Aktia Bank Plc, Interim report 1.1-31.3.2010
Aktia Bank plc's
interim report
January - March 2010
Activity during January- March 2010
Aktia Bank plc operates as the parent company in the Bank Group. The
subsidiaries in the Bank Group are: Aktia Real Estate Mortgage Bank plc, Aktia
Asset Management Oy Ab, Aktia Fund Management Company Ltd, Aktia Corporate
Finance Ltd, Aktia Kortti & Rahoitus Oy (Card & Finance) and Aktia's real estate
agencies.
Profit
The Bank Group's operating profit for continuing operations during January-March
2010 was EUR 16.6 (9.3) million. Profit for the period after write-downs and tax
was EUR 12.3 (4.8) million.
The Banking Business segment posted a profit of EUR 17.4 (9.8) million. The
Asset Management segment was able to report a marginal improvement during the
last quarter, showing an operating profit of EUR 0.9 (-0.4) million. Earnings
per share was EUR 3.9 (1.7) million.
--------------------------------------------------------------------------------
| EUR million | 1-3/2010 | 1-3/2009 | Change | 1-12/2009 |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | 3.9 | 2.3 | 68.2 % | 13.3 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | - | -0.6 | - | -0.6 |
| discontinued operations | | | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | 3.9 | 1.7 | 127.2 % | 12.7 |
| total | | | | |
--------------------------------------------------------------------------------
| Equity per share (NAV) | 122.4 | 91.5 | 33,8 % | 117.0 |
--------------------------------------------------------------------------------
| Return on equity (ROE), % | 12.5 | 6.4 | 94.9 % | 11.0 |
--------------------------------------------------------------------------------
| Total earnings per share | 9.7 | -0.3 | - | 35.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares at the end | 3 | 3 | 0.0 % | 3 |
| of the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cost-to-income ratio | 0.57 | 0.72 | -20.8 % | 0.57 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital adequacy ratio, % | 16.2 | 14.1 | 14.8 % | 15.9 |
--------------------------------------------------------------------------------
| Tier 1 capital ratio, % | 9.6 | 9.0 | 6.8 % | 9.5 |
--------------------------------------------------------------------------------
profit for january-march 2010
Aktia Bank plc reported an operating profit from continuing operations of EUR
16.6 (9.3) million and profit after tax was 12.3 (4.8) million. Earnings per
share was EUR 3.9 (1.7) million.
The segments' operating profit before common costs
--------------------------------------------------------------------------------
| EUR million | 1-3/2010 | 1-3/2009 | Change |
--------------------------------------------------------------------------------
| Banking Business | 24.3 | 17.3 | 40.8 % |
--------------------------------------------------------------------------------
| Asset Management | 1.8 | 0.1 | - |
--------------------------------------------------------------------------------
| Miscellanous | -0.2 | 1.4 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Common costs | -7.8 | -7.9 | 0.6 % |
--------------------------------------------------------------------------------
| Eliminations | -1.5 | -1.5 | 3.0 % |
--------------------------------------------------------------------------------
| Total | 16.6 | 9.3 | 78.2 % |
--------------------------------------------------------------------------------
The segments' operating profit
--------------------------------------------------------------------------------
| EUR million | 1-3/2010 | 1-3/2009 | Change |
--------------------------------------------------------------------------------
| Banking Business | 17.4 | 9.8 | 76.7 % |
--------------------------------------------------------------------------------
| Asset management | 0.9 | -0.4 | - |
--------------------------------------------------------------------------------
| Miscellanous | -0.2 | 1.4 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Eliminations | -1.5 | -1.5 | 3.0 % |
--------------------------------------------------------------------------------
| Total | 16.6 | 9.3 | 78.2 % |
--------------------------------------------------------------------------------
Income
The Bank Group's total income amounted to EUR 48.8 (38.5) million, EUR 38.8
(32.4) million of which was net interest income.
The derivatives used by Aktia Bank to limit its interest rate risk improved net
interest income by EUR 13.7 (2.0) million.
Net commission income totalled EUR 12.2 (8.0) million. Commission income from
asset management and brokering amounted to EUR 4.4 (2.5) million. The brokering
of funds and insurance generated total income of EUR 5.4 (3.7) million. Card and
payment services commission was EUR 2.9 (2.8) million.
Expenses
The Bank Group's total costs amounted to EUR 27.8 (27.7) million.
Staff costs were EUR 12.4 (11.8) million. Other administration costs totalled
EUR 10.3 (10.7) million. Total commission costs amounted to EUR 4.0 (3.5)
million.
Total depreciation and write-downs on tangible and intangible assets amounted to
EUR 1.2 (1.2) million. Other operating costs totalled EUR 3.8 (4.0) million, of
which the costs of renting premises accounted for the largest share.
Rating
Aktia Bank plc's credit rating from the international credit rating agency
Moody's Investors Service updated on 6 January 2010 as the best classification,
P-1, for short-term borrowing. The credit quality for long-term borrowing and
financial strength were the same, A1 and C respectively, all with a stable
outlook.
See http://www.aktia.fi/aktia_bank/rating
The covered bonds issued by the subsidiary Aktia Real Estate Mortgage Bank plc
have a Moody's credit rating of Aa1.
Balance sheet and off-
balance sheet
commitments
The Bank Group's balance sheet total increased from the end of the year by 6.0%
and amounted to EUR 10,108 (31.12.2009; 9,540) at the end of March 2010. This
increase in the balance sheet total is largely due to the growth in mortgage
stock and financial assets within the banking business.
Deposits from the public and public sector entities totalled EUR 3,199 (3,036)
million.
Outstanding bonds issued and certificates of deposit increased by 10.2% to EUR
3,037 (2,754) million at the end of March 2010.
The Bank Group's total lending to the public increased during January-March by
1.9 % to EUR 6,237 (6,124) million. Loans to private households accounted for
EUR 5,024 (4,924) million, or 80.5 (80.4) % of total credit stock.
Excluding the mortgages brokered by savings and local cooperative banks which
the local banks are committed to capitalise, the Bank Group's lending totalled
EUR 4,895 million.
Off-balance sheet commitments totalled EUR 594 million (EUR 568 million).
Interest-bearing financial assets available for sale amounted to EUR 2,825
million (EUR 2,657 million). These assets mainly consist of the banking
business' liquidity reserve.
The Bank Group's equity increased to EUR 400 (384) million from year-end. The
fund at fair value amounted to EUR 52 (35) million.
Capital adequacy
The Bank Group's capital adequacy amounted to 16.2 % compared to 15.9% at 31
December 2009. The Tier 1 capital ratio increased to 9.6% compared to 9.5% at
the end of the year. Capital adequacy was strengthened by the profit for the
period and by higher valuations of financial assets.
The Bank Group's capital adequacy is at a good level, exceeding both the targets
set internally and the regulatory minimum requirements for capital adequacy.
Valuation of financial assets
Value changes reported via income statement
For shares and participations, a value impairment is reported in the income
statement where the value change has been announced as significant or long-term
and, in the case of interest-bearing securities, where the issuer has announced
an inability to pay. For interest-bearing securities, previous write-downs are
reversed in the income statement and for shares and participations in the fund
at fair value.
No write-downs were made during January-March 2010, whereas these totalled EUR
0.4 million during the same period in 2009.
Write-downs on financial assets
--------------------------------------------------------------------------------
| EUR million | 1-3/2010 | 1-3/2009 |
--------------------------------------------------------------------------------
| Interest-bearing securities | - | 0.4 |
--------------------------------------------------------------------------------
| Shares and participations | - | - |
--------------------------------------------------------------------------------
| Total | - | 0.4 |
--------------------------------------------------------------------------------
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 52.2 million after deferred tax compared
to EUR 34.7 million as at 31 December 2009. The cash flow hedging which
comprises the market value for interest rate derivative contracts which have
been acquired for the purposes of hedging the banking business' net interest
income amounted to EUR 30.6 (21.4) million.
Specification of the fund at fair value
--------------------------------------------------------------------------------
| EUR million | 31.3.2010 | 31.12.2009 | Change |
--------------------------------------------------------------------------------
| Shares and | 0.0 | 0.0 | 0.0 |
| participations | | | |
--------------------------------------------------------------------------------
| Direct | 21.6 | 13.3 | 8.3 |
| interest-bearing | | | |
| securities | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | 30.6 | 21.4 | 9.2 |
--------------------------------------------------------------------------------
| Fund at fair value, | 52.2 | 34.7 | 17.5 |
| total | | | |
--------------------------------------------------------------------------------
Write-downs of loan and guarantee claims
Write-downs based on individual examination of loan and guarantee claims during
January - March 2010 totalled EUR -4.8 (-1.7) million. Recoveries and reversals
of write-downs from previous years came to EUR 0.4 (0.1) million so that the
cost effect on the profit for the period was EUR -4.4 (-1.6) million. Most of
the write-downs during the period are related to commitments whose credit rating
had already decreased in 2009 and where restructuring efforts now are confirmed
as without result.
