Aktia Bank plc Interim Report for the Bank Group 1 January - 31 March 2009
Aktia Bank plc
Interim Report
12.5.2009 at 10.00
Not for release or distribution in the United States, Australia, Canada or Japan
Aktia Bank plc Interim Report for the Bank Group 1 January - 31 March 2009
Activity of the report period
Profit
The operating profit of the Bank Group for continuing operations during the
first quarter was EUR 11.5 million. Profit for the period after tax was EUR 8.2
million.
Aktia Bank plc agreed to sell its shares in Aktia Life Insurance Ltd to the
group's parent company Aktia plc under the condition that ownership, tenure and
all other management rights attributable to the shareholders are transferred
once it is clear that the Financial Supervisory Authority does not oppose the
acquisition. The price reflects the life insurance company's book net worth as
at 28 February 2009 of EUR 45.5 million and the transaction will have no effect
on the Bank Group's profit. The Aktia Bank Group's capital adequacy ratio will,
however, improve marginally. Aktia Life Insurance is reported as a business
being discontinued in the Bank Group.
Aktia Bank plc's new division of operating segments has been changed with effect
from 1 January 2009, with the Retail Banking and Corporate Banking & Treasury
segments being combined under the Banking Business segment. The other operating
segments are Asset Management and Other. The Other segment encompasses certain
administrative functions within Aktia Bank plc and return on equity. Comparative
figures for 2008 relating to the new segmentation were published on 8 April
2009.
The banking business returned a profit of EUR 12.0 million. Asset management
suffered as a result of the situation in the investment market and returned an
operating profit of EUR -0.4 million.
Income
The Bank Group's total income was EUR 40.7 million, of which net interest income
accounted for EUR 32.4 million. The derivatives used by Aktia to limit its
interest rate risk had a positive impact to the tune of EUR 2.0 million during
the period.
Net commission income totalled EUR 8.0 million. Commission income from asset
management and brokering amounted to EUR 2.5 million. Fund and insurance
brokerage generated income totalling EUR 3.7 million, accounting for 31.9% of
the commission income. Card and payment services commission was EUR 2.8 million.
Total commission costs were EUR 3.5 million. Among the commission costs, the
commission paid to savings and local co-operative banks for brokered mortgages
amounted to EUR 0.9 million.
Other operating income totalled EUR 0.7 million.
Expenditure
The Bank Group's total costs were EUR 27.7 million.
Staff costs totalled EUR 11.8 million. Other administration expenses amounted to
EUR 10.7 million. Among other administration expenses, the largest cost items
are primarily attributed to communication and IT, which accounted for 43.5% of
other administration expenses.
Depreciation and write-downs on tangible and intangible assets totalled EUR 1.2
million. Other operating costs totalled EUR 4.0 million. The expenses for rented
premises accounted for more than half of the other operating expenses overall.
Balance sheet and off-balance sheet
commitments
The Bank Group's balance sheet total amounted to EUR 8,859 million (EUR 9,520
million at 31 December 2008) at the end of the period.
Total lending to the public by the Bank Group increased from the year-end by
3.1% to EUR 5,599 million (EUR 5,432 million at 31 December 2008). Households
accounted for 80.4% of the total credit stock or EUR 4,499 million. Of the loans
extended to households, 86.5% were secured against housing collateral (according
to Basel 2). Excluding Aktia Real Estate Mortgage Bank's loans brokered and
capitalised by savings and local co-operative banks, lending by the banking
group amounted to EUR 4,514 million.
Interest-bearing securities available for sale were EUR 2,379 million (EUR 2,808
million at 31 December 2008). These assets mainly consist of the banking
business' liquidity reserve and can be used as security for transactions
involving binding repurchase terms, known as repo agreements.
Deposits from the public and public sector entities amounted to a total of EUR
3,105 million (EUR 3,099 million 31 December 2008). These deposits are
strengthening Aktia's liquidity in a volatile market.
Outstanding Aktia certificates of deposit amounted to EUR 350 million at the end
of the period.
Off-balance sheet commitments totalled EUR 580 million (EUR 533 million at 31
December 2008). Credit equivalents for derivative instruments are not included
in off-balance sheet commitments, as their market value is now incorporated into
the balance sheet.
The Bank Group's equity amounted to EUR 299 million (EUR 300 million at 31
December 2008) at the end of the reporting period. The Group's fund at fair
value amounted to EUR -10 million (EUR -35 million at 31 December 2008).
Capital adequacy
The Aktia Bank Group's capital adequacy amounted to 14.2%.
The Tier 1 capital ratio was 9.0%. Capital adequacy, calculated according to the
Basel 2 rules, was improved by Aktia Bank selling Aktia Life Insurance to Aktia
plc in March, thus avoiding deductions for holdings in the insurance company in
the capital adequacy calculation mentioned. The Bank Group's capital adequacy
remains strong and meets the capital adequacy target, clearly exceeding the
regulatory requirements.
Rating
Aktia Bank plc's credit rating by the international credit rating agency Moody's
Investors Service has been confirmed as the best classification, P-1, for
short-term borrowing. The credit ratings for long-term borrowing and financial
strength were A1 and C respectively, all with stable prospects.
The subsidiary Aktia Real Estate Mortgage Bank Plc has issued covered bonds with
the highest credit rating of Aaa from Moody's Investors Service.
Valuation of financial assets
Value changes reported via the fund at fair value
Negative changes in the value of interest-bearing securities where the issuer
has not noted an inability to pay and negative changes in the value of shares
and participations which are not deemed to be long-term or significant are
reported in the fund at fair value, which for the Group, taking cash flow
hedging into consideration, amounted to EUR -11 million after deferred tax,
compared with EUR -35 million at 31 December 2008.
In the fund at fair value as at 31 March 2009, EUR 22 million was attributed to
negative valuation differences in interest-bearing securities which are mainly
due to continued poor liquidity and investor's demands for high returns as a
results of the general uncertainty in the money market. These negative changes
in the value of interest-bearing securities are not realised provided that the
issuer does not become unable to pay or the security is realised before its
maturity.
Specification of the fund at fair value
--------------------------------------------------------------------------------
| EUR million | 31.3.2009 | 31.12.2008 | Change |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Shares and participations | | | |
--------------------------------------------------------------------------------
| | Banking business | - | -0.2 | 0.2 |
--------------------------------------------------------------------------------
| | Life insurance business | - | -2.9 | 2.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Direct interest-bearing securities | | | |
--------------------------------------------------------------------------------
| | Banking business | -21.6 | -26.2 | 4.6 |
--------------------------------------------------------------------------------
| | Life insurance business | - | -18.2 | 18.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow hedging | 11.1 | 12.4 | -1.3 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Fund at fair value, total | -10.5 | -35.1 | 24.6 |
--------------------------------------------------------------------------------
Value changes reported via income statement
Write-downs as a result of significant or long-term negative changes in the
value of shares and share funds and of interest-bearing securities where the
issuer has noted an inability to pay stood at EUR 0.4 million. Of these
write-downs, EUR 0.4 million related to interest-bearing securities.
