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AKTIA PLC INTERIM REPORT JANUARY-SEPTEMBER 2011

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CEO JUSSI LAITINEN:

"Sales to private customers increased, but the disposal of our holdings in Bank of Åland had a negative effect on the result for this quarter. The interest rate level is still low in Europe, making improvement of profitability more challenging. Despite financial uncertainty, Aktia’s capital adequacy and Tier 1 capital remain at a good level. They exceed the Tier 1 ratio of 9.0% now suggested by the Euro Banking Association (EBA). Aktia stands well prepared for the upcoming Basel III and Solvency II rules, and can therefore continue to focus on further improvements in customer service. The launch of Aktias new Internetbank by year-end will bring remarkable enhancement to our competitive image in the sales of financial and insurance services to private customers."

JAN.-SEP.: OPERATING PROFIT EUR 40.4 (64.4) MILLION

  • Group operating profit fell to EUR 40.4 (64.4) million, and profit for the period to EUR 28.6 (47.9) million.
  • Earnings per share stood at EUR 0.42 (0.69).
  • Return on equity was 7.5% (12.8%).
  • Operating income was EUR 169.6 (187.4) million and operating expenses EUR 122.2 (115.0) million.
  • The balance sheet total amounted to EUR 10,746 (11,019) million.
  • The capital adequacy ratio increased to 16.6 (15.9)% and Tier 1 capital ratio to 10.8 (10.1)%.
  • Write-downs on credits and outstanding premiums stood at EUR 6.9 (9.8) million.
  • Aktia Bank plc’s credit rating remained unchanged at A1/C/P-1 (Moody’s Investors Service).
  • OUTLOOK: The full-year result for 2011 will be lower than in 2010 (unchanged, outlook in details on p.14).

JULY-SEP.: OPERATING PROFIT EUR 9.5 (23.4) MILLION

  • Group operating profit fell to EUR 9.5 (23.4) million, and profit for the period to EUR 5.5 (17.9) million.
  • The disposal of holdings in Bank of Åland reduced profit by EUR 6.3 million.
  • Earnings per share stood at EUR 0.09 (0.26).
  • Return on equity was 4.4 (13.9)%
  • Operating income was EUR 49.3 (60.2) million and operating expenses EUR 38.6 (36.2) million.
  • Write-downs on credits and outstanding premiums decreased to EUR 1.2 (1.4) million.

 

Key figures for the Group                  
(EUR million) 1-9/11 1-9/10 ∆       7-9/11 7-9/10 ∆       4-6/11 1-3/11 2010
Net interest income 100.2 113.4 -12 % 31.9 36.6 -13 % 33.6 34.7 149.3
Total operating income 169.6 187.4 -10 % 49.3 60.2 -18 % 57.7 62.6 249.4
Total operating expenses -122.2 -115.0 6 % -38.6 -36.2 7 % -43.4 -40.1 -159.0
Operating profit before write downs on credits 47.4 74.2 -36 % 10.7 24.7 -57 % 14.2 22.4 92.0
Write-downs on credits, other commitments and outstanding premium receivables -6.9 -9.8 -29 % -1.2 -1.4 -11 % -2.1 -3.6 -14.1
Operating profit 40.4 64.4 -37 % 9.5 23.4 -59 % 12.1 18.8 77.9
Cost-to-income ratio  0.72 0.56 29 % 0.79 0.58 36 % 0.74 0.63 0.59
Earnings per share (EPS), EUR 0.42 0.69 -40 % 0.09 0.26 -65 % 0.13 0.20 0.83
Equity per share (NAV)1, EUR 6.90 7.30 -5 % 6.90 7.30 -5 % 6.43 6.14 6.81
Return on equity (ROE), % 7.5 12.8 -42 % 4.4 13.9 -68 % 7.6 11.9 12.0
Capital adequacy ratio1, % 16.6 17.0 -2 % 16.6 17.0 -2 % 16.6 16.0 15.9
Tier 1 capital ratio1, % 10.8 10.4 4 % 10.8 10.4 4 % 10.8 10.3 10.1
Write-downs on credits / total credit stock, % 0.09 0.14 -36 % 0.02 0.02 0 % 0.03 0.05 0.20

 1At the end of the period

"Interim report January - Sept 2011" is a translation of the original report in Swedish ("Delårsrapport 1.1-30.9.2011"). In case of discrepancies, the Swedish version prevails.

         CEO Jussi Laitinen, tel +358 10 247 6250
         Deputy CEO, CFO Stefan Björkman, tel. +358 10 247 6595
         IR Manager Anna Gabrán, tel. +358 10 247 6501, +358 40 708 1807
         ir(at)aktia.fi

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