2007-04-25 08:03:14 CEST
2007-04-25 08:03:14 CEST
REGULATED INFORMATION
eQ - Quarterly report
eQ's INTERIM REPORT 1-3/2007
eQ's INTERIM REPORT 1-3/2007
(Translation from Finnish language original)
SUMMARY
January - March 2007:
- Net revenues EUR 13.0 million (EUR 11.8 million)
- Operating profit EUR 4.5 million (EUR 4.6 million)
- Earnings per share EUR 0.10 (EUR 0.14)
eQ Group's net revenues continued to increase during the first quarter of 2007.
The consolidated net revenues of eQ increased by 10 per cent compared to the
previous year. The growth was strongest in Asset management (+24 %) and in
Hosting (+22 %) services. The operating profit remained on the same level than
in the previous year.
eQ GROUP, KEY FIGURES
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| (EUR 1 000) | Q1/07 | Q1/06 | Change | 2006 |
| | | | y-on-y | |
--------------------------------------------------------------------------------
| Net revenues from financial | 1 754 | 1 012 | 73 % | 5 312 |
| operations | | | | |
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| Net commission income | 8 945 | 9 146 | -2 % | 37 233 |
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| Other income | 2 261 | 1 648 | 37 % | 5 740 |
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| Net revenues in total | 12 960 | 11 807 | 10 % | 48 285 |
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| Operating profit | 4 521 | 4 590 | -1 % | 18 720 |
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| Earnings/share EUR | 0.10 | 0.14 | -28 % | 0.50 |
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Operating profit by business area
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| (EUR 1 000) | Q1/07 | Q1/06 | Change | 2006 |
| | | | y-on-y | |
--------------------------------------------------------------------------------
| Securities Brokerage | 2 001 | 1 334 | 50 % | 3 445 |
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| Asset management | 1 695 | 1 822 | -7 % | 4 755 |
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| Corporate Finance | 800 | 1 339 | -40 % | 10 464 |
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| Hosting | 25 | 95 | -74 % | 56 |
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OPERATING ENVIRONMENT
Year 2007 has started favourably when considering the economic markets. The
price correction in the equity markets in February - March was only temporary
and it did not have a strong influence on eQ Group's consolidated net revenues
or profitability. Trading activity on the Helsinki Stock Exchange was clearly
livelier compared to the previous year and the domestic fund capital continued
to increase. In corporate finance, the M&A markets continued to be active during
the first quarter.
INCOME AND PROFIT
During the first quarter of 2007 eQ Group's net revenues increased by 10 per
cent. Bearing in mind that the growth during Q1 of 2006 was some 41 per cent,
the achieved growth is very satisfactory. The increase in net revenues is due to
several facts. A significant part of the increase in net revenues is due the
acquisition of Fides Asset Management carried out in December 2006.
Additionally, the increase in number of customers, assets under management,
deposits and loans had a positive effect on the growth. In corporate finance,
the net revenues were, as expected, lower than in January-March 2006 and had a
decreasing effect on the total income. According to our statements, the unit's
performance can fluctuate significantly between quarters.
eQ Group's costs during January - March 2007 increased approximately by 17 %
compared to the previous year. The main reasons for the higher cost level were
the increase in personnel by 16 per cent and the strong marketing efforts during
the period. Marketing costs were largely paid upfront and therefore, their share
relative to other costs is expected decrease during the rest of the year.
Despite the increase in costs, the operating profit for the period was EUR 4.5
million and the operating profit margin 35 %, which is satisfactory.
At the end of March 2007 eQ had approximately 47 600 customers, which is
9 per cent more compared to the previous year.
The group balance sheet is still strong: the shareholders' equity at the end of
March was EUR 63.6 million, taking into account the dividend distribution of EUR
13.5 million decided on March 30, 2007, and the consolidated capital adequacy
ratio 13.7 %.