Write-downs of financial assets
--------------------------------------------------------------------------------
| | EUR million | 1-3 2009 | 1-12 2008 |
--------------------------------------------------------------------------------
| Interest-bearing securities | | |
--------------------------------------------------------------------------------
| | Banking business | 0.4 | 3.6 |
--------------------------------------------------------------------------------
| | Life insurance business | - | 5.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shares and participations | | |
--------------------------------------------------------------------------------
| | Banking business | - | 1.0 |
--------------------------------------------------------------------------------
| | Life insurance business | - | 29.4 |
--------------------------------------------------------------------------------
| Total | | 0.4 | 39.2 |
--------------------------------------------------------------------------------
Write-downs of loan and guarantee claims
Write-downs based on individual examination of loan and guarantee claims
totalled EUR -1.7 million. Reversals of previously booked losses amounted to
EUR 0.1 million so that the cost effect on the profit for the period was
EUR -1.6 million. In addition to individual write-downs, group write-downs were
made where there were objective reasons to believe there was uncertainty in
relation to the repayment of claims in underlying credit portfolios. Group
write-downs for households and small companies stood at EUR 7.4 million,
unchanged from the year-end, and are based on anticipated losses in relation to
the market situation.
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
There were no significant changes to the composition of the credit portfolio
during the first quarter. The share of household loans increased slightly to
80.4% (80.0%) of the total credit stock. The share of housing loans within the
total loan stock also increased slightly to 76.6% (74.4%). Of the loans to
households, 86.5% are secured against adequate collateral in accordance with
Basel 2. Mortgage lending totalled EUR 2,123 (EUR 1,968 million at 31 December
2008), of which EUR 1,085 million was brokered by savings and local co-operative
banks.
Corporate lending reduced as planned to 14.3% (14.4%) of the credit stock.
Lending to the public secured by collateral objects or unsecured within the
framework of the financing companies Aktia Corporate Finance and Aktia Card &
Finance totalled EUR 70.1 million (EUR 54.2 million at 31 December 2008),
representing 1.2 % of total lending.
Credit stock by sector
--------------------------------------------------------------------------------
| EUR million | 31.3.2009 | 31.12.2008 | Change | Percentage |
--------------------------------------------------------------------------------
| Corporate | 803 | 804 | -1 | 14.3% |
--------------------------------------------------------------------------------
| Housing associations | 237 | 220 | 17 | 4.2% |
--------------------------------------------------------------------------------
| Public sector | 10 | 12 | -2 | 0.2% |
| entities | | | | |
--------------------------------------------------------------------------------
| Non-profit | 50 | 47 | 3 | 0.9% |
| organisations | | | | |
--------------------------------------------------------------------------------
| Households | 4,499 | 4,349 | 150 | 80.4% |
--------------------------------------------------------------------------------
| Totalt | 5,599 | 5,432 | 167 | 100.0 % |
--------------------------------------------------------------------------------
Loans with payments 1-30 days overdue reduced during the period from 3.5% to
3.4% of the credit stock, including off-balance sheet guarantee commitments.
Loans with payments 31-90 days overdue rose from 0.90% to 1.01%, totalling
approximately EUR 53 million. Non-performing loans more than 90 days overdue,
including loans for collection, totalled approximately EUR 40 million,
corresponding to 0.75% (0.49% at 31 December 2008) of the entire credit stock
plus bank guarantees.
Undischarged debts by time overdue (EUR million)
--------------------------------------------------------------------------------
| Days | 31.3.2009 | % of the | 31.12.2008 | % of the |
| | | credit stock | | credit stock |
--------------------------------------------------------------------------------
| 1-30 | 182.0 | 3.44 | 186.6 | 3.53 |
--------------------------------------------------------------------------------
| 31-90 | 53.2 | 1.01 | 47.8 | 0.90 |
--------------------------------------------------------------------------------
| 91- | 40.3 | 0.75 | 26.2 | 0.49 |
--------------------------------------------------------------------------------
The Bank Group's financing and liquidity risks
Within the banking business, financing and liquidity risks are defined as the
availability of refinancing plus the differences in maturity between assets and
liabilities. The financing and liquidity risks are dealt with at legal company
level, and there is no financing connection between the Bank Group and the
insurance companies. The objective in the Bank Group is to be able to cover one
year's financing requirements using existing liquidity. Despite considerable
uncertainty in the financial markets, the liquidity status was good and this aim
was achieved.
Counterparty risks
Counterparty risks within Group Treasury liquidity management
At 31 March 2009, the banking business' liquidity portfolio - which is managed
by Group Treasury - stood at EUR 2,327 million (EUR 2,290 at 31 December 2008).
Counterparty risks arising in relation to liquidity management operations and
entry into derivative contracts are managed through the requirement for
high-level external ratings (minimum A3 rating from Moody's or equivalent),
conservative allocation and active selection of investment assets and rules
concerning maximum exposure per counterparty and asset category.
Of the financial assets available for sale, 51% (49% at 31 December 2008) were
investments in covered bonds, 36% (45% at 31 December 2008) were investments in
banks, 9% (3% at 31 December 2008) were investments in state-guaranteed bonds
and approximately 4% (3% at 31 December 2008) were investments in public sector
entities and companies. Of the financial assets, 1.1% did not meet the internal
rating requirements, while seven securities with a total market value of EUR 25
million were no longer eligible for refinancing with the central bank.
During the quarter, EUR -0.4 million in write-downs were carried out as a result
of the issuer having noted an inability to pay.
Rating distribution for the banking business' liquidity management operations
--------------------------------------------------------------------------------
| | 31.3.2009 | 31.12.2008 |
--------------------------------------------------------------------------------
| Aaa | 54.4 % | 49.4 % |
--------------------------------------------------------------------------------
| Aa1-Aa3 | 34.5 % | 42.3 % |
--------------------------------------------------------------------------------
| A1-A3 | 6.9 % | 4.9 % |
--------------------------------------------------------------------------------
| Baa1-Baa3 | 0.9 % | 0.9 % |
--------------------------------------------------------------------------------
| Ba1-Ba3 | 0.2 % | 0.0 % |
--------------------------------------------------------------------------------
| B1-B3 | 0.0 % | 0.0 % |
--------------------------------------------------------------------------------
| Caa1 or lower | 0.0 % | 0.0 % |
--------------------------------------------------------------------------------
| No rating | 3.1 % | 2.5 % |
--------------------------------------------------------------------------------
| Total | 100.0 % | 100.0 % |
--------------------------------------------------------------------------------
Market risks
The financial assets within the banking business are invested in securities with
access to market prices on an active market, and are valued in accordance with
official quoted prices. A significant or long-term fall in acquisition price
compared to market value is reported in the income statement while interest rate
fluctuations are reported under the fund at fair value after deductions for
deferred tax.
Market value and structural interest rate risk within the banking business
Market value interest rate risk refers to changes in value as a result of
interest rate fluctuations in financial assets available for sale. The net
change in the fund at fair value, including reserve for cash flow hedging,
relating to market value interest rate risk posted during the period totalled
EUR -5.3 million after the deductions for deferred tax. With an interest rate
increase of one percentage point for financial assets available for sale, the
net change of the fund at fair value at 31 March 2009 would be EUR -27.1 million
(EUR -27.2 million at 31 December 2008) after the deduction of deferred tax.
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. To reduce the volatility in the net interest income, structural
interest rate risk is primarily contained through the use of hedging derivative
instruments.
A parallel upward shift in the interest rate curve of one percentage point would
reduce the net interest income of the banking business for the next 12 months by
-5.4% (-5.4% at 31 December 2008), while the target for structural interest rate
risk management is a maximum of -6%. For the next 12-24 months, the net interest
income of the banking business would reduce by -1.0% (-6.0% at 31 December
2008), where the target for structural interest rate risk management is a
maximum of -8%.
