Aktia Bank plc: Aktia Bank plc’s financial position and profit for the period January - 30 September 2012
Aktia Bank plc’s financial position and profit for the period January - 30 September 2012
Aktia Bank plc publishes information on the bank’s financial performance and financial position as the parent company of the bank, Aktia plc, publishes its Interim Report for the period 1 January - 30 September 2012. The information published is not an Interim Report as stipulated in the Securities Markets Act.
In 2013, a merger of the holding company Aktia plc with Aktia Bank plc is planned, as well as listing of the new parent company Aktia Bank plc on the stock exchange.
All information concerns Aktia Bank Group unless specified otherwise.
| Key figures | |||||||||
| (EUR million) | 7-9/2012 | 7-9/2011 | ∆ % | 1-9/2012 | 1-9/2011 | ∆ % | 4-6/2012 | 1-3/2012 | 2011 |
| Earnings per share (EPS) | 2.3 | 1.8 | 24% | 8.4 | 7.5 | 13% | 3.2 | 2.9 | 8.2 |
| Equity per share (NAV) 1) | 139.9 | 106.7 | 31% | 139.9 | 106.7 | 31% | 127.5 | 130.9 | 106.4 |
| Return on equity (ROE), % | 6.1 | 5.7 | 6% | 8.0 | 8.2 | -2% | 8.8 | 8.8 | 6.8 |
| Total earnings per share | 12.4 | 3.7 | 239% | 30.2 | 2.6 | - | 3.3 | 14.5 | 2.0 |
| Number of shares at the end of the period 1) | 3 | 3 | 0% | 3 | 3 | 0% | 3 | 3 | 3 |
| Personnel (FTEs), average number of employees from the beginning of the financial year 1) | 753 | 774 | -3% | 753 | 774 | -3% | 764 | 771 | 774 |
| Banking Business (incl. Private Banking) | |||||||||
| Cost-to-income ratio | 0.69 | 0.79 | -13% | 0.69 | 0.72 | -4% | 0.69 | 0.68 | 0.73 |
| Borrowing from the public 1) | 3,666.1 | 3,600.3 | 2% | 3,666.1 | 3,600.3 | 2% | 3,732.5 | 3,700.8 | 3,662.2 |
| Lending to the public 1) | 7,301.0 | 6,990.5 | 4% | 7,301.0 | 6,990.5 | 4% | 7,269.5 | 7,239.5 | 7,117.1 |
| Capital adequacy ratio, % 1) | 19.9 | 16.6 | 20% | 19.9 | 16.6 | 20% | 18.9 | 18.1 | 16.2 |
| Tier 1 capital ratio, % 1) | 11.8 | 10.8 | 9% | 11.8 | 10.8 | 9% | 11.7 | 11.3 | 10.6 |
| Risk-weighted commitments 1) | 3,727.9 | 3,643.1 | 2% | 3,727.9 | 3,643.1 | 2% | 3,742.0 | 3,767.3 | 3,694.0 |
| Asset Management | |||||||||
| Mutual fund volume 1) | 4,246.7 | 3,379.2 | 26% | 4,246.7 | 3,379.2 | 26% | 4,107.4 | 4,140.0 | 3,613.4 |
| Managed and brokered assets 1) | 7,413.3 | 6,204.6 | 19% | 7,413.3 | 6,204.6 | 19% | 7,233.9 | 7,174.6 | 6,624.1 |
| 1)) At the end of the period |
Formulas for key figures are presented in Aktia Bank plc’s Annual Report 2011 on page 6.