BUSINESSES
Securities Brokerage services
Key figures
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| (EUR 1 000) | Q1/07 | Q1/06 | Change | 2006 |
| | | | y-on-y | |
--------------------------------------------------------------------------------
| Net revenues | 5 635 | 5 072 | 11 % | 16 835 |
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| Operating profit | 2 001 | 1 334 | 50 % | 3 445 |
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| Personnel | 36 | 37 | -3 % | 38 |
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The net revenues of securities brokerage services increased to EUR 5.6 million,
which is an increase of 11 % compared to the same period last year. The increase
was influenced by a favourable development in the equity market. The costs were
3 % lower than on the previous year due to rationalisations carried out in 2006.
The increase in net revenues and decrease in costs had a positive effect on the
operating profit totalling EUR 2.0 million, an increase by 50 % compared to the
previous year.
eQ Bank's share of trades executed on the Helsinki Stock Exchange in January -
March was 5.2 % and the share of the Euro volume was 3.6 %.
During the reporting period eQ continued to develop online trading services by
launching new internet pages and by offering a wider selection of order types
than earlier.
Asset management services
Key figures
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| (EUR 1 000) | Q1/07 | Q1/06 | Change | 2006 |
| | | | y-on-y | |
--------------------------------------------------------------------------------
| Net revenues | 5 133 | 4 138 | 24 % | 14 433 |
--------------------------------------------------------------------------------
| Operating profit | 1 695 | 1 822 | -7 % | 4 755 |
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| Personnel | 43 | 25 | 72 % | 30 |
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| Assets under management, | 1 740 | 861 | 102 % | 1 526 |
| meur | | | | |
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| Deposits, meur | 460 | 396 | 16 % | 437 |
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| Loans, meur | 62 | 43 | 44 % | 57 |
--------------------------------------------------------------------------------
eQ Bank's assets under management include deposits, discretionary asset
management and mutual funds. Discretionary asset management and mutual funds
include partly the same funds.
The net revenues of asset management services had a strong increase to EUR 5.1
million, which means an increase of approximately 24 per cent compared to the
previous year. The operating profit was EUR 1.7 million. The increase in net
revenues was mainly due to the following facts; the acquisition of Fides Asset
Management carried out in December 2006, the increased number of customers and
the increase in assets under management. eQ's assets under management (including
deposits) increased by 102 per cent compared to the previous year totalling EUR
1.7 billion. The efforts on asset management services, increased number of
personnel, Fides acquisition and intensified marketing actions have increased
costs, as expected. However, the marketing costs are expected to decrease
relatively during 2007. Due to the above mentioned efforts the operating profit,
EUR 1.7 million, was 7 % lower compared to the previous year.
In March the administration of Fides Fund management company's funds was
transferred to eQ Fund management company. This provides the customers of eQ
with an exclusive and diversified fund portfolio.
During the quarter eQ acquired 19 per cent of the investment services company
Ilmatar Asset Management Oy.
Corporate Finance services
Key figures
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| (EUR 1 000) | Q1/07 | Q1/06 | Change | 2006 |
| | | | y-on-y | |
--------------------------------------------------------------------------------
| Net revenues | 1 366 | 1 882 | -27 % | 14 220 |
--------------------------------------------------------------------------------
| Operating profit | 800 | 1 339 | -40 % | 10 464 |
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| Personnel | 14 | 12 | 17 % | 12 |
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eQ Bank's Advium Corporate Finance unit has acted as a financial advisor in five
transactions, which have been closed during January - March 2007.
Advium acted as a financial advisor when Konecranes sold six real estates in
Hyvinkää and Hämeenlinna to Swedish AB Sagax, and as an advisor to the sellers
when Midinvest Management and the other owners of Komas sold Komas to funds
managed by CapMan. Advium also acted as an advisor to Birka Line and provided a
fairness opinion with the Board of the company after Rederiaktiebolaget Eckerö
had made an initial public offering of the company.
The amount of personnel in Advium has grown and the number of specialists at the
end of March was 14.
Due to the fact that success fees play an important role in corporate finance
business, the unit's performance can fluctuate significantly between quarters.