A parallel downward shift in the interest rate curve of one percentage point
would increase the net interest income of the banking business for the next 12
months by +5.3% (+6.3% at 31 December 2008), while the target for structural
interest rate risk management is a maximum of -6%. For the next 12-24 months,
the net interest income of the banking business would increase by +2.5% (+7.9%
at 31 December 2008), where the target for structural interest rate risk
management is a maximum of -8%.
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 significant incidents were registered during the
reporting period.
Personnel
Converted into full-time employees, the number of staff employed by the Bank
Group fell by 135 to 746 people at the end of the reporting period. The average
number of full-time employees during the first quarter was 848.
With effect from 1 January 2009, Aktia Non-Life Insurance's Managing Director
Anders Nordman is responsible for Aktia Bank's Corporate Banking.
Events after end of the reporting period
Moody's Investors Service Ltd confirmed Aktia Bank plc's credit rating as A1 for
long-term borrowing, P-1 for short-term borrowing and C for financial strength,
all with stable prospects.
B.Sc. (Econ.) Magnus Backström, 51, has been appointed as the Managing Director
of Aktia Asset Management. He will assume his position on 1 June 2009.
The Financial Supervisory Authority announced on 28 April 2009 that it does not
oppose Aktia plc's acquisition of shares in Aktia Life Insurance Ltd by Aktia
Bank plc as published in a Stock Exchange Release on 8 April 2009.
The branch network in the Helsinki area, as well as in Turku and Tampere, has
been modified so as to combine a number of smaller branches into larger branch
centres.
Outlook and the risks that can affect it
The Bank Group's operating profitability during 2009 is expected to remain at a
stable level, unless the loan losses and risks in connection with individual
investments are increased.
A sustained good credit rating and the capital base are expected to enable
moderate growth and refinancing even in the current market situation. Decisions
will be made on any use of state refinancing guarantees on commercial grounds.
The importance of cost effectiveness will further increase in the current
economic and competitive situation.
An escalation of the financial unrest could even lead to permanent falls in the
value of individual investments that are currently deemed to be of good quality.
This would have a negative effect on the Bank Group's result. In addition, a
requirement for higher returns among investors may lead to a general price
decrease in financial assets, which would have a negative effect on the Bank
Group's capital adequacy.
Aktia Bank plc - Consolidated financial statements
Aktia Bank plc is the parent company in the Bank Group. It started its banking
business on 30 September 2008. As Aktia Bank plc was founded and started its
operations during 2008 no comparative figures are given in the financial
statements for the bank. The annual report of for January - December 2008
encompasses the result of Aktia Bank for the period 1 October - 31 December 2008
and the results of the subsidiaries for the period 1 January - 31 December 2008.
Consolidated income statement for Bank Group
--------------------------------------------------------------------------------
| (EUR million) | 1-3 2009 | 1-3 2008 | 1-12 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | |
--------------------------------------------------------------------------------
| Net interest income | 32,4 | - | 35.5 |
--------------------------------------------------------------------------------
| Dividends | 0,1 | - | 0.2 |
--------------------------------------------------------------------------------
| | Commission income | 11.5 | - | 26.0 |
--------------------------------------------------------------------------------
| | Commission expenses | -3.5 | - | -14.2 |
--------------------------------------------------------------------------------
| Net commission income | 8.0 | - | 11.8 |
--------------------------------------------------------------------------------
| Life Insurance, net income | - | - | - |
--------------------------------------------------------------------------------
| Net income from financial | -0.4 | - | -2.8 |
| transactions | | | |
--------------------------------------------------------------------------------
| Net income from investment | 0.0 | - | 2.9 |
| properties | | | |
--------------------------------------------------------------------------------
| Other operating income | 0.7 | - | 8.3 |
--------------------------------------------------------------------------------
| Total operating income | 40.7 | - | 55.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Staff costs | -11.8 | - | -13.9 |
--------------------------------------------------------------------------------
| Other administrative expenses | -10.7 | - | -10.3 |
--------------------------------------------------------------------------------
| Negative goodwill recorded as | - | - | - |
| income | | | |
--------------------------------------------------------------------------------
| Depreciation of tangible and | -1.2 | - | -1.5 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -4.0 | - | -5.7 |
--------------------------------------------------------------------------------
| Total operating expenses | -27.7 | - | -31.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairment and reversal of | | | |
| impairment on tangible and | | | |
| intangible | | | |
--------------------------------------------------------------------------------
| assets | 0.0 | - | 0.4 |
--------------------------------------------------------------------------------
| Write-downs on credits and other | -1.6 | - | -0.5 |
| commitments | | | |
--------------------------------------------------------------------------------
| Share of profit from associated | 0.1 | - | 0.2 |
| companies | | | |
--------------------------------------------------------------------------------
| Operating profit from continuing | 11.5 | - | 24.6 |
| operations | | | |
--------------------------------------------------------------------------------
| Taxes | -3.3 | - | -5.5 |
--------------------------------------------------------------------------------
| Profit for the period for | 8.2 | - | 19.1 |
| continuing operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | |
--------------------------------------------------------------------------------
| Profit for the period for | -1.8 | - | -34.9 |
| discontinued operations | | | |
--------------------------------------------------------------------------------
| Profit for the period | 6.4 | - | -15.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Shareholders in Aktia Bank plc | 6.7 | - | -16.4 |
--------------------------------------------------------------------------------
| Minority interest | -0.3 | - | 0.6 |
--------------------------------------------------------------------------------
| Total | 6.4 | - | -15.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR, attributable to | | |
| shareholders in Aktia Bank plc | | |
--------------------------------------------------------------------------------
| | Continuing operations | 2,825 958,16 | - | 6,164 833.41 |
--------------------------------------------------------------------------------
| | Discontinued operations | -596,129.27 | - | -11,625,755.2 |
| | | | | 7 |
--------------------------------------------------------------------------------
| Total | 2,229,828.89 | - | -5,460,921.86 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| There is no dilution effect to | | | |
| earnings per share. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated statement of comprehensive income for Bank Group | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | 1-3 2009 | 1-3 2008 | 1-12 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | |
--------------------------------------------------------------------------------
| Profit for the period for | 8.2 | - | 19.1 |
| continuing operations | | | |
--------------------------------------------------------------------------------
| Other comprehensive income after | | | |
| tax: | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | -1.5 | - | -29.1 |
| for financial assets available for | | | |
| sale | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | 4.9 | - | 13.6 |
| for cash flow hedging | | | |
--------------------------------------------------------------------------------
| Transferred to the income statement | 0.0 | - | 1.0 |
| for financial assets available for | | | |
| sale | | | |
--------------------------------------------------------------------------------
| Transferred to the income statement | 0.0 | - | -0.3 |
| for cash flow hedging | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for the | 11.6 | - | 4.3 |
| period for continuing operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | |
--------------------------------------------------------------------------------
| Profit for the period for | -1.8 | - | -34.9 |
| discontinued operations | | | |
--------------------------------------------------------------------------------
| Other comprehensive income after | | | |
| tax: | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | -11.3 | - | -40.1 |
| for financial assets available for | | | |
| sale | | | |
--------------------------------------------------------------------------------
| Change in valuation of fair value | - | - | - |
