Aktia Bank Plc Interim Report January–September 2018
Aktia Bank Plc
Interim Report January–September 2018
31 October at 8 a.m.
Aktia Bank Plc Interim Report January–September 2018
Continued strong result development
Mikko Ayub, CEO:
Aktia’s operating profit continued to develop well also during the third quarter of the year. The Group’s comparable operating profit during the quarter was EUR 18.6 million and increased by 18% from the corresponding period previous year. The increased operating profit was mainly supported by the stable development of commission income as well as lower expenses.
Our goal amid the changing banking and finance sector is to ensure our competitiveness and to be a more efficient and a more profitable bank. Since I started as CEO at Aktia in the beginning of October I am especially satisfied that our focus on the new strategy and consequently Aktia’s core business activity now gives clear results. During last year, Aktia introduced a new core banking system that improves the customer experience by enabling quicker product development also for digital banking services. In our strategy we are concentrating on individual wealth management and financing to increase our customers’ wealth in the long term. Together with our competent staff we have every chance to concentrate on this even in the future.
July–September 2018:
- Total operating income increased to EUR 55.4 (50.3) million. The net commission income was EUR 22.9 (22.0) million. The net interest income was EUR 21.0 (21.5) million, of which the net interest income from borrowing and lending was EUR 17.7 (16.9) million. The interest income from the liquidity portfolio and unwound interest rate hedges decreased by EUR 2.4 million. Net income from life insurance was EUR 5.5 (6.4) million and was affected negatively by unrealised value changes in the investment portfolio.
- The total operating expenses decreased by 24% to EUR 31.8 (41.7) million. Operating expenses excluding items affecting comparability were EUR 31.8 (34.4) million.
- The operating profit increased to EUR 23.7 (8.0) million. The comparable operating profit increased to EUR 18.6 (15.7) million.
- Outlook 2018 (unchanged): The comparable operating profit for 2018 is expected to be somewhat higher than the comparable operating profit for 2017.
Key figures
| (EUR million) | 3Q2018 | 3Q2017 | ∆ % | Jan-Sep 2018 | Jan-Sep 2017 | ∆ % | 2Q2018 | 3Q/2Q | 1Q2018 | 2017 | |||
| Net interest income | 21.0 | 21.5 | -2 | % | 65.2 | 67.8 | -4 | % | 23.5 | -10 | % | 20.7 | 89.6 |
| Net commission income | 22.9 | 22.0 | 4 | % | 73.0 | 67.7 | 8 | % | 26.2 | -13 | % | 23.8 | 91.4 |
| Net income from life-insurance | 5.5 | 6.4 | -15 | % | 16.3 | 19.2 | -15 | % | 5.0 | 10 | % | 5.8 | 26.6 |
| Other operating income | 6.0 | 0.3 | - | 7.9 | 2.9 | 175 | % | 1.1 | 427 | % | 0.8 | 2.6 | |
| Total operating income | 55.4 | 50.3 | 10 | % | 162.4 | 157.6 | 3 | % | 55.8 | -1 | % | 51.2 | 210.3 |
| Total operating expenses | -31.8 | -41.7 | -24 | % | -103.6 | -118.7 | -13 | % | -38.3 | -17 | % | -33.5 | -160.7 |
| Impairment of credits and other commitments | -0.8 | 0.0 | - | -0.7 | -0.1 | 440 | % | 0.7 | - | -0.6 | -0.6 | ||
| Operating profit | 23.7 | 8.0 | 195 | % | 59.5 | 38.9 | 53 | % | 18.2 | 30 | % | 17.7 | 49.1 |
| Comparable operating profit1 | 18.6 | 15.7 | 18 | % | 55.2 | 48.5 | 14 | % | 18.5 | 0 | % | 18.0 | 59.9 |
| Cost-to-income ratio | 0.57 | 0.83 | -31 | % | 0.64 | 0.75 | -15 | % | 0.69 | -17 | % | 0.65 | 0.76 |
| Earnings per share (EPS)3, EUR | 0.29 | 0.09 | 205 | % | 0.72 | 0.45 | 59 | % | 0.21 | 34 | % | 0.22 | 0.57 |
| Equity per share (NAV)2,3, EUR | 8.48 | 8.61 | -2 | % | 8.48 | 8.61 | -2 | % | 8.26 | 3 | % | 8.61 | 8.70 |
| Return on equity (ROE), % | 13.7 | 4.4 | 212 | % | 11.2 | 6.9 | 63 | % | 10.1 | 35 | % | 10.2 | 6.5 |
| Common Equity Tier 1 capital ratio (CET1)2, % | 16.6 | 17.3 | -4 | % | 16.6 | 17.3 | -4 | % | 16.3 | 2 | % | 16.4 | 18.0 |
| Capital adequacy ratio2, % | 20.1 | 22.9 | -12 | % | 20.1 | 22.9 | -12 | % | 20.1 | 0 | % | 20.8 | 23.4 |
1) Alternative performance measures excluding items affecting comparability
2) At the end of the period
3) Recalculated according to the number of shares after combining series A and R
AKTIA BANK PLC
For more information:
Outi Henriksson, CFO, tel. +358 10 247 6236
Lotta Borgström, Investor Relations, tel. +358 10 247 6838, ir (at) aktia.fi
Distribution:
Nasdaq Helsinki Ltd
Central media
Aktia provides a broad range of solutions within banking, asset management, insurance and real estate agency. Aktia operates mainly in coastal areas and inland growth areas. Aktia has about 380,000 customers who are served at branch offices and via web, mobile interfaces as well as telephone services. Aktia's share is listed on the list of Nasdaq Helsinki Ltd. For more information about Aktia see
Attachments
