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Aktia Plc Accounts Announcement 17 February 2011 at 8:00 am

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A STRONG 2010: OPERATING PROFIT EUR 77.9 (47.0) MILLION

  • Group operating profit for 2010 improved 66% to EUR 77.9 (47.0) million and the profit for the period to EUR 58.0 (34.0) million.
  • Earnings per share was up 62% to EUR 0.83 (0.52).
  • Aktia’s Board of Directors proposes a raised dividend to EUR 0.30 (0.24) per share.
  • Net interest income remained strong at EUR 149.3 (152.2) million.
  • Net commission income advanced 23% to EUR 57.0 (46.3) million.
  • Net income from life insurance was EUR 16.5 (14.0) million.
  • Net income from non-life insurance improved 49% to EUR 22.6 (15.2) million.
  • Write-downs on credits and outstanding premium receivables were clearly lower than last year and stood at EUR -14.1 (-31.7) million.
  • Aktia Bank plc’s credit rating remained unchanged A1/C/P-1 (Moody’s Investors Service) on 19 November 2010.
  • The full-year profit for 2011 will probably be lower than in 2010.

OCTOBER-DECEMBER 2010: OPERATING PROFIT EUR 13.5 (9.8) MILLION

  • Despite increasing write-downs by group and the insurance companies’ provisions, group operating profit for October-December 2010 improved 37% to EUR 13.5 (9.8) million and the profit for the period to EUR 10.1 (6.8) million. Earnings per share was up 43% to EUR 0.14 (0.10).
  • Net interest income decreased but remained at a good level of EUR 34.9 (39.8) million.
  • Net commission income improved to EUR 14.9 (14.5) million.
  • Net income from life insurance doubled to EUR 6.8 (3.2) million.
  • Net income from non-life insurance rose notably to EUR 5.2 (1.5) million.
  • Write-downs on credits and outstanding premiums stood at EUR 4.3 (5.5) million.

CEO JUSSI LAITINEN:

"Aktia had a good year. All our business areas achieved as good results as in the previous year, or better. We strengthened our market position in the most important customer segments, and I’m especially pleased about the fact that our customers give us top marks in customer satisfaction surveys. This year is more challenging with a continuing financial crisis in the euro area and increased regulation of financing which will undoubtedly result in higher costs. Aktia strives to manage this structural challenge with the current capital base and a continued focus on growth. "

 

(EUR million) 2010 2009 ∆  10-12/
 2010		 10-12/
 2009		 ∆  7-9/
2010		 4-6/
2010		 1-3/
2010
Net interest income 149.3 152.2 -2 % 34.9 39.8 -12 % 37.0 38.6 38.9
Total operating income 249.4 233.1 7 % 62.0 58.7 6 % 60.2 66.2 61.0
Operating profit before write-downs on credits 92.0 78.7 17 % 17.8 15.3 16 % 24.7 27.4 22.1
Write-downs on credit and outstanding premiums -14.1 -31.7 -56 % -4.3 -5.5 -22 % -1.4 -3.8 -4.6
Operating profit 77.9 47.0 66 % 13.5 9.8 37 % 23.4 23.5 17.5
Cost-to-income ratio 0.59 0.57 4 % 0.68 0.57 19 % 0.58 0.54 0.57
Earnings per share (EPS), EUR 0.83 0.52 62 % 0.14 0.10 43 % 0.26 0.25 0.18
Equity per share (NAV)1, EUR 6.81 6.52 4 % 6.81 6.52 4 % 7.30 6.89 6.86
Return on equity (ROE),% 12.0 8.7 39 % 7.9 5.9 35 % 13.9 14.2 10.5
Capital adequacy ratio1,% 15.9 15.9 0 % 15.9 15.9 0 % 17.0 16.5 16.2
Tier 1 capital ratio1,% 10.1 9.5 6 % 10.1 9.5 6 % 10.4 10.1 9.6
Write-downs on credits/total credit stock, % 0.20 0.51 -61 % 0.06 0.09 -33 % 0.02 0.05 0.08

1 At the end of the period .

"Accounts annoncement 1 January - 31 December 2010" is a translation of the original report in Swedish ("Bokslutskommuniké 1.1-31.12.2010"). In case of discrepancies, the Swedish version prevails.

 

 

We see a person in every customer.

 

 

         Additional information:
         Jussi Laitinen, CEO
         Tel. +358 10 247 6210
         
         Stefan Björkman, Vice President and CFO
         +358 10 247 6595
         
         Anna Gabrán, Investor Relations Manager
         tfn. +358 10 247 6501, +358 40 7081807

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