| for cash flow hedging | | | |
--------------------------------------------------------------------------------
| Transferred to the income statement | 0.3 | - | 24.4 |
| for financial assets available for | | | |
| sale | | | |
--------------------------------------------------------------------------------
| Transferred to the income statement | - | - | - |
| for cash flow hedging | | | |
--------------------------------------------------------------------------------
| Total comprehensive income for the | -12.8 | - | -50.5 |
| period for discontinued operations | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income for the | -1.2 | - | -46.2 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | | | |
| attributable to: | | | |
--------------------------------------------------------------------------------
| Shareholders in Aktia Bank plc | -0.8 | - | -46.3 |
--------------------------------------------------------------------------------
| Minority interest | -0.4 | - | 0.1 |
--------------------------------------------------------------------------------
| Total | -1.2 | - | -46.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated balance sheet for Bank Group | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | | 31.3.20 | 31.12.20 | Change | 31.3.20 |
| | | 09 | 08 | | 08 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets | | | | | | | |
--------------------------------------------------------------------------------
| Cash and balances with central | 358.9 | 506.3 | -29.1 % | - |
| banks | | | | |
--------------------------------------------------------------------------------
| Financial assets values through | 7.2 | 19.5 | -62.9 % | - |
| income statement | | | | |
--------------------------------------------------------------------------------
| | Interest-bearing | 2,378.8 | 2,808.4 | -15.3 % | - |
| | securities | | | | |
--------------------------------------------------------------------------------
| | Shares and | 20.6 | 211.5 | -90.3 % | - |
| | participations | | | | |
--------------------------------------------------------------------------------
| Financial assets available for sale | 2,399.3 | 3,019.9 | -20.6 % | - |
--------------------------------------------------------------------------------
| Financial assets held until | 35.9 | 35.9 | 0.0 % | - |
| maturity | | | | |
--------------------------------------------------------------------------------
| Derivataive instruments | 205.7 | 137.0 | 50.1 % | - |
--------------------------------------------------------------------------------
| | Lending to credit | 87.0 | 100.5 | -13.5 % | - |
| | institutes | | | | |
--------------------------------------------------------------------------------
| | Lending to the public | 5,599.1 | 5,431.6 | 3.1 % | - |
| | and public sector | | | | |
| | entities | | | | |
--------------------------------------------------------------------------------
| Loans and other receivables | 5,686.1 | 5,532.2 | 2.8 % | - |
--------------------------------------------------------------------------------
| Investments for unit-linked | - | 148.1 | N/A | - |
| provisions | | | | |
--------------------------------------------------------------------------------
| Investments in associated companies | 2.5 | 2.8 | -9.3 % | - |
--------------------------------------------------------------------------------
| | | | | | 8.4 | 10.3 | -18.3 % | - |
--------------------------------------------------------------------------------
| Tangible assets | | | 4.9 | 6.0 | -17.1 % | - |
--------------------------------------------------------------------------------
| | Accrued expenses and | 66.1 | 78.7 | -16.1 % | - |
| | advance payments | | | | |
--------------------------------------------------------------------------------
| | Other assets | | 65.3 | 5.9 | 1000.4 | - |
| | | | | | % | |
--------------------------------------------------------------------------------
| Total other assets | | 131.4 | 84.7 | 55.2 % | - |
--------------------------------------------------------------------------------
| | Income tax receivables | 3.1 | 2.4 | 29.2 % | - |
--------------------------------------------------------------------------------
| | Deferred tax receivables | 15.2 | 14.8 | 2.5 % | - |
--------------------------------------------------------------------------------
| Tax receivables | | 18.3 | 17.2 | 6.2 % | - |
--------------------------------------------------------------------------------
| Total assets | | | 8,858.7 | 9,519.9 | -6.9 % | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liabilities | | | | | | |
--------------------------------------------------------------------------------
| | Liabilities to credit | 1,734.8 | 1,917.0 | -9.5 % | - |
| | institutes | | | | |
--------------------------------------------------------------------------------
| | Liabilities to the | 3,105.2 | 3,099.0 | 0.2 % | - |
| | public and public sector | | | | |
| | entities | | | | |
--------------------------------------------------------------------------------
| Deposits | | | | 4,839.9 | 5,016.0 | -3.5 % | - |
--------------------------------------------------------------------------------
| Financial liabilities valued | 2.8 | 4.6 | -38.1 % | - |
| through income statement | | | | |
--------------------------------------------------------------------------------
| Derivative instruments | 128.7 | 84.7 | 51.9 % | - |
--------------------------------------------------------------------------------
| | Debt securities issued | 2,323.7 | 2,118.7 | 9.7 % | - |
--------------------------------------------------------------------------------
| | Subordinated liabilities | 233.8 | 246.8 | -5.3 % | - |
--------------------------------------------------------------------------------
| | Other liabilities to | 472.3 | 502.1 | -5.9 % | - |
| | credit institutes | | | | |
--------------------------------------------------------------------------------
| | Other liabilities to the | 358.6 | 262.8 | 36.5 % | - |
| | public and public sector | | | | |
| | entities | | | | |
--------------------------------------------------------------------------------
| Other financial liabilities | 3,388.4 | 3,130.4 | 8.2 % | - |
--------------------------------------------------------------------------------
| Technical provisions for | - | 627.6 | N/A | - |
| interest-linked insurances | | | | |
--------------------------------------------------------------------------------
| Technical provisions for | - | 149.6 | N/A | - |
| unit-linked insurances | | | | |
--------------------------------------------------------------------------------
| | Accrued expenses and | 75.0 | 79.4 | -5.5 % | - |
| | income received in | | | | |
| | advance | | | | |
--------------------------------------------------------------------------------
| | Other liabilities | | 80.7 | 87.3 | -7.5 % | - |
--------------------------------------------------------------------------------
| Total other liabilities | | 155.7 | 166.7 | -6.6 % | - |
--------------------------------------------------------------------------------
| Provisions | | | 0.2 | 0.0 | 621.3 % | - |
--------------------------------------------------------------------------------
| | Income tax liabilities | 3.0 | 2.1 | 40.2 % | - |
--------------------------------------------------------------------------------
| | Deferred tax liabilities | 41.4 | 38.0 | 9.1 % | - |
--------------------------------------------------------------------------------
| Tax liabilities | | | 44.4 | 40.1 | 10.8 % | - |
--------------------------------------------------------------------------------
| Total liabilities | | 8,560.2 | 9,219.7 | -7.2 % | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | | | | | | | |
--------------------------------------------------------------------------------
| Restricted equity | | 152.5 | 127.9 | 19.2 % | - |
--------------------------------------------------------------------------------
| Unrestricted equity | | 121.9 | 147.3 | -17.2 % | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Shareholders' share of | 274.5 | 275.2 | -0.3 % | - |
| | equity | | | | |
--------------------------------------------------------------------------------
| | Minority interest's | 24.0 | 24.9 | -3.7 % | - |
| | share of equity | | | | |
--------------------------------------------------------------------------------
| Equity | | | | 298.5 | 300.2 | -0.6 % | - |
--------------------------------------------------------------------------------
| Total liabilities and equity | 8,858.7 | 9,519.9 | -6.9 % | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated cash flow statement for Bank Group | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | | 1-3 2009 | 1-3 2008 | 1-12 |
| | | | | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| Operating profit *) | | 11.2 | - | -23.1 |
--------------------------------------------------------------------------------
| Adjustment items not included in cash flow | 5.8 | - | 37.6 |
| for the period | | | |
--------------------------------------------------------------------------------
| Paid income taxes | | -1.5 | - | -9.4 |
--------------------------------------------------------------------------------
| Cash flow from operating activities before | 15.5 | - | 5.2 |
| change in operating receivables | | | |
--------------------------------------------------------------------------------
| and liabilities | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Increase (-) or decrease (+) in receivables | -256.8 | - | -590.6 |
| from operating activities | | | |