Hosting services
Key figures
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| (EUR 1 000) | Q1/07 | Q1/06 | Change | 2006 |
| | | | y-on-y | |
--------------------------------------------------------------------------------
| Net revenues | 1 130 | 924 | 22 % | 4 121 |
--------------------------------------------------------------------------------
| External revenues | 826 | 715 | 16 % | 2 797 |
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| Internal revenues | 304 | 209 | 45 % | 1 324 |
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| Operating profit | 25 | 95 | -74 % | 56 |
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| Personnel | 17 | 16 | 6 % | 15 |
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The net revenues of hosting services during January - March 2007 had an increase
of 22 per cent totalling EUR 1.1 million. The growth in net revenues was mainly
due to succesful new customer business. The major investments in the second data
centre in 2006 and a credit loss associated with one single customer decreased
the profitability of Xenetic. The availability of the second data centre and new
IT infrastructure has been 100 per cent.
INVESTMENTS
eQ Group's investments in January - March totalled EUR 0.8 million, of which EUR
0.4 million were directed to tangible assets (EUR 1.5 million, of which EUR 1.3
million were directed to tangible assets in 1-3/2006).
CAPITAL ADEQUACY
At the end of March 2007 the group capital adequacy ratio was 13.7 %.
The profit for the first quarter has not been included in Tier 1 capital.
The Capital adequacy ratio at 31.3.2007 is calculated by the BASEL II code.
PERSONNEL
At the end of March eQ Group had 167 employees (144 at the end of March 2006).
The head count consists of staff working permanently or for a fixed term of at
least six months.
ANNUAL GENERAL MEETING
The Annual General Meeting of eQ Corporation was held on March 30, 2007. The
meeting confirmed the company's and consolidated accounts for 2006 and released
the company's Board of Directors and the CEO of liability for the accounts. The
Annual General Meeting confirmed that a dividend of EUR 0.40 per share, a total
of EUR 13,485,379.60 will be distributed for the fiscal year 2006 with the
number of share on the date of the AGM. The dividend was be paid on April 13,
2007.
The Annual General Meeting re-elected the following members to the Board of
Directors: Georg J.C. Ehrnrooth, Timo Everi, Johan Horelli, Antti Pankakoski,
Miika Varjovaara and Petteri Walldén. The Annual General Meeting confirmed that
the Chairman of the Board of Directors will receive a fee of EUR 25,000 for the
year the members of the Board of Directors a fee of EUR 20,000. KPMG Oy Ab will
continue as the company's auditor and Sixten Nyman as the auditor with principal
responsibility.
Board's Authorizations
Authorization to resolve on acquiring the Company's own shares
The Annual General Meeting authorised the Board of Directors to decide on the
repurchase of up to 1,000,000 own shares taking, however, into account the
provisions of the Finnish Companies Act on the maximum amount of own shares
held by a company. The maximum number of shares to be repurchased is 3 per cent
of all shares of the company.
The shares can be repurchased in one or several instalments deviating from the
proportion of shares owned by the shareholders by using funds in the
unrestricted free equity. The purchase price of the shares will be based on
the fair value of the repurchase date formed in public trading.
The shares can be repurchased in order to use them as consideration in possible
business acquisitions or other arrangements belonging to the company's
business, to finance investments, as a part of the company's incentive system,
to develop the company's capital structure, or to be held by the company or to
be otherwise further conveyed or invalidated.
The authorisation will be valid until the end of the next Annual General
Meeting; however, not longer than until June 30, 2008.
Authorisation to issue shares and granting of option rights and other special
rights entitling to the shares
The Annual General Meeting authorised the Board of Directors to decide on the
issuance of new shares in one or several instalments, to convey own shares in
the company's possession and to grant option rights and special rights pursuant
to chapter 10, section 1 of the Finnish Companies Act so that the aggregate
maximum number of shares granted on the basis of the authorisation will be
6,700,000 shares.
The authorisation is proposed to be used for financing or implementing possible
business acquisitions or other arrangements or investments belonging to the
company's business, for implementing the company's incentive scheme or for
other purposes determined by the Board of Directors.
The authorisation is proposed to contain the Board of Directors' right to
resolve on all terms and conditions regarding a share issue and granting of
option rights and special rights pursuant to chapter 10, section 1 of the
Finnish Companies Act. Thus, the authorisation includes also the right for
direct issue of shares, option rights or special rights in deviation from the
shareholders' pre-emptive subscription right on the terms and conditions
prescribed by law and the right to resolve on a issue free of charge to the
company itself taking, how-ever, into account the provisions of the Finnish
Companies Act concerning the maximum number of own share in the possession of a
company.
