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Aktia plc: Interim report 1 January-30 June 2013

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Aktia plc: Interim report 1 January-30 June 2013 (MERGED WITH AKTIA BANK PLC 1 JULY 2013)

 

INCREASED SALES IN TOUGH MARKET CONDITIONS 

CEO JUSSI LAITINEN

”Aktia’s sales improved and the net interest income was stable despite the difficult market situation and continuing low interest rates. However, the new bank tax and our efforts to build a new core banking system increased costs. Aktia’s capital adequacy was strengthened during the second quarter, clearly exceeding the new Basel III requirements. Aktia’s Action plan 2015 has proceeded as planned; modernisation of the core banking system commenced, the first issue of covered bonds was made in June, the card operations were renewed, and the merger between Aktia plc and Aktia Bank pls was carried out on 1 July 2013. As an element in our drive for profitable growth, Aktia is negotiating a merger with the savings bank Saaristosäästöpankki Oy. This  would strengthen Aktia’s position in the Turunmaa area of Finland.”

APRIL-JUNE 2013: OPERATING PROFIT EUR 15.1 (17.9) MILLION

  • The Group’s operating profit from continuing operations amounted to EUR 15.1 (17.9) million.
  • Profit for the period from continuing operations amounted to EUR 11.0 (13.8) million.
  • Earnings per share stood at EUR 0.16 (0.21).
  • Net interest income totalled EUR 28.3 (29.7) million.
  • Write-downs on credits and other commitments decreased by 56% to EUR 0.4 (1.0) million.

JANUARY-JUNE 2013: OPERATING PROFIT EUR 34.6 (32.2) MILLION

  • The Group’s operating profit from continuing operations amounted to EUR 34.6 (32.2) million.
  • Profit for the period from continuing operations amounted to EUR 25.8 (24.0) million.
  • Earnings per share stood at EUR 0.38 (0.50), of which earnings per share from continuing operations were EUR 0.38 (0.35).
  • The capital adequacy ratio stood at 20.3% (31 December 2012: 20.2%) and the Tier 1 capital ratio at 12.1 (11.8)%.
  • Equity per share stood at EUR 8.34 (31 December 2012: 8.91).
  • Net interest income totalled EUR 58.4 (59.3) million.
  • Write-downs on credits and other commitments decreased by 46% to EUR 1.5 (2.8) million.
  • OUTLOOK (unchanged): Despite the probably persistent low interest rate level, and major one-off costs from implementing the Plan of Action for 2015, the Group’s operating profit from continuing operations for 2013 is expected to reach approximately the 2012 level.
KEY FIGURES
(EUR million)		 4-6/ 2013 4-6/ 2012 ∆ %      1-6/ 2013 1-6/ 2012 ∆ %      1-3/ 2013 2012 10-12/ 2012
Net interest income 28.3 29.7 -4% 58.4 59.3 -1% 30.1 117.3 29.3
Total operating income 55.7 55.8 0% 113.2 109.0 4% 57.5 217.9 58.4
Total operating expenses -39.2 -37.5 5% -76.8 -74.2 3% -37.5 -154.2 -46.0
Operating profit before write downs on credits, continuing operations 15.5 18.8 -18% 36.1 35.0 3% 20.6 62.4 12.1
Write-downs on credits and other commitments -0.4 -1.0 -56% -1.5 -2.8 -46% -1.1 -6.4 -1.7
Operating profit from continuing operations 15.1 17.9 -15% 34.6 32.2 8% 19.5 56.0 10.4
Cost-to-income ratio 0.70 0.69 1% 0.68 0.69 -1% 0.67 0.74 0.89
Earnings per share (EPS), EUR 0.16 0.21 -23% 0.38 0.50 -23% 0.22 0.74 0.09
Equity per share (NAV)1, EUR 8.34 7.88 6% 8.34 7.88 6% 9.02 8.91 8.91
Return on equity (ROE), % 6.9 9.7 -29% 8.1 12.2 -34% 8.9 8.5 3.9
Capital adequacy ratio1, % 20.3 18.9 8% 20.3 18.9 8% 20.0 20.2 20.2
Tier 1 capital ratio1, % 12.1 11.7 3% 12.1 11.7 3% 11.7 11.8 11.8
Write-downs on credits / total credit stock, % 0.01 0.01 0% 0.02 0.04 -50% 0.02 0.09 0.02
1) At the end of the period              
The Interim Report January-June 2013 is a translation of the original Swedish version ”Delårsrapport 1.1-30.6.2013”. In case of discrepancies, the Swedish version shall prevail.                       

 

         CEO Jussi Laitinen, tel. +358 10 247 6250
         CFO Fredrik Westerholm, tel. +358 10 247 6505
         IR Anna Gabrán, tel. +358 10 247 6501, +358 40 7081807

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