The Pillar 2 requirement for Aktia decreases by 0.25 percentage points to 1.00%

Aktia Bank Plc

Insider information

25 April 2024 at 5.30 p.m.

The Pillar 2 requirement for Aktia decreases by 0.25 percentage points to 1.00%

The Finnish Financial Supervisory Authority has today imposed a discretionary additional capital requirement (Pillar 2) of 1.00% for Aktia Bank Plc Group. The requirement is valid until further notice as of 30 September 2024 but not longer than until 30 September 2027. The current Pillar 2 requirement, valid until the new requirement enters into force, is 1.25%.

The Finnish Financial Supervisory Authority’s decision on the Pillar 2 requirement has been made based on the ordinary annual supervisory review and evaluation process (SREP) of credit institutions, based on the Finnish Act on Credit Institutions. The Pillar 2 requirement must be met as follows: at least three quarters of the additional capital requirement shall be Tier 1 capital, of which at least three quarters shall be Common Equity Tier 1 capital (CET1) in accordance with the EU Regulation on capital requirements.

The minimum requirements of the CET1 capital ratio consist of Pillar 1 and 2 requirements and additional buffer requirements, including any systemic risk buffer requirement. As previously announced by the Finnish Financial Supervisory Authority, its Board decided at its meeting on 29 March 2023 to impose a requirement to maintain a systemic risk buffer covered by CET1 capital and amounting to 1.00% on a large number of Finnish credit institutions, including Aktia. This decision on the systemic risk buffer requirement entered into force on 1 April 2024.

It follows from the above that Aktia’s minimum CET1 capital ratio increased by 1.00 percentage points from 1 April 2024 due to the systemic risk buffer requirement, but will decrease by 0.15 percentage points from 30 September 2024, when the reduced Pillar 2 requirement enters into force. The CET1 capital ratio of Aktia Group was 11.3% at the end of December 2023 and the minimum CET1 capital ratio was 7.75%.

Aktia meets the above-mentioned requirements and also has clear targets for capital adequacy and dividends. According to Aktia's financial targets, the CET1 capital ratio should be above 1.5 percentage points over the regulatory requirement.

Aktia Bank Plc

Further information:

Oscar Taimitarha, Director, Investor Relations, tel. 5

Distribution:

Nasdaq Helsinki Ltd

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 860 people around Finland. Aktia's assets under management (AuM) on 31 December 2023 amounted to EUR 13.7 billion, and the balance sheet total was EUR 12.0 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.