 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | - | - | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | 444.7 | 662.9 | 6.1 | 5.0 |
--------------------------------------------------------------------------------
| Total assets | 9,796.0 | 9,832.4 | 57.3 | 46.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | 4,693.4 | 4,607.1 | 190.8 | 154.7 |
--------------------------------------------------------------------------------
| Debt securities issued | 2,985.8 | 2,758.1 | - | - |
--------------------------------------------------------------------------------
| Technical provision for | - | - | - | - |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 1,621.2 | 1,508.7 | 7.8 | 6.7 |
--------------------------------------------------------------------------------
| Total liabilities | 9,300.4 | 8,874.0 | 198.6 | 161.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Life | | Non-Life |
| | | Insurance | | Insurance |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 30.6.20 | 31.12.2009 | 30.6.201 | 31.12.2009 |
| | 10 | | 0 | |
--------------------------------------------------------------------------------
| Cash and balances with | 7.8 | 3.1 | 8.3 | 5.6 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets reported | | | | |
| at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | 9.6 | 10.4 | 6.5 | 8.4 |
--------------------------------------------------------------------------------
| Financial assets available | 670.0 | 664.9 | 114.8 | 101.1 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | - | - | - | - |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | 236.8 | 208.9 | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | 20.4 | 19.4 | 41.4 | 38.5 |
--------------------------------------------------------------------------------
| Total assets | 944.6 | 906.6 | 171.1 | 153.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | - | - | - | - |
--------------------------------------------------------------------------------
| Debt securities issued | - | - | - | - |
--------------------------------------------------------------------------------
| Technical provision for | 825.8 | 805.1 | 123.2 | 109.7 |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 18.3 | 14.1 | 19.9 | 19.6 |
--------------------------------------------------------------------------------
| Total liabilities | 844.0 | 819.2 | 143.0 | 129.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Miscellaneou | | Elimination |
| | | s | | s |
--------------------------------------------------------------------------------
| (EUR million) | 30.6.20 | 31.12.2009 | 30.6.201 | 31.12.2009 |
| | 10 | | 0 | |
--------------------------------------------------------------------------------
| Cash and balances with | - | - | -11.4 | -4.3 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets reported | | | | |
| at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | - | - | - | - |
--------------------------------------------------------------------------------
| Financial assets available | 23.5 | 30.0 | -16.9 | -26.1 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | 9.7 | 0.1 | -68.1 | -66.6 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | - | - | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | 357.4 | 20.7 | -396.0 | -337.3 |
--------------------------------------------------------------------------------
| Total assets | 390.6 | 50.7 | -492.4 | -434.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | 3.4 | 2.2 | -19.3 | -10.4 |
--------------------------------------------------------------------------------
| Debt securities issued | - | - | -15.5 | -10.2 |
--------------------------------------------------------------------------------
| Technical provision for | - | - | 8.4 | 9.6 |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 90.5 | 258.8 | -187.0 | -144.3 |
--------------------------------------------------------------------------------
| Total liabilities | 94.0 | 261.0 | -213.5 | -155.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Total Group | | |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 30.6.20 | 31.12.2009 | | |
| | 10 | | | |
--------------------------------------------------------------------------------
| Cash and balances with | 283.1 | 341.0 | | |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets reported | | | | |
| at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | 19.9 | 22.5 | | |
--------------------------------------------------------------------------------
| Financial assets available | 3,431.9 | 3,433.0 | | |
| for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | 6,421.5 | 6,141.6 | | |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | 236.8 | 208.9 | | |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | 474.0 | 409.0 | | |
--------------------------------------------------------------------------------
| Total assets | 10,867. | 10,555.8 | | |
| | 2 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | 4,868.3 | 4,753.6 | | |
--------------------------------------------------------------------------------
| Debt securities issued | 2,970.3 | 2,747.9 | | |
