2013-05-07 07:00:01 CEST
2013-05-07 07:00:18 CEST
REGULATED INFORMATION
Aktia Pankki Oyj - Company Announcement
Aktia Bank plc: Aktia Bank plc’s financial position and profit for the period 1 January - 31 March 2013
Helsinki, Finland, 2013-05-07 07:00 CEST (GLOBE NEWSWIRE) --
Aktia Bank plc
Stock Exchange Release
7 May 2013 at 8:00 a.m.
Aktia Bank plc's financial position and profit for the period 1 January - 31
March 2013
Aktia Bank plc publishes information on the bank's financial performance and
financial position as the parent company of the bank, Aktia plc, publishes its
Interim Report for the period 1 January - 31 March 2013. The information
published is not an Interim Report as stipulated in the Securities Markets Act.
On 9 April 2013, the shareholder of Aktia Bank plc approved the merger of Aktia
plc with Aktia Bank plc. The planned effective date of the merger is 1 July
2013.
All information concerns Aktia Bank Group unless specified otherwise.
Key figures
--------------------------------------------------------------------------------
(EUR million) 1-3/ 1-3/ ∆ % 10-12/ ∆ % 2012
2013 2012 2012
--------------------------------------------------------------------------------
Earnings per share (EPS) 3.9 2.9 33% -0.6 - 7.8
--------------------------------------------------------------------------------
Equity per share (NAV) 1) 134.9 130.9 3% 141.3 -4% 141.3
--------------------------------------------------------------------------------
Return on equity (ROE), % 9.8 8.8 11% -1.4 - 5.6
--------------------------------------------------------------------------------
Total earnings per share 2.7 14.5 -82% 1.4 98% 31.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Number of shares at the end of 3 3 0% 3 0% 3
the period 1)
--------------------------------------------------------------------------------
Personnel (FTEs), average number 750 771 -3% 753 0% 753
of employees from the beginning
of the financial year 1)
--------------------------------------------------------------------------------
Banking Business
--------------------------------------------------------------------------------
Cost-to-income ratio 0.67 0.68 -1% 0.89 -25% 0.74
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Borrowing from the public 1) 3,703.4 3,700.8 0% 3,651.4 1% 3,651.4
--------------------------------------------------------------------------------
Lending to the public 1) 7,179.1 7,239.5 -1% 7,248.1 -1% 7,248.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Capital adequacy ratio, % 1) 20.0 18.1 11% 20.2 -1% 20.2
--------------------------------------------------------------------------------
Tier 1 capital ratio, % 1) 11.7 11.3 3% 11.8 -1% 11.8
--------------------------------------------------------------------------------
Risk-weighted commitments 1) 3,683.7 3,767.3 -2% 3,611.2 2% 3,611.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Asset Management (incl. Private
Banking)
--------------------------------------------------------------------------------
Assets under management 1) *) 6,141.0 5,334.0 15% 5,804.5 6% 5,804.5
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1) At the end of the period
*) Assets under management = Aktia Fund Management Company's assets under
management and brokered mutual funds and assets managed by Aktia Invest, Aktia
Asset Management and Aktia Bank's Private Banking
--------------------------------------------------------------------------------
-
Formulas for key figures are presented in Aktia Bank plc's Annual Report 2012
on page 9.
Consolidated income statement for Bank Group
--------------------------------------------------------------------------------
(EUR million) 1-3/2013 1-3/2012 ∆ % 2012
--------------------------------------------------------------------------------
Net interest income 29.8 29.5 1% 116.5
--------------------------------------------------------------------------------
Dividends 0.0 0.0 -99% 0.1
--------------------------------------------------------------------------------
Commission income 20.4 18.7 9% 76.7
--------------------------------------------------------------------------------
Commission expenses -4.6 -4.3 -6% -17.1
--------------------------------------------------------------------------------
Net commission income 15.8 14.4 10% 59.6
--------------------------------------------------------------------------------
Net income from financial 2.2 0.3 668% 2.9
transactions
--------------------------------------------------------------------------------
Net income from investment 0.0 0.0 -50% -0.3
properties
--------------------------------------------------------------------------------
Other operating income 0.9 1.5 -44% 4.7
--------------------------------------------------------------------------------
Total operating income 48.7 45.7 7% 183.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Staff costs -13.3 -13.2 1% -52.7
--------------------------------------------------------------------------------
IT-expenses -4.8 -4.9 -2% -26.4
--------------------------------------------------------------------------------
Depreciation of tangible and -0.7 -0.8 -21% -3.4
intangible assets
--------------------------------------------------------------------------------
Other operating expenses -13.7 -12.4 11% -53.5
--------------------------------------------------------------------------------
Total operating expenses -32.4 -31.3 4% -136.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Write-down on other financial - - - -1.8
assets
--------------------------------------------------------------------------------
Write-down on credits and other -1.1 -1.9 -41% -6.4
commitments
--------------------------------------------------------------------------------
Share of profit from associated 0.3 -0.1 - -0.4
companies
--------------------------------------------------------------------------------
Operating profit 15.4 12.4 24% 38.8
--------------------------------------------------------------------------------
Income and expenses from other - - - -3.1
activities
--------------------------------------------------------------------------------
Taxes -3.7 -3.4 10% -11.4
--------------------------------------------------------------------------------
Profit for the period 11.7 9.1 29% 24.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Attributable to:
--------------------------------------------------------------------------------
Shareholders in Aktia Bank plc 11.7 8.8 33% 23.4
--------------------------------------------------------------------------------
Non-controlling interest 0.0 0.3 - 0.8
--------------------------------------------------------------------------------
Total 11.7 9.1 29% 24.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Earnings per share (EPS), EUR 3,910,002.45 2,930,530.55 33% 7,814,312.31
--------------------------------------------------------------------------------
There is no dilution effect to
earnings per share
--------------------------------------------------------------------------------
Consolidated statement of
comprehensive income for Bank
Group
--------------------------------------------------------------------------------
(EUR million) 1-3/2013 1-3/2012 ∆ % 2012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the period 11.7 9.1 29% 24.3
--------------------------------------------------------------------------------
Other comprehensive income
after taxes:
--------------------------------------------------------------------------------
Change in valuation of fair -0.4 38.0 - 66.6
value for financial assets
available for sale
--------------------------------------------------------------------------------
Change in valuation of fair -2.9 -3.0 1% -3.3
value for cash flow hedging
--------------------------------------------------------------------------------
Transferred to the income - - - 14.0
statement for financial
assets available for sale
--------------------------------------------------------------------------------
Transferred to the income - - - -5.8
statement for cash flow
hedging
--------------------------------------------------------------------------------
Comprehensive income from -3.3 35.1 - 71.6
items which can be
transferred to the income
statement
--------------------------------------------------------------------------------
Defined benefit plan pensions - - - 0.0
--------------------------------------------------------------------------------
Comprehensive income from - - - 0.0
items which can not be
transferred to the income
statement
--------------------------------------------------------------------------------
Total comprehensive income for 8.4 44.1 -81% 95.9
the period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income
attributable to:
--------------------------------------------------------------------------------
Shareholders in Aktia Bank plc 8.1 43.6 -82% 94.7
--------------------------------------------------------------------------------
Non-controlling interest 0.3 0.5 -41% 1.2
--------------------------------------------------------------------------------
Total 8.4 44.1 -81% 95.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total earnings per share, EUR 2,684,633.89 14,534,035.15 -82% 31,556,571.18
--------------------------------------------------------------------------------
There is no dilution effect to
the total earnings per share
--------------------------------------------------------------------------------
Consolidated balance sheet for Bank Group
--------------------------------------------------------------------------------
(EUR million) 31.3.2013 31.12.2012 ∆ % 31.3.2012
--------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------
Cash and balances with central banks 293.7 585.9 -50% 219.6
--------------------------------------------------------------------------------
Interest-bearing securities 1,645.4 1,468.0 12% 2.052.1
--------------------------------------------------------------------------------
Shares and participations 5.9 6.1 -4% 1.8
--------------------------------------------------------------------------------
Financial assets available for sale 1,651.3 1,474.2 12% 2.053.9
--------------------------------------------------------------------------------
Financial assets held until maturity 362.5 350.0 4% 19.3
--------------------------------------------------------------------------------
Derivative instruments 270.8 302.2 -10% 309.3
--------------------------------------------------------------------------------
Lending to Bank of Finland and credit 129.0 158.7 -19% 131.0
institutions
--------------------------------------------------------------------------------
Lending to the public and public sector 7,179.1 7,248.1 -1% 7.239.5
entities
--------------------------------------------------------------------------------
Loans and other receivables 7,308.1 7,406.7 -1% 7.370.5
--------------------------------------------------------------------------------
Investments in associated companies 0.9 0.8 1% 3.0
--------------------------------------------------------------------------------
Intangible assets 2.2 2.0 11% 2.2
--------------------------------------------------------------------------------
Investment properties 0.5 0.5 0% 0.7
--------------------------------------------------------------------------------
Other tangible assets 4.2 4.4 -4% 4.9
--------------------------------------------------------------------------------
Accured income and advance payments 61.2 64.2 -5% 74.2
--------------------------------------------------------------------------------
Other assets 123.5 2.1 - 39.9
--------------------------------------------------------------------------------
Total other assets 184.7 66.3 179% 114.0
--------------------------------------------------------------------------------
Income tax receivables 0.7 0.1 543% 3.4
--------------------------------------------------------------------------------
Deferred tax receivables 21.5 22.7 -5% 1.8
--------------------------------------------------------------------------------
Tax receivables 22.2 22.8 -3% 5.2
--------------------------------------------------------------------------------
Total assets 10,101.0 10,215.8 -1% 10.102.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Liabilities
--------------------------------------------------------------------------------
Liabilities to credit institutions 983.5 1,057.6 -7% 977.1
--------------------------------------------------------------------------------
Liabilities to the public and public 3,703.4 3,651.4 1% 3.700.8
sector entities