Of write-downs, EUR -4.5 million was accounted for by corporate loans, which
corresponds to 0.5% (0.2%) of the total corporate lending. Write-downs of
household loans amounted to EUR -0.3 million, EUR -0.1 million of which was
accounted for by unsecured consumer loans. The year's write-downs of household
loans were marginal of total lending to households. Total write-downs for the
period amounted to 0.08 (0.03)% of total lending.
The Bank Group's risk
management
Risk exposure
The banking business includes Retail Banking (including financing company
operations), Corporate Banking, Treasury and Asset Management.
Lending-related risks within banking
Loan stock increased during January-March 2010 by EUR 113 million, totalling EUR
6,237 (6,124) million at the end of March. As planned, this increase mainly
occurred within household financing, and households' share of the total credit
stock amounted to EUR 5,024 million or 80.5%, or 85.4% when combined with
housing associations at the end of March. Of these loans to households, 86.3
(86.2)% are secured against adequate real estate collateral in accordance with
Basel 2. The housing loan stock totalled EUR 4,697 (4,598) million. In all,
housing loans increased by 2.1% over the period under review.
New lending to companies remained moderate and corporate loans increased by 0.4%
from the beginning of the year, totalling EUR 848 (845) million. The proportion
of the total credit stock accounted for by corporate loans fell as planned to
13.6 (13.8)%.
Lending to the general public secured by collateral objects or unsecured within
the framework of the financing companies Aktia Corporate Finance and Aktia Card
& Finance totalled EUR 91.1 (84.8) million, representing 1.5% of total lending.
Credit stock by sector
--------------------------------------------------------------------------------
| EUR | 31.3.2010 | 31.12.2009 | Change | Percentage |
| million | | | | |
--------------------------------------------------------------------------------
| Corporate | 848 | 845 | 3 | 13.6 |
--------------------------------------------------------------------------------
| Housing | 301 | 289 | 11 | 4.8 |
| associatio | | | | |
| ns | | | | |
--------------------------------------------------------------------------------
| Public | 10 | 10 | 0 | 0.2 |
| sector | | | | |
| entities | | | | |
--------------------------------------------------------------------------------
| Non-profit | 55 | 55 | -1 | 0.9 |
| organisati | | | | |
| ons | | | | |
--------------------------------------------------------------------------------
| Households | 5,024 | 4,924 | 100 | 80.5 |
--------------------------------------------------------------------------------
| Total | 6,237 | 6,124 | 113 | 100.0 |
--------------------------------------------------------------------------------
Loans with payments 1-30 days overdue decreased during the period from 2.97% to
2.41% of credit stock, including off-balance sheet guarantee commitments. Loans
with payments 31-89 days overdue increased from 0.76% to 0.98 %, totalling
approximately EUR 62 million. Non-performing loans more than 90 days overdue,
including claims on bankrupt companies and loans for collection, totalled
approximately EUR 35 million, corresponding to 0.56% (0.56%) of the entire
credit stock plus bank guarantees.
Undischarged debts by time overdue
(EUR million)
--------------------------------------------------------------------------------
| Days | 31.3.2010 | % of the | 31.12.2009 | % of the |
| | | credit | | credit |
| | | stock | | stock |
--------------------------------------------------------------------------------
| 1-30 | 152 | 2.41 | 181 | 2.97 |
--------------------------------------------------------------------------------
| of which | 108 | 1.71 | 114 | 1.86 |
| households | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 31-89 | 62 | 0.98 | 46 | 0.76 |
--------------------------------------------------------------------------------
| of which | 44 | 0.69 | 37 | 0.61 |
| households | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 90- | 35 | 0.56 | 34 | 0.56 |
--------------------------------------------------------------------------------
| of which | 19 | 0.30 | 18 | 0.30 |
| households | | | | |
--------------------------------------------------------------------------------
The Bank Group's financing and liquidity risks
Financing and liquidity risks are handled at a corporate legal level and there
are no financial commitments between the Bank group (Aktia Bank plc and its
subsidiaries) and the insurance companies.
In the banking business, financial and liquidity risks are defined as the
availability of refinancing plus the differences in maturity between assets and
liabilities. The objective is to be able to cover one year's financing
requirements using existing liquidity. The liquidity status of the Bank Group
has been stable despite continued financial uncertainty. Following the Aktia
Real Estate Mortgage Bank's issue in March 2010, the liquidity buffer is at a
level that meets refinancing requirements for more than two years refinancing
needs.
Counterparty risks
Counterparty risks within Group Treasury's liquidity management
operations
The banking business' liquidity portfolio - which comprises interest-bearing
securities and is managed by Group Treasury - stood at EUR 2,683 (2,615) million
at 31 March 2010.
Individual investment decisions are made in accordance with an investment plan
in place and are based on careful assessment of the counterparty. Counterparty
risks are limited by the requirement for high-level external ratings (a minimum
rating of A3 rating from Moody's Investors Service or equivalent). In addition,
maximum exposure limits have been established for each counterparty and asset
category.
Of the financial assets available for sale, 58 (51)% were investments in covered
bonds, 25 (36)% were investments in banks, 10 (9)% were investments in
state-guaranteed bonds and approximately 7 (4)% were investments in public
sector entities and companies.
Counterparty risks in derivatives trading are managed through demands on
collateral (CSA) limiting the open positions.
Rating distribution for banking business
--------------------------------------------------------------------------------
| EUR million | 31.3.2010 | 31.12.2009 |
--------------------------------------------------------------------------------
| | 2,683 | 2,615 |
--------------------------------------------------------------------------------
| Aaa | 58.3 % | 55.1 % |
--------------------------------------------------------------------------------
| Aa1-Aa3 | 27.9 % | 29.6 % |
--------------------------------------------------------------------------------
| A1-A3 | 7.4 % | 11.6 % |
--------------------------------------------------------------------------------
| Baa1-Baa3 | 3.0 % | 0.6 % |
--------------------------------------------------------------------------------
| Ba1-Ba3 | 0.2 % | 0.2 % |
--------------------------------------------------------------------------------
| B1-B3 | 0.0 % | 0.0 % |
--------------------------------------------------------------------------------
| Caa1 or lower | 0.0 % | 0.0 % |
--------------------------------------------------------------------------------
| No rating | 3.2 %* | 2.9 % |
--------------------------------------------------------------------------------
| Total | 100.0 % | 100.0 % |
--------------------------------------------------------------------------------
*) Of which 2.3% were municipalities as at 31 March 2010
Of these financial assets, 3.2 (1.1)% did not meet the internal rating
requirements. As a result of a reduced credit rating, three security assets with
a total market value of EUR 15 million were no longer eligible for refinancing
with the central bank. Other securities that are not eligible for refinancing
due to the absence of a rating, totalled EUR 89 million.
During the period, no write-downs were realised as a result of the issuer
announcing its inability to pay, whereas the write-downs during the same period
last year amounted to EUR -0.4 million.
Market valuation of
financial assets
The financial assets within the banking business are invested in securities with
access to market prices in an active market, and are valued in accordance with
official quoted prices. Any significant or long-term impairment of market value
compared to the acquisition price is shown in the income statement, while
interest-rate fluctuations are reported under the fund at fair value after the
deduction of deferred tax.
Market value and structural interest rate risk within the banking business
Structural interest rate risk arises as a result of an imbalance between
interest rate ties and the re-pricing of assets and liabilities, and affects net
interest income. Hedging derivative instruments and investments within the
liquidity portfolio are exploited to reduce the volatility in net interest
income.
According to the strategy for interest rate risk management, a parallel upward
or downward shift in the interest rate curve of one percentage point shall not
influence the estimated net interest income of the banking business for the next
12 months by more than 7%, and 8% for the following year. At the end of the
first quarter of 2010 the set targets were met. The growth in the deposit stock
diminishes net interest income's sensitivity to an upward shift in the interest
rate curve.
Market value interest rate risk refers to changes in value of financial assets
available for sale as a result of interest rate fluctuations or changes in
credit, interest rate or spread risks. The size, maturity and risk level of the
liquidity portfolio is restricted as a result of capital allocation limits and
limits for entering into repurchase agreements.
The net change in the fund at fair value relating to market value interest rate
risk posted during the period and credit and spread risk was positive and
totalled EUR 21.6 (13.3) million after the deduction of deferred tax. At the end
of March 2010, the valuation difference in interest-bearing securities was
positive at EUR 8.3 million.
Operational risks
Operational risks refer to loss risks arising as a result of unclear or
incomplete instructions, activities carried out contrary to instructions,
unreliable information, deficient systems or actions taken by staff members. If
an operational risk is realised, this can result in direct or indirect financial
losses or tarnish the corporate image to the extent that the bank's credibility
in the market-place suffers.
No events regarded as operational risk causing significant financial losses
occurred in January-March 2010.
Personnel
When converted into full-time employees, the number of staff employed by the
Bank Group decreased by 11 to 743 (754) persons during January-March 2010. The
average number of full-time employees during the period under review was 753
(845). In the first quarter of 2009, Aktia Bank Plc sold its holding in Aktia
Life Insurance to the Group parent company Aktia Plc, whereby the number of
full-time employees fell by 135.