--------------------------------------------------------------------------------
| Increase (+) or decrease (-) in liabilities | 73.4 | - | 645.1 |
| from operating activities | | | |
--------------------------------------------------------------------------------
| Total cash flow from operating activities | -168.0 | - | 59.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Financial assets held until maturity | - | - | 10.0 |
--------------------------------------------------------------------------------
| Acquisition and divestment of subsidiaries | 34.6 | - | -27.4 |
| and associated companies **) | | | |
--------------------------------------------------------------------------------
| Investments in and disposal of tangible and | -0.7 | - | 37.9 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Real Estate Mortgage Bank's issue to | - | - | 3.8 |
| minority | | | |
--------------------------------------------------------------------------------
| Total cash flow from investing activities | 33.9 | - | 24.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Subordinated liabilities | -11.3 | - | 55.3 |
--------------------------------------------------------------------------------
| Total cash flow from financing activities | -11.3 | - | 55.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -145.4 | - | 139.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at the beginning | 512.3 | - | 20.3 |
| of the year | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents transferred in | - | - | 353.0 |
| connection with transfer of business | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end of the | 367.0 | - | 512.3 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents in the cash flow statement | | |
| consist of the following items: | | |
--------------------------------------------------------------------------------
| Cash in hand | | | 9.4 | - | 10.0 |
--------------------------------------------------------------------------------
| Insurance operation's cash and bank | - | - | 3.7 |
--------------------------------------------------------------------------------
| Bank of Finland current account | 349.5 | - | 492.6 |
--------------------------------------------------------------------------------
| Repayable on demand claims on credit | 8.1 | - | 6.0 |
| institutes | | | |
--------------------------------------------------------------------------------
| Total | | | | 367.0 | - | 512.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Adjustment items not included in cash flow | | | |
| for the period consist of: | | | |
--------------------------------------------------------------------------------
| Impairment of financial receivables | 0.4 | - | 39.2 |
--------------------------------------------------------------------------------
| Write-downs on credits and other | 1.6 | - | 0.5 |
| commitments | | | |
--------------------------------------------------------------------------------
| Change in fair value | 1.9 | - | 2.5 |
--------------------------------------------------------------------------------
| Depreciation and impairment of intangible | 1.3 | - | 3.3 |
| and tangible assets | | | |
--------------------------------------------------------------------------------
| Share of profit from associated companies | 0.2 | - | -0.1 |
--------------------------------------------------------------------------------
| Sales gains and losses from intangible and | 0.0 | - | -7.3 |
| tangible assets | | | |
--------------------------------------------------------------------------------
| Other adjustments | | 0.4 | - | -0.4 |
--------------------------------------------------------------------------------
| Total | | | | 5.8 | - | 37.6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinuing operations' share of cash | | | |
| flow in the Bank Group, net: | | | |
--------------------------------------------------------------------------------
| Cash flow from operating activities | -2.5 | - | 8.1 |
--------------------------------------------------------------------------------
| Cash flow from investing activities | 0.0 | - | -1.6 |
--------------------------------------------------------------------------------
| Cash flow from financing activities | - | - | - |
--------------------------------------------------------------------------------
| Total | | | | -2.6 | - | 6.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Consist of both continuing and | | | |
| discontinuing operations | | | |
--------------------------------------------------------------------------------
| **) The figures for 2008 include additional purchase | | |
| price for the acquisition of Aktia Life Insurance | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Consolidated statement of changes in equity for Bank Group
--------------------------------------------------------------------------------
| | | | Fun | Un- | | Share | Minori | |
| | | | d | | | - | ty | |
--------------------------------------------------------------------------------
| | | Other | at | restri | | holde | intere | |
| | | | | cted | | r' | st's | |
--------------------------------------------------------------------------------
| | Shar | restr | fai | equity | Retain | share | share | Total |
| | e | icted | r | | ed | of | | |
--------------------------------------------------------------------------------
| (EUR | Capi | equit | val | reserv | earnin | equit | of | equit |
| million) | tal | y | ue | e | gs | y | equity | y |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity at 1 | 163. | 0.0 | -35 | 44.6 | 102.8 | 275.2 | 24.9 | 300.2 |
| January 2009 | 0 | | .1 | | | | | |
--------------------------------------------------------------------------------
| Share issue | 0.0 | | | 0.0 | | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Dividends to | | | | | | 0.0 | | 0.0 |
| shareholders | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | -7. | | 6.8 | -0.8 | -0.4 | -1.2 |
| comprehensiv | | | 6 | | | | | |
| e income for | | | | | | | | |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Other change | | | 32. | | -32.1 | 0.0 | -0.5 | -0.5 |
| in equity | | | 1 | | | | | |
--------------------------------------------------------------------------------
| Equity at 31 | 163. | 0.0 | -10 | 44.6 | 77.5 | 274.5 | 24.0 | 298.5 |
| March 2009 | 0 | | .6 | | | | | |
--------------------------------------------------------------------------------
Key figures at the end of each reporting period
--------------------------------------------------------------------------------
| | 1-3 2009 | 1-12 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share. continuing operations. EUR | 2.8 | 6.2 |
| million | | |
--------------------------------------------------------------------------------
| Earnings per share. discontinued operations. EUR | -0.6 | -11.6 |
| million | | |
--------------------------------------------------------------------------------
| Earnings per share. total. EUR million | 2.2 | -5.5 |
--------------------------------------------------------------------------------
| Equity per share. EUR million | 91.5 | 91.7 |
--------------------------------------------------------------------------------
| Return on equity (ROE). % | 8.6 | -5.2 |
--------------------------------------------------------------------------------
| Earnings per share excluding negative goodwill recorded as | |
| income and | |
--------------------------------------------------------------------------------
| including the fund at fair value. EUR million | -1.4 | -15.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | 3 | 3 |
--------------------------------------------------------------------------------
| Number of shares at end of period | 3 | 3 |
--------------------------------------------------------------------------------
| Personnel (FTEs). average number | 848 | 867 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Banking Business | | |
--------------------------------------------------------------------------------
| Cost-to-income ratio | 0.68 | 0.56 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Borrowing from the public. EUR million | 3,105 | 3,099 |
--------------------------------------------------------------------------------
| Lending to the public. EUR million | 5,599 | 5,432 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital adequacy ratio. % | 14.2 | 13.7 |
--------------------------------------------------------------------------------
| Tier 1 capital ratio. % | 9.0 | 9.3 |
--------------------------------------------------------------------------------
| Risk-weighted commitments. EUR million | 3,335 | 3,313 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Asset Management | | |
--------------------------------------------------------------------------------
| Mutual fund capital. EUR million | 2,415 | 1,512 |
--------------------------------------------------------------------------------
| Assets under management. EUR million | 4,515 | 4,538 |
--------------------------------------------------------------------------------
Basis of calculation for key figures
Cost-to-income ratio - banking business
Total operating expenses
Total operating income
Earnings per share. EUR
Profit for the year after taxes attributable to the shareholders of Aktia Bank
plc
Average number of shares over the period (adjusted for share issue)
Equity per share. 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 ' x 100
Average equity
Capital adequacy ratio, %
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 Supervisory Authority.