--------------------------------------------------------------------------------
Deposits 4,686.9 4,709.0 0% 4.677.9
--------------------------------------------------------------------------------
Derivative instruments 161.6 186.4 -13% 163.2
--------------------------------------------------------------------------------
Debt securities issued 3,559.5 3,547.6 0% 3.770.4
--------------------------------------------------------------------------------
Subordinated liabilities 304.2 298.2 2% 281.6
--------------------------------------------------------------------------------
Other liabilities to credit institutions 586.6 629.6 -7% 486.0
--------------------------------------------------------------------------------
Other liabilities to the public and 128.7 146.7 -12% 65.1
public sector entities
--------------------------------------------------------------------------------
Other financial liabilitites 4,579.1 4,622.1 -1% 4.603.2
--------------------------------------------------------------------------------
Accured expenses and income received in 98.1 88.6 11% 116.1
advance
--------------------------------------------------------------------------------
Other liabilities 32.1 48.5 -34% 59.6
--------------------------------------------------------------------------------
Total other liabilities 130.2 137.1 -5% 175.7
--------------------------------------------------------------------------------
Provisions 6.9 6.9 0% -
--------------------------------------------------------------------------------
Income tax liabilities 20.0 19.7 2% 0.1
--------------------------------------------------------------------------------
Deferred tax liabilities 46.4 46.1 1% 31.6
--------------------------------------------------------------------------------
Tax liabilities 66.4 65.7 1% 31.7
--------------------------------------------------------------------------------
Total liabilities 9,631.1 9,727.2 -1% 9.651.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity
--------------------------------------------------------------------------------
Restricted equity 221.2 224.8 -2% 188.5
--------------------------------------------------------------------------------
Unrestricted equity 183.7 198.9 -8% 204.3
--------------------------------------------------------------------------------
Shareholders' share of equity 404.8 423.8 -4% 392.7
--------------------------------------------------------------------------------
Non-controlling interest's share of 65.1 64.8 0% 58.3
equity
--------------------------------------------------------------------------------
Equity 469.9 488.6 -4% 451.0
--------------------------------------------------------------------------------
Total liabilities and equity 10,101.0 10,215.8 -1% 10.102.6
--------------------------------------------------------------------------------
Consolidated statement of changes in equity for Bank Group
Sharehol Non-contr
ders' olling
Fund Unrestri Retain share of interest' Total
at cted ed s share
(EUR million) Share fair equity earnin equity of equity equity
capital value reserve gs
Equity as at 163,0 -9,4 44,6 120,9 319,1 57,7 376,8
1January 2012
Profit for the 8,8 8,8 0,3 9,1
period
Financial assets 37,9 37,9 0,2 38,0
available for sale
Cash flow -3,1 -3,1 0,1 -3,0
hedging
--------------------------------------------------------------------------------
Total comprehensive 34,8 8,8 43,6 0,5 44,1
income for the period
Other change in 30,0 30,0 0,0 30,0
equity
----------------
Equity as at 31 163,0 25,5 74,6 129,7 392,7 58,3 451,0
March 2012
--------------------------------------------------------------------------------
Equity as at 163,0 61,8 74,6 124,4 423,8 64,8 488,6
1January 2013
Dividends to -27,0 -27,0 -27,0
shareholders
Profit for the 11,7 11,7 0,0 11,7
period
Financial assets -0,4 -0,4 0,0 -0,4
available for sale
Cash flow -3,3 -3,3 0,3 -2,9
hedging
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive -3,7 11,7 8,1 0,3 8,4
income for the period
Other change in 0,0 0,0 0,0
equity
---------------- --------
Equity as at 31 163,0 58,2 74,6 109,1 404,8 65,1 469,9
March 2013
--------------------------------------------------------------------------------
Consolidated cash flow statement for Bank Group
--------------------------------------------------------------------------------
(EUR million) 1-3/20 1-3/20 ∆ % 2012
13 12
--------------------------------------------------------------------------------
Cash flow from operating activities
--------------------------------------------------------------------------------
Operating profit 15.4 12.4 24% 38.8
--------------------------------------------------------------------------------
Adjustment items not included in cash flow for the -4.8 5.5 - 0.8
period
--------------------------------------------------------------------------------
Unwound cash flow hedging - 6.7 - 17.5
--------------------------------------------------------------------------------
Unwound fair value hedging - - - 92.1
--------------------------------------------------------------------------------
Paid income taxes -1.3 16.9 - 13.5
--------------------------------------------------------------------------------
Cash flow from operating activities before change
in receivables and liabilities
--------------------------------------------------------------------------------
9.3 41.6 -78% 162.7
--------------------------------------------------------------------------
Increase (-) or decrease (+) in receivables from -208.9 -329.7 37% -15.4
operating activities
--------------------------------------------------------------------------------
Increase (+) or decrease (-) in liabilities from -59.3 22.7 - -54.3
operating activities
--------------------------------------------------------------------------------
Total cash flow from operating activities -258.8 -265.4 2% 93.0
--------------------------------------------------------------------------------
Cash flow from investing activities
--------------------------------------------------------------------------------
Financial assets held until maturity -14.2 0.7 - 9.9
--------------------------------------------------------------------------------
Proceeds from sale of group companies and - - - 0.0
associated companies
--------------------------------------------------------------------------------