The authorisation is valid for two years from the resolution of the General
Meeting of Shareholders.
Amendment of Articles of Association
The Annual General Meeting approved the proposed amendments to the Articles of
Association necessitated by amendments to the Finnish Companies Act and by
other technical reasons. The Articles of Association approved by the Annual
General Meeting was published in stock exchange release on 30 March 2007.
The Annual General Meeting approved the proposed amendments to the 2004 option
Programme.
At its organisational meeting, the Board re-elected Georg J.C. Ehrnrooth as
Chairman and Johan Horelli as Vice Chairman.
SHARES AND SHARE CAPITAL
At the end of March 2007 the consolidated shareholders' equity was EUR 63.6
million and the share capital was EUR 5 731 286.33 divided over 33 713 449
shares. The weighted average number of shares during the review period was
33 713 449. Equity per share was EUR 1.89. eQ Corporation had 8 318 shareholders
on March 31, 2007.
During January - March 2007 the highest share price (quoted) on the Helsinki
Stock Exchange was EUR 5.89 and the lowest EUR 4.68. At the end of the period
eQ's share price was EUR 5.89 and the market capitalisation EUR 198.6 million.
A total amount of 4 301 638 shares, representing 12.8 % of the company's shares
and corresponding to a turnover of EUR 23 458 827 were traded during the period.
OPTION PROGRAMMES
The Company had one on-going option programme during the period: Option
programme 2004.
The option programme 2004 is divided into two series. A total of 480 000 options
have been granted based on the option programme 2004A-series (maximum dilution
effect 1.4 %). Any options based on the B-series have not been granted.
The subscription period for the shares with the option programme of 2004 began
on January 1, 2007 and will end on March 31, 2008. The subscription price for
one 2004A-series option is EUR 2.20 per share.
RISKS
eQ Corporation's main risks are classified as credit risks, market risks,
operational risks and business risks.
eQ Bank´s credit risk is limited through measures such as real-time purchasing
power processing, counterparty limits and well-defined credit granting process.
Also, the bank primarily grants credit only against collateral. During the
reporting period there were no credit losses. Market risk refers to the risk of
loss resulting form changes in interest rates, equity prices or exchange rates.
Market risks are managed by trading limits, which are supervised by independent
risk management unit on daily basis.
Interest rate risk within eQ Bank's customer business is minor because most
deposits and lending have equal interest rate bindings. Interest rate risk is
monitored through sensitivity of net interest income to changes in the interest
rate level. The company's Board of Directors and CEO confirm the maximum limits
for interest rate risk. Treasury unit is also responsible for ensuring
corporations liquidity and banks funding and also for the management of the
credit risk, currency risk and counterpart risk. Treasury operates as an
internal bank and manages the group accounts and collateral.
Operational risks refer to the risk of loss resulting from factors such as
inadequate or failed internal processes, personnel, systems or external factors.
Operational risks are managed by measures such as developing internal processes,
ensuring sufficient guidance and using collateral and insurance policies. Each
business unit has made a contingency plan to ensure that the operations critical
for business can be carried out regardless of external factors. The earnings
impact of operational risks during the period has been minor.
OUTLOOK
The revenues of the eQ Group as well as the profitability are very sensitive to
the development of the equity and fixed income markets. In corporate finance
business the revenues are highly dependent on receiving success fees as well as
the timing of those. Due to these reasons the financial performance of eQ Group
may fluctuate significantly between quarters.
eQ's operating environment has developed favourably at the beginning of the
second quarter of 2007. If this trend continues, it is likely, that the net
revenues and operating profit of securities brokerage and asset management
services remain in a good level. In corporate finance, the number of mandates
has increased and consequently, the net revenues of second quarter are expected
to increase compared to the first quarter.
eQ Corporation
The Board
For further information:
Antti Mäkinen tel. +358 9 6817 8686
CEO mobile +358 50 561 1501
eQ Corporation e-mail antti.makinen@eQ.fi
The company hosts a presentation on the Interim report for the press and
analysts today at 13.30 at eQ's premises, Mannerheiminaukio 1A, 4th floor,
Helsinki. During this meeting CEO Antti Mäkinen will comment the Interim
report and performance. Welcome.