| Consolidated income statement for Bank Group | ||||
| (EUR million) | 1-9/2012 | 1-9/2011 | ∆ % | 2011 |
| Net interest income | 87.4 | 98.0 | -11% | 128.2 |
| Dividends | 0.1 | 0.1 | -40% | 0.2 |
| Commission income | 57.3 | 54.0 | 6% | 71.4 |
| Commission expenses | -12.5 | -13.4 | 7% | -17.5 |
| Net commission income | 44.9 | 40.6 | 10% | 54.0 |
| Net income from financial transactions | -0.2 | -8.7 | 98% | -9.3 |
| Net income from investment properties | -0.1 | 0.0 | -106% | -0.1 |
| Other operating income | 3.6 | 3.3 | 10% | 4.6 |
| Total operating income | 135.7 | 133.3 | 2% | 177.6 |
| Staff costs | -38.6 | -38.6 | 0% | -52.9 |
| IT-expenses | -15.1 | -14.8 | 3% | -19.9 |
| Depreciation of tangible and intangible assets | -2.4 | -3.0 | -22% | -4.0 |
| Other operating expenses | -37.5 | -38.9 | -4% | -53.0 |
| Total operating expenses | -93.6 | -95.3 | -2% | -129.7 |
| Write-down on other financial assets | -1.8 | - | - | - |
| Write-down on credits and other commitments | -4.6 | -6.3 | -27% | -10.5 |
| Share of profit from associated companies | -0.5 | 0.0 | - | 0.0 |
| Operating profit | 35.2 | 31.6 | 11% | 37.4 |
| Income and expenses from other activities | - | - | - | -3.9 |
| Taxes | -9.2 | -8.3 | 11% | -7.8 |
| Profit for the period | 26.0 | 23.3 | 11% | 25.7 |
| Attributable to: | ||||
| Shareholders in Aktia Bank plc | 25.3 | 22.4 | 13% | 24.7 |
| Non-controlling interest | 0.6 | 0.9 | -29% | 1.0 |
| Total | 26.0 | 23.3 | 11% | 25.7 |
| Earnings per share (EPS), EUR | 8,442,627.57 | 7,470,051.90 | 13% | 8,239,314.30 |
| There is no dilution effect to earnings per share | ||||
| Consolidated statement of comprehensive income for Bank Group | ||||
| (EUR million) | 1-9/2012 | 1-9/2011 | ∆ % | 2011 |
| Profit for the period | 26.0 | 23.3 | 11% | 25.7 |
| Other comprehensive income after taxes: | ||||
| Change in valuation of fair value for financial assets available for sale | 72.3 | -14.8 | - | -19.2 |
| Change in valuation of fair value for cash flow hedging | -6.5 | 0.1 | - | -0.2 |
| Transferred to the income statement for financial assets available for sale | - | - | - | 0.4 |
| Comprehensive income from items which can be transferred to the income statement | 65.9 | -14.7 | - | -19.0 |
| Defined benefit plan pensions | - | - | - | -0.3 |
| Comprehensive income from items which can not be transferred to the income statement | - | - | - | -0.3 |
| Total comprehensive income for the period | 91.8 | 8.6 | 967% | 6.4 |
| Total comprehensive income attributable to: | ||||
| Shareholders in Aktia Bank plc | 90.6 | 7.7 | - | 6.0 |
| Non-controlling interest | 1.2 | 0.9 | 32% | 0.4 |
| Total | 91.8 | 8.6 | 967% | 6.4 |
| Total earnings per share, EUR | 30,203,043.59 | 2,560,447.72 | - | 2,002,733.92 |
| Consolidated balance sheet for Bank Group | ||||
| (EUR million) | 30.9.2012 | 31.12.2011 | ∆ % | 30.9.2011 |
| Assets | ||||
| Cash and balances with central banks | 236.1 | 466.3 | -49% | 298.3 |
| Interest-bearing securities | 2,025.2 | 1,874.4 | 8% | 1,904.7 |
| Shares and participations | 8.0 | 1.8 | 344% | 2.0 |
| Financial assets available for sale | 2,033.2 | 1,876.2 | 8% | 1,906.6 |
| Financial assets held until maturity | 10.1 | 20.0 | -50% | 20.0 |
| Derivative instruments | 395.7 | 300.7 | 32% | 264.2 |
| Lending to Bank of Finland and credit institutions | 167.8 | 88.8 | 89% | 59.8 |
| Lending to the public and public sector entities | 7,301.0 | 7,117.1 | 3% | 6,990.5 |
| Loans and other receivables | 7,468.8 | 7,205.8 | 4% | 7,050.3 |
| Investments in associated companies | 0.8 | 3.5 | -76% | 3.5 |
| Intangible assets | 2.3 | 2.3 | 2% | 2.3 |
| Investment properties | 0.7 | 0.7 | 0% | 0.0 |
| Other tangible assets | 4.5 | 5.3 | -15% | 5.8 |
| Accured income and advance payments | 71.6 | 70.6 | 1% | 68.8 |
| Other assets | 6.9 | 7.6 | -9% | 8.2 |
| Total other assets | 78.5 | 78.2 | 0% | 77.0 |