Investment in tangible and intangible assets -0.9 -0.3 -165% -2.4
--------------------------------------------------------------------------------
Disposal of tangible and intangible assets 0.1 0.0 852% 0.1
--------------------------------------------------------------------------------
Total cash flow from investing activities -15.0 0.4 - 7.6
--------------------------------------------------------------------------------
Cash flow from financing activities
--------------------------------------------------------------------------------
Subordinated liabilities 6.0 -7.1 - 11.1
--------------------------------------------------------------------------------
Increase in unrestricted equity reserve - 30.0 - 30.0
--------------------------------------------------------------------------------
Share issue / dividend of Aktia Real Estate - - - 5.9
Mortgage Bank plc to the non-controlling interest
--------------------------------------------------------------------------------
Paid dividends -27.0 - - -20.0
--------------------------------------------------------------------------------
Total cash flow from financing activities -21.0 22.9 - 27.0
--------------------------------------------------------------------------------
Change in cash and cash equivalents -294.8 -242.1 -22% 127.6
--------------------------------------------------------------------------------
Cash and cash equivalents at the beginning of the 600.5 473.0 27% 473.0
year
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period 305.7 230.8 32% 600.5
--------------------------------------------------------------------------------
Cash and cash equivalents in the cash flow
statement consist of the following items:
--------------------------------------------------------------------------------
Cash in hand 6.7 8.1 -18% 8.0
--------------------------------------------------------------------------------
Bank of Finland current account 287.0 211.5 36% 577.9
--------------------------------------------------------------------------------
Repayable on demand claims on credit institutions 12.1 11.2 8% 14.6
--------------------------------------------------------------------------------
Total 305.7 230.8 32% 600.5
--------------------------------------------------------------------------------
Adjustment items not included in cash flow consist
of:
--------------------------------------------------------------------------------
Impairment reversal of financial assets available - - - -1.2
for sale
--------------------------------------------------------------------------------
Write-downs on other financial assets - - - 1.8
--------------------------------------------------------------------------------
Write-downs on credits and other commitments 1.1 1.9 -41% 6.4
--------------------------------------------------------------------------------
Change in fair values 1.2 2.3 -47% -4.6
--------------------------------------------------------------------------------
Depreciation and impairment of intangible and 0.7 0.8 -21% 3.4
tangible assets
--------------------------------------------------------------------------------
Share of profit from associated companies 0.0 0.5 - 0.8
--------------------------------------------------------------------------------
Sales gains and losses from intangible and 0.1 0.0 - 0.2
tangible assets
--------------------------------------------------------------------------------
Unwound cash flow hedging -3.9 - - -11.7
--------------------------------------------------------------------------------
Unwound fair value hedging -3.9 - - -1.3
--------------------------------------------------------------------------------
Change in provisions - - - 6.9
--------------------------------------------------------------------------------
Change in fair values of investment properties - - - 0.3
--------------------------------------------------------------------------------
Total -4.8 5.5 - 0.8
--------------------------------------------------------------------------------
The segments' operating profit
The Bank Group has three segments; Banking Business, Asset Management and
Miscellaneous.
Banking Business comprises Aktia Bank plc's branch office and corporate
functions as well as Treasury and the subsidiaries Aktia Real Estate Mortgage
Bank plc and Aktia Corporate Finance Ltd.
Asset Management comprises Aktia Bank plc's Private Banking and the
subsidiaries Aktia Asset Management Ltd, Aktia Fund Management Company Ltd and
Aktia Invest Ltd.
Miscellaneous comprises administration of Aktia Bank plc and return on equity.
Aktia plc, the parent company of Aktia Bank plc, has changed its division into
business segments as of 1 January 2013. Following the merger on 1 July 2013,
Aktia Bank plc will, as new parent company of the Aktia Group, apply
corresponding segment structure, comprising the segments Banking Business,
Asset Management & Life Insurance and Miscellaneous.
Operating profit
(EUR million) 1-3/2013 1-3/2012 ∆ %
-------------------------------------------
Banking Business 14.6 11.4 28%
-------------------------------------------
Asset Management 2.9 2.3 25%
-------------------------------------------
Miscellaneous -2.2 -0.5 -321%
-------------------------------------------
Eliminations 0.1 -0.8 -
-------------------------------------------
Total 15.4 12.4 24%
-------------------------------------------
Net interest income
(EUR million) 1-3/2013 1-3/2012 ∆ % 2012
-----------------------------------------------------------------------
Deposits and lending 10.4 15.3 -32% 55.1
-----------------------------------------------------------------------
Hedging, interest rate risk management 11.1 7.2 54% 30.8
-----------------------------------------------------------------------
Other 8.3 7.0 19% 30.6
-----------------------------------------------------------------------
Net interets income 29.8 29.5 1% 116.5
-----------------------------------------------------------------------
-----------------------------------------------------------------------
The impact of fixed rate investment is divided into two components consisting
of interest rate risk and credit risk. The interest rate risk component is
included in Hedging of interest rate risk whereas the credit risk component is
booked as a part of Other net interest income.
