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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Aktia Bank Abp | LSE:0QF8 | London | Ordinary Share | FI4000058870 | AKTIA ORD SHS |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 9.37 | 9.14 | 9.60 | 1,233 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
State Commercial Banks | 284.62M | 84.22M | 1.8032 | 5.20 | 437.64M |
Aktia Bank Plc
Stock Exchange Release
8 February 2024 at 8.00 a.m.
Aktia Bank Plc’s Financial Statement Release January-December 2023: Aktia achieved a strong result, driven by a very good net interest income
October-December in short
January-December in short
Proposed dividend
Aktia's Board of Directors proposes, in accordance with the company's dividend policy, that a dividend of EUR 0.70 per share to be paid for 2023, which constitutes 60% of the profit for the reporting period and corresponds to a dividend of approx. EUR 51 million.
Outlook 2024
Aktia's comparable operating profit for 2024 is expected to be somewhat higher than the EUR 108.4 million reported for 2023.
The outlook has been prepared based on the following assumptions:
Juha Hammarén, CEO
The fourth quarter of 2023 was excellent for Aktia. All three of our business areas, Banking, Asset Management, and Life Insurance, developed positively. I consider the significant increase in the number of customers, which continued until the end of the year, as a particular success. In the course of the year, we welcomed over 30,000 new customers.
Net interest income increased by 61 per cent from the corresponding quarter last year, and net commission income also increased from the reference period, which we can be satisfied with in the current market environment. The increase in net interest income combined with a moderate increase in costs, despite high inflation, brought the comparative operating profit for the full year to EUR 108.4 million. When considering the result, it should be noted that the comparative figures have been recalculated according to IFRS 17, making the comparison between years difficult.
Business areas developed well
The Banking business developed strongly. Demand for fixed-term deposits has remained high. The general uncertainty kept the demand for housing loans subdued despite a slight pick-up towards the end of the year. However, the total credit stock grew as the demand for hire purchase and leasing financing remained strong among corporate customers. The average margin for the entire loan book continued to grow. The balance sheet also developed well. I am particularly pleased that credit losses remained at a moderate level and the quality of the credit stock remained in line with our strategy. We have been actively reviewing the risks of our credit portfolios, and this has paid off.
In the Asset Management business, market uncertainty has been reflected particularly on the development of commission income. In the fourth quarter, the trend turned, and commission income grew from the reference period. Assets under management increased, although most of the increase came from the change in market value. Net sales to Private Banking customers continue strong in the fourth quarter and were clearly positive on an annual basis, similar to sales to domestic institutional investors. At the end of the year, a reorganisation was implemented in Asset Management to improve customer experience and develop and strengthen service models.
The fourth quarter was strong for the Life Insurance business. The sales of risk life insurance developed well for the fifth consecutive year and the sale of investment-linked insurance remained stable. Net income from life insurance grew from the corresponding quarter of the previous year and the actuarially calculated result for the full year improved. In the summer, the company selected a supplier for its basic system project, and the planning of the project progressed towards the end of the year, so that the implementation can begin in early 2024.
The new Corporate Sustainability Reporting Directive requires more extensive reporting of sustainability data from 2024 onwards. Sustainability guides everything we do in Aktia and we look forward to being able to further strengthen our sustainability work through more comprehensive reporting. We have prepared for the new requirements set by regulation and are well prepared to respond to the new reporting requirements.
Focus on developing customer and employee experience
Aktia’s personnel costs were slightly higher than in the corresponding quarter of the previous year. By contrast, the fixed salary costs were lower than last year, which means that the trend is moving in the right direction. At the beginning of 2023, we promised to reward our employees with EUR 1 million if Aktia´s comparable operating profit for 2023 exceeds EUR 100 million. The reward will be distributed equally among all employees and the share of the Executive Committee will be donated to charity.
IT costs increased clearly due to outsourcing of services, high inflation and investments in information security, improvement of customer experience and system renewals. In improving customer experience, we focus on solutions that enable smoother and quicker identification services and complement the tools for meeting customers in digital channels. One example is the Aktia Contact Center system renewal, which has been received well. With improvements like these, we can contribute towards seamless customer services in a concrete way.