Important events after the end of the reporting period
On 23 April 2010, an Extraordinary General Meeting of Aktia Bank plc decided on
distribution of an extra dividend of EUR 30.0 million to the parent company
Aktia plc. In order to neutralise the effect of this on the Bank's capital
adequacy it was also decided to take a corresponding subordinated loan with
conversion right from the parent company. This transaction has no impact on the
Group's or the Bank's equity or capital adequacy.
The worries especially concerning South European economies have lead to higher
spreads and lower valuations for financial assets after the end of the period.
Consequently, the fund at fair value that developed very positively during the
first quarter showing an increase of EUR 17.5 million, has declined with about
EUR 11 million after the reporting period.
Outlook for the coming year (unchanged)
Aktia Bank expects the Group's operating profit for 2010 to be at the same level
as in 2009.
In 2010, Aktia Bank's focus will be on strengthening customer relations,
increasing sales, developing Internet services, and managing costs, risks and
capital in order to strengthen profitability. Aktia Bank is endeavouring to grow
above the market, particularly in the sectors of retail customers and small
companies.
Aktia Bank's financial results are affected by many factors, of which the most
important are the general economic situation, fluctuations in share prices,
interest rates and exchange rates and the competitive situation. Changes in
these factors can have an impact on demand for banking, insurance, 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 Bank's interest rate margins and therefore
profitability. Aktia pursuing effective management of interest rate risks.
Any future write-downs of loans in Aktia Bank's loan portfolio could be due to
many factors, the most important of which are the general economic situation,
interest rate level, the level of unemployment and changes in house prices.
Aktia Bank expects write-downs on credit to be lower in 2010 than in 2009.
The availability of liquidity on the money markets is important for Aktia Bank's
refinancing activities. Like other banks, Aktia Bank relies on deposits from
households in order to service some of its liquidity needs.
The market value of Aktia Bank'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.
Aktia Bank plc
January - March 2010
onsolidated income statement for bank group
--------------------------------------------------------------------------------
| Continuing operations | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2010 | 1-3/2009 | Change | 1-12/2009 |
--------------------------------------------------------------------------------
| Net interest income | 38.8 | 32.4 | 19.8 % | 152.4 |
--------------------------------------------------------------------------------
| Dividends | 0.0 | 0.1 | -76.6 % | 0.1 |
--------------------------------------------------------------------------------
| Commission income | 16.2 | 11.5 | 40.5 % | 56.1 |
--------------------------------------------------------------------------------
| Commission expenses | -4.0 | -3.5 | -13.3 % | -15.4 |
--------------------------------------------------------------------------------
| Net commission income | 12.2 | 8.0 | 52.6 % | 40.7 |
--------------------------------------------------------------------------------
| Net income from financial | -3.1 | -2.6 | -20.2 % | 0.6 |
| transactions | | | | |
--------------------------------------------------------------------------------
| Net income from investment | 0.0 | 0.0 | -71.6 % | 0.1 |
| properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | 0.9 | 0.7 | 35.6 % | 2.8 |
--------------------------------------------------------------------------------
| Total operating income | 48.8 | 38.5 | 26.7 % | 196.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Staff costs | -12.4 | -11.8 | 5.3 % | -46.6 |
--------------------------------------------------------------------------------
| Other administrative expenses | -10.3 | -10.7 | -3.5 % | -41.8 |
--------------------------------------------------------------------------------
| Depreciation of tangible and | -1.2 | -1.2 | -0.3 % | -4.8 |
| intangible assets | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -3.8 | -4.0 | -3.1 % | -18.6 |
--------------------------------------------------------------------------------
| Total operating expenses | -27.8 | -27.7 | 0.4 % | -111.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairment and reversal of | - | 0.0 | - | 0.0 |
| impairment on tangible and | | | | |
| intangible assets | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and | -4.4 | -1.6 | 171.9 % | -31.1 |
| other commitments | | | | |
--------------------------------------------------------------------------------
| Share of profit from | -0.1 | 0.1 | - | 0.3 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | 16.6 | 9.3 | 78.2 % | 54.2 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Taxes | -4.3 | -2.7 | 59.0 % | -14.7 |
--------------------------------------------------------------------------------
| Profit for the period from | 12.3 | 6.6 | 86.0 % | 39.4 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | |
--------------------------------------------------------------------------------
| Profit for the period from | - | -1.8 | - | -1.8 |
| discontinued operations | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 12.3 | 4.8 | 155.1 % | 37.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | | |
--------------------------------------------------------------------------------
| Shareholders in Aktia Bank Plc | 11.6 | 5.1 | 127.2 % | 38.0 |
--------------------------------------------------------------------------------
| Minority interest | 0.7 | -0.3 | - | -0.4 |
--------------------------------------------------------------------------------
| Total | 12.3 | 4.8 | 155.1 % | 37.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS) | | | | |
| attributable to shareholders | | | | |
| in Aktia Bank Plc, EUR | | | | |
--------------------------------------------------------------------------------
| Continuing operations | 3,860,80 | 2,295,702 | 68.2 % | 13,269,00 |
| | 9.25 | .28 | | 9.48 |
--------------------------------------------------------------------------------
| Discontinued operations | - | -596,129. | - | -596,129. |
| | | 27 | | 27 |
--------------------------------------------------------------------------------
| Total | 3,860,80 | 1,699,573 | 127.2 % | 12,672,88 |
| | 9.25 | .01 | | 0.20 |
--------------------------------------------------------------------------------
There is no dilution effect to earnings per share
Consolidated statement of comprehensive income for Bank Group
--------------------------------------------------------------------------------
| (EUR million) | 1-3/201 | 1-3/2009 | Change | 1-12/2009 |
| | 0 | | | |
--------------------------------------------------------------------------------
| Continuing operations | | | | |
--------------------------------------------------------------------------------
| Profit for the period | 12.3 | 6.6 | 86.0 % | 39.4 |
--------------------------------------------------------------------------------
| Other comprehensive income after | | | | |
| taxes: | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | 8.3 | -1.5 | - | 37.7 |
| for financial assets available | | | | |
| for sale | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | 9.2 | 6.5 | 40.7 % | 9.0 |
| for cash flow hedging | | | | |
--------------------------------------------------------------------------------
| Transferred to the income | - | - | - | 2.4 |
| statement for financial assets | | | | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for | 29.8 | 11.6 | 155.9 % | 88.7 |
| the period for continuing | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | |
--------------------------------------------------------------------------------
| Profit for the period | - | -1.8 | - | -1.8 |
--------------------------------------------------------------------------------
| Other comprehensive income after | | | | |
| taxes: | | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | - | -11.3 | - | -11.3 |
| for financial assets available | | | | |
| for sale | | | | |
--------------------------------------------------------------------------------
| Transferred to the income | - | 0.3 | - | 0.3 |
| statement for financial assets | | | | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for | 0.0 | -12.8 | - | -12.8 |
| the period for discontinued | | | | |
| operations | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income for | 29.8 | -1.2 | - | 75.8 |
| the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | | | | |
| attributable to: | | | | |
--------------------------------------------------------------------------------
| Shareholders in Aktia Bank plc | 29.1 | -0.8 | - | 75.8 |
--------------------------------------------------------------------------------
| Minority interest | 0.7 | -0.4 | - | 0.1 |
--------------------------------------------------------------------------------
| Total | 29.8 | -1.2 | - | 75.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total earnings per share, EUR | | | | |
--------------------------------------------------------------------------------
| Continuing operations | 9,691,3 | 4,018,80 | 141.2 % | 29,526,41 |
| | 97.95 | 8.62 | | 2.51 |
--------------------------------------------------------------------------------
| Discontinued operations | - | -4,273,5 | - | -4,273,52 |
| | | 21.18 | | 1.18 |
--------------------------------------------------------------------------------
| Total | 9,691,3 | -254,712 | - | 25,252,89 |
| | 97.95 | .57 | | 1.33 |
--------------------------------------------------------------------------------
There is no dilution effect to earnings per share.
