|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2024-04-30 07:00:00 CEST 2024-04-30 07:00:41 CEST REGULATED INFORMATION Aktia Bank Oyj - Interim report (Q1 and Q3)Aktia Bank Plc's Interim Report January-March 2024: Strong improvement of the comparable operating profit driven by a solid development of net interest income and good cost controlAktia Bank Plc Aktia Bank Plc’s Interim Report January–March 2024: Strong improvement of the comparable operating profit driven by a solid development of net interest income and good cost control January-March in short
Outlook 2024 (updated) Aktia's comparable operating profit for 2024 is expected to be somewhat higher or higher than the EUR 108.4 million reported for 2023. The outlook has been prepared based on the following expectations:
Previous outlook for 2024: Aktia's comparable operating profit for 2024 is expected to be somewhat higher than the EUR 108.4 million reported for 2023. Juha Hammarén, CEO: Aktia's result for the first quarter of 2024 was strong, with a very good comparable operating profit of EUR 33.9 million and an excellent comparable return on equity (ROE) of 16.7%. In other words, the positive development from last year in terms of results continued. Our strategic choice to stand on three strong legs, i.e. our three business areas, works well and our investments in customer experience can be seen in our daily work. I am especially satisfied that the cost-to-income ratio, one of the key indicators, improved clearly during the quarter. Our long-term goal is a cost-to-income ratio of a maximum of 0.60, and after the first quarter, it was 0.53. A significant contributing factor is our net interest income, which, in line with expectations, was on a good level and 23% higher than in the corresponding quarter last year. Compared with the first quarter of 2023, it should, however, be noted that the comparative figures are burdened by a significant provision for the stability contribution, which is not relevant this year. Business area development Banking business delivered a strong result again, and the continued high interest rate levels and higher average margins, mainly in the corporate business, supported the net interest income. In accordance with our strategy, we have focused on growth in leasing and hire purchase products, which has shifted the credit portfolio structure towards higher-margin products. Among private customers, the subdued sentiment in the housing market continued, and the housing loan book decreased as expected. To strengthen demand for housing loans, we initiated a cooperation with YIT, financing new, move-in ready homes. Although we note a slight increase in financial difficulties among private customers, the quality of our loan book remains good and credit loss provisions remain moderate. In the card business, we saw continued growth, and the sales of investment services to banking business customers was also a bright spot. Assets under management increased slightly in the quarter in market conditions that were mainly positive. The determined development work in asset management continued, led by Kati Eriksson, who took over as Director responsible for the business area in January. In accordance with our growth strategy, we aim to be the best wealth manager, which requires a long-term, methodical approach as well as process and product development. I am happy and confident about the work that is being done. It is also pleasing to see how the work with Private Banking has borne fruit, and that we yet again saw a quarter with positive net subscriptions in this segment. The life insurance business, for its part, continued to develop steadily and delivered a strong net income from life insurance during the first quarter, increasing slightly from the corresponding quarter last year. The work with the basic system renewal, started in 2023, progresses according to plan. Sustainability work at Aktia is well integrated in business operations, and our climate strategy is being implemented according to plan. We welcome the new EU Corporate Sustainability Reporting Directive (CSRD), as it standardises reporting from the full year 2024 onwards. The work to prepare ourselves for the new requirements began in 2023 and continues this year. Conscious efforts We maintained a strong cost consciousness during the first quarter of the year. We have made careful prioritisations and chosen what to focus on. This is reflected, for example, in our personnel costs as well as our other expenses, which were kept well under control. In contrast, IT expenses increased, as we made efforts and investments in system improvements, data and analytics, as well as customer experience. Customer experience remains at the core of our strategy, and during the first quarter, we implemented nearly 30 concrete actions in order to improve our service. All our employees participate in the common project, where the best ideas are recognised and rewarded. Overall, the employees' strategic significance has been highlighted and the employee experience has been chosen as a strategic priority. I look forward with confidence to the current year, which is off to a good start. We are well prepared to implement our strategy and create wealth for our customers and society. Key Figures
* The change is calculated in percentage points Webcast from the results event A live webcast from the results event will take place on 30 April 2024 at 10.30 a.m. (EEST). CEO Juha Hammarén and CFO Outi Henriksson will present the results. The event is held in English and can be seen live at https://aktia.videosync.fi/2024-q1-results. A recording of the webcast will be available at www.aktia.com after the event. AKTIA BANK PLC For more information: Distribution: Aktia is a Finnish asset manager, bank and life insurer that has been creating wealth and wellbeing from one generation to the next for 200 years. We serve our customers in digital channels everywhere and face-to-face in our offices in the Helsinki, Turku, Tampere, Vaasa and Oulu regions. Our award-winning asset management business sells investment funds internationally. We employ approximately 860 people around Finland. Aktia's assets under management (AuM) on 31 March 2024 amounted to EUR 14.1 billion, and the balance sheet total was EUR 12.1 billion. Aktia's shares are listed on Nasdaq Helsinki Ltd (AKTIA). aktia.com. Attachment |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|