Tier 1 Capital ratio, %
Tier 1 capital ' x 100
Risk-weighted commitments
Risk-weighted commitments
Assets in the balance sheet plus off-balance sheet items including derivatives
valued and risk-weighted in accordance with the standard method set out in
regulation 4.3 issued by the Finnish Financial Supervisory Authority. The
capital requirements for operative risks have been calculated and risk-weighted
in accordance with regulation 4.3i issued by the Finnish Financial Supervisory
Authority.
Note 1 Basis for preparing the interim report and important accounting
principles
Basis for preparing the interim report
The Bank Group's financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) as approved by the EU.
The interim report for the period 1 January - 31 March 2009 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 2008.
Aktia Bank plc's interim report can be downloaded from Aktia's website at
www.aktia.com under the heading Financial information/interim reports.
The interim report for the period 1 January - 31 March 2009 was approved by the
Board of Directors on 12 May 2009.
Important accounting principles
In preparing this interim report the Group has. for the most part. followed the
accounting principles applicable to the annual report of 31 December 2008.
In February 2009. Aktia Life Assurance was sold to Aktia plc. The life assurance
business is a separate segment in the banking group. With effect from 2009.
Aktia Life Assurance is thus to be reported as a discontinued operation in
accordance with IFRS 5. The comparative figures have been corrected to reflect
the reporting for 2009.
The subsidiaries Aktia Card & Finance Ab. Aktia Corporate Finance AB and Aktia
Asset Management Oy Ab have certain redemption clauses and. in accordance with
IAS 32.25(a) have been moved from the minority interest to liabilities as at 31
December 2008. During 2009. the change in this liability was reported under
staff costs.
New accounting standards effective from 2009
IAS 1 Presentation of Financial Statements (revised)
This standard has been revised in order to provide better information for
analysing and comparing companies. With effect from 1 January 2009, the group is
to report an income statement and a statement of comprehensive income. The
change in the group's equity contains transactions with the owners.
IFRIC 13 Customer Loyalty Programmes
This interpretation deals with reporting on customer loyalty programmes. The
group has a bonus scheme. Aktia Kortbonus. This bonus scheme has already been
dealt with in the accounts in accordance with IFRIC 13. As a result, the
introduction of this standard does not affect the group's profit or financial
position. The bonus liability for the comparison year 2008 has been moved from
other liabilities to the accruals.
--------------------------------------------------------------------------------
| Note 2 Segment report for Bank Group | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Banking | | Asset |
| | | Business | | Management |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3 2009 | 1-3 2008 | 1-3 2009 | 1-3 2008 |
--------------------------------------------------------------------------------
| Net interest income | 30.8 | - | 0.4 | - |
--------------------------------------------------------------------------------
| Dividends | 0.0 | - | 0.0 | - |
--------------------------------------------------------------------------------
| Net commission income | 5.3 | - | 2.7 | - |
--------------------------------------------------------------------------------
| Net income from financial | -0.2 | - | -0.2 | - |
| transactions | | | | |
--------------------------------------------------------------------------------
| Net income from investment | 0.0 | - | - | - |
| properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | 1.5 | - | 0.0 | - |
--------------------------------------------------------------------------------
| Total operating income | 37.5 | - | 2.9 | - |
--------------------------------------------------------------------------------
| Staff costs | -8.0 | - | -1.9 | - |
--------------------------------------------------------------------------------
| Other administrative | -13.1 | - | -1.0 | - |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation | -0.6 | - | -0.2 | - |
--------------------------------------------------------------------------------
| Other operating expenses | -2.3 | - | -0.2 | - |
--------------------------------------------------------------------------------
| Total operating expenses | -23.9 | - | -3.3 | - |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | -1.6 | - | - | - |
--------------------------------------------------------------------------------
| Share of profit from | - | - | - | - |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | 12.0 | - | -0.4 | - |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit for | - | - | - | - |
| discontinued operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | 12.0 | - | -0.4 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Life | | Miscellaneou |
| | | Insurance | | s |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3 2009 | 1-3 2008 | 1-3 2009 | 1-3 2008 |
--------------------------------------------------------------------------------
| Net interest income | - | - | 1.1 | - |
--------------------------------------------------------------------------------
| Dividends | - | - | 1.3 | - |
--------------------------------------------------------------------------------
| Net commission income | - | - | 0.1 | - |
--------------------------------------------------------------------------------
| Net income from financial | - | - | - | - |
| transactions | | | | |
--------------------------------------------------------------------------------
| Net income from investment | - | - | 0.0 | - |
| properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | - | - | 0.4 | - |
--------------------------------------------------------------------------------
| Total operating income | - | - | 2.9 | - |
--------------------------------------------------------------------------------
| Staff costs | - | - | -1.9 | - |
--------------------------------------------------------------------------------
| Other administrative | - | - | 2.3 | - |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation | - | - | -0.4 | - |
--------------------------------------------------------------------------------
| Other operating expenses | - | - | -1.5 | - |
--------------------------------------------------------------------------------
| Total operating expenses | - | - | -1.5 | - |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | - | - | - | - |
--------------------------------------------------------------------------------
| Share of profit from | - | - | - | - |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | - | - | 1.4 | - |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit for | 0.1 | - | - | - |
| discontinued operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | 0.1 | - | 1.4 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income statement | | Eliminatio | | Total Group |
| | | ns | | |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 1-3 2009 | 1-3 2008 | 1-3 2009 | 1-3 2008 |
--------------------------------------------------------------------------------
| Net interest income | 0.0 | - | 32.4 | - |
--------------------------------------------------------------------------------
| Dividends | -1.3 | - | 0.1 | - |
--------------------------------------------------------------------------------
| Net commission income | -0.1 | - | 8.0 | - |
--------------------------------------------------------------------------------
| Net income from financial | - | - | -0.4 | - |
| transactions | | | | |
--------------------------------------------------------------------------------
| Net income from investment | 0.0 | - | 0.0 | - |
| properties | | | | |
--------------------------------------------------------------------------------
| Other operating income | -1.3 | - | 0.7 | - |
--------------------------------------------------------------------------------
| Total operating income | -2.6 | - | 40.7 | - |
--------------------------------------------------------------------------------
| Staff costs | 0.0 | - | -11.8 | - |
--------------------------------------------------------------------------------
| Other administrative | 1.0 | - | -10.7 | - |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation | - | - | -1.2 | - |
--------------------------------------------------------------------------------
| Other operating expenses | 0.0 | - | -4.0 | - |
--------------------------------------------------------------------------------
| Total operating expenses | 1.1 | - | -27.7 | - |
--------------------------------------------------------------------------------
| Write-downs on credits and | | | | |
| other | | | | |
--------------------------------------------------------------------------------
| commitments | - | - | -1.6 | - |
--------------------------------------------------------------------------------
| Share of profit from | 0.1 | - | 0.1 | - |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Operating profit from | -1.5 | - | 11.5 | - |