Distribution:
Helsinki Stock Exchange
Main media
www.eQ.fi
This first Interim Financial Report of the year 2007 does not include the
information of related parties provided with IAS 34 standard because there has
not been any essential changes compared to the financial statements of 2006.
From other partly it has been prepared according to the IAS standard 34 (interim
reports). The interim report has been prepared under the same principles as the
Financial Statements of 2006. The report is unaudited.
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| CONSOLIDATED BALANCE SHEET (IFRS) | 31.3.2007 | 31.3.2006 | 31.12.2006 |
--------------------------------------------------------------------------------
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| EUR 1000 | | | |
--------------------------------------------------------------------------------
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| ASSETS | | | |
--------------------------------------------------------------------------------
| Liquid assets | 54 | 37 | 40 |
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| Claims on credit institutions | 94 989 | 110 550 | 91 508 |
--------------------------------------------------------------------------------
| Financial assets held for trading | 207 995 | 79 444 | 189 188 |
--------------------------------------------------------------------------------
| Available-for-sale financial assets | 166 329 | 210 930 | 168 216 |
--------------------------------------------------------------------------------
| Claims on the public and public | 59 897 | 40 287 | 54 866 |
| sector entities | | | |
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| Investment in associates | 16 | 48 | 30 |
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| Intangible assets | 27 641 | 19 391 | 27 745 |
--------------------------------------------------------------------------------
| Tangible assets | 4 750 | 4 085 | 4 699 |
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| Other assets | 215 115 | 304 555 | 89 198 |
--------------------------------------------------------------------------------
| Deferred tax assets | 573 | 3 622 | 1 661 |
--------------------------------------------------------------------------------
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| TOTAL ASSETS | 777 359 | 772 950 | 627 150 |
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| EQUITY AN LIABILITIES | | | |
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| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Liabilities to credit institutions | 1 710 | 1 996 | 90 |
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| Liabilities to the public and public | 457 540 | 394 630 | 435 833 |
| sector entities | | | |
--------------------------------------------------------------------------------
| Derivative financial instruments and | 21 645 | 8 784 | 15 571 |
| other liabilities held for trading | | | |
--------------------------------------------------------------------------------
| Other liabilities | 231 824 | 305 653 | 101 018 |
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| Deferred tax liabilities | 1 023 | 779 | 993 |
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| TOTAL LIABILITIES | 713 741 | 711 842 | 553 505 |
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| EQUITY CAPITAL | | | |
--------------------------------------------------------------------------------
| Share capital | 5 731 | 5 678 | 5 731 |
--------------------------------------------------------------------------------
| Share premium account | 48 675 | 48 144 | 48 675 |
--------------------------------------------------------------------------------
| Reserve fund | 2 106 | 2 106 | 2 106 |
--------------------------------------------------------------------------------
| Fair value reserve | 103 | 164 | 0 |
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| Retained earnings | 7 002 | 4 925 | 17 131 |
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| Total equity attributable to equity | 63 618 | 61 018 | 73 644 |
| holders of the parent company | | | |
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| Minority interest | 0 | 90 | 0 |
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| TOTAL EQUITY | 63 618 | 61 108 | 73 644 |
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| TOTAL EQUITY AND LIABILITIES | 777 359 | 772 950 | 627 150 |
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| CONSOLIDATED PROFIT AND LOSS | 1.1. - | 1.1. - | 1.1. - |
| ACCOUNT (IFRS) | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| EUR 1000 | | | |
--------------------------------------------------------------------------------
| Interest income | 4 601 | 2 628 | 14 075 |
--------------------------------------------------------------------------------
| Interest expence | -2 847 | -1 615 | -8 762 |
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| Net interest income | 1 754 | 1 012 | 5 312 |
--------------------------------------------------------------------------------
| Fee and commission income | 11 177 | 11 317 | 43 293 |
--------------------------------------------------------------------------------
| Fee and commission expence | -2 232 | -2 171 | -6 059 |
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| Net fee and commission income | 8 945 | 9 146 | 37 233 |
--------------------------------------------------------------------------------
| Impairment of receivables | -25 | 2 | 10 |
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| Net income from financial assets | 1 368 | 942 | 2 393 |
| held for trading | | | |
