AKTAV Aktia Bank plc Class A

Aktia Bank Plc’s Interim Report January–September 2021: Continued good performance in all business areas

Aktia Bank Plc’s Interim Report January–September 2021: Continued good performance in all business areas

Aktia Bank Plc

Stock Exchange Release

4 November 2021 at 8.00 a.m.

Aktia Bank Plc’s Interim Report January–September 2021: Continued good performance in all business areas

The quarter in short

  • A good net interest income from both borrowing and lending
  • The net commission income was at a very good level, the net subscriptions turned positive during the quarter
  • The strong net income from life insurance was attributable to an increased actuarially calculated result and the net investment income was significantly higher than last year
  • The comparable cost-to-income ratio decreased to 0.63
  • The integration of Taaleri’s wealth management operations continues according to plan



Outlook 2021 (maintained)

Aktia maintains its previous outlook in which the comparable operating profit for 2021 is expected to be considerably

higher than during 2020.

Dividend

On 5 October 2021, the Board of Directors of Aktia decided to pay out a dividend of EUR 0.43 per share for the accounting period of 1 January–31 December 2020 in accordance with the authorisation given by the Annual General Meeting of 2021. The dividend was paid on 14 October 2021.

Mikko Ayub, CEO:

The good performance continued during Aktia's third quarter. Thanks to the strong development in all business areas, the comparable operating profit amounted to EUR 23.8 (16.0; Q3/2020) million.

The net interest income was EUR 23.1 (20.0) million during the quarter. Lending among both private customers and corporate customers continued to grow at the current, moderate level of risk. Our goal in itself is not to increase the volume but upholding the good quality of the credit portfolio is equally important for us. Financing services were now also offered to the new private customers who became Aktia’s customers in connection to the acquisition of Taaleri’s wealth management operations.

The net commission income increased to EUR 33.5 (24.2) million. The assets under management remained at the level of the previous quarter and amounted to EUR 15.6 billion: the volatility of the equity market and the nervousness of investors weighed the changes in market values, but the net subscriptions turned positive during the quarter, which I am happy about. Taaleri’s wealth management operations, acquired in the spring, was also for the first time included in the figures of the whole quarter. The net income from life insurance increased to EUR 9.7 (4.7) million and both the actuarially calculated result and the net investments were at a good level.

Aktia’s comparable expenses amounted to EUR 41.6 (33.8) million. The big difference to last year's corresponding period is explained by the normal operating expense structure that has increased as a result of the acquisition of Taaleri’s wealth management operations.

Aktia has updated its strategy and financial targets

In the beginning of September, Aktia updated its strategy and long-term financial targets. The new