--------------------------------------------------------------------------------
| Technical provision for | 957.3 | 924.4 | | |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 1,570.7 | 1,663.7 | | |
--------------------------------------------------------------------------------
| Total liabilities | 10,366. | 10,089.7 | | |
| | 6 | | | |
--------------------------------------------------------------------------------
Note 3 Derivatives and off-balance sheet commitments
--------------------------------------------------------------------------------
| Hedging derivative instruments (EUR | | | |
| million) | | | |
--------------------------------------------------------------------------------
| 30.6.2010 | Total | Assets, | Liabiliti |
| | nominal | fair | es, fair |
| | amount | value | value |
--------------------------------------------------------------------------------
| 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 *) | 7,150.9 | 132.6 | 130.5 |
--------------------------------------------------------------------------------
| Currency-related | 190.2 | 0.8 | 1.1 |
--------------------------------------------------------------------------------
| Equity-related **) | 98.3 | 3.1 | 3.1 |
--------------------------------------------------------------------------------
| Other derivative instruments **) | 4.3 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Total | 7,443.7 | 136.9 | 135.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total derivative instruments | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 11,203.4 | 283.8 | 165.3 |
--------------------------------------------------------------------------------
| Currency-related | 190.2 | 0.8 | 1.1 |
--------------------------------------------------------------------------------
| Equity-related | 98.3 | 3.1 | 3.1 |
--------------------------------------------------------------------------------
| Other derivative instruments | 4.3 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Total | 11,496.2 | 288.2 | 169.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Hedging derivative instruments (EUR | | | |
| million) | | | |
--------------------------------------------------------------------------------
| 30.6.2009 | Total | Assets, | Liabiliti |
| | nominal | fair | es, fair |
| | amount | value | value |
--------------------------------------------------------------------------------
| Fair value hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 2,113.5 | 51.0 | 17.8 |
--------------------------------------------------------------------------------
| Total | 2,113.5 | 51.0 | 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 | 193.2 | 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 | 198.7 | 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
--------------------------------------------------------------------------------
| (EUR million) | 30.6.201 | 31.12.20 | 30.6.2009 |
| | 0 | 09 | |
--------------------------------------------------------------------------------
| Commitments provided to a third party on | | | |
| behalf of the customers | | | |
--------------------------------------------------------------------------------
| Guarantees | 51.0 | 49.9 | 58.3 |
--------------------------------------------------------------------------------
| Other commitments provided to a third | 6.1 | 7.3 | 7.6 |
| party | | | |
--------------------------------------------------------------------------------
| Irrevocable commitments provided on behalf | | | |
| of customers | | | |
--------------------------------------------------------------------------------
| Unused credit arrangements | 550.6 | 506.6 | 538.7 |
--------------------------------------------------------------------------------
| Other commitments provided to a third | 10.5 | 11.7 | 12.8 |
| party | | | |
--------------------------------------------------------------------------------
| Off-balance sheet commitments | 618.3 | 575.5 | 617.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 4 The Group's risk exposure
The Bank Group's capital adequacy
--------------------------------------------------------------------------------
| (EUR million) |
--------------------------------------------------------------------------------
| Summary | 6/2010 | 3/2010 | 12/2009 | 9/2009 | 6/2009 |
--------------------------------------------------------------------------------
| 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 | 3,242. | 3,214.5 | 3,147.5 | 3,220.7 | 3,122.2 |
| credit and counterparty | 6 | | | | |
| risks | | | | | |
--------------------------------------------------------------------------------
| 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. | 3,527.2 | 3,460.2 | 3,493.4 | 3,394.8 |
| | 3 | | | | |
--------------------------------------------------------------------------------
| 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 | | | | | |
| minimum requirement) | | | | | |
--------------------------------------------------------------------------------
1) No capital requirement due to minor trading book and when total of net
currency positions are less than 2% of capital base.