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| Net income from available-for-sale | 24 | -44 | 377 |
| financial assets | | | |
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| Net income from foreign exchange | 13 | 23 | 59 |
| dealing | | | |
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| Other operating income | 881 | 726 | 2 901 |
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| Total income | 12 960 | 11 807 | 48 285 |
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| Administrative expenses | | | |
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| | Staff costs | -4 344 | -3 831 | -15 893 |
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| | Other administrative expenses | -2 840 | -2 408 | -9 360 |
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| Total administrative expenses | -7 184 | -6 239 | -25 252 |
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| Depreciation and write-downs on | | | |
| tangible | | | |
--------------------------------------------------------------------------------
| and intangible assets | -714 | -525 | -2 349 |
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| Other operating expenses | -527 | -424 | -1 917 |
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| Share of associated companies' | -14 | -29 | -47 |
| results | | | |
--------------------------------------------------------------------------------
| Net operating profit | 4 521 | 4 590 | 18 720 |
--------------------------------------------------------------------------------
| Income taxes | -1 199 | -28 | -2 007 |
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| Profit for the financial year | 3 323 | 4 562 | 16 713 |
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| Attributable to: | | | |
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| | Equity holders of the parent | 3 323 | 4 574 | 16 765 |
| | company | | | |
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| | Minority interests | 0 | -13 | -52 |
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| Earnings per share, eur | 0,10 | 0,14 | 0,50 |
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| Earnings per share, diluted, eur | 0,10 | 0,14 | 0,50 |
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| CONSOLIDATED CASH FLOW STATEMENT | 1.1. - | 1.1. - | 1.1. - |
| (IFRS) | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| Cash flow from operating | | | |
| activities | | | |
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| Net operating profit | 4 521 | 4 590 | 18 720 |
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| Adjustments: | 1 537 | -361 | 1 234 |
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| Change in working capital | -9 142 | -920 | 19 173 |
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| Income taxes paid | -49 | -19 | -44 |
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| Cash flow from operating | -3 133 | 3 290 | 39 083 |
| activities | | | |
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| Cash flow from investing | | | |
| activities | | | |
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| Investments in intangible and | -636 | -1 600 | -3 351 |
| tangible assets | | | |
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| Other investments | -182 | 0 | -164 |
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| Acquisitions of subsidiaries | 0 | 0 | -5 446 |
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| Cash flow from investing | -818 | -1 600 | -8 960 |
| activities | | | |
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| Cash flow from financing | | | |
| activities | | | |
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| Share issue | 0 | 0 | 585 |
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| Payment of dividend | 0 | 0 | -6 678 |
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| Cash flow from financing | 0 | 0 | -6 093 |
| activities | | | |
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| Change in cash and cash | | | |
| equivalents | | | |
--------------------------------------------------------------------------------
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| Cash and cash equivalents at Jan | -3 951 | 1 690 | 24 029 |
| 1. | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 48 575 | 24 546 | 24 546 |
| end of the period | | | |
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| Change in cash and cash | 44 624 | 26 236 | 48 575 |
| equivalents | | | |
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| STATEMENT OF CHANGES IN | | | | | | |
| EQUITY | | | | | | |
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| EUR 1000 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Share | Reserv | Fair | Accru | Minori | Total |
| | capita | premiu | e fund | value | ed | ty | |
| | l | m | | reserv | profi | intere | |
| | | accoun | | e | t | sts | |
| | | t | | | funds | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity capital | 5 731 | 48 675 | 2 106 | 0 |17 131 | 0 | 73 644 |
| 1.1.2007 | | | | | | | |
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| Financial | | | | 103 | | | 103 |
| instruments | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | 33 | | 33 |
| compensation | | | | | | | |
| plans | | | | | | | |
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| Distribution | | | | |-13 405| |-13 485 |
| of dividend | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 3 323 | | 3 323 |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity capital | 5 731 | 48 675 | 2 106 | 103 | 7 002 | 0 | 63 618 |
