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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 | 161 | 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 PlcStock Exchange Release9 August 2023 at 8.00 a.m.
Aktia Bank Plc’s Half-year report January-June 2023: Continued strong growth in net interest income
April-June in short
January-June in short
Outlook 2023 (unchanged)
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).
The outlook has been prepared based on the following assumptions:
Juha Hammarén, interim CEO
Aktia’s strong financial development continued during the second quarter of the year. Interest income from lending continued to grow as the interest rate adjustments in the loan book increased faster than the financing costs. Aktia issued a EUR 500 million covered bond in May. The bond was oversubscribed 2.5-fold and priced very competitively, which considering the market conditions was an excellent result and an example of successful investor work both in Finland and internationally. However, it should be noted that the rise in interest rates also increases the costs for market-based and deposit financing. Our deposit base remained stable also during the second quarter.
The demand for housing loans remained soft as in the beginning of the year due to the housing market slowing down and the continuing general market uncertainty. So far, the employment rate in Finland has remained high and we have not seen an increase in the demand for instalment-free periods in housing loans. However, the strong demand for hire purchase and leasing financing among corporate customers continued. The quality of the loan book was still on a high level, and the average margin for the entire loan book continued to grow. Aktia's credit loss provisions during the quarter remained at a very moderate level at EUR -1.3 million.
Net commission income for the quarter decreased somewhat compared to the reference period. The market environment was still unstable, and the development especially in the Finnish equity market was regrettably modest. Market changes put pressure on customer assets under management, which nevertheless remained almost at the same level as at the beginning of the year and amounted to EUR 13.8 billion. I am especially happy with the positive net subscriptions of EUR 73 million. This is proof of our successful advisory and sales efforts.
Aktia's position at the top of the European fixed income fund houses was strengthened further when Aktia was awarded as the best European fixed income fund house in the small fund houses category in the Refinitiv Lipper Fund Awards. The rise in interest rates has restored customers’ interest in fixed income investments, which further strengthens Aktia’s position among asset managers. The cooperation with Taaleri within alternative investments also continued successfully. Together with Taaleri, Aktia launched the Article 9 fund Aurinkotuuli III in February. The fund raised more than EUR 160 million in its first round of funding, exceeding its target. The Aurinkotuuli III fund strongly supports the green transition in the energy economy.
Good profit development continued
The life insurance business, and hence the net income from life insurance, also continued their positive development during the second quarter. The sales of risk life insurances in particular remained strong, and the actuarially calculated result increased to EUR 7.7 million. In this context it should be noted that the recalculated comparative figures for 2022 according to the new accounting standard IFRS 17 include considerable positive changes in market value, thus making the comparison of net income from life insurance significantly more difficult throughout 2023.
Higher inflation made the cost development for the first half of the year more challenging than we expected at the beginning of the year. The costs increased also due to the start-up expenses of IT outsourcings. We will pay special attention to cost control during the rest of the year.
Aktia’s comparable operating profit in the second quarter amounted to EUR 26.5 million, which I am very happy with. The figure was considerably lower than in the reference period (49.7) due to the recalculation of the net income from life insurance according to the IFRS 17 accounting standard. The comparable operating profit from the reference period last year, according to the accounting standard used at the time, amounted to EUR 24.7 million, which includes capital gains of EUR 11 million in the life insurance company’s investment portfolio.
Key Figures
(EUR million) | Q2/2023 | Q2/2022 | ∆ % | 1-6/2023 | 1-6/2022 | ∆ % | Q1/2023 | ∆ % | 2022 |
Net interest income | 33.8 | 25.8 | 31% | 65.6 | 50.9 | 29% | 31.8 | 6% | 99.2 |
Net commission income | 30.4 | 31.6 | -4% | 60.6 | 63.0 | -4% | 30.3 | 0% | 122.0 |
Net income from life insurance | 5.7 | 34.9 | -84% | 12.9 | 56.3 | -77% | 7.2 | -20% | 79.2 |
Total operating income | 70.3 | 93.7 | -25% | 140.6 | 172.4 | -18% | 70.3 | 0% | 302.9 |
Operating expenses | -42.2 | -41.8 | 1% | -89.3 | -85.1 | 5% | -47.1 | -11% | -169.4 |
Impairment of credits and other commitments | -1.3 | -2.4 | -45% | -2.3 | -2.1 | 9% | -0.9 | 40% | -10.2 |
Operating profit | 26.8 | 49.7 | -46% | 49.0 | 85.5 | -43% | 22.2 | 21% | 123.5 |
Comparable operating income1 | 70.0 | 93.7 | -25% | 140.3 | 172.2 | -19% | 70.3 | 0% | 302.8 |
Comparable operating expenses1 | -42.2 | -41.8 | 1% | -87.9 | -85.1 | 3% | -45.8 | -8% | -168.1 |
Comparable operating profit1 | 26.5 | 49.7 | -47% | 50.1 | 85.3 | -41% | 23.6 | 13% | 124.7 |
Cost-to-income ratio | 0.60 | 0.45 | 34% | 0.64 | 0.49 | 29% | 0.67 | -11% | 0.56 |
Comparable cost-to-income ratio1 | 0.60 | 0.45 | 35% | 0.63 | 0.49 | 27% | 0.65 | -7% | 0.56 |
Earnings per share (EPS), EUR | 0.29 | 0.55 | -47% | 0.54 | 0.95 | -43% | 0.25 | 16% | 1.37 |
Comparable earnings per share (EPS), EUR1 | 0.29 | 0.55 | -48% | 0.55 | 0.95 | -41% | 0.27 | 8% | 1.38 |
Return on equity (ROE), % | 14.1 | 28.0 | -50% | 13.3 | 24.2 | -45% | 12.2 | 15% | 17.0 |
Comparable return on equity (ROE), %1 | 13.9 | 28.0 | -50% | 13.6 | 24.1 | -44% | 13.0 | 7% | 17.2 |
Common Equity Tier 1 capital ratio (CET1), %2 | 11.0 | 10.4 | 6 % | 11.0 | 10.4 | 6 % | 11.1 | -1 % | 10.8 |
1) Alternative performance measures2) 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 9 August 2023 at 10.30 a.m. (EEST). interim 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-q2-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 6236Lotta Borgström, Director, Investor Relations and Communications, tel. +358 10 247 6838, lotta.borgstrom (at) aktia.fi
Distribution:Nasdaq Helsinki LtdCentral mediawww.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 900 people around Finland. Aktia's assets under management (AuM) on 30 June 2023 amounted to EUR 13.8 billion, and the balance sheet total was EUR 12.3 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com.
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