| Income tax receivables | 3.8 | 22.3 | -83% | 16.5 |
| Deferred tax receivables | 0.3 | 11.9 | -97% | 11.1 |
| Tax receivables | 4.1 | 34.2 | -88% | 27.6 |
| Total assets | 10,234.8 | 9,993.1 | 2% | 9,655.7 |
| Liabilities | ||||
| Liabilities to credit institutions | 1,097.3 | 1,112.1 | -1% | 945.2 |
| Liabilities to the public and public sector entities | 3,666.1 | 3,662.2 | 0% | 3,600.3 |
| Deposits | 4,763.4 | 4,774.3 | 0% | 4,545.5 |
| Derivative instruments | 196.6 | 160.6 | 22% | 153.1 |
| Debt securities issued | 3,743.7 | 3,811.5 | -2% | 3,707.4 |
| Subordinated liabilities | 295.4 | 288.7 | 2% | 288.5 |
| Other liabilities to credit institutions | 395.1 | 353.5 | 12% | 395.7 |
| Other liabilities to the public and public sector entities | 162.8 | 51.7 | 215% | 31.6 |
| Other financial liabilitites | 4,596.9 | 4,505.4 | 2% | 4,423.2 |
| Accured expenses and income received in advance | 96.4 | 102.6 | -6% | 95.7 |
| Other liabilities | 53.9 | 44.4 | 21% | 28.5 |
| Total other liabilities | 150.3 | 147.0 | 2% | 124.2 |
| Income tax liabilities | 0.9 | 0.0 | - | 0.6 |
| Deferred tax liabilities | 42.2 | 28.9 | 46% | 30.6 |
| Tax liabilities | 43.0 | 29.0 | 49% | 31.2 |
| Total liabilities | 9,750.3 | 9,616.3 | 1% | 9,277.2 |
| Equity | ||||
| Restricted equity | 218.9 | 153.6 | 42% | 157.4 |
| Unrestricted equity | 200.8 | 165.5 | 21% | 162.9 |
| Shareholders’ share of equity | 419.7 | 319.1 | 32% | 320.2 |
| Non-controlling interest’s share of equity | 64.8 | 57.7 | 12% | 58.2 |
| Equity | 484.5 | 376.8 | 29% | 378.5 |
| Total liabilities and equity | 10,234.8 | 9,993.1 | 2% | 9,655.7 |
| Consolidated statement of changes in equity | |||||||||
| Fund for | Shareholders' | Non-controlling | |||||||
| Other restricted | Fund at | share-based | Unrestricted | Retained | share of | interest's share | Total | ||
| (EUR million) | Share capital | equity | fair value | payments | equity reserve | earnings | equity | of equity | equity |
| Equity as at 1January 2011 | 93,9 | 10,3 | 22,5 | 0,8 | 72,7 | 253,0 | 453,0 | 44,3 | 497,3 |
| Divestment of own shares | 0,2 | 0,2 | 0,2 | ||||||
| Dividens to shareholders | -19,9 | -19,9 | -19,9 | ||||||
| Profit for the period | 27,7 | 27,7 | 0,9 | 28,6 | |||||
| Financial assets available for sale | -1,2 | -1,2 | 0,1 | -1,1 | |||||
| Cash flow hedging | 0,2 | 0,2 | 0,0 | 0,1 | |||||
| Total comprehensive income for the period | -1,0 | 27,7 | 26,7 | 0,9 | 27,6 | ||||
| Other change in equity | -0,7 | -0,7 | 13,0 | 12,4 | |||||
| Equity as at 30 September 2011 | 93,9 | 10,3 | 21,5 | 0,1 | 72,7 | 260,8 | 459,2 | 58,2 | 517,5 |
| Equity as at 1January 2012 | 93,9 | 10,3 | 19,1 | 0,2 | 72,7 | 269,9 | 466,0 | 57,7 | 523,8 |
| Divestment of own shares | 0,0 | 0,0 | 0,0 | ||||||
| Dividens to shareholders | -20,0 | -20,0 | -20,0 | ||||||
| Profit for the period | 43,1 | 43,1 | 0,6 | 43,7 | |||||
| Financial assets available for sale | 95,9 | 95,9 | 0,2 | 96,1 | |||||
| Cash flow hedging | -6,9 | -6,9 | 0,4 | -6,5 | |||||
| Total comprehensive income for the period | 89,0 | 43,1 | 132,1 | 1,2 | 133,3 | ||||
| Other change in equity | 0,7 | 0,7 | 5,9 | 6,6 | |||||
| Equity as at 30 September 2012 | 93,9 | 10,3 | 108,1 | 0,9 | 72,7 | 293,1 | 578,9 | 64,8 | 643,7 |
| Consolidated cash flow statement for Bank Group | ||||
| (EUR million) | 1-9/2012 | 1-9/2011 | ∆ % | 2011 |
| Cash flow from operating activities | ||||
| Operating profit | 35.2 | 31.6 | 11% | 37.4 |
| Adjustment items not included in cash flow for the period | 4.0 | 16.4 | -75% | 20.1 |
| Unwinded cash flow hedging | 9.1 | - | - | 17.6 |
| Paid income taxes | 13.6 | -29.0 | - | -36.0 |
| Cash flow from operating activities before change in operating receivables and liabilities | ||||
| 62.0 | 19.1 | 225% | 39.0 | |
| Increase (-) or decrease (+) in receivables from operating activities | -312.4 | 368.5 | - | 198.1 |