| 31.3.2007 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Share | Share | Reserv | Fair | Accru | Minori | Total |
| | capita | premiu | e fund | value | ed | ty | |
| | l | m | | reserv | profi | intere | |
| | | accoun | | e | t | sts | |
| | | t | | | funds | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity capital | 5 678 | 48 144 | 2 106 | 9 | 7 023 | 103 | 63 063 |
| 1.1.2006 | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subscription | 54 | 531 | | | | | 585 |
| with the | | | | | | | |
| option rights | | | | | | | |
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| Financial | | | | -9 | | | -9 |
| instruments | | | | | | | |
--------------------------------------------------------------------------------
| Equity | | | | | 23 | | 23 |
| compensation | | | | | | | |
| plans | | | | | | | |
--------------------------------------------------------------------------------
| Distribution | | | | |-6 679 | | -6 679 |
| of dividend | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | |16 765| -52 | 16 713 |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Minority | | | | | | -51 | -51 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity capital | 5 731 | 48 675 | 2 106 | 0 | 17 131| 0 | 73 644 |
| 31.12.2006 | | | | | | | |
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| QUARTERLY FINANCIAL PERFORMANCE | 1 - | 10 - | 7 - | 4 - | 1 - |
| | 3/2007| 12/2006| 9/2006| 6/2006 | 3/2006 |
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| EUR 1000 | | | | | |
--------------------------------------------------------------------------------
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| Interest income | 4 601 | 4 438 | 3 702 | 3 307 | 2 628 |
--------------------------------------------------------------------------------
| Interest expense | -2 847| -2 814 | -2 298| -2 036 | -1 615 |
| | | | | | |
--------------------------------------------------------------------------------
| Net interest income | 1 754 | 1 624 | 1 405 | 1 271 | 1 012 |
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| Net fee and commission income | 8 945 | 13 388 | 5 099 | 9 600 | 9 146 |
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| Impairment of receivables | -25 | 4 | 3 | 2 | 2 |
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| Net income from financial assets | 1 368 | 929 | 468 | 53 | 942 |
| held for trading | | | | | |
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| Net income from | 24 | 317 | 100 | 4 | -44 |
| available-for-sale financial | | | | | |
| assets | | | | | |
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| Net income from foreign exchange | 13 | 34 | 14 | -12 | 23 |
| dealing | | | | | |
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| Other operating income | 881 | 781 | 697 | 697 | 726 |
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| Total income |12 960 | 17 078 | 7 785 | 11 615 | 11 807 |
| | | | | | |
--------------------------------------------------------------------------------
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| Administrative expenses total |-7 184 | -7 889 |-4 802| -6 322 | -6 239 |
| | | | | | |
--------------------------------------------------------------------------------
| Depreciation and write-downs on | | | | | |
| tangible | | | | | |
--------------------------------------------------------------------------------
| and intangible assets | -714 | -635 | -605 | -584 | -525 |
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| Other operating expenses | -527 | -545 | -486 | -463 | -424 |
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| Share of associated companies' | -14 | -30 | -10 | 22 | -29 |
| results | | | | | |
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| Total expenses |-8 439 | -9 099 |-5 902 | -7 347 | -7 217 |
| | | | | | |
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| Net operating profit | 4 521 | 7 979 | 1 883 | 4 268 | 4 590 |
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| Income taxes |-1 199 | -1 938 | -12 | -28 | -28 |
| | | | | | |
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| Profit for the financial period | 3 322 | 6 041 | 1 871 | 4 240 | 4 562 |
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| Attributable to: | | | | | |
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| | Equity holders of the parent | 3 322 | 6 040 | 1 893 | 4 257 | 4 574 |
| | company | | | | | |
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| | Minority interests | 0 | 1 | -23 | -17 | -13 |
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| Earnings per share, quarterly, | 0,10 | 0,18 | 0,05 | 0,13 | 0,14 |
| eur | | | | | |
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| EUR 1000 | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| Own funds | | | |
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| | Original own funds | 31 850 | 34 682 | 30 813 |
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| | Additional funds, gross | 103 | 222 | 0 |
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| | Deductions | -183 | -58 | 0 |
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| Total own funds | 31 770 | 34 846 | 30 813 |
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| Capital requirement for credit | 9 155 | 11 734 | 8 408 |
| risks | | | |
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| Capital requrement for market risks | 4 339 | 4 326 | 4 636 |
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| Capital requirement for operational | 4 999 | - | - |
| risks | | | |
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| Capital adequacy ratio (%) | 13,7 | 17,4 | 18,9 |