Credit stock
Chart 1. Credit stock by sector
(EUR million) 31.3.2013 31.12.2012 ∆ Share, %
--------------------------------------------------------------
Households 6,177 6,222 -45 86.0%
--------------------------------------------------------------
Corporate 696 713 -17 9.7%
--------------------------------------------------------------
Housing associations 264 270 -7 3.7%
--------------------------------------------------------------
Non-profit organisations 39 39 0 0.5%
--------------------------------------------------------------
Public sector entities 4 4 0 0.1%
--------------------------------------------------------------
Total 7,179 7,248 -69 100.0%
--------------------------------------------------------------
Chart 2. Cross loans and 31.3.2013 31.12.2012 30.9.2012 30.6.2012 31.3.2012
write-downs
(EUR million)
--------------------------------------------------------------------------------
Gross loans 7,245 7,313 7,365 7,334 7,303
--------------------------------------------------------------------------------
Individual write-downs -51 -50 -48 -50 -50
--------------------------------------------------------------------------------
Of which made to -41 -40 -39 -42 -43
non-performing loans
past due at least 90
days
--------------------------------------------------------------------------------
Of which made to other -9 -10 -8 -8 -7
loans
--------------------------------------------------------------------------------
Write-downs by group -15 -15 -16 -14 -14
--------------------------------------------------------------------------------
Net loans, balance 7,179 7,248 7,301 7,270 7,240
amount
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total write-downs on credits amounted to 0.02 (0.03)% of total lending for the
period. The corresponding impact on corporate loans amounted to
0.2 (0.2)% of the total corporate lending.
Chart 3. Undischarged debts by time overdue
(EUR million) 31.3.2013 % of stock 31.12.2012 % of stock
Days
------------------------------------------------------------------
3-30 137 1.90 133 1,83
------------------------------------------------------------------
of which households 119 1.65 117 1,61
------------------------------------------------------------------
------------------------------------------------------------------
31-89 49 0.68 51 0,71
------------------------------------------------------------------
of which households 36 0.50 42 0,58
------------------------------------------------------------------
------------------------------------------------------------------
90- * 45 0.63 50 0,68
------------------------------------------------------------------
of which households 30 0.42 33 0,45
------------------------------------------------------------------
* in Aktia Bank, fair value of collateral covers 96% of debts
Specification of the fund at fair value
(EUR million) 31.3.2013 31.12.2012 ∆
---------------------------------------------------------------
Shares and participations 3.6 3.6 0.0
---------------------------------------------------------------
Direct interest-bearing securities 41.6 42.0 -0.4
---------------------------------------------------------------
Cash flow hedging 13.0 16.2 -3.3
---------------------------------------------------------------
Fund at fair value, total 58.2 61.9 -3.7
---------------------------------------------------------------
The Bank Group's liquidity portfolio
The Bank Group's liquidity portfolio and other interest-bearing investments
Aktia Goverment Covered Financial Corporate Real
Alternativ Listed Total
Bank and Govt. Bonds (CB) institutio bonds estate e
Equity
Group quaranteed ns exkl.
investment
CB s
--------------------------------------------------------------------------------
--------------------------
3/13 2012 3/13 2012 3/13 2012 3/13 2012 3/13 2012 3/13
2012 3/13 2012 3/13 2012
--------------------------------------------------------------------------------
--------------------------
EU AAA 62 75 826 798 287 226 56 - - - -
- - - 1,280 1,098
--------------------------------------------------------------------------------
--------------------------
Finlan 46 59 116 117 92 43 56 - - - -
- - - 310 218
d
--------------------------------------------------------------------------------
--------------------------
Other 16 16 710 681 244 182 - - - - -
- - - 971 880
AAA-c
ountri
es
--------------------------------------------------------------------------------
--------------------------
EU < - - 349 443 60 5 - - - - -
- - - 409 448
AAA
--------------------------------------------------------------------------------
--------------------------
France - - 291 270 60 5 - - - - -
- - - 351 275
*)
--------------------------------------------------------------------------------
--------------------------
Belgiu - - - - - - - - - - -
- - - - -
m
--------------------------------------------------------------------------------
--------------------------
Greece - - - - - - - - - - -
- - - - -
--------------------------------------------------------------------------------
--------------------------
Irelan - - 10 16 - - - - - - -
- - - 10 16
d
--------------------------------------------------------------------------------
--------------------------
Italy - - 48 47 - - - - - - -
- - - 48 47
--------------------------------------------------------------------------------
--------------------------
Portug - - - 56 - - - - - - -
- - - - 56
al
--------------------------------------------------------------------------------
--------------------------
Spain - - - 54 - - - - - - -
- - - - 54
--------------------------------------------------------------------------------
--------------------------
Other - - - - - - - - - - -
- - - - -
count
ries
--------------------------------------------------------------------------------
--------------------------
Europe - - 214 238 17 20 - - - - -
- - - 231 258
exclu