--------------------------------------------------------------------------------
| | | | | (EUR million) |
--------------------------------------------------------------------------------
| | 6/2010 | 3/2010 | 12/2009 | 9/2009 | 6/2009 |
--------------------------------------------------------------------------------
| 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 | -7.4 | -3.7 | -12.9 | -7.5 | -5.0 |
| to 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 |
--------------------------------------------------------------------------------
The Bank Group's risk-weighted exposures
--------------------------------------------------------------------------------
| Total exposure 6/2010 | | | (EUR million) |
--------------------------------------------------------------------------------
| Risk-weight | Balance sheet | Off-balance | Total |
| | items | sheet | |
| | | commitments | |
--------------------------------------------------------------------------------
| 0% | 1,203.8 | 33.4 | 1,237.2 |
--------------------------------------------------------------------------------
| 10% | 1,196.4 | 0.0 | 1,196.4 |
--------------------------------------------------------------------------------
| 20% | 1,119.2 | 286.2 | 1,405.4 |
--------------------------------------------------------------------------------
| 35% | 4,782.4 | 107.7 | 4,890.2 |
--------------------------------------------------------------------------------
| 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 | 9,537.0 | 610.5 | 10,147.5 |
--------------------------------------------------------------------------------
| Derivatives *) | 345.1 | - | 345.1 |
--------------------------------------------------------------------------------
| Total | 9,882.1 | 610.5 | 10,492.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Risk-weighted exposures, Basel 2 | | | (EUR |
| | | | million) |
--------------------------------------------------------------------------------
| Risk-weight | 6/2010 | 3/2010 | 12/2009 | 9/2009 | 6/2009 |
--------------------------------------------------------------------------------
| 0% | - | - | - | - | - |
--------------------------------------------------------------------------------
| 10% | 119.6 | 129.0 | 115.9 | 111.3 | 101.6 |
--------------------------------------------------------------------------------
| 20% | 235.8 | 258.6 | 252.5 | 341.9 | 291.8 |
--------------------------------------------------------------------------------
| 35% | 1,686.8 | 1,633.5 | 1,596.8 | 1,567.2 | 1,516.6 |
--------------------------------------------------------------------------------
| 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 | 3,211.5 | 3,183.9 | 3,123.7 | 3,199.6 | 3,096.0 |
--------------------------------------------------------------------------------
| Derivatives | 31.1 | 30.6 | 23.8 | 21.1 | 26.2 |
| *) | | | | | |
--------------------------------------------------------------------------------
| Total | 3,242.6 | 3,214.5 | 3,147.5 | 3,220.7 | 3,122.2 |
--------------------------------------------------------------------------------
| *) 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 governments 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.
The Bank Group's risk-weighted amount for operational risks
--------------------------------------------------------------------------------
| Year | 20 | 20 | 20 | 200 | | 6/201 | 3/201 | 12/20 | 9/200 | 6/200 |
| | 09 | 08 | 07 | 6 | | 0 | 0 | 09 | 9 | 9 |
--------------------------------------------------------------------------------
| Gross | 20 | 15 | 14 | 140 | | | | | | |
| income | 4. | 0. | 5. | .6 | | | | | | |
| | 7 | 5 | 2 | | | | | | | |
--------------------------------------------------------------------------------
| - average | 16 | 14 | | | | | | | | |
| 3 years | 6. | 5. | | | | | | | | |
| | 8 | 4 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital | | | | | 25.0 | 25.0 | 25.0 | 21.8 | 21.8 |
| requirement for | | | | | | | | | |
| operational | | | | | | | | | |
| risk | | | | | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted | | | | | 312.7 | 312.7 | 312.7 | 272.7 | 272.7 |
| amount, Basel 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
%.