consolidated balance sheet for Bank Group
--------------------------------------------------------------------------------
| (EUR million) | 31.3.201 | 31.12.200 | Change | 31.3.2009 |
| | 0 | 9 | | |
--------------------------------------------------------------------------------
| Assets | | | | |
--------------------------------------------------------------------------------
| Cash and balances with | 318.5 | 336.5 | -5.3 % | 358.9 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets reported at | 3.7 | 3.6 | 1.7 % | 7.2 |
| fair value via the income | | | | |
| statement | | | | |
--------------------------------------------------------------------------------
| Interest-bearing securities | 2,824.8 | 2,657.5 | 6.3 % | 2,378.8 |
--------------------------------------------------------------------------------
| Shares and participations | 4.9 | 4.9 | 0.6 % | 20.6 |
--------------------------------------------------------------------------------
| Financial assets available | 2,829.8 | 2,662.4 | 6.3 % | 2,399.3 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Financial assets held until | 22.2 | 27.9 | -20.5 % | 35.9 |
| maturity | | | | |
--------------------------------------------------------------------------------
| Derivative instruments | 257.6 | 209.6 | 22.9 % | 205.7 |
--------------------------------------------------------------------------------
| Lending to credit | 318.7 | 80.7 | 294.9 % | 87.0 |
| institutions | | | | |
--------------------------------------------------------------------------------
| Lending to the public and | 6,237.1 | 6,123.7 | 1.9 % | 5,599.1 |
| public sector entities | | | | |
--------------------------------------------------------------------------------
| Loans and other receivables | 6,555.9 | 6,204.4 | 5.7 % | 5,686.1 |
--------------------------------------------------------------------------------
| Investments in associated | 2.5 | 2.8 | -11.1 % | 2.5 |
| companies | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 6.4 | 7.0 | -8.8 % | 8.4 |
--------------------------------------------------------------------------------
| Investment properties | 0.0 | 0.0 | 0.0 % | 0.0 |
--------------------------------------------------------------------------------
| Other tangible assets | 4.2 | 4.6 | -8.4 % | 4.9 |
--------------------------------------------------------------------------------
| Accrued income and advance | 74.9 | 71.9 | 4.1 % | 66.1 |
| payments | | | | |
--------------------------------------------------------------------------------
| Other assets | 28.0 | 4.9 | 472.0 % | 65.3 |
--------------------------------------------------------------------------------
| Total other assets | 102.9 | 76.8 | 34.0 % | 131.4 |
--------------------------------------------------------------------------------
| Income tax receivables | 0.5 | 0.4 | 34.9 % | 3.1 |
--------------------------------------------------------------------------------
| Deferred tax receivables | 3.6 | 3.5 | 4.8 % | 15.2 |
--------------------------------------------------------------------------------
| Tax receivables | 4.2 | 3.9 | 7.9 % | 18.3 |
--------------------------------------------------------------------------------
| Total assets | 10,107.9 | 9,539.5 | 6.0 % | 8,858.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | |
--------------------------------------------------------------------------------
| Liabilities to credit | 1,526.8 | 1,724.4 | -11.5 % | 1,734.8 |
| institutions | | | | |
--------------------------------------------------------------------------------
| Liabilities to the public and | 3,199.0 | 3,035.8 | 5.4 % | 3,105.2 |
| public sector entities | | | | |
--------------------------------------------------------------------------------
| Deposits | 4,725.9 | 4,760.2 | -0.7 % | 4,839.9 |
--------------------------------------------------------------------------------
| Financial liabilities | - | - | - | 2.8 |
| reported at fair value via | | | | |
| the income statement | | | | |
--------------------------------------------------------------------------------
| Derivative instruments | 156.6 | 131.7 | 19.0 % | 128.7 |
--------------------------------------------------------------------------------
| Debt securities issued | 3,036.8 | 2,754.5 | 10.2 % | 2,323.7 |
--------------------------------------------------------------------------------
| Subordinated liabilities | 251.7 | 250.4 | 0.5 % | 233.8 |
--------------------------------------------------------------------------------
| Other liabilities to credit | 1,228.0 | 968.2 | 26.8 % | 472.3 |
| institutions | | | | |
--------------------------------------------------------------------------------
| Other liabilities to the | 82.8 | 91.8 | -9.8 % | 358.6 |
| public and public sector | | | | |
| entities | | | | |
--------------------------------------------------------------------------------
| Other financial liabilities | 4,599.3 | 4,064.9 | 13.1 % | 3,388.4 |
--------------------------------------------------------------------------------
| Accrued expenses and income | 77.7 | 66.5 | 16.8 % | 75.0 |
| received in advance | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 87.3 | 81.3 | 7.3 % | 80.7 |
--------------------------------------------------------------------------------
| Total other liabilities | 165.0 | 147.8 | 11.6 % | 155.7 |
--------------------------------------------------------------------------------
| Provisions | 0.0 | 0.2 | -92.2 % | 0.2 |
--------------------------------------------------------------------------------
| Income tax liability | 19.3 | 18.9 | 2.1 % | 3.0 |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 42.0 | 32.2 | 30.5 % | 41.4 |
--------------------------------------------------------------------------------
| Tax liabilities | 61.2 | 51.0 | 20.0 % | 44.4 |
--------------------------------------------------------------------------------
| Total liabilities | 9,708.0 | 9,155.8 | 6.0 % | 8,560.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Restricted equity | 215.2 | 197.7 | 8.8 % | 154.1 |
--------------------------------------------------------------------------------
| Unrestricted equity | 152.0 | 153.3 | -0.9 % | 120.3 |
--------------------------------------------------------------------------------
| Shareholders' share of equity | 367.2 | 351.0 | 4.6 % | 274.5 |
--------------------------------------------------------------------------------
| Minority interest's share of | 32.7 | 32.7 | 0.0 % | 24.0 |
| equity | | | | |
--------------------------------------------------------------------------------
| Equity | 399.9 | 383.7 | 4.2 % | 298.5 |
--------------------------------------------------------------------------------
| Total liabilities and equity | 10,107.9 | 9,539.5 | 6.0 % | 8,858.7 |
--------------------------------------------------------------------------------
Consolidated cash flow statement for Bank Group
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2 | 1-3/2009 | Change | 1-12/200 |
| | 010 | | | 9 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | | |
--------------------------------------------------------------------------------
| Operating profit *) | 16.6 | 9.0 | 84.2 % | 53.9 |
--------------------------------------------------------------------------------
| Adjustment items not included in | 5.9 | 5.8 | 2.2 % | 17.3 |
| cash flow for the period | | | | |
--------------------------------------------------------------------------------
| Paid income taxes | -0.5 | -1.5 | -67.9 % | -7.9 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | 22.0 | 13.3 | 65.6 % | 63.3 |
| before change in operating | | | | |
| receivables and liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (-) or decrease (+) in | -530. | -254.7 | 108.1 % | -936.0 |
| receivables from operating | 0 | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Increase (+) or decrease (-) in | 491.7 | 73.4 | 570.0 % | 651.2 |
| liabilities from operating | | | | |
| activities | | | | |
--------------------------------------------------------------------------------
| Total cash flow from operating | -16.3 | -168.0 | -90.3 % | -221.5 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | | |
--------------------------------------------------------------------------------
| Financial assets held until | 5.7 | - | - | 8.0 |
| maturity | | | | |
--------------------------------------------------------------------------------
| Investments in group companies and | -0.1 | - | - | -0.1 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of group | - | 34.6 | - | 34.6 |
| companies and associated companies | | | | |
--------------------------------------------------------------------------------
| Investment in tangible and | -0.2 | -0.9 | -77.5 % | -2.9 |
| intangible assets | | | | |
--------------------------------------------------------------------------------
| Disposal of tangible and intangible | 0.0 | 0.2 | -91.0 % | 0.3 |
| assets | | | | |
--------------------------------------------------------------------------------
| Share issue of Aktia Real Estate | - | - | - | 8.9 |
| Mortgage Bank Plc to the minority | | | | |
--------------------------------------------------------------------------------
| Total cash flow from investing | 5.5 | 33.9 | -83.9 % | 48.9 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | | |
--------------------------------------------------------------------------------
| Subordinated liabilities | 1.3 | -11.3 | - | 6.4 |
--------------------------------------------------------------------------------
| Total cash flow from financing | -11.6 | -11.3 | 2.9 % | 6.4 |
| activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -22.5 | -145.4 | -84.6 % | -166.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 346.2 | 512.3 | -32.4 % | 512.3 |
| beginning of the year | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 323.8 | 367.0 | -11.8 % | 346.2 |
| end of the year | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents in the | | | | |
| cash flow statement consist of the | | | | |
| following items: | | | | |
--------------------------------------------------------------------------------
| Cash in hand | 8.5 | 9.4 | -9.8 % | 10.0 |
--------------------------------------------------------------------------------
| Bank of Finland current account | 310.1 | 349.5 | -11.3 % | 326.5 |
--------------------------------------------------------------------------------
| Repayable on demand claims on | 5.2 | 8.1 | -35.4 % | 9.7 |
| credit institutions | | | | |
--------------------------------------------------------------------------------
| Total | 323.8 | 367.0 | -11.8 % | 346.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjustment items not included in | | | | |
| cash flow for the period consist | | | | |
| of: | | | | |
--------------------------------------------------------------------------------
| Impairment of financial assets | - | 0.4 | - | 0.4 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and other | 4.4 | 1.6 | 171.9 % | 31.1 |
| commitments | | | | |
--------------------------------------------------------------------------------
| Change in fair values | 0.2 | 1.9 | -91.1 % | -19.3 |
--------------------------------------------------------------------------------
| Depreciation and impairment of | 1.2 | 1.3 | -8.8 % | 4.9 |
| intangible and tangible assets | | | | |
--------------------------------------------------------------------------------
| Share of profit from associated | 0.4 | 0.2 | 66.8 % | 0.0 |
| companies | | | | |
--------------------------------------------------------------------------------
| Sales gains and losses from | 0.0 | 0.0 | - | -0.1 |
| intangible and tangible assets | | | | |
--------------------------------------------------------------------------------
| Other adjustments | -0.2 | 0.4 | - | 0.3 |
--------------------------------------------------------------------------------
| Total | 5.9 | 5.8 | 2.2 % | 17.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Includes operating profit from | | | | |
| both continuing and discontinued | | | | |
| operations for year 2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations' share of | | | | |
| cash flow in the Bank Group, net: | | | | |
--------------------------------------------------------------------------------
| Cash flow from operating activities | - | -2.5 | | -2.5 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | - | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | - | - | | - |
--------------------------------------------------------------------------------
| Total | 0.0 | -2.6 | | -2.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of changes in equity for Bank Group | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | | Other | Fund at | Unrestricte |
| | | restricted | | d |
--------------------------------------------------------------------------------
| (EUR 1,000) | Share | equity | fair value | equity |
| | capital | | | reserve |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January | 163.0 | 0.0 | -35.1 | 44.6 |
| 2009 | | | | |
--------------------------------------------------------------------------------
| Share issue | | | | |
