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AKTIA PLC INTERIM REPORT 1 JANUARY - 30 AUGUST 2011

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CEO JUSSI LAITINEN:

"Net interest income (NII) weakened as expected, as the effects of interest rate hedging activities gradually tailed off, adversely affecting operating profit for the period. Net commission and life insurance income increased, partly compensating for the weaker NII. Investments in IT have temporarily pushed up operating expenses, but they are expected to increase earnings in the longer term and support a more efficient way of working. In my view, we need to reduce costs by 10% and this has to be done during the coming three years. The turbulence in the European financial markets has continued, which had a negative effect on the interim result. Aktia’s liquidity and capital adequacy provide a stable base for the business.""

 

JANUARY- JUNE 2011: OPERATING PROFIT EUR 30.9 (41.0) MILLION

  • Group operating profit fell back to EUR 30.9 (41.0) million, and profit for the period to EUR 23.1 (30.0) million.
  • Earnings per share stood at EUR 0.33 (0.43).
  • Operating income was EUR 120.3 (127.2) million and operating expenses EUR 83.5 (78.8) million.
  • Balance sheet total amounted to EUR 10,746 (11,019) million.
  • Capital adequacy ratio increased to 16.6 (15.9)% and Tier 1 capital ratio to 10.8 (10.1)%.
  • Return on equity was 9.4 (12.4)%.
  • Write-downs on credits and outstanding premiums stood at EUR 5.7 (8.4) million.
  • Aktia Bank plc’s credit rating remained unchanged A1/C/P-1 (Moody’s Investors Service).
  • The full-year result for 2011 will be lower than in 2010 (amended, outlook in details on p. 14)

 

APRIL-JUNE 2011: OPERATING PROFIT  EUR 12.1 (23.5) MILLION

  • Group operating profit amounted to EUR 12.1 (23.5) million, and profit for the period stood at EUR 8.9 (17.5) million.
  • Earnings per share stood at EUR 0.13 (0.25).
  • Operating income was EUR 57.7 (66.2) million and operating expenses EUR 43.4 (40.0) million
  • Return on equity was 7.6 (14.2)%
  • Write-downs on credits and outstanding premiums decreased to EUR 2.1 (3.8) million.

 

Key figures for the Group                
(EUR million) 1-6/ 2011 1-6/ 2010 ∆%  4-6/ 2011 4-6/ 2010 ∆%  1-3/ 2011 1-12/ 2010
                 
Net interest income 68.3 76.8 -11 % 33.6 38.2 -12 % 34.7 149.3
Total operating income 120.3 127.2 -5 % 57.7 66.2 -13 % 62.6 249.4
Total operating expenses -83.5 -78.8 6 % -43.4 -40.0 9 % -40.1 -159.0
Operating profit before write downs on credits 36.6 49.4 -26 % 14.2 27.4 -48 % 22.4 92.0
Write-downs on credits, other commitments and outstanding premium receivables -5.7 -8.4 -32 % -2.1 -3.8 -45 % -3.6 -14.1
Operating profit 30.9 41.0 -25 % 12.1 23.5 -49 % 18.8 77.9
                 
Cost-to-income ratio  0.68 0.55 24 % 0.74 0.54 37 % 0.63 0.59
Earnings per share (EPS), EUR 0.33 0.43 -24 % 0.13 0.25 -48 % 0.20 0.83
Equity per share (NAV)1, EUR 6.43 6.89 -7 % 6.43 6.89 -7 % 6.14 6.81
Return on equity (ROE), % 9.4 12.4 -24 % 7.6 14.2 -47 % 11.9 12.0
                 
Capital adequacy ratio1, %  16.6 16.5 1 % 16.6 16.5 1 % 16.0 15.9
Tier 1 capital ratio1, %  10.8 10.1 6 % 10.8 10.1 6 % 10.3 10.1
Write-downs on credits / total credit stock, % 0.08 0.13 -38 % 0.03 0.05 -40 % 0.05 0.20
1 At the end of the period                

 

         AKTIA PLC:
         CEO Jussi Laitinen, tel +358 10 247 5000
         CFO, Deputy CEO Stefan Björkman, tel +358 10 247 6595
         Investor Relations Manager Anna Gabrán, tel +358 10 247 6501, anna.gabran(at)aktia.fi

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