The finance and insurance conglomerate's capital adequacy
--------------------------------------------------------------------------------
| Summary | 6/2010 | 3/2010 | 12/2009 | 9/2009 | 6/2009 |
--------------------------------------------------------------------------------
| Tier 1 capital for the | 422.7 | 396.7 | 400.7 | 388.1 | 375.0 |
| group | | | | | |
--------------------------------------------------------------------------------
| Sector-specific items | 248.3 | 261.5 | 233.2 | 229.4 | 176.4 |
--------------------------------------------------------------------------------
| Intangible assets and | -120.4 | -118.9 | -120.0 | -105.8 | -91.2 |
| other specific reductions | | | | | |
--------------------------------------------------------------------------------
| Other sector-specific not | -1.1 | - | - | - | - |
| transferrable items | | | | | |
--------------------------------------------------------------------------------
| Conglomerate's total | 549.6 | 539.3 | 513.9 | 511.7 | 460.2 |
| capital base | | | | | |
--------------------------------------------------------------------------------
| Capital requirement for | 286.8 | 284.9 | 279.4 | 282.1 | 273.8 |
| banking business | | | | | |
--------------------------------------------------------------------------------
| Capital requirement for | 47.3 | 47.3 | 47.1 | 47.6 | 47.9 |
| insurance business | | | | | |
--------------------------------------------------------------------------------
| Minimum amount for | 334.0 | 332.1 | 326.5 | 329.6 | 321.6 |
| capital base | | | | | |
--------------------------------------------------------------------------------
| Conglomerate's capital | 215.6 | 207.2 | 187.4 | 182.0 | 138.6 |
| adequacy | | | | | |
--------------------------------------------------------------------------------
| Capital adequacy ratio, % | 164.5 % | 162.4 % | 157.4 % | 155.2 % | 143.1 % |
--------------------------------------------------------------------------------
The conglomerate´s capital adequacy is based on consolidation method and is
calculated according to FICO rules and the standards
of Financial Supervision Authority.
Note 5 Net income from insurance business
--------------------------------------------------------------------------------
| (EUR million) | 1-6/2010 | 1-6/2009 | ∆ | 1-12/2009 |
--------------------------------------------------------------------------------
| Income from insurance | 50.3 | 35.9 | 40.2 % | 80.5 |
| premiums | | | | |
--------------------------------------------------------------------------------
| Net income from | 11.6 | -9.7 | - | 0.4 |
| investments | | | | |
--------------------------------------------------------------------------------
| Insurance claims paid | -42.1 | -43.8 | 3.8 % | -79.8 |
--------------------------------------------------------------------------------
| Net change in | -12.6 | 24.7 | - | 12.8 |
| technical provisions | | | | |
--------------------------------------------------------------------------------
| Net income from | 7.1 | 7.0 | 1.4 % | 14.0 |
| life-insurance | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Premium income earned | 30.6 | 29.3 | 4.6 % | 60.6 |
--------------------------------------------------------------------------------
| Net income from | 1.4 | -0.3 | - | 1.6 |
| investments | | | | |
--------------------------------------------------------------------------------
| Insurance claims paid | -20.7 | -21.0 | 1.4 % | -42.2 |
--------------------------------------------------------------------------------
| Change in provisions | -1.0 | -0.7 | -50.1 % | -4.7 |
| for outstanding | | | | |
| claims | | | | |
--------------------------------------------------------------------------------
| Net income from | 10.3 | 7.4 | 39.1 % | 15.2 |
| non-life insurance | | | | |
--------------------------------------------------------------------------------
Note 6 businesses acquired
Aktia Plc has not acquired any new entities during the first six months of 2010.
The merger with Veritas Non-Life Insurance was concluded on 1 January 2009,
where after the non-life insurance business has been operated by Aktia Non-Life
Insurance, a 100%-owned subsidiary of Aktia plc. As merger compensation, Aktia
plc issued 6,800,000 new shares. The non-life insurance business' acquisition
balance sheet was presented in Note 4 in the financial statements 31.12.2009.
Helsinki 12 August 2010
AKTIA PLC
Board of Directors
To the Board of Directors of Aktia p.l.c.
REVIEW REPORT ON THE INTERIM REPORT OF AKTIA 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 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 conducted 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 2009
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
Fax +358 10 247 6249
Investor Relations Manager Anna Gabrán
tel. +358 10 247 6501
ir(at)aktia.fi
Website: www.aktia.fi
Contact address: aktia(at)aktia.fi
E-mail logic: first
name.surname(at)aktia.fi
