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Aktia Bank plc: Interim report January-March 2014

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Aktia Bank plc
Interim report January-March 2014
6 May 2014 at 8:00 am

 

STRONG NET COMMISSION INCOME AND LOWER COSTS

CEO JUSSI LAITINEN

”Net commission income was strong, borrowing increased and the write-downs on credits remain on a low level. Continuing low interest rates resulted in a lower net interest income. Net interest income from traditional borrowing and lending was stable, whereas income from management of interest rate risks and hedging decreased as planned. The Action Plan 2015 proceeds well, and has already resulted in cost-cut of 4%. We continue our efforts to simplify the Group structure and increase cost-efficiency in the whole Group in 2014. Aktia’s Asset Management has received several awards again this year. Our Asset Management was awarded first prize in an evaluation carried out by the fund information and analyst company Morningstar, and Aktia was named best fund manager for the second year in a row”.
 

JANUARY-MARCH 2014: OPERATING PROFIT EUR 16.4 (19.5) MILLION

  • The Group’s Operating profit amounted to EUR 16.4 (19.5) million and profit for the period amounted to EUR 13.1 (14.8) million.
  • Net commission income increased by 11% to EUR 18.8 (16.9) million and borrowing increased by 2% to EUR 3,861 (3,797) million. However, net interest income (NII) decreased to EUR 25.4 (30.1) million.
  • Earnings per share stood at EUR 0.20 (0.22).
  • According to the Basel III capital requirement the capital adequacy ratio stood at 17.3 (31 December 2013 Basel II: 19.3)% and the Core Tier 1 capital ratio at 13.6 (12.1)%.
  • Equity per share stood at EUR 8.55 (31 December 2013: 8.67) after dividend pay-out of EUR 0.42 in April.
  • Write-downs on credits and other commitments decreased to EUR 0.4 (1.1) million.
     
  • OUTLOOK 2014 (unchanged): Despite the persistent low interest rate level, the Group’s operating profit for 2014 is expected to reach approximately the 2013 level.

 

KEY FIGURES
(EUR million)		 1-3/2014 1-3/2013 ∆ %      10-12/2013 ∆ %      2013 7-9/2013 4-6/2013
Net interest income 25.4 30.1 -15% 27.3 -7% 112.6 26.9 28.3
Net commission income 18.8 16.9 11% 17.8 6% 70.7 17.4 18.6
Total operating income 52.0 57.5 -10% 57.3 -9% 224.2 53.6 55.7
Total operating expenses -36.1 -37.5 -4% -45.9 -21% -157.2 -34.6 -39.2
Operating profit before write downs on credits 16.9 20.6 -18% 12.2 38% 68.1 19.8 15.5
Write-downs on credits and other commitments -0.4 -1.1 -63% -1.1 -61% -2.7 -0.2 -0.4
Operating profit 16.4 19.5 -16% 11.1 48% 65.4 19.6 15.1
Cost-to-income ratio 0.72 0.67 7% 0.87 -17% 0.72 0.66 0.70
Earnings per share (EPS), EUR 0.20 0.22 -12% 0.18 12% 0.78 0.22 0.16
Equity per share (NAV)1, EUR 8.55 9.02 -5% 8.67 -1% 8.67 8.52 8.34
Return on equity (ROE), % 8.2 8.9 -8% 7.5 11% 8.1 9.4 6.9
Core Tier 1 capital ratio1, % * 13.6 - - 12.1 - 12.1 - -
Capital adequacy ratio1, % ** 17.3 20.0 - 19.3 - 19.3 19.1 20.3
Tier 1 capital ratio1, % ** 13.6 11.7 - 12.3 - 12.3 12.2 12.1
Write-downs on credits / total credit stock, % 0.01 0.02 -50% 0.02 -50% 0.04 0.00 0.01
1) At the end of the period
* According to Basel III
**2014 according to Basel III, all other periods according to Basel II		            
The Interim report January-March 2013 is a translation of the original Swedish version ”Delårsrapport 1.1-31.3.2014”. In case of discrepancies, the Swedish version shall prevail.               

 

         CEO Jussi Laitinen, tel. +358 10 247 6250
         CFO Fredrik Westerholm, tel. +358 10 247 6505
         IR: Anna Gabrán, tel. +358 10 247 6501, ir@aktia.fi
         Media: Malin Pettersson, tel. +358 10 247 6369

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