| continuing operations | | | | |
--------------------------------------------------------------------------------
| Operating profit for | -0.4 | - | -0.3 | - |
| discontinued operations | | | | |
--------------------------------------------------------------------------------
| Operating profit | -1.9 | - | 11.2 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Banking | | Asset |
| | | Business | | Management |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.200 | 31.3.2008 | 31.3.200 | 31.3.2008 |
| | 9 | | 9 | |
--------------------------------------------------------------------------------
| Cash and balances with | 358.8 | - | 0.1 | - |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets valued | | | | |
| through | | | | |
--------------------------------------------------------------------------------
| income statement | 7.2 | - | - | - |
--------------------------------------------------------------------------------
| Financial assets available | 2,379.5 | - | 5.3 | - |
| for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | 5,669.3 | - | 20.0 | - |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | - | - | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | 534.1 | - | 8.4 | - |
--------------------------------------------------------------------------------
| Total assets | 8,948.9 | - | 33.8 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | 4,691.1 | - | 151.9 | - |
--------------------------------------------------------------------------------
| Debt securities issued | 2,327.2 | - | - | - |
--------------------------------------------------------------------------------
| Provisions for life | - | - | - | - |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | 1,275.3 | - | 7.2 | - |
--------------------------------------------------------------------------------
| Total liabilities | 8,293.5 | - | 159.1 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Life | | Miscellaneou |
| | | Insurance | | s |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.200 | 31.3.2008 | 31.3.200 | 31.3.2008 |
| | 9 | | 9 | |
--------------------------------------------------------------------------------
| Cash and balances with | - | - | - | - |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets valued | | | | |
| through | | | | |
--------------------------------------------------------------------------------
| income statement | - | - | - | - |
--------------------------------------------------------------------------------
| Financial assets available | - | - | 18.0 | - |
| for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | - | - | - | - |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | - | - | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | - | - | -103.2 | - |
--------------------------------------------------------------------------------
| Total assets | - | - | -85.2 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | - | - | - | - |
--------------------------------------------------------------------------------
| Debt securities issued | - | - | - | - |
--------------------------------------------------------------------------------
| Technical provision for | - | - | - | - |
| life insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | - | - | 213.5 | - |
--------------------------------------------------------------------------------
| Total liabilities | - | - | 213.5 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance sheet | | Eliminatio | | Total Group |
| | | ns | | |
| | | | | |
--------------------------------------------------------------------------------
| (EUR million) | 31.3.200 | 31.3.2008 | 31.3.200 | 31.3.2008 |
| | 9 | | 9 | |
--------------------------------------------------------------------------------
| Cash and balances with | - | - | 358.9 | - |
| central banks | | | | |
--------------------------------------------------------------------------------
| Financial assets valued | | | | |
| through | | | | |
--------------------------------------------------------------------------------
| income statement | - | - | 7.2 | - |
--------------------------------------------------------------------------------
| Financial assets available | -3.5 | - | 2 399.3 | - |
| for sale | | | | |
--------------------------------------------------------------------------------
| Loans and other | -3.2 | - | 5 686.1 | - |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investments for | - | - | - | - |
| unit-linked provisions | | | | |
--------------------------------------------------------------------------------
| Other assets | -32.1 | - | 407.2 | - |
--------------------------------------------------------------------------------
| Total assets | -38.8 | - | 8 858.7 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deposits | -3.0 | - | 4 839.9 | - |
--------------------------------------------------------------------------------
| Debt securities issued | -3.5 | - | 2 323.7 | - |
--------------------------------------------------------------------------------
| Provisions for life | - | - | - | - |
| insurance business | | | | |
--------------------------------------------------------------------------------
| Other liabilities | -99.4 | - | 1 396.6 | - |
--------------------------------------------------------------------------------
| Total liabilities | -105.9 | - | 8 560.2 | - |
--------------------------------------------------------------------------------
Note 3 Derivatives and off-balance sheet commitments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments at 31 March 2009 (EUR million) | | |
--------------------------------------------------------------------------------
| | | | | Total nominal | Fair | Fair |
| | | | | | value, | value, |
--------------------------------------------------------------------------------
| Hedging derivative | amount | Assets | Liabilit |
| instruments | | | ies |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Fair value hedging | | | |
--------------------------------------------------------------------------------
| | Interest | 1,340.0 | 58.5 | - |
| | rate-related | | | |
--------------------------------------------------------------------------------
| Total | | | 1,340.0 | 58.5 | 0.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow hedging | | | |
--------------------------------------------------------------------------------
| | Interest | 1,232.0 | 37.6 | 19.9 |
| | rate-related | | | |
--------------------------------------------------------------------------------
| Total | | | 1,232.0 | 37.6 | 19.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Derivative instruments valued through income statement | | |
| for other reasons | | |
--------------------------------------------------------------------------------
| | Interest | 6,993.0 | 104.9 | 103.6 |
| | rate-related *) | | | |
--------------------------------------------------------------------------------
| | Currency-related | 171.2 | 2.3 | 2.8 |
--------------------------------------------------------------------------------
| | Equity-related **) | 114.0 | 1.8 | 1.8 |
--------------------------------------------------------------------------------
| | Other derivative | 8.6 | 0.6 | 0.6 |
| | instruments **) | | | |
--------------------------------------------------------------------------------
| Total | | | 7,286.8 | 109.6 | 108.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total derivative | | | |
| instruments | | | |
--------------------------------------------------------------------------------
| | Interest | 9,565.0 | 201.0 | 123.5 |
| | rate-related | | | |
--------------------------------------------------------------------------------
| | Currency-related | 171.2 | 2.3 | 2.8 |
--------------------------------------------------------------------------------
| | Equity-related | 114.0 | 1.8 | 1.8 |
--------------------------------------------------------------------------------
| | Other derivative | 8.6 | 0.6 | 0.6 |
| | instruments | | | |
--------------------------------------------------------------------------------
| Total | | | 9,858.8 | 205.7 | 128.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Interest rate-related derivatives include interest rate | |
| hedging provided for local banks which after | |
--------------------------------------------------------------------------------
| back-to-back hedging with third parties amounted to | | |
| EUR 6 674.7 million. | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| **) All equity-related and other derivative instruments relate to | |
| the hedging of structured debt products. | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Off-balance sheet commitments | 31.3.2009 | 31.12.200 | 31.3.2008 |
| | | 8 | |
--------------------------------------------------------------------------------
| (EUR million) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitments provided to a third party on behalf of | | |
| customers | | |
--------------------------------------------------------------------------------
| Guarantees | | 53.6 | 54.8 | - |
--------------------------------------------------------------------------------
| Other commitments provided to a third | 6.9 | 7.5 | - |
| party | | | |