--------------------------------------------------------------------------------
| Treasury shares acquired in | | | |
| connection with the merger | | | |
--------------------------------------------------------------------------------
| Dividens to shareholders | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | -12.4 | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | | 6.5 | |
--------------------------------------------------------------------------------
| Total comprehensive | | | -5.9 | |
| income for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | | | 32.1 | |
--------------------------------------------------------------------------------
| Equity as at 31 March | 163.0 | 0.0 | -8.9 | 44.6 |
| 2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January | 163.0 | 0.0 | 34.7 | 44.6 |
| 2010 | | | | |
--------------------------------------------------------------------------------
| Share issue | | | | |
--------------------------------------------------------------------------------
| Treasury shares acquired in | | | |
| connection with the merger | | | |
--------------------------------------------------------------------------------
| Dividens to shareholders | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | 8.3 | |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | | 9.2 | |
--------------------------------------------------------------------------------
| Total comprehensive | | | 17.5 | |
| income for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | | | 0.0 | |
--------------------------------------------------------------------------------
| Equity as at 31 March | 163.0 | 0.0 | 52.2 | 44.6 |
| 2010 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | Shareholders | Minority | |
| | | ' | | |
--------------------------------------------------------------------------------
| | Retaine | share of | interest's | Total |
| | d | | share | |
--------------------------------------------------------------------------------
| (EUR 1,000) | earning | equity | of equity | equity |
| | s | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January | 102.8 | 275.2 | 24.9 | 300.2 |
| 2009 | | | | |
--------------------------------------------------------------------------------
| Share issue | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Treasury shares acquired in | 0.0 | | 0.0 |
| connection with the merger | | | |
--------------------------------------------------------------------------------
| Dividens to shareholders | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Profit for the period | 5.1 | 5.1 | -0.3 | 4.8 |
--------------------------------------------------------------------------------
| Financial assets | | -12.4 | -0.1 | -12.5 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | 6.5 | | 6.5 |
--------------------------------------------------------------------------------
| Total comprehensive | 5.1 | -0.8 | -0.4 | -1.2 |
| income for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | -32.1 | 0.0 | -0.5 | -0.5 |
--------------------------------------------------------------------------------
| Equity as at 31 March | 75.8 | 274.5 | 24.0 | 298.5 |
| 2009 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity as at 1January | 108.7 | 351.0 | 32.7 | 383.7 |
| 2010 | | | | |
--------------------------------------------------------------------------------
| Share issue | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Treasury shares acquired in | 0.0 | | 0.0 |
| connection with the merger | | | |
--------------------------------------------------------------------------------
| Dividens to shareholders | -12.9 | -12.9 | | -12.9 |
--------------------------------------------------------------------------------
| Profit for the period | 11.6 | 11.6 | 0.7 | 12.3 |
--------------------------------------------------------------------------------
| Financial assets | | 8.3 | 0.0 | 8.3 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Cash flow hedging | | 9.2 | | 9.2 |
--------------------------------------------------------------------------------
| Total comprehensive | 11.6 | 29.1 | 0.7 | 29.8 |
| income for the period | | | | |
--------------------------------------------------------------------------------
| Other change in equity | 0.0 | 0.0 | -0.7 | -0.7 |
--------------------------------------------------------------------------------
| Equity as at 31 March | 107.4 | 367.2 | 32.7 | 399.9 |
| 2010 | | | | |
--------------------------------------------------------------------------------
Key figures
--------------------------------------------------------------------------------
| (EUR million) | 1-3/20 | 1-3/2 | Change | 10-12 | 7-9 | 4-6 |
| | 10 | 009 | | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Earnings per share | 3.9 | 2.3 | 68.2% | 4.0 | 4.0 | 2.9 |
| (EPS), continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | - | -0.6 | - | - | - | - |
| (EPS), discontinued | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share | 3.9 | 1.7 | 127.2% | 4.0 | 4.0 | 2.9 |
| (EPS), total | | | | | | |
--------------------------------------------------------------------------------
| Equity per share | 122.4 | 91.5 | 33.8% | 117.0 | 115.1 | 99.2 |
| (NAV)1 | | | | | | |
--------------------------------------------------------------------------------
| Return on equity | 12.5 | 6.4 | 94.9% | 13.0 | 14.0 | 10.5 |
| (ROE), % | | | | | | |
--------------------------------------------------------------------------------
| Total earnings per | 9.7 | -0.3 | - | 1.9 | 15.9 | 7.7 |
| share (EPS), EUR | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares at | 3 | 3 | 0.0% | 3 | 3 | 3 |
| the end of the | | | | | | |
| period1 | | | | | | |
--------------------------------------------------------------------------------
| Personnel (FTEs), | 753 | 845 | -10.9% | 766 | 771 | 794 |
| average number of | | | | | | |
| employees from the | | | | | | |
| beginning of the | | | | | | |
| financial year1 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Banking Business | | | | | | |
| (incl. Private | | | | | | |
| Banking) | | | | | | |
--------------------------------------------------------------------------------
| Cost-to-income ratio | 0.57 | 0.72 | -20.8% | 0.57 | 0.51 | 0.52 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Borrowing from the | 3,199. | 3,105 | 3.0% | 3,035. | 3,095.1 | 3,091.0 |
| public1 | 0 | .2 | | 8 | | |
--------------------------------------------------------------------------------
| Lending to the | 6,237. | 5,599 | 11.4% | 6,123. | 6,005.9 | 5,826.4 |
| public1 | 1 | .1 | | 7 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital adequacy | 16.2 | 14.1 | 14.8% | 15.9 | 15.4 | 14.5 |
| ratio, %1 | | | | | | |
--------------------------------------------------------------------------------
| Tier 1 capital ratio, | 9.6 | 9.0 | 6.8% | 9.5 | 9.1 | 9.1 |
| %1 | | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted | 3,527. | 3,335 | 5.7% | 3,460. | 3,493.4 | 3,394.8 |
| commitments1 | 2 | .5 | | 2 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Asset Management | | | | | | |
--------------------------------------------------------------------------------
| Mutual fund volume1 | 4,096. | 2,415 | 69.6% | 3,786. | 3,488.0 | 2,927.4 |
| | 1 | .2 | | 2 | | |
--------------------------------------------------------------------------------
| Managed and brokered | 6,382. | 4,515 | 41.4% | 5,995. | 5,680.5 | 5,082.9 |
| assets1 | 3 | .0 | | 6 | | |
--------------------------------------------------------------------------------
1) at the end of the period
quarterly trends in the bank group
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2 | 10-12 | 7-9 | 4-6 | 1-3/200 |
| | 010 | 2009 | 2009 | 2009 | 9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net interest income | 38.8 | 40.1 | 40.6 | 39.4 | 32.4 |
--------------------------------------------------------------------------------
| Dividends | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 |
--------------------------------------------------------------------------------
| Net commission income | 12.2 | 13.0 | 10.0 | 9.7 | 8.0 |
--------------------------------------------------------------------------------
| Net income from financial | -3.1 | -0.7 | 0.3 | 3.7 | -2.6 |
| transactions | | | | | |
--------------------------------------------------------------------------------
| Net income from investment | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| properties | | | | | |
--------------------------------------------------------------------------------
| Other operating income | 0.9 | 0.5 | 0.7 | 0.9 | 0.7 |
--------------------------------------------------------------------------------
| Total operating income | 48.8 | 52.9 | 51.6 | 53.7 | 38.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Staff costs | -12.4 | -12.7 | -10.5 | -11.6 | -11.8 |
--------------------------------------------------------------------------------
| Other administrative expenses | -10.3 | -10.1 | -10.2 | -10.8 | -10.7 |
--------------------------------------------------------------------------------
| Depreciation of tangible and | -1.2 | -1.3 | -1.2 | -1.2 | -1.2 |
| intangible assets | | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -3.8 | -6.2 | -4.2 | -4.1 | -4.0 |
--------------------------------------------------------------------------------
| Total operating expenses | -27.8 | -30.2 | -26.1 | -27.7 | -27.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairment and reversal of | | | | | |
| impairment on | | | | | |
--------------------------------------------------------------------------------
| tangible and intangible | - | - | - | - | 0.0 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Write-downs on credits and | -4.4 | -5.2 | -8.4 | -15.9 | -1.6 |
| other commitments | | | | | |
--------------------------------------------------------------------------------
| Share of profit from | -0.1 | -0.3 | 0.1 | 0.5 | 0.1 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Operating profit from | 16.6 | 17.1 | 17.2 | 10.5 | 9.3 |
| continuing operations | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basis for the calculation of key figures 2010
--------------------------------------------------------------------------------
| Earnings per share (EPS), EUR |
--------------------------------------------------------------------------------
| Profit for the year after taxes attributable to the shareholders of Aktia |
| Bank plc |
--------------------------------------------------------------------------------
| Average number of shares over the period (adjusted for new issue) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity per share (NAV), EUR |
--------------------------------------------------------------------------------
| Equity attributable to the shareholders of Aktia Bank plc |
--------------------------------------------------------------------------------
| Number of shares at the end of the period. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity (ROE), % |
--------------------------------------------------------------------------------
| Profit for the period (on annual basis) x 100 |
--------------------------------------------------------------------------------
| Average equity |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cost-to-income ratio (banking business) |
--------------------------------------------------------------------------------
| Total operating expenses |
--------------------------------------------------------------------------------
| Total operating income |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Banking business risk-weighted commitments |
--------------------------------------------------------------------------------
| Total assets in the balance sheet and off-balance sheet items, including |
| derivatives valued and risk-weighted in accordance with regulation 4.3 |
| issued by the Finnish Financial Supervision Authority. |
| The capital requirements for operational risks have been calculated and |
| risk-weighted in accordance with regulation 4.3i issued by the Finnish |
| Financial Supervision Authority. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital adequacy ratio, % (banking business) |
--------------------------------------------------------------------------------
| Capital base (Tier 1 capital + Tier 2 capital) x 100 |
--------------------------------------------------------------------------------
| Risk-weighted commitments |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The capital base is calculated in accordance with regulation 4.3a issued by |
| the Finnish Financial Supervision Authority. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Tier 1 capital ratio, % (banking business) |
--------------------------------------------------------------------------------
| Tier 1 capital x 100 |
--------------------------------------------------------------------------------
| Risk-weighted commitments |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes to the accounts announcement
Note 1 Basis for preparing the interim report
Aktia Bank plc's consolidated financial statement is prepared in accordance with
International Financial Reporting Standards (IFRS) as approved by the EU.
