Aktia Oyj - Interim report (Q1 and Q3)

AKTIA PLC INTERIM REPORT 1 JANUARY - 30 AUGUST 2011

AKTIA PLC INTERIM REPORT 3.8.2011 AT 8.00 AM EET

Helsinki, Finland, 2011-08-03 07:00 CEST (GLOBE NEWSWIRE) -- 


CEO JUSSI LAITINEN:"Net interest income (NII) weakened as expected, as the effects of interest
rate hedging activities gradually tailed off, adversely affecting operating
profit for the period. Net commission and life insurance income increased,
partly compensating for the weaker NII. Investments in IT have temporarily
pushed up operating expenses, but they are expected to increase earnings in the
longer term and support a more efficient way of working. In my view, we need to
reduce costs by 10% and this has to be done during the coming three years. The
turbulence in the European financial markets has continued, which had a
negative effect on the interim result. Aktia's liquidity and capital adequacy
provide a stable base for the business.""



JANUARY- JUNE 2011: OPERATING PROFIT EUR 30.9 (41.0) MILLION

  -- Group operating profit fell back to EUR 30.9 (41.0) million, and profit for
     the period to EUR 23.1 (30.0) million.
  -- Earnings per share stood at EUR 0.33 (0.43).
  -- Operating income was EUR 120.3 (127.2) million and operating expenses EUR
     83.5 (78.8) million.
  -- Balance sheet total amounted to EUR 10,746 (11,019) million.
  -- Capital adequacy ratio increased to 16.6 (15.9)% and Tier 1 capital ratio
     to 10.8 (10.1)%.
  -- Return on equity was 9.4 (12.4)%.
  -- Write-downs on credits and outstanding premiums stood at EUR 5.7 (8.4)     million.
  -- Aktia Bank plc's credit rating remained unchanged A1/C/P-1 (Moody's
     Investors Service).
  -- The full-year result for 2011 will be lower than in 2010 (amended, outlook
     in details on p. 14)



APRIL-JUNE 2011: OPERATING PROFIT  EUR 12.1 (23.5) MILLION

  -- Group operating profit amounted to EUR 12.1 (23.5) million, and profit for
     the period stood at EUR 8.9 (17.5) million.
  -- Earnings per share stood at EUR 0.13 (0.25).
  -- Operating income was EUR 57.7 (66.2) million and operating expenses EUR
     43.4 (40.0) million
  -- Return on equity was 7.6 (14.2)%
  -- Write-downs on credits and outstanding premiums decreased to EUR 2.1 (3.8)
     million.



Key figures for                                                                 
 the Group                                                                      
(EUR million)         1-6/    1-6/     ∆%    4-6/    4-6/     ∆%    1-3/   1-12/
                      2011    2010           2011    2010           2011    2010
Net interest          68.3    76.8  -11 %    33.6    38.2  -12 %    34.7   149.3
 income                                                                         
Total operating      120.3   127.2   -5 %    57.7    66.2  -13 %    62.6   249.4
 income                                                                         
Total operating      -83.5   -78.8    6 %   -43.4   -40.0    9 %   -40.1  -159.0
 expenses                                                                       
Operating profit      36.6    49.4  -26 %    14.2    27.4  -48 %    22.4    92.0
 before write                                                                   
 downs on credits                                                               
Write-downs on        -5.7    -8.4  -32 %    -2.1    -3.8  -45 %    -3.6   -14.1
 credits, other                                                                 
 commitments and                                   
 outstanding                                                                    
 premium                                                                        
 receivables                                                                    
Operating profit      30.9    41.0  -25 %    12.1    23.5  -49 %    18.8    77.9
Cost-to-income        0.68    0.55   24 %    0.74    0.54   37 %    0.63    0.59
 ratio                                                                          
Earnings per share    0.33    0.43  -24 %    0.13    0.25  -48 %    0.20    0.83
 (EPS), EUR                                                                     
Equity per share      6.43    6.89   -7 %    6.43    6.89   -7 %    6.14    6.81
 (NAV)1, EUR                                                                    
Return on equity       9.4    12.4  -24 %     7.6    14.2  -47 %    11.9    12.0
 (ROE), %                                                                       
Capital adequacy      16.6    16.5    1 %    16.6    16.5    1 %    16.0    15.9
 ratio1, %                                                                      
Tier 1 capital        10.8    10.1    6 %    10.8    10.1    6 %    10.3    10.1
 ratio1, %                                                                      
Write-downs on        0.08    0.13  -38 %    0.03    0.05  -40 %    0.05    0.20
 credits / total                                                                
 credit stock, %                                                                
1 At the end of                                                                 
 the period                                                                     




         AKTIA PLC:
         CEO Jussi Laitinen, tel +358 10 247 5000
         CFO, Deputy CEO Stefan Björkman, tel +358 10 247 6595
         Investor Relations Manager Anna Gabrán, tel +358 10 247 6501,
anna.gabran(at)aktia.fi

Attachments:

Aktia plc_2Q 2011.pdf