| Increase (+) or decrease (-) in liabilities from operating activities | 4.6 | -340.3 | - | -36.3 |
| Total cash flow from operating activities | -245.9 | 47.3 | - | 200.9 |
| Cash flow from investing activities | ||||
| Financial assets held until maturity | 9.9 | 1.4 | 595% | 1.4 |
| Proceeds from sale of group companies and associated companies | 0.0 | 0.3 | - | 0.3 |
| Investment in tangible and intangible assets | -1.9 | -2.4 | 23% | -2.8 |
| Disposal of tangible and intangible assets | 0.0 | 0.2 | -79% | 0.2 |
| Total cash flow from investing activities | 8.1 | -0.5 | - | -1.0 |
| Cash flow from financing activities | ||||
| Subordinated liabilities | 5.4 | 3.3 | 60% | 3.6 |
| Increase in unrestricted equity reserve | 30.0 | - | - | - |
| Share issue / dividend of Aktia Real Estate Mortgage Bank plc to the non-controlling interest | 5.9 | 13.5 | -57% | 13.5 |
| Paid dividends | -20.0 | -20.0 | 0% | -20.0 |
| Total cash flow from financing activities | 21.2 | -3.1 | - | -2.9 |
| Change in cash and cash equivalents | -216.6 | 43.6 | - | 197.0 |
| Cash and cash equivalents at the beginning of the year | 473.0 | 275.9 | 71% | 275.9 |
| Cash and cash equivalents at the end of the period | 256.3 | 319.5 | -20% | 473.0 |
| Cash and cash equivalents in the cash flow statement consist of the following items: | ||||
| Cash in hand | 8.2 | 8.3 | -1% | 9.5 |
| Bank of Finland current account | 228.0 | 290.0 | -21% | 456.8 |
| Repayable on demand claims on credit institutions | 20.2 | 21.3 | -5% | 6.6 |
| Total | 256.3 | 319.5 | -20% | 473.0 |
| Adjustment items not included in cash flow consist of: | ||||
| Write-downs on other financial assets | 1.8 | - | - | - |
| Write-downs on credits and other commitments | 4.6 | 6.3 | -27% | 10.5 |
| Change in fair values | 2.4 | 6.5 | -63% | 7.2 |
| Depreciation and impairment of intangible and tangible assets | 2.4 | 3.0 | -22% | 4.0 |
| Share of profit from associated companies | 0.9 | 0.3 | 196% | 0.3 |
| Sales gains and losses from intangible and tangible assets | 0.2 | 0.6 | -74% | 0.6 |
| Unwinded cash flow hedging | -8.2 | - | - | -2.5 |
| Other adjustments | - | -0.4 | - | 0.0 |
| Total | 4.0 | 16.4 | -75% | 20.1 |
The segments operating profit
The Bank Group has three segments; Banking Business, Asset Management and Miscellaneous.
Banking Business comprises Aktia Bank plc’s branch office and corporate functions as well as Treasury and the subsidiaries Aktia Real Estate Mortgage Bank plc, Aktia Kort Ab and Aktia Corporate Finance Ltd.
Asset Management comprises Aktia Bank plc’s Private Banking and the subsidiaries Aktia Asset Management Ltd, Aktia Fund Management Company Ltd and Aktia Invest Ltd.
Miscellaneous comprises administration of Aktia Bank plc and return on equity.
| Operating profit (EUR million) | 7-9/2012 | 7-9/2011 | ∆ % |
| Banking Business | 9.9 | 6.2 | 59% |
| Asset Management | 2.9 | 1.4 | 117% |
| Miscellaneous | -2.7 | -0.4 | -588% |
| Eliminations | -0.3 | 0.0 | - |
| Total | 9.8 | 7.2 | 36% |
| Operating profit (EUR million) | 1-9/2012 | 1-9/2011 | ∆ % |
| Banking Business | 33.5 | 31.4 | 7% |
| Asset Management | 7.2 | 4.4 | 63% |
| Miscellaneous | -4.5 | -1.3 | -241% |
| Eliminations | -1.1 | -2.9 | 63% |
| Total | 35.2 | 31.6 | 11% |
Net interest income
| (EUR million) | 1-9/2012 | 1-9/2011 | ∆ % | 2011 |
| Deposits and lending | 43.6 | 47.1 | -7% | 63.0 |
| Hedging, interest rate risk management | 21.8 | 27.9 | -22% | 34.8 |
| Other | 21.9 | 23.0 | -5% | 30.3 |
| Net interets income | 87.4 | 98.0 | -11% | 128.2 |
The impact of fixed rate investment is divided into two components consisting of interest rate risk and credit risk. The interest rate risk component is included in ”Hedging of interest rate risk” whereas the credit risk component is booked as a part of ”Other net interest income”.