--------------------------------------------------------------------------------
| Irrevocable commitments provided on | | | |
| behalf of customers | | | |
--------------------------------------------------------------------------------
| Unused credit arrangements | 519.1 | 459.1 | - |
--------------------------------------------------------------------------------
| Other irrevocable commitments *) | - | 12.1 | - |
--------------------------------------------------------------------------------
| Off-balance sheet commitments | 579.5 | 533.5 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Credit equivalents for derivatives are not included in | |
| off-balance sheet commitments | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Note 4 Risk exposure for Bank Group | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consolidated capital adequacy for | | | | |
| Bank Group | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Summary (EUR million) | | | 31.3.200 | 31.12.20 | 31.3.2 |
| | | | 9 | 08 | 008 |
--------------------------------------------------------------------------------
| Tier 1 capital | | | | | 300.5 | 309.0 | - |
--------------------------------------------------------------------------------
| Tier 2 capital | | | | | 173.6 | 143.4 | - |
--------------------------------------------------------------------------------
| Capital base | | | | | 474.1 | 452.4 | - |
--------------------------------------------------------------------------------
| Risk-weighted amount for credit and | | 3,062.8 | 3,040.5 | - |
| counterpart risks | | | | |
--------------------------------------------------------------------------------
| Risk-weighted amount for market | | | - | - | - |
| risks | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted amount for | | | 272.7 | 272.7 | - |
| operative risks | | | | | |
--------------------------------------------------------------------------------
| Risk-weighted commitments | | | 3,335.5 | 3,313.2 | - |
--------------------------------------------------------------------------------
| Capital adequacy ratio. % | | | | 14.2 | 13.7 | - |
--------------------------------------------------------------------------------
| Tier 1 Capital ratio. % | | | | 9.0 | 9.3 | - |
--------------------------------------------------------------------------------
| Minimum capital requirement | | | 266.8 | 265.1 | - |
--------------------------------------------------------------------------------
| Capital buffer (difference between capital | 207.3 | 187.3 | - |
| base and minimi requirement) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) No capital requirement due to minor trading book and when total | |
| of net currency positions are less than 2% of capital base | |
--------------------------------------------------------------------------------
| 2) Capital requirement of 15% is calculated according to definition | |
| of average gross income during the last three years (145.4 EUR | |
| million) x risk-weighted factor of 12.5 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital base (EUR million) | 31.3.2009 | 31.12.2008 | 31.3.2008 |
--------------------------------------------------------------------------------
| Share capital | | | 163.0 | 163.0 | - |
--------------------------------------------------------------------------------
| Funds | | | 44.6 | 44.6 | - |
--------------------------------------------------------------------------------
| Minority share | | | 24.0 | 24.9 | - |
--------------------------------------------------------------------------------
| Retained earnings | | 70.7 | 93.5 | - |
--------------------------------------------------------------------------------
| Profit for the period | | 6.7 | 9.2 | - |
--------------------------------------------------------------------------------
| Provision for dividends to | 0.0 | -0.6 | - |
| shareholders | | | |
--------------------------------------------------------------------------------
| Total | | | 309.0 | 334.7 | - |
--------------------------------------------------------------------------------
| Intangible assets | | -8.4 | -8.6 | - |
--------------------------------------------------------------------------------
| Shares in insurance companies | 0.0 | -17.1 | - |
--------------------------------------------------------------------------------
| Tier 1 capital | | | 300.5 | 309.0 | - |
--------------------------------------------------------------------------------
| Fund at fair value | | -21.6 | -47.5 | - |
--------------------------------------------------------------------------------
| Other Tier 2 capital | | 45.0 | 45.0 | - |
--------------------------------------------------------------------------------
| Risk debebtures | | 150.3 | 163.0 | - |
--------------------------------------------------------------------------------
| Shares in insurance companies | 0.0 | -17.1 | - |
--------------------------------------------------------------------------------
| Tier 2 capital | | | 173.6 | 143.4 | - |
--------------------------------------------------------------------------------
| Total capital base | | 474.1 | 452.4 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Risk-weighted commitments. credit- and | | | |
| counter-party risks | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| (EUR million) | | Off-bal | | | | |
| | | ance | | | | |
--------------------------------------------------------------------------------
| | | | sheet | | | Risk-weight | |
| | | | | | | ed | |
| | | | | | | commitments | |
| | | | | | | . Basel 2 | |
--------------------------------------------------------------------------------
| Risk-wei | | Balanc | commitm | Total | 31.3.2 | 31.12.2008 | 31.3.200 |
| ght | | e | ents | | 009 | | 8 |
| | | assets | | | | | |
--------------------------------------------------------------------------------
| 0% | | 945.3 | 25.9 | 971.2 | - | - | - |
--------------------------------------------------------------------------------
| 10% | | 896.9 | - | 896.9 | 89.7 | 80.3 | - |
--------------------------------------------------------------------------------
| 20% | | 1,398. | 264.2 | 1,663.1 | 290.8 | 335.3 | - |
| | | 9 | | | | | |
--------------------------------------------------------------------------------
| 35% | | 4,160. | 112.4 | 4,272.6 | 1,470. | 1,421.4 | - |
| | | 1 | | | 1 | | |
--------------------------------------------------------------------------------
| 50% | | 6.0 | 0.2 | 6.1 | 3.0 | 2.5 | - |
--------------------------------------------------------------------------------
| 75% | | 555.5 | 66.2 | 621.7 | 439.1 | 426.7 | - |
--------------------------------------------------------------------------------
| 100% | | 668.3 | 109.4 | 777.7 | 720.9 | 720.8 | - |
--------------------------------------------------------------------------------
| 150% | | 15.4 | 1.2 | 16.6 | 24.0 | 11.3 | - |
--------------------------------------------------------------------------------
| Total | | 8,646. | 579.5 | 9 225.8 | 3,037. | 2,998.4 | - |
| | | 3 | | | 6 | | |
--------------------------------------------------------------------------------
| Derivati | | - | 261.3 | 261.3 | 25.2 | 42.1 | - |
| ves *) | | | | | | | |
--------------------------------------------------------------------------------
| Total | | 8,646. | 840.8 | 9,487.1 | 3,062. | 3,040.5 | - |
| | | 3 | | | 8 | | |
--------------------------------------------------------------------------------
| *) derivative agreements credit | | | | |
| conversion factor | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Risk-weighted amount for | | | | |
| operative risks | | | | |
--------------------------------------------------------------------------------
| | | | | | | Risk-weighte | |
| | | | | | | d amount. | |
| | | | | | | Basel 2 | |
--------------------------------------------------------------------------------
| Year | | 2006 | 2007 | 2008 | 31.3.20 | 31.12.2008 | 31.3.20 |
| | | | | | 09 | | 08 |
--------------------------------------------------------------------------------
| Gross income | | 140. | 145. | 150.5 | | | |
| | | 6 | 2 | | | | |
--------------------------------------------------------------------------------
| - average 3 years | | | 145.4 | | | |
--------------------------------------------------------------------------------
| Indicator 15 % | | | | 21.8 | | | |
--------------------------------------------------------------------------------
| Capital requirement for | | 21.8 | 272.7 | 272.7 | - |
| operative risk | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Helsinki 12 May 2009
Aktia Bank plc
Board of Directors
Review Report on the Interim Report of Aktia BANK P.L.C. as of 31.3.2009
To the Board of Directors of Aktia Bank p.l.c.
Introduction
We have reviewed the balance sheet as of 31.3.2009, 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 2009 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, 12 May 2009
PricewaterhouseCoopers Oy
Authorised Public Accountants
Jan Holmberg
Authorised Public Accountant
AKTIA BANK PLC
For further information, please contact:
Jussi Laitinen, CEO, Tel. +358 10 247 6210
Stefan Björkman, CFO, Tel. +358 10 247 6595
From:
Malin Pettersson
Head of Communications
Tel. +358 10 247 6369
Distribution:
Nasdaq OMX Helsinki Ltd
www.aktia.com