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| The Capital adequacy ratio at 31.3.2007 is calculated by the BASEL II code. |
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| LEASE OBLIGATIONS | | | |
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| EUR 1000 | | | |
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| Irrevocable minimum lease obligations | | |
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| Operating leases | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| Operating lease obligations | | | |
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| In less than one year | 382 | 233 | 433 |
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| Between one and five years | 561 | 608 | 566 |
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| Total | 943 | 841 | 999 |
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| Premises lease obligations | | | |
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| In less than one year | 1 035 | 913 | 1 392 |
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| Between one and five years | 3 936 | 4 806 | 3 936 |
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| Total | 4 971 | 5 719 | 5 328 |
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| Financial leases | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| Minimum lease payments | | | |
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| In less than one year | 141 | 64 | 135 |
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| Between one and five years | 181 | 122 | 203 |
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| Total | 322 | 186 | 338 |
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| OFF-BALANCE SHEET COMMITMENTS | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| Credit limits not in use | 67 205 | 45 091 | 59 023 |
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| Contingent additional purchase price of Advium Partners Ltd. |
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| The Advium purchase (November 30th, 2004) included an agreement of |
| additional purchase price. At March 31th, 2007 an amount of MEUR 0.4 |
| non-recognised additional purchase price has been formed. The final |
| additional purchase price will be closed at the end of year 2007. |
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| GUARANTEES AND PLEDGES | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| On own behalf | | | |
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| Pledged securities | 94 863 | 83 869 | 106 766 |
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| Pledged claims on credit | 9 318 | 7 708 | 9 325 |
| institutions | | | |
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| Total | 104 181 | 91 577 | 116 091 |
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| DERIVATIVES | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| Values of underlying instruments | | | |
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| Interest rate derivatives | 4 930 | 5 504 | 5 441 |
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| Equity derivatives | 826 | 1 748 | 2 817 |
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| KEY FINANCIAL INDICATORS | | | |
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| | 31.3.2007 | 31.3.2006 | 31.12.2006 |
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| Return on equity, % | * 19,4 | * 29,4 | 24,5 |
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| Operating costs to earnings | 0,7 | 0,6 | 0,6 |
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| Profit per share, eur | * 0,39 | * 0,54 | 0,50 |
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| Profit per share, quarterly, eur | 0,10 | 0,14 | 0,18 |
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| Profit per share, eur (diluted) | 0,10 | 0,14 | 0,18 |
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| Profit per share trailing 12m, | 0,46 | 0,32 | 0,50 |
| eur | | | |
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| Equity per share, eur | 1,89 | 1,83 | 2,18 |
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| Equity ratio, % | 8,20 | 7,9 | 11,7 |
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* annualised
The principles of calculating financial indicators
Return on equity % (net operating profit/loss - taxes) x 100
------------------------------------------
total equity
(average of the figures for the beginning
and the end of the year)
Operating costs to earnings
administrative expenses + depreciation and
write-downs on tangible and intangible assets
+ other operating expenses
---------------------------------------------
net interest income + net commission income +
impairment of receivables + net income from financial
assets held for trading + net income from
available-for-sale financial assets + net income from
exchange dealing + other operating income
+ share of associated companies' results (net)
Profit per share, eur net operating profit - taxes + minority
interest
---------------------------------------------
average weighted number of shares corrected with
share issues
Profit per share, diluted, eur
net operating profit - taxes + minority
interest
--------------------------------------------
weighted average number of shares during the
financial period (diluted)
Equity per share, eur total equity
--------------------------------------------
adjusted average number of shares on balance
sheet date
Equity ratio, % total equity x 100
-------------------------------------------
balance sheet total
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