The interim report for the period 1 January - 31 March 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.
The interim report for the period 1 January - 31 March 2010 was approved by the
Board of Directors on 7 May 2010.
Balance sheet items in the Report by the Board of Directors are mainly given in
EUR million without decimals.
Aktia Bank plc's financial statements and interim reports are available on
Aktia's website www.aktia.fi
Important accounting principles
In preparing this interim report the Group has followed the accounting
principles applicable to the annual report of 31 December 2009.
In February 2009, Aktia Life Insurance was sold to Aktia plc. The life insurance
business was a separate segment in the Bank Group, which is why Aktia Life
Insurance is to be reported as a discontinued operation in accordance with IFRS
5 as of 2009.
accounting standards valid 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 quarter 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 quarter 2010.
Note 2 The Bank Group's segment report
As of 2009 Aktia Bank plc reports three segments, Banking Business, Asset
Management and Miscellaneous.
Allocation principles
Net interest income in the segments, in Banking Business and Asset Management
includes the margins on volumes of borrowing and lending. Reference interest
rates for borrowing and lending and the interest rate risk that arises because
of new pricing being out of step are transferred to Treasury in accordance with
the Group's internal pricing. Treasury assumes responsibility for the Group's
interest rate risk, liquidity and balance protection measures for which
management has issued authority. The costs of central support functions are
allocated to the segments in accordance with various allocation rules.
Until further notice, Aktia plc and Aktia Bank plc are not allocating equity to
the various segments. Miscellaneous consists of any items in the income
statement and balance sheet that are not allocated to the various segments.
Internal Group transactions between legal entities are eliminated and reported
within each segment if the legal entities are in the same segment. Internal
Group transactions between legal entities in different segments are included in
the eliminations.
The share of profits in associated undertakings, eliminations related to
acquisitions and the minority interest's share as well as other Group
adjustments are included in the eliminations. The pricing between segments is
based on market value.
--------------------------------------------------------------------------------
| Note 2. Segment report for Bank Group | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Banking | | Asset |
| | | Business | | Management |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2010 | 1-3/2009 | 1-3/2010 | 1-3/2009 |
--------------------------------------------------------------------------------
| Net interest income | 38.1 | 30.8 | 0.7 | 0.4 |
--------------------------------------------------------------------------------
| Dividends | 1.4 | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Net commission income | 8.1 | 5.3 | 4.2 | 2.7 |
--------------------------------------------------------------------------------
| Net income from | -3.1 | -2.3 | 0.0 | -0.2 |
| financial transactions | | | | |
--------------------------------------------------------------------------------
| Net income from | 0.0 | 0.0 | - | - |
| investment properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | 0.8 | 0.6 | 0.1 | 0.0 |
--------------------------------------------------------------------------------
| Total operating income | 45.2 | 34.4 | 5.0 | 2.9 |
--------------------------------------------------------------------------------
| Staff costs | -8.8 | -8.0 | -2.3 | -1.9 |
--------------------------------------------------------------------------------
| Other administrative | -11.8 | -12.2 | -1.5 | -1.0 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible | | | | |
| and | | | | |
--------------------------------------------------------------------------------
| intangible assets | -0.6 | -0.6 | -0.1 | -0.2 |
--------------------------------------------------------------------------------
| Other operating expenses | -2.3 | -2.3 | -0.2 | -0.2 |
--------------------------------------------------------------------------------
| Total operating expenses | -23.4 | -23.0 | -4.1 | -3.3 |
--------------------------------------------------------------------------------
| Impariment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and | | | | |
| intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | - | - | - |
--------------------------------------------------------------------------------
| Write-downs on credits | | | | |
| and other | | | | |
--------------------------------------------------------------------------------
| commitments | -4.4 | -1.6 | - | - |
--------------------------------------------------------------------------------
| Share of profit from | - | - | - | - |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | 17.4 | 9.8 | 0.9 | -0.4 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit from | - | - | - | - |
| discontinuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | 17.4 | 9.8 | 0.9 | -0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Life | | Miscellaneou |
| | | Insurance | | s |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2010 | 1-3/2009 | 1-3/2010 | 1-3/2009 |
--------------------------------------------------------------------------------
| Net interest income | - | - | 0.0 | 1.1 |
--------------------------------------------------------------------------------
| Dividends | - | - | - | 1.3 |
--------------------------------------------------------------------------------
| Net commission income | - | - | -0.1 | 0.1 |
--------------------------------------------------------------------------------
| Net income from | - | - | - | - |
| life-insurance | | | | |
--------------------------------------------------------------------------------
| Net income from | - | - | - | - |
| financial transactions | | | | |
--------------------------------------------------------------------------------
| Net income from | - | - | 0.0 | 0.0 |
| investment properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | - | - | 3.7 | 0.4 |
--------------------------------------------------------------------------------
| Total operating income | 0.0 | 0.0 | 3.6 | 2.9 |
--------------------------------------------------------------------------------
| Staff costs | - | - | -1.3 | -1.9 |
--------------------------------------------------------------------------------
| Other administrative | - | - | -0.7 | 2.3 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Negative goodwill | - | - | - | - |
| recorded as income | | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible | | | | |
| and | | | | |
--------------------------------------------------------------------------------
| intangible assets | - | - | -0.5 | -0.4 |
--------------------------------------------------------------------------------
| Other operating expenses | - | - | -1.3 | -1.5 |
--------------------------------------------------------------------------------
| Total operating expenses | 0.0 | 0.0 | -3.9 | -1.5 |
--------------------------------------------------------------------------------
| Impariment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and | | | | |
| intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | - | - | - |
--------------------------------------------------------------------------------
| Write-downs on credits | | | | |
| and other | | | | |
--------------------------------------------------------------------------------
| commitments | - | - | - | - |
--------------------------------------------------------------------------------
| Share of profit from | - | - | - | - |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | 0.0 | 0.0 | -0.2 | 1.4 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit from | - | 0.1 | - | - |
| discontinuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | 0.0 | 0.1 | -0.2 | 1.4 |
--------------------------------------------------------------------------------
| Contribution of | | | | |
| insurance business | | | | |
--------------------------------------------------------------------------------
| to the Groups' operating | - | -0.3 | | |
| profit | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Elimination | | Total Group |
| | | s | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3/2010 | 1-3/2009 | 1-3/2010 | 1-3/2009 |
--------------------------------------------------------------------------------
| Net interest income | - | 0.0 | 38.8 | 32.4 |
--------------------------------------------------------------------------------
| Dividends | -1.4 | -1.3 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Net commission income | 0.0 | -0.1 | 12.2 | 8.0 |
--------------------------------------------------------------------------------
| Net income from | - | - | - | - |
| life-insurance | | | | |
--------------------------------------------------------------------------------
| Net income from | - | - | -3.1 | -2.6 |
| financial transactions | | | | |
--------------------------------------------------------------------------------
| Net income from | 0.0 | 0.0 | 0.0 | 0.0 |
| investment properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | -3.7 | -0.4 | 0.9 | 0.7 |
--------------------------------------------------------------------------------
| Total operating income | -5.0 | -1.7 | 48.8 | 38.5 |
--------------------------------------------------------------------------------
| Staff costs | -0.1 | 0.0 | -12.4 | -11.8 |
--------------------------------------------------------------------------------
| Other administrative | 3.7 | 0.1 | -10.3 | -10.7 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Negative goodwill | - | - | - | - |
| recorded as income | | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible | | | | |
| and | | | | |
--------------------------------------------------------------------------------
| intangible assets | - | - | -1.2 | -1.2 |
--------------------------------------------------------------------------------
| Other operating expenses | 0.0 | 0.0 | -3.8 | -4.0 |
--------------------------------------------------------------------------------
| Total operating expenses | 3.6 | 0.2 | -27.8 | -27.7 |
--------------------------------------------------------------------------------