An excellent employee and customer experience, the best wealth management, and customers who want to grow their wealth are the cornerstones of our operations also in the coming year. We strive to be worthy of your trust and meet your expectations every day of the year.
Key Figures
(EUR million) | Q4/2023 | Q4/2022 | ∆ % | 1-12/2023 | 1-12/2022 | ∆ % | Q3/2023 | ∆ % | Q2/2023 | Q1/2023 |
Net interest income | 38.9 | 24.2 | 61% | 144.0 | 99.2 | 45% | 39.5 | -2% | 33.8 | 31.8 |
Net commission income | 29.8 | 29.1 | 2% | 120.4 | 122.0 | -1% | 30.0 | -1% | 30.4 | 30.3 |
Net income from life insurance | 6.0 | 3.3 | 82% | 24.1 | 79.2 | -70% | 5.1 | 18% | 5.7 | 7.2 |
Total operating income | 75.2 | 58.2 | 29% | 291.0 | 302.9 | -4% | 75.2 | 0% | 70.3 | 70.3 |
Operating expenses | -46.5 | -44.1 | 6% | -176.6 | -169.4 | 4% | -40.8 | 14% | -42.2 | -47.1 |
Impairment of credits and other commitments | -2.4 | -7.1 | -66% | -7.0 | -10.2 | -32% | -2.3 | 8% | -1.3 | -0.9 |
Operating profit | 25.2 | 6.9 | 266% | 106.2 | 123.5 | -14% | 32.0 | 21% | 26.8 | 22.2 |
Comparable operating income1 | 75.2 | 58.2 | 29% | 290.8 | 302.8 | -4% | 75.2 | 0% | 70.0 | 70.3 |
Comparable operating expenses1 | -45.5 | -42.7 | 7% | -174.2 | -168.1 | 4% | -40.8 | 12% | -42.2 | -45.8 |
Comparable operating profit1 | 26.3 | 8.3 | 216% | 108.4 | 124.7 | -13% | 32.0 | -18% | 26.5 | 23.6 |
Cost-to-income ratio | 0.62 | 0.76 | -18% | 0.61 | 0.56 | 9% | 0.54 | 15% | 0.60 | 0.67 |
Comparable cost-to-income ratio1 | 0.60 | 0.73 | -18% | 0.60 | 0.56 | 7% | 0.54 | 11% | 0.60 | 0.65 |
Earnings per share (EPS), EUR | 0.28 | 0.07 | 300% | 1.16 | 1.37 | -15% | 0.34 | -18% | 0.29 | 0.25 |
Comparable earnings per share (EPS), EUR1 | 0.29 | 0.09 | 222% | 1.19 | 1.38 | -14% | 0.34 | -15% | 0.29 | 0.27 |
Return on equity (ROE), % | 12.8 | 3.7 | 9.1* | 13.7 | 17.0 | -3.3* | 16.2 | -3.4* | 14.1 | 12.3 |
Comparable return on equity (ROE), %1 | 13.3 | 4.5 | 8.7* | 14.0 | 17.2 | -3.2* | 16.2 | -3* | 13.9 | 13.0 |
Common Equity Tier 1 capital ratio (CET1), %2 | 11.3 | 10.8 | 5% | 11.3 | 10.8 | 5% | 11.0 | 3% | 11.0 | 11.1 |
Dividend per share (Proposal from Board of Directors), EUR | 0.70 | 0.43 | 63% |
* The change is calculated in percentage points
1) Alternative performance measures
2) At the end of the period
Reference periods 2022 have been recalculated according to the new IFRS 17 standard for insurance contracts.
Webcast from the results event
A live webcast from the results event will take place on 8 February 2024 at 10.30 a.m. (EET). CEO Juha Hammarén and CFO Outi Henriksson will present the results. The event is held in English and can be seen live at https://aktia.videosync.fi/2023-q4-results. A recording of the webcast will be available at www.aktia.com after the event.
AKTIA BANK PLC
For more information:
Outi Henriksson, CFO, tel. +358 10 247 6236
ir@aktia.fi
Distribution:
Nasdaq Helsinki Ltd
Central media
www.aktia.com
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.
Attachment
1 Year Aktia Bank Abp Chart |
1 Month Aktia Bank Abp Chart |
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