Credit stock
Chart 1. Credit stock by sector
| (EUR million) | 30.9.2012 | 31.12.2011 | ∆ | Share, % |
| Households | 6,224.6 | 5,965.6 | 259.0 | 85.3,% |
| Corporate | 754.3 | 811.6 | -57.3 | 10.3,% |
| Housing associations | 278.3 | 288.7 | -10.4 | 3.8,% |
| Non-profit organisations | 39.0 | 45.2 | -6.2 | 0.5,% |
| Public sector entities | 4.8 | 6.0 | -1.2 | 0.1,% |
| Total | 7 ,301.0 | 7,117.1 | 184.0 | 100.0% |
| Chart 2. Gross loans and write-downs (EUR million) | 30.9.2012 | 30.6.2012 | 31.3.2012 | 31.12.2011 |
| Gross loans | 7,364.7 | 7,334.0 | 7,303.2 | 7,180.3 |
| Individual write-downs | -47.8 | -50.2 | -49.5 | -49.2 |
| Of which made to non-performing loans past due at least 90 days | -39.4 | -42.0 | -42.7 | -39.2 |
| Of which made to other loans | -8.4 | -8.2 | -6.9 | -10.0 |
| Write-downs by group | -15.9 | -14.2 | -14.1 | -14.0 |
| Net loans, balance amount | 7 ,301.0 | 7,269.5 | 7,239.5 | 7,117.1 |
Total write-downs on credits amounted to 0.06 (0.09)% of total lending for the period. The corresponding impact on corporate loans amounted to
0.5 (0.7)% of the total corporate lending.
Chart 3. Undischarged debts by time overdue
| (EUR million) Days | 30.9.2012 | % of stock | 30.9.2011 | % of stock | 2011 |
| 1-30 | 138 | 1.88 | 209 | 2.97 | 160 |
| of which households | 118 | 1.61 | 144 | 2.05 | 115 |
| 31-89 | 54 | 0.74 | 61 | 0.87 | 53 |
| of which households | 36 | 0.49 | 47 | 0.66 | 46 |
| 90- * | 53 | 0.72 | 56 | 0.80 | 60 |
| of which households | 38 | 0.52 | 39 | 0.56 | 36 |
Specification of the fund at fair value
| (EUR million) | 30.9.2012 | 31.12.2011 | ∆ | |
| Shares and participations | 5.0 | - | 5.0 | |
| Direct interest-bearing securities | 31.9 | -34.9 | 66.7 | |
| Cash flow hedging | 19.0 | 25.5 | -6.5 | |
| Fund at fair value, total | 55.9 | -9.4 | 65.3 | |
The Bank Group’s liquidity portfolio
The Bank Group’s liquidity portfolio and other interest-bearing investments
| Aktia Bank Group | Goverment and Govt. quaranteed | Covered Bonds (CB) | Financial institutions exkl. CB | Corporate bonds | Real estate | Alternative investments | Listed Equity | Total | ||||||||
| 9/12 | 2011 | 9/12 | 2011 | 9/12 | 2011 | 9/12 | 2011 | 9/12 | 2011 | 9/12 | 2011 | 9/12 | 2011 | 9/12 | 2011 | |
| EU AAA | 136 | 145 | 1,269 | 916 | 286 | 309 | 12 | - | - | - | - | - | - | - | 1,703 | 1,370 |
| Finland | 132 | 61 | 233 | 111 | 43 | 37 | - | - | - | - | - | - | - | 407 | 210 | |
| Other AAA-countries | 4 | 84 | 1,037 | 805 | 243 | 272 | 12 | - | - | - | - | - | - | - | 1,296 | 1,161 |
| EU < AAA | - | 51 | 183 | 352 | - | 37 | - | 2 | - | - | - | - | - | - | 183 | 442 |
| Belgium | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Greece | - | - | - | 2 | - | - | - | - | - | - | - | - | - | - | - | 2 |
| Ireland | - | - | 30 | 27 | - | - | - | - | - | - | - | - | - | - | 30 | 27 |
| Italy | - | - | 46 | 60 | - | - | - | - | - | - | - | - | - | - | 46 | 60 |
| Portugal | - | 22 | 54 | 76 | - | 8 | - | 1 | - | - | - | - | - | - | 54 | 107 |
| Spain | - | 29 | 52 | 187 | - | 29 | - | 1 | - | - | - | - | - | - | 52 | 246 |
| Other countries | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Europe excluding EU | - | - | 232 | 50 | 12 | 30 | - | - | - | - | - | - | - | - | 244 | 80 |
| North America | - | - | 23 | 33 | - | - | - | - | - | - | - | - | - | - | 23 | 33 |
| Other OECD-countries | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Supernationals | - | - | - | - | 45 | 43 | - | - | - | - | - | - | - | - | 45 | 43 |