| Impariment and reversing | | | | |
| items | | | | |
--------------------------------------------------------------------------------
| of tangible and | | | | |
| intangible | | | | |
--------------------------------------------------------------------------------
| assets | - | 0.0 | - | 0.0 |
--------------------------------------------------------------------------------
| Write-downs on credits | | | | |
| and other | | | | |
--------------------------------------------------------------------------------
| commitments | - | - | -4.4 | -1.6 |
--------------------------------------------------------------------------------
| Share of profit from | -0.1 | 0.1 | -0.1 | 0.1 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | -1.5 | -1.5 | 16.6 | 9.3 |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit from | - | -0.4 | - | -0.3 |
| discontinuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | -1.5 | -1.9 | 16.6 | 9.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Banking | | Asset |
| | | Business | | Management |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.201 | 31.12.2009 | 31.3.2010 | 31.12.2009 |
| | 0 | | | |
--------------------------------------------------------------------------------
| Cash and balances with | 318.4 | 336.4 | 0.1 | 0.1 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | | |
| reported at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | 3.7 | 3.6 | - | - |
--------------------------------------------------------------------------------
| Financial assets | 2 826.0 | 2 655.8 | 7.6 | 7.3 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | 6 520.5 | 6 173.7 | 38.4 | 34.4 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | - | - | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | 427.8 | 662.4 | 4.9 | 5.0 |
--------------------------------------------------------------------------------
| Total assets | 10 096.4 | 9 831.9 | 51.0 | 46.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | 4 574.8 | 4 609.2 | 154.0 | 154.7 |
--------------------------------------------------------------------------------
| Debt securities issued | 3 040.7 | 2 758.1 | - | - |
--------------------------------------------------------------------------------
| Technical provision for | - | - | - | - |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 1 994.6 | 1 506.9 | 5.3 | 6.7 |
--------------------------------------------------------------------------------
| Total liabilities | 9 610.1 | 8 874.2 | 159.4 | 161.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Life | | Miscellaneou |
| | | Insurance | | s |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.201 | 31.12.2009 | 31.3.2010 | 31.12.2009 |
| | 0 | | | |
--------------------------------------------------------------------------------
| Cash and balances with | - | - | - | - |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | | |
| reported at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | - | - | - | - |
--------------------------------------------------------------------------------
| Financial assets | - | - | - | 2.9 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | - | - | - | - |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | - | - | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | - | - | 8.8 | -293.6 |
--------------------------------------------------------------------------------
| Total assets | 0.0 | 0.0 | 8.8 | -290.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | - | - | - | - |
--------------------------------------------------------------------------------
| Debt securities issued | - | - | - | - |
--------------------------------------------------------------------------------
| Technical provision for | - | - | - | - |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | - | - | 15.9 | 194.4 |
--------------------------------------------------------------------------------
| Total liabilities | 0.0 | 0.0 | 15.9 | 194.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Elimination | | Total Group |
| | | s | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.201 | 31.12.2009 | 31.3.2010 | 31.12.2009 |
| | 0 | | | |
--------------------------------------------------------------------------------
| Cash and balances with | - | - | 318.5 | 336.5 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | | |
| reported at fair value | | | | |
--------------------------------------------------------------------------------
| through profit and loss | - | - | 3.7 | 3.6 |
--------------------------------------------------------------------------------
| Financial assets | -3.8 | -3.6 | 2 829.8 | 2 662.4 |
| available for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | -3.0 | -3.7 | 6 555.9 | 6 204.4 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | - | - | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | -41.4 | -41.1 | 400.0 | 332.7 |
--------------------------------------------------------------------------------
| Total assets | -48.3 | -48.5 | 10 107.9 | 9 539.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | -3.0 | -3.7 | 4 725.9 | 4 760.2 |
--------------------------------------------------------------------------------
| Debt securities issued | -3.8 | -3.6 | 3 036.8 | 2 754.5 |
--------------------------------------------------------------------------------
| Technical provision for | - | - | - | - |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | -70.5 | -66.8 | 1 945.3 | 1 641.2 |
--------------------------------------------------------------------------------
| Total liabilities | -77.3 | -74.2 | 9 708.0 | 9 155.8 |
--------------------------------------------------------------------------------
Note 3 Derivatives and off-balance sheet commitments
Derivative instruments at 31 March 2010
--------------------------------------------------------------------------------
| Hedging derivative instruments (EUR | | | |
| million) | | | |
--------------------------------------------------------------------------------
| 31.3.2010 | Total | Assets. | Liabiliti |
| | nominal | fair | es. fair |
| | amount | value | value |
--------------------------------------------------------------------------------
| Fair value hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 2,927.5 | 81.6 | 32.1 |
--------------------------------------------------------------------------------
| Total | 2,927.5 | 81.6 | 32.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 960.0 | 51.3 | 0.4 |
--------------------------------------------------------------------------------
| Total | 960.0 | 51.3 | 0.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments valued through | | | |
| profit and loss | | | |
--------------------------------------------------------------------------------
| Interest rate-related *) | 7,081.0 | 121.7 | 121.4 |
--------------------------------------------------------------------------------
| Currency-related | 203.9 | 1.7 | 1.5 |
--------------------------------------------------------------------------------
| Equity-related **) | 112.8 | 1.0 | 1.0 |
--------------------------------------------------------------------------------
| Other derivative instruments **) | 8.4 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Total | 7,406.2 | 124.8 | 124.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total derivative instruments | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 10,968.5 | 254.5 | 153.8 |
--------------------------------------------------------------------------------
| Currency-related | 203.9 | 1.7 | 1.5 |
--------------------------------------------------------------------------------
| Equity-related | 112.8 | 1.0 | 1.0 |
--------------------------------------------------------------------------------
| Other derivative instruments | 8.4 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Total | 11,293.7 | 257.6 | 156.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments at 31 March | | | |
| 2009 | | | |
| Hedging derivative instruments | | | |
| (EUR million) | | | |
--------------------------------------------------------------------------------
| 31.3.2009 | Total | Assets. | Liabiliti |
| | nominal | fair | es. fair |
| | amount | value | value |
--------------------------------------------------------------------------------
| Fair value hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 1,340.0 | 58.5 | - |
--------------------------------------------------------------------------------
| Total | 1,340.0 | 58.5 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow hedging | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 1,232.0 | 37.6 | 19.9 |
--------------------------------------------------------------------------------
| Total | 1,232.0 | 37.6 | 19.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments valued through | | | |
| profit and loss | | | |
--------------------------------------------------------------------------------
| Interest rate-related *) | 6,993.0 | 104.9 | 103.6 |
--------------------------------------------------------------------------------
| Currency-related | 171.2 | 2.3 | 2.8 |
--------------------------------------------------------------------------------
| Equity-related **) | 114.0 | 1.8 | 1.8 |
--------------------------------------------------------------------------------
| Other derivative instruments **) | 8.6 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Total | 7,286.8 | 109.6 | 108.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total derivative instruments | | | |
--------------------------------------------------------------------------------
| Interest rate-related | 9,565.0 | 201.0 | 123.5 |
--------------------------------------------------------------------------------
| Currency-related | 171.2 | 2.3 | 2.8 |
--------------------------------------------------------------------------------
| Equity-related | 114.0 | 1.8 | 1.8 |
--------------------------------------------------------------------------------
| Other derivative instruments | 8.6 | 0.6 | 0.6 |
--------------------------------------------------------------------------------
| Total | 9,858.8 | 205.7 | 128.7 |
--------------------------------------------------------------------------------
| *) Interest-linked derivatives include interest rate hedging provided for |
| local banks which after back-to-back hedging with third parties amounted to |
| EUR 6,689.0 (6,674.7) million. |
| **) All equity-related and other derivative instruments relate to the |