ding
EU
--------------------------------------------------------------------------------
--------------------------
North - - 12 12 - - - - - -
- - - 12 12
Ameri
ca
--------------------------------------------------------------------------------
--------------------------
Other - - - - - - - - - -
- - - - -
OECD-
countr
ies
--------------------------------------------------------------------------------
--------------------------
Supern - - - - 111 45 - - - - -
- - - 111 45
ationa
ls
--------------------------------------------------------------------------------
--------------------------
Others - - - - - - - - - - -
- - - - -
--------------------------------------------------------------------------------
--------------------------
Total 62 75 1,401 1,490 524 297 56 - - - -
- - - 2,043 1,862
--------------------------------------------------------------------------------
--------------------------
* France fell below AAA during 2012
Rating distribution for banking business' liquidity portfolio
31.3.2013 31.12.2012
-------------------------------------------------------
(EUR million) 2,043 1,862
-------------------------------------------------------
Aaa 59.9% 64.5%
-------------------------------------------------------
Aa1-Aa3 19.5% 19.1%
-------------------------------------------------------
A1-A3 15.9% 8.9%
-------------------------------------------------------
Baa1-Baa3 0.8% 3.7%
-------------------------------------------------------
Ba1-Ba3 0.5% 1.5%
-------------------------------------------------------
B1-B3 0.0% 0.0%
-------------------------------------------------------
Caa1 or lower 0.0% 0.0%
-------------------------------------------------------
Finnish municipalities (unrated) 1.4% 2.2%
-------------------------------------------------------
No rating 2.1% 0.0%
-------------------------------------------------------
Total 100.0% 100.0%
-------------------------------------------------------
--------------------------------------------------------
The Bank Group's capital adequacy
Capital adequacy 31.3.2013 31.12.2012
------------------------------------------------------
Bank Group
------------------------------------------------------
Capital adequacy 20.0% 20.2%
------------------------------------------------------
Tier 1 ratio 11.7% 11.8%
------------------------------------------------------
Aktia Bank
------------------------------------------------------
Capital adequacy 26.9% 28.1%
------------------------------------------------------
Tier 1 ratio 15.5% 16.1%
------------------------------------------------------
Aktia Real Estate Mortgage Bank
------------------------------------------------------
Capital adequacy 11.7% 11.3%
------------------------------------------------------
Tier 1 ratio 10.1% 9.7%
------------------------------------------------------
Risk exposures for Bank Group
--------------------------------------------------------------------------------
-
--------------------------------------------------------------------------------
Consolidated capital adequacy for
Bank Group
--------------------------------------------------------------------------------
Summary (EUR million) 3/2013 12/2012 9/2012 6/2012 3/2012
--------------------------------------------------------------------------------
Tier 1 capital 432.0 426.4 440.4 437.9 427.1
--------------------------------------------------------------------------------
Tier 2 capital 306.2 303.8 302.1 268.0 254.5
--------------------------------------------------------------------------------
Capital base 738.2 730.2 742.5 705.9 681.6
--------------------------------------------------------------------------------
Risk-weighted amount for credit and 3,321.4 3,248.9 3,355.6 3,369.6 3,395.0
counterpart risks
--------------------------------------------------------------------------------
Risk-weighted amount for market - - - - -
risks 1)
--------------------------------------------------------------------------------
Risk-weighted amount for 362.3 362.3 372.3 372.3 372.3
operational risks
--------------------------------------------------------------------------------
Risk-weighted commitments 3,683.7 3,611.2 3,727.9 3,742.0 3,767.3
--------------------------------------------------------------------------------
Capital adequacy ratio, % 20.0 20.2 19.9 18.9 18.1
--------------------------------------------------------------------------------
Tier 1 Capital ratio, % 11.7 11.8 11.8 11.7 11.3
--------------------------------------------------------------------------------
Minimum capital requirement 294.7 288.9 298.2 299.4 301.4
--------------------------------------------------------------------------------
Capital buffer (difference between 443.5 441.3 444.3 406.5 380.2
capital base and minimum
requirement)
--------------------------------------------------------------------------------
1) No capital requirement due to minor trading book and when total of net
currency positions are less than 2% of capital base.
--------------------------------------------------------------------------------
-
(EUR million) 3/2013 12/2012 9/2012 6/2012 3/2012
--------------------------------------------------------------------------------
Share capital 163.0 163.0 163.0 163.0 163.0
--------------------------------------------------------------------------------
Funds 74.6 74.6 74.6 74.6 74.5
--------------------------------------------------------------------------------
Non-controlling interest 65.1 64.8 64.8 64.0 58.3
--------------------------------------------------------------------------------
Retained earnings 96.0 100.9 100.9 100.9 100.0
--------------------------------------------------------------------------------
Profit for the period 11.7 23.4 25.3 18.4 8.8
--------------------------------------------------------------------------------
./. provision for dividends to -6.2 -28.3 -15.9 -10.6 -5.3