| Others | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Total | 136 | 197 | 1,706 | 1,350 | 343 | 419 | 12 | 2 | - | - | - | - | - | - | 2,197 | 1,968 |
Rating distribution for banking business’ liquidity portfolio
| 30.9.2012 | 31.12.2011 | |
| (EUR million) | 2,197 | 1,968 |
| Aaa | 55.9% | 55.6% |
| Aa1-Aa3 | 26.3% | 21.9% |
| A1-A3 | 9.0% | 11.9% |
| Baa1-Baa3 | 4.5% | 6.3% |
| Ba1-Ba3 | 0.4% | 1.9% |
| B1-B3 | 0.0% | 0.0% |
| Caa1 or lower | 0.0% | 0.0% |
| Finnish municipalities (unrated) | 3.9% | 2.1% |
| No rating | 0.0% | 0.3% |
| Total | 100.0% | 100.0% |
Capital adequacy
| Capital adequacy | 30.9.2012 | 31.12.2011 | 30.9.2011 |
| Bank Group | |||
| Capital adequacy | 19.9% | 16.2% | 16.6% |
| Tier 1 ratio | 11.8% | 10.6% | 10.8% |
| Aktia Bank | |||
| Capital adequacy | 27.6% | 22.3% | 22.1% |
| Tier 1 ratio | 16.2% | 14.6% | 14.3% |
| Aktia Real Estate Mortgage Bank | |||
| Capital adequacy | 10.9% | 10.2% | 10.7% |
| Tier 1 ratio | 9.4% | 8.5% | 9.0% |
| Risk exposures for Bank Group | |||||
| Consolidated capital adequacy for Bank Group | |||||
| Summary (EUR million) | 9/2012 | 6/2012 | 3/2012 | 12/2011 | 9/2011 |
| Tier 1 capital | 440.4 | 437.9 | 427.1 | 392.6 | 393.4 |
| Tier 2 capital | 302.1 | 268.0 | 254.5 | 206.4 | 210.3 |
| Capital base | 742.5 | 705.9 | 681.6 | 599.1 | 603.7 |
| Risk-weighted amount for credit and counterpart risks | 3,355.6 | 3,369.6 | 3,395.0 | 3,321.6 | 3,294.4 |
| Risk-weighted amount for market risks 1) | - | - | - | - | - |
| Risk-weighted amount for operational risks | 372.3 | 372.3 | 372.3 | 372.3 | 348.6 |
| Risk-weighted commitments | 3,727.9 | 3,742.0 | 3,767.3 | 3,694.0 | 3,643.1 |
| Capital adequacy ratio, % | 19.9 | 18.9 | 18.1 | 16.2 | 16.6 |
| Tier 1 Capital ratio, % | 11.8 | 11.7 | 11.3 | 10.6 | 10.8 |
| Minimum capital requirement | 298.2 | 299.4 | 301.4 | 295.5 | 291.4 |
| Capital buffer (difference between capital base and minimum requirement) | 444.3 | 406.5 | 380.2 | 303.5 | 312.3 |
| 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) | 9/2012 | 6/2012 | 3/2012 | 12/2011 | 9/2011 |
| Share capital | 163.0 | 163.0 | 163.0 | 163.0 | 163.0 |
| Funds | 74.6 | 74.6 | 74.5 | 44.6 | 44.6 |
| Non-controlling interest | 64.8 | 64.0 | 58.3 | 57.7 | 58.2 |
| Retained earnings | 100.9 | 100.9 | 100.0 | 96.2 | 95.9 |
| Profit for the period | 25.3 | 18.4 | 8.8 | 24.7 | 22.4 |
| ./. provision for dividends to shareholders | -15.9 | -10.6 | -5.3 | -21.3 | -15.8 |
| Capital loan | 30.0 | 30.0 | 30.0 | 30.0 | 30.0 |
| Total | 442.8 | 440.3 | 429.3 | 394.9 | 398.3 |
| ./. intangible assets | -2.3 | -2.4 | -2.2 | -2.3 | -4.9 |
| Tier 1 capital | 440.4 | 437.9 | 427.1 | 392.6 | 393.4 |
| Fund at fair value | 36.9 | 4.4 | 2.9 | -34.9 | -31.5 |
| Upper Tier 2 loans | 45.0 | 45.0 | 45.0 | 45.0 | 45.0 |
| Lower Tier 2 loans | 220.2 | 218.6 | 206.6 | 196.3 | 196.7 |
| Tier 2 capital | 302.1 | 268.0 | 254.5 | 206.4 | 210.3 |
| Total capital base | 742.5 | 705.9 | 681.6 | 599.1 | 603.7 |
| Risk-weighted commitments, credit and counterparty risks | ||||||
| Total exposures 9/2012 | ||||||
| Risk-weight | Balance assets | Off-balance sheet commitments | Total | |||
| 0 % | 944.4 | 19.1 | 963.5 | |||
| 10 % | 1,335.8 | - | 1,335.8 | |||
| 20 % | 688.7 | 185.0 | 873.7 | |||
| 35 % | 5,756.6 | 64.6 | 5,821.2 | |||
| 50 % | 0.5 | - | 0.5 | |||
| 75 % | 555.9 | 97.2 | 653.2 | |||
| 100 % | 538.6 | 61.0 | 599.5 | |||
| 150 % | 13.2 | 0.8 | 14.0 | |||
| Total | 9,833.6 | 427.7 | 10,261.4 | |||
