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Aktia Plc: Accounts Announcement 2011

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Aktia Plc Financial statement release 15 February 2012 at 2 p.m.

 

CEO Jussi Laitinen:
“Aktia’s result was satisfactory and the capital adequacy improved despite the fact that the financial crisis in Europe led to both lower growth and lower interest rates. Through cooperation with Folksam we will be able to offer our customers an improved and more competitive range of non-life insurance products. And our new onlinebank will improve our customer services further. The continuing low interest rate level  makes improvement of profitability more challenging. Thus, cost cutting has a high priority during 2012.

January-December 2011: Operating Profit EUR 47.0 (77.9) million
 

  • Group operating profit fell to EUR 47.0 (77.9) million, and profit for the period to EUR 36.5 (58.0) million.
  • Earnings per share stood at EUR 0.53 (0.83).
  • The Board of Directors proposes an unchanged dividend of EUR 0.30 (0.30) per share, which corresponds to a pay-out ratio of 57%.
  • The Bank’s customer base increased by 10,300 new private customers.
  • Higher margins improved Net Interest Income (NII) from the bank’s deposits and lending by 15% to EUR 63.0 (54.8) million but the total NII weakened due to the maturing interest rate hedges to EUR 128.8 (149.3) million.
  • Net income from life insurance increased by 38% to EUR 22.7 (16.5) million, and net commission income by 4% to EUR 59.5 (57.0) million.
  • The capital adequacy ratio increased to 16.2 (15.9)% and the Tier 1 capital ratio to 10.6 (10.1)%.
  • Write-downs on credits and outstanding premiums decreased by 20% to EUR 11.3 (14.1) million.
  • Aktia Bank plc’s credit rating of A1/C/P-1 was placed under review for possible downgrading by Moody’s Investors Service.
  • In 2012, Aktia is selling 51% of Aktia Non-Life Insurance to Folksam and 15% to Veritas Pension Insurance.
  • OUTLOOK: The operating result for 2012 is expected to be lower than in 2011 (outlook in detail on p.16).

 

October-December 2011: Operating Profit EUR 6.6 (13.5) million
 

  • Group operating profit fell to EUR 6.6 (13.5) million, and profit for the period to EUR 7.9 (10.1) million.
  • Earnings per share stood at EUR 0.12 (0.14).
  • Operating income was EUR 55.3 (62.0) million and operating expenses EUR 44.3 (44.1) million.
  • Write-downs on credits and outstanding premiums stood at EUR 4.3 (4.3) million.

 

KEY FIGURES
(EUR million)		 2011 2010 ∆ %      10-12/2011 10-12/2010 ∆ %      7-9/2011 4-6/2011 1-3/2011     
Net interest income 128.8 149.3 -14% 28.6 35.9 -20% 31.9 33.6 34.7
Total operating income 224.8 249.4 -10% 55.3 62.0 -11% 49.3 57.7 62.6
Total operating expenses -166.5 -159.0 5% -44.3 -44.1 1% -38.6 -43.4 -40.1
Operating profit before write-downs on credits 58.3 92.0 -37% 10.9 17.8 -39% 10.7 14.2 22.4
Write-downs on credits and outstanding premium receivables -11.3 -14.1 -20% -4.3 -4.3 1% -1.2 -2.1 -3.6
Operating profit 47.0 77.9 -40% 6.6 13.5 -51% 9.5 12.1 18.8
Cost-to-income ratio 0.73 0.59 24 % 0.78 0.68 15% 0.79 0.74 0.63
Earnings per share (EPS), EUR 0.53 0.83 -36% 0.12 0.14 -16% 0.09 0.13 0.20
Equity per share (NAV)1, EUR 7.01 6.81 3% 7.01 6.81 3% 6.90 6.43 6.14
Return on equity (ROE), % 7.2 12.0 -41% 6.1 7.9 -23% 4.4 7.6 11.9
Capital adequacy ratio1, % 16.2 15.9 2% 16.2 15.9 2% 16.6 16.6 16.0
Tier 1 capital ratio1, % 10.6 10.1 5% 10.6 10.1 5% 10.8 10.8 10.3
Write-downs on credits/total credit stock, % 0.15 0.20 -25% 0.06 0.06 0% 0.02 0.03 0.05

1) At the end of the period 

”Accounts Announcement 2011” is a translation of the original report in Swedish (”Bokslutskommuniké 1.1-31.12.2011”). In case of discrepancies, the Swedish version prevails.

 

Press and analysts conference 15 February 2012 at 3 p.m.

Aktia's CEO Jussi Laitinen and Deputy Managing Director, CFO Stefan Björkman present the report and answer questions. The presentation will be available at www.aktia.fi. 

The conference will be held at Aktia's Head Office, Mannerheimintie 14 A, 7th floor.

 

AKTIA PLC

For more information, please contact:
Managing Director Jussi Laitinen, tel. +358 10 247 6250
Deputy Managing Director, CFO Stefan Björkman, tel. +358 10 247 6595

From:
IR Manager Anna Gabrán, tel. +358 10 247 6501, +358 40 7081807
 

Distribution:
Nasdaq OMX Helsinki,
mass media,
www.aktia.fi

Aktia Group provides a broad range of products within banking, insurance and real estate agency.­ Aktia operates  in Finland's coastal areas and inland growth areas. Aktia has some 400,000 customers who are served by nearly 1,400 employees at 70 branch offices and via Internet and telephone services. Aktia's shares are listed on the list of NASDAQ OMX Helsinki Ltd. For more information about Aktia, see www.aktia.fi.

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