shareholders
--------------------------------------------------------------------------------
Capital loan 30.0 30.0 30.0 30.0 30.0
--------------------------------------------------------------------------------
Total 434.2 428.4 442.8 440.3 429.3
--------------------------------------------------------------------------------
./. intangible assets -2.2 -2.0 -2.3 -2.4 -2.2
--------------------------------------------------------------------------------
Tier 1 capital 432.0 426.4 440.4 437.9 427.1
--------------------------------------------------------------------------------
Fund at fair value 45.2 45.6 36.9 4.4 2.9
--------------------------------------------------------------------------------
Upper Tier 2 loans 45.0 45.0 45.0 45.0 45.0
--------------------------------------------------------------------------------
Lower Tier 2 loans 216.0 213.2 220.2 218.6 206.6
--------------------------------------------------------------------------------
Tier 2 capital 306.2 303.8 302.1 268.0 254.5
--------------------------------------------------------------------------------
Total capital base 738.2 730.2 742.5 705.9 681.6
--------------------------------------------------------------------------------
Credit and counterparty risks
--------------------------------------------------------------------------------
Total exposures 3/2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Risk-weight Balance Off-balance Total
assets sheet
commitments
--------------------------------------------------------------------------------
0 % 1,008.1 22.8 1,030.9
--------------------------------------------------------------------------------
10 % 1,188.9 - 1,188.9
--------------------------------------------------------------------------------
20 % 808.2 129.6 937.8
--------------------------------------------------------------------------------
35 % 5,726.0 54.6 5,780.6
--------------------------------------------------------------------------------
50 % 0.1 - 0.1
--------------------------------------------------------------------------------
75 % 534.5 87.7 622.2
--------------------------------------------------------------------------------
100 % 548.1 36.2 584.4
--------------------------------------------------------------------------------
150 % 13.6 0.6 14.2
--------------------------------------------------------------------------------
Total 9,827.4 331.5 10,159.0
--------------------------------------------------------------------------------
Derivatives *) 310.6 - 310.6
--------------------------------------------------------------------------------
Total 10,138.0 331.5 10,469.5
--------------------------------------------------------------------------------
*) derivative agreements credit
conversion factor
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Risk-weighted exposures (EUR million)
--------------------------------------------------------------------------------
Risk-weight 3/2013 12/2012 9/2012 6/2012 3/2012
--------------------------------------------------------------------------------
0 % - - - - -
--------------------------------------------------------------------------------
10 % 118.9 125.5 133.6 120.8 125.6
--------------------------------------------------------------------------------
20 % 167.2 120.3 145.6 155.5 163.9
--------------------------------------------------------------------------------
35 % 2,011.7 2,025.2 2,023.4 2,008.1 1,990.4
--------------------------------------------------------------------------------
50 % 0.0 0.1 0.3 0.3 0.3
--------------------------------------------------------------------------------
75 % 418.1 428.9 437.9 439.9 437.2
--------------------------------------------------------------------------------
100 % 565.8 502.5 567.8 590.0 614.5
--------------------------------------------------------------------------------
150 % 20.9 25.9 20.3 28.5 35.3
--------------------------------------------------------------------------------
Total 3,302.5 3,228.3 3,328.8 3,343.2 3,367.3
--------------------------------------------------------------------------------
Derivatives *) 19.0 20.6 26.8 26.5 27.7
--------------------------------------------------------------------------------
Total 3,321.4 3,248.9 3,355.6 3,369.6 3,395.0
--------------------------------------------------------------------------------
*) derivative agreements credit
conversion factor
--------------------------------------------------------------------------------
In capital adequacy measurement to determine the exposure's risk weight, Aktia
applies credit rating by Moody's Investors Service or Standard & Poor's to
receivables from central goverments and central banks, credit institutions,
investment firms, corporates and covered bonds. The risk weight for bank
exposures and bonds secured by real estate is determined by the credit rating
of the country where the institution is located.
--------------------------------------------------------------------------------
-
Risk-weighted amounts for operational
risks
--------------------------------------------------------------------------------
2012 2011 2010 3/2013 12/201 9/2012 6/2012 3/2012
2
--------------------------------------------------------------------------------
Gross income 183.3 187.8 208.5
--------------------------------------------------------------------------------
- average 3 years 193.2
--------------------------------------------------------------------------------
Capital requirement 29.0 29.0 29.8 29.8 29.8
for operational
risk
--------------------------------------------------------------------------------
Risk-weighted 362.3 362.3 372.3 372.3 372.3
amount
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The capital requirement for operational risk is 15% of average gross
income during the last three years.
The risk-weighted amount is calculated by dividing the capital
requirement by 8%.