| Derivatives *) | 456.9 | - | 456.9 | |||
| Total | 10,290.5 | 427.7 | 10,718.3 | |||
| *) derivative agreements credit conversion factor | ||||||
| Risk-weighted exposures | (EUR million) | |||||
| Risk-weight | 9/2012 | 6/2012 | 3/2012 | 12/2011 | 9/2011 | |
| 0 % | - | - | - | - | - | |
| 10 % | 133.6 | 120.8 | 125.6 | 105.1 | 103.8 | |
| 20 % | 145.6 | 155.5 | 163.9 | 146.6 | 158.9 | |
| 35 % | 2 023.4 | 2,008.1 | 1,990.4 | 1,943.7 | 1,898.3 | |
| 50 % | 0.3 | 0.3 | 0.3 | 0.3 | 0.4 | |
| 75 % | 437.9 | 439.9 | 437.2 | 450.9 | 458.0 | |
| 100 % | 567.8 | 590.0 | 614.5 | 601.8 | 616.6 | |
| 150 % | 20.3 | 28.5 | 35.3 | 40.1 | 30.1 | |
| Total | 3 328.8 | 3,343.2 | 3,367.3 | 3,288.4 | 3,266.0 | |
| Derivatives *) | 26.8 | 26.5 | 27.7 | 33.2 | 28.4 | |
| Total | 3 355.6 | 3,369.6 | 3,395.0 | 3,321.6 | 3,294.4 | |
| *) derivative agreements credit conversion factor | ||||||
| In capital adequacy measurement to determine the exposure’s risk weight, Aktia applies credit rating by Moody’s Investors Service or Standard & Poor’s to receivables from central goverments and central banks, credit institutions, investment firms, corporates and covered bonds. The risk weight for bank exposures and bonds secured by real estate is determined by the credit rating of the country where the institution is located. | ||||||
| Risk-weighted amounts for operational risks | |||||||||
| 2011 | 2010 | 2009 | 9/2012 | 6/2012 | 3/2012 | 12/2011 | 9/2011 | ||
| Gross income | 187.8 | 208.5 | 199.4 | ||||||
| - average 3 years | 198.6 | ||||||||
| Capital requirement for operational risk | 29.8 | 29.8 | 29.8 | 29.8 | 27.9 | ||||
| Risk-weighted amount | 372.3 | 372.3 | 372.3 | 372.3 | 348.6 | ||||
| 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%. | |||||||||
| Derivatives and off-balance sheet commitments | |||
| Derivative instruments at 30 September 2012 (EUR million) | Assets, fair value | Liabilities, fair value | |
| Total nominal amount | |||
| Hedging derivative instruments | |||
| Fair value hedging | |||
| Interet rate-related | 3,757.0 | 234.4 | 37.6 |
| Total | 3,757.0 | 234.4 | 37.6 |
| Cash flow hedging | |||
| Interest rate-related | 430.0 | 9.9 | 0.0 |
| Total | 430.0 | 9.9 | 0.0 |
| Derivative instruments valued via the income statement | |||
| Interest rate-related *) | 4,838.2 | 149.1 | 156.7 |
| Currency-related | 77.5 | 0.1 | 0.1 |
| Equity-related **) | 104.1 | 2.0 | 2.0 |
| Other derivative instruments **) | 21.0 | 0.1 | 0.1 |
| Total | 5,040.8 | 151.3 | 158.9 |
| Total derivative instruments | |||
| Interest rate-related | 9,025.2 | 393.5 | 194.4 |
| Currency-related | 77.5 | 0.1 | 0.1 |
| Equity-related | 104.1 | 2.0 | 2.0 |
| Other derivative instruments | 21.0 | 0.1 | 0.1 |
| Total | 9,227.8 | 395.7 | 196.6 |
| Derivative instruments at 30 September 2011 (EUR million) | |||
| Total nominal amount | Assets, fair value | Liabilities, fair value | |
| Hedging derivative instruments | |||
| Fair value hedging | |||
| Interest rate-related | 3,940.5 | 127.0 | 32.5 |
| Total | 3,940.5 | 127.0 | 32.5 |
| Cash flow hedging | |||
| Interest rate-related | 655.0 | 21.0 | 0.0 |
| Total | 655.0 | 21.0 | 0.0 |
| Derivative instruments valued via the income statement | |||
| Interest rate-related *) | 7,339.2 | 112.2 | 116.7 |
| Currency-related | 90.7 | 0.6 | 0.5 |
| Equity-related **) | 119.3 | 2.6 | 2.6 |
| Other derivative instruments **) | 4.2 | 0.8 | 0.8 |
| Total | 7,553.4 | 116.2 | 120.6 |
| Total derivative instruments | |||
