Aktia Bank plc: Accounts Announcement 1.1-31.12.2015
Aktia Bank plc
Accounts Announcement 1.1-31.12.2015
12.2.2016 at 8.00 a.m.
GOOD RESULT DUE TO INCREASE IN COMMISSION INCOME
CEO JUSSI LAITINEN
”Aktia achieved a good result despite the tougher market situation with negative market interest rates and uncertainty on the capital markets at the end of the year. We have managed to compensate for lower net interest income through an increase in commission income. Despite the challenges faced in the project to renew our core banking platform, we look forward to a full-scale implementation of the system in the second half of 2016. At the beginning of the year, Aktia was granted permission to apply IRBA, consequently our capital adequacy rose to a high level. The strong capital adequacy enables us both to focus on future growth and to maintain a good dividend pay-out. At present, Aktia intensifies efforts within mobile services in order to improve accessibility and offer first class customer service also in the future.”
OCTOBER-DECEMBER 2015: OPERATING PROFIT EUR 11.1 (12.6) MILLION
• The Group’s operating profit was EUR 11.1 (12.6) million and the profit was EUR 8.7 (10.4) million.
• Net commission income amounted to EUR 18.9 (18.9) million. Net interest income (NII) was EUR 23.7 (25.3) million.
• Earnings per share (EPS) was EUR 0.13 (0.14).
JANUARY-DECEMBER 2015: OPERATING PROFIT EUR 64.2 (68.3) MILLION
• The Group’s operating profit was EUR 64.2 (68.3) million and the profit was EUR 51.6 (55.0) million.
• Net commission income strengthened by 7% to EUR 80.0 (74.9) million. Net interest income (NII) dropped by 5% to EUR 97.3 (102.8) million.
• Earnings per share (EPS) was EUR 0.78 (0.79).
• The Board of Directors proposes a dividend of EUR 0.54 per share and a return of capital of EUR 0.10 per share.
• The transition to IRB approach increased Aktia’s Common Equity Tier 1 capital ratio to 20.7 (14.6)%.
• Equity per share stood at EUR 9.26 (9.39).
• Write-downs on credits and other commitments continued low and stood at EUR -0.3 (-1.7) million.
• OUTLOOK 2016 (new, p. 15): Aktias operating profit for 2016 is expected to reach an approximately similar level as in 2015.
| KEY FIGURES (EUR million) | 4Q2015 | 4Q2014 | ∆ % | 2015 | 2014 | ∆ % | 3Q2015 | ∆ % | 2Q2015 | 1Q2015 |
| Net interest income | 23.7 | 25.3 | -6% | 97.3 | 102.8 | -5% | 23.8 | 0% | 24.3 | 25.5 |
| Net commission income | 18.9 | 18.9 | 0% | 80.0 | 74.9 | 7% | 19.7 | -4% | 21.7 | 19.7 |
| Total operating income | 51.9 | 51.7 | 0% | 208.4 | 212.3 | -2% | 49.3 | 5% | 54.0 | 53.1 |
| Total operating expenses | -40.5 | -39.3 | 3% | -144.4 | -144.5 | 0% | -32.4 | 25% | -35.8 | -35.7 |
| Write-downs on credits and other commitments | -0.3 | 0.0 | - | -0.3 | -1.7 | -80% | -0.5 | -44% | 1.5 | -1.0 |
| Operating profit | 11.1 | 12.6 | -12% | 64.2 | 68.3 | -6% | 16.4 | -32% | 19.7 | 17.0 |
| Cost-to-income ratio | 0.78 | 0.76 | 3% | 0.69 | 0.68 | 1% | 0.66 | 18% | 0.66 | 0.67 |
| Earnings per share (EPS), EUR | 0.13 | 0.14 | -4% | 0.78 | 0.79 | -1% | 0.20 | -35% | 0.25 | 0.20 |
| Equity per share (NAV)1, EUR | 9.26 | 9.39 | -1% | 9.26 | 9.39 | -1% | 9.20 | 1% | 9.05 | 9.59 |
| Return on equity (ROE), % | 5.4 | 6.0 | -11% | 7.9 | 8.3 | -5% | 8.0 | -32% | 9.6 | 7.5 |
| Common Equity Tier 1 capital ratio1, % | 20.7 | 14.6 | 42% | 20.7 | 14.6 | 42% | 20.5 | 1% | 22.4 | 22.6 |
| Capital adequacy ratio1, % | 27.1 | 19.1 | 42% | 27.1 | 19.1 | 42% | 25.8 | 5% | 27.7 | 27.1 |
| Write-downs on credits / total loan book, % | 0.00 | 0.00 | - | 0.01 | 0.03 | -67% | 0.01 | -100% | -0.02 | 0.02 |
| Dividend per share (*proposal from Board of Directors) | 0.54* | 0.48 | 13% | |||||||
| Return of capital per share (*proposal from Board of Directors) | 0.10* | - | - | |||||||
| 1) At the end of the period. Starting from the fourth quarter of 2015, the cost-to-income ratio calculates for the whole Group. The comparative figure have been recalculated correspondingly. | ||||||||||
| The Accounts Announcement January - December 2015 is a translation of the original Swedish version ”Bokslutskommuniké 1.1-31.12.2015”. In case of discrepancies, the Swedish version shall prevail. | ||||||||||
Calendar 2016:
Annual General Meeting 2016 12 April 2016
Interim report Jan - March 2016 10 May 2016
Interim report Jan - June 2016 10 August 2016
Interim report Jan - Sep 2016 17 November 2016
CEO Jussi Laitinen, tel. +358 10 247 6250
CFO Fredrik Westerholm, tel. +358 10 247 6505
Head of Investor Relations Anna Virkola-Gabrán, tel. +358 10 247 6501, ir@aktia.fi