--------------------------------------------------------------------------------
Derivatives and off-balance sheet commitments
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Derivative instruments at 31 March Assets, fair Liabilities,
2013 (EUR million) value fair value
-------------------------------------------------------------------------------- Total nominal
amount
---------------------------------------------------
Hedging derivative instruments
------------------------------------
--------------------------------------------------------------------------------
Fair value hedging
--------------------------------------------------------------------------------
Interet rate-related 2,760.0 133.2 25.4
--------------------------------------------------------------------------------
Total 2,760.0 133.2 25.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow hedging
--------------------------------------------------------------------------------
Interest rate-related 75.0 0.2 -
--------------------------------------------------------------------------------
Total 75.0 0.2 -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Derivative instruments valued via
the income statement
--------------------------------------------------------------------------------
Interest rate-related *) 4,003.8 134.3 133.4
--------------------------------------------------------------------------------
Currency-related 43.9 0.9 0.5
--------------------------------------------------------------------------------
Equity-related **) 77.5 2.3 2.3
--------------------------------------------------------------------------------
Other derivative instruments **) 20.8 0.0 0.0
--------------------------------------------------------------------------------
Total 4,146.0 137.4 136.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total derivative instruments
--------------------------------------------------------------------------------
Interest rate-related 6,838.8 267.6 158.8
--------------------------------------------------------------------------------
Currency-related 43.9 0.9 0.5
--------------------------------------------------------------------------------
Equity-related 77.5 2.3 2.3
--------------------------------------------------------------------------------
Other derivative instruments 20.8 0.0 0.0
--------------------------------------------------------------------------------
Total 6,981.0 270.8 161.6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Derivative instruments at 31
December 2012 (EUR million)
--------------------------------------------------------------------------------
Total nominal Assets, fair Liabilities,
amount value fair value
--------------------------------------------------------------------------------
Hedging derivative instruments
------------------------------------
--------------------------------------------------------------------------------
Fair value hedging
--------------------------------------------------------------------------------
Interest rate-related 2,837.0 149.8 34.3
--------------------------------------------------------------------------------
Total 2,837.0 149.8 34.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow hedging
--------------------------------------------------------------------------------
Interest rate-related 75.0 0.1 -
--------------------------------------------------------------------------------
Total 75.0 0.1 -
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Derivative instruments valued via
the income statement
--------------------------------------------------------------------------------
Interest rate-related *) 4,280.1 150.0 149.1
--------------------------------------------------------------------------------
Currency-related 55.6 0.6 1.3
--------------------------------------------------------------------------------
Equity-related **) 102.2 1.7 1.7
--------------------------------------------------------------------------------
Other derivative instruments **) 20.8 0.1 0.1
--------------------------------------------------------------------------------
Total 4,458.6 152.4 152.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total derivative instruments
--------------------------------------------------------------------------------
Interest rate-related 7,192.1 299.8 183.4
--------------------------------------------------------------------------------
Currency-related 55.6 0.6 1.3
--------------------------------------------------------------------------------
Equity-related 102.2 1.7 1.7
--------------------------------------------------------------------------------
Other derivative instruments 20.8 0.1 0.1
--------------------------------------------------------------------------------
Total 7,370.6 302.2 186.4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
*) Interest-linked derivatives include interest rate hedging
provided for local banks which after back-to-back hedging with
third parties amounted to EUR 3,934.0 (4,210.0) million.
--------------------------------------------------------------------------------
**) All equity-related and other derivative instruments relate
to the hedging of structured debt products.
--------------------------------------------------------------------------------
Off-balance sheet commitments
--------------------------------------------------------------------------------
(EUR million) 31.3.2013 31.12.2012 31.3.2012
--------------------------------------------------------------------------------
Commitments provided to a third party on
behalf of the customers
--------------------------------------------------------------------------------
Guarantees 34.0 34.6 41.2
--------------------------------------------------------------------------------
Other commitments provided to a third party 2.5 3.4 6.2
--------------------------------------------------------------------------------
Irrevocable commitments provided on behalf of
customers
--------------------------------------------------------------------------------
Unused credit arrangements 295.0 307.6 410.6
--------------------------------------------------------------------------------
Off-balance sheet commitments 331.5 345.5 458.0
--------------------------------------------------------------------------------
Outlook
Aktia Bank is striving to grow slightly more than the market in the sectors
focusing on private customers and small companies.
Aktia' Banks plan of action includes several individual measures and will be
realised in steps with the aim of reaching the financial objectives for 2015.
Aktia Bank's aim is to improve competitiveness and to become the Finnish
champion of customer services in selected customer segments. Aktia Bank will
continue to strive for efficient and customer-friendly service, and to provide
financial solutions for households, business owners, small companies and
institutions.
Write-downs on credits are expected to be at the same level as in 2012.
In accordance with the decision taken by the Annual General Meeting of Aktia
plc on 9 April 2013, a merger of Aktia plc and Aktia Bank plc is planned on 1
July 2013. Thus Aktia Bank plc becomes the new listed parent company of Aktia
Group. As new parent company of the Group Aktia Bank plc will have the same
outlook as the present parent company Aktia plc. That is “despite the probably
persistent low interest rate level and one-off costs from implementing the
2015 plan of action, the Group's operating profit from continuing operations
for 2013 is expected to reach approximately the 2012 level”.
In 2012, Aktia Group's operating profit from continuing operations amounted to
EUR 56.0 million.
Risks
Aktia's financial results are affected by many factors, of which the most
important are the general economic situation, fluctuations in share prices,
interest rates and exchange rates, and the competitive situation. The demand
for banking, insurance, asset management and real estate agency services can be
changed by these factors.
Changes in interest rates, yield curves and credit margins are hard to predict
and can affect Aktia's interest margins and thus profitability. Aktia is
pursuing proactive management of interest rate risks.
Any future write-downs of loans in Aktia's loan portfolio could be due to many
factors, of which the most important are the general economic situation,
interest rates, the level of unemployment and changes in house prices.
The availability of liquidity on the money markets is important for Aktia's
refinancing activities. Like other banks, Aktia relies on deposits from
households to service some of its liquidity needs.
The market value of Aktia's financial and other assets can change, among other
things as a result of requirements among investors for higher returns.
The financial crisis has resulted in many new initiatives for regulating
banking and insurance businesses, which have brought uncertainty concerning
future equity and liquidity requirements. The results of the new regulations
are likely to be higher capital requirements, sharpened competition for
deposits, higher demands on long-term financing, higher fixed costs and,
eventually, higher credit margins.
The figures presented in this stock exchange release are unrevised.
Helsinki 7 May 2013
AKTIA BANK PLC
Board of Directors
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