| Interest rate-related | 11,934.7 | 260.2 | 149.2 |
| Currency-related | 90.7 | 0.6 | 0.5 |
| Equity-related | 119.3 | 2.6 | 2.6 |
| Other derivative instruments | 4.2 | 0.8 | 0.8 |
| Total | 12,148.9 | 264.2 | 153.1 |
| *) Interest-linked derivatives include interest rate hedging provided for local banks which after back-to-back hedging with third parties amounted to EUR 4,478.0 (6,947.0) million. | |||
| **) All equity-related and other derivative instruments relate to the hedging of structured debt products. | |||
| Off-lanace sheet commitments | |||
| (EUR million) | 30.9.2012 | 31.12.2011 | 30.9.2011 |
| Commitments provided to a third party on behalf of the customers | |||
| Guarantees | 40.0 | 42.2 | 45.7 |
| Other commitments provided to a third party | 2.7 | 3.3 | 3.7 |
| Irrevocable commitments provided on behalf of customers | |||
| Unused credit arrangements | 385.0 | 419.8 | 586.4 |
| Off-balance sheet commitments | 427.7 | 465.4 | 635.8 |
Outlook (changed 15 October 2012)
Aktia is endeavouring to grow above the market in the sectors focusing on retail customers and small companies.
In 2012, Aktia’s focus is on increasing growth by strengthening customer relations, increasing sales per customer and cross-selling, and developing Internet services. This and the successful operation of the segment Asset Management has increased commission income for the period, contri-buting to the improved outlook for the full-year 2012.
Profitability has also been improved through cost savings as well as through effective risk management and capital optimisation.
The interest rate derivatives that lifted the net interest income (NII) to an exceptional level have matured. The high NII level from 2009–2011 is therefore not possible to maintain in a low interest rate environment.
Write-downs on credits are expected to decrease in 2012 as a whole.
Operating profit for 2012 will exceed the level in 2011. (Previously: The operating profit for 2012 is expected to be on the same level as in 2011).
Risks
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, asset management and real estate agency services.
Change in the interest rate level, yield curves and credit margins are hard to predict and can affect Aktia’s interest rate margins and therefore pro-fitability. Aktia is 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.
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 a requirement for higher returns among investors, among other things.
The financial crisis has resulted in many new initiatives for regulating banking and insurance businesses, which has brought uncertainty concerning future equity and liquidity requirements. The results of new regulations are likely to be higher capital requirements, sharpened competition for deposits, higher demands on long-term financing and eventually higher credit margins.
In preparing this report the Bank Group has followed the accounting principles applicable to the Annual Report of 31 December 2011. There were no new or revised IFRSs or Interpretations from IFRIC (International Financial Reporting Interpretations Committee) that had any effect on the Group’s financial position or explanatory notes in for the period 1 January - 30 September 2012.
The figures presented in this stock exchange release are unrevised.
Helsinki 8 November 2012
AKTIA BANK PLC
Board of Directors
CEO Jussi Laitinen, tel. +358 10 247 6250
Deputy CEO, CFO Stefan Björkman, tel. +358 50 63219
IR manager Anna Gabrán, tel. +358 10 247 6501, +358 40 7081807