| hedging of structured debt products. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Off-balance sheet commitments
--------------------------------------------------------------------------------
| (EUR million) | 31.3.201 | 31.12.20 | 31.3.2009 |
| | 0 | 09 | |
--------------------------------------------------------------------------------
| Commitments provided to a third party on | | | |
| behalf of the customers | | | |
--------------------------------------------------------------------------------
| Guarantees | 49.3 | 49.9 | 53.6 |
--------------------------------------------------------------------------------
| Other commitments provided to a third | 6.3 | 7.3 | 6.9 |
| party | | | |
--------------------------------------------------------------------------------
| Irrevocable commitments provided on behalf | | | |
| of customers | | | |
--------------------------------------------------------------------------------
| Unused credit arrangements | 538.0 | 510.9 | 519.1 |
--------------------------------------------------------------------------------
| Other commitments provided to a third | - | - | - |
| party | | | |
--------------------------------------------------------------------------------
| Off-balance sheet commitments | 593.5 | 568.1 | 579.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 4 The Bank Group's risk exposure
Consolidated capital adequacy for Bank Group
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Summary (EUR million) | 3/2010 | 12/2009 | 9/2009 | 6/2009 | 3/2009 |
--------------------------------------------------------------------------------
| Tier 1 capital | 337.5 | 329.0 | 319.2 | 309.4 | 298.9 |
--------------------------------------------------------------------------------
| Tier 2 capital | 235.4 | 222.8 | 219.5 | 183.4 | 172.8 |
--------------------------------------------------------------------------------
| Capital base | 572.9 | 551.8 | 538.7 | 492.8 | 471.8 |
--------------------------------------------------------------------------------
| Risk-weighted amount for | 3,214. | 3,147.5 | 3,220.7 | 3,122.2 | 3,062.8 |
| credit and counterpart | 5 | | | | |
| risks | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted amount for | - | - | - | - | - |
| market risks 1) | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted amount for | 312.7 | 312.7 | 272.7 | 272.7 | 272.7 |
| operative risks | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted commitments | 3,527. | 3,460.2 | 3,493.4 | 3,394.8 | 3,335.5 |
| | 2 | | | | |
--------------------------------------------------------------------------------
| Capital adequacy ratio, % | 16.2 | 15.9 | 15.4 | 14.5 | 14.1 |
--------------------------------------------------------------------------------
| Tier 1 Capital ratio, % | 9.6 | 9.5 | 9.1 | 9.1 | 9.0 |
--------------------------------------------------------------------------------
| Minimum capital requirement | 282.2 | 276.8 | 279.5 | 271.6 | 266.8 |
--------------------------------------------------------------------------------
| Capital buffer (difference | 290.7 | 275.0 | 259.2 | 221.2 | 204.9 |
| 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.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 3/2010 | 12/2009 | 9/2009 | 6/2009 | 3/2009 |
--------------------------------------------------------------------------------
| 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 | 32.7 | 32.7 | 30.0 | 30.2 | 24.0 |
--------------------------------------------------------------------------------
| Retained earnings | 95.8 | 70.7 | 70.7 | 70.7 | 70.7 |
--------------------------------------------------------------------------------
| Profit for the period | 11.6 | 38.0 | 26.0 | 13.9 | 5.1 |
--------------------------------------------------------------------------------
| ./. Provision for dividends | -3.7 | -12.9 | -7.5 | -5.0 | - |
| to shareholders | | | | | |
--------------------------------------------------------------------------------
| Total | 343.9 | 336.0 | 326.7 | 317.4 | 307.4 |
--------------------------------------------------------------------------------
| ./. Intangible assets | -6.4 | -7.0 | -7.5 | -8.0 | -8.4 |
--------------------------------------------------------------------------------
| ./. Shares in insurance | - | - | - | - | - |
| companies | | | | | |
--------------------------------------------------------------------------------
| Tier 1 capital | 337.5 | 329.0 | 319.2 | 309.4 | 298.9 |
--------------------------------------------------------------------------------
| Fund at fair value | 21.6 | 13.3 | 14.9 | -16.3 | -21.6 |
--------------------------------------------------------------------------------
| Upper Tier 2 capital | 45.0 | 45.0 | 45.0 | 45.0 | 45.0 |
--------------------------------------------------------------------------------
| Lower Tier 2 capital | 168.8 | 164.5 | 159.6 | 154.7 | 149.5 |
--------------------------------------------------------------------------------
| Tier 2 capital | 235.4 | 222.8 | 219.5 | 183.4 | 172.8 |
--------------------------------------------------------------------------------
| Total capital base | 572.9 | 551.8 | 538.7 | 492.8 | 471.8 |
--------------------------------------------------------------------------------
Risk-weighted commitments, credit and counterparty risks
--------------------------------------------------------------------------------
| Total exposures 3/2010 | | | (EUR million) |
--------------------------------------------------------------------------------
| Risk-weight | Balance assets | Off-balance | Total |
| | | sheet | |
| | | commitments | |
--------------------------------------------------------------------------------
| 0% | 1,499.5 | 38.5 | 1,538.0 |
--------------------------------------------------------------------------------
| 10% | 1,289.6 | 0.0 | 1,289.6 |
--------------------------------------------------------------------------------
| 20% | 1,235.4 | 278.3 | 1,513.7 |
--------------------------------------------------------------------------------
| 35% | 4,631.1 | 99.7 | 4,730.8 |
--------------------------------------------------------------------------------
| 50% | - | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| 75% | 585.2 | 86.6 | 671.8 |
--------------------------------------------------------------------------------
| 100% | 628.1 | 89.7 | 717.7 |
--------------------------------------------------------------------------------
| 150% | 14.6 | 0.6 | 15.3 |
--------------------------------------------------------------------------------
| Total | 9,883.6 | 593.5 | 10,477.2 |
--------------------------------------------------------------------------------
| Derivatives *) | 316.5 | - | 316.5 |
--------------------------------------------------------------------------------
| Total | 10,200.2 | 593.5 | 10,793.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Risk-weighted exposures, Basel 2 | | | (EUR |
| | | | million) |
--------------------------------------------------------------------------------
| Risk-weight | 3/2010 | 12/2009 | 9/2009 | 6/2009 | 3/2009 |
--------------------------------------------------------------------------------
| 0% | - | - | - | - | - |
--------------------------------------------------------------------------------
| 10% | 129.0 | 115.9 | 111.3 | 101.6 | 89.7 |
--------------------------------------------------------------------------------
| 20% | 258.6 | 252.5 | 341.9 | 291.8 | 290.8 |
--------------------------------------------------------------------------------
| 35% | 1,633.5 | 1,596.8 | 1,567.2 | 1,516.6 | 1,470.1 |
--------------------------------------------------------------------------------
| 50% | 0.1 | 0.1 | 4.8 | 3.5 | 3.0 |
--------------------------------------------------------------------------------
| 75% | 466.9 | 466.1 | 457.8 | 447.2 | 439.1 |
--------------------------------------------------------------------------------
| 100% | 673.4 | 673.3 | 694.0 | 702.5 | 720.9 |
--------------------------------------------------------------------------------
| 150% | 22.5 | 19.1 | 22.4 | 32.7 | 24.0 |
--------------------------------------------------------------------------------
| Total | 3,183.9 | 3,123.7 | 3,199.6 | 3,096.0 | 3,037.6 |
--------------------------------------------------------------------------------
| Derivatives | 30.6 | 23.8 | 21.1 | 26.2 | 25.2 |
| *) | | | | | |
--------------------------------------------------------------------------------
| Total | 3,214.5 | 3,147.5 | 3,220.7 | 3,122.2 | 3,062.8 |
--------------------------------------------------------------------------------
| *) 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.
Risk-weighted amounts for operational risks
--------------------------------------------------------------------------------
| Year | 20 | 20 | 20 | 200 | | 3/201 | 12/20 | 9/200 | 6/200 | 3/200 |
| | 09 | 08 | 07 | 6 | | 0 | 09 | 9 | 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 | 21.8 | 21.8 | 21.8 |
| requiremen | | | | | | | | | | |
| t for | | | | | | | | | | |
| operationa | | | | | | | | | | |
| l risk | | | | | | | | | | |
--------------------------------------------------------------------------------
| Risk-weigh | | | | | | 312.7 | 312.7 | 272.7 | 272.7 | 272.7 |
| ted | | | | | | | | | | |
| 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
%.
To the Board of Directors of Aktia Bank p.l.c.
REVIEW REPORT ON THE INTERIM REPORT OF AKTIA BANK P.L.C. AS OF 31.3.2010
introduction
We have reviewed the balance sheet as of 31.3.2010, the income statement, the
statement of changes in equity and the cash flow statement of Aktia Bank p.l.c.
for the three-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 31 March 2010 and the result of its operations and cash
flows for the three-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, 7 May 2010
PricewaterhouseCoopers Oy
Authorised Public Accountants
Jan Holmberg
Authorised Public Accountant
Helsinki 7 May 2010
Aktia Bank plc
Board of Directors
Aktia Bank plc
P.O. Box 207
Mannerheimintie 14
00101 Helsinki
Tel. +358 10 247 5000
Fax +358 10
247 6356
Managing Director Jussi Laitinen
tel. +358 10 247 5000
Deputy Managing Director,
CFO Stefan Björkman
tel. +358 10 247 5000
Investor Relations Officer Anna
Gabrán
tel. +358 10 247 6501
ir (at) aktia.fi
Business ID 2181702-8
BIC/S.W.I.F.T. HELSFIHH
Investor Relations
P.O. Box 207
Mannerheimintie 14
00101 Helsinki
Tel. +358 10 247 5000
Internet: www.aktia.fi
Contact: aktia (at) aktia.fi
E-mail: firstname.lastname
(at) aktia.fi
