Aktia changes its segment reporting and publishes comparative figures after the implementation of the IFRS 17 standard

Aktia Bank Plc

Stock Exchange Release

8 May 2023 at 6.50 p.m. EET

Aktia changes its segment reporting and publishes comparative figures after the implementation of the IFRS 17 standard

• In the future, Aktia will report the asset management business and the life insurance business as separate segments.
• Aktia has implemented the IFRS 17 accounting standard as of 1 January 2023, which affects the comparative figures of the life insurance business and thus of the Group.
• The comparative figures have been recalculated in connection to the new segment reporting and the implementation of IFRS 17.
• The wording of Aktia's outlook has been clarified due to the recalculated comparative figures according to IFRS 17.

To further increase reporting transparency, the Aktia Group's reported segments have been changed. As of 1 January 2023, the life insurance business has been separated from the former Asset Management segment. Since then, the reporting segments of Aktia Group are Banking, Asset Management, Life Insurance and Group Functions.

Aktia has also adopted the IFRS 17 accounting standard, which has changed the valuation and presentation of insurance contracts in the financial statements as of 1 January 2023. It is worth noting that the recalculated comparative figures for the net income from life insurance, and thus the comparable operating profit for 2022, are exceptionally high due to the increase in interest rates and its impact on the discount rate used for calculating the present value of liabilities for insurance contracts.

In connection with the implementation of IFRS 17, the transition effect on 1 January 2022 was a decrease of EUR 104 million of shareholders’ equity (net after tax), which was entered directly in shareholders’ equity. The implementation of IFRS 17 does not affect the solvency ratio of Aktia Life Insurance Ltd or the Bank Group's capital adequacy ratio. However, the capital adequacy ratio of the finance and insurance conglomerate increased by almost two percentage points and the return on equity (ROE) by almost two percentage points.

The wording of Aktia's outlook has been clarified

Due to the recalculation of the comparative figures, the wording of Aktia's outlook, which was given in connection with the publication of financial statement release, is clarified so that the comparison with last year's comparable operating profit refers to the result for 2022, which was reported according to the previous accounting standard and amounted to EUR 65.2 million. The clarified outlook is:

“Aktia's comparable operating profit for 2023 is expected to be clearly higher than the EUR 65.2 million reported for 2022 (under the accounting standard previously applied for the life insurance business).”

(Earlier: Aktia's comparable operating profit for 2023 is expected to be clearly higher than for 2022.”)

Transition effects as of 1 January 2022 as well as the recalculated quarterly results and the full-year result for 2022 according to IFRS 17 and renewed segment reporting are attached to this stock exchange release. The accounting principles for insurance contracts are included in Aktia's interim report for the period 1 January to 31 March 2023, which will be published on 11 May 2023.

Aktia Bank Plc

For more information, please contact:

Outi Henriksson, CFO

Tel. 0, outi.henriksson(at)aktia.fi

Lotta Borgström, Director, Investor Relations and Communications

Tel. 8, lotta.borgstrom(at)aktia.fi

Distribution:

Nasdaq Helsinki Oy

Mass media

Aktia is a Finnish asset manager, bank and life insurer that has been creating wealth and wellbeing from one generation to the next for 200 years. We serve our customers in digital channels everywhere and face-to-face in our offices in the Helsinki, Turku, Tampere, Vaasa, and Oulu regions. Our award-winning asset management business sells investment funds internationally. We employ approximately 900 people around Finland. Aktia's assets under management (AuM) on 31 December 2022 amounted to EUR 13.5 billion, and the balance sheet total to